Cadbury India
Cadbury India
Cadbury India
Industry Analysis
Current Trends :
Socio-economic changes are taking place. Both family incomes and population as well as urbanization are on increase. Significant growth in middle class. Quantified data on FMCG usage increased.
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Major Players in this Industry:
Cadbury Australia Ltd Private owned US group MARS-25% Swiss based NESTLE -16%
Main Competition :
Nestle and Mars(now called master foods)
Tangibility Spectrum:
Tangible Goods.
Typical Product
Customer Expectation:
Health and wellbeing. Naturalness Good value and high quality.
Sustainability and environmental Friendliness.
Snacks
Beverages
Candy
Gums
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Customer Involvement : Interviewed over a quarter of a million people in 47 markets and developed a unique consumer framework, called Pathfinder.
Marketing Channels
Product is marketed through Sales Personnel . Channel Structure : 2 Level
MANUFACTU RER
DISTRIBUTOR
RETAILER
USER
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Channel Management:
In India Channel is managed through 4 sales office and 1 Head office In Mumbai.
Channel Conflicts:
External Factors Business conflict :Cadbury and Future Group price margin conflict. No other conflicts.
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Pricing Strategies:
1. Profit maximization in the short term. 2. Profit optimization in the long run. 3. A minimum return on investment and sales turn over. 4. Deeper penetration of the market. 5. Entering new markets.
6. Internal and External Factors.
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Compensation Plan :
DIRECT SALES PERSONNEL INDIRECT PAYROLL OF COMPANY PILOTS (PURPLE CHAMPION)
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Motivating Sales Personnel :
Incentive programmes On the job and off the job training. Contests and bonus
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Designing territories and allocating sales
Is usually done by Senior Sales Officer.
35 * 6 outlets monthly
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Managing Sales Evaluation
Immediate Line Manager with HR Manager.
Warehousing management :
Third Party called DSL.
Logistic Cost
1-2 % of sales Turnover.
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Payment terms :
Demand Draft Advance cheque
Debtors Control:
As such no debtors if any issue then handled in a legal way.
Industry Section
Strengths: 9.9% of global market share and above 70% of Indian market share. High financial strength . Strong manufacturing competence, Understanding of consumer
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Weakness: Dependent on the confectionery and beverage market. Opportunities: The confectionary category growing solidly at around 5% per year and in double digits in case of emerging markets. Innovation is the key driver.
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Future Estimation : A strong Foundation. Growing with the market. Functional advantage. Affordable indulgence. Importing success