Project Title:

Success Story of CadburyGroup Members:

Fareeha Javed ( 110082)

Nazia Kanwal (110077)

Salma Aziz (110079)

Colour Me Purple (Literally)… It means celebrating life’s everyday pleasures with a bar of Cadbury

•The Cadbury script logo, based on the signature of William Cadbury, appeared first on the transport fleet in 1921

•It wasn’t until 1952 that it was used across major brands

1. Introduction2. Success Story of Cadbury3. Corporate objective of Cadbury Pakistan Limited4. Product line of Cadbury in Pakistan5. Market overview6. Market Size7. Market Trends 8. Market Shares9. SWOT Analysis10.PEST Analysis11.Customers Audit12.Perceptual Map13.Company Life Cycle14.Market Life Cycle15.Boston Consulting Group Matrix16.Conclusion 17.References

•Cadbury Limited is the confectionery division of Cadbury Schweppes. It is a confectionary and beverage brand that is sold around the world.

• Cadbury is the world’s fourth biggest supplier of chocolate and sugar confectionery.

•Cadbury Schweppes employs around 54,000 people. Regional and local brands manufacturing plants has worked in 60 countries and sales in a further 165.

Their operations are split into seven business units:

1.Britain and Ireland, 2.Middle East and Africa (MEA)3.North America, 4.South America, 5.Europe, 6.Asia, and 7.Pacific

The group’s strategy is to increase: 1.Profitability2.strength and 3.Volume

Chocolate confectionery is sold internationally under Cadbury name and includes power brands such as

1. Cadbury’s Dairy Milk2.Cadbury’s Time Out3. Picnic and 4.Roses.

Introduction (continue)

•Cadbury Pakistan is a part of the world’s largest confectionery

company.

•Cadbury has grown consistently since its inception in 1993.

• Company has tripled its size in the last two years.

•The company employees 151 people

•Currently has a manufacturing plant in Hub. 

•It enjoys strong presence in the confectionery business with

brands like

•Cadbury Dairy Milk,

•Chocki, Perk

•Éclairs and Soft mints.

According to Top Brands survey conducted by the FPCCI

Cadbury was declared the top confectionery brand in 2006.-

Success story of Cadbury

The Cadbury story is a fascinating study of industrial and social development, covering well over a century and a half.

It shows how a small family business developed into an international company combining the most sophisticated technology with the highest standards of •Quality•Technical skills and •Innovation.

1) Cadbury chocolate is born in 1824

Founder was John Cadbury in Bull Street Birmingham.

By 1831 the business had changed from a grocery shop to manufacturing of drinking chocolate and cocoa John Cadbury converts from tea and coffee to selling chocolate.

Mile Stones….

2) First Factory:

Mile Stones….

John Cadbury had a considerable flair for advertising and promotion.

An article “affording a most nutritious beverage for breakfast" announced his first advertisement in the Birmingham Gazette in March 1824.

In 1831, John Cadbury rented a small factory laying the foundation for Cadbury chocolate business .

3) With Milk:

By 1842, John Cadbury was selling sixteen lines of drinking chocolate and cocoa in cake and powder forms

Mile Stones….

4)The Quaker Influence:

• The Cadbury family were members of the Society of Quakers,

(nonconformist religious groups) formed in the 17th century. • Carried a campaigns aimed at ending poverty and deprivation • Part of social and industrial society in Victorian Britain. • By providing tea, coffee, cocoa and chocolate as an alternative to alcohol he felt he was helping to alleviate • some of the alcolohol-related causes of poverty and deprivation amongst working people. • He also incorporated some of these principles in his industrial relations philosophy.

Mile Stones….

5) Turning point in the mid-1850s,

•Taxes on imported cocoa beans were reduced by Government.

• previously prohibitive chocolate products were now within the reach of the wider population.

•Cadbury Brothers received their first Royal Warrant on February 4, 1854 as “manufacturers of cocoa and chocolate to Queen Victoria.”

• The company continues to hold royal warrants of appointment.

Mile Stones….

6) Sales and Marketing departments integration:

•During the 1850s business began to decline•Business was going to dissolve. But then company management worked with a strategy.

•Manufacturing department started working in collaboration with sales and marketing department, went on promoted their goods.

• Due to their dedication, sheer hard work and improvements in the quality of Cadbury cocoa products, the business survived and prospered.

Mile Stones….

7)Technological Advancements:•Cadbury brothers took a momentous step in 1866 thatrevolutionized whole of the British cocoa business.

•The brothers introduced new process to their Bridge Street factory to purify the coca extracts.

•Marketing campaign 'Absolutely pure...therefore Best‘ is launched

•1870s, Cadbury broke the monopoly which French producers in British Market.

Mile Stones….

Nazia

Kanwal

110077

Mission:Cadbury is committed to the long-term development of the chocolate industry in Pakistan through:

•Substantial foreign capital infusion,• Category management• Local infrastructure and •Talent development.

Vision:Cadbury’s vision statement is:

'Working together to create brands, people love'.•Meet the nutrition needs of consumers of all age groups

from infancy to old age

•Deliver shareholders value through profitable long term growth

Core purpose :

“Working better together to create brands people love.”

Objective : “Grow shareholder value…over the long term.”

Strategy : “Create robust and sustainable regional positions in our core categories of confectionery and beverages through organic growth, acquisition and disposal.”

Corporate Social Responsibility Objective:

Cadbury Schweppes is committed to growing responsibly.

Beliefs are:

1. Responsible business comes from listening and learning

2. Having in place a clear CSR vision and strategy.

3. Also comes from having the processes and systems to follow

through and an embedded commitment to living values.

The company strategy is to increase • Profitability• strength and • volume on a global basis in its two business streams:

beverages and confectionery through a combination of internal growth and ensure the continuing strength and earning potential of the group’s brand.

Strategy

Product line

• Confectionary: Caramello Koala, Freddo,Bournvita

• Cooking products: choc chips, cooking choc,flake garnish

• Boxed chocolates: favourite chocolates, milk tray chocolates, roses chocolates

• Chocolates : fruit n nuts, crackle, silk, bournville , temptations, roast almond.

• Gums : Stride, Trident, Chiclets, Dentyne, Bubblicious

Most Demanded Chocolates

The market major of Chocolates offers the following products in the market:-

1. Chocolates :- Cadbury dairy milk, perk, celebrations, temptations, five star, eclairs, gems, cadbury lite, fruit and nut and cadbury crackle,cadbury heros and many more

2. Snacks :- cadbury bytes3. Beverages :- Bournvita, cadbury delight 4. Candy :- cadbury halls5. Gums :- Bubbaloo

Market Overview

• Cadbury is market leader in the confectionary products. They have big market in all around the world.

• MARKET SIZE: It represent 9% of the global market.

• MARKET TRENDS: Brand Stretching, Inexpensive and Healthy Impact .

• MARKET SHARES: Cadbury's controlling more than 67% of the market share worldwide.

Salma A

ziz

110079

Experimental Marketing

• Cadbury believes in innovation. • Innovation is a virtue of marketing strategy. Its

marketing strategy is such that it builds a brand image not only through advertisements alone but through performance.

• The strategies are as follows:-1. Cadbury uses a variety of advertisements with

different genres and themes to attract different age groups. Eg – Animated ads, Melodious jingles etc.

2. Cadbury associates itself with emotions and sentiments of people through relationships of friendship and brotherhood.

3. In order to capture the market particularly the youth segment the strategy adopted is to promote SPORTS by encouraging events such as

• Karate (whiz kid championship)• In 1980 cadbury bournvita was the official health

drink for the Indian team at the Moscow Olympics

5. Cadbury has not only restricted its market to child segment but through its innovativeness has captured every segment of the society

6. Innovation in product range has been a major advancement by Cadbury in retaining its market share. Examples of marketing innovation by Cadbury –

*Perk’s new range of ulta perk*5 star’s new range of 5 star crunchy*Gems new range of fruity gems

7. Print & poster campaigns

8. Attractive packaging has been a successful way of attracting customers to buy its products over other chocolates

9. A huge art value is associated with Cadbury which in turn increases the acceptability in the market. it has roped in bollywood legend Amitabh Bachan and the ravishing Preity Zinta to endorse its products diary milk and perk respectively.

10.Extremely catchy and well recognized tag lines and punch lines create strong brand value and awareness for Cadbury.

The lines “Pappu pass ho gaya” , “Kuch metha ho jaye” gives a distinct image of Cadbury.

11.Cadbury caters to that segment of the society which cannot afford large sums of money. The marketing strategies adopted here would be introduction of economy packs of all its products and advertising the same.

12.The most important marketing policy being, implemented during the festive season. The consumptions of sweets is at its zenith during the festive season. Cadbury makes most out of this season by introducing gift boxes thus spreading joy.

Marketing vision 2008-11

Cadbury believes that its business still has significant untapped potential- in terms of growth as well as returns.

Between 2008- 2011 cadbury intends to –

*rope in new brand ambassador during the festive season.*introducing a new season of quiz contest.*introducing new seasonal flavours such as hazelnut, fudge, butterscotch etc.

• As a result of the campaign penetration of chocolates increased faster in the last four years than it did in the decade before that! Frequency of consumption among adults grew by 16%.

• ‘Celebrating a happy moment’ emerged as a need state in four years and preference of Cadbury Dairy Milk for celebratory moments increased on an average by 34% across town classes.

SWOT ANALYSIS

Weaknesses 1. Geographic constraints owing to the multiple

franchisee ownership of core brands such as Schweppes

2. Large portion of population suffers from 3. diabetes, cholesterol disorders etc4. Dental problems associated with 5. consumption of chocolates.6. Weaker financial position following the demerger,

Dr pepper Snapple group.7. Limited product portfolio.

Strengths

• Wide product range• Good prices• International business• Advertising• Good availability

•Large teeming population okids and

teenagers•Well established market

Threats

• Unable to understand foreign customer preference.

• Social changes, rising obesity and consumers obsession with calories counting.

• Threat of entry due to the competition growing through acquisition.

• Rising of raw material cost.

Opportunities in countries like Pakistan

Innovative uncaptured chocolate market in Pakistan ( such as sugar free chocolate sector).

• Increasing acceptance of Globalisation and better relationship with foreign companies.

• Enter in the new potential markets.

PEST ANALYSIS

• Political • Economical• Social • Technological

• In terms of political issues, France being an advanced democratic country, specific risk is negligible.

• In terms of economic issues, it has fourth largest GDP in the world.

• In term of social issues, Large number of occasion celebrations and festivals in which chocs are used as a medium to convey happiness.

• In term of technological issues, Communication has improved as well as marketing the product through word of mouth has now changed to advertising in magazines, newspapers, bill boards, television and even the internet.

Customer oriented

• Cadbury operate in different markets and cultures around the world and have many different consumers.

• People love the taste, the quality and the value of Cadbury’s products

• As a result of the campaign penetration of chocolates increased faster in the last four years than it did in the decade before that! Frequency of consumption among adults grew by 16%.

• ‘Celebrating a happy moment’ emerged as a need state in four years and preference of Cadbury Dairy Milk for celebratory moments increased on an average by 34% across town classes.

Company Life Cycle

Achievements:

• In 2005, Cadbury Pakistan received the Global Award for highest Net Sales Value in emerging markets.

• 2006 proved to be a yet another landmark year for Cadbury Pakistan. Now the Cadbury Company has significantly matured in Pakistani market, as most of its products have stable sales.

Perceptual Map:

Low price

High quality

High price

Low quality

• People want high quality product in low price.

• Perceptual map shows that what people perceive

about Cadbury’s products.

Perceptual Map: (continue -------)

BCG MatrixB

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Relative market share

• In the confectionery market, Cadbury’s global market share has grown through acquisition and organic growth.

• Cadbury focus on generating cash flow and making efficient use of capital is also allowing it to make investments in new businesses and assets.

Positions in emerging markets

Competition

Global Confectionery Market Category Share

•  

Market share in the global confectionery market

Conclusion• To reach the peak of achievement, the

company would have to stress on the growth of the product.

• Cadbury should also look into other countries like Asia Pacific in order to market its products globally.

• Another strategic plan would be a joint venture.

• Needless to say that in order to market products globally, heavy capital and expenditure have to be sacrificed.

LAST BUT NOT THE LEAST Cadbury needs to strengthen the brand

name of its products in order to survive in competitive world!

Thank you