Cadbury

10 October 2016

We studied the strategies employed by Cadbury India Limited that makes it the market leader and suggested few recommendations of our own. The term paper is truly based or intended to bring forth the necessary aspects regarding the different areas of the product. The thorough study of the different aspects of the product is done here. Information from books and internet sources have been chosen so as to make on the term paper . Through market research, a company can examine what the market wants, and look at their current products and services to s e if they are satisfying the customer’s needs. By analysing the market and its requirements, companies can change a product or develop a new product in order to match the requirements of the people they are targeting. In order to sell their product or service, companies need to persuade customers and consumers that their product is different to or better than other similar products and services – that it has a unique selling point (USP). The book of Philip kotler has been the basis of the term paper and proper design criteria has been met.

The internet sources have been properly used throughout the paper. Marketing mix strategies and product life cycle has been properly discussed along with the graph. INDEX 1. INTRODUCTION 4 2. CADBURY 5 3. CADBURY IN INDIA 6 4. 4 P’S OF PRODUCTS 7 5.

Cadbury Essay Example

PRODUCT LIFE CYCLE 14 6. PACKAGING 16 7. LABELLING 18 8. SELLING 19 9. DISTRIBUTION STRATEGY 21 10. CONCLUSION 23 INTRODUCTION

THE CADBURY name has been in existence since 1824 when john Cadbury opened his first shop in Birmingham England (Cadbury Ireland as a subsidiary of) Cadbury Schweppes in the fourth largest confectionary business in the world selling chocolates sugar and gum based products. Cadbury Ireland is the number one confectionery in Ireland. today Cadbury’s best tasting chocolates constitutes the main ingredient of much of these products including everything from solid blocks to chocolate filed bars and novelties, the Cadbury brand is associated with best tastingchocolates.

Cadbury India Ltd. is now a part of Kraft Foods. Chicago-headquartered Kraft Foods acquired Cadbury last January for $18. 9 billion. Cadbury India operates in five categories – Chocolate confectionery, Beverages, Biscuits, Gum and Candy. In the Chocolate Confectionery business, Cadbury has maintained its undisputed leadership over the years. Some of the key brands are Cadbury Dairy Milk, Bournvita, 5 Star, Perk, Bournville, Celebrations, Gems, Halls, Eclairs, Bubbaloo, Tang and Oreo.

Their core purpose “make today delicious” captures the spirit of what they are trying to achieve as a business. This research shows how marketing managers at Cadbury are working to ensure this association is continually developed through their new ‘Choose Cadbury’ marketing strategy. Key concepts of quality, taste and emotion underpin the Cadbury brand. These core values help to differentiate Cadbury from other brands and ensure its competitive advantage. “In the chocolate market the Cadbury brand has in excess of 50% of market share, selling 10 of the top 20 selling chocolate singles. The entire term paper is to provide some of the key points regarding the the product mix strategy ,product life cycle, promotion strategies and the distribution strategy of the cadbury CADBURY Cadbury is a British confectionery company owned by Mondelez International and is the industry’s second-largest globally after Mars, Incorporated. ] Cadbury was established in Birmingham by John Cadbury in 1824, who sold tea, coffee and drinking chocolate.

Cadbury developed the business with his brother Benjamin, followed by his sons Richard and George. George developed the Bourneville estate, a model village designed to give the company’s workers good living conditions. The company is best known for its confectionery products including the Dairy Milk chocolate, the creme egg, and the Roses selection box. Dairy Milk chocolate in particular, introduced in 1905, used a higher proportion of milk within the recipe compared with rival products. By 1914, the chocolate was the company’s bestselling product.

Creme Eggs are made available for sale in the United Kingdom from January of each year until Easter, and are the bestselling confectionary product in the country during the period. The company was known as Cadbury Schweppes plc from 1969 until its demerger in 2008, when its global confectionery business was separated from its US beverage unit (now called “Dr Pepper Snapple Group”). [3] It was also a constant constituent of the FTSE 100 from the index’s 1984 inception until the company was bought by Kraft Foods in 2010. Cadbury is headquartered in Uxbridge, London, and perates in more than 50 countries worldwide. CADBURY IN INDIA Cadbury India began its operations in India in 1948 by importing chocolates. It now has manufacturing facilities in Thane, Induri (Pune) and Malanpur (Gwalior), Bangalore and Baddi (Himachal Pradesh) and sales offices in New Delhi, Mumbai, Kolkata and Chennai. The corporate head office is in Mumbai. Since 1965 Cadbury has also pioneered the development of cocoa cultivation in India. For over two decades, Cadbury has worked with the Kerala Agricultural University to undertake cocoa research. [53][54] Cadbury was incorporated in India on 19 July 1948.

Currently, Cadbury India operates in four categories: chocolate confectionery, milk food drinks, beverage and candy & gum category. Its products include Cadbury Dairy Milk, Dairy Milk Silk, Bournville, 5-Star, Perk, Gems (a version of M&M’s), Eclairs, Bourn vita,[55] Celebrations, Bilkul [56] Cadbury Dairy Milk Shots, Toblerone, Halls, Tang and Oreo. It is the market leader in the chocolate confectionery business with a market share of over 70%. [57] The Brand Trust Report, India Study, 2011 published by Trust Research Advisory ranked Cadbury in the top 100 most trusted brands list. CADBURY

Cadbury Dairy Milk encapsulates an enormous breath of emotions, from shared values such as family togetherness, to the personal values of individual enjoyment. It stands for goodness. A moment of pure magic! Cadbury Dairy Milk (CDM) entered the Indian market in 1948, and since then for consumers across India, the word Cadbury has become synonymous with chocolate. CDM remains at the top of the Indian chocolate market not only because of its most delicious, best tasting chocolate but also because of its memorable communication. 4 P’S OF PRODUCT PRODUCT My product is a re-launch of Cadbury dairy milk.

Cadbury dairy milk is made from real chocolate. Its ingredients include cocoa butter and there is a glass and half full cream dairy milk in every 200 grams of Cadbury dairy milk chocolate, Cadbury buys 65 million litres of fresh milk each year to make Cadbury dairy milk chocolate. Cars, chocolate bars, insurance, flights, trainers – they are all products. The customer is the individual or group that buys a product and a consumer is the one who uses it. Through market research, a company can examine what the market wants, and look at their current products and services to see if they are satisfying the customer’s needs.

By analysing the market and its requirements, companies can change a product or develop a new product in order to match the requirements of the people they are targeting. In order to sell their product or service, companies need to persuade customers and consumers that their product is different to or better than other similar products and services – that it has a unique selling point (USP). They might give it a special feature that no similar products have. Alternatively, they might use advertising or eye-catching packaging to make their product stand out from the competition.

A selection of Cadbury’s products PRICE Price is an important element of the marketing mix. The price charged for a chocolate bar can determine whether a consumer will buy it and the level of sales achieved can determine whether or not Cadbury Schweppes will make a profit. 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 market will bear. From the marketing point of view this is what matters.

If a company is to sell a new product it has developed, choosing the correct price is vital. If the price is set too high it may be more than the product’s target customer can afford, more expensive than similar products sold by other companies, meaning that few will be sold. However, if it is set too low, the company will make less profit and customers may think that the product is inferior to similar products at a higher price. There are many different pricing strategies, and some companies use mark-up pricing to decide the price of their product.

This means they take the average cost of making each product and add on a percentage of the price as profit. The percentage added will depend on several factors, for example how much other companies charge for similar products and the image of the product. If a business has developed a product that they want to have a luxurious feel, seem exclusive and special, it is likely to have a higher price. PLACE There is no point having a great product or service if the customer cannot easily get access to it. This is where the PLACE part of the marketing mix is important.

Companies need to find the most cost-effective channels of distribution to get their products to their target customers. The nature of the product and its target audience will influence the places at which a company wishes to sell its products. If their product is low-priced, like a chocolate bar, companies may use intensive distribution by getting their product into as many shops and outlets as possible. There are two types of distribution channel; direct and indirect. Direct channels of distribution Business > customer (i. e.

TV shopping channels, mail order catalogues, internet sites, telesales, factory shops etc. ) Using direct channels of distribution cuts out the middleman and therefore increases profit for the company. Indirect channels of distribution Business > Wholesalers > High-street retailers > customers Organisations in the distribution channel provide different benefits and value to the product. Places where Cadbury products are sold Retail outlets – shops, supermarkets, garages Vending machines –train stations Restaurants and cafes

Cinemas, theatres, theme parks Travel – buffet cars, on board airlines, motorway service stations PROMOTION There are many different types of promotion, and these are sometimes referred to as the “Marketing Toolkit”. These include: Advertising Sales Promotions Direct Mail Public Relations 1. ADVERTISING Advertising is an industry that involves using different media to inform consumers about products and persuade them to buy. These can include: Television and radio ,Newspapers and magazines,Billboards , Internet.

Split Screen – advertising on screen at the same time as broadcasts such as F1 Internet Advertising – information windows and ‘pop ups’ In the early days, the brand had a huge fan following among kids. In order to build stronger appeal among older age groups, the brand re-positioned itself through the classic ‘Real Taste of Life’ campaign in 1994. The campaign positioned Cadbury Dairy Milk as the chocolate that awakened the little child in every grown up and very soon, both teenagers and adults, were hooked on to this bar of pure magic. With the launch of the Rs. pack in 1998, CDM became more affordable and hence more accessible for the masses. The ensuing positioning of ‘Khaane Waalon ko khaane ka Bahana Chhayie’ made consumption into a joyful, social occasion. In 2004, the `Kuch Meetha Ho Jaaye’ campaign was launched, seeking to increase CDM consumption by making it synonymous with traditional sweets (Mithai). With Amitabh Bachchan as the face and voice of the brand, the campaign went on to become a huge success. People could relate to the commercials that were aired to promote Cadbury Dairy Milk. How many can forget the `Pappu Pass Ho Gaya’ commercial?

The country cheered on as Pappu fell in love in the Pappu Love Test commercial. Then came`Miss Palampur’ and the country celebrated the beauty pageant with a difference. The`Kenya’ commercial that was aired in 2008 celebrated the spirit of cricket and that of true sportsmanship. In 2009, we aired another commercial under the `Kuch Meetha Ho Jaaye’ platform, called the `Pay Day’ commercial. In the year 2010, the `Shubh Aarambh’ campaign was launched, drawing lines from the traditional Indian custom of having something sweet before embarking on something new.

With `Shubh Aarambh’, Cadbury took the Dairy Milk journey a step further into the hearts of its million lovers. With the current campaign ‘Khaane Ke Baad Meethe Mein Kuch Meetha Ho Jaaye’, our aim is to introduce the thought of having a CDM as a post dinner meetha (dessert) 2. SALES PROMOTIONS These are techniques used to keep a product name in the mind of the consumer without using the direct advertising mentioned previously. Possible promotions might be: Discounts – a temporary reduction in the price of a product to increase the likelihood of the customer ‘trying’ it.

Free samples – giving away examples of the product for consumers to try before they buy. Special stand in a shop – a display of goods which is intended to catch the consumer’s eye. 3. DIRECT MAIL This is the process by which the company contacts the customer directly with information and/or incentives to buy the product from outlets. New laws on sending direct mail and the growth of email marketing have significantly changed how customers are contacted. Plus, advances in technology mean that companies are now better able than ever to effectively target customers through direct mail. 4.

PUBLIC RELATIONS (PR) Public relations is all about making sure that a company builds and maintains good relations with their target audience. This includes such activities as working to make sure newspaper journalists write positive things about the product or service, or organising events to help raise the profile of the product or service. These are some of the sales promotions or the advertising THE PRODUCT LIFE CYCLE eg; CADBURY SNACK The Cadbury Snack range was launched in the 1950s in Ireland. The range consists of three main products: ? Snack Wafer in distinctive pink packaging Snack Shortcake in distinctive yellow packaging ?Snack Sandwich in distinctive purple packaging The Snack range is the third biggest confectionery brand in Ireland accounting for over €22m of Cadbury retail sales. The fact that the Snack range still commands such a strong market presence over 50 years later is testamentto the strong management both of the brand itself and its product life cycle. The product life cycle model helps marketers identify thedifferent stages that the sales and profits of a product gothrough during the course of its lifetime. There are fivestages to the product life cycle: 1.

Introduction: Sales are slow as the product is not yetknown. Costs are high due to heavy marketing spend tocreate awareness. Emphasis is on advertising anddistribution. The recently launched Cadbury Snapsrange is an example of a brand at the introduction stage. 2. Growth: This stage shows growing market acceptanceand increasing profits. Competitors begin to enter themarketplace. The business concentrates on optimizing product availability. The Natural ConfectioneryCompany is an example of brand at growth stage. Maturity: The rate of sales growth slows down as the product has been widely distributed and sold.

The company now focuses on creating brand extensions and promotion offers to boost sales. New product research is critical to ensure future sales. The Cadbury Snack range is an example of a brand at the maturity stage. 4. Saturation: Sales slow down as the market becomes saturated. Profits level off and may even decline due to increased investment in marketing to defend against competitors. McDonald’s is an example of a brand that has reached saturation stage. 5. Decline: Sales slow down dramatically and profits fall off. The product may be dropped to make way for new products and thecycle recommences.

MG Rover is an example of a brand that has reached the decline stage. Brand positioning is the aspect of the brand actively communicated to the target audience, specifically, its competitive advantage, values and imagery. It is strongly related to the perception and image of the product. When devising a positioningstrategy for a product, marketers must establish a unique and distinctive image of that product in the mind of the consumer. This will differentiate a company’s product from its competitors. PACKAGING Design of packaging can be divided into twolevels which, for Cadbury, go together corporate design and brand promotion.

Everybrand has its individual design style and color that depends on the market positionand consumer perception. However, withoutexception the Cadbury house name in its familiar and unique script is always includedso that the individual product gains from the overall company reputation. Cadbury’s world famous packaging iscomprised of four key elements: _ distinctive packaging design _ the Cadbury corporate purple color _ the glass and a half of full cream milklogo _ the Cadbury script logo. These elements are designed to convey to consumers the memorability, distinctiveness and high quality of Cadbury products.

They arecommunicated on the product itself, and on itspromotional campaigns and at the product’spoint of sale. As such they represent an integralpart of the Cadbury brand identity. The style inwhich these elements are presented hasevolved over the years in line with market demand From the outset, the packaging of Cadburyproducts was considered a highly important marketing tool. Cadbury now has a largeteam of designers working on every aspect ofthe company’s design requirements: packaging design, brochures, point of sale material and overall corporate identity elements.

The designs of all Cadbury products reflectthe overall quality image that is synonymous with the name Cadbury. However, each newline has its own packaging which isdeveloped to give an individual look to aproduct whilst it is still evident that it belongsto Cadbury. Two good examples of this are the packaging for Crunchie and Time Out. This policy has helped to ensure that brandsremain relevant to the current marketplaceand sets them apart from their competitors’ Also, the company will reduce the bulk packaging from 60 bars to 22 bars. Each bulk pack will be shrink-wrapped.

This is expected to minimise the sale of loose packs to the retail trade. Over the next two weeks, a team of trained quality control managers along with over 300 sales people will complete a thorough check of over 50,000 outlets across Maharashtra that stock and sell Cadbury products. The teams will conduct checks on storage facilities and Cadbury-supplied chocolate dispensers and talk to owners and educate them about the appropriate handling and storage of chocolates. LABELLING We’re looking for ways to help people make more informed choices.

This includes providing more information about our products and ingredients and messages to help educate the consumer. We’ve launched a new global labeling standard. Fairtrade Certified™ Cadbury Dairy Milk has been on shelves since 2010 our range was extended with the addition of the Fairtrade Certified™ Easter Egg. This creates a fantastic opportunity for you to make a real difference to the lives of families in developing countries such as in Ghana. Our Fairtrade commitment has generated significant social premiums for cocoa farmers. In 2009 and 2010, we were the world’s largest buyer of Fairtrade certified cocoa.

Fairtrade Certified™ Cadbury Dairy Milk milk chocolate products are available in a variety of shapes and sizes for all occasions including: 50g bar, 100g, 200g, 350g blocks, and sharepacks. SELLING In order to increase sales Cadburys needs to undertake a range of marketing activities before deciding upon the best way to encourage the purchase of its product. When identifying the basic principals which Cadburys must apply to its marketing will be its basic objectives because all business must have objectives it allows them to increase sales and make profit.

Corporate aims are the long term intentions of a business, whereas corporate objectives are the specific targets required to achieve the aims. The common aim and objectives of the corporation such as Cadbury includes the following: 1 Survival 2 Profit maximisation- which is often taken to be the reason why firms exists and to be the primary objectives in practices most firms have a hierarchy of objectives when a firms survival is threaten it may profit maximise in order to restore its financial health. Growth- which includes Cadbury selling new products or expanding overseas. 4 Diversification- which is the spreading of business risks by reducing dependence on one product. 5 Sales maximisation- which is the increasing of sales 6 Improving the product image-which includes creating a new logo or launching a new brand of product and creating more attractive packaging. For example, Cadbury set out two objectives for the development of their chocolate, Fuse. These were: 1. To grow the market for chocolate confectionery . To increase Cadbury’s share of the snacking sector When launching a product the company Cadbury’s had to make sure that any new product in the snaking sector must establish points of difference, creating a unique selling proposition (USP) i. e. a product with unique appeal which is not shared by any of its competitors. Referring back to the example of Fuse, Cadbury lost a lot of money testing out the combination of various ingredients and more than 250 were combined before the recipe of the chocolate was finalised.

As the products are developed, Cadbury tests them to ensure that consumers are willing to buy them. Cadbury then promotes its products in various ways such as the use of above the line promotion, which is where a product is advertised through consumer media such as television, magazines, newspapers and radio. DISTRIBUTION STRATEGY The market channel strategies are broad principles by which the firm expects to achieve its distribution objectives for its target market. The design of the channel should contribute to the firm’s quest for Differential Advantage.

It is the responsibility of administration of existing channels to secure the cooperation of channel members in achieving the firm’s distribution objectives AnandKripalu, Cadbury India’s managing director, is in favour that Cadbury should focus on exploring new marketing channels and price points in order to turn infrequent customers into regular buyers. These channels are likely to include non-retail chains in a bid to reach new customers or provide existing customers with the opportunity to buy Cadbury brands where they did not expect it.

The company is also going to experiment with new price points for its flagship brand Cadbury Dairy Milk, which accounts for 30% of Cadbury India’s overall chocolate business. Cadbury is also focusing intensively on achieving distribution equity. Though it takes much more time and effort to build, but once built, distribution equity is hard to erode. With technology and competitive pressure slash in it is becoming increasing difficult for marketers to retain a unique product differentiation for long period.

In a product and price parity situation, the brand that sells more is the one that reaches the highest number of customers. India with 1 billion people, 155 million household has over 4 million retail outlets in 5351 urban markets and 552725 villages, spread cross 3. 28 million sq. km. Getting there means managing wildly different terrains-climate, language, value system, life style, transport and communication network. To tap this huge potential Cadbury’s distribution channels include the manufacturing warehouses where the chocolate production takes place.

CONCLUSION In order to increase sales Cadburys needs to undertake a range of marketing activities before deciding upon the best way to encourage the purchase of its product. When identifying the basic principals which Cadburys must apply to its marketing will be its basic objectives because all business must have objectives it allows them to increase sales and make profit. Corporate aims are the long term intentions of a business, whereas corporate objectives are the specific targets required to achieve the aims.

This term paper tries to cover the entire strategy regarding the different marketing aspects of the Cadbury product . Cadbury is also focusing intensively on achieving distribution equity. Though it takes much more time and effort to build, but once built, distribution equity is hard to erode. With technology and competitive pressure slash in it is becoming increasing difficult for marketers to retain a unique product differentiation for long period. In a product and price parity situation, the brand that sells more is the one that reaches the highest number of customers.

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