History of Cadbury

1897 2008
The first Cadbury solid Cadbury Schweppes demerger
chocolate bar is sold. took with the drinks business
becoming Dr. Pepper Snapple
Group Inc.
2012-13
Cadbury India profit
slows to six year low
2009 PAT growth 2.2% under
Acquisition by Kraft the new parent
1948
Foods: £11.5 billion Mondelez International.
Cadbury began its operations in
(US$18.9 billion) indicative
India by importing Chocolates
takeover bid for Cadbury

1824 1905 1969 1993 2012

1897 1948 2008 2009 2013

1905 1993
Dairy Milk brand appears Cadbury opened the world's largest and 2012
for the first time most advanced chilled warehouse in The confectionery
Minworth, Birmingham business of Kraft
became Mondelēz
1824 International, of which

3
John Cadbury began Cadbury is a subsidiary.
selling tea, coffee, and 1969
drinking chocolate Cadbury buys drink maker Schweppes
to become Cadbury-Schweppes
 CADBURY INDIA
• Cadbury India — a subsidiary of Mondelez International, the $32 billion global
snacking major formed in October last year.
• Cadbury India enjoys a value market share of over 67 percent in the chocolate
category and our brand Cadbury Dairy Milk (CDM) is considered the "gold
standard" for chocolates in India.
• Cadbury in India operated in five categories: Chocolates, Beverages, Biscuits,
Candy & Gum.
• Snapshot of some of the most popular Brand of Cadbury:-
 Vision & Mission
Vision:
"Working together to create brands people love"

Cadbury’s mission statement

Says simply, ‘Cadbury means quality’; this is our promise. Our reputation is built upon quality;
our commitment to continuous improvement will ensure that our promise

Mission Statement 0f the product:

The mission statement of our new product is “To provide our customers with a tempting and
exquisite taste” as Enticing Treats means a mouth watering treat which is simply irresistible.
Sales and Distribution structure of Cadbury Product

Competition Medium

Unit value Low

Volume High

Unit Margin Low

Seasonality Low

Retailer’s Capital Investment Low

No. of Retailers High

Retailer’s sales Low

Manufacturer Retailer’s Relationship Low

 OBJECTIVES
• To become the World’s Biggest and Best Confectionery
Company.
• To make lots of chocolate & improve the quality of
their chocolate.
• Have loads of stores worldwide.
• To be an ongoing company & achieve revenue growth
of 20% per year.
• Increase earnings by 15% annually & dividends per
share by 7% per year.
 Cadbury India’s Market share in different segments
in 2015

Source: Change at the chocolate factory

By Geetanjali Shukla and Anusha Subramanian
Edition:Feb 19, 2012
COMPETITORS
 Achievements

Major Achievements of Cadbury

• Worlds No 1 Confectionery company
• World's No 2 Gums company.
• World's No 3 Beverage company.
• Cadbury Dairy Milk & Bournvita have been declared a "Consumer Superbrand" for 2006-07
by Superbrands India.
• Cadbury India has been ranked 5th in the FMCG sector, in a survey on India's most respected
companies by sector conducted by Business World magazine in 2007.
• 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.
• 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'.
PRODUCT
 CHOCOLATE BAR.
MADE FROM REAL DARK CHOCOLATE.

SIMILAR DESIGN WORLDWIDE.

CONTAINS MORE MILK THAN ANY OTHER CHOCOLATE BAR.

AVAILABLE IN 10.5g, 22g, 95g, 165g & OTHER PREMIUM PACKS

 Popular Brands in INDIA
C
ho
co
la
te
s

Beverages
S
n G
U
a
M
c S
k
CANDy’s
s
PRICE
 WEIGHT (gm) PRICE
10.5 5
22 10
40 20
42 CRACKLE 25
95 50
80 FRUIT & NUT 55
165 90
PLACE
Business Operations
Five company-owned
manufacturing facilities:
Thane
Induri (Pune)
Malanpur (Gwalior)
Bangalore
Baddi (Himachal Pradesh)

4 sales offices:
New Delhi
Mumbai
THESE
Kolkota
FACTORIES
Chennai CHURN OUT
CLOSE TO 8,000
Corporate/Head office: TONNES OF
Mumbai CHOCOLATE
ANNUALLY
 CDM ARE SOLD DIRECTLY TO WHOLESELLER AND RETAILERS.

CADBURY'S DISTRIBUTION NETWORK USED TO ENCOMPASSES

2100 DISTRIBUTORS AND 450,000 RETAILERS.

RETAILER
WHOLESELLER
PROMOTION

THE BIG ‘B’ FACTOR
segmentation
TARGET MARKET
Positioning
 PRODUCT LIFE CYCLE
Maturity
-30%
Sales

Growth

Introduction
+36%
+40%

1905 1990 1994 1998 2003 2004 2014 Time

 INTRODUCTION
• 1905 – Cadbury launches Dairy Milk onto the market.
• Positioned as ‘Unique Milk chocolate with far more milk and creamy
taste’.
• In the 1980s, it was positioned as ‘the perfect expression of love’,
• ‘Sometimes Cadbury can say it better than words’.
• During the early1990s, emphasised its international identity, the
‘Real taste of chocolate’.
• Re-positioning was done in 1994, to the ‘free-child’ in every adult.
• Cadbury Dairy Milk redefined itself as the perfect expression of
spontaneous, shared good feelings, providing the ‘real taste of life’
experience.
 GROWTH
• 1998- The next stage of growth for the brand deals with
popularizing consumption in a social context, especially in more
traditional settings like weddings.
• With the campaign ‘Khaanein waallon ko khaanein ka bahana
chahiye’
• Cadbury Dairy Milk aimed to substantially increase penetration
levels with the award winning ‘Kuchh khaas hai.. .’campaign.
• The brand penetrated into smaller towns and sales volumes grew by
40%
 MATURITY
• The ‘Worm Controversy’ resulted in Cadbury’s brand image taking a
beating.
• Sales declined up to 30%.
• They had to recall a batch of chocolates. Cadbury rebuilt the trust of people
by launching project ‘Vishwas’in 2004.
• Redesign of Packaging
• With Bachchan they also launched their new positioning of “Kuch Meetha
Ho Jaaye” bringing in the tradition of celebrating a joyous occasion in
India with sweets and now Cadbury Dairy Milk in particular.
• The “Pehli Tareekh Hai” campaigns talked about the importance of
having Dairy Milk and celebrating on getting your pay on pay-day.
• “Shubh Aarambh” ads that have brought back the old charm of Cadbury
Dairy Milk with its very interesting insight of mixing the traditional with
the new age
 The overall market size, growth trends and future
projections in the world Market

Euromonitor predicts the industry will enjoy a 6% rise in revenues in

2014, delivering record global revenues of US$117bn. This robust
performance is driven by a 2.1% increase in volume, reflecting
growing appetite for chocolate in emerging markets. (Morris,2014 )
Consumption in World wide
10 8.5
8 7.2
Million Tons

5.8
6
4
2
0
1999 2009 2020
year
Sources:-
1. A taste of Future, KPMG international-Consumer Markets June 2014, By
John A. Morris
 CHANNEL DESIGN
• Distribution Structure: No. of Levels

• Selection Criteria for channel Partner

CHANNEL OF DISTRIBUTION OF CADBURY

Factory/Production
unit

Depot

C&F Agents

Re-Distributors

Retailers Modern
Wholesaler Trade

Consumers
SELECTION OF CHANNEL PARTNERS
RECRUITMENT
CHANNEL MEMBER MANAGEMENT

• Rewards: Monetary and Non-Monetary

• Target Setting & Monitoring

• Training & Capacity Building

• Cash Flow
 MONETARY BENEFITS
• General Trade Distributor Margin is around
4.75% and 1% is activity based(completion of
Monthly Sales Target)

• Modern Trade Distributor Margin is around 4.5%

and 0.5%

• Super Stockist Margin is around 2% and 1% of

market value
• Retailers Margin
Product Margin

Bournvita 9%

Oreo 13%

Tang 10%

Halls & Eclairs Pouch 15%

Halls & eclairs Jar 12%

Health Drinks 9%

Drinking Choclate 7.5%

Choclates worth Rs. 5-20 10%

Choclates worth morethan Rs. 20 14%

 MODERN TRADE MARGIN

• Big Bazaar has a direct account with Cadbury

and there are separate margins fixed for these
chains overall India by both of them mutually
Product Margin

Bournvita 9.45%

Choclates 11.03%

Tang 10.23%

Oreo 10.23%
Non-Monetary Benefits
• UDAAN: Foreign Trips to super stockists based on
performance
• Visicoolers can be given only in food stores and
Chemists where sales is more than 3000 per
week
• SMDs can be given in Top shops where Sales is
more than 2000 per week
• Mass market dispensers(Halls,Eclairs and
Bubaloo gum) are given to chemists,Paan tapris
• Barrow Dispensers given to small shops and Paan
Tapris
TARGET SETTING & MONITORING

• Monthly Targets set Separately General &

Modern Trade Distribution
• Incentives only after surpassing Targets
• Targets Sets as on data are:
General Trade: 80-90 Lakhs
Modern Trade: 10 Lakhs

• Monitoring Done by”Analysing Invoices”

generated by the distributors & through
company’s Salesforce
TRAINING &capacity building
 CASH FLOW
FLOW DISTRIBUTOR MAKES PAYMENT TO THE COMPANY ON A
WEEKLY BASIS.

THERE IS PAYMENT DONE THROUGH RTGS & PREPAID CHEQUES

TO THE COMPANY

THE DISTRIBUTOR–RETAILER CASH CYCLE VARIES FROM 1-7 DAYS.

IN MODERN TRADE THE CASH CYCLE IS OF 16DAYS TO 1 MONTH.

THE DISTRIBUTOR IS LIABLE TO PAY SALARY TO THE PCS BUT THE

MONTHLY INCENTIVES ARE GIVEN BY THE COMPANY
SALESFORCE STRUCTURE OF CADBURY

Branch Mgr

BCM (Branch
BLM (Branch BSM (Branch
Commercial HR Mgr
Logistic Mgr) Sales Mgr)
Mgr)

Area Sales Mgr Area Sales Mgr Area Sales Mgr Area Sales Mgr

Sales Engineer

Territory Sales
Super Stockist
In Charge

Interim Sales
Representative
SALES FORCE MOTIVATION

ANNUAL MEETINGS FOR DISTRIBUTORS

GIFT HAMPERS

"UDAAN" FOREIGN TRIP TO HIGH PERFORMING

SUPER STOCKIEST

LAST YEAR TRIP TO BANGKOK & MALAYSIA FOR

STOCKIEST

PREVIOUSLY TRIPS WERE TO THAILAND & DUBAI

 PURPLE CHAMP
DISTRIBUTOR'S SALES FORCE IS CALLED AS
PURPLE CHAMP.

THEY REPORT DIRECTLY TO TERRITORY SALES

INCHARGE (TSI).

USUALLY 10-12 PCS ARE APPOINTED BY A

DISTRIBUTOR.

EVERY PURPLE CHAMP IS ALLOTTED A SPECIFIC

ROUTE TO BE COVERED IN EVERY BEAT AND HIS
BEAT PLAN IS MADE FOR THE ENTIRE WEEK BY
THE TSI UNDER THE SUPERVISION OF HIS TSE
A DAY WITH PURPLE CHAMP
A DAY WITH PURPLE CHAMP
COMPANY INCENTIVES FOR PURPLE CHAMP

Sr. No Parameters MOP Metro

1 Overall Value Secondary Value 1200
Achievements

2 Focus Category Volume in tonnes 600

Volume
Achievement (only
one category)

3 Overall MSS 65.5% 1100

Improvement

4 Big hits 100% if both 1100

Achievement (2 Big 30% if one
Hits)

Total Incentives 4000/- Month

Transportation & Logistics

• Modes of transport

• Use of IT

• Role of Third Party

MODES OF TRANSPORT
Mainly Roadways
Production Site

Insulated Vans

Distributor

Tata Ace/ Magic

Retailer
USE OF IT & DOCUMENTATION
• The invoice is generated by the company and the stock is sent along with the invoice and a
copy of it for the distributor.

• WINOMKAR is a software where all the data and reports are maintained and is made
available for the ASMs, the BMs and SE's(Limited Access) online for making further
decisions.

• Provides all the data, Performance reports Beat Wise, Outleat wise Sales Trends over the
years and months and Inventory Report
(MIS of company developed by Pune based ‘Heerasoft’)

• Documentation is required once a retailer enrolls for a display scheme or receives a visicooler
or SMD or Fridge by the company

• Meranet is a software through which the SO reports everything on a daily basis to the ASM.

• Daily sales figures get synced here and the SO can view the summary at a glance.

• SO also mandatorily has to mail it to the ASM on a daily basis.

THIRD PARTY ROLE

Transportation

Audit

Promotion

Hiring and
Payment