How to theory apply in to practical of marketing management to cadbary dairy milk products

WEL-COME

10/18/2013 Babasabpatilfreepptmba.com 1

http://www.cadburyindia.com/downloads/viewad.asp?ID=58



Subject:-Marketing Management

Project on Cadbury chocolate company


INTRODUCTION of CADBURY COMPANY

The company was started in 19th century on July 1948 as a private limited company, under the name of the Cadbury fry (India) private limited and commenced business soon thereafter. Manufacturing facilities were set up gradually


BOARD OF DIRECTORS OF CADBURY INDIA

NAME DESIGNATION

C.Y.PAL Chair Person

Rajiv Wahi Vice Chairman

Jaiboy phillips Non Executive Director

V .Chandramouli Executive Director

Sunil Seth Executive Director

Sanjay Purohit Executive Director


LOGO OF THE company

10/18/2013 Babasabpatilfreepptmba.com 5 THE REAL TASTE OF LIFE THE REAL TASTE OF LIFE

• Cadbury mission statement says “Simply cadbury was quality this is our mission & promise.


• Promotion of brands carrying mass franchise without comprise

on quality or margins.

• Increasing the market depth including rural india’s coverage.

• Better product quality and packaging.

• All round efficient utilisation of tangitable as well as intangible

such as brands and people.

• Efficient working capital management.

• Depreciation charge to meet the CAPEX needs every year.

• Surplus cash so generate to either gainfully and meaningfully

reinvested in business or return to Stake holders.


Different Brands of Company

• Cadbury Dairy Milk

• Perk

• Cadbury Celebrations

• 5 Star Crunchy

• Beverages (Bournvita)

• Eclairs

• Halls


BRANDS Core Needs Auxiliary Needs

Cadbury Dairy Milk Taste , Sweetness, Enjoyment Deliciously smooth texture & unique creamy tasty

Perk Taste , Sweetness, Enjoyment

Wafer chocolate Light and crispy

5 Star Crunchy Taste , Sweetness, Enjoyment

Cingering taste of Togetherness & Soft & Chewy

Beverages (Bourn vita)

Taste , Sweetness, Enjoyment

To grow Strong & Healthy.

Celebrations Taste , Sweetness, Enjoyment

Tasty, Rich looking and Status

Éclairs Taste , Sweetness, Enjoyment

Delicious journey to a heart of rich chocolate.

Halls Nasal and Throat relief Mouth Refreshment


APPROACHES EXTENT JUSTIFY

PRODUTION CONCEPT

Partially applicable All brands of products are widely available with low cost expect celebration which is high cost so it is partially applicable.

PRODUCT CONCEPT Fully applicable Here products are given importance with superiority. Unique features like Cadbury dairy milk colorful primary packaging over a thin aluminums foil is used.5 star comes its classes golden color. Perk has color combination of blue, yellow, red and brown, éclairs is a toffee version of chocolate packed in combination of blue and yellow. These chocolate includes rich variants fruits and nut, craclsle and roast almond, and rich dry fruits.


APPROACHES EXTENT JUSTIFY

Selling concept Partially applicable Attracting customers by giving advertisements through media. in India Cadbury is highest selling chocolate brand with 70% market dominations. In order to increase its consumer base, it comes up with new campaign to increase the consumption of chocolates

Marketing concept Fully applicable Cadbury always focus on delivering best of its customer in order to get best cocoa for its chocolates.

Societal marketing concept

Fully applicable Cadbury competitors are not only restricted to chocolate industry but also small sweets shop owners. cadbury has positioned itself as that whenever people want to have sweet then they should have cadbury chocolate. Company has launched dairy milk desserts for the same. Company wants to be a part of every Indian consumer happiness, joy and celebrations. For this company has come up with campaigns to promote its product to the child in every adult. “real taste of life” is one such campaign from the company.


Swot analysis of Cadbury company

STRENGTH: 1.Cadbury is the largest global confectionery supplier, with 9.9% of global

market share.

2.High financial strength (Sales turnover 1997, £7971.4 million and 9.4%).

3.Strong manufacturing competence, established brand name and leader in

innovation.

4.Advantage that it is totally focused on chocolate, candy, chewing gum,

unique understanding of consumer in these segments.

5.Successfully grown through its acquisition strategy. Recent acquisitions,

including Adams, 2003, enabled it to expand into important markets like the US

market.


WEAKNESS

1. Cadbury has a reputation for new product development and

creativity. However, they remain vulnerable to the possibility that

their innovation may falter over time.

2. The organization has a strong presence in the United States of

America, UK and India. It is often argued that they need to look for

a portfolio of countries, in order to spread business risk.

3. Cadbury's recall over 1 million chocolate bars over salmonella

fears

4. The organization is dependant on a main competitive advantage,

the retail of coffee. This could make them slow to diversify into

other sectors should the need arise.

5. The company has no apprehensions of cannibalization of its

chocolate brands.


OPPURTNITIES

1.Cadbury company is very good at taking advantage of opportunities.

2. The company has the opportunity to expand its global operations. New markets with new products which are limited in particular region.

3. Cadbury has decided to focus on a few of its key brands such as Cadbury Dairy Milk, Bourn vita, Éclairs and Halls to drive growth for the company.

4. Co-branding with other manufacturers of food and drink, and brand franchising to manufacturers of other goods and services both have potential.

5. Cadbury India is attempting to increase the declining market for chocolate with innovation, one of which is its sweet snack, Bytes

6. Brand ambassador Amitabh Bachchan for advertising there new products.


THREATS

1. Who knows if the market for Cadbury will grow and stay in favour with customers, or whether another type of beverage or leisure activity will replace coffee in the future?

2. Health organization have so many barriers for new development

3. Cadbury’s are exposed to rises in the cost of chocolate and dairy products.

4. Entry into salted snacks was ruled out so it is important to do new innovation and marketing research.


DIFFERENT BRANDS AND FEATURES


BRAND NAME FEATURES

DIARY MILK The chocolate with deliciously smooth Texture and unique creamy taste. Cadbury diary milk, fruit and nut and whole nut are the of the best loved varieties of Cadbury mega brand.

CELEBRATIONS

• The above product will be deliverable in all over India. It consists of all chocolates of Cadbury which is beautifully packed and used to present as a gift pack.

• ECLAIRS

The two classic ingredient of toffee and chocolate combined together to create a truly unique experience.


HALLS

Its ayurvedic proprietary medicine which consists of niligiri tailam, shakara(sugar base), nimbus. Which reliefs from throat and cold problems.

5_STAR

Which contains added identical and artificial flavoring substances. Lose yourself in the yummy mode.


PERK

• Which have the extra taste of Cadbury diary milk .

• Perk contains wafer layers with Chocó cream and wheat flour and different ingredients.


PUNCHLINE AND BRAND AMBASSDOR

PRODUCT NAME: DAIRY MILK


DAIRY MILK

“Kuch mita ho

jayee”

Product name: Perk



THODI SI PET POOJA

PUNCH LINE



PRODUCT NAME: HALLS


THANDI SAANS KA

BLAST



Product Name: 5 Star


JO KHAYE KHO

JAYE


PRODUCT NAME:


CELEBRETATION

PUNCH LINE

“RISHTO ME MITAS”


PRODUCT NAME:


ECLARS



PRODUCT NAME:BUBBALO

PUNCHLINE:

BUBBA

THE

CAT




BYTES

HAR SNACK NAMKIN NAHI HOTA

PRODUCT NAME

PUNCH LINE




BOURNVITA

NATURE AND SCIENCE

TAN KI SHAKTI

MAN KI SHAKTI

PUNCH LINE

PRODUCT NAME


CADBURY CHOCOLATES

NESTLE CHOCOLATES PARLE-G

DIARY MILK KITKAT MALODY CHOCOLATE

PERK MUNCH MANGO BITE, KUCCHA MANGO

FIVE STAR MILKYBAR KISMI BAR

BEVERAGES

BOURNVITA BOOST -------------

SNACKS

BYTES MAGGI NODDLES MUSST Bites, MONACO bites , Sixer

BRANDS COMPETITORS


COMPETITORS OBJECTIVES


COMPETITORS OBJECTIVES

NESTLE “Aim to build a business as the world's leading

nutrition, health and wellness

company based on sound human

values and principles.”

SWOT ANALYSIS OF COMPETITORS-NESTLE

STRENTHS


1. Diversification: Nestle has a wide product portfolio encompassing baby foods and dairy products, chocolates and breakfast cereals and food seasoning.

2. Joint ventures: Nestle holds joint ventures with leading businesses like Coca Cola, General Mills and L'Oreal which allow it to access their technical knowledge to further develop its own brand.

3. Influencing consumer decisions: With its innovative and attractive advertising campaigns Nestle is able to influence customer's buying decisions.

4. Established brand across the globe: With an employee base of over 200,000, annual revenues of more than $120 billion and a presence in more than a 100 countries, Nestle brings with it a strong brand name and knowledge of different markets all over the world.

WEAKNESS

1. Negative effects on the brand image: The investigations into the controversial advertising campaign that promoted infant milk products over breastfeeding and the usage of slave labor for its plants in African countries continue even today and Nestlé’s brand name has been negatively affected due to the media campaigns covering this issue.

2. Storage and transportation problems: Because the Indian food industry is not developed enough to handle complex storage and transport requirements, Nestle has a difficult job of providing product quality at centers far off from the manufacturing base.

3.Complex supply chain management: Nestle has a complex supply chain management and the main issue for Nestle India is its traceability


OPPURTUNITIES 1. Growing middle class: The growing middle class and the high

percentage of youth population provides an excellent opportunity for Nestle to use its existing range of kiosks in malls and educational institutes to build a loyal brand following.

2. Urbanization and nuclear families: With the Indian society moving towards a more urban and nuclear family society, Nestle has huge market for its products like Maggi and Dahi and other milk products.

3. Low labour costs in developing countries: Since manufacturing of some products is cheaper in India than in other South East Asian countries, Nestle India could become an export hub for the parent in certain product


THREATS

1. Cost of raw materials: Inflation rising at the pace that it is puts a strain on Nestle for buying its raw materials like food grains and yet maintaining its margins.

2. Indians perception towards fresh foods: Indians believe in eating fresh foods instead of ready to eat products, which provide a major hurdle in the marketing of Nestle products across the country.


CONT……

3. Exports to a single location: The company’s exports stood at Rs 2,571 m at the end of 2003 (11% of revenues) and continue to grow at a decent pace. But a major portion of this comprises of Coffee (around 67% of the exports were that of Nescafe instant to Russia). This constitutes a big chunk of the total exports to a single location. Historically, Russia has been a very volatile market for Nestle, and its overall performance takes a hit often due to this factor.

4. Liberalization of trade and investment policies: Nestle faces immense competition from the organized as well as the unorganized sectors. Off late, to liberalize its trade and investment policies to enable the country to better function in the globalised economy, the Indian Government has reduced the import duty of food segments thus intensifying the battle.


WHOM TO ATTACK AND WHOM TO AVOID

Competitors Nestle Parle –g Amul

Strong -

Weak

Close -

Distant -

Good

Bad

Attack

Avoid


FOUR P’S OF CADBUARY


PRODUCT PRICE PLACE PROMOTION

DAIRY MILK RS.5,10,20, Advertisement s

and giving offers in

occasion times The company

using two way

distribution

channel.

PERK RS.2,5

CELEBRATIONS RS.60,250

5-STAR RS.3,5,10,

BOURNVITA RS.131/KG

HALLS RS.50PS

BYTES RS.5,20

PRICING STRATEGY

Cost Based Pricing Strategy

The company adopting Cost based pricing strategy. They set price based on producing manufacturing cost and it includes selling and distributing cost also.


STAGES OF CONSUMER DECISION PROCESS

Stages involved:

• Need Recognition.

• Information Search.

• Evaluation of Alternative.

• Purchase Decision.

• Post Purchase.


FACTORS INFLUENCING BUYING BEHAVIOUR

FACTORS HIGH/MEDIUM/LOW

IMPACT JUSTIFICATION

Cultural factors High Impact According to the consumer emotions love and affection all these factors influence to buy the product .all class people are preferred to eat chocolate for enjoyment and for testy purpose

Social factor High Impact Friends and family member’s neighbors (reference group) are highly influences to buy the product.


Personal factors

High Impact According to this factor the age of the consumer highly influence to the product

Psychological factors

Low Impact Many of consumer’s beliefs that chocolate may effect to teeth. And they contain germs. So they not prefer to more chocolates


Conclusion

After studying the overall report we

come to conclude that the company has a

good market share and good brand image in

a Indian market. The market share of a

company is 79% they acquired the whole

Indian market. After studying of

competitors we came to know that they do

not have strong competitors in Indian

market. To promote their product in the

market. They take the brand ambassadors

like Amitabh Bachan, Preity zinta. Finally

we come to conclusion that the company is

having good position in an Indian market.


Thank you


How to theory apply in to practical of marketing management to cadbary dairy milk products

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