National Diploma in Business L 6

Unit standard- 9685

Title:

Submitted to: Matt Drew

Submitted by: Shallini Parihar

Id: 3740

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CONTENTS

Topic Page. No

1. Executive Summary…………………………………....3

2. Introduction ………………………................................3

3. Objectives………………………………………………4

4. History of Cadbury Limited.……………………….....4

5. Competitors…………………………………………….5

6. Cadbury’s Today and Cadbury’s Growth.…………..5

7. Cadbury’s Annual Report and Accounts…………….6

8. Marketing Strategy …………………………………...9

9. Cadbury’s Popular Brands…………………………...9

10.Conclusion……………………………………………..10

11.References……………………………………..............10

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Executive Summary

Cadbury Limited is a wholly owned subsidiary of Schweppes plc. It produces the finest quality

confectionery; chocolate, sweets, cakes, drinks, yoghurts, ice creams and promotional material

for all its products. Cadbury Limited was first located in the middle of England, Birmingham.

Then merged with Schweppes and formed new sites. It currently employs 4,000 employees, each

working in many different departments within the company.

Its mission statement is " Cadbury's means quality: this is our promise. Our reputation is

built upon quality: Our commitment to continuous improvement will ensure that our

promise is delivered'

Introduction

Cadbury is a leading global confectionary company with an outstanding portfolio of chocolate,

gum and candy brands. Cadbury stands in a high position in people’s mind. Since then Cadbury

have lengthened its business throughout the world by a programme of organic and acquisition led

growth. Cadbury employs about 50,000 people and have direct operations in over 60 countries,

where it’s selling Cadbury products in almost every country around the world. In 2006, the

company had over $15 billion in overall sales. In March2007, Cadbury announced that it intends

to separate its confectionery and beverage businesses. With almost 200 years in the business,

Cadbury have intended to continue its duty to flourish in the coming decades. Cadbury’s core

purpose is creating brands people love´ captures the spirit of what we are trying to achieve as a

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business. Cadbury collaborates and work as team to convert products into brands. Simply put,

Cadbury spread happiness.

Objectives

To grow the market for chocolate confectionery.

To increase Cadbury's share of the snacking sector.

Improving the product image-which includes creating a new logo or launching a new

brand of product and creating more attractive packaging.

Growth- which includes Cadbury selling new products or expanding overseas.

Diversification- which is the spreading of business risks by reducing dependence on one

product.

Sales maximisation- which is the increasing of sales.

History of Cadbury's Limited

In 1824 a young Quaker, John Cadbury, opened a shop at 93 Bull shop in a fashionable part of

Birmingham. This one-man business, trading mainly tea and coffee, was to be the foundation of

Cadbury limited- ’THE FIRST NAME IN CHOCOLATE', today one of the world's largest

producers of chocolate. For over 100 years Cadbury was essentially a family business and

although non-family directors were appointed for the first time in1943, the company retained

many features of a family business until 1962 to form Cadbury Schweppes plc. Cadbury Limited

is the confectionary division of this international company.

Cadbury: The Brand

The brand CADBURY enjoys a high level of brand equity. Researches show 90% of the people

recognizes the brand while 74% state that when it comes to chocolate only CADBURY will do.

Competitors

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Nestle

GlaxoSmith Con 6% Glaxo Smith Britannia

Kwality Dairy 9% Britannia

15% Nestle

70% Cadbury

Cadbury’s Today and Cadbury’s Growth

Always in the forefront of production developments, Cadbury has introduced the most advanced

processing technology and management information and control techniques to it chocolate

business. Three chocolate factories operate in the UK- the moulded factory producing chocolate

bars, the assortment factory producing chocolate plus Easter eggs and crème eggs, both situated

in the original Bournville site. The Somerdale factory near Bristol produces count line bars such

as double Decker, crunchie, while Flake, Time out, and Twirl are made on specialized plant at

the Cadbury plant at the Cadbury Eire Factory. All factories are open 24 hours a day producing

Cadbury products to the highest standards of quality control. In the assortments factory, there has

been a major revolution of the packaging system, where chocolates were previously individually

packed in boxes by hand, machines now handle them automatically. Cadbury has a 9.2% share of

the global confectionary market, driven by strong positions in several regional markets. The

global category leader - Mars - has only a marginally higher share of the market at 9.9%.

Cadbury has number one or number two market share positions in 23 of the top 50 confectionery

product markets, including gum, chocolate and sugar. In the US, Cadbury Schweppes' presence

is limited to sugar and gum, with a strong leadership.

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Emerging Markets: Emerging markets are nations with social or business activity in the process of rapid growth and industrialization.

Cadbury’s Annual Report and Accounts in India

Cadbury IndiaProfit & Loss account ------------------- in Rs. Cr. -------------------  Dec '05 Dec '06 Dec '07 Dec '08 Dec '09  12 mths 12 mths 12 mths 12 mths 12 mthsIncomeSales Turnover 1,006.02 1,149.97 1,441.92 1,751.24 2,045.08Excise Duty 126.24 91.73 148.45 162.65 110.71Net Sales 879.78 1,058.24 1,293.47 1,588.59 1,934.37Other Income 17.87 8.71 7.68 25.07 12.67Stock Adjustments 10.44 -2.54 17.29 51.32 -16.28Total Income 908.09 1,064.41 1,318.44 1,664.98 1,930.76ExpenditureRaw Materials 246.22 441.53 563.06 732.53 832.28Power & Fuel Cost 19.62 20.83 25.30 29.70 37.25Employee Cost 94.38 93.93 107.36 130.22 150.62Other Manufacturing Expenses

138.85 57.63 76.61 96.01 6.52

Selling and Admin Expenses 0.00 266.54 323.54 2.45 0.00Miscellaneous Expenses 292.11 35.88 43.13 430.46 624.19Preoperative Exp Capitalised 0.00 0.00 0.00 0.00 0.00Total Expenses 791.18 916.34 1,139.00 1,421.37 1,650.86

  Dec '05 Dec '06 Dec '07 Dec '08 Dec '09  12 mths 12 mths 12 mths 12 mths 12 mths

Operating Profit 99.04 139.36 171.76 218.54 267.23

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PBDIT 116.91 148.07 179.44 243.61 279.90Interest 1.70 2.22 2.03 5.20 1.72PBDT 115.21 145.85 177.41 238.41 278.18Depreciation 34.07 33.41 34.32 36.52 43.83Other Written Off 0.00 0.00 0.00 0.00 0.00Profit Before Tax 81.14 112.44 143.09 201.89 234.35Extra-ordinary items 0.00 0.00 19.23 0.00 0.00PBT (Post Extra-ord Items) 81.14 112.44 162.32 201.89 234.35Tax 35.19 43.62 44.67 36.11 45.73Reported Net Profit 45.95 68.81 117.65 165.78 188.63Total Value Addition 544.96 474.80 575.93 688.83 818.58Preference Dividend 0.00 0.00 0.00 0.00 0.00Equity Dividend 7.14 6.87 6.64 6.44 6.21Corporate Dividend Tax 1.00 0.96 1.13 1.09 1.06Per share data (annualised)Shares in issue (lakhs) 357.10 343.57 332.04 321.83 31.07Earning Per Share (Rs) 12.87 20.03 35.43 51.51 607.15Equity Dividend (%) 20.00 20.00 20.00 20.00 20.00Book Value (Rs) 121.48 114.12 122.32 144.30 1,708.53

There are some Charts that analyses this table

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Marketing Strategy

An understanding of customer needs helps a business determines how to price, promote, and

place a product into a market. Information gained from marketing research by a company may

indicate that the most likely buyer to a new product will be a female. Finding out about the

needs of each consumer segmented into the market should allow the company to decide how to

target the market and the best marketing mix for the consumers being targeted. This will then

help the business to decide how to promote and sell the product position in the latter. In the US

gum market, it has competition only in the form of Wrigley's. In 2004, the company was able to

further enhance its share of the US gum market by 0.4%.

Cadbury’s Popular Brands

Cadbury’s products are categorised into chocolates and lollies. Chocolates are divided into bars,

blocks and assortments. Lollies include The Natural Confectionary Co, and Pascall

Marshmallows. Australians and New Zealanders enjoy the products that Cadbury make in its

factories in both countries. Cadbury® Dairy Milk™ is its most popular product in New Zealand

and Australia but each country has its own

favourites such as:

AUSTRALIA

Cherry Ripe, Crunchie, Turkish Delight, Twirl, Flake, Picnic, Freddo Frog

NEW ZEALAND

Pineapple Lumps, Chocolate Fish, Moro, Cadbury Jaffas, Pinky

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Conclusion

According to my opinion, in this wide market organizations should follow some cultures where it

will keep the company in safe position. Cadbury becomes a leading confectionery company

although it is facing problems in its business. There is a lot of competition with strong companies

like Nestle. There are also strong new entrants. Cadbury has a 9.2% share of the global

confectionary market, driven by strong positions in several regional markets. The global category

leader - Mars - has only a marginally higher share of the market at 9.9%. Cadbury has number

one or number two market share positions in 23 of the top 50 confectionery product markets,

including gum, chocolate and sugar. To maintain its growth and position it must constantly

monitor both internal and external factors otherwise it may very quickly lose ground in a very

competitive market.

References

http://www.moneycontrol.com/financials/cadburyindia/balance-sheet/CI

http://www.cadbury.co.nz/about-cadbury/the-story-of-cadbury.aspx

http://www.123helpme.com/view.asp?id=122432

http://wiki.answers.com/Q/What_is_Cadbury%27s_mission_statement#ixzz1S2vftf6W

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