I. Executive Summary

Cadbury Dairy Milk is a brand of chocolate bar made by the Cadbury plc unit of Kraft Foods and sold in several countries around the world. It first went on sale in the United Kingdom in 1905.

The Cadbury dairy milk silk is launched by the Kraft foods Inc which is the largest confectionery, food, and Beverage Corporation headquartered in the US. The Kraft foods Inc take over Cadbury in 2010 which is the British confectionery company, the industry's second-largest globally. This product is launched globally.

This presentation includes situation and category analysis of the chocolate industry and the major companies at the forefront.

Chocolate Market in U.S’ sales is increasing every year. In 2007, total chocolate sales equaled 141.2, and in year after sales increased to 158.5 billion dollars. This substantial gain is expected to repeat, and by year 2013, total sales are going to reach above 180 billion dollars. Without a doubt, the chocolate industry can be expected to be successful for years to come, therefore, Cadbury’s dairy milk is in a very attractive industry with a strong market potential.

Product/Brand Strategy and Supporting Marketing Programs for dairy milk will be explained in detail. These include new product formulation, improved packaging design and extensive sales promotion.

II. Situation Analysis

Category/ Competitor Definition

The chocolate industry is as popular as any in the world with the amount of people that enjoy the delicious taste. There are many companies involved in the industry but none are more powerful than the four which are known as the "Big Chocolate". Mars, Nestle, Cadbury, and Hershey are the major companies at the forefront of the chocolate industry.

One of the big four is Mars Incorporated which does not just dedicate their business to chocolate. They devote their expertise over snack foods, pet care, main meal food, drinks, electronics, and information technology. It is amazing they can compete at the highest level in all of these categories. Thanks to the five principles that shape the company they are able to sustain excellence in the different areas while not losing an edge to their competitors. The five principles are quality, responsibility, mutuality, efficiency, and freedom. By following these principles, Mars Inc. is able to compete in the chocolate industry without being solely devoted to the brand.

The Nestle Company has been around since Henri Nestle (a Swiss pharmacist) developed baby food for infants in the 1860s that were unable to breastfeed. Its headquarters are in Vevey, Switzerland and is the world's biggest food and beverage company. Nestle expanded their products in the 1920s to chocolate and quickly saw immediate rewards with large profits. World War II damaged the company's profits as it dropped from $20 million in 1938 to $6 million in 1939. Although, the war allowed the company to introduce a popular beverage into the market as the armies began obsessing over the Nescafe product. Since then, Nestle has made major acquisitions to expand their company as the trade barriers crumbled and world markets developed into more or less integrated areas. The most important acquisition occurred in 1996 obtaining Carnation (an American food giant). Nestle also follows a series of principles promoting fairness, honesty, and a general concern for people. They are very concerned about keeping the shareholders happy and delivering a high value product.

The Hershey Company is the most well known in the United States with their headquarters in Hershey, Pennsylvania. It is a leading snack food company and the largest North American manufacturer of quality chocolate and non-chocolate confectionery products, with revenues of over $4 billion and more than 13,000 employees worldwide. Milton S. Hershey started the company in 1893 and became the first American company capable of processing milk chocolate. The Hershey Company is committed to diversity in everything they do ranging from ideas to the workforce. They are not satisfied with being single minded and only good at one thing. Diversity is the key to the Hershey Company.

Category Analysis

Factors Analysis

AssessmentMarket

Attractiveness(+/-)

Aggregate MarketCategory size With over $150 billion of retail sales

globally in 2008, confectionery is a large market. It is in fact the fourth largest segment in packaged foods – a global market worth an estimated $1,800 billion.

+

Category growth The chocolate market has grown steadily over the past five years at a rate of 5% (compound annual growth rate). Growth in developed markets, which represent around 60% of the total by value, has been at around 3% p.a. whereas growth in emerging markets, the remaining 40%, has been strong at around 10% p.a.

+

Product Life Cycle The chocolate market is in its Maturity Stage with continuous revenue growthand consumption levels have been largely static in recent years.

But despite its maturity, overall retail sales of confectionery are forecast to grow by 21% in value at current prices between 1999 and 2004. Sugar confectionery is expected to grow twice as fast as chocolate, albeit from a smaller base.

+

Seasonality Trade research shows that almost 40% of chocolate sales takes place in the first quarter of the year, which itself can be divided into Easter and Spring occasions such as Valentine's and Mother's Days.

Overall, the emphasis of sales and marketing is year-round, with an increased focus during the holiday seasons

+

Profits Between 2006 and 2010, the global confectionery market is forecast to increase by over 16% in value terms, reaching more than USD145bn. Volume sales are expected to amount to over 17.8 million tonnes by 2010

+

CategoryThreat of new entrants/exits

Chocolate is mainly a regional business where consumers seek a particular taste in each market. This brings about fragmentation in the market as well as complexities in production.

The chocolate industry has no barrier to entry and this make this industry open to competition and make it attractive

+

Economies of scale The chocolate and cocoa industry does have a significant economy of scale entry barrier because large companies exist in the industry that has high production output, which reduces the cost to produce chocolate and cocoa. +

If a new competitor wanted to enter the market, the company would have to enter the market producing a large quantity at the same low price as competitors or the company would have to compete with a cost disadvantage.

Because economies of scale exist in the industry, it deters smaller competitors from entering into the market and reduces the threat of entrants.

Product differentiation Product differentiation is another entry barrier in the chocolate and cocoa industry. There are many competitors in the industry that have remarkably identifiable brand names and customer loyalty

All of the companies have established brand names and customer loyalty, which creates a considerable entry barrier for new companies. Thus, the new company must increase spending to overcome the reputation and large customer base of the existing companies.

But since Cadbury Dairy Milk is extremely differentiated, the buyer has low power to play competitors against each other and reduce the cost.

+

Capital requirements Large capital requirements create an entry barrier for new entrants because it requires the company to have a significant source of capital to get started. The large capital investment entails costs for items such as production equipment, labor, raw materials, and research and development. In addition to these costs, a new company would need to spend a large amount of money on advertising and marketing to overcome product differentiation

+

Switching costs Switching cost create a barrier to entry for new companies entering the chocolate and

cocoa industry. Switching the supplier of chocolate’s raw materials such as cocoa beans, sugar, and milk create additional testing and research that must be completed by the company to ensure correct quality, safety and taste.

+

Distribution Chocolate products are sold through a wide range of outlets which vary from market to market. The share of the impulse channel – outlets where product is bought on impulse from display rather than as part of planned shopping – is roughly 40% in developed markets and is greater in some emerging markets.

+

Bargaining power of buyers

The bargaining power of buyers is increased by two factors: a number of large volume buyers and the buyers’ relatively low profits from the product. However, the bargaining power of buyers is low to moderate because of the industry’s differentiated products, the presence of switching costs, the lack of threat of backward integration and the reliance on the industry’s product.

+

Bargaining power of suppliers

the bargaining power is low due to large no of supplier +

Pressure from substitutes Confectionary products are bought either as snacks or as luxury/gift items. Therefore, substitutes include savory snacks, fresh fruit, alcoholic beverages and other non-food items.

For retailers, it is usually easier to store confectionaries rather than most of their substitutes, for example, potato chips or fresh fruit.

So, although there are a large variety of items that can serve as substitutes for Cadbury's products, most of them are less practical for retailers to store. Overall, the threat from substitutes is moderate.

-

Category capacity As the business is characterized by automated, high-volume manufacturing, fixed costs are high and capacity changes easy to implement; these act as sparks driving up rivalry.

-

Current category rivalry There are a large number of companies which participate in the markets on only a regional or local basis. Cadbury competes against multinational, regional and national companies.

-EnvironmentalTechnological Innovation such as web marketing is a

major driver of growth in developed markets where premium and ‘better-for-you’ products are prevailing themes.

+

Economic High population growth rates and rising levels of prosperity, has increased demand for affordable luxuries and treats.

Interest and inflation rates will affect production, world economic growth and current recession will also affect it.

+

Political/regulatory Confectionery manufacturers must be licensed by the program if they want to purchase sugar at world market prices for use in products that will be exported.

Also, confectionery manufacturers who make products containing a “functional” active ingredient, and claim that the product provides a benefit, such as the promotion of dental health, are subject to Food and Drug Administration Guidelines on labeling

+

Social ‘Wellness’ is a focus for management as increased consumer attention on diet, health and fitness is expected to drive above average growth for ‘wellness’ products.

-

Company and Competitor Analysis

Product Features Matrix

Product Feature Mars Nestle Hershey CadburyCustomization Customized. Due

to different product offerings for different age group.

Customized

Customized Cadbury dairy milk does have a customized product because they have a good brand element due to which they are able to sale the product easily in the market. They have produced wowie for childrens,celebrations 4 gifts,and also variety in cashew nuts, egg, eggless etc.

Performance 2nd 3rd least highestDurability Very good Very good Very good Very good- The product isable to

survive under the stressful or natural conditions. But it should be taken care of refrigeration as milk will get spoiled if resists for long time in hot atmosphere

Reliability reliable reliable reliable Cadbury has reliable products. They were sure about the absence of malfunction or fail of their product within a specified time

Style different styles of packing and taste

different styles of packing and taste

different styles of packing and taste

different styles of packing and taste

Objectives

Mars Nestle Hershey CadburyTo offer the best value to our consumers means we have a constant drive to continuously improve the design and operation of our

To be the world's largest and best branded food manufacturer, whilst ensuring that the Nestlé name is synonymous with

To redefine the future of snacking by offering consumers products that provide proven health benefits and the superior taste they expect from Hershey.

To grow the market for chocolate confectionery

To increase Cadbury's share of the snacking sector

quality processes and seek regular independent assessment to ensure our approach is at the leading edge of industry practice.

products of the highest quality.

Strategies

Mars Nestle Hershey CadburyMaintaining a close watch on its markets all over the world.

Before they launch a new product they talk to their consumers first and find out what they think about both the product itself and the name they are proposing to give it.

Integrated cost leadership/differentiation

- Wide range of products (over 20categories: coffee, milk, mineral water, petfoods, cereals«)- Low cost operators

The Hershey Company established itself as a cultural icon for brand innovation.Over the past century, Hershey’s has designed and produced an ambiance that exudes quality and value for its customers. This ambiance is part of a strategy that has propelled Hershey’s as an industry leader and has successfully ingrained the Hershey brand in the public’s collective consciousness as America’s premier choice chocolate bar.

Growing the market by appropriate pricing strategy that will create a mass market and to have offerings in every category to widen the market

Marketing Mix

Marketing Mix Mars Nestle Hershey Cadbury

Product Mars is the world's leading confectionery company, following our acquisition of the Wm. Wrigley Jr. Company in 2008, with five, billion-dollar confectionery brands: M&M'S®, SNICKERS®, DOVE®, MARS®, EXTRA® and ORBIT®.

Nestle combine company name with product name while choosing the brand name for Nestle East Whip. That is, why the complete name for Nestle Easy Whip is “Nestle Easy Whip”. They use company name with product name because Nestle has a very good image in the minds of consumers.

The company makes such well-known chocolate and candy brands as Hershey's Kisses, Reese's peanut butter cups, Swizzles licorice, Mounds, York Peppermint Patty, and Kit Kat (licensed from Nestlé). Hershey also makes grocery goods such as baking chocolate, ice-cream toppings, chocolate syrup, cocoa mix, cookies, snack nuts, hard candies, and lollipops. Its products are sold throughout North America and exported overseas.

Chocolate BarMade from real dark chocolateSimilar design worldwideContains more milk than any other chocolate bar

Place Retail Outlets and Wholesalers

They adopted distributive channel and so it was available only on stores and super markets.

Hershey distributes its products through a variety of distribution networks.

Retail outlets like: large grocery chains, large drugstore chains convenience ores, wholesalers, small retail outlets, and brokers

CDM are sold directly to whole sellers and retailersDistribution Network encompasses 2100 Distributions and 450,000 retailers.

Price affordable Nestle charge a single price of RS.

In general, chocolate

brands are a affordable and

Nestle did relatively low pricing as compare to foreign brands available in the local market. Nestle focused on A – class and did low pricing, because Nestle want to attract the existing customers of imported brand and potential customers with the help of their low pricing.

customers who have more substitutes available to them, or who do not have as great a need for the product, will be more sensitive (i.e., elastic) to price making Hershey’s strategy a one-price policy.

high-quality indulgence

Promotion In spite of its market share setbacks, Mars, Incorporated was still a serious marketing force around the world. At the beginning of the millennium, the company had facilities in more than 60 countries and sold products in more than 150. It was spending $850 million a year advertising brands such as M & M's candies, Snickers candy bars, Uncle Ben's rice, and Pedigree dog food.

The sales strategy which Nestle adopted is Availability & Visibility. To increase sales and gain profit the company has to provide proper supply of product in the market.

Use of extensive promotional tools

The company has concentrated on producing a wide variety of chocolates to suit the customers' taste. Hershey's strategy encompasses extension of its product line that provides the company a distinct advantage over its competitors like Mars and Nestle. In addition, Hershey's focus on acquisitions of well-known brands, discontinuing weak product lines, apart from appropriate marketing of its products

The media mix for the campaign comprises TV, outdoor, Internet and radio.Use of emotional appeals in advertising.

Differential Competitor Analysis Matrix

**Basis for Analysis is the position of Companies in Emerging Market

CapabilitiesMars Nestle Hershey Cadbury

Ability to Conceive and Design

8 8 8 9

Ability to Produce 9 8 7 10Ability to Market 9 8 7 10Ability to Finance 9 8 7 10Ability to Manage 9 9 9 9

Total Rating 8.8 8.2 7.6 9.6

Prediction of Competitors’ Future StrategiesMars Nestle Hershey Cadbury

Providing new flavors and sizes,

Going globally active and environment friendly,

Targeting people who are health conscious.

Getting more advertisement.

Cut investment budgets, overheads, frill

Maximizing existing assets, capacity, distribution

Target internal growth rate

Improve supply chain, productivity,optimize planning

Double ad spending

Investing in consumer marketing, greater retail coverage, and broadening its range of premium brands.

Minimizing adding variance

Maximizing the customer relationship

Getting into more customer loyalty

Customer Analysis

Mars Nestle Hershey CadburyWho are the customers?

Teens. Because of its real sweetness teens really do love this chocolate.

Young & Urban Classes A, B, and C

Customers of Cadbury have changed from kids to adults since chocolate is a confectionery dessert enjoyed by everyone.

What do they For snacks and for Chocolates are A lot of their Purchase as a gift.

buy and how do they use it?

dessert what they love. As a snacks. Sometimes can be gift.

chocolate products are in demand actually.This can be used as snacks, or and enjoyment

As a snack & as dessert.

Where do they buy?

At the malls, wherein there are a lot of variance to choose, they may be found in an eye leveled shelves to a great extent so that customers won’t miss it.

Preferably at the leading supermarket, where a lot of people can choose from a lot of their variance available.Some people around selling small amount of our chocolates,

Retail outlets like grocery chains such large drugstore chains convenience stores, wholesalers, small retail outlets, and brokers who sell products to grocery stores.

Leading supermarkets and ‘big chain’ stores and aimed at as many promotions as possible using big boxes of chocolates stored near the checkout areas to attract impulsepurchasing. Secondly, they have also used the concept of eye level shelves to a great extent so that the consumers don’t miss it.

When do they buy?

Impulse ImpulseSeason

When grocery shopping

impulseseason

How do they choose?

Fallowed quality, tradition of favorites.

Influenced by peers, a word-of-mouth.

The choice of high chocolate content/standard quality level

influenced by flavor/taste followed by quality, brand and image

Why they prefer a product

Quality and the image of this product.

The taste, the quality, and the price of the product.

The availability of the product, in good stores.

It is the home of hugely popular brands.

How they respond to marketing programs

Feedback Actively participating in any event that would help them to gain more knowledge for the products

Accurately and straight to the point feedbacks

Brand Loyalty

Will they buy it Whenever the Any time, because If the parents are Because of its

again? product is available.

it is cheaper than others. Always available.

off to supermarket and stores

availability. They can actually purchase our product any time they want.

Long-term value of customers

Giving them souvenirs, promos

Call to action movement. Giving hotlines

Being visible through internet website.

Offering the customers their hotline number for any comments, suggestions, etc,

Segmentation Sweet lovers Young professionals, teens,

Middle aged, teens

Teens, loves sweet

Planning Assumptions

Market Potential

Chocolate Market in U.S’ sales is increasing every year. In 2007, total chocolate sales equaled 141.2, and in year after sales increased to 158.5 billion dollars. This substantial gain is expected to repeat, and by year 2013, total sales are going to reach above 180 billion dollars. Without a doubt, the chocolate industry can be expected to be successful for years to come.

Category and product sales forecast

U.S. Market for Chocolate

With 2006 sales estimated at close to $16 billion through all channels, chocolate is forecast to grow to $18 billion by 2011, according to the U.S. Market for Chocolate, a fully updated Packaged Facts report. Strong consumer interest in the reported health benefits of dark chocolate and a general trend towards product premiumization (including organic and fair trade products) are offsetting steady declines in other categories, such as sugar-free and novelty products. For example, the market share for premium chocolate grew from 13% of the total market in 2002 to nearly 17% in 2006.

Cadbury beat sales forecasts and raised targets in a bumper third-quarter trading report, pushing up its shares and pressuring suitor Kraft to come up with a bigger bid to win its takeover battle.

Sales forecast approach used:

Top-down approach

Uses Quantitative Technique of Forecasting 3-year Moving Average Method is implemented

Year divided into 12 periods Seasonality also taken into account Major Emphasis on last year’s data Statistical Tools being used SAP integration Promotional Offers according to Sales Forecast

Other assumptionsIt is assumed that Wholesale chocolates and retail store sales should stay strong despite increasing new players in the market.

III. OBJECTIVES

Corporate objectives: Ensure profitable growth in the market. Grow shareholder value over the long term.

Marketing objectives: Increase market share of Cadbury using marketing strategies offering the market an

assortment of innovative confectionery products. Increase sales profit of Cadbury. Sustain market share over the year through product innovations in product

development, packaging.

Program – marketing mix

Product – generate new flavors and improvements to existing Cadbury products. Place – place may vary depending on the Cadbury product sold. Cadbury products

would be place on vending machines, retail stores (sari-sari) and in convenient stores located near the counter to encourage impulse buying of the product.

Distributions – Cadbury products will be sold directly to wholesalers and retailers & Promotions - tie – ups with non-traditional sellers, sales promotion use of coupons.

Contest, sponsorship of events to increase&/maintain product awareness. Use of emotional appeal in advertising

Price – price cut off, or no increase in prices but products’ weight would be reduced.

IV. Product/Brand Strategies

Customer targets – The prospective customers of Cadbury dairy milk ranges from 5-60y/o. Since Cadbury has a line of products suited for every member of the family. We will strengthen relationship of brand n current consumer’s life.

Competitor targets - Cadbury's target competitors are Hershey, Nestle and Ferrero. What we will do is to sell Cadbury at affordable prices and put it on a convenient position, develop a range of new products for every need. (Occasional gift, snacks, after dinner dessert)

Product features - In order to attain the objectives of Cadbury we have come up of different strategies and their main focus is on product development, innovation, focus on existing products and packaging.

C. I. Market penetration Use market penetration as a strategy to achieve growth through the use of existing products of Cadbury in the current market. Come up with promotions that would enhance customer loyalty and product awareness.

C. II. Product development and diversification Generate new flavors of Cadbury such as coffee, peppermint, white chocolate and a non fat Cadbury since most prospective consumers today are very significant with diet. A non-fat Cadbury with the same pleasurable taste but has less fat and calories. Other variations include Cadbury with a popping candy filling, energy bars, cereals (choco flakes) Cadbury lollipops, Ice creams, Chocolate syrups, candies and baked goods.

C. III. PackagingImprove packaging design by adding graphics or caricatures to the original label & making a re-sealable pack and reducing the cost of packaging by using cheaper resources and materials that are safe for the environment. Package should protect the product from deteriorating, efficient and more importantly it should attract the customers.

Core strategy

Value propositionCadbury perceived as a brand that is meant for everybody disregarding age/class. Affordable and has contemporary taste, with various selections to choose from.

Product positioningCadbury positioned as an all time favorite chocolate. An irresistible snack, after dinner dessert anything that can be shared and offered to loved ones.

V. Supporting Marketing Programs

A. Integrated marketing communications plan

To promote the new look of Dairy Milk

Campaign Theme: The look of happiness

To objective of this campaign is to promote the new look of dairy milk, Cadbury should implement comprehensive campaign. This involved a highly coordinated set of promotional activities across various communications channel each activity bearing the same message which is “the look of happiness”. This approach ensures that consumers receive a clear and consistent message about Cadbury.

The look of happiness campaign includes advertisements showing the new packaging of Cadbury, free samples and contests.

The product would be differentiated as the chocolate with a happy packaging

The result expected is sales to exceed by 10%

Sample Packaging Design

B. Advertising

Creative Execution

For television advertisementsOne advertisement to target men, one for women, one for the upper tier of the target market, and one for the lower tier with humor and emotional appeal.

For print advertisements Same target market customization concept as above Placement in designated magazines and newspapers Out of home is included (billboards and transit locations)

C. Promotion

Objectives

To create brand loyalty To encourage repeat and multiple purchases To promote sales and increase market share

Strategies

To position Dairy Milk as an increasingly visible brand within the market To gain trust and familiarity from the target market through contests and free

samples

D. Sales

In order to maintain the sales of Cadbury, sales promotion should be implemented to generate growthSales Promotion Execution

Tactics

Broadcast – Television, Radio Print – Newspapers Packaging- add graphics In Store – Posters, Flyers, Stall

F. Price

Price cut off, or no increase in prices but products’ weight would be reduced.

G.Channels

Cadbury already uses the following distribution channels:

Point of sale display (racks and stands) Retail outlets : supermarkets and convenience stores

We recommend the use of small vending machines exclusively for Cadbury products that will be placed in different public areas such as: school canteens, airports, hospital, malls, etc.

Vending machine In-store stalls

H. Customer management activities

Consumers are having a difficulty to capture and classify that’s why the strong relationship to the consumer is very important. Cadbury also use sites like Facebook, Twitter, Multiply and Friendster to get closer with their customers and collect feedback.

We only recommend Cadbury to play more gimmicks with their existing online fan pages.

H. Website

Cadbury has available website for consumer's here in the Philippines consumers can freely navigate in their website and get information about the products. http://www.kraftfoodscompany.comhttp://www.cadbury.com.ph

The existing flash websites of Cadbury are already functional (because of its own search engines and extensive information available) and is tremendously attractive (because of the heavy use of graphics and animations), therefore, no more improvements needed.

I. Marketing research

Market research determined the knowledge, attitude and opinions of consumers in our country.

We recommend Cadbury to continue investing in consumer research that helps build knowledge around health concerns, including obesity. And to help improve understanding of concerns, research within both inside and outside the business will be applied.

J. Partnerships/joint ventures

By March 2001 - Cadbury Confectionery Phils. Partnered with Mc Kenzie Distribution, thereby providing Cadbury with much wider distribution cove in the Philippines.

May 2003 – Adams Philippines, a well known Candy Manufacturing Company merged with Cadbury.

Recommendations are to continue merging with other manufacturing companies to further expand the product reach.

Financial Documents

ADVERTISEMENT:

Television30 seconds airing duringnoontime shows(6months) 8,635,500

30 seconds airing during primetime shows (6 months) 15,329,000

BillboardsSLEX Southbound (4 months) 346,000 EDSA Northbound (3 months) 520,000

Tarpaulin100 stores in metro manila(2x3 sq ft--x Php 25 x 100) 14000

Magazines Full page, FC

Candy 400,000Cosmopolitan 500,000Seventeen 430,000

Total: 26,174,500

SALES PROMOTION 1,850,000

EVENTS AND SPONSORSHIPS 1,450,000

TOTAL ADVERTISING EXPENSES 29,474,500

FORECASTED BUDGET

Promotional Expense 29,474,500

Advertising 26,174,500Sales Promotions 1,850,000Events and Sponsorship 1,450,000 Agency Fee and Development Costs 8,787,600

TOTAL EXPENDITURES 38,262,100

B. Pro Forma Statements

In Millions of GBP (except for per share items) 52 weeks ending 2009-12-31Revenue 5,975.00

Other Revenue, Total -Total Revenue 5,975.00

Cost of Revenue, Total 3,210.00Gross Profit 2,765.00

Selling/General/Admin. Expenses, Total 2,001.00Research & Development -

Depreciation/Amortization 4.00Interest Expense(Income) - Net Operating -

Unusual Expense (Income) 256.00Other Operating Expenses, Total -

Total Operating Expense 5,468.00Operating Income 507.00

Interest Income(Expense), Net Non-Operating -Gain (Loss) on Sale of Assets -

Other, Net -21.00Income Before Tax 378.00Income After Tax 275.00Minority Interest -1.00Equity In Affiliates -

Net Income Before Extra. Items 274.00Accounting Change -

Discontinued Operations -Extraordinary Item -

Net Income 509.00Preferred Dividends -

Income Available to Common Excl. Extra Items 274.00Income Available to Common Incl. Extra Items 509.00

Basic Weighted Average Shares -Basic EPS Excluding Extraordinary Items -Basic EPS Including Extraordinary Items -

Dilution Adjustment -Diluted Weighted Average Shares 1,364.00

Diluted EPS Excluding Extraordinary Items 0.20Diluted EPS Including Extraordinary Items -

Dividends per Share - Common Stock Primary Issue 0.16Gross Dividends - Common Stock -

Net Income after Stock Based Comp. Expense -Basic EPS after Stock Based Comp. Expense -

Diluted EPS after Stock Based Comp. Expense -Depreciation, Supplemental -

Total Special Items -Normalized Income Before Taxes -

Effect of Special Items on Income Taxes -Income Taxes Ex. Impact of Special Items -

Normalized Income After Taxes -Normalized Income Avail to Common -

Basic Normalized EPS -Diluted Normalized EPS 0.34

MONITORS AND CONTROLS

Marketing Metrics

External- to measure the customer satisfaction and the response rates, customers loyalty, and the quantity of the products being purchase and the time basis of one’s customer in buying the product. Some may be form in survey.

Internal-quantification of the market share and market penetration.

Secondary data:

Internal

Sales record Stock record Accounting record Distribution date Sales person‘s opinion

External

Government statistics Specialist business organizations

Customer database

Primary data

Face to face Observation Experiment Research

Contingency Plan

If we receive negative feedback from our new developed product, we could make it more affordable or improve flavor.

If new developed products will not be successful globally, we will first focus on positioning one country at a time.

If we receive negative feedback from our market with extensive health concerns, we will make a strategy that will promote wellness.