This document provides information about Cadbury, including its history and operations. It discusses how Cadbury was established in Birmingham, England in 1824 and began operations in India in 1948. It also outlines Cadbury's product categories and brands, manufacturing locations, and marketing strategies over time. Key facts presented include that Cadbury operates in chocolate, milk drinks, beverages and gum; and has popular brands like Dairy Milk, Bournville, and Celebrations.
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Cadbury a brief history
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2.
Cadbury is a British confectionery company owned by
Mondelez International.
Cadbury was established in Birmingham by John
Cadbury in 1824, who sold tea, coffee and drinking
chocolate.
Cadbury India began its operations in India on 19 July
1948 by importing chocolates.
In India Cadbury operates in four categories chocolate
confectionery, milk food drinks, beverage and candy
& gum category.
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3.
In 1824 John Cadbury opened a
shop at 93 Bull Street, Birmingham
in the 1830's.
Among other things, he sold cocoa
and drinking chocolate, which he
prepared himself using a pestle and
mortar.
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4. PRODUCT
Cadbury
India
operates
in
four
categories: chocolate confectionery, milk
food drinks, beverage and candy & gum
category.
Its products include Cadbury Dairy Milk ,
Dairy Milk Silk, Bournville, 5-Star, Perk,
Gems , Éclairs, Bournvita, Celebrations,
Cadbury Dairy Milk Shots, and Oreo.
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5.
Cadbury dairy milk is 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 it products to shops
that deal with beverages and confectionery e.g.
corner shops.
After this they sell it to the general public. Cadbury
produces chocolate for more For Academic Purpose countries.
than 200 10/2/2013
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7.
Price is one of the important factors of
marketing mix, which determines whether the
consumer will buy the product or not.
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8.
The purpose of promotion is to communicate
directly with potential and actual consumers.
Cadbury dairy milk has used press and electronic
media to motivate the potential and inspires the
actual customers to purchase the product of
Cadbury.
To attract different consumer segments Cadbury
comes up with different types of promotional
strategies.
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In 1998 –”Khaane Waalon ko khaane ka Bahana
Chhayie”.
In 2004, the `Kuch Meetha Ho Jaaye’ , `Pappu Pass
Ho Gaya’ ,’Miss Palampur’ .
In the year 2010, the `Shubh Aarambh’
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12.
Inputs Have Little Impact on cost.
Switching costs .
Presence of substitute inputs.
Supplier competition - ability to forward
integration.
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Product Is Important To Customer.
Large Number Of Customer.
Availability of existing substitute products.
Buyer price sensitivity.
Differential advantage (uniqueness) of industry
products.
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Exit Barriers Are Low.
Sustainable competitive advantage through
innovations.
Level of advertising & promotion expense.
Powerful competitive strategy.
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Limited number of Substitute.
Perceived level of product differentiation.
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High sunk costs limit competitions.
Customers are Loyal to Existing Brands.
Entry Barriers are High.
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Stars are units with a high market share in a fastgrowing industry. They have high market growth rate
with high relative market share.
Cash cows are units with high market share in a slowgrowing industry. They have
low market growth rate
with high relative market share .
Question marks are business operating in a high market
growth. They have high market growth rate with less
relative market share.
Dogs, are units with low market share in a mature,
slow-growing industry. They have less market growth
rate with less relative market share.
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20.
This is the stage in which the product is
initially promoted.
Public awareness is very important for the
success of a product.
The most important thing is to get you
product known
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21.
ENTERS NEW MARKET SEGMENTS
PROMOTION TAKES PLACE ON A LARGE SCALE
IMPROVES QUALITY AND ADDS NEW PRODUCT
FEATURE
LAUNCHING OF NEW MODELS
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MAXIMIZE PROFIT WHILE DEFENDING MARKET
SHARE
DIVERSIFY BRANDS & MODELS
BUILDS UP MORE INTENSIVE DISTRIBUTION
At this stage usually loyal customers make
purchases
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Sales of your product begin to fall.
WITHDRAWAL OF PRODUCT TAKES PLACE
DECLINING SALES & PROFITS
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Break segment – products which are normally
consume as a snack break and often with tea
and coffee, for example Cadbury’s Perk and
snack range.
Impulse segment – these products are often
purchase on impulse, eating these and then.
They include product such as Cadbury’s Dairy
Milk.
Take home segment – this describes product
that are normally purchased in supermarkets,
taken home consumed at a later stage.
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THE CHOCOLATE IS MEANT FOR ALL AGE
GROUPS.
IT SYMBOLIZES FUN,ENJOYMENT,GOOD
TERMS.IT HAS GOODNESS OF MILK,TASTE &
APPETITE APPEAL.
BORNVITTA
5 Star
NUTRITIONAL VALUE
WITH TASTE
PERK
LIGHT
SNACK
Teenager
Gems
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below
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33.
Cadbury is the largest global confectionery
supplier, with 9.9% of global market share.
High financial strength (Sales turnover 1997,
£7971.4 million and 9.4%)
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.
Successfully grown through its acquisition
strategy. Recent acquisitions, including Adams,
2003, enabled it to expand into important
markets like the US market
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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.
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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.
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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
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