CONTENTS

Acknowledgement

Introduction to Cadbury

Mission

Vision

Company Values

Profile of Cadbury

Overview of the Cadbury

Cadbury Worldwide

Brand Building of Cadbury Dairy Milk

10

4Ps of Cadbury

12

SWOT of Cadbury

13

Cadbury Snap! Introduction

15

Marketing Research

16

The Launch Strategy for Cadbury Snaps

18

Conclusion

20

Acknowledgement
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 todays 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

INTRODUCTION TO CADBURY:
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.

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 Indias coverage. (so far in case of
chocolates, rural areas are not covered)
3

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.

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.

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

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

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
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, clairs 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
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 countries

John 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 the world enjoy our brands

23 June 2008

10

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 person'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'.

11

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.
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 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.

12

Cadbury Four P'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
13

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.

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.

14

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.

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" didnt 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

15

Cadbury Snaps - New product development with

a twist!
Introduction
Cadbury Ireland is the leading supplier of confectionery on the Irish market. The company is a
subsidiary of Cadbury Schweppes plc, a global leader in the confectionery/beverages market.
Operating in Ireland since 1932, Cadbury Ireland has three production plants: two in Dublin, one
in Coolock and one in Tallaght - and the third plant is in Rathmore, Co. Kerry.
Cadbury prides itself on its market leading brands such as Dairy Milk, Snack and Creme Egg.
The company continually strives to drive innovation within the confectionery category and offers
its brands in a variety of formats and pack sizes, relevant to todays changing consumer
environment.
Critical to this success is innovation in the development of new products and brands.

Background to Cadbury Snaps

One of the growing occasions in recent times has been in-home evening entertaining. People
are spending more time at home entertaining informally, particularly in the evening time. For
example having a group of friends over in the evening to watch a DVD or having a girls night
in have become more popular. For these types of occasions, people are looking for a product that
is in a format that is easy to share and contains enough pieces in the pack for everyone.

16

Cadbury Snaps are individual chocolate curves, available in a variety of flavours. There are
approximately 40 curves in each pack. With so many pieces in each pack and with Snaps
available in a variety of flavours, Snaps are an ideal chocolate sharing product.

New Product Development

The development of successful new products is one of the ways in which companies can achieve
competitive advantage. New Product Development (NPD) is a process which carries a great deal
of risk - over 40% of all new product introductions fail at launch! For NPD to be effective,
companies have to nurture an innovative corporate culture so that everyone in the organisation
is encouraged to be innovative in their work. Cadbury takes innovation very seriously and it is a
major part of Cadburys strategy for success.
The New Product Development Process
1. New Product Strategy
2. Idea Generation
3. Idea Screening
4. Business Analysis
5. Development
6. Test Marketing
7. Commercialisation
8. New Product

Market Research
Market research is the gathering, recording and analysing of information about markets and their
probable reaction to product, price, distribution and promotion decisions. Market research is
critical for successful NPD and marketing mix planning.
Gathering information can be done by either desk or field research. Desk research involves
analysing all the internal and external information available. Field research is done by contacting

17

consumers either using surveys, questionnaires, feasibility studies or sampling, among other
methods to get primary data from the target market.
There are various ways of carrying out market research:
_ Do it yourself: For small companies with limited resources.
_ Market research department: Very large organisations may have their own dedicated market
research department.
_ Market research agencies: These companies specialise in market research. Research may be
done with the collaboration of the companys marketing department, but fieldwork will be
carried out by the agency.

Stages in the marketing research process

1. Define marketing problems/opportunities
2. Set objectives, budgets and timetables
3. Research design
_ Who will complete research?
_ What questions need to asked/answered?
_ How much time will be dedicated to research?
4. Data collection
5. Data evaluation
6. Report writing & presentation
_ Problem definition: This is the realisation that a marketing problem needs information to find
its solution.
_ Research design: This defines what form the research will take and what will be achieved. It
encompasses objectives of the research. The research design also includes a timeframe and the
all-important costings.
_ Data collection: This involves the actual carrying out of the research. There are two main
categories of market research:
Qualitative research: This is exploratory research which aims to determine consumers attitudes
and values in a way that sampling using questionnaires cannot. For this reason qualitative
research relies on some form of interaction with the consumer. Main forms of this are focus
groups, in-depth interviews and observation.
18

_ Quantitative research: Surveys and short interviews are the main forms of quantitative
analysis. Here values and attitudes are measured and questions are generally given in a yes-no
or scale from 1-5 format.
_ Data analysis: The form of analysis will depend on the type of research used e.g. qualitative
analysis will generally involve identification of some major issues and present the nature of the
comments made on them. While there are now computer programmes which can help interpret
data this is generally used for interpreting qualitative data, which is more statistical.
_ Report writing: The final report will summarise the objectives of the research and give
detailed analysis. This is presented in graphic form where possible (bar charts, pie charts etc). Its
important that the information is clearly presented so that managers can draw clear conclusions
from the report. An executive summary at the beginning summarises all major findings.

The Launch Strategy for Cadbury Snaps

At Easter 2005, Cadbury Snaps was initially launched in the Irish market in three flavours. The
target market was young adults (20-35 years old) who are sociable and enjoy spending time with
their friends and family.
In-Store Positioning
19

The first key challenge was to find the correct in-store position for this product: it was decided to
place the product in the confectionery section alongside other confectionery products that are for
in-home consumption. Post launch consumer research proved this was the best.
Now that it was clear how the product was to be positioned in retail stores, the marketing
communications campaign had to inform consumers about this new product.
The Launch Campaign
For a new product like Cadbury Snaps, the main objective of the launch campaign was to build
awareness of the new brand.
Cadbury approached this mainly in three ways: advertising, sampling and PR.
_ Advertising: A TV ad campaign was devised illustrating one of the important consumption
occasions (watching TV in the evening), and it was aired for eight weeks. This advertisement
reached 85% of the market and was seen by every adult in the target audience at least seven
times.
To reinforce the positioning of this product as an in-home snacking product for sharing,
Cadbury also advertised Snaps on the TV listings pages of the major national weekend
newspapers, as watching TV in the evenings is one of the key occasions for consuming
Snaps.
_ Sampling: From experience, Cadbury
Ireland knew that in-store sampling was vital for a successful launch of Snaps. A major sampling
and couponing campaign was devised whereby three-day sampling events were carried out
across 100 major stores in Dunnes, Tesco, MSVC and Superquinn, during the launch period.
This was then repeated 8-10 weeks later in major stores to coincide with the addition of Cadbury
Snaps Mint to the range.
_ Public Relations: One of the most underestimated areas of the marketing mix, PR is
invaluable for awareness building of an intended usage occasion. PR can reach consumers when
they are least expecting it, and outside the normal forms of contact like instore,
TV etc.
20

For Cadbury Snaps it was imperative to build awareness of Snaps as suitable for informal
sharing with friends during a night-in. To support this the main PR activities undertaken were:
_ Sponsorship of screenclick.com: The Irish on-line DVD rental site. This consisted of an ad on
the website, advertising emails to members and also on DVD cases.
Other PR activities included:
_ A Radio Promotion with stations such as 98FM and BeatFM where the prizes consisted of
hampers with all you need for a night-in: Snaps; DVDs, slippers (!) and gift membership of
screenclick.com.
_ Media Gift to presenters of drive time radio shows and afternoon TV.
_ Product Placement: Samples were sent to Faircity for display in the shop or possibly for
evening scenes in homes. Samples were also given to major interior design trade shows for
placement on tables in living room displays.
_ Point of Sale (POS): Naturally, given that the product is sold in retail outlets, in-store
marketing support was also developed. This consisted mainly of attractive floor units, shelf
headers and glorifiers (packs of Snaps in a perspex container which are attached to the shelves)
to give standout in-store.
Post Launch Developments
During the year following the launch of Cadbury Snaps two further flavour varieties were
introduced: Coconut and Honeycomb.
Future Challenges for Cadbury Snaps
Going forward, Cadbury will still need to inform consumers about the usage occasions for
Cadbury Snaps. The brand will continue to be displayed in the take-home confectionery section.
Strong POS and promotion will continue to be important.

21

Conclusion
The introduction of Cadbury Snaps is an example of quite radical innovation. For such radical
innovation the early stage is not always easy as it takes time to inform consumers and build
awareness of the new product. However initial success and continued on-shelf presence suggest
that Cadbury Snaps are here to stay!

22