Cadbury -5star

PROJECT ON ADVERTISING RESEARCH   STUDY OF CADBURY 5 STAR CHOCOLATE

About the Company   

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Cadbury started in 1824 when John Cadbury opened a shop in Birmingham selling cocoa and chocolate. Cadbury today is a leading global confectionery company with an outstanding portfolio of chocolate, gum and candy brands. On 7 May 2008, the separation of Cadbury confectionery and Americas Beverages businesses was completed creating Cadbury plc with a vision to be the world's BIGGEST and BEST confectionery company.

Corporate History 

In 1831, John started manufacturing drinking chocolate and cocoa, laying the foundations of the Cadbury business as it is known today.

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In 1969 Cadbury merged with Schweppes – the owner of the world famous Schweppes Indian tonic water – to create Cadbury Schweppes.

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These two great household names merged in 1969 to form Cadbury Schweppes plc. Since then they have expanded their business

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In 2000 Cadbury acquired Hollywood, a leading French chewing gum and confectionery brand.

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In 2003 for $4.2 billion (£2.7m), making Cadbury the leading worldwide confectionery company and the world’s number 2 in chewing gum.

World Presence 

Australia, Belgium, Brazil, Canada, Denmark, Egypt, France, Greece,

India, Japan, Mexico, Netherlands, New Zealand, Norway, Nigeria, Poland, Singapore, South Africa, Sweden, Switzerland, Turkey, UK,USA

Facts and Figures 

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John Cadbury opened for business in 1824 - making Cadbury nearly 200 years young Cadbury makes and sell three kinds of confectionery: chocolate, gum and candy They operate in over 60 countries They work with around 35,000 direct and indirect suppliers They employ around 50,000 people Worlds No 1 Confectionery company World's No 2 Gums company World's No 3 beverage company

Cadbury India 

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In India, Cadbury began its operations in 1948 by importing chocolates. Cadbury India operates in four categories viz. Chocolate Confectionery, Milk Food Drinks, Candy and Gum category. Cadbury enjoys a value market share of over 70% - the highest Cadbury brand share in the world! Since 1965 Cadbury has also pioneered the development of cocoa cultivation in India.

Cadbury in India 

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Today Cadbury has five company-owned manufacturing facilities in India and they are Thane Induri (Pune) Malanpur (Gwalior) Bangalore and Baddi (Himachal Pradesh) 4 sales offices New Delhi, Mumbai, Kolkata and Chennai Corporate office is in Mumbai.

Board of Directors              

C Y Pal - Chairman Matthew Cadbury - Managing Director Rajiv Wahi - Vice Chairman Jaithirth Rao - Director S N Talwar - Director Rajeev Bakshi - Director Harsh Mariwala - Director N V Iyer - Director David Kappler - Director B Puri - Executive Director P Chhaya - Executive Director J Strydom - Executive Director G Sridhar - Executive Director G M Bhat - Executive Director

Products Handled 

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International brands are : Schweppes, Trident, Dr Pepper, Snapple, Trebor, Dentyne, Bubblicious and Bassett Indian brands are: Dairy Milk ,5Star, Perk, Temptation, Celebrations, Éclairs, Gems, Bytes Bourn vita, Halls, Bubbaloo

Product Personality of 5Star 

PEOPLE: Universal 5 Star is for “Mass” not just for “Classes”

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USP: USP of 5 Star is its TASTE. 5 Star contains hard outside with soft caramel nougat inside, available with a dash of rice crispies, Nougat ,Caramel , apricot almonds, raisins, cocoa, cashew nuts.

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5 Star was launched in 1969 as Cadbury 5 Star has re launched itself over the years to keep satisfying the consumers taste for a high quality & different chocolate eating experience.

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One of the key properties that Cadbury 5 Star was associated with was its classic Gold colour.

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5 Star is leading knight in the Cadbury portfolio.

Product Personality of 5Star 

Its is the second largest after Cadbury Dairy Milk with a market share of 14%

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Cadbury 5 Star moves from strength to strength every year by increasing its user base.

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Cadbury 5 Star was always unique because of its format and any communication highlighting this uniqueness, went down well with the audiences

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From 'deliciously rich, you'd hate to share it' in the 70's, to the 'lingering taste of togetherness' & 'Soft and Chewy 5 Star' in the late 80's, the communication always paid homage to the product format.

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More recently, to give consumers another reason to come into the Cadbury 5 Star fold, Cadbury 5 Star Crunchy was launched. The same delicious Cadbury 5 Star was now available with a dash of rice crispies.

Product Analysis 

5 Star – Ingredients,weight and the price Nougat + Caramel 63%, liquid glucose, sugar, hydrogenated vegetable oils, milk solids, cocoa solids, invert sugar, soya solids, salt, emulsifiers (E471), edible gum (412) and acidity regulator(526), Milk chocolate 37%, sugar, cocoa butter, milk solids, cocoa solids, emulsifier (E442,E476)

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30gm Rs.10

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Product Analysis-5-Star Crunchy 

Crunchy-Ingredients, weight and the price Nougat + Caramel + Crème 67%, liquid glucose, sugar, hydrogenated vegetable oils, rice crispiest 7%, corn flakes 4%, milk solids, cocoa solids, cocoa butter, wheat flour, edible vegetable oils, invert sugar, emulsifiers ( E 442, E 476, E 322), soya solids, starch, salt, stabilizers (412,407), acidity regulators (526) and caramel (150c),Milk Chocolate 33%, sugar, cocoa butter , milk solids, cocoa solids, emulsifiers ( E 442, E 476)

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30gms Rs.12

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Product Analysis-5-Star Fruit & Nut 

Fruit & Nut-Ingredients, weight and the price Nougat + Caramel + Crème 66%, liquid glucose, sugar, hydrogenated vegetable oils, apricot, Kermels 6%, milk solids, almonds 3 % , raisins 3 %, cocoa solids, invert sugar, cashew nuts, emulsifiers ( E 442, E 471, E 476), edible vegetable oils, soya solids, salt, stabilizers (412,407), acidity regulators (526), Milk Chocolate 34%, sugar, milk solids, cocoa butter , cocoa solids, emulsifiers ( E 442, E 476)

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45gms Rs.23

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Market Analysis 

PRODUCT LIFE CYCLE STAGE OF 5 STAR:

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Cadbury is in its Maturity Stage as its revenue growth was up 12% and in India it grew up by 23%.

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New add-ons are being added to keep the excitement on and to stay in the market in pace with their competitors.

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Cadbury has kept a good look on their competitors and does spends a good amount on advertisements by endorsing Brand Ambassadors for Cadbury (Amitabh Bachchan) and also coming with brand extension with new products.

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5 Star has come out of its growth stage and entered the Maturity Stage and hence we are seeing few extensions in the product (Crunchy and Fruit&Nut) to keep that product developing.

Market Analysis 

Demographics:

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Sex: for all sexes

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Age: from 5 yrs to 80 yrs

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Income: low to high

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Occupation: any sector (not necessary)

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Education: lower to higher

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Religion: for every religion

Market Analysis 

Price:

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5 Star-Rs 5, Rs 10, Rs 30

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Crunchy-Rs 12

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Fruit &Nut-Rs 23

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Place:

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A small kirana shops, big kirana shops, general stores, super markets, Panwala Shop etc.

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Packaging:

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5 Star is wrapped in 3mm foil. It is advised to store 5 Star at lower temperature around 15 degree CC.

SALES STRATERGY

Competitor’s Analysis 

Nestle Bar-One is the Biggest Competitor of Cadbury 5 Star.

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Nestlé India is a subsidiary of  Nestlé S.A. of Switzerland

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Launched in the 1970’s and still one of South Africa’s favourite snacks for the fully active individual with a demanding schedule.

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Sugar, liquid glucose, sugar, Partially hydrogenated vegetable oils, milk solids, Golden Syrup, cocoa solids, Malt extract, emulsifier (Hydrolyzed milk protein and soya lecithin) and Salt.

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18gm,100g

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Rs.5 and Rs.10

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Other Competitors are Twix, Mars & Snickers.

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Twix is a chocolate-covered cookie bar made by Mars, Inc.

Re-launching 

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We are re-launching our product because our product has crossed the maturity stage of the product life cycle. Once the product finishes its maturity level, the sales may start decreasing so in order to increase the sales by 3-5% and keep the product in touch with the competition we are re-launching the product. As India is emerging market hence we forecast sales of chocolate to grow by 8% after launching 5 Star Jelly in different flavors. Target audience will be small school going kids mostly in rural areas who will give this Rs.2 as gift to all their friends on their birthday.

5-Star Jelly Weight in gm

Price in Rs.

30 gms

Rs. 10 /-

15 gms

Rs. 5 /-

10 gms

Rs. 2 /-

Ingredients Favours Nougat + Caramel 63%, liquid glucose, sugar, hydrogenated Orange vegetable oils, milk solids, cocoa solids, invert sugar, soya solids, Mango salt, emulsifiers (E471), edible gum (412) and acidity Strawberry regulator(526), Milk chocolate 37%, sugar, cocoa butter, milk Pineapple solids, cocoa solids, emulsifier (E442,E476) + Fruit flavor + Fruit Jelly

Forecasting 

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As per the data available from Cadbury Sales Executive Mumbai region, 5-Star grew 44% in 2008 under PAN India (across India) and out of 73% share of chocolate 5-Star shares 9% Worldwide share of Cadbury chocolate was 6% Keeping last year growth we want to grow 5-Star share by 4% Launch of New Cadbury 5 Star Jelly is expected to get 1% share in PAN India to be sold at Rs.2 To keep up with the Competition, we will be distributing free samples in School & College to induce people to buy our product. To increase the consumer base we will be distributing Rs. 5/- Cadbury 5 Star Jelly with the Family Pack of 5 Star Chocolate which will help us to achieve our target