Cadbury & New Product Devlopment

SUBMITTED TO: MISS. SONALI PUNJ

SUBMITTED BY: MUKESH VERMA BBA-MBA (INT.) SEC. A R346A29

CONTENTS 1

Acknowledgement

4

Introduction to Cadbury

5

Mission

6

Vision

6

Profile of the Company

8

Overview of the Cadbury

9

Cadbury Worldwide

11

Brand Building of Cadbury Dairy Milk

12

Cadbury collaborate and work as a team to convert products into Brands

14

Other more Brands

15

Different Product of Cadbury

20

Quality Assurance of Cadbury

21

Environment, Health & Safety Policy

22

4P’s of Cadbury

23

Awards & Achievements

24

Advertisement of Cadbury

26

News Related to Cadbury

28

Future Growth of drivers

31

SWOT of Cadbury

32

New Product Suggested By Me for the Cadbury

34

Executive summary

34

2

Cadbury Caffine Chill

35

STP of Cadbury Caffine Chill

36

•

Segmenting

•

Targeting

•

Positioning

PLC of Cadbury Caffine Chill

37

Marketing Strategies of Cadbury Caffine Chill

38

4P’s of Cadbury Caffine Chill in PLC

39

1. Introduction 2. Growth 3. Marturity 4. Decline 5M’s of Cadbury Caffine Chill

41

Advertisement for Cadbury Caffine Chill

44

Conclusion

45

3

Success is an amalgam of dedication. Hard work and able guidance of people around us”

I am indebted to my teachers and gurus who molded at this junction of my career from where I can take off better in the competitive scenario of today’s world . Working on this project has been a great pleasure & a stimulating experience. Firstly I would like to express our deep gratitude to God all mighty for his blessings, which provided me strength & patience to complete my term paper. I would also like to convey my thanks to Mr. Bill Gates who have developed the Ms Office without his contribution we would not able to make this type of attractive & in a printed way. I would also like to thanks my friends who helped me in all possible ways. I am also thankful to MISS. SONALI PUNJ Who provided me needed information about their department and guided my term in the right direction.

MUKESH VERMA (SIGNATURE)

4

INTRODUCTION TO CADBURY

GEORGE CADBURY FOUNDER OF THE TRUST 1839 – 1922

Cadbury is a leading global confectionery company with an outstanding portfolio of chocolate, gum and candy brands. We create brands people love - brands like Cadbury, Trident and Halls. Our heritage starts 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 programme 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. 5

MISSION To create and sustain flourishing communities where people choose to live. •

By promoting new social housing of good quality which enhances the environment.

•

By managing housing stock and estates to the highest standard for all residents.

•

By encouraging residents to share in decisions affecting their communities.

VISION. •

Promotion of brands carrying mass franchise without compromise on quality or margins.

•

Increasing the market depth including rural India’s coverage. (so far in case of chocolates, rural areas are not covered)

•

Better product quality and packaging.

•

All round efficient utilisation of tangible as well as intangible assets such as brands and people.

•

Efficient working capital management

•

Depreciation charge to meet the CAPEX needs every year.

•

Surplus cash so generated to be either gainfully and meaningfully reinvested in business or return to stakeholders.

6

CADBURY VALUES

We are performance driven, values led. Throughout changing times, our constant values have inspired us to be pioneers in business and in corporate responsibility. They help ensure we are proud of our company and are critical to our core purpose of creating brands people love. Performance We are passionate about winning. We compete in a tough but fair way. We are ambitious, hardworking and make the most of our abilities. We are prepared to take risks and act with speed. Quality We put quality and safety at the heart of all of our activities - our products, our people, our partnerships

and

our

performance.

Respect We genuinely care for our business and our colleagues. We listen, understand and respond. We are open, friendly and welcoming. We embrace new ideas and diverse customs and cultures. Integrity We always strive to do the right thing. Honesty, openness and being straightforward characterise the way we do business. We have clear principles and do what we say we will do. Responsibility We take accountability for our social, economic and environmental impact. In this way we aim to make our business, our partners and our communities better for the future. Our Business Principles are our code of conduct and also take account of global and local cultural and legal standards. They confirm our commitment to the highest standards of ethics and business conduct. Core purpose and vision section: Core purpose: Our core purpose is creating brands people love. The core purpose captures the spirit of what we are trying to achieve as a business.

7

PROFILE OF CADBURY

Type

Confectionery

Founder

George Cadbury

Current owner

Cadbury plc

Country of origin

United Kingdom

Introduced 1905 Related brands

Cadbury products

Markets World Website

www.cadbury.co.uk

8

COMPANY OVERVIEW Cadbury is a leading global confectionery company with an outstanding portfolio of chocolate, gum and candy brands. We employ around 50,000 people and have direct operations in over 60 countries,

selling

our

products

in

almost

9

every

country

around

the

world.

In India, 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.

Our core purpose "creating brands people love" captures the spirit of what we are trying to achieve as a business. We collaborate and work as teams to convert products into brands. Simply put,

we

spread

happiness!

Currently Cadbury India operates in four categories viz. Chocolate Confectionery, Milk Food 10

Drinks, Candy and Gum category. In the Chocolate Confectionery business, Cadbury has maintained its undisputed leadership over the years. Some of the key brands 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 flagship 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 advises 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, we are poised in our leap towards quantum growth. We are a part of the Cadbury PLC, world's leading Confectionery Company. Yes, like we said we will continue to spread happiness! CADBURY WORLDWIDE We are currently the world's biggest confectionery company with a number one or number two position in 20 of the 50 largest confectionery markets across the globe. We create chocolate, gum and candy brands people love - brands like Cadbury, Trident and Halls.

Our heritage starts 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 programme 11

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. A few facts and figures •

We make and sell three kinds of confectionery: chocolate, gum and candy

•

We operate in over 60 countriesJohn Cadbury opened for business in 1824 - making us nearly 200 years young

•

We work with around 35,000 direct and indirect suppliers

•

We employ around 50,000 people

•

Every day millions of people around he world enjoy our brands

•

23 June 2008

12

BRAND BUILDING OF CADBURY DAIRY MILK

The story of Cadbury Dairy Milk started way back in 1905 at Bournville, U.K., but the journey with chocolate lovers in India began in 1948. The pure taste of Cadbury Dairy Milk is the taste most Indians crave for when they think of Cadbury Dairy Milk. The variants Fruit & Nut, Crackle and Roast Almond, combine the classic taste of Cadbury Dairy Milk with a variety of ingredients and are very popular amongst teens & adults.

Recently,

Cadbury Dairy Milk Desserts was launched, specifically to cater to the urge for 'something sweet' after meals. Cadbury Dairy Milk has exciting products on offer - Cadbury Dairy Milk Wowie, chocolate with Disney characters embossed in it, and Cadbury Dairy Milk 2 in 1, a delightful combination of milk chocolate and white chocolate. Giving consumers an exciting reason to keep coming back into the fun filled world of Cadbury. Cadbury Dairy Milk has been the market leader in the chocolate category for years. And has participated and been a part of every Indian's moments of happiness, joy and celebration. Today, Cadbury Dairy Milk alone holds 30% value share of the Indian chocolate market. In the early 90's, chocolates were seen as 'meant for kids', usually a reward or a bribe for children. In the Mid 90's the category was re-defined by the very popular `Real Taste of Life' campaign, shifting the focus from `just for kids' to the `kid in all of us'. It appealed to the child in every adult. And Cadbury Dairy Milk became the perfect expression of 'spontaneity' and 'shared good feelings'.

13

The 'Real Taste of Life' campaign had many memorable executions, which people still fondly remember. However, the one with the "girl dancing on the cricket field" has remained etched in everyone's memory, as the most spontaneous & un-inhibited expression of happiness. This campaign went on to be awarded 'The Campaign of the Century', in India at the Abby (Ad Club, Mumbai) awards. In the late 90's, to further expand the category, the focus shifted towards widening chocolate consumption amongst the masses, through the 'Khanewalon Ko Khane Ka Bahana Chahiye' campaign. This campaign built social acceptance for chocolate consumption amongst adults, by showcasing collective and shared moments. More recently, the 'Kuch Meetha Ho Jaaye' campaign associated Cadbury Dairy Milk with celebratory occasions and the phrase "Pappu Pass Ho Gaya" became part of street language. It has been adopted by consumers and today is used extensively to express joy in a moment of achievement / success. The interactive campaign for "Pappu Pass Ho Gaya" bagged a Bronze Lion at the prestigious Cannes Advertising Festival 2006 for 'Best use of internet and new media'. The idea involved a tie-up with Reliance India Mobile service and allowed students to check their exam results using their mobile service and encouraged those who passed their examinations to celebrate with Cadbury Dairy Milk.

14

The 'Pappu Pass Ho Gaya' campaign also went on to win Silver for The Best Integrated Marketing Campaign and Gold in the Consumer Products category at the EFFIES 2006 (global benchmark for effective advertising campaigns) awards.

15

CADBURY COLLABORATE AND WORK AS TEAMS TO CONVERT PRODUCTS INTO BRANDS

16

OTHER MORE BRANDS OF CADBURY 1. CHOCOLATES

5-star. Chocolate lovers for a quarter of a century have indulged their taste buds with a Cadbury 5 Star. A leading knight in the Cadbury portfolio and the second largest after Cadbury Dairy Milk with a market share of 14%, Cadbury 5 Star moves from strength to strength every year by increasing its user base. Launched in 1969 as a bar of chocolate that was hard outside with soft caramel nougat inside, Cadbury 5 Star has re-invented itself over the years to keep satisfying the consumers taste for a high quality & different chocolate eating experience

PERK A pretty teenager; a long line, and hunger! Rings a bell? That was how Cadbury launched its new offering; Cadbury Perk in 1996. With its light chocolate and wafer construct, Cadbury Perk targeted the casual snacking space that was dominated primarily by chips & wafers. With a catchy jingle and tongue in cheek advertising, this 'anytime, anywhere' snack zoomed right into the hearts of teenagers. Raageshwari started the trend of advertising that featured mischievous, bubbly teenagers getting out of their 'stuck and hungry' situations by having a Cadbury Perk. Cadbury Perk became the new mini snack in town and its proposition "Thodi si pet pooja" went on to define its role in the category.

CELEBRATIONS Cadbury Celebrations was aimed at replacing traditional gifting options like Mithai and dryfruits during festive seasons. 17

Cadbury Celebrations is available in several assortments: An assortment of chocolates like 5 Star, Perk, Gems, Dairy Milk and Nutties and rich dry fruits enrobed in Cadbury dairy milk chocolate in 5 variants, Almond magic, raisin magic, cashew magic, nut butterscotch and caramels. The super premium Celebrations Rich Dry Fruit Collection which is a festive offering is an exotic range of chocolate covered dry fruits and nuts in various flavours and the premium dark chocolate range which is exotic dark chocolate in luscious flavours. Cadbury Celebrations has become a popular brand on occasions such as Diwali, Rakhi, Dussera puja. It is also a major success as a corporate gifting brand. The communication is based on the emotional route and the tag line says "rishte pakne do" which fits with the brand purpose of strengthening your relationships with something sweet.

TEMPTATIONS

ECLAIRS

GEMS

2. SNAKS 18

Cadbury Bites

Cadbury Bytes was launched in 2004-05 as Cadbury's foray into the rapidly growing packaged snack market. Cadbury Bytes is positioned as the 'only sweet snack' in the world of salty snacks. The proposition we have arrived at is "Snacking ka meetha funda", where we take a pot-shot at other snacks, by saying `Har snack namkeen nahi hota'. The product is all about breaking a cliché and teenagers identify with breaking stereotypes. The new commercials- 'Tommy' and 'Villain', talk about breaking the stereotype.

3. BEVERAGES Bournvita Cadbury was incorporated in India on July 19th, 1948 as a private limited company under the name of Cadbury-Fry (India). Cadbury Bournvita was launched during the same year. It is among the oldest brands in the Malt Based Food / Malt Food category with a rich heritage and has always been known to provide the best nutrition to aid growth and all round development. Throughout it's history, Cadbury Bournvita has continuously re-invented itself in terms of product, packaging, promotion & distribution. The Cadbury lineage and rich brand heritage has helped the brand maintain its leadership position and image over the last 50 years.

4. C

ANDY 19

HALLS Halls accounts for 50% of international cough drop sales and is the leading sugar confectionery brand in the world. In 1930’s, the Hall brothers invented its Mentho-Lyptus formula, using a combination of menthol and eucalyptus, and began producing cough drops. The cough drops were introduced into the US during the mid-1950s. WarnerLambert recognised the potential of the product and acquired Halls in 1964. In 1971, Warner Lambert began selling Halls under the Adams family, and the first national television campaign was aired in the US & the results were a resounding success.

5. GUMS Bubbaloo Cadbury India has expanded its confectionary portfolio in 2007 by foraying into the Bubble gum category with the launch of Bubbaloo Bubblegum- a successful bubblegum brand from its international portfolio. Bubbaloo is an innovative soft bubblegum with a centre filled liquid. It is filled with a high level of a great tasting fruit flavoured liquid that floods your mouth instantly. Bubaloo is currently available in two yummy flavors- Strawberry and Mixed Fruit. The communication focuses on the "fun filled liquid centre " of Bubbaloo and is anchored by “Bubba- the cat”, the international mascot for the brand Bubbaloo.

CADBURY CELEBRATION 20

21

DIFFERENT PRODUCTS OF CADBURY

22

QUALITY ASSURANCE OF CADBURY 1. Market high quality, superior value products that consistently meet our specifications and comply with local regulatory requirements, while continuously improving and exceeding our consumers’

expectations.

2. Guarantee that our customers and consumers come first by actively listening and understanding their quality and value expectations at the points of purchase and consumption. 3. Ensure that any representation of our company image, including our products and trademarks, meet approved standards, reinforce our commitment to quality and safeguard the reputation of Cadbury. 4. Maintain a “right first time” culture that consistently embraces quality and food safety, where everyone

understands

their

responsibilities

and

accountabilities.

5. Operate audited quality management systems that continually improve processes to deliver this policy

and

our

standards.

6. Assign clear management accountability for setting and meeting measurable goals and targets for

quality

and

food

safety.

7. Work with our supply chain and business partners to assure compliance with our quality policy and

systems,

ensuring

quality

throughout

our

supply

chain.

8. Place continuous improvement at the heart of our performance enabling us to deliver superior products

and

service

to

our

consumers

and

customers.

9. Create a passion for quality where success and achievement are communicated, recognised and celebrated.

23

ENVIRONMENT, HEALTH AND SAFETY POLICY At Cadbury PLC, we see sound and responsible environmental, health and safety (EHS) management as an integral part of achieving our goal to grow the value of our confectionery and beverages businesses for our shareowners. We believe that such an approach will generate and sustain significant environmental, social and financial benefits, thereby contributing to our objective of long-term sustainability. 1. Conduct our business in compliance with environmental, health and safety laws and with our global standards, and regularly assess the compliance of our operations against these requirements. 2. Maintain and continually improve systems to manage our EHS responsibilities, establishing and ensuring employee accountability for our EHS performance at all levels of the organisation. 3. Set clear targets for continual improvement in our EHS performance and monitor these targets to ensure that they are met. 4. Strive to prevent pollution and to minimise the environmental costs and impacts of our global operations. 5. Provide a safe and healthy environment for our employees, contractors and other visitors to our sites 6. Train and motivate our employees to understand their EHS responsibilities and to participate actively in our EHS programmes 7. Communicate with our shareowners, employees, customers and other interested parties by regularly reporting on our EHS performance and maintaining an open dialogue. 8. Review and update this policy regularly.

24

Cadbury 4p's 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. 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. Place Cadbury products are produced at the chocolate factory in Bourneville in Birmingham. After the chocolate is produced and has undergone all the quality checks it is transported to the stockrooms. After this Cadbury sells its products to shopsthat deal with beverages and confectionery e.g. corner shops, super stores such as Iceland, Sainsbury, Kwik save, Tesco, Asda, Safeway and petrol station. These businesses are usually visited by customers on a daily basis. They then sell it to the general public. Cadbury produces chocolate for more than 200 countries so that they have a chance to enjoy it as well and make profit. This gives them a wide range of consumers around the world. Cadbury Schweppes therefore makes sure that the cultures of these different people are kept. They can do this by producing products, which are eaten in that particular country without upsetting religious or cultural practises. Promotion Cadbury has a great brand image in the worldwide market, they focused on present dominance in the chocolates market to be maintained. Average sales to grow at least at 20% p.a. for the next 3 years, volumes by at least 12%. 1 new major product to be launched every year. Sugar conf Share in sales mix to be enhanced through value added niche products. With control over costs and reduction in relative depreciation charge for the year, steadily increase margins.

25

AWARDS & ACHIVEMENTS OF CADBURY

Asian Marketing Effectiveness Awards 08 Asian Marketing Effectiveness Awards 2008 for Bournvita Folk/Fusion campaign - GOLD award for the "Best Insights and Strategic Thinking" and SILVER award for the 'Most Effective Use of Advertising'.

No. 1 FMCG Company

Cadbury India has been ranked as the 7th Great Place to Work and the No. 1 FMCG company in India in 2008, by the Great Place to Work Institute.

Great Place to Work 2007' Cadbury India' has been awarded the "Bronze Award for Excellence in People Management" in the 'Great Place to Work 2007' survey conducted by Grow Talent Company Limited and Businessworld. The award recognizes Cadbury India as a national leader in the area of Human Resource Management.

Cadbury India roars at Cannes Cadbury India received a bronze award at the Cannes Lions International Advertising Festival for partnering with a mobile phone operator in 2005 to provide exam results via SMS to school children.

Reader's Digest Award recognizes Bournvita

26

Bournvita won the 'Reader's Digest Trusted Brands' Gold Award for the vitamin health supplement category in Indian in 2006. The merit was based on 7000 responses from questionnaires and telephone interviews across Asia.

Suraksha Puraskar Award – 2005 Cadbury India's Bangalore factory has received the "Suraksha Puraskar" safety award from the National Safety Council - Karnataka chapter.

ABBY Award wins for India. The prestigious ABBY awards, held in March, recognise creative excellence in the Indian Advertising Industry. The Ulta Perk campaign won four Silver Awards in total and the Cadbury Dairy Milk Campaign, Miss Palampur, also won a Silver Award. This year Cadbury also sponsored the new 'Young ABBY' Award.

Cadbury wins the Effies 2006 At the recent Effie 2006 awards organized by The Advertising Club of Mumbai, our 'Pappu Pass Ho Gaya' advertising campaign bagged two more awards - Gold in the Consumer Products category and Silver in the Integrated advertising campaign category.

ADVERTISEMENTS OF CADBURY

27

Dairy Milk has always tried to keep a strong association with milk, with slogans such as "a glass and a half of full cream milk in every half pound" and advertisements that feature a glass of milk pouring out and forming the bar.

A campaign for the Fruit & Nut variety ("everyone's a fruit and nutcase") was particularly memorable and featured the writer, radio and television personality Frank Muir. On 9 March 1976, American singer Neil Diamond performed a concert televised throughout Australia during which he did a humorous live commercial for Dairy Milk. This concert, including the ad as a bonus selection, was released on DVD on 1 July 2008. In 2004, Cadbury's started a series of television advertisements in the United Kingdom and Ireland featuring a person and an animal representing the person's happiness debating whether to eat one of a range of bars including Dairy Milk. 28

In 2005, Cadbury's original Dairy Milk bar celebrated its 100th birthday, being first sold in 1905. It remains the UK's biggest selling chocolate brand. Dairy Milk is sold in the United States under the Cadbury label, but it is manufactured by the Hershey's company in Pennsylvania. In 2007, Cadbury's launched a new advertising campaign entitled Gorilla, from a new in-house production company called "Glass And A Half Full Productions" . The advert was premièred during the season finale of Big Brother 2007, and consists of a gorilla at a drum kit, drumming along to the Phil Collins song "In The Air Tonight". It is supposed to relate the joy of playing drums to that of eating a chocolate bar. The advert has now become extremely popular with over two million views on Youtube, and has put the Phil Collins hit back into the UK charts. On 28 March 2008, the second Dairy Milk advert produced by Glass and a Half Full Productions aired. It features several trucks at night on an empty runway at a Mexican airport racing to the tune of Queen's "Don't Stop Me Now". The ad campaign ran at the same time as the problems at Heathrow Terminal 5 with baggage handling; in the advert baggage was scattered across the runway. On 5 September 2008, the Gorilla advert was relaunched with a new soundtrack – Bonnie Tyler's "Total Eclipse of the Heart" – a reference to online mash-ups of the commercial. Similarly, a version of the truck advert appeared, using Bon Jovi's song "Livin' on a Prayer".

29

News Related to Cadbury 1. Cadburys relaunches Bournville chocolates news 15 October, 2008

Bournville, a much neglected dark chocolate bar from Cadburys' has been relaunched as a new category

of

dark

chocolates

in

India.

"Dark chocolate is one of the fastest growing categories abroad. However, in India, it is still in a nascent stage. Thus, we are almost doing category creation with this launch," said Sanjay Purohit , executive director- marketing and international business, Cadbury India 2. Festive campaigns by Coca Cola and Cadburys news 03 October 2008

Coca Cola has launched a special festive season communication drive of its carbonated drink brand Thums Up. While the "Taste the Thunder" TV commercial features Akshay Kumar performing acts like mountaineering and roller coaster ride, the company is also launching a similar initiative for the market in southern states featuring Tollywood star Mahesh Babu. The initiative comes as a follow-up to the company's announcement of venturing into the 350 ml pack segment of all its major brands. 3. Cadbury and Tamil Nadu Agricultural University join hands for cocoa research project news 30 May 2008

Mumbai: Cadbury Asia Pacific, the Asian arm of UK confectionery giant Cadbury Plc, has recalled 11 types of its Chinese-made chocolate as a precaution, the Hong Kong government said in a statement. In a statement, issued from its Singapore office, Cadbury said it has recalled 11 chocolate products as tests ''cast doubt on the integrity of a range of our products manufactured in China.'' The products were meant for distribution in Taiwan, Hong Kong and Australia, its said.

30

Tests ''cast doubt on the integrity of a range of our products manufactured in China,'' Cadbury said in the statement issued from its office in Singapore. 4. Cadbury, others recall China-made confectionery news 29 September 2008

Mumbai: Cadbury Asia Pacific, the Asian arm of UK confectionery giant Cadbury Plc, has recalled 11 types of its Chinese-made chocolate as a precaution, the Hong Kong government said in a statement. In a statement, issued from its Singapore office, Cadbury said it has recalled 11 chocolate products as tests ''cast doubt on the integrity of a range of our products manufactured in China.'' 5. Worm turns for Cadburynews Mohini Bhatnagar 28 November 2003

Hyderabad: The worms in the chocolate bars controversy has hit Cadbury India where it hurts most and that is in sales. The company today faces tough times ahead as the business environment for its chocolates becomes increasingly negative with rising raw material prices and low consumer sentiments, post the worms controversy in October this year. 6. Cadbury India net profit at Rs 190 million news 13 July 2002

Mumbai: Cadbury India Ltd has posted a net profit of Rs 190 million for the quarter ended 16 June 2002 as compared to Rs 93.60 million for the quarter ended 17 June 2001. The total income has increased from Rs 1,206.80 million for JQ01 to Rs 1,363.40 million for JQ02. The other income for the current quarter is at Rs 127.70 million (corresponding quarter last fiscal: Rs 21.90 million) out of which Rs 107.70 million is on account of the profit on sale of excess immovable property at Thane, Maharashtra. 7. Cadbury follows small packs strategynews 15 August 1999

Small has indeed proved to be beautiful for Cadbury. The company, after finding exceptional success in the launch of small packs of Perk chocolate, has now launched Picnic in small packs of 26 gms priced at Rs 10. The 43-gm packs are still available and are priced at Rs 15.

31

Cadbury has embarked on a strategy which involves increased consumption of its products through enhanced reach, affordability and visibility, which it feels can be attained by creating new markets, widening the depth of its distribution network and working towards a comprehensive portfolio with brands across all price segments. On the distribution front, the company aims to increase the number of its distribution outlets from the present 4 lakh to 5 lakh by the year 2000. 8. Cadbury to buy out Indian subsidiary news

Our Corporate Bureau 09 November

2001 Mumbai: In a brief statement issued to the London Stock Exchange, the British confectionery and soft drinks group Cadbury Schweppes has announced its intention to pick up 100 per cent stake in its Indian subsidiary, Cadbury India, at a price not exceeding Rs 500 per share. 9. LIC sells Cadbury (I) stake to Schweppes news Pradeep Rane 04 April 2002

Mumbai: The Life Insurance Corporation of India (LIC) has sold its 5.75-per cent stake in Cadbury India Ltd to Cadbury Schweppes Plc. LIC sold 20,56,448 equity shares of Rs 10 each at Rs 500 per share to Cadbury Schweppes. 10. Cadbury''s revitalisesnews Cadbury''s India has revamped its hea 11 March 1999

Cadbury's India has revamped its health drink and chocolate marketing strategy. The company recently relaunched Bournvita -- a chocolate drink. The relaunch involved a complete overhaul of the Bournvita's packaging with the addition of some ingredients to the beverage, accompanied by an

audio-visual

media

campaign.

Bournvita sales had been adversely affected following the entry of Nestle's Milo and the growing popularity of SmithKline Beecham's Horlicks and Boost. Horlicks, Boost and Milo have upset the Cadbury's drinks-cart.

32

FUTURE GROWTH DRIVERS. •

Present dominance in the chocolates market to be maintained.

•

Average sales to grow at least at 20% p.a. for the next 3 years, volumes by at least 12%

•

1 new major product to be launched every year.

•

With control over costs and reduction in relative depreciation charge for the year, steadily increase margins.

33

CADBURY SWOT

Strengths •

Cadbury is the largest global confectionery supplier, with 9.9% of global market share.

•

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

•

Advantage that it is totally focused on chocolate, candy, chewing gum, unique understanding of consumer in these segments.

Weaknesses •

The company is dependent on the confectionery and beverage market, whereas other competitors e.g. Nestle have a more diverse product portfolio, where profits can be used to invest in other areas of the business and R&D.

•

Other competitors have greater international experience - Cadbury has traditionally been strong in Europe. New to the US, possible lack of understanding of the new emerging markets compared to competitors.

Threats •

Worldwide - there is an increasingly demanding cost environment, particularly for energy, transport, packaging and sugar. Global supply chain in low cost locations.

•

Competitive pressures from other branded suppliers (national and global). Aggressive price and promotion activity by competitors - possible price wars in developed markets.

•

Social changes - Rising obesity and consumers obsession with calories counting. Nutrition and healthier lifestyles affecting demand for core Cadbury products.

34

Opportunities •

New markets. Significant opportunities exist to expand into the emerging markets of China, Russia, India, where populations are growing, consumer wealth is increasing and demand for confectionery products is increasing.

•

The confectionery market is characterized by a high degree of merger and acquisition activity in recent years. Opportunities exist to increase share through targeted acquisitions.

•

Key to survival within the FMCG market is increasing efficiency and reducing costs. Cadbury Fuel for Growth and cost efficiency programmes seek to bring cost savings by: 1) Moving production to low cost countries, where raw materials and labour is cheaper ii) reduce internal costs - supply chain efficiency, global sourcing and procurement, and wise investment in R&D.

•

Innovation is key driver. To respond to changes in consumer tastes and preferences healthier snacks with lower calories need to be developed. R&D and product launches have led to sugar-free & center filled chewing gum varieties and Cadbury premium indulgence treat. Low-fat, organic and natural confectionery demand appears strong.

•

had an excellent double digit volume growth

•

"Bournvita" didn’t have major volume growth. (but of late it is favourably growing)

Sugar confy. had static growth with larger share of "Eclairs" (with 33% price increase effected

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PRODUCT SUGGESTED BY ME FOR THE CADBURY

EXECUTIVE SUMMARY I have made my marketing term paper on my company Cadbury to launch its new product. I would suggest to Cadbury to launch the cold coffee. In the entire term paper I have tried to cover all the major topics related to Cadbury. The main topics that I have covered for launching of cold coffee. Beginning with the brief introduction of the Cadbury then the new product development process for the Caffine Chill. After the accomplishment of the product development i.e. Caffine Chill and commercializing it; the next before me was to decide the segment and the target market and the strategies for the positioning of the Caffine Chill. The marketing mix of Caffine Chill was decided under the various stages of product life cycle. This was done in advanced so as to e prepared for the tough competition in market. Next was the advertisement and selling of the product and the last was to make a distribution channel of network for the effective selling of Caffine Chill in the market. The last is the conclusion of my term paper so as to get a brief idea of the product and the marketing strategies for it. I have now concluded my executive summary for my product the Caffine Chill.

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I have made my company cadbury for my marketing term paper. The company deals with manufacturing chocolate and confectionary. The product whose marketing strategies I am going to mentioned is the all new Caffine Chill (cold coffee). The new Caffine Chill will consist of with chocolate & other flavors. The Introductory price of this set will be Rs 18. With tough competition in the market by Amul Kool Café the marketing strategies of Caffine Chill should be such that the customers are attracted towards it. Let us study the marketing strategies of Caffine Chill.

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NEW PRODUCT DEVELOPMENT PROCESS This was the most challenging stage before me; developing the Caffine Chill cold coffee. The idea generation and screening of Caffine Chill was done by me by seeing only single competitor (i.e. Amul) in the market. The main objective was to cover the market and give competition to Amul. A positive response came up and I decided to launch Caffine Chill. The entire business plan of Caffine Chill and after approval of the same the product Caffine Chill was finally developed. Then the cold coffee will launched in the test market and Delhi was chosen as its test market. The product will get a very good response from the consumers their and they were liking it. The success of Caffine Chill in the test market will give me a green signal to launch the product at a large scale and finally commercialize Caffine Chill. Segmenting – The segmenting of Caffine Chill will be done both on the basis of occupation as well as the age group of the consumers in the market. On the basis of occupation is for the segment of all urban & semi urban consumers. On the basis of age group who likes to take coffee is for the consumers in the age group of 16-35. This is how the segmentation of Caffine Chill will be done. Targeting – The new Caffine Chill will target mainly on the youth that are in the segments of the occupation and in the age group. As today the youths are mainly attracted towards the coffee and they like to drink coffee rather than tea or cold drinkvand they are ready to spend money on it, therefore the Caffine Chill will target the youths in the given segments of their market. Positioning – The positioning of Caffine Chill will be done mainly by advertisements by our brand ambassador the superstar Hritik Roshan where the consumer can see him drinking Caffine Chill and big hoardings of the cold coffee will be put up in major cities, By these ways the positioning of Caffine Chill will be done. Therefore these will be the STP of the all new Caffine Chill so as to make it a success in the market.

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The next step was to prepare the Caffine Chill and that too for various stages of Product Life Cycle of Caffine Chill. To get ready for the competition in the market a marketing mix for different stages was made so as to get ready if the situation changes for Caffine Chill in future.

Product Life Cycle A concept that provides a way to trace the stages of a product’s acceptance, from its introduction (birth) to its decline (death). The PLC of a product have 4 stages:1. The Introduction Stage 2. The Growth Stage 3. The Maturity Stage 4. The Decline Stage

These four stages of PLC can be understood with the help of the graph given below:-

Let us see the marketing mix or the strategies during different stages of Product Life Cycle of Caffine Chill. 39

Marketing Strategy of Caffine Chill during the:1. Introduction Stage – In this stage the Sales are low as the new idea/product is first

introduced to the market. Customers may not be aware of the product’s benefits and features and may not be aware of the product itself. The 4p strategy during this stage are: Product – The Caffine Chill cold coffee Price – The introductory price of Caffine Chill will be Rs 18 as the Caffine Chill has less no. of competitors and good company image therefore it will quickly recover the cost of production of the model as well as to gain the promotion cost the cold coffee will be bit costly so as to gain more and more possible revenues and profit from it. Place – The mobile Caffine Chill will be available at near to the institutional areas, collages, working places & public palces. as well as in collages canteens. The Caffine Chill will be launched in the metro cities of the countries so as to see its output and consumer satisfaction towards the cold coffee. After gaining the success in the metro cities the mobile cities will be available in all the major cities of the country.. Promotion – The promotion of the Caffine Chill will be done at a very large scale during its introduction. My company will spend a large sum of money in its promotion so as to give it a grand launch. Advertisements by celebrities on television, putting up big hoardings in the major cities. 2. Growth Stage – In this stage there is a rapid growth in sales and profits, more product

awareness, competitors see the opportunity and enter the market. Some competitors will copy the product or may try to make it better or more appealing to other target markets. The new entries result in more product variety. Promotion is aimed at a broader audience and more distribution channels are established. Product – The cold coffee will contain the features as in the introduction stage and few more new flavors like chocolate and other different tastes and change in packaging available in different canes, etc will be done. This will be done so as to compete with the competitors that have entered the market and will try to publicize their product more. Therefore a minor change in its look will be done in the growth stage.

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Price – The price of Caffine Chill will be less in this stage as compared with the introduction stage. This is done as the Caffine Chill have collected the set revenues and is now in its profit stage. The competitors will also try to set low prices of their cold coffee with same features as the Cadbury have so to compete with them the price if Caffine Chill will be set a bit low in its growth stage. Place – Caffine Chill will be available in all the more cities of the country as the mobile is in its growth stage and is a success in the metro cities, so the company will make the cold coffee to be available in all the more cities. Cadbury will be established in the maximum possible cities and cold coffee will also be available with all the more cities. Promotion – The promotion of Caffine Chill will be more by advertisements on televisions will be continued but the display of hoardings and other promotion strategies will not continue so as to spend less cost on the promotion of product as the consumer is now very much aware about the product and the market has accepted the product. Therefore not much promotion will be done only advertisements in televisions and newspapers will be given from time to time in its growth stage. 3. Maturity Stage – This is the Most common stage in the cycle where the sales begin to

level off. The competition gets tougher as more competitors have entered the market and Increased competition creates a downward movement in prices. The Industry profits are largest, but it is also when industry profits begin to decline and the Promotion is targeted to create brand differentiation. Product – No further changes will be done in Caffine Chill due to the tough competition in the market. The cold coffee will be same as it was in the growth stage as the flavor has been liked a lot by the consumers with that same features, therefore no changes will be done in flavor by the company. Price – Price of the Caffine Chill will be set less as compared to that in the growth and maturity stage. These prices are reduced due to the increasing competition in the market and entry of other new products by the competitors. The product have entered into its maturity stage so my company will have no problem in reducing its prices as Caffine Chill have already collected all

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the revenues and at present is in its maximum possible profit earning stage. So the price of the cold coffee will be reduced and set according to the competitors in the market. Place – No major changes will be done in the place of distribution and selling of Caffine Chill. The place will remain the same as it was in the growth stage. The company will try to enter into the remote locations with limited stocks at reduced price so as to gain more market in small locations. This will be only change that will be done in its place strategy in the maturity stage. Promotion – The Company will spend less cost on its promotion strategy as Caffine Chill have now captured and made its own market. The promotion will mainly emphasize on the Brand Cadbury on which the customers have trusted so much and the brand is successful in satisfying their needs. Promotion will mainly focus on brand differentiation. 4. Decline Stage – In this stage Sales continue to decline and new products replace the old.

Firms will often try to use extension strategies. Companies may be able to keep some sales by appealing to their most loyal customers. Product – Caffine Chill will be available in the market with same features, no major changes will be made as the model have entered into its decline stage. The company will made other flavor to give the competition to the competitors but changes will be made in Caffine Chill in its decline stage. Price – The price of the Caffine Chill will be lowest in this stage as the competitors have made new flavor so the prices of Caffine Chill will be reduced and at this stage it will target will try to make its market in that segment by reducing its prices. Place – The Caffine Chill will now be available at more and more remote locations. as the prices have been reduced and to sale more and more stock the company will made the Caffine Chill available at every possible remote locations. Promotion – The Company will increase the promotion strategy of Caffine Chill a little more by giving schemes and increasing its advertisements on television and newspapers in order to increase its sales a little bit and to regain its lost market. Therefore these are the marketing strategies that I will adopt during different stages of Product Life Cycle of my company Cadbury Caffine Chill and will try to make it a success in this tough competitive market. 42

After the marketing mix was prepared the next task for me was the entire promotional and advertisement plan of Caffine Chill so as to attract maximum consumers from the target market. Here I present the promotional plan of Caffine Chill. The promotional plan made will be on the 5M basis i.e. Mission, Money, Message, Media and Measurement.

Mission The Mission of my company behind this promotional plan is to cover maximum target market in its introduction stage so as to get maximum returns. This will benefit the organization the most and will help in fulfilling the organization goals. The mission is also to give a strong competition to the major players in the same cold coffee segment. This will help the Caffine Chill to get more and more profit in its growth stage. The main mission is to give a strong competition to other cold coffees and to make sure that Caffine Chill is a success in its Introduction stage and is popular among its target market i.e. youth.

Money Money is the most important part of the promotional plan. The budget decided for the promotion of Caffine Chill is Rs 10 crores. The promotion and all the advertisement of Caffine Chill will be done in this budget only. The advertisement design of the Caffine Chill will be done under the budget of Rs 2 crores. The brand ambassador of the Caffine Chill Mr Hritik Roshan will be seeing endorsing the mobile phone. He has charged Rs 5 crores for it. The total money that will be spend on the promotion of Caffine Chill will be Rs 20 crores. The company will make sure that this sum of money can be make recover as soon as possible so that the company can earn profit from Caffine Chill. This is the budgeted amount that will be spent of the promotion of the mobile including the miscellaneous expenditures and no extra amount will be spent on Caffine Chill. By this way the money will be spent on the promotion of Caffine Chill.

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Message The message behind the promotional plan of the Caffine Chill is that it is the all new cold coffee price and will be very popular among the youth and the coffee lovers. This is the main message that will be conveyed to the segment market via promotions.

Media This is the most important part of the promotional plan. The media plays a very important role in the promotion of the products. The advertisement of Caffine Chill will be shown on all major channels which will be done mainly by our brand ambassador the superstar Hritik Roshan where the consumer can see him ddirnking Caffine Chill. Print media will also play a major role in the advertisement of Caffine Chill and the printed on all the major newspapers and magazines and big hoardings of the Caffine Chill will be put up in major cities. Small Caffine Chill truck will be there in major cities and the free distribution of Caffine Chill canes where the customers can taste the Caffine Chill. This is how the advertisement of the Caffine Chill will be done through television and print media and the maximum of the budgeted amount of the money will be spend on the media as it has the power to attract maximum customers in a small time span and it is very effective also.

Measurement The last part of the promotional plan will study that how much was the entire promotion was successful in reaching to the maximum audience or the market segment. The response of the audience and if the promotion was not a success then the measurement will study the drawbacks and will correct the mistakes of the previous promotions and will launch it again in the market. The main objective of this part of the promotion plan is to make sure that everything is going as per planned and to make corrections if any and then to improve the promotion so as to accomplish the mission of the promotional plan. Therefore by these ways I will plan the promotional plan for Caffine Chill and will try my best to achieve the goal of my organization 44

and to earn maximum profit and will try to get maximum customer satisfaction and will make sure that it brand Cadbury gives a tough competition to other major players in the market and creates a goodwill in the market through its new product the Caffine Chill. The advertisement design of Caffine Chill was also made by my designing department so as to advertise the product through print media and made it more special for the consumers. Below is the advertisement design of Caffine Chill that will be used during its promotion.

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ADVERTISEMENT OF CADBURY CAFFINE CHILL BY PRINT MEDIA

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CONCLUSION The name of my Product is Caffine Chill cold coffeee. Its cost is Rs18 and it targets the youths of the country. The product is at present at the growth stage of its product life cycle. The Brand ambassador of Caffine Chill is the Bollywood superstar Hritik Roshan. The distribution channel and selling is done through the product is enjoying lots of profit these days. The different channels advertisement and the promotion plan of the product will be done on its peak so as to get more and more consumers from the target market. The marketing department of the company will keep an eye on all the happenings and will change the marketing strategies as according to the marketing conditions. For the launching of my product for the first time this will be the entire marketing plan for Caffine Chill. Thank you !

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