EXECUTIVE SUMMARY The project which I choose is on Cadbury Company which is “marketing strategy of Cadbury India ltd”. Cadbury is a Multinational Company and its business is worldwide. This project covers the following topics: The introduction and the history of the company, market segment and the customer driven marketing strategies of that company and factors for success of Cadbury. The project also covers the Four P’s of marketing (Product, Price, Place and Promotional strategies).It also tells about brand, Slogans and about the target market of this product. At the last my conclusion about the whole marketing process of that company’s product. I also give the reference of those websites which provides me relevant material. And the recommendations about this project.
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EXECUTIVE SUMMARY
The project which I choose is on Cadbury Company which is “marketing strategy
of Cadbury India ltd”. Cadbury is a Multinational Company and its business is
worldwide.
This project covers the following topics:
The introduction and the history of the company, market segment and the customer
driven marketing strategies of that company and factors for success of Cadbury.
The project also covers the Four P’s of marketing (Product, Price, Place and
Promotional strategies).It also tells about brand, Slogans and about the target
market of this product.
At the last my conclusion about the whole marketing process of that company’s
product. I also give the reference of those websites which provides me relevant
material. And the recommendations about this project.
CHAPTER 1
INTRODUCTION
INTRODUCTION OF CADBURY
Cadbury India is a food product company with interests in Chocolate
Confectionery, Milk Food Drinks, Snacks, and Candy. Cadbury is the market
leader in Chocolate Confectionery business with a market share of over 70%.
Some of the key brands of Cadbury are Cadbury Dairy Milk, 5 Star, Perk, Eclairs,
Celebrations, Temptations, and Gems. In Milk Food drinks segment, Cadbury's
main product - Bournvita is the leading Malted Food Drink in the country.
Its heritage can be traced back in 1824 when John Cadbury opened a shop in
Birmingham selling cocoa and chocolate. Since then we have expanded our
business throughout the world by a program me of organic and acquisition led
growth. On 7 May 2008, the separation of our confectionery and Americas
Beverages businesses was completed creating Cadbury plc with a vision to be the
world's BIGGEST and BEST confectionery company.
Cadbury is the world's largest confectionery company and its origins can be traced
back to 1783 when Jacob Schweppe perfected his process for manufacturing
carbonated mineral water in Geneva, Switzerland. In 1824, John Cadbury opened
in Birmingham selling cocoa and chocolate. Cadbury and Schweppe merged in
1969 to form Cadbury Schweppes plc. Milk chocolate for eating was first made by
Cadbury in 1897 by adding milk powder paste to the dark chocolate recipe of
cocoa mass, cocoa butter and sugar. In 1905, Cadbury's top selling brand, Cadbury
Dairy Milk, was launched. By 1913 Dairy Milk had become Cadbury's best selling
line and in the mid twenties Cadbury's Dairy Milk gained its status as the brand
leader. Cadbury India began its operations in 1948 by importing chocolates and
then re-packing them before distribution in the Indian market. Today, Cadbury 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). Its corporate office is in Mumbai.
Worldwide, Cadbury employs 60,000 people in over 200 countries.
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.
THERE ARE THREE MAIN BRAND NAME STRATEGIES:
Family brand names: The parent brand is also known as an “umbrella” brand.
This term is given to product ranges where the family brand name is used for all
products. The advantage of this approach is the positive associations with the
parent brand will transfer to all sub brands. The risk however is that that if one
brand is unsuccessful or falls into disrepute, the reputation of the complete family
of brands can be tarnished. Cadbury is a family brand .\
Individual brand names (multi brands): in this case each brand is created and
named separately and has separate identity. Using a family brand may not be that
suitable as brand values may be far apart.
Combination brand names: This approach allows for the optional use of the
corporate brand name, while allowing an individual brand to be identified, e.g.
Cadbury Dairy Milk.
Cadbury uses a combination of brand strategies. The family brand ,Cadbury is
linked with its famous sub brands , i.e. Cadbury Crème Egg, Cadbury Roses and
Cadbury Flake to name a few. The family brand identity is style communicated by
packaging with the Cadbury corporate purple color and the distinctive Cadbury
script logo. The sub brand is then distinguished by its own individual livery.
Recently marketers have identified particularly strong family or corporate brands
as MASTERBRANDS. Cadbury is such a brand. However, a true Masterbrand is
more than name of the company – it incorporates the company’s mission, vision
and values, representing them in a way that is easily understood by consumers.
IBM is another example of MASTERBRAND.
Cadbury’s core brand values include "life’s everyday pleasures that make us feel
good and never let us down. As a reward or a pick me up, we consumer s trust
Cadbury chocolate to make us feel better
ABOUT THE REPORT
Title of the study: - The present study is titled as “A PROJECT REPORT ON MARKETING STRATEGY OF CADBURY INDIA LTD”.
Objective of the study:- The following are the objective of the study
To demonstrate the marketing strategy of cadbury To study 4p’s of marketing, swot analysis, pest analysis. To evaluate current marketing strategy. To analyze the factor for success of cadbury.
Period of the study:-The period of the present study is OCT 2015.
Limitations of the Study:-The present study has got all the limitations of explanatory study method.
Data and Methodology:-For the purpose of the present study I had referred internet, books, newspaper to collect information.
CHAPTER 2
PROFILE
COMPANY OVERVIEW
Cadbury India is a fully owned subsidy of Kraft Foods Inc. The
combination of Kraft Foods and Cadbury creates a global powerhouse in snacks,
confectionery and quick meals.
With annual revenues of approximately $50 billion, the combined
company is the world's second largest food company, making delicious products
for billions of consumers in more than 160 countries. We employ approximately
140,000 people and have operations in more than 70 countries. 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.
The core purpose "make today delicious" captures the spirit of what
they are trying to achieve as a business. They make delicious foods you can feel
good about. Whether watching your weight or preparing to celebrate, grabbing a
quick bite or sitting down to family night they pour our hearts into creating foods
that are wholesome and delicious.
Currently, Cadbury India operates in four categories viz. Chocolate
Confectionery, Milk Food Drinks, Candy and Gum category. In the Chocolate
Confectionery business, Cadbury has maintained its undisputed leadership over the
years. Some of the key brands in India are Cadbury Dairy Milk, 5 Star, Perk,
Éclairs and Celebrations.
Cadbury enjoys a value market share of over 70% - the highest
Cadbury brand share in the world! Our billion-dollar brand Cadbury Dairy Milk is
considered the "gold standard" for chocolates in India. The pure taste of CDM
defines the chocolate taste for the Indian consumer.
In the Milk Food drinks segment our main product is Bournvita - the
leading Malted Food Drink (MFD) in the country. Similarly in the medicated
candy category Halls is the undisputed leader. We recently entered the gums
category with the launch of our worldwide dominant bubble gum brand Bubbaloo.
Bubbaloo is sold in 25 countries worldwide.
Since 1965 Cadbury has also pioneered the development of cocoa
cultivation in India. For over two decades, we have worked with the Kerala
Agriculture University to undertake cocoa research and released clones, hybrids
that improve the cocoa yield. Our Cocoa team visits farmers and advise them on
the cultivation aspects from planting to harvesting. We also conduct farmers
meetings & seminars to educate them on Cocoa cultivation aspects. Our efforts
have increased cocoa productivity and touched the lives of thousands of farmers.
Hardly surprising then that the Cocoa tree is called the Cadbury tree!
Today, as a combined company with an unmatched portfolio in
confectionery, snacking and quick meals, it is poised in its leap towards quantum
growth. It is the world's No.1 Confectionery Company. And it will continue to
“make today delicious”!
HISTORY OF CADBURY
1824 – A once business was opened in 1824 by a young Quaker, John Cadbury, in
Bull street Birmingham was to be the foundation of Cadbury Limited, now one of
the world’s largest producer of chocolate
.
1831 – By this year the business had changed from a grocery shop and John
Cadbury had become a manufacturer of drinking chocolate and cocoa. This was the
start of Cadbury manufacturing business as it is known today. A larger factory in
Bridge Street Birmingham was rented in 1847, John Cadbury was joined by his
brother Birmingham and the business became Cadbury Brother of Birmingham.
1861 – John Cadbury resigned his business and handed over to his sons, Richard,
25 and George, 21 who after 5 difficult years almost shut down the business to take
up other vocation. Fortunately for generation of chocolate lovers, they didn’t.
1866 – Saw a turning point for the company with the introduction of a process for
pressing the cocoa butter from the coca beans. This not only enabled Cadbury
Brothers to produce pure coca essence, but the plentiful supply of coca butter
remaining was also used to make new kind of eating chocolate. The essence was
advertised as ‘Absolutely pure, therefore best’.
1879 – Business prospered from this time and Cadbury Brother outgrew the Bridge
Street factory, moving in 1879 to a ‘Greenfield’ site some miles from the center of
Birmingham which came to call Bourneville. The opening of the Cadbury factory
in a garden also heralded a new era in industrial relations and employee welfare
with joint consultation being just one of the introduced by the pioneering Cadbury
Brothers.
1899 – In this year the business private limited company – Cadbury Brothers
Limited. Progress since the start of the century through the inter – war years
onward ahs been rapid. Chocolate has moved being a “luxury” item to well within
the financial reach of everyone.
1905 – Cadbury has many famous brands with one of major success story being
Cadbury’s Dairy Milk chocolate launched in 1905, today Britain’s favorite
modules chocolate bar.
Cadbury today is the market leader in the U.K chocolate confectionary market,
employing the most advanced processing technology and management information
and control techniques. The company is the confectionary division of Cadbury
Schweppes plc which is major force in the confectionary and soft drinks
international market.
World - wide Cadbury is one of the pre – eminent names in confectionary with
impressive range of famous brands.
Quality has been the focus of the Cadbury business from the very beginning as
generations have worked to produce chocolate with that very special taste,
smoothness and snap, so characteristics of Cadbury’s chocolate.
CADBURY PRODUCTS
Cadbury's Dairy Milk (CDM)
Cadbury's Dairy Milk is the flagship brand of Cadbury's not only in India but
world wide. CDM is the single largest selling unit in India. It has annual sales to
the tune of Rs 200 crore. CDM not only accounts for 30 per cent of the total
chocolate market in value, but commands nearly 26 per cent in volume terms and
close to 30 per cent of Cadbury's annual turnover.
Moving from a predominantly adult positioning in the days of the legendary
dancing girl ad, to the teens and the tweens, when the Cyrus Broacha ads hit the
airwaves, CDM has made a long sweet journey. In spite of the new categories
being explored by Cadbury, its star brand remains Cadbury Dairy Milk (CDM)
which continues to corner almost 30 per cent of the chocolate market.
Cadbury's Temptation
Cadbury's Temptation is premium chocolate brand aimed for high value
consumption. Various variants available are Almond, Rum, Cashew & Orange.
Cadbury's temptation is priced at Rs. 40
Cadbury's Celebration
Cadbury India launched its premium Celebrations range, which contains traditional
Indian dry fruits wrapped in Dairy Milk chocolate. This gifting option combines
the pleasure of giving away dry fruits - which Indians traditionally consider a
premium, healthy gift - with chocolate. Cadbury now has 90 per cent market share
in this profitable segment.
PRODUCT REVAMPING & INNOVATIONS
Cadbury's chocolate brands registered double-digit growth in 2002, touching an
astounding 19 per cent in the second half of that calendar year. Getting the power
brands right was the first priority, so genuine re-launches of the products were
made.
However, the growth rate was declining after that. The growth went down from 19
per cent in 1999 to 12 per cent in 2000 to single-digits, with seven per cent in
2001. If it staged a smart recovery to nearly 10 per cent in 2002, it was largely on
the back of Chocki and the revamped power brands.
PRODUCT INNOVATIONS:
5 STAR
Consumer feedback suggested that the old 5 Star was too chewy, and people
complained of it sticking to their teeth. It was made softer and melted easily in the
mouth & introduced as 5 Star Crunchy.
PERK
Perk was made much lighter and the size of the bar increased to match Nestle's
Munch. Perk had been under fire from Nestle's deadly duo of KitKat and Munch,
but after the relaunch, its marketshare is two per cent more than KitKat's. And, the
five-year-old brand is now almost as big as the decades-old 5 Star in size, both in
the region of Rs 50-55 crore.
HEROES
Packaging innovation has played a vital role in revamping of various Cadbury's
brands. Heroes brand is simply a multi-pack with miniatures of all its most popular
brands in a single outer case.
NEW PRODUCT LAUNCHES
Rich Dry Fruit Collection For Gifting Festive Season
Cadbury Celebrations' Rich Dry Fruit
Collection - a range of premium chocolate gift boxes.
Available in attractive packs, the Collection caters to a premium gifting consumer
and is an ideal festive gift. It is a unique combination of the best Cadbury
chocolate and premium dry fruits and comes in four different formats each of
which is a mix of select premium dry fruits enrobed in rich Cadbury Dairy Milk
chocolate.
CADBURY'S CREATIVE LAUNCH
INTRODUCING CADBURY AS AN AFTER DINNER SWEET
One of the biggest marketing strategy followed by Cadbury in India was
introducing Cadbury as an after dinner sweet. Indians are fond of having
dessert after their dinner. Cadbury aimed at replacing the traditional sweets.
Apart from its after dinner advertisement Cadbury targeted adults rather than
children. In most of its advertisements, the brand is endorsed and advertised
by adults rather than by children even though it basically sells chocolate.
Such type of advertisements have created a very wide range of consumers
for Cadbury. Its products are not limited to children alone. Adults like the
products of Cadbury as much as children do.
Another reason for Cadbury being such a successful brand was that it aimed
at replacing the traditional sweet custom so prevalent in India. Indians have
the habit of carrying sweets as gifts when they visit a friend or relatives.
Cadbury items became the new sweets. It was not only considered better but
also superior to carry Cadbury instead of the normal sweets. Cadbury also
aimed at selling in bulk during festive seasons such as diwali and rakhi.
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CHAPTER 3
THEORATICAL VIEW
SWOT ANALYSIS
STRENGTH
Very strong brand equity in India.
Due to its 54 years presence in India – has deep penetration – 2100
The top tier of the pyramid consists of the br and core. Brand core
Family brand names:The parent brand is also known as an
opportunities forbrand stretchingandbrand extensions. A br and extensionopportunities forbrand stretchingandbrand extensions. A br and extensionopportunities forbrand stretchingandbrand extensions. A br and extension
A brand pyramid can help manager s plan and analyse a brand’s identity. The top tier of the pyramid consists of the br and core.
Brand core
Closely related to these values is thebrand proposition: the promiseClosely related to these values is thebrand proposition: the promiseClosely related to these values is thebrand proposition: the promiseClosely related to these values is thebrand proposition: the promise
The top tier of the pyramid consists of the br and core.Brand corehttp://www.cadburyindia.com/home/index.aspThe top tier of the pyramid consists of the br and