CADBURY

History
Cadbury was a British confectionery company, the industry's second-largest globally after the combined Mars-
Wrigley. Headquartered in Cadbury House in the Uxbridge Business Park in Uxbridge, London Borough of
Hillingdon, England and formerly listed on the London Stock Exchange, Cadbury was acquired by Kraft Foods in
February 2010. The company was an ever-present constituent of the FTSE 100 from the index's 1984 inception
until its 2010 takeover.
The firm was known as "Cadbury Schweppes plc" from 1969 until a May 2008 demerger, which saw the
separation of its global confectionery business from its U.S. beverage unit, which has been renamed Dr Pepper
Snapple Group Inc.

Early history
In 1824, John Cadbury began vending tea, coffee, and drinking chocolate, which he produced himself, at Bull
Street in Birmingham, England. John Cadbury later moved into the production of a variety of Cocoas and
Drinking Chocolates being manufactured from a factory in Bridge Street, supplying mainly to the wealthy due
to the high cost of manufacture at this time. During this time a partnership was struck between John Cadbury
and his brother Benjamin. At this time the company was known as 'Cadbury Brothers of Birmingham'.
The two brothers opened an office in London and in 1854 received the Royal Warrant as manufacturers of
chocolate and cocoa to Queen Victoria. Around this time in the 1850s the industry received a much needed
boost with the reduction in high import taxes on cocoa; this allowed chocolate to become more affordable to
everyone.
Due to the popularity of a new expanded product line, including the very popular Cadbury's Cocoa Essence,
the company's success led to the decision in 1873 to cease the trading of tea. Around this time, master
confectioner Frederic Kinchelman was appointed to share his recipe and production secrets with Cadbury,
which led to an assortment of various chocolate covered items.
Having taken over the business in 1861, John Cadbury's sons Richard and George decided in 1878 that they
needed to find new premises. Requiring better transport access for milk that was inward shipped by canal, and
cocoa that was brought in by rail from London, Southampton and Liverpool docks, the Cadbury's started
looking for a new greenfield site. Noticing the development of the Birmingham West Suburban Railway south
along the path of the Worcester and Birmingham Canal, in 1878 they acquired the Bournbrook estate,
comprising 14.5 acres (5.9 ha) of countryside 5 miles (8.0 km) south of the outskirts of Birmingham. Located
right next to the new Stirchley Road railway station, itself directly opposite the canal, they renamed the
Bournbrook estate to Bournville and opened the Bournville factory in 1879.
In 1893, George Cadbury bought 120 acres (49 ha) of land close to the works and planned, at his own expense,
a model village which would 'alleviate the evils of modern more cramped living conditions'. By 1900 the estate
included 313 cottages and houses set on 330 acres (130 ha) of land. As the Cadbury family were Quakers there
were no pubs in the estate; in fact, it was their Quaker beliefs that first led them to sell tea, coffee and cocoa
as alternatives to alcohol.
The history of the company, from its origins up to modern times, has been charted in the recent book by John
Bradley.

1900 to 1950s

In 1905, Cadbury's launched its Dairy Milk bar, with a higher proportion of milk than previous chocolate bars,
and it becomes the company's best selling product by 1913. Fruit and Nut was introduced as part of the Dairy
Milk line in 1928, soon followed by Whole Nut in 1933. By this point, Cadbury's was the brand leader in the
United Kingdom. These were accompanied by several other products: Flake (1920), Cream-filled eggs (1923),
Crunchie (1929) and Roses (1938). Cadbury's Milk Tray was first produced in 1915 and continued in production
throughout the remainder of the First World War. More than 2,000 of Cadbury's male employees joined the
Armed Forces and to support the war effort, Cadbury provided clothing, books and chocolate to soldiers. After
the war, the Bournville factory was redeveloped and mass production began in earnest. In 1918, Cadbury
opened their first overseas factory in Hobart, Tasmania and in 1919 undertook a merger with J. S. Fry & Sons,
another chocolate manufacturer which saw the integration of well-known brands such as Fry's Chocolate
Cream and Fry's Turkish Delight. During World War II, parts of the Bournville factory were turned over to war
work, producing milling machines and seats for fighter aircraft. Workers ploughed football fields in which to
plant crops. As chocolate was regarded as an essential food it was placed under government supervision for
the entire war. The wartime rationing of chocolate ended in 1949, and normal production resumed. Cadbury
subsequently built new factories and had an increasing demand for their products.

Merger with Schweppes

Cadbury merged with drinks company Schweppes to form Cadbury Schweppes in 1969.

Cadbury Schweppes went on to acquire Sunkist, Canada Dry, Typhoo Tea and more. In the US, Schweppes Beverages was created
and the manufacture of Cadbury confectionery brands were licensed to Hershey's.

Snapple, Mistic and Stewart's (formerly Cable Car Beverage) were sold by Triarc to Cadbury Schweppes in 2000 for $1.45 billion. In
October of that same year, Cadbury Schweppes purchased Royal Crown from Triarc.

Demerger
In March 2007, it was revealed that Cadbury Schweppes was planning to split its business into two separate entities: one focusing on
its main chocolate and confectionery market; the other on its US drinks business. The demerger took effect on 2 May 2008, with the
drinks business becoming Dr. Pepper Snapple Group Inc.

In December 2008 it was announced that Cadbury was to sell its Australian beverage unit to Asahi Breweries.

Recent developments
In October 2007, Cadbury announced the closure of the Somerdale Factory, Keynsham, formerly part of Fry's. Between 500 and 700
jobs were affected by this change. Production transferred to other plants in England and Poland.

In 2008 Monkhill Confectionery, the Own Label trading division of Cadbury Trebor Bassett was sold to Tangerine Confectionery for
£58million cash. This sale included factories at Pontefract, Cleckheaton and York and a distribution centre near Chesterfield, and the
transfer of around 800 employees.

In mid-2009 Cadbury replaced some of the cocoa butter in their non-UK chocolate products with palm oil. Despite stating this was a
response to consumer demand to improve taste and texture, there was no "new improved recipe" claim placed on New Zealand
labels. Consumer backlash was significant from environmentalists and chocolate lovers. By August 2009, the company announced
that it was reverting to the use of cocoa butter in New Zealand. In addition, they would source cocoa beans through Fair
Trade channels. From inside reports the change to Palm Oil cost Cadbury, New Zealand 12 million in sales. In January 2010
prospectitve buyer Kraft pledged to honour Cadbury's commitment.
KRAFT has launched a major charm offensive in the wake of its controversial pounds 11.7 billion takeover of Cadbury - to remind
consumers it is not just "a North American cheese company." The group's UK boss Nick Bunker admitted Kraft's image in Britain
needed a facelift following its successful swoop for the Birmingham chocolate maker after a bitter six-month battle.

Mr Bunker, now the overall head of Bournville as leader of the Cadbury and Kraft business in the UK and Ireland, said: "Kraft was
known as a North American cheese company. But we have been in the UK for 85 years.

"The company needs to be better understood.

"We are a big company in the UK now and it is important people know the entity behind the famous brands. People didn't know who
Kraft was and that we had been in the UK for 85 years. They didn't know we had a heritage in the UK and a bigger chocolate business
than Cadbury before we bought it.

"We will prove over time that we're worthy custodians of the brand," he said, adding: "Cadbury is thriving and will continue to
thrive.

"If we decided to reformulate Cadbury and make it taste like Hershey, the nation would stop buying it overnight.

"We have more than 40 brands that are more than 100 years old, we know how important heritage is."

Last October, Kraft chief executive Irene Rosenfeld told the Mail that Cadbury l could look forward to a prosperous future under the
US group ownership, with full integration of the two operations completed as early as the end of this year.

But she has refused to go beyond Kraft's current twoyear guarantee on manufacturing jobs despite publicly apologising for the US
giant's about-turn on the closure of its Somerdale factory, near Bristol.

Unions claim Kraft will come under huge pressure to cut costs and pay off debts in the aftermath of the Cadbury takeover.

Mission
At Cadbury Schweppes, our core purpose is "Working better together to create brands peope love".

The core purpose captures the spirit of what we are trying to achieve as a business.

We collaborate and work as teams to convert products into brands.

 Vision
To align with our core purpose, Cadbury India has defined its Vision as "Life Full Of Cadbury and Cadbury Full
of Life".

Cadbury India will participate in many spaces of consumer life through a cache of product & service offerings
- be it chocolates or snacks or gum.

We believe that work and fun can co-exist beautifully. Therefore at Cadbury India, it's all about work hard,
play harder!. We bring moments of delight to our consumers everyday and every time. Therefore, we
strongly believe that those people who create these products should also have fun while doing so.
Marketing strategies
In order to increase sales Cadburys needs to undertake a range of
marketing activities before deciding upon the best way to encourage
the purchase of its product. When identifying the basic principals
which Cadburys must apply to its marketing will be its basic
objectives because all business must have objectives it allows them to
increase sales and make profit.

Corporate aims are the long term intentions of a business, whereas

corporate objectives are the specific targets required to achieve the
aims.

The common aim and objectives of the corporation such as Cadbury

includes the following:

1 Survival

2 Profit maximisation- which is often taken to be the reason why firms

exists and to be the primary objectives in practices most firms have
a hierarchy of objectives when a firms survival is threaten it may
profit maximise in order to restore its financial health.

3 Growth- which includes Cadbury selling new products or expanding

overseas.

4 Diversification- which is the spreading of business risks by

reducing dependence on one product.

5 Sales maximisation- which is the increasing of sales

6 Improving the product image-which includes creating a new logo or

launching a new brand of product and creating more attractive
packaging. 

For example, Cadbury set out two objectives for the development of
their chocolate, Fuse. These were:

1. To grow the market for chocolate confectionery

2. To increase Cadbury's share of the snacking sector

When launching a product the company Cadbury’s had to make sure that
any new product in the snaking sector must establish points of
difference, creating a unique selling proposition (USP) i.e. a product
with unique appeal which is not shared by any of its competitors.
Referring back to the example of Fuse, Cadbury lost a lot of money
testing out the combination of various ingredients and more than 250
were combined before the recipe of the chocolate was finalised. As the
products are developed, Cadbury tests them to ensure that consumers
are willing to buy them.

Cadbury then promotes its products in various ways such as the use of
above the line promotion, which is where a product is advertised
through consumer media such as television, magazines, newspapers and
radio.
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.

Our Journey:

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'.

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.

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.

Did You Know:

Cadbury Dairy Milk emerged as the No. 1 most trusted brand in Mumbai for the 2005 edition of Brand Equity's
Most Trusted Brands survey.

During the 1st World War, Cadbury Dairy Milk supported the war effort. Over 2,000
male employees joined the armed forces and Cadbury sent books, warm clothes and
chocolates to 
the front.

Fivestar
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.

One of the key properties that Cadbury 5 Star was associated with was its classic Gold colour. And through the
passage of time, this was one property that both, the brand and the consumer stuck to as a valuable
association.

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

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.
Cadbury 5 Star & Cadbury 5 Star Crunchy now aim to continue the upward trend. This different and
delightfully tasty chocolate is well poised to rule the market as an extremely successful brand.

Did you know:

Cadbury 5 Star played an adept cupid for young couples in love in the 70's. In fact, Cadbury 5 Star was a way of
professing undying love for the significant othe

Cadbury 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.

As the years progressed, so did the messaging, which changed with changes in the consumers' way of life. To
compliment Cadbury Perk's values, the bubbly and vivacious Preity Zinta became the new face of Perk with
the 'hunger strike' commercial in the mid 90's.

In the new millennium, Cadbury Perk moved beyond just owning 'hunger' to a "Kabhi bhi kaise bhi" position,
because the urge for Cadbury Perk could strike anytime and anywhere. 

With the rise of more value-for-money brands in the wafer chocolate segment, Cadbury Perk unveiled two
new offerings - Perk XL and XXL. 

The temptation to have more of Cadbury Perk was made even greater with the launch of Cadbury Perk Minis
in 2003 for just Rs. 2/- 

In 2004, with an added dose of 'Real Cadbury Dairy Milk' and an 'improved wafer', Perk became even more
irresistible. The product was supported in the market with a new look and a new campaign. The advertisement
spoke of the irresistible aspect of the brand, with 'Baaki sab Bhoola de' becoming the new mantra for Cadbury
Perk.

Did you know: 

Cadbury Perk advertising has been a launch pad for Bollywood stars - Preity Zinta, Raageshwari, Gayatri Joshi
and Amrita Rao, were all Perk models before they made it big on cinema screens.
Cadbury celebrations
Cadbury Celebrations was aimed at replacing traditional gifting options like Mithai and dry- fruits during
festive seasons.

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.

Did you know:

The "Rishte Pakne do" jingle was penned by noted writer Gulzar.

Cadbury temptation
Ever see people hide away their chocolate since they don’t want to share
it! If you have, then its likely to be a bar of Cadbury Temptations!
Cadbury Temptations is a range of delicious premium chocolate in five
flavours.

Research revealed a niche segment of “ chocoholics” -

those exposed to
international chocolates and those who love a variety
of chocolates but
possibly find the price of international chocolates too
high. Cadbury
Temptations is a range targeted at this segment of
discerning chocolate
lovers.

The Cadbury Temptations range is available in 5

delicious flavour variants
- Roast Almond Coffee, Honey Apricot, Mint Crunch,
Black Forest and Old
Jamaica. With its international quality chocolate Temptations soon became a 
popular brand for "chocoholics".

The advertising positioned Cadbury Temptations as a chocolate range so

delicious that it was "too good to share".

Did you know:

Cadbury Temptations advertising won an advertising effectiveness - EFFIE award in 2001.

Cadbury dairymilk éclairs

Eclairs was first discovered by a local
confectionery firm in London,
England in the 1960s. The firm then became part
of Cadbury in 1971
making Cadbury Eclairs the second largest brand
in the company.
The experience of eating a Cadbury Dairy Milk
Eclair is truly unique
because of its creamy caramel exterior and rich
Cadbury Dairy Milk
chocolate at the center. In 2006 Cadbury Dairy Milk Eclairs launched 
a crunchy Eclair with a hard caramel outside and delicious Cadbury 
Dairy Milk chocolate inside called Cadbury Dairy Milk Eclairs Crunch.

Our Journey:

In India, Cadbury Dairy Milk Eclairs has been the most preferred brand in
the Eclairs category for years and has always been a favourite with consumers. Eclairs advertising over the
years has talked about the mesmerizing taste of Eclairs because of the Cadbury Dairy Milk chocolate it
contains at its center. The 'Kar De Dil Pe Jadoo' campaign illustrated this in a youthful college context. The
Eclairs Crunch variant has also had an encouraging response from both teens and pre-teens. Currently, the
chewy and the crunchy variants are both enjoyed by the Eclair consumer.

Did you know:

A sign in front of our Nigeria factory describes Choclairs as "the sweet with heart on the inside.
Gems
Cadbury Gems occupies a very special place in the hearts of kids; present and past. Its unique
shape, size, colours and format instantly set it apart. These tasty, colourful, chocolate buttons
have become an integral part of the lives of both children and adults.
 
HISTORY:
Launched in 1968, Cadbury Gems has captured the fancy of children for
more than 4 decades now. Supported by a number of popular TVCs since
the Eighties, Gems is uniquely positioned because of its chocolate taste,
colourful buttons and multiplicity. The taste and fun associated with
eating Cadbury Gems and the joy of sharing it with friends has also made
the brand a source of nostalgia for older consumers. Simply put, eating
Gems brings happiness, fun and mischief to a kid's world. Which is why,
Cadbury Gems has always had Fun and Masti as the proposition in all its
communication. 

Gems, available in a Pouch and a Carton, is also available in a Re. 1 pouch.

Gems has continuously been relevant and exciting for

consumers with salient messaging, contemporary packaging
graphics, pack innovations and consumer promotions. In
December 2000, the Gems Tube Pack with a flip-top was
launched, which became an instant hit with kids. In succeeding
years, the Tube Pack has continued to excite kids with different
ball games on its flip-top.

In 2006, Gems gave kids another reason to rejoice by giving them an option of consuming their
favourite Gems chocolate together with a fruit flavour - Fruity Gems was launched and offered
fruit flavours along with the taste of Gems.

Till 2007, Gems was largely speaking to younger kids (less than 8 years of age). While Gems
became very popular amongst this age group, kids crossing this age seemed to be growing out
of it. With the intent of also appealing to older Kids (aged 8-12 years) while being relevant to
younger kids, Gems launched Subru communication in 2008. Subru increased the fan following
of Gems in older Kids and turned out to be a very successful campaign.
In 2009, with a better understanding of older Kids, Colour
was chosen as the magical element to ignite the
imagination of kids and increase their affinity with Gems.
To bring alive the delight of colours, Gems came up with
the concept of a black-and-white panda which, after eating
Gems, became a Coloured Panda. The Coloured Panda has
now become an icon for Gems. 

The world of the Coloured Panda promises unexpected and

exciting fun which doesn’t exist in an otherwise routine world.
Cadbury Gems is now positioned as ‘RANGEEN PANDA KI
RANGEEN PASAND’.

To add to its visual appeal and excitement, Gems has changed its
pack graphics to a more modern, contemporary and an edgy
design, together with a change in logo graphics.

Do you know?
The colourful world of Cadbury Gems has six colours – Red, Green, Pink, Yellow, Orange and Blue.

We are a performance driven values led business

We have a clear vision, performance scorecard, priorities and sustainability commitments. As a culture we
value performance, quality, respect, integrity and responsibility.
We work as one team across geographic and functional boundaries to be the best.  We work hard and have
fun along the way.
We listen to our consumers, customers, suppliers, shareowners, colleagues and communities. Our success is
sustained by understanding and responding to their needs.
We have always believed that ‘doing good is good for business’. This belief inspired our founders, and is still at
the heart of the way we work today.  We see it as key to our future success.
 
Our 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.

Our values are:

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.
 Our Strategy

We believe that the business still has significant untapped potential – both in terms of top line growth and
returns. By exploiting the strength of our leadership positions to continue to grow our market share and
significantly increase our margins and returns, we aim to achieve our vision of becoming the biggest and best
confectionery company in the world.

Our Vision into Action (VIA) plan for 2008 to 2011 aligns the energies and efforts of our teams around the
world behind a number of priorities which will make the most impact on our revenue and margin
performance.

In order to generate superior returns for our shareowners, our VIA will deliver six financial targets. These are
set out in our financial performance scorecard below:

 Organic revenue growth of 4% - 6% every year

 Total confectionery share gain
 Mid-teens trading margins by 2011
 Strong dividend growth
 An efficient balance sheet Growth in Return on Invested Capital (ROIC)
To achieve these financial goals, we have a growth and efficiency strategy which aligns behind our focus on
fewer, faster, bigger and better. This focus is being applied to all aspects of our business.

Driving Profitable Growth

Between 2004 and 2007, our organic revenue growth averaged 6% a year, a significant increase on the
previous four years, when Cadbury’s confectionery growth averaged less than 3%, and the Adams business,
which we brought in 2003, barely grew. We have significantly accelerated our growth since 2004 by unlocking
the potential of the Adams business and by substantially increasing our investment in innovation, marketing
and sales.

Our revenue ambition of between 4% and 6% annual organic

growth for the 2008-2011 is underpinned by:

 The strength of our brands and market positions;

 The increased investment we have made in innovation,
marketing and sales;
 Our greater exposure to faster growing categories (such
as gum) and markets (such as emerging markets); and
 Strong demand for confectionery: the market has
grown consistently at around 5% every year for the last four
years.
Our revenue ambition allows for some rationalisation of our portfolio as we focus our efforts on profitable
growth.
Policies
Environment, Health & Safety Policy

At Cadbury Schweppes, 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 aim to ensure that in the course of our business activities we not only minimise our impact on the
environment ; but also look after the health and safety interests of our employees; in addition to seeking
opportunities to improve the local environment and the communities in which we operate.

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.

We will:

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. Assess and eliminate or control the EHS risks of new and existing operations, and continually assess the
environmental performance of our products, seeking ways to contribute positively to their performance.

7. Train and motivate our employees to understand their EHS responsibilities and to participate actively in our
EHS programmes

8. Work with our supply chain and business partners to improve our collective EHS performance, to protect
the ecosystems that provide our raw materials and to minimise the impacts from transportation.

9. Communicate with our shareowners, employees, customers and other interested parties by regularly
reporting on our EHS performance and maintaining an open dialogue.
Organizational structure

CEO

Chairman of the Board

Directors

Sales

CFO

Human Resources

Legal & Secretary
Science & Technology

Strategy

Supply Chain

Global Chocolate

Global Gum & Candy

Asia

Britain & Ireland

Europe

Middle East & Africa

North America

Pacific

South America
Nestle India

Company’s Profile
Nestlé with headquarters in Vevey, Switzerland was founded in 1866 by Henri Nestlé and is today the world's
biggest food and beverage company. The Company's strategy is guided by several fundamental principles.
Nestlé's existing products grow through innovation and renovation while maintaining a balance in geographic
activities and product lines.
The company succeeded in achieving sustainable profitable growth during the year under the view driven by
successful marketing and sales strategies and focus on key initiatives. Consumer confidence in the company’s
brand has further strengthened and the trade remains confident as ever in doing business with it. Innovation
and renovation remained the key to development of new products.

In the shed of Nestlé 247,000 people are working in almost every country in the world.
From which almost 8,000 employees are working in Pakistan.
Headquarters in Lahore, the company operates five production facilities. Two of its factories in Sheikhupura
and Kabirwala and multi product factories. One factory in Islamabad and two in Karachi produce bottled
water. Through its effective marketing and a vast sales and distribution network thought out the country, it
ensures that its products are made available to consumers whenever, wherever and however.
Nestlé company is registered in Pakistan under the company ordinance 1984. As it’s a public company but still
not registered in any Stock Exchange in PAKISTAN
Over all company market share is 67%. Nestlé share as compared to nur pur,Haleeb and other are moves
around 20to 30%.Total turnover:- 13.5 Billion Rupees
MISSION

Build branded food business to improve quality of life by offering tasty, affordable and

highly nutritional product to our consumer. While maximizing stakeholder value

VISION

The strategic priorities of Nestlé milkpak are focuses on delivering shareholder value through the achievement
of sustainable, capital efficient and profitable long term growth.

Improvements in profitability will be achieved while respecting quality and safety standards at all times.

In line with this objective, we envision Nestlé milkpak to grow in the shortest possible time into the number
one food company in Pakistan with unique ability to meet the needs of consumers of every age group- from
infancy to old age, for nutrition and pleasure, through development of a large variety of food categories of the
highest quality.

We envision the company to develop an extremely motivated and professionally trained

Innovation and renovation.

We aspire, as a respected corporate citizen, to continue playing a significant role in the social and
environmental sectors of the country.

Most innovative and fastest growing food company offering Products enjoyed in

“Every home every day”

GOALS
 Nestlé's business objective is to manufacture and market the Company's products in such a way as to
create value that can be sustained over the long term for shareholders, employees, consumers, and
business partners.
 Nestlé does not favor short-term profit at the expense of successful long-term business development.
 Nestlé recognizes that its consumers have a sincere and legitimate interest in the behavior, beliefs and
actions of the Company behind brands in which they place their trust and that without its consumers
the Company would not exist.
 Nestlé believes that, as a general rule, legislation is the most effective safeguard of responsible
conduct, although in certain areas, additional guidance to staff in the form of voluntary business
principles is beneficial in order to ensure that the highest standards are met throughout the
organization.
 Nestlé is conscious of the fact that the success of a corporation is a reflection of the professionalism,
conduct and the responsible attitude of its management and employees. Therefore recruitment of the
right people and ongoing training and development are crucial.

Product Line:
“Build branded food improve quality of life by offering tasty, hygienic and nutritional products.”
 Nestlé products
 Juices
 1981 Nestlé milk pak
 1983 Nestlé butter
 1986 milkpak uht, cream desi ghee, frost
 1990 Nestlé nido, Nestlé cerelac
 1991 Nestlé rice, Nestlé lactogen1
 1992 Nestlé everyday, Gloria magi
 1994 Nestlé Milo, Nestlé neslac
 1996 Nestlé juices, polo mint, Nescafe classic
 1997 Nestlé kit Kat
 1998 Nestlé toffo , Nestlé soothers, Nestlé pure life
 2000 Nestlé plain yogurt
 2001 Nestlé fruit yogurt , Nestlé nan.1, Nestlé nan.2
 2002 Nestlé everyday liquid
 2003 Nestlé buddy, Nestlé hi-calcium low fat yogurt
 2004 Nestlé raita, caution
KEY OBJECTIVES
“Build branded food improve quality of life by offering tasty, hygienic and nutritional products.”

Marketing Management Philosophy followed by the NESTLÉ

Societal Orientation / Societal Marketing

It is clear from the Haleeb Foods Ltd. mission statement that the organization is not only selling products to
maximize its profit but also wants to provide a healthy and safe environment to the community.

They want to improve the quality of life of the community by providing quality food products at affordable
prices.

NEED

As the milk is been a basic need of every individual whether its an infant, a grown up or an old aged person,
milk is a need of every one whether its in shape of plane milk or to be used in tea or coffee.

DEMAND

As the people buying power is raising this want of packed milk is converted into demand of the people and as
far as Nestlé is concerned it is a want of middle class and some time demand of the lower middle class.

WANT

But now a days people are much more conscious about there health and hygiene so regarding the need of
milk a want has come into being in shape of packed, pasteurized and ultra heat treated healthy milk.

VALUES

 Enterprise
 Empowerment
 Accountability
 Team work
COMPETITORS
As the Nestlé is market leader in milk producing so its keenly observe its competitor and try to improve its
quality and variety of products day by day by doing continuous enhancement.

Some known competitors of Nestlé’ are;

 Haleeb
 Nurpur
 Engro foods
Competitive Analysis

Major competitors include NURPUR& HALEEB

Others are:-

ENGRO FOODS & raw & open milk sold by Dodhi (milkman)

Same prices of milk offered by them

Advertising:-

Media opted for: Television, Bill Boards and Print Media.

Slogan: “Good food, Good life”

Theme: MILK FOR EVERY ONE

Push VS Pull: At some stores there is push strategy for the product where as at some stores its pull.

Promise & Support: BEST MILK FOR DRINKING & TEA.

Value Preposition: Best value for money.

Marketing Strategy Used:-

Penetration strategy supported by product differentiation

MICRO ENVOIRMENT
Company in Nestlé the owner have no concern with the company operation all the decisions are taken by the
board of directors and pass on to the subordinates.

Suppliers
Company having their own milk collection centers in different sectors which not only take the milk from the
farmers but also tell them about the modern techniques to improve the quality and quantity of milk.

Intermediaries

Company hire the private distribution and whole seller to provide its product nation wide and internationally
company keep a strict check on its distributors company had appoint an area manager on each distributor to
keep an eye on its performance

Customer

Company keenly study the demand of the community as the poverty level of our country is high and most of
the people are not in condition to afford the packed milk so company introduce a milk which is packed but
price is almost same to the open or loose milk.

Public
As this one is a public company but not listed in the stock exchange yet Company is using both the printed and
electronic media Company having keen interest in general public because they are the actual customer of the
organization and try to design the product according to their expectations.

Differential Strategy
Provide hygienic and nutritional products to the nation in an affordable price

Key success factors:

 Quality
 Continuous System Enhancement
 low and affordable price
 Competitive Advantage
 Thickest & Healthiest milk
 Differentiation Strategy
 Functional
 Selling Preposition Unique:
 Thickest milk with standard price.
Segmentation & Target Market
Demographically

Gender wise & Income classes.

Geographically

National and International market.

Media Graphically

Electronic & Print media

Customers Profile

Females House wives b/w the age of 25-35 SEC1& SEC2

MARKET SHARE

Market Share
3%
7% 6%

17%

67%

Nestle Haleeb Nurpur Engro Foods Empty

The total market share of Nestlé’ during the year 2005-06 is 67%; remaining portion is covering by Haleeb,
Nurpur & Engro Foods 17%, 7% and 3% respectively.
Sales
Daily sales: 400,000 liters

Monthly sales value: Rs. 30 crore

Annual sales value: Rs. 4.8 billion

Sales Growth rate 25%

This is changed 12% w.r.t last year.

Dividend:-

22.62% as per share.

Total Turnover:-

13.5 Billion Rupees.

Beside this fact almost 6% market share remains empty. Because of some crucial reasons of infrastructure
such as transportation problem and other duties to deliver their products in far locations. Nestlé Pakistan is
trying their best to meet this empty 6% portion, with the help of their sales promotion department which is
doing very effectively job for the achievement of this object.

Nestlé Sales Turn Over

Sales Turnover of Nestle'

15 12.9 13.5
9.8 10.7
9.1
10

0
2001- 2002- 2003- 2004- 2005-
02 03 04 05 06

year Amount in (Billion Rs.)

In 2001-02 the sales turn over of Nestlé is 9.1 billions and it is increased by almost 0.7 billions more in the next
year i.e. it reached to 9.8 billions in 2002-03.This booming trend keeps on increasing continuously in the next
three years 2003-04, 2004-05 and 2005-06 which is 10.7, 12.9, 13.5 billions respectively.

The sales turn over of last five years is showing the continuous increasing trend and clearly representing the
struggle of the management of Nestlé.
Nestlé’ With Competitors

13.5
15

10
Billion
(Rs.) 2.7
5 1.2 0.5 0.3

Nestle Haleeb Nurpur Engro Foods Others

`

In 2005-06, because of the major portion of Nestlé the market share i.e. 67% reached Rs.13.5 billion .Beside
this contribution of other four companies combinely cannot compete the overall sales revenue of Nestlé.

Organizational Culture
Nestle has strong corporate culture which is reflected by the company logo itself. The logo, “Good Food Good
Life” which is always attached to its products is the main guidance for every activity within the company.
Nestle believes that good food is the primary source of good health throughout life thus it always puts
nutrition, health and wellness as the core of its business. The company tries to further develop and emphasize
on these aspects. These three things Nutrition, Health and Wellness can be found in all Nestle products and in
the company mission statement as well.
Talking about the company culture which is related its people structure, Nestle has the culture of team
focused and open door policy which become one of its corporate strengths. The company focuses on
collectivism and performance orientation attitude to encourage employees to work harder (Ali et al, 2009).
Strategic Purpose
 Marketing strategies
No matter how effective the promotion and packaging, a firm will find it very difficult to market a product
which fails to satisfy a consumer need. Kit Kat owes much of its success to a unique dual appeal - as a four-
finger chocolate bar, (known in the confectionery trade as a countline), sold at corner shops and newsagents,
but also as a two-finger biscuit sold in supermarkets. It is a product that has endured because of its wide
appeal across the age ranges and to both sexes.
Altering the actual product is potentially a very hazardous act for an established brand name as it risks altering
the consumer perceptions of quality built up over decades. Tampering with the recognised core qualities could
well damage the integrity of the brand. For Kit Kat, these intrinsic elements of the brand, or unique selling
points include the:
 chocolate fingers
 foil and band wrapping, unique in the countlines market and seen as an important feature which
encourages involvement and sharing by consumers
 well-known strapline - Have a Break, Have a Kit Kat.

In spite of the risks of altering the product, the two finger bar and multipacks were introduced in the 1960s to
meet the increased needs of supermarket shopping and more recently, Orange, Mint and Dark Chocolate Kit
Kats have been available for limited periods. In the third week that Kit Kat Mint was available, it more than
doubled total Kit Kat Sales. The Orange Kit Kat proved particularly popular with sales of 38 million bars in just
three weeks. It provided very positive market research results. While they are seen as novelties, they can also
be used to provide reassurance and reinforcement of the core attributes of the original established brand
name.

Special editions are used primarily as promotional tools. Market research has shown that consumers prefer
special editions to be available for limited periods only and that consumers are likely to purchase the original
Kit Kat at the same time or shortly after. (They are, therefore, a good way of injecting new life into the Kit Kat
product life cycle). Depending on their popularity, some special editions are introduced more than once. The
Orange Kit Kat has proved so popular that the two-finger multipacks are now permanently available.
Apart from these variants, the intrinsic characteristics of the Kit Kat product and packaging have changed very
little during the last sixty years. Although some minor, subtle changes have been made in packaging,
merchandising and sales promotions, a Kit Kat from the 1930s would be instantly recognisable to modern
consumers today.
 Pricing strategy
A key advantage of maintaining a strong brand image in a competitive market is a degree of flexibility in the
pricing strategy. It is a common characteristic of imperfectly competitive markets for producers to concentrate
on non-price competition. When looking at the pricing strategy for Kit Kat, it can be seen from the figures that
the real price has remained remarkably stable over the last sixty years.

Promotional strategy
Nestlé has used a wide range of promotional tactics with Kit Kat. Promotion offers have included free bars in
the multi-bar family packs and an instant win deal with Burger King in 1996. This promotion, where over 75
million free burgers were on offer, increased sales of Kit Kat by an estimated 30 In 1998, an on-pack
promotion featuring 'The Simpsons,' with the chance to win £20,000 cash and hundreds of other prizes,
increased sales of Kit Kat by a staggering 41
Advertising plays an extremely important part in the confectionery industry, with spend approaching £114
million in 1996. The Have a Break, Have a Kit Kat theme appeared briefly in 1939, but has been the on-going
Kit Kat slogan, or strapline, since the mid 1950s. Kit Kat's advertising is concentrated in two media:
 television commercials - which follow the well-known Have a Break tradition
 posters - where the powerful colours of the pack and product are used to dramatise the message.
A particular challenge for the advertisers is to appeal to both the consumers and the purchasers. Women
account for two thirds of all confectionery sales, but a large proportion of these purchases are subsequently
consumed by children. Men eat as much as they purchase suggesting they are less generous!

Distribution strategy
Nestlé has developed distribution channels which ensure the availability of Kit Kat to buy wherever and
whenever the consumer wishes to purchase it. Sales of confectionery depend heavily on its availability, with
market research showing that well over 60of all purchases are made on impulse. Consequently, Nestlé tries to
supply as many outlets as possible - both wholesaler and retailer channels.
Point of sale merchandising is also important when consumers are making instant, snap decisions from a wide
range of products on view. Instantly recognisable packaging also helps to tempt customers. Shoe shops, for
example, have recently been identified as having potential for confectionery sales owing to the large number
of families that visit them. It is also predicted that confectionery, along with all foodstuffs, will become
available through cable and interactive television, videophones and the Internet.
Internationally, Kit Kat is now also manufactured in Canada, Germany, India, Malaysia, China, Japan, Australia,
South Africa and the United States. It is available in more than 100 countries throughout the World.
S.W.O.T ANALYSIS

STRENGTHS
24 milk collection centers equipped with latest quality assurance laboratories.

The only Nestlé Company in Pakistan that undertakes 21 rigorous quality control tests. The only Nestlé
Company in Pakistan with the following Certificates:

 HACCP (in process safety controls)      ISO 9001-2000 (better quality)

 ISO 14000 (environment friendly operations)
 Tubular indirect heat treatment system from Holland.

WEAKNESSES

 Un CONVINENT PACKING
 Unattractive and low media advertising

OPPORTUNITIES
There are number of milk importing countries like:

 Bangladesh
 China
 Hong Kong
 Singapore
 Thailand. Etc

THREATS

Nestlé MilkPak, which is one of the largest and most influential milk processing outfits in Pakistan Haleeb,
NurPur, and raw milk Gawallas. The whole Indian Nestlé industry because India is the largest producer of milk
in the world. Rising exports of India.
Organizational structure

CEO

Chairman of the Board

Vice Chairman of the Board

Directors

Honorary Chairman of the Board

CFO

CIO

Communication

Nestle Professional

Executive Vice President

USA, Canada & Latin America

Nestle Waters

Research & Development

Operations

Pharmaceuticals & Cosmetics

Marketing & Strategic BUs

Europe

Asia Oceania Africa & Middle East

Human Resources & Administration

Nutrition

Governance & Secretary

 Conclusion
To put the pre-going discussion into nut-shell. It can safely be ventured to opine
that Nestlé company has s much potential at that time but if Nestlé use the
always differential strategy in proper manner we easily conclude that Nestlé will
be able to lead the companies in the Pakistan and abroad.

Recommendations
Transform the formula of milk because it gives a taste of powder milk Lower the
price and reduce the packaging costs Conduct more advertising and change the
style of add campaigns. Sachet pack should be introduced so that a poor man too
can afford it.