MARKETING MANAGEMENTMARKETING MANAGEMENT

S.Y.BMS.S.Y.BMS.

4 P’s of MARKETING4 P’s of MARKETING

PRESENTED BY

INTRODUCTION• CADBURY IS A LEADING GLOBAL CONFECTIONERY

COMPANY WITH AN OUTSTANDING PORTFOLIO OF CHOCOLATE, GUM AND CANDY BRANDS. IT EMPLOY AROUND 50,000 PEOPLE AND HAVE DIRECT OPERATIONS IN OVER 60 COUNTRIES, SELLING PRODUCTS IN ALMOST EVERY COUNTRY AROUND THE WORLD CADBURY.IT IS A BRITISH CONFECTIONERY AND BEVERAGE COMPANY WITH ITS HEADQUARTERS IN LONDON, UNITED KINGDOM

MARKETING OBJECTIVES

• GROW SHAREHOLDER VALUE…OVER THE LONG TERM

• CADBURY IN EVERY POCKET• MARKETING STRATEGY IS AIMED AT ACHIEVING

THIS VISION BY 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 MIXMARKETING MIXo THE TOOLS AVAILABLE TO A BUSINESS TO GAIN THE TOOLS AVAILABLE TO A BUSINESS TO GAIN

THE REACTION IT IS SEEKING FROM ITS TARGET THE REACTION IT IS SEEKING FROM ITS TARGET MARKET IN RELATION TO ITS MARKETING MARKET IN RELATION TO ITS MARKETING OBJECTIVES. IT IS THE GENERALLY ACCEPTED AS OBJECTIVES. IT IS THE GENERALLY ACCEPTED AS THE USE AND SPECIFICATION OF THE “FOUR P’s” THE USE AND SPECIFICATION OF THE “FOUR P’s” DESCRIBING THE STRATEGIC POSITION OF A DESCRIBING THE STRATEGIC POSITION OF A PRODUCT IN THE MARKETPLACEPRODUCT IN THE MARKETPLACE..

PRODUCTPRODUCT PRICEPRICE PLACEPLACE PROMOTIONPROMOTION

PRODUCT• PRODUCT VARIANTS • CURRENTLY CADBURY INDIA OPERATES IN FOUR CURRENTLY CADBURY INDIA OPERATES IN FOUR

CATEGORIES VIZ. CHOCOLATE CONFECTIONERY, CATEGORIES VIZ. CHOCOLATE CONFECTIONERY, MILK FOOD DRINKS, CANDY AND GUM CATEGORY.MILK FOOD DRINKS, CANDY AND GUM CATEGORY.

PRICE

• THE RS 5 PRICE POINT ACCOUNTS FOR MORE THAN HALF OF ALL CHOCOLATE SALES

• TODAY, CADBURY HAS FOUR PRODUCTS AT THIS PRICE POINT: CDM, PERK, 5 STAR AND GEMS — AND THE FIVE-RUPEE CDM BAR IS ITS SINGLE LARGEST-SELLING SKU.

• “THIS IS A POTENT PRICE POINT IN INDIA, BECAUSE THE AVERAGE PURCHASING POWER IS ABYSMALLY LOW,” IS WHAT INDUSTRY ANALYST HAVE TO SAY

PLACE

• PLANT LOCATIONS• IN INDIA, 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.THESE FACTORIES CHURN OUT CLOSE TO 8,000 TONNES OF CHOCOLATE ANNUALLY

DISTRIBUTION• CHOCOLATE NEEDS TO BE DISTRIBUTED DIRECTLY, UNLIKE OTHER FMCG

PRODUCTS LIKE SOAPS AND• DETERGENTS, WHICH CAN BE SOLD THROUGH A WHOLESALE NETWORK.

90% OF CHOCOLATE PRODUCTS ARE SOLD• DIRECTLY TO RETAILERS. • CADBURY'S DISTRIBUTION NETWORK USED TO ENCOMPASSES 2100

DISTRIBUTORS AND 450,000 RETAILERS • TO AVOID CANNIBALIZATION OF ITS HIGHER PRICED PRODUCTS FROM

LOWER PRICED ONES, CADBURY IS• SETTING UP TWO SEPARATE DISTRIBUTION CHANNELS – ONE FOR CORE

BUSINESS & OTHER FOR MASS MARKETS

NATURE OF RETAIL OUTLET• CHOCOLATES ARE PRIMARILY SOLD THROUGH

KIRANA STORES, GIFT STORES, MEDICAL STORES, CANTEENS,

• PAN-BIDI STORES, BAKERIES, SWEET SHOPS ETC. THIS IS TRUE FOR CHOCOLATES ALSO. THE SPACE ALLOCATED FOR

• THE CHOCOLATES WAS LESS WHEN COMPARED TO THE TOTAL AREA OF THE SHOP. OF THE SPACE ALLOCATED FOR

• CHOCOLATES, CADBURY BRANDS OCCUPIED MORE THAN NESTLE BRANDS.

PROMOTION• ADVERTISEMENTS• THE ADVERTISEMENT AIMED AT CONVEYING THE IDEA THAT NO SPECIFIC

OCCASION IS REQUIRED FOR CONSUMING CDM

• CELEBRITIES ENDORSEMENTS

• CADBURY ROPED IN PREITY ZINTA FOR ITS PERK BRAND. PREITY ZINTA’S ANGELIC DIMPLES LAID THE

• FOUNDATION FOR WHAT WOULD BECOME THE INDIAN TEENAGER’S FAVORITE SNACK. AFTER THIS CAMPAIGN,

• PERK’S SALE SURGED

• THE BIG ‘B’ FACTOR• THE BIG FACTOR THAT HAS PUSHED UP CDM SALES IS THE AMITABH BACHCHAN

CAMPAIGN. CADBURY APPOINTED AMITABH BACHCHAN AS ITS BRAND AMBASSADOR

CHOCOLATE ADS SHIFT FOCUS FROM KIDS TO YOUTH

• INDIAN CHOCOLATE MARKET IS ALMOST TOTALLY DEPENDED ON PURCHASES OF KIDS.

• WHILE CADBURY IS TRYING TO SELL INDULGENCE TO ADULTS, KIT KAT IS SELLING 'RITUALISTIC' BREAK TO

• TEENAGERS/ YOUNG ADULTS. THIS IS REFLECTED IN THE CHANGING ADVERTISING PATTERNS ACROSS DIFFERENT

• CHANNELS.

CONCLUSION 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. RIGHTPRICING WILL MAKE OR BREAK THE PRODUCT SUCCESS. ECONOMICAL DISTRIBUTION OF THE PRODUCTS WILLALSO 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 WELLAS IN THE PRODUCT OFFERING

BIBLIOGRAPHY

• WWW.CADBURY.CO.UK• WWW.CHOCOLATEREVIEW.CO.UK• WWW . CADBURYS CHWEPPES.COM• WWW.WIKIPEDIA.ORG• WWW.CADBURY.COM• WWW.OPPAPERS.COM REFERENCES-• PHILIP KOTLER