Cadbury Marketing Mix(focuses on cadbury india ltd)

23
BY RAGHAVENDRA MISHRA MARKETING MIX CADBURY

description

this is a project on marketing mix of companyi have taken materials from many resourses so there may be similarity with some ones.

Transcript of Cadbury Marketing Mix(focuses on cadbury india ltd)

Page 1: Cadbury Marketing Mix(focuses on cadbury india ltd)

BYRAGHAVENDRA MISHRA

MARKETING MIXCADBURY

INTRODUCTION

bull CADBURY IS A LEADING GLOBAL CONFECTIONERY COMPANY WITH AN OUTSTANDING PORTFOLIO OF CHOCOLATE GUM AND CANDY BRANDS IT EMPLOY AROUND 50000 PEOPLE AND HAVE DIRECT OPERATIONS IN OVER 60 COUNTRIES SELLING PRODUCTS IN ALMOST EVERY COUNTRY AROUND THE WORLD CADBURYIT IS A BRITISH CONFECTIONERY AND BEVERAGE COMPANY WITH ITS HEADQUARTERS IN LONDON UNITED KINGDOM

HISTORY

bull Cadbury is a very old trusted name It all started in Birmingham in England when John

Cadbury started his family grocery shop with side business of cocoa and chocolate products in around 1824 His two sons Richard and George expanded their family business of cocoa and chocolate Bournville a town near Birmingham was build by them as a part of expansion of their business

MARKETING OBJECTIVES

bull GROW SHAREHOLDER VALUEhellipOVER THE LONG TERM

bull CADBURY IN EVERY POCKETbull MARKETING STRATEGY IS AIMED AT

ACHIEVING THIS VISION BY GROWING THE MARKET BY APPROPRIATE PRICING STRATEGY THAT WILL CREATE A MASS MARKET AND TO HAVE OFFERINGS IN EVERY CATEGORY TO WIDEN THE MARKET

TARGET MARKET

bull THE INDIAN CHOCOLATE MARKET IS VALUED AT RS 650 CRORES (IE RS 650 BILLION) A YEAR THE INDIAN CHOCOLATE BAZAAR IS ESTIMATED TO BE IN THE REGION OF 22000-24000 TONNES PER ANNUM AND IS VALUED IN EXCESS OF US$ 80 MILLION

bull INDIAS METROS PROVING TO BE THE BIG DRAW CLOCKING PENETRATION IN EXCESS OF 15 PERCENT NEXT COMES THE RELATIVELY SMALLER CITIESTOWNS WHERE CONSUMPTION LAGS AT ABOUT 8 PERCENT CHOCOLATES ARE A LUXURY IN THE RURAL SEGMENT WHICH EXPLAINS THE MERE 2 PERCENT PENETRATION IN VILLAGES THE MARKET PRESENTLY HAS CLOSE TO 60MN CONSUMERS AND THEY ARE MAINLY LOCATED IN THE URBAN AREAS

MARKET SEGMENTATION

bull MARKET SEGMENTATION IS THE PROCESS IN MARKETING OF GROUPING A MARKET (IE CUSTOMERS) INTO SMALLER SUBGROUPS THESE MARKETS ARE OFTEN TERMED NICHE MARKETS OR SPECIALTY MARKETS

bull THE PURPOSE OF SEGMENTATION IS TO IDENTIFY AND TARGET PRIME CUSTOMER GROUPS (EG THE 20 THAT ACCOUNT FOR 80 OF YOUR SALES) SO THAT YOU GET THE MAXIMUM RETURN FROM A LIMITED MARKETING BUDGET

GEOGRAPHIC SEGMENTATION

bull THE MARKET PRESENTLY HAS CLOSE TO 60MN CONSUMERS AND THEY ARE MAINLY LOCATED IN THE

bull URBAN AREAS GROWTH WILL MAINLY COME THROUGH AN INCREASE IN PENETRATION AS INCOME LEVELS IMPROVE

bull HOWEVER ALMOST ALL OF THIS CONSUMPTION IS IN THE CITIES AND RURAL INDIA IS NEARLY lsquoCHOCOLATE-FREErsquo BUT THE FACT IS THAT THREE QUARTERS OF INDIANS LIVE IN RURAL AREAS ldquoAVERAGE SUMMERTIME TEMPERATURES REACH 43 DEGREES CELSIUS IN INDIA CHOCOLATE MELTS AT BODY TEMPERATURE OF 36 DEGREESrdquo

DEMOGRAPHIC SEGMENTATION

AGE-

bull CHILDREN - 55

bull ADULTS - 12

bull YOUNG ADULTS - 33

bull INCOME LEVEL- IN THE MIDDLE AND HIGHER INCOME GROUPS

MARKETING MIX

bull THE TOOLS AVAILABLE TO A BUSINESS TO GAIN THE REACTION IT IS SEEKING FROM ITS TARGET MARKET IN RELATION TO ITS MARKETING OBJECTIVES IT IS THE GENERALLY ACCEPTED AS THE USE AND SPECIFICATION OF THE ldquoFOUR PrsquoSrdquo DESCRIBING THE STRATEGIC POSITION OF A PRODUCT IN THE MARKETPLACE

bull PRODUCTbull PRICEbull PLACEbull PROMOTION

PRODUCT

bull PRODUCT VARIANTS bull CURRENTLY CADBURY INDIA OPERATES IN

FOUR CATEGORIES VIZ CHOCOLATE CONFECTIONERY MILK FOOD DRINKS CANDY AND GUM CATEGORY

bull CADBURY DAIRY MILK 5 STAR PERK EacuteCLAIRS AND CELEBRATIONS

bull CANDY CATEGORY HALLSbull BUBBLE GUM BRAND BUBBALOObull BOURNVITA - THE LEADING MALTED FOOD

DRINK (MFD)

PRODUCT INNOVATIONS bull 1048766 5 STAR

bull CONSUMER FEEDBACK SUGGESTED THAT THE OLD 5 STAR WAS TOO CHEWY AND PEOPLE COMPLAINED OF IT STICKING TO THEIR TEETH IT WAS MADE SOFTER AND MELTED EASILY IN THE MOUTH amp INTRODUCED AS 5 STAR CRUNCHY

bull 1048766 PERK

bull PERK WAS MADE MUCH LIGHTER AND THE SIZE OF THE BAR INCREASED TO MATCH NESTLErsquoS MUNCH PERK HAD BEEN UNDER FIRE FROM NESTLErsquoS DEADLY DUO OF KITKAT AND MUNCH BUT AFTER THE RELAUNCH ITS MARKETSHARE IS TWO PER CENT MORE THAN KITKATrsquoS AND THE FIVE-YEAR-OLD BRAND IS NOW ALMOST AS BIG AS THE DECADES-OLD 5 STAR IN SIZE BOTH IN THE REGION OF RS 50-55 CRORE

bull 1048766 HEROES

bull PACKAGING INNOVATION HAS PLAYED A VITAL ROLE IN REVAMPING OF VARIOUS CADBURYrsquoS BRANDSHEROES BRAND IS SIMPLY A MULTI-PACK WITH MINIATURES OF ALL ITS MOST POPULAR BRANDS IN A SINGLEOUTER CASE

PACKAGINGbull

THE PACKAGING WAS CHANGED TO INCLUDE A SEALED PLASTIC WRAPPER INSIDE THE OUTSIDE FOIL CADBURYrsquoS LAUNCHED A NEW PURITY-SEALED PACKAGING FOR ITS FLAGSHIP PRODUCT CADBURY DAIRY MILK OVER THE NEXT FEW WEEKS CADBURY WILL WORK TOWARDS INTRODUCING EITHER A HEATSEALED OR A FLOW-PACK PACKAGING THAT OFFERS A HIGH LEVEL OF RESISTANCE TO INFESTATION FROM

bull IMPROPER STORAGE CADBURY INVESTED NEARLY RS 25 CRORE (RS 250 MILLION) THIS YEAR ON NEW MACHINERY FOR THE IMPROVED PACKAGING

PRICE

bull THE RS 5 PRICE POINT ACCOUNTS FOR MORE THAN HALF OF ALL CHOCOLATE SALES

bull TODAY CADBURY HAS FOUR PRODUCTS AT THIS PRICE POINT CDM PERK 5 STAR AND GEMS mdash AND THE FIVE-RUPEE CDM BAR IS ITS SINGLE LARGEST-SELLING SKU

bull ldquoTHIS IS A POTENT PRICE POINT IN INDIA BECAUSE THE AVERAGE PURCHASING POWER IS ABYSMALLY LOWrdquo IS WHAT INDUSTRY ANALYST HAVE TO SAY

VOLUME LED GROWTH STRATEGY

bull CADBURY HAS FOLLOWED A WELL-PLANNED STRATEGY OF FUELLING VOLUME GROWTH BY INTRODUCING SMALLER UNIT PACKS AT LOWER PRICE POINTS SIMULTANEOUSLY THE COMPANY SEEMS TO HAVE ASTUTELY JUGGLED WITH THE LARGER PACK SIZES AND RAISED PRICES TO A DEGREE HIGHER THAN WHAT APPEARS AT FACE

HIRES AT KEARNEY TO CURB COSTS

bull CADBURY INDIA APPOINTED MANAGEMENT CONSULTANCY FIRM AT KEARNEY TO DRAW UP A STRATEGY TO CONTROL COSTS IN SEVERAL AREAS INCLUDING SOURCING OF RAW MATERIALS AND PACKAGING

bull THE CONSULTANCY FIRM WILL ALSO LOOK AT THE SOURCING OF DIRECT AND INDIRECT MATERIALS LIKE RENEGOTIATING WITH SUPPLIERS FOR LONGER TERM CONTRACTS AND VENDOR MANAGEMENT OTHER COSTS (INDIRECT EXPENSES) LIKE TRAVEL COSTS AND HOTELS WERE ALSO BEING STUDIED

EARNINGS SENSITIVITY FACTORS

bull COCOA BEAN PRICES DOMESTIC AS WELL AS INTERNATIONAL PRICES OF KEY RAW MATERIAL - COCOA HAVE SIGNIFICANT IMPACT ON MARGINS

bull EXCISE DUTIES CHANGES IN EXCISE LEVIED ON MALT AND CHOCOLATE INFLUENCES END PRODUCT PRICES AND THEREBY VOLUME GROWTH AS WELL AS MARGINS

bull CHANGES IN CUSTOM DUTIES AND FOREIGN EXCHANGE FLUCTUATION AS 20 OF RAW MATERIAL IS IMPORTED CHANGES IN CUSTOM DUTIES amp FOREIGN EXCHANGE FLUCTUATIONS HAVE SIGNIFICANT IMPACT ON THE FINAL COST OF THE PRODUCT

bull COMPETITION FROM MNCS LIKE NESTLE AS WELL AS IMPORTED BRANDS INCREASING COMPETITION PUTS PRESSURE ON ADVERTISEMENT BUDGET AND MARGINS HOWEVER ON THE POSITIVE SIDE IT HELPS IN EXPANDING THE MARKET

PLACE

bull PLANT LOCATIONSbull 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 MUMBAITHESE FACTORIES CHURN OUT CLOSE TO 8000 TONNES OF CHOCOLATE ANNUALLY

DISTRIBUTIONbull CHOCOLATE NEEDS TO BE DISTRIBUTED DIRECTLY UNLIKE

OTHER FMCG PRODUCTS LIKE SOAPS ANDbull DETERGENTS WHICH CAN BE SOLD THROUGH A

WHOLESALE NETWORK 90 OF CHOCOLATE PRODUCTS ARE SOLD

bull DIRECTLY TO RETAILERS bull CADBURYS DISTRIBUTION NETWORK USED TO

ENCOMPASSES 2100 DISTRIBUTORS AND 450000 RETAILERS bull TO AVOID CANNIBALIZATION OF ITS HIGHER PRICED

PRODUCTS FROM LOWER PRICED ONES CADBURY ISbull SETTING UP TWO SEPARATE DISTRIBUTION CHANNELS ndash

ONE FOR CORE BUSINESS amp OTHER FOR MASS MARKETS

NATURE OF RETAIL OUTLET

bull CHOCOLATES ARE PRIMARILY SOLD THROUGH KIRANA STORES GIFT STORES MEDICAL STORES CANTEENS

bull PAN-BIDI STORES BAKERIES SWEET SHOPS ETC THIS IS TRUE FOR CHOCOLATES ALSO THE SPACE ALLOCATED FOR

bull THE CHOCOLATES WAS LESS WHEN COMPARED TO THE TOTAL AREA OF THE SHOP OF THE SPACE ALLOCATED FOR

bull CHOCOLATES CADBURY BRANDS OCCUPIED MORE THAN NESTLE BRANDS

PROMOTIONbull ADVERTISEMENTSbull THE ADVERTISEMENT AIMED AT CONVEYING THE IDEA THAT NO

SPECIFIC OCCASION IS REQUIRED FOR CONSUMING CDM

bull CELEBRITIES ENDORSEMENTS

bull CADBURY ROPED IN PREITY ZINTA FOR ITS PERK BRAND PREITY ZINTArsquoS ANGELIC DIMPLES LAID THE

bull FOUNDATION FOR WHAT WOULD BECOME THE INDIAN TEENAGERrsquoS FAVORITE SNACK AFTER THIS CAMPAIGN

bull PERKrsquoS SALE SURGED

bull THE BIG lsquoBrsquo FACTORbull THE BIG FACTOR THAT HAS PUSHED UP CDM SALES IS THE

AMITABH BACHCHAN CAMPAIGN CADBURY APPOINTED AMITABH BACHCHAN AS ITS BRAND AMBASSADOR

CHOCOLATE ADS SHIFT FOCUS FROM KIDS TO YOUTH

bull INDIAN CHOCOLATE MARKET IS ALMOST TOTALLY DEPENDED ON PURCHASES OF KIDS

bull WHILE CADBURY IS TRYING TO SELL INDULGENCE TO ADULTS KIT KAT IS SELLING RITUALISTIC BREAK TO

bull TEENAGERS YOUNG ADULTS THIS IS REFLECTED IN THE CHANGING ADVERTISING PATTERNS ACROSS DIFFERENT

bull CHANNELS

CONCLUSION WHEN PRICED AT EVEN RS 2500KG WHILE THERE ARE PLACES IN

INDIA WHERE PEOPLE HAVE NEVER EVEN TASTED CHOCOLATES ONCEUNDERSTANDING THE CONSUMER DEMANDS AND MAINTAINING THE QUALITY WILL BE ESSENTIALCOMPANIES WILL HAVE TO KEEP THEMSELVES ABREAST WITH THE DEVELOPMENTS IN OTHER PARTS OF THE WORLDPRICING IS THE KEY FOR COMPANIES TO MAKE THEIR PRODUCT REACH CONSUMERSrsquo POCKETS RIGHTPRICING WILL MAKE OR BREAK THE PRODUCT SUCCESS ECONOMICAL DISTRIBUTION OF THE PRODUCTS WILLALSO BE EQUALLY IMPORTANTTHE COMPANIESrsquo STRATEGIES SHOULD FOCUS ON DRIVING SALES THROUGH A RIGHT PRODUCT MIXEFFICIENT MATERIALS PROCUREMENT REDUCED WASTAGES INCREASED FACTORY EFFICIENCIES AND IMPROVED SUPPLY CHAIN MANAGEMENTTHERErsquoS AN IMMENSE SCOPE FOR GROWTH OF CHOCOLATE INDUSTRY IN INDIA - GEOGRAPHICALLY AS WELLAS IN THE PRODUCT OFFERING

BIBLIOGRAPHY

bull WWWCADBURYCOUKbull WWWCHOCOLATEREVIEWCOUKbull WWW CADBURYS CHWEPPESCOMbull WWWWIKIPEDIAORGbull WWWCADBURYCOMbull WWWOPPAPERSCOM REFERENCES-bull PHILIP KOTLER

  • BY RAGHAVENDRA MISHRA
  • INTRODUCTION
  • HISTORY
  • MARKETING OBJECTIVES
  • TARGET MARKET
  • MARKET SEGMENTATION
  • GEOGRAPHIC SEGMENTATION
  • DEMOGRAPHIC SEGMENTATION
  • MARKETING MIX
  • PRODUCT
  • PRODUCT INNOVATIONS
  • PACKAGING
  • PRICE
  • VOLUME LED GROWTH STRATEGY
  • HIRES AT KEARNEY TO CURB COSTS
  • EARNINGS SENSITIVITY FACTORS
  • PLACE
  • DISTRIBUTION
  • NATURE OF RETAIL OUTLET
  • PROMOTION
  • CHOCOLATE ADS SHIFT FOCUS FROM KIDS TO YOUTH
  • CONCLUSION
  • BIBLIOGRAPHY
Page 2: Cadbury Marketing Mix(focuses on cadbury india ltd)

INTRODUCTION

bull CADBURY IS A LEADING GLOBAL CONFECTIONERY COMPANY WITH AN OUTSTANDING PORTFOLIO OF CHOCOLATE GUM AND CANDY BRANDS IT EMPLOY AROUND 50000 PEOPLE AND HAVE DIRECT OPERATIONS IN OVER 60 COUNTRIES SELLING PRODUCTS IN ALMOST EVERY COUNTRY AROUND THE WORLD CADBURYIT IS A BRITISH CONFECTIONERY AND BEVERAGE COMPANY WITH ITS HEADQUARTERS IN LONDON UNITED KINGDOM

HISTORY

bull Cadbury is a very old trusted name It all started in Birmingham in England when John

Cadbury started his family grocery shop with side business of cocoa and chocolate products in around 1824 His two sons Richard and George expanded their family business of cocoa and chocolate Bournville a town near Birmingham was build by them as a part of expansion of their business

MARKETING OBJECTIVES

bull GROW SHAREHOLDER VALUEhellipOVER THE LONG TERM

bull CADBURY IN EVERY POCKETbull MARKETING STRATEGY IS AIMED AT

ACHIEVING THIS VISION BY GROWING THE MARKET BY APPROPRIATE PRICING STRATEGY THAT WILL CREATE A MASS MARKET AND TO HAVE OFFERINGS IN EVERY CATEGORY TO WIDEN THE MARKET

TARGET MARKET

bull THE INDIAN CHOCOLATE MARKET IS VALUED AT RS 650 CRORES (IE RS 650 BILLION) A YEAR THE INDIAN CHOCOLATE BAZAAR IS ESTIMATED TO BE IN THE REGION OF 22000-24000 TONNES PER ANNUM AND IS VALUED IN EXCESS OF US$ 80 MILLION

bull INDIAS METROS PROVING TO BE THE BIG DRAW CLOCKING PENETRATION IN EXCESS OF 15 PERCENT NEXT COMES THE RELATIVELY SMALLER CITIESTOWNS WHERE CONSUMPTION LAGS AT ABOUT 8 PERCENT CHOCOLATES ARE A LUXURY IN THE RURAL SEGMENT WHICH EXPLAINS THE MERE 2 PERCENT PENETRATION IN VILLAGES THE MARKET PRESENTLY HAS CLOSE TO 60MN CONSUMERS AND THEY ARE MAINLY LOCATED IN THE URBAN AREAS

MARKET SEGMENTATION

bull MARKET SEGMENTATION IS THE PROCESS IN MARKETING OF GROUPING A MARKET (IE CUSTOMERS) INTO SMALLER SUBGROUPS THESE MARKETS ARE OFTEN TERMED NICHE MARKETS OR SPECIALTY MARKETS

bull THE PURPOSE OF SEGMENTATION IS TO IDENTIFY AND TARGET PRIME CUSTOMER GROUPS (EG THE 20 THAT ACCOUNT FOR 80 OF YOUR SALES) SO THAT YOU GET THE MAXIMUM RETURN FROM A LIMITED MARKETING BUDGET

GEOGRAPHIC SEGMENTATION

bull THE MARKET PRESENTLY HAS CLOSE TO 60MN CONSUMERS AND THEY ARE MAINLY LOCATED IN THE

bull URBAN AREAS GROWTH WILL MAINLY COME THROUGH AN INCREASE IN PENETRATION AS INCOME LEVELS IMPROVE

bull HOWEVER ALMOST ALL OF THIS CONSUMPTION IS IN THE CITIES AND RURAL INDIA IS NEARLY lsquoCHOCOLATE-FREErsquo BUT THE FACT IS THAT THREE QUARTERS OF INDIANS LIVE IN RURAL AREAS ldquoAVERAGE SUMMERTIME TEMPERATURES REACH 43 DEGREES CELSIUS IN INDIA CHOCOLATE MELTS AT BODY TEMPERATURE OF 36 DEGREESrdquo

DEMOGRAPHIC SEGMENTATION

AGE-

bull CHILDREN - 55

bull ADULTS - 12

bull YOUNG ADULTS - 33

bull INCOME LEVEL- IN THE MIDDLE AND HIGHER INCOME GROUPS

MARKETING MIX

bull THE TOOLS AVAILABLE TO A BUSINESS TO GAIN THE REACTION IT IS SEEKING FROM ITS TARGET MARKET IN RELATION TO ITS MARKETING OBJECTIVES IT IS THE GENERALLY ACCEPTED AS THE USE AND SPECIFICATION OF THE ldquoFOUR PrsquoSrdquo DESCRIBING THE STRATEGIC POSITION OF A PRODUCT IN THE MARKETPLACE

bull PRODUCTbull PRICEbull PLACEbull PROMOTION

PRODUCT

bull PRODUCT VARIANTS bull CURRENTLY CADBURY INDIA OPERATES IN

FOUR CATEGORIES VIZ CHOCOLATE CONFECTIONERY MILK FOOD DRINKS CANDY AND GUM CATEGORY

bull CADBURY DAIRY MILK 5 STAR PERK EacuteCLAIRS AND CELEBRATIONS

bull CANDY CATEGORY HALLSbull BUBBLE GUM BRAND BUBBALOObull BOURNVITA - THE LEADING MALTED FOOD

DRINK (MFD)

PRODUCT INNOVATIONS bull 1048766 5 STAR

bull CONSUMER FEEDBACK SUGGESTED THAT THE OLD 5 STAR WAS TOO CHEWY AND PEOPLE COMPLAINED OF IT STICKING TO THEIR TEETH IT WAS MADE SOFTER AND MELTED EASILY IN THE MOUTH amp INTRODUCED AS 5 STAR CRUNCHY

bull 1048766 PERK

bull PERK WAS MADE MUCH LIGHTER AND THE SIZE OF THE BAR INCREASED TO MATCH NESTLErsquoS MUNCH PERK HAD BEEN UNDER FIRE FROM NESTLErsquoS DEADLY DUO OF KITKAT AND MUNCH BUT AFTER THE RELAUNCH ITS MARKETSHARE IS TWO PER CENT MORE THAN KITKATrsquoS AND THE FIVE-YEAR-OLD BRAND IS NOW ALMOST AS BIG AS THE DECADES-OLD 5 STAR IN SIZE BOTH IN THE REGION OF RS 50-55 CRORE

bull 1048766 HEROES

bull PACKAGING INNOVATION HAS PLAYED A VITAL ROLE IN REVAMPING OF VARIOUS CADBURYrsquoS BRANDSHEROES BRAND IS SIMPLY A MULTI-PACK WITH MINIATURES OF ALL ITS MOST POPULAR BRANDS IN A SINGLEOUTER CASE

PACKAGINGbull

THE PACKAGING WAS CHANGED TO INCLUDE A SEALED PLASTIC WRAPPER INSIDE THE OUTSIDE FOIL CADBURYrsquoS LAUNCHED A NEW PURITY-SEALED PACKAGING FOR ITS FLAGSHIP PRODUCT CADBURY DAIRY MILK OVER THE NEXT FEW WEEKS CADBURY WILL WORK TOWARDS INTRODUCING EITHER A HEATSEALED OR A FLOW-PACK PACKAGING THAT OFFERS A HIGH LEVEL OF RESISTANCE TO INFESTATION FROM

bull IMPROPER STORAGE CADBURY INVESTED NEARLY RS 25 CRORE (RS 250 MILLION) THIS YEAR ON NEW MACHINERY FOR THE IMPROVED PACKAGING

PRICE

bull THE RS 5 PRICE POINT ACCOUNTS FOR MORE THAN HALF OF ALL CHOCOLATE SALES

bull TODAY CADBURY HAS FOUR PRODUCTS AT THIS PRICE POINT CDM PERK 5 STAR AND GEMS mdash AND THE FIVE-RUPEE CDM BAR IS ITS SINGLE LARGEST-SELLING SKU

bull ldquoTHIS IS A POTENT PRICE POINT IN INDIA BECAUSE THE AVERAGE PURCHASING POWER IS ABYSMALLY LOWrdquo IS WHAT INDUSTRY ANALYST HAVE TO SAY

VOLUME LED GROWTH STRATEGY

bull CADBURY HAS FOLLOWED A WELL-PLANNED STRATEGY OF FUELLING VOLUME GROWTH BY INTRODUCING SMALLER UNIT PACKS AT LOWER PRICE POINTS SIMULTANEOUSLY THE COMPANY SEEMS TO HAVE ASTUTELY JUGGLED WITH THE LARGER PACK SIZES AND RAISED PRICES TO A DEGREE HIGHER THAN WHAT APPEARS AT FACE

HIRES AT KEARNEY TO CURB COSTS

bull CADBURY INDIA APPOINTED MANAGEMENT CONSULTANCY FIRM AT KEARNEY TO DRAW UP A STRATEGY TO CONTROL COSTS IN SEVERAL AREAS INCLUDING SOURCING OF RAW MATERIALS AND PACKAGING

bull THE CONSULTANCY FIRM WILL ALSO LOOK AT THE SOURCING OF DIRECT AND INDIRECT MATERIALS LIKE RENEGOTIATING WITH SUPPLIERS FOR LONGER TERM CONTRACTS AND VENDOR MANAGEMENT OTHER COSTS (INDIRECT EXPENSES) LIKE TRAVEL COSTS AND HOTELS WERE ALSO BEING STUDIED

EARNINGS SENSITIVITY FACTORS

bull COCOA BEAN PRICES DOMESTIC AS WELL AS INTERNATIONAL PRICES OF KEY RAW MATERIAL - COCOA HAVE SIGNIFICANT IMPACT ON MARGINS

bull EXCISE DUTIES CHANGES IN EXCISE LEVIED ON MALT AND CHOCOLATE INFLUENCES END PRODUCT PRICES AND THEREBY VOLUME GROWTH AS WELL AS MARGINS

bull CHANGES IN CUSTOM DUTIES AND FOREIGN EXCHANGE FLUCTUATION AS 20 OF RAW MATERIAL IS IMPORTED CHANGES IN CUSTOM DUTIES amp FOREIGN EXCHANGE FLUCTUATIONS HAVE SIGNIFICANT IMPACT ON THE FINAL COST OF THE PRODUCT

bull COMPETITION FROM MNCS LIKE NESTLE AS WELL AS IMPORTED BRANDS INCREASING COMPETITION PUTS PRESSURE ON ADVERTISEMENT BUDGET AND MARGINS HOWEVER ON THE POSITIVE SIDE IT HELPS IN EXPANDING THE MARKET

PLACE

bull PLANT LOCATIONSbull 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 MUMBAITHESE FACTORIES CHURN OUT CLOSE TO 8000 TONNES OF CHOCOLATE ANNUALLY

DISTRIBUTIONbull CHOCOLATE NEEDS TO BE DISTRIBUTED DIRECTLY UNLIKE

OTHER FMCG PRODUCTS LIKE SOAPS ANDbull DETERGENTS WHICH CAN BE SOLD THROUGH A

WHOLESALE NETWORK 90 OF CHOCOLATE PRODUCTS ARE SOLD

bull DIRECTLY TO RETAILERS bull CADBURYS DISTRIBUTION NETWORK USED TO

ENCOMPASSES 2100 DISTRIBUTORS AND 450000 RETAILERS bull TO AVOID CANNIBALIZATION OF ITS HIGHER PRICED

PRODUCTS FROM LOWER PRICED ONES CADBURY ISbull SETTING UP TWO SEPARATE DISTRIBUTION CHANNELS ndash

ONE FOR CORE BUSINESS amp OTHER FOR MASS MARKETS

NATURE OF RETAIL OUTLET

bull CHOCOLATES ARE PRIMARILY SOLD THROUGH KIRANA STORES GIFT STORES MEDICAL STORES CANTEENS

bull PAN-BIDI STORES BAKERIES SWEET SHOPS ETC THIS IS TRUE FOR CHOCOLATES ALSO THE SPACE ALLOCATED FOR

bull THE CHOCOLATES WAS LESS WHEN COMPARED TO THE TOTAL AREA OF THE SHOP OF THE SPACE ALLOCATED FOR

bull CHOCOLATES CADBURY BRANDS OCCUPIED MORE THAN NESTLE BRANDS

PROMOTIONbull ADVERTISEMENTSbull THE ADVERTISEMENT AIMED AT CONVEYING THE IDEA THAT NO

SPECIFIC OCCASION IS REQUIRED FOR CONSUMING CDM

bull CELEBRITIES ENDORSEMENTS

bull CADBURY ROPED IN PREITY ZINTA FOR ITS PERK BRAND PREITY ZINTArsquoS ANGELIC DIMPLES LAID THE

bull FOUNDATION FOR WHAT WOULD BECOME THE INDIAN TEENAGERrsquoS FAVORITE SNACK AFTER THIS CAMPAIGN

bull PERKrsquoS SALE SURGED

bull THE BIG lsquoBrsquo FACTORbull THE BIG FACTOR THAT HAS PUSHED UP CDM SALES IS THE

AMITABH BACHCHAN CAMPAIGN CADBURY APPOINTED AMITABH BACHCHAN AS ITS BRAND AMBASSADOR

CHOCOLATE ADS SHIFT FOCUS FROM KIDS TO YOUTH

bull INDIAN CHOCOLATE MARKET IS ALMOST TOTALLY DEPENDED ON PURCHASES OF KIDS

bull WHILE CADBURY IS TRYING TO SELL INDULGENCE TO ADULTS KIT KAT IS SELLING RITUALISTIC BREAK TO

bull TEENAGERS YOUNG ADULTS THIS IS REFLECTED IN THE CHANGING ADVERTISING PATTERNS ACROSS DIFFERENT

bull CHANNELS

CONCLUSION WHEN PRICED AT EVEN RS 2500KG WHILE THERE ARE PLACES IN

INDIA WHERE PEOPLE HAVE NEVER EVEN TASTED CHOCOLATES ONCEUNDERSTANDING THE CONSUMER DEMANDS AND MAINTAINING THE QUALITY WILL BE ESSENTIALCOMPANIES WILL HAVE TO KEEP THEMSELVES ABREAST WITH THE DEVELOPMENTS IN OTHER PARTS OF THE WORLDPRICING IS THE KEY FOR COMPANIES TO MAKE THEIR PRODUCT REACH CONSUMERSrsquo POCKETS RIGHTPRICING WILL MAKE OR BREAK THE PRODUCT SUCCESS ECONOMICAL DISTRIBUTION OF THE PRODUCTS WILLALSO BE EQUALLY IMPORTANTTHE COMPANIESrsquo STRATEGIES SHOULD FOCUS ON DRIVING SALES THROUGH A RIGHT PRODUCT MIXEFFICIENT MATERIALS PROCUREMENT REDUCED WASTAGES INCREASED FACTORY EFFICIENCIES AND IMPROVED SUPPLY CHAIN MANAGEMENTTHERErsquoS AN IMMENSE SCOPE FOR GROWTH OF CHOCOLATE INDUSTRY IN INDIA - GEOGRAPHICALLY AS WELLAS IN THE PRODUCT OFFERING

BIBLIOGRAPHY

bull WWWCADBURYCOUKbull WWWCHOCOLATEREVIEWCOUKbull WWW CADBURYS CHWEPPESCOMbull WWWWIKIPEDIAORGbull WWWCADBURYCOMbull WWWOPPAPERSCOM REFERENCES-bull PHILIP KOTLER

  • BY RAGHAVENDRA MISHRA
  • INTRODUCTION
  • HISTORY
  • MARKETING OBJECTIVES
  • TARGET MARKET
  • MARKET SEGMENTATION
  • GEOGRAPHIC SEGMENTATION
  • DEMOGRAPHIC SEGMENTATION
  • MARKETING MIX
  • PRODUCT
  • PRODUCT INNOVATIONS
  • PACKAGING
  • PRICE
  • VOLUME LED GROWTH STRATEGY
  • HIRES AT KEARNEY TO CURB COSTS
  • EARNINGS SENSITIVITY FACTORS
  • PLACE
  • DISTRIBUTION
  • NATURE OF RETAIL OUTLET
  • PROMOTION
  • CHOCOLATE ADS SHIFT FOCUS FROM KIDS TO YOUTH
  • CONCLUSION
  • BIBLIOGRAPHY
Page 3: Cadbury Marketing Mix(focuses on cadbury india ltd)

HISTORY

bull Cadbury is a very old trusted name It all started in Birmingham in England when John

Cadbury started his family grocery shop with side business of cocoa and chocolate products in around 1824 His two sons Richard and George expanded their family business of cocoa and chocolate Bournville a town near Birmingham was build by them as a part of expansion of their business

MARKETING OBJECTIVES

bull GROW SHAREHOLDER VALUEhellipOVER THE LONG TERM

bull CADBURY IN EVERY POCKETbull MARKETING STRATEGY IS AIMED AT

ACHIEVING THIS VISION BY GROWING THE MARKET BY APPROPRIATE PRICING STRATEGY THAT WILL CREATE A MASS MARKET AND TO HAVE OFFERINGS IN EVERY CATEGORY TO WIDEN THE MARKET

TARGET MARKET

bull THE INDIAN CHOCOLATE MARKET IS VALUED AT RS 650 CRORES (IE RS 650 BILLION) A YEAR THE INDIAN CHOCOLATE BAZAAR IS ESTIMATED TO BE IN THE REGION OF 22000-24000 TONNES PER ANNUM AND IS VALUED IN EXCESS OF US$ 80 MILLION

bull INDIAS METROS PROVING TO BE THE BIG DRAW CLOCKING PENETRATION IN EXCESS OF 15 PERCENT NEXT COMES THE RELATIVELY SMALLER CITIESTOWNS WHERE CONSUMPTION LAGS AT ABOUT 8 PERCENT CHOCOLATES ARE A LUXURY IN THE RURAL SEGMENT WHICH EXPLAINS THE MERE 2 PERCENT PENETRATION IN VILLAGES THE MARKET PRESENTLY HAS CLOSE TO 60MN CONSUMERS AND THEY ARE MAINLY LOCATED IN THE URBAN AREAS

MARKET SEGMENTATION

bull MARKET SEGMENTATION IS THE PROCESS IN MARKETING OF GROUPING A MARKET (IE CUSTOMERS) INTO SMALLER SUBGROUPS THESE MARKETS ARE OFTEN TERMED NICHE MARKETS OR SPECIALTY MARKETS

bull THE PURPOSE OF SEGMENTATION IS TO IDENTIFY AND TARGET PRIME CUSTOMER GROUPS (EG THE 20 THAT ACCOUNT FOR 80 OF YOUR SALES) SO THAT YOU GET THE MAXIMUM RETURN FROM A LIMITED MARKETING BUDGET

GEOGRAPHIC SEGMENTATION

bull THE MARKET PRESENTLY HAS CLOSE TO 60MN CONSUMERS AND THEY ARE MAINLY LOCATED IN THE

bull URBAN AREAS GROWTH WILL MAINLY COME THROUGH AN INCREASE IN PENETRATION AS INCOME LEVELS IMPROVE

bull HOWEVER ALMOST ALL OF THIS CONSUMPTION IS IN THE CITIES AND RURAL INDIA IS NEARLY lsquoCHOCOLATE-FREErsquo BUT THE FACT IS THAT THREE QUARTERS OF INDIANS LIVE IN RURAL AREAS ldquoAVERAGE SUMMERTIME TEMPERATURES REACH 43 DEGREES CELSIUS IN INDIA CHOCOLATE MELTS AT BODY TEMPERATURE OF 36 DEGREESrdquo

DEMOGRAPHIC SEGMENTATION

AGE-

bull CHILDREN - 55

bull ADULTS - 12

bull YOUNG ADULTS - 33

bull INCOME LEVEL- IN THE MIDDLE AND HIGHER INCOME GROUPS

MARKETING MIX

bull THE TOOLS AVAILABLE TO A BUSINESS TO GAIN THE REACTION IT IS SEEKING FROM ITS TARGET MARKET IN RELATION TO ITS MARKETING OBJECTIVES IT IS THE GENERALLY ACCEPTED AS THE USE AND SPECIFICATION OF THE ldquoFOUR PrsquoSrdquo DESCRIBING THE STRATEGIC POSITION OF A PRODUCT IN THE MARKETPLACE

bull PRODUCTbull PRICEbull PLACEbull PROMOTION

PRODUCT

bull PRODUCT VARIANTS bull CURRENTLY CADBURY INDIA OPERATES IN

FOUR CATEGORIES VIZ CHOCOLATE CONFECTIONERY MILK FOOD DRINKS CANDY AND GUM CATEGORY

bull CADBURY DAIRY MILK 5 STAR PERK EacuteCLAIRS AND CELEBRATIONS

bull CANDY CATEGORY HALLSbull BUBBLE GUM BRAND BUBBALOObull BOURNVITA - THE LEADING MALTED FOOD

DRINK (MFD)

PRODUCT INNOVATIONS bull 1048766 5 STAR

bull CONSUMER FEEDBACK SUGGESTED THAT THE OLD 5 STAR WAS TOO CHEWY AND PEOPLE COMPLAINED OF IT STICKING TO THEIR TEETH IT WAS MADE SOFTER AND MELTED EASILY IN THE MOUTH amp INTRODUCED AS 5 STAR CRUNCHY

bull 1048766 PERK

bull PERK WAS MADE MUCH LIGHTER AND THE SIZE OF THE BAR INCREASED TO MATCH NESTLErsquoS MUNCH PERK HAD BEEN UNDER FIRE FROM NESTLErsquoS DEADLY DUO OF KITKAT AND MUNCH BUT AFTER THE RELAUNCH ITS MARKETSHARE IS TWO PER CENT MORE THAN KITKATrsquoS AND THE FIVE-YEAR-OLD BRAND IS NOW ALMOST AS BIG AS THE DECADES-OLD 5 STAR IN SIZE BOTH IN THE REGION OF RS 50-55 CRORE

bull 1048766 HEROES

bull PACKAGING INNOVATION HAS PLAYED A VITAL ROLE IN REVAMPING OF VARIOUS CADBURYrsquoS BRANDSHEROES BRAND IS SIMPLY A MULTI-PACK WITH MINIATURES OF ALL ITS MOST POPULAR BRANDS IN A SINGLEOUTER CASE

PACKAGINGbull

THE PACKAGING WAS CHANGED TO INCLUDE A SEALED PLASTIC WRAPPER INSIDE THE OUTSIDE FOIL CADBURYrsquoS LAUNCHED A NEW PURITY-SEALED PACKAGING FOR ITS FLAGSHIP PRODUCT CADBURY DAIRY MILK OVER THE NEXT FEW WEEKS CADBURY WILL WORK TOWARDS INTRODUCING EITHER A HEATSEALED OR A FLOW-PACK PACKAGING THAT OFFERS A HIGH LEVEL OF RESISTANCE TO INFESTATION FROM

bull IMPROPER STORAGE CADBURY INVESTED NEARLY RS 25 CRORE (RS 250 MILLION) THIS YEAR ON NEW MACHINERY FOR THE IMPROVED PACKAGING

PRICE

bull THE RS 5 PRICE POINT ACCOUNTS FOR MORE THAN HALF OF ALL CHOCOLATE SALES

bull TODAY CADBURY HAS FOUR PRODUCTS AT THIS PRICE POINT CDM PERK 5 STAR AND GEMS mdash AND THE FIVE-RUPEE CDM BAR IS ITS SINGLE LARGEST-SELLING SKU

bull ldquoTHIS IS A POTENT PRICE POINT IN INDIA BECAUSE THE AVERAGE PURCHASING POWER IS ABYSMALLY LOWrdquo IS WHAT INDUSTRY ANALYST HAVE TO SAY

VOLUME LED GROWTH STRATEGY

bull CADBURY HAS FOLLOWED A WELL-PLANNED STRATEGY OF FUELLING VOLUME GROWTH BY INTRODUCING SMALLER UNIT PACKS AT LOWER PRICE POINTS SIMULTANEOUSLY THE COMPANY SEEMS TO HAVE ASTUTELY JUGGLED WITH THE LARGER PACK SIZES AND RAISED PRICES TO A DEGREE HIGHER THAN WHAT APPEARS AT FACE

HIRES AT KEARNEY TO CURB COSTS

bull CADBURY INDIA APPOINTED MANAGEMENT CONSULTANCY FIRM AT KEARNEY TO DRAW UP A STRATEGY TO CONTROL COSTS IN SEVERAL AREAS INCLUDING SOURCING OF RAW MATERIALS AND PACKAGING

bull THE CONSULTANCY FIRM WILL ALSO LOOK AT THE SOURCING OF DIRECT AND INDIRECT MATERIALS LIKE RENEGOTIATING WITH SUPPLIERS FOR LONGER TERM CONTRACTS AND VENDOR MANAGEMENT OTHER COSTS (INDIRECT EXPENSES) LIKE TRAVEL COSTS AND HOTELS WERE ALSO BEING STUDIED

EARNINGS SENSITIVITY FACTORS

bull COCOA BEAN PRICES DOMESTIC AS WELL AS INTERNATIONAL PRICES OF KEY RAW MATERIAL - COCOA HAVE SIGNIFICANT IMPACT ON MARGINS

bull EXCISE DUTIES CHANGES IN EXCISE LEVIED ON MALT AND CHOCOLATE INFLUENCES END PRODUCT PRICES AND THEREBY VOLUME GROWTH AS WELL AS MARGINS

bull CHANGES IN CUSTOM DUTIES AND FOREIGN EXCHANGE FLUCTUATION AS 20 OF RAW MATERIAL IS IMPORTED CHANGES IN CUSTOM DUTIES amp FOREIGN EXCHANGE FLUCTUATIONS HAVE SIGNIFICANT IMPACT ON THE FINAL COST OF THE PRODUCT

bull COMPETITION FROM MNCS LIKE NESTLE AS WELL AS IMPORTED BRANDS INCREASING COMPETITION PUTS PRESSURE ON ADVERTISEMENT BUDGET AND MARGINS HOWEVER ON THE POSITIVE SIDE IT HELPS IN EXPANDING THE MARKET

PLACE

bull PLANT LOCATIONSbull 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 MUMBAITHESE FACTORIES CHURN OUT CLOSE TO 8000 TONNES OF CHOCOLATE ANNUALLY

DISTRIBUTIONbull CHOCOLATE NEEDS TO BE DISTRIBUTED DIRECTLY UNLIKE

OTHER FMCG PRODUCTS LIKE SOAPS ANDbull DETERGENTS WHICH CAN BE SOLD THROUGH A

WHOLESALE NETWORK 90 OF CHOCOLATE PRODUCTS ARE SOLD

bull DIRECTLY TO RETAILERS bull CADBURYS DISTRIBUTION NETWORK USED TO

ENCOMPASSES 2100 DISTRIBUTORS AND 450000 RETAILERS bull TO AVOID CANNIBALIZATION OF ITS HIGHER PRICED

PRODUCTS FROM LOWER PRICED ONES CADBURY ISbull SETTING UP TWO SEPARATE DISTRIBUTION CHANNELS ndash

ONE FOR CORE BUSINESS amp OTHER FOR MASS MARKETS

NATURE OF RETAIL OUTLET

bull CHOCOLATES ARE PRIMARILY SOLD THROUGH KIRANA STORES GIFT STORES MEDICAL STORES CANTEENS

bull PAN-BIDI STORES BAKERIES SWEET SHOPS ETC THIS IS TRUE FOR CHOCOLATES ALSO THE SPACE ALLOCATED FOR

bull THE CHOCOLATES WAS LESS WHEN COMPARED TO THE TOTAL AREA OF THE SHOP OF THE SPACE ALLOCATED FOR

bull CHOCOLATES CADBURY BRANDS OCCUPIED MORE THAN NESTLE BRANDS

PROMOTIONbull ADVERTISEMENTSbull THE ADVERTISEMENT AIMED AT CONVEYING THE IDEA THAT NO

SPECIFIC OCCASION IS REQUIRED FOR CONSUMING CDM

bull CELEBRITIES ENDORSEMENTS

bull CADBURY ROPED IN PREITY ZINTA FOR ITS PERK BRAND PREITY ZINTArsquoS ANGELIC DIMPLES LAID THE

bull FOUNDATION FOR WHAT WOULD BECOME THE INDIAN TEENAGERrsquoS FAVORITE SNACK AFTER THIS CAMPAIGN

bull PERKrsquoS SALE SURGED

bull THE BIG lsquoBrsquo FACTORbull THE BIG FACTOR THAT HAS PUSHED UP CDM SALES IS THE

AMITABH BACHCHAN CAMPAIGN CADBURY APPOINTED AMITABH BACHCHAN AS ITS BRAND AMBASSADOR

CHOCOLATE ADS SHIFT FOCUS FROM KIDS TO YOUTH

bull INDIAN CHOCOLATE MARKET IS ALMOST TOTALLY DEPENDED ON PURCHASES OF KIDS

bull WHILE CADBURY IS TRYING TO SELL INDULGENCE TO ADULTS KIT KAT IS SELLING RITUALISTIC BREAK TO

bull TEENAGERS YOUNG ADULTS THIS IS REFLECTED IN THE CHANGING ADVERTISING PATTERNS ACROSS DIFFERENT

bull CHANNELS

CONCLUSION WHEN PRICED AT EVEN RS 2500KG WHILE THERE ARE PLACES IN

INDIA WHERE PEOPLE HAVE NEVER EVEN TASTED CHOCOLATES ONCEUNDERSTANDING THE CONSUMER DEMANDS AND MAINTAINING THE QUALITY WILL BE ESSENTIALCOMPANIES WILL HAVE TO KEEP THEMSELVES ABREAST WITH THE DEVELOPMENTS IN OTHER PARTS OF THE WORLDPRICING IS THE KEY FOR COMPANIES TO MAKE THEIR PRODUCT REACH CONSUMERSrsquo POCKETS RIGHTPRICING WILL MAKE OR BREAK THE PRODUCT SUCCESS ECONOMICAL DISTRIBUTION OF THE PRODUCTS WILLALSO BE EQUALLY IMPORTANTTHE COMPANIESrsquo STRATEGIES SHOULD FOCUS ON DRIVING SALES THROUGH A RIGHT PRODUCT MIXEFFICIENT MATERIALS PROCUREMENT REDUCED WASTAGES INCREASED FACTORY EFFICIENCIES AND IMPROVED SUPPLY CHAIN MANAGEMENTTHERErsquoS AN IMMENSE SCOPE FOR GROWTH OF CHOCOLATE INDUSTRY IN INDIA - GEOGRAPHICALLY AS WELLAS IN THE PRODUCT OFFERING

BIBLIOGRAPHY

bull WWWCADBURYCOUKbull WWWCHOCOLATEREVIEWCOUKbull WWW CADBURYS CHWEPPESCOMbull WWWWIKIPEDIAORGbull WWWCADBURYCOMbull WWWOPPAPERSCOM REFERENCES-bull PHILIP KOTLER

  • BY RAGHAVENDRA MISHRA
  • INTRODUCTION
  • HISTORY
  • MARKETING OBJECTIVES
  • TARGET MARKET
  • MARKET SEGMENTATION
  • GEOGRAPHIC SEGMENTATION
  • DEMOGRAPHIC SEGMENTATION
  • MARKETING MIX
  • PRODUCT
  • PRODUCT INNOVATIONS
  • PACKAGING
  • PRICE
  • VOLUME LED GROWTH STRATEGY
  • HIRES AT KEARNEY TO CURB COSTS
  • EARNINGS SENSITIVITY FACTORS
  • PLACE
  • DISTRIBUTION
  • NATURE OF RETAIL OUTLET
  • PROMOTION
  • CHOCOLATE ADS SHIFT FOCUS FROM KIDS TO YOUTH
  • CONCLUSION
  • BIBLIOGRAPHY
Page 4: Cadbury Marketing Mix(focuses on cadbury india ltd)

MARKETING OBJECTIVES

bull GROW SHAREHOLDER VALUEhellipOVER THE LONG TERM

bull CADBURY IN EVERY POCKETbull MARKETING STRATEGY IS AIMED AT

ACHIEVING THIS VISION BY GROWING THE MARKET BY APPROPRIATE PRICING STRATEGY THAT WILL CREATE A MASS MARKET AND TO HAVE OFFERINGS IN EVERY CATEGORY TO WIDEN THE MARKET

TARGET MARKET

bull THE INDIAN CHOCOLATE MARKET IS VALUED AT RS 650 CRORES (IE RS 650 BILLION) A YEAR THE INDIAN CHOCOLATE BAZAAR IS ESTIMATED TO BE IN THE REGION OF 22000-24000 TONNES PER ANNUM AND IS VALUED IN EXCESS OF US$ 80 MILLION

bull INDIAS METROS PROVING TO BE THE BIG DRAW CLOCKING PENETRATION IN EXCESS OF 15 PERCENT NEXT COMES THE RELATIVELY SMALLER CITIESTOWNS WHERE CONSUMPTION LAGS AT ABOUT 8 PERCENT CHOCOLATES ARE A LUXURY IN THE RURAL SEGMENT WHICH EXPLAINS THE MERE 2 PERCENT PENETRATION IN VILLAGES THE MARKET PRESENTLY HAS CLOSE TO 60MN CONSUMERS AND THEY ARE MAINLY LOCATED IN THE URBAN AREAS

MARKET SEGMENTATION

bull MARKET SEGMENTATION IS THE PROCESS IN MARKETING OF GROUPING A MARKET (IE CUSTOMERS) INTO SMALLER SUBGROUPS THESE MARKETS ARE OFTEN TERMED NICHE MARKETS OR SPECIALTY MARKETS

bull THE PURPOSE OF SEGMENTATION IS TO IDENTIFY AND TARGET PRIME CUSTOMER GROUPS (EG THE 20 THAT ACCOUNT FOR 80 OF YOUR SALES) SO THAT YOU GET THE MAXIMUM RETURN FROM A LIMITED MARKETING BUDGET

GEOGRAPHIC SEGMENTATION

bull THE MARKET PRESENTLY HAS CLOSE TO 60MN CONSUMERS AND THEY ARE MAINLY LOCATED IN THE

bull URBAN AREAS GROWTH WILL MAINLY COME THROUGH AN INCREASE IN PENETRATION AS INCOME LEVELS IMPROVE

bull HOWEVER ALMOST ALL OF THIS CONSUMPTION IS IN THE CITIES AND RURAL INDIA IS NEARLY lsquoCHOCOLATE-FREErsquo BUT THE FACT IS THAT THREE QUARTERS OF INDIANS LIVE IN RURAL AREAS ldquoAVERAGE SUMMERTIME TEMPERATURES REACH 43 DEGREES CELSIUS IN INDIA CHOCOLATE MELTS AT BODY TEMPERATURE OF 36 DEGREESrdquo

DEMOGRAPHIC SEGMENTATION

AGE-

bull CHILDREN - 55

bull ADULTS - 12

bull YOUNG ADULTS - 33

bull INCOME LEVEL- IN THE MIDDLE AND HIGHER INCOME GROUPS

MARKETING MIX

bull THE TOOLS AVAILABLE TO A BUSINESS TO GAIN THE REACTION IT IS SEEKING FROM ITS TARGET MARKET IN RELATION TO ITS MARKETING OBJECTIVES IT IS THE GENERALLY ACCEPTED AS THE USE AND SPECIFICATION OF THE ldquoFOUR PrsquoSrdquo DESCRIBING THE STRATEGIC POSITION OF A PRODUCT IN THE MARKETPLACE

bull PRODUCTbull PRICEbull PLACEbull PROMOTION

PRODUCT

bull PRODUCT VARIANTS bull CURRENTLY CADBURY INDIA OPERATES IN

FOUR CATEGORIES VIZ CHOCOLATE CONFECTIONERY MILK FOOD DRINKS CANDY AND GUM CATEGORY

bull CADBURY DAIRY MILK 5 STAR PERK EacuteCLAIRS AND CELEBRATIONS

bull CANDY CATEGORY HALLSbull BUBBLE GUM BRAND BUBBALOObull BOURNVITA - THE LEADING MALTED FOOD

DRINK (MFD)

PRODUCT INNOVATIONS bull 1048766 5 STAR

bull CONSUMER FEEDBACK SUGGESTED THAT THE OLD 5 STAR WAS TOO CHEWY AND PEOPLE COMPLAINED OF IT STICKING TO THEIR TEETH IT WAS MADE SOFTER AND MELTED EASILY IN THE MOUTH amp INTRODUCED AS 5 STAR CRUNCHY

bull 1048766 PERK

bull PERK WAS MADE MUCH LIGHTER AND THE SIZE OF THE BAR INCREASED TO MATCH NESTLErsquoS MUNCH PERK HAD BEEN UNDER FIRE FROM NESTLErsquoS DEADLY DUO OF KITKAT AND MUNCH BUT AFTER THE RELAUNCH ITS MARKETSHARE IS TWO PER CENT MORE THAN KITKATrsquoS AND THE FIVE-YEAR-OLD BRAND IS NOW ALMOST AS BIG AS THE DECADES-OLD 5 STAR IN SIZE BOTH IN THE REGION OF RS 50-55 CRORE

bull 1048766 HEROES

bull PACKAGING INNOVATION HAS PLAYED A VITAL ROLE IN REVAMPING OF VARIOUS CADBURYrsquoS BRANDSHEROES BRAND IS SIMPLY A MULTI-PACK WITH MINIATURES OF ALL ITS MOST POPULAR BRANDS IN A SINGLEOUTER CASE

PACKAGINGbull

THE PACKAGING WAS CHANGED TO INCLUDE A SEALED PLASTIC WRAPPER INSIDE THE OUTSIDE FOIL CADBURYrsquoS LAUNCHED A NEW PURITY-SEALED PACKAGING FOR ITS FLAGSHIP PRODUCT CADBURY DAIRY MILK OVER THE NEXT FEW WEEKS CADBURY WILL WORK TOWARDS INTRODUCING EITHER A HEATSEALED OR A FLOW-PACK PACKAGING THAT OFFERS A HIGH LEVEL OF RESISTANCE TO INFESTATION FROM

bull IMPROPER STORAGE CADBURY INVESTED NEARLY RS 25 CRORE (RS 250 MILLION) THIS YEAR ON NEW MACHINERY FOR THE IMPROVED PACKAGING

PRICE

bull THE RS 5 PRICE POINT ACCOUNTS FOR MORE THAN HALF OF ALL CHOCOLATE SALES

bull TODAY CADBURY HAS FOUR PRODUCTS AT THIS PRICE POINT CDM PERK 5 STAR AND GEMS mdash AND THE FIVE-RUPEE CDM BAR IS ITS SINGLE LARGEST-SELLING SKU

bull ldquoTHIS IS A POTENT PRICE POINT IN INDIA BECAUSE THE AVERAGE PURCHASING POWER IS ABYSMALLY LOWrdquo IS WHAT INDUSTRY ANALYST HAVE TO SAY

VOLUME LED GROWTH STRATEGY

bull CADBURY HAS FOLLOWED A WELL-PLANNED STRATEGY OF FUELLING VOLUME GROWTH BY INTRODUCING SMALLER UNIT PACKS AT LOWER PRICE POINTS SIMULTANEOUSLY THE COMPANY SEEMS TO HAVE ASTUTELY JUGGLED WITH THE LARGER PACK SIZES AND RAISED PRICES TO A DEGREE HIGHER THAN WHAT APPEARS AT FACE

HIRES AT KEARNEY TO CURB COSTS

bull CADBURY INDIA APPOINTED MANAGEMENT CONSULTANCY FIRM AT KEARNEY TO DRAW UP A STRATEGY TO CONTROL COSTS IN SEVERAL AREAS INCLUDING SOURCING OF RAW MATERIALS AND PACKAGING

bull THE CONSULTANCY FIRM WILL ALSO LOOK AT THE SOURCING OF DIRECT AND INDIRECT MATERIALS LIKE RENEGOTIATING WITH SUPPLIERS FOR LONGER TERM CONTRACTS AND VENDOR MANAGEMENT OTHER COSTS (INDIRECT EXPENSES) LIKE TRAVEL COSTS AND HOTELS WERE ALSO BEING STUDIED

EARNINGS SENSITIVITY FACTORS

bull COCOA BEAN PRICES DOMESTIC AS WELL AS INTERNATIONAL PRICES OF KEY RAW MATERIAL - COCOA HAVE SIGNIFICANT IMPACT ON MARGINS

bull EXCISE DUTIES CHANGES IN EXCISE LEVIED ON MALT AND CHOCOLATE INFLUENCES END PRODUCT PRICES AND THEREBY VOLUME GROWTH AS WELL AS MARGINS

bull CHANGES IN CUSTOM DUTIES AND FOREIGN EXCHANGE FLUCTUATION AS 20 OF RAW MATERIAL IS IMPORTED CHANGES IN CUSTOM DUTIES amp FOREIGN EXCHANGE FLUCTUATIONS HAVE SIGNIFICANT IMPACT ON THE FINAL COST OF THE PRODUCT

bull COMPETITION FROM MNCS LIKE NESTLE AS WELL AS IMPORTED BRANDS INCREASING COMPETITION PUTS PRESSURE ON ADVERTISEMENT BUDGET AND MARGINS HOWEVER ON THE POSITIVE SIDE IT HELPS IN EXPANDING THE MARKET

PLACE

bull PLANT LOCATIONSbull 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 MUMBAITHESE FACTORIES CHURN OUT CLOSE TO 8000 TONNES OF CHOCOLATE ANNUALLY

DISTRIBUTIONbull CHOCOLATE NEEDS TO BE DISTRIBUTED DIRECTLY UNLIKE

OTHER FMCG PRODUCTS LIKE SOAPS ANDbull DETERGENTS WHICH CAN BE SOLD THROUGH A

WHOLESALE NETWORK 90 OF CHOCOLATE PRODUCTS ARE SOLD

bull DIRECTLY TO RETAILERS bull CADBURYS DISTRIBUTION NETWORK USED TO

ENCOMPASSES 2100 DISTRIBUTORS AND 450000 RETAILERS bull TO AVOID CANNIBALIZATION OF ITS HIGHER PRICED

PRODUCTS FROM LOWER PRICED ONES CADBURY ISbull SETTING UP TWO SEPARATE DISTRIBUTION CHANNELS ndash

ONE FOR CORE BUSINESS amp OTHER FOR MASS MARKETS

NATURE OF RETAIL OUTLET

bull CHOCOLATES ARE PRIMARILY SOLD THROUGH KIRANA STORES GIFT STORES MEDICAL STORES CANTEENS

bull PAN-BIDI STORES BAKERIES SWEET SHOPS ETC THIS IS TRUE FOR CHOCOLATES ALSO THE SPACE ALLOCATED FOR

bull THE CHOCOLATES WAS LESS WHEN COMPARED TO THE TOTAL AREA OF THE SHOP OF THE SPACE ALLOCATED FOR

bull CHOCOLATES CADBURY BRANDS OCCUPIED MORE THAN NESTLE BRANDS

PROMOTIONbull ADVERTISEMENTSbull THE ADVERTISEMENT AIMED AT CONVEYING THE IDEA THAT NO

SPECIFIC OCCASION IS REQUIRED FOR CONSUMING CDM

bull CELEBRITIES ENDORSEMENTS

bull CADBURY ROPED IN PREITY ZINTA FOR ITS PERK BRAND PREITY ZINTArsquoS ANGELIC DIMPLES LAID THE

bull FOUNDATION FOR WHAT WOULD BECOME THE INDIAN TEENAGERrsquoS FAVORITE SNACK AFTER THIS CAMPAIGN

bull PERKrsquoS SALE SURGED

bull THE BIG lsquoBrsquo FACTORbull THE BIG FACTOR THAT HAS PUSHED UP CDM SALES IS THE

AMITABH BACHCHAN CAMPAIGN CADBURY APPOINTED AMITABH BACHCHAN AS ITS BRAND AMBASSADOR

CHOCOLATE ADS SHIFT FOCUS FROM KIDS TO YOUTH

bull INDIAN CHOCOLATE MARKET IS ALMOST TOTALLY DEPENDED ON PURCHASES OF KIDS

bull WHILE CADBURY IS TRYING TO SELL INDULGENCE TO ADULTS KIT KAT IS SELLING RITUALISTIC BREAK TO

bull TEENAGERS YOUNG ADULTS THIS IS REFLECTED IN THE CHANGING ADVERTISING PATTERNS ACROSS DIFFERENT

bull CHANNELS

CONCLUSION WHEN PRICED AT EVEN RS 2500KG WHILE THERE ARE PLACES IN

INDIA WHERE PEOPLE HAVE NEVER EVEN TASTED CHOCOLATES ONCEUNDERSTANDING THE CONSUMER DEMANDS AND MAINTAINING THE QUALITY WILL BE ESSENTIALCOMPANIES WILL HAVE TO KEEP THEMSELVES ABREAST WITH THE DEVELOPMENTS IN OTHER PARTS OF THE WORLDPRICING IS THE KEY FOR COMPANIES TO MAKE THEIR PRODUCT REACH CONSUMERSrsquo POCKETS RIGHTPRICING WILL MAKE OR BREAK THE PRODUCT SUCCESS ECONOMICAL DISTRIBUTION OF THE PRODUCTS WILLALSO BE EQUALLY IMPORTANTTHE COMPANIESrsquo STRATEGIES SHOULD FOCUS ON DRIVING SALES THROUGH A RIGHT PRODUCT MIXEFFICIENT MATERIALS PROCUREMENT REDUCED WASTAGES INCREASED FACTORY EFFICIENCIES AND IMPROVED SUPPLY CHAIN MANAGEMENTTHERErsquoS AN IMMENSE SCOPE FOR GROWTH OF CHOCOLATE INDUSTRY IN INDIA - GEOGRAPHICALLY AS WELLAS IN THE PRODUCT OFFERING

BIBLIOGRAPHY

bull WWWCADBURYCOUKbull WWWCHOCOLATEREVIEWCOUKbull WWW CADBURYS CHWEPPESCOMbull WWWWIKIPEDIAORGbull WWWCADBURYCOMbull WWWOPPAPERSCOM REFERENCES-bull PHILIP KOTLER

  • BY RAGHAVENDRA MISHRA
  • INTRODUCTION
  • HISTORY
  • MARKETING OBJECTIVES
  • TARGET MARKET
  • MARKET SEGMENTATION
  • GEOGRAPHIC SEGMENTATION
  • DEMOGRAPHIC SEGMENTATION
  • MARKETING MIX
  • PRODUCT
  • PRODUCT INNOVATIONS
  • PACKAGING
  • PRICE
  • VOLUME LED GROWTH STRATEGY
  • HIRES AT KEARNEY TO CURB COSTS
  • EARNINGS SENSITIVITY FACTORS
  • PLACE
  • DISTRIBUTION
  • NATURE OF RETAIL OUTLET
  • PROMOTION
  • CHOCOLATE ADS SHIFT FOCUS FROM KIDS TO YOUTH
  • CONCLUSION
  • BIBLIOGRAPHY
Page 5: Cadbury Marketing Mix(focuses on cadbury india ltd)

TARGET MARKET

bull THE INDIAN CHOCOLATE MARKET IS VALUED AT RS 650 CRORES (IE RS 650 BILLION) A YEAR THE INDIAN CHOCOLATE BAZAAR IS ESTIMATED TO BE IN THE REGION OF 22000-24000 TONNES PER ANNUM AND IS VALUED IN EXCESS OF US$ 80 MILLION

bull INDIAS METROS PROVING TO BE THE BIG DRAW CLOCKING PENETRATION IN EXCESS OF 15 PERCENT NEXT COMES THE RELATIVELY SMALLER CITIESTOWNS WHERE CONSUMPTION LAGS AT ABOUT 8 PERCENT CHOCOLATES ARE A LUXURY IN THE RURAL SEGMENT WHICH EXPLAINS THE MERE 2 PERCENT PENETRATION IN VILLAGES THE MARKET PRESENTLY HAS CLOSE TO 60MN CONSUMERS AND THEY ARE MAINLY LOCATED IN THE URBAN AREAS

MARKET SEGMENTATION

bull MARKET SEGMENTATION IS THE PROCESS IN MARKETING OF GROUPING A MARKET (IE CUSTOMERS) INTO SMALLER SUBGROUPS THESE MARKETS ARE OFTEN TERMED NICHE MARKETS OR SPECIALTY MARKETS

bull THE PURPOSE OF SEGMENTATION IS TO IDENTIFY AND TARGET PRIME CUSTOMER GROUPS (EG THE 20 THAT ACCOUNT FOR 80 OF YOUR SALES) SO THAT YOU GET THE MAXIMUM RETURN FROM A LIMITED MARKETING BUDGET

GEOGRAPHIC SEGMENTATION

bull THE MARKET PRESENTLY HAS CLOSE TO 60MN CONSUMERS AND THEY ARE MAINLY LOCATED IN THE

bull URBAN AREAS GROWTH WILL MAINLY COME THROUGH AN INCREASE IN PENETRATION AS INCOME LEVELS IMPROVE

bull HOWEVER ALMOST ALL OF THIS CONSUMPTION IS IN THE CITIES AND RURAL INDIA IS NEARLY lsquoCHOCOLATE-FREErsquo BUT THE FACT IS THAT THREE QUARTERS OF INDIANS LIVE IN RURAL AREAS ldquoAVERAGE SUMMERTIME TEMPERATURES REACH 43 DEGREES CELSIUS IN INDIA CHOCOLATE MELTS AT BODY TEMPERATURE OF 36 DEGREESrdquo

DEMOGRAPHIC SEGMENTATION

AGE-

bull CHILDREN - 55

bull ADULTS - 12

bull YOUNG ADULTS - 33

bull INCOME LEVEL- IN THE MIDDLE AND HIGHER INCOME GROUPS

MARKETING MIX

bull THE TOOLS AVAILABLE TO A BUSINESS TO GAIN THE REACTION IT IS SEEKING FROM ITS TARGET MARKET IN RELATION TO ITS MARKETING OBJECTIVES IT IS THE GENERALLY ACCEPTED AS THE USE AND SPECIFICATION OF THE ldquoFOUR PrsquoSrdquo DESCRIBING THE STRATEGIC POSITION OF A PRODUCT IN THE MARKETPLACE

bull PRODUCTbull PRICEbull PLACEbull PROMOTION

PRODUCT

bull PRODUCT VARIANTS bull CURRENTLY CADBURY INDIA OPERATES IN

FOUR CATEGORIES VIZ CHOCOLATE CONFECTIONERY MILK FOOD DRINKS CANDY AND GUM CATEGORY

bull CADBURY DAIRY MILK 5 STAR PERK EacuteCLAIRS AND CELEBRATIONS

bull CANDY CATEGORY HALLSbull BUBBLE GUM BRAND BUBBALOObull BOURNVITA - THE LEADING MALTED FOOD

DRINK (MFD)

PRODUCT INNOVATIONS bull 1048766 5 STAR

bull CONSUMER FEEDBACK SUGGESTED THAT THE OLD 5 STAR WAS TOO CHEWY AND PEOPLE COMPLAINED OF IT STICKING TO THEIR TEETH IT WAS MADE SOFTER AND MELTED EASILY IN THE MOUTH amp INTRODUCED AS 5 STAR CRUNCHY

bull 1048766 PERK

bull PERK WAS MADE MUCH LIGHTER AND THE SIZE OF THE BAR INCREASED TO MATCH NESTLErsquoS MUNCH PERK HAD BEEN UNDER FIRE FROM NESTLErsquoS DEADLY DUO OF KITKAT AND MUNCH BUT AFTER THE RELAUNCH ITS MARKETSHARE IS TWO PER CENT MORE THAN KITKATrsquoS AND THE FIVE-YEAR-OLD BRAND IS NOW ALMOST AS BIG AS THE DECADES-OLD 5 STAR IN SIZE BOTH IN THE REGION OF RS 50-55 CRORE

bull 1048766 HEROES

bull PACKAGING INNOVATION HAS PLAYED A VITAL ROLE IN REVAMPING OF VARIOUS CADBURYrsquoS BRANDSHEROES BRAND IS SIMPLY A MULTI-PACK WITH MINIATURES OF ALL ITS MOST POPULAR BRANDS IN A SINGLEOUTER CASE

PACKAGINGbull

THE PACKAGING WAS CHANGED TO INCLUDE A SEALED PLASTIC WRAPPER INSIDE THE OUTSIDE FOIL CADBURYrsquoS LAUNCHED A NEW PURITY-SEALED PACKAGING FOR ITS FLAGSHIP PRODUCT CADBURY DAIRY MILK OVER THE NEXT FEW WEEKS CADBURY WILL WORK TOWARDS INTRODUCING EITHER A HEATSEALED OR A FLOW-PACK PACKAGING THAT OFFERS A HIGH LEVEL OF RESISTANCE TO INFESTATION FROM

bull IMPROPER STORAGE CADBURY INVESTED NEARLY RS 25 CRORE (RS 250 MILLION) THIS YEAR ON NEW MACHINERY FOR THE IMPROVED PACKAGING

PRICE

bull THE RS 5 PRICE POINT ACCOUNTS FOR MORE THAN HALF OF ALL CHOCOLATE SALES

bull TODAY CADBURY HAS FOUR PRODUCTS AT THIS PRICE POINT CDM PERK 5 STAR AND GEMS mdash AND THE FIVE-RUPEE CDM BAR IS ITS SINGLE LARGEST-SELLING SKU

bull ldquoTHIS IS A POTENT PRICE POINT IN INDIA BECAUSE THE AVERAGE PURCHASING POWER IS ABYSMALLY LOWrdquo IS WHAT INDUSTRY ANALYST HAVE TO SAY

VOLUME LED GROWTH STRATEGY

bull CADBURY HAS FOLLOWED A WELL-PLANNED STRATEGY OF FUELLING VOLUME GROWTH BY INTRODUCING SMALLER UNIT PACKS AT LOWER PRICE POINTS SIMULTANEOUSLY THE COMPANY SEEMS TO HAVE ASTUTELY JUGGLED WITH THE LARGER PACK SIZES AND RAISED PRICES TO A DEGREE HIGHER THAN WHAT APPEARS AT FACE

HIRES AT KEARNEY TO CURB COSTS

bull CADBURY INDIA APPOINTED MANAGEMENT CONSULTANCY FIRM AT KEARNEY TO DRAW UP A STRATEGY TO CONTROL COSTS IN SEVERAL AREAS INCLUDING SOURCING OF RAW MATERIALS AND PACKAGING

bull THE CONSULTANCY FIRM WILL ALSO LOOK AT THE SOURCING OF DIRECT AND INDIRECT MATERIALS LIKE RENEGOTIATING WITH SUPPLIERS FOR LONGER TERM CONTRACTS AND VENDOR MANAGEMENT OTHER COSTS (INDIRECT EXPENSES) LIKE TRAVEL COSTS AND HOTELS WERE ALSO BEING STUDIED

EARNINGS SENSITIVITY FACTORS

bull COCOA BEAN PRICES DOMESTIC AS WELL AS INTERNATIONAL PRICES OF KEY RAW MATERIAL - COCOA HAVE SIGNIFICANT IMPACT ON MARGINS

bull EXCISE DUTIES CHANGES IN EXCISE LEVIED ON MALT AND CHOCOLATE INFLUENCES END PRODUCT PRICES AND THEREBY VOLUME GROWTH AS WELL AS MARGINS

bull CHANGES IN CUSTOM DUTIES AND FOREIGN EXCHANGE FLUCTUATION AS 20 OF RAW MATERIAL IS IMPORTED CHANGES IN CUSTOM DUTIES amp FOREIGN EXCHANGE FLUCTUATIONS HAVE SIGNIFICANT IMPACT ON THE FINAL COST OF THE PRODUCT

bull COMPETITION FROM MNCS LIKE NESTLE AS WELL AS IMPORTED BRANDS INCREASING COMPETITION PUTS PRESSURE ON ADVERTISEMENT BUDGET AND MARGINS HOWEVER ON THE POSITIVE SIDE IT HELPS IN EXPANDING THE MARKET

PLACE

bull PLANT LOCATIONSbull 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 MUMBAITHESE FACTORIES CHURN OUT CLOSE TO 8000 TONNES OF CHOCOLATE ANNUALLY

DISTRIBUTIONbull CHOCOLATE NEEDS TO BE DISTRIBUTED DIRECTLY UNLIKE

OTHER FMCG PRODUCTS LIKE SOAPS ANDbull DETERGENTS WHICH CAN BE SOLD THROUGH A

WHOLESALE NETWORK 90 OF CHOCOLATE PRODUCTS ARE SOLD

bull DIRECTLY TO RETAILERS bull CADBURYS DISTRIBUTION NETWORK USED TO

ENCOMPASSES 2100 DISTRIBUTORS AND 450000 RETAILERS bull TO AVOID CANNIBALIZATION OF ITS HIGHER PRICED

PRODUCTS FROM LOWER PRICED ONES CADBURY ISbull SETTING UP TWO SEPARATE DISTRIBUTION CHANNELS ndash

ONE FOR CORE BUSINESS amp OTHER FOR MASS MARKETS

NATURE OF RETAIL OUTLET

bull CHOCOLATES ARE PRIMARILY SOLD THROUGH KIRANA STORES GIFT STORES MEDICAL STORES CANTEENS

bull PAN-BIDI STORES BAKERIES SWEET SHOPS ETC THIS IS TRUE FOR CHOCOLATES ALSO THE SPACE ALLOCATED FOR

bull THE CHOCOLATES WAS LESS WHEN COMPARED TO THE TOTAL AREA OF THE SHOP OF THE SPACE ALLOCATED FOR

bull CHOCOLATES CADBURY BRANDS OCCUPIED MORE THAN NESTLE BRANDS

PROMOTIONbull ADVERTISEMENTSbull THE ADVERTISEMENT AIMED AT CONVEYING THE IDEA THAT NO

SPECIFIC OCCASION IS REQUIRED FOR CONSUMING CDM

bull CELEBRITIES ENDORSEMENTS

bull CADBURY ROPED IN PREITY ZINTA FOR ITS PERK BRAND PREITY ZINTArsquoS ANGELIC DIMPLES LAID THE

bull FOUNDATION FOR WHAT WOULD BECOME THE INDIAN TEENAGERrsquoS FAVORITE SNACK AFTER THIS CAMPAIGN

bull PERKrsquoS SALE SURGED

bull THE BIG lsquoBrsquo FACTORbull THE BIG FACTOR THAT HAS PUSHED UP CDM SALES IS THE

AMITABH BACHCHAN CAMPAIGN CADBURY APPOINTED AMITABH BACHCHAN AS ITS BRAND AMBASSADOR

CHOCOLATE ADS SHIFT FOCUS FROM KIDS TO YOUTH

bull INDIAN CHOCOLATE MARKET IS ALMOST TOTALLY DEPENDED ON PURCHASES OF KIDS

bull WHILE CADBURY IS TRYING TO SELL INDULGENCE TO ADULTS KIT KAT IS SELLING RITUALISTIC BREAK TO

bull TEENAGERS YOUNG ADULTS THIS IS REFLECTED IN THE CHANGING ADVERTISING PATTERNS ACROSS DIFFERENT

bull CHANNELS

CONCLUSION WHEN PRICED AT EVEN RS 2500KG WHILE THERE ARE PLACES IN

INDIA WHERE PEOPLE HAVE NEVER EVEN TASTED CHOCOLATES ONCEUNDERSTANDING THE CONSUMER DEMANDS AND MAINTAINING THE QUALITY WILL BE ESSENTIALCOMPANIES WILL HAVE TO KEEP THEMSELVES ABREAST WITH THE DEVELOPMENTS IN OTHER PARTS OF THE WORLDPRICING IS THE KEY FOR COMPANIES TO MAKE THEIR PRODUCT REACH CONSUMERSrsquo POCKETS RIGHTPRICING WILL MAKE OR BREAK THE PRODUCT SUCCESS ECONOMICAL DISTRIBUTION OF THE PRODUCTS WILLALSO BE EQUALLY IMPORTANTTHE COMPANIESrsquo STRATEGIES SHOULD FOCUS ON DRIVING SALES THROUGH A RIGHT PRODUCT MIXEFFICIENT MATERIALS PROCUREMENT REDUCED WASTAGES INCREASED FACTORY EFFICIENCIES AND IMPROVED SUPPLY CHAIN MANAGEMENTTHERErsquoS AN IMMENSE SCOPE FOR GROWTH OF CHOCOLATE INDUSTRY IN INDIA - GEOGRAPHICALLY AS WELLAS IN THE PRODUCT OFFERING

BIBLIOGRAPHY

bull WWWCADBURYCOUKbull WWWCHOCOLATEREVIEWCOUKbull WWW CADBURYS CHWEPPESCOMbull WWWWIKIPEDIAORGbull WWWCADBURYCOMbull WWWOPPAPERSCOM REFERENCES-bull PHILIP KOTLER

  • BY RAGHAVENDRA MISHRA
  • INTRODUCTION
  • HISTORY
  • MARKETING OBJECTIVES
  • TARGET MARKET
  • MARKET SEGMENTATION
  • GEOGRAPHIC SEGMENTATION
  • DEMOGRAPHIC SEGMENTATION
  • MARKETING MIX
  • PRODUCT
  • PRODUCT INNOVATIONS
  • PACKAGING
  • PRICE
  • VOLUME LED GROWTH STRATEGY
  • HIRES AT KEARNEY TO CURB COSTS
  • EARNINGS SENSITIVITY FACTORS
  • PLACE
  • DISTRIBUTION
  • NATURE OF RETAIL OUTLET
  • PROMOTION
  • CHOCOLATE ADS SHIFT FOCUS FROM KIDS TO YOUTH
  • CONCLUSION
  • BIBLIOGRAPHY
Page 6: Cadbury Marketing Mix(focuses on cadbury india ltd)

MARKET SEGMENTATION

bull MARKET SEGMENTATION IS THE PROCESS IN MARKETING OF GROUPING A MARKET (IE CUSTOMERS) INTO SMALLER SUBGROUPS THESE MARKETS ARE OFTEN TERMED NICHE MARKETS OR SPECIALTY MARKETS

bull THE PURPOSE OF SEGMENTATION IS TO IDENTIFY AND TARGET PRIME CUSTOMER GROUPS (EG THE 20 THAT ACCOUNT FOR 80 OF YOUR SALES) SO THAT YOU GET THE MAXIMUM RETURN FROM A LIMITED MARKETING BUDGET

GEOGRAPHIC SEGMENTATION

bull THE MARKET PRESENTLY HAS CLOSE TO 60MN CONSUMERS AND THEY ARE MAINLY LOCATED IN THE

bull URBAN AREAS GROWTH WILL MAINLY COME THROUGH AN INCREASE IN PENETRATION AS INCOME LEVELS IMPROVE

bull HOWEVER ALMOST ALL OF THIS CONSUMPTION IS IN THE CITIES AND RURAL INDIA IS NEARLY lsquoCHOCOLATE-FREErsquo BUT THE FACT IS THAT THREE QUARTERS OF INDIANS LIVE IN RURAL AREAS ldquoAVERAGE SUMMERTIME TEMPERATURES REACH 43 DEGREES CELSIUS IN INDIA CHOCOLATE MELTS AT BODY TEMPERATURE OF 36 DEGREESrdquo

DEMOGRAPHIC SEGMENTATION

AGE-

bull CHILDREN - 55

bull ADULTS - 12

bull YOUNG ADULTS - 33

bull INCOME LEVEL- IN THE MIDDLE AND HIGHER INCOME GROUPS

MARKETING MIX

bull THE TOOLS AVAILABLE TO A BUSINESS TO GAIN THE REACTION IT IS SEEKING FROM ITS TARGET MARKET IN RELATION TO ITS MARKETING OBJECTIVES IT IS THE GENERALLY ACCEPTED AS THE USE AND SPECIFICATION OF THE ldquoFOUR PrsquoSrdquo DESCRIBING THE STRATEGIC POSITION OF A PRODUCT IN THE MARKETPLACE

bull PRODUCTbull PRICEbull PLACEbull PROMOTION

PRODUCT

bull PRODUCT VARIANTS bull CURRENTLY CADBURY INDIA OPERATES IN

FOUR CATEGORIES VIZ CHOCOLATE CONFECTIONERY MILK FOOD DRINKS CANDY AND GUM CATEGORY

bull CADBURY DAIRY MILK 5 STAR PERK EacuteCLAIRS AND CELEBRATIONS

bull CANDY CATEGORY HALLSbull BUBBLE GUM BRAND BUBBALOObull BOURNVITA - THE LEADING MALTED FOOD

DRINK (MFD)

PRODUCT INNOVATIONS bull 1048766 5 STAR

bull CONSUMER FEEDBACK SUGGESTED THAT THE OLD 5 STAR WAS TOO CHEWY AND PEOPLE COMPLAINED OF IT STICKING TO THEIR TEETH IT WAS MADE SOFTER AND MELTED EASILY IN THE MOUTH amp INTRODUCED AS 5 STAR CRUNCHY

bull 1048766 PERK

bull PERK WAS MADE MUCH LIGHTER AND THE SIZE OF THE BAR INCREASED TO MATCH NESTLErsquoS MUNCH PERK HAD BEEN UNDER FIRE FROM NESTLErsquoS DEADLY DUO OF KITKAT AND MUNCH BUT AFTER THE RELAUNCH ITS MARKETSHARE IS TWO PER CENT MORE THAN KITKATrsquoS AND THE FIVE-YEAR-OLD BRAND IS NOW ALMOST AS BIG AS THE DECADES-OLD 5 STAR IN SIZE BOTH IN THE REGION OF RS 50-55 CRORE

bull 1048766 HEROES

bull PACKAGING INNOVATION HAS PLAYED A VITAL ROLE IN REVAMPING OF VARIOUS CADBURYrsquoS BRANDSHEROES BRAND IS SIMPLY A MULTI-PACK WITH MINIATURES OF ALL ITS MOST POPULAR BRANDS IN A SINGLEOUTER CASE

PACKAGINGbull

THE PACKAGING WAS CHANGED TO INCLUDE A SEALED PLASTIC WRAPPER INSIDE THE OUTSIDE FOIL CADBURYrsquoS LAUNCHED A NEW PURITY-SEALED PACKAGING FOR ITS FLAGSHIP PRODUCT CADBURY DAIRY MILK OVER THE NEXT FEW WEEKS CADBURY WILL WORK TOWARDS INTRODUCING EITHER A HEATSEALED OR A FLOW-PACK PACKAGING THAT OFFERS A HIGH LEVEL OF RESISTANCE TO INFESTATION FROM

bull IMPROPER STORAGE CADBURY INVESTED NEARLY RS 25 CRORE (RS 250 MILLION) THIS YEAR ON NEW MACHINERY FOR THE IMPROVED PACKAGING

PRICE

bull THE RS 5 PRICE POINT ACCOUNTS FOR MORE THAN HALF OF ALL CHOCOLATE SALES

bull TODAY CADBURY HAS FOUR PRODUCTS AT THIS PRICE POINT CDM PERK 5 STAR AND GEMS mdash AND THE FIVE-RUPEE CDM BAR IS ITS SINGLE LARGEST-SELLING SKU

bull ldquoTHIS IS A POTENT PRICE POINT IN INDIA BECAUSE THE AVERAGE PURCHASING POWER IS ABYSMALLY LOWrdquo IS WHAT INDUSTRY ANALYST HAVE TO SAY

VOLUME LED GROWTH STRATEGY

bull CADBURY HAS FOLLOWED A WELL-PLANNED STRATEGY OF FUELLING VOLUME GROWTH BY INTRODUCING SMALLER UNIT PACKS AT LOWER PRICE POINTS SIMULTANEOUSLY THE COMPANY SEEMS TO HAVE ASTUTELY JUGGLED WITH THE LARGER PACK SIZES AND RAISED PRICES TO A DEGREE HIGHER THAN WHAT APPEARS AT FACE

HIRES AT KEARNEY TO CURB COSTS

bull CADBURY INDIA APPOINTED MANAGEMENT CONSULTANCY FIRM AT KEARNEY TO DRAW UP A STRATEGY TO CONTROL COSTS IN SEVERAL AREAS INCLUDING SOURCING OF RAW MATERIALS AND PACKAGING

bull THE CONSULTANCY FIRM WILL ALSO LOOK AT THE SOURCING OF DIRECT AND INDIRECT MATERIALS LIKE RENEGOTIATING WITH SUPPLIERS FOR LONGER TERM CONTRACTS AND VENDOR MANAGEMENT OTHER COSTS (INDIRECT EXPENSES) LIKE TRAVEL COSTS AND HOTELS WERE ALSO BEING STUDIED

EARNINGS SENSITIVITY FACTORS

bull COCOA BEAN PRICES DOMESTIC AS WELL AS INTERNATIONAL PRICES OF KEY RAW MATERIAL - COCOA HAVE SIGNIFICANT IMPACT ON MARGINS

bull EXCISE DUTIES CHANGES IN EXCISE LEVIED ON MALT AND CHOCOLATE INFLUENCES END PRODUCT PRICES AND THEREBY VOLUME GROWTH AS WELL AS MARGINS

bull CHANGES IN CUSTOM DUTIES AND FOREIGN EXCHANGE FLUCTUATION AS 20 OF RAW MATERIAL IS IMPORTED CHANGES IN CUSTOM DUTIES amp FOREIGN EXCHANGE FLUCTUATIONS HAVE SIGNIFICANT IMPACT ON THE FINAL COST OF THE PRODUCT

bull COMPETITION FROM MNCS LIKE NESTLE AS WELL AS IMPORTED BRANDS INCREASING COMPETITION PUTS PRESSURE ON ADVERTISEMENT BUDGET AND MARGINS HOWEVER ON THE POSITIVE SIDE IT HELPS IN EXPANDING THE MARKET

PLACE

bull PLANT LOCATIONSbull 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 MUMBAITHESE FACTORIES CHURN OUT CLOSE TO 8000 TONNES OF CHOCOLATE ANNUALLY

DISTRIBUTIONbull CHOCOLATE NEEDS TO BE DISTRIBUTED DIRECTLY UNLIKE

OTHER FMCG PRODUCTS LIKE SOAPS ANDbull DETERGENTS WHICH CAN BE SOLD THROUGH A

WHOLESALE NETWORK 90 OF CHOCOLATE PRODUCTS ARE SOLD

bull DIRECTLY TO RETAILERS bull CADBURYS DISTRIBUTION NETWORK USED TO

ENCOMPASSES 2100 DISTRIBUTORS AND 450000 RETAILERS bull TO AVOID CANNIBALIZATION OF ITS HIGHER PRICED

PRODUCTS FROM LOWER PRICED ONES CADBURY ISbull SETTING UP TWO SEPARATE DISTRIBUTION CHANNELS ndash

ONE FOR CORE BUSINESS amp OTHER FOR MASS MARKETS

NATURE OF RETAIL OUTLET

bull CHOCOLATES ARE PRIMARILY SOLD THROUGH KIRANA STORES GIFT STORES MEDICAL STORES CANTEENS

bull PAN-BIDI STORES BAKERIES SWEET SHOPS ETC THIS IS TRUE FOR CHOCOLATES ALSO THE SPACE ALLOCATED FOR

bull THE CHOCOLATES WAS LESS WHEN COMPARED TO THE TOTAL AREA OF THE SHOP OF THE SPACE ALLOCATED FOR

bull CHOCOLATES CADBURY BRANDS OCCUPIED MORE THAN NESTLE BRANDS

PROMOTIONbull ADVERTISEMENTSbull THE ADVERTISEMENT AIMED AT CONVEYING THE IDEA THAT NO

SPECIFIC OCCASION IS REQUIRED FOR CONSUMING CDM

bull CELEBRITIES ENDORSEMENTS

bull CADBURY ROPED IN PREITY ZINTA FOR ITS PERK BRAND PREITY ZINTArsquoS ANGELIC DIMPLES LAID THE

bull FOUNDATION FOR WHAT WOULD BECOME THE INDIAN TEENAGERrsquoS FAVORITE SNACK AFTER THIS CAMPAIGN

bull PERKrsquoS SALE SURGED

bull THE BIG lsquoBrsquo FACTORbull THE BIG FACTOR THAT HAS PUSHED UP CDM SALES IS THE

AMITABH BACHCHAN CAMPAIGN CADBURY APPOINTED AMITABH BACHCHAN AS ITS BRAND AMBASSADOR

CHOCOLATE ADS SHIFT FOCUS FROM KIDS TO YOUTH

bull INDIAN CHOCOLATE MARKET IS ALMOST TOTALLY DEPENDED ON PURCHASES OF KIDS

bull WHILE CADBURY IS TRYING TO SELL INDULGENCE TO ADULTS KIT KAT IS SELLING RITUALISTIC BREAK TO

bull TEENAGERS YOUNG ADULTS THIS IS REFLECTED IN THE CHANGING ADVERTISING PATTERNS ACROSS DIFFERENT

bull CHANNELS

CONCLUSION WHEN PRICED AT EVEN RS 2500KG WHILE THERE ARE PLACES IN

INDIA WHERE PEOPLE HAVE NEVER EVEN TASTED CHOCOLATES ONCEUNDERSTANDING THE CONSUMER DEMANDS AND MAINTAINING THE QUALITY WILL BE ESSENTIALCOMPANIES WILL HAVE TO KEEP THEMSELVES ABREAST WITH THE DEVELOPMENTS IN OTHER PARTS OF THE WORLDPRICING IS THE KEY FOR COMPANIES TO MAKE THEIR PRODUCT REACH CONSUMERSrsquo POCKETS RIGHTPRICING WILL MAKE OR BREAK THE PRODUCT SUCCESS ECONOMICAL DISTRIBUTION OF THE PRODUCTS WILLALSO BE EQUALLY IMPORTANTTHE COMPANIESrsquo STRATEGIES SHOULD FOCUS ON DRIVING SALES THROUGH A RIGHT PRODUCT MIXEFFICIENT MATERIALS PROCUREMENT REDUCED WASTAGES INCREASED FACTORY EFFICIENCIES AND IMPROVED SUPPLY CHAIN MANAGEMENTTHERErsquoS AN IMMENSE SCOPE FOR GROWTH OF CHOCOLATE INDUSTRY IN INDIA - GEOGRAPHICALLY AS WELLAS IN THE PRODUCT OFFERING

BIBLIOGRAPHY

bull WWWCADBURYCOUKbull WWWCHOCOLATEREVIEWCOUKbull WWW CADBURYS CHWEPPESCOMbull WWWWIKIPEDIAORGbull WWWCADBURYCOMbull WWWOPPAPERSCOM REFERENCES-bull PHILIP KOTLER

  • BY RAGHAVENDRA MISHRA
  • INTRODUCTION
  • HISTORY
  • MARKETING OBJECTIVES
  • TARGET MARKET
  • MARKET SEGMENTATION
  • GEOGRAPHIC SEGMENTATION
  • DEMOGRAPHIC SEGMENTATION
  • MARKETING MIX
  • PRODUCT
  • PRODUCT INNOVATIONS
  • PACKAGING
  • PRICE
  • VOLUME LED GROWTH STRATEGY
  • HIRES AT KEARNEY TO CURB COSTS
  • EARNINGS SENSITIVITY FACTORS
  • PLACE
  • DISTRIBUTION
  • NATURE OF RETAIL OUTLET
  • PROMOTION
  • CHOCOLATE ADS SHIFT FOCUS FROM KIDS TO YOUTH
  • CONCLUSION
  • BIBLIOGRAPHY
Page 7: Cadbury Marketing Mix(focuses on cadbury india ltd)

GEOGRAPHIC SEGMENTATION

bull THE MARKET PRESENTLY HAS CLOSE TO 60MN CONSUMERS AND THEY ARE MAINLY LOCATED IN THE

bull URBAN AREAS GROWTH WILL MAINLY COME THROUGH AN INCREASE IN PENETRATION AS INCOME LEVELS IMPROVE

bull HOWEVER ALMOST ALL OF THIS CONSUMPTION IS IN THE CITIES AND RURAL INDIA IS NEARLY lsquoCHOCOLATE-FREErsquo BUT THE FACT IS THAT THREE QUARTERS OF INDIANS LIVE IN RURAL AREAS ldquoAVERAGE SUMMERTIME TEMPERATURES REACH 43 DEGREES CELSIUS IN INDIA CHOCOLATE MELTS AT BODY TEMPERATURE OF 36 DEGREESrdquo

DEMOGRAPHIC SEGMENTATION

AGE-

bull CHILDREN - 55

bull ADULTS - 12

bull YOUNG ADULTS - 33

bull INCOME LEVEL- IN THE MIDDLE AND HIGHER INCOME GROUPS

MARKETING MIX

bull THE TOOLS AVAILABLE TO A BUSINESS TO GAIN THE REACTION IT IS SEEKING FROM ITS TARGET MARKET IN RELATION TO ITS MARKETING OBJECTIVES IT IS THE GENERALLY ACCEPTED AS THE USE AND SPECIFICATION OF THE ldquoFOUR PrsquoSrdquo DESCRIBING THE STRATEGIC POSITION OF A PRODUCT IN THE MARKETPLACE

bull PRODUCTbull PRICEbull PLACEbull PROMOTION

PRODUCT

bull PRODUCT VARIANTS bull CURRENTLY CADBURY INDIA OPERATES IN

FOUR CATEGORIES VIZ CHOCOLATE CONFECTIONERY MILK FOOD DRINKS CANDY AND GUM CATEGORY

bull CADBURY DAIRY MILK 5 STAR PERK EacuteCLAIRS AND CELEBRATIONS

bull CANDY CATEGORY HALLSbull BUBBLE GUM BRAND BUBBALOObull BOURNVITA - THE LEADING MALTED FOOD

DRINK (MFD)

PRODUCT INNOVATIONS bull 1048766 5 STAR

bull CONSUMER FEEDBACK SUGGESTED THAT THE OLD 5 STAR WAS TOO CHEWY AND PEOPLE COMPLAINED OF IT STICKING TO THEIR TEETH IT WAS MADE SOFTER AND MELTED EASILY IN THE MOUTH amp INTRODUCED AS 5 STAR CRUNCHY

bull 1048766 PERK

bull PERK WAS MADE MUCH LIGHTER AND THE SIZE OF THE BAR INCREASED TO MATCH NESTLErsquoS MUNCH PERK HAD BEEN UNDER FIRE FROM NESTLErsquoS DEADLY DUO OF KITKAT AND MUNCH BUT AFTER THE RELAUNCH ITS MARKETSHARE IS TWO PER CENT MORE THAN KITKATrsquoS AND THE FIVE-YEAR-OLD BRAND IS NOW ALMOST AS BIG AS THE DECADES-OLD 5 STAR IN SIZE BOTH IN THE REGION OF RS 50-55 CRORE

bull 1048766 HEROES

bull PACKAGING INNOVATION HAS PLAYED A VITAL ROLE IN REVAMPING OF VARIOUS CADBURYrsquoS BRANDSHEROES BRAND IS SIMPLY A MULTI-PACK WITH MINIATURES OF ALL ITS MOST POPULAR BRANDS IN A SINGLEOUTER CASE

PACKAGINGbull

THE PACKAGING WAS CHANGED TO INCLUDE A SEALED PLASTIC WRAPPER INSIDE THE OUTSIDE FOIL CADBURYrsquoS LAUNCHED A NEW PURITY-SEALED PACKAGING FOR ITS FLAGSHIP PRODUCT CADBURY DAIRY MILK OVER THE NEXT FEW WEEKS CADBURY WILL WORK TOWARDS INTRODUCING EITHER A HEATSEALED OR A FLOW-PACK PACKAGING THAT OFFERS A HIGH LEVEL OF RESISTANCE TO INFESTATION FROM

bull IMPROPER STORAGE CADBURY INVESTED NEARLY RS 25 CRORE (RS 250 MILLION) THIS YEAR ON NEW MACHINERY FOR THE IMPROVED PACKAGING

PRICE

bull THE RS 5 PRICE POINT ACCOUNTS FOR MORE THAN HALF OF ALL CHOCOLATE SALES

bull TODAY CADBURY HAS FOUR PRODUCTS AT THIS PRICE POINT CDM PERK 5 STAR AND GEMS mdash AND THE FIVE-RUPEE CDM BAR IS ITS SINGLE LARGEST-SELLING SKU

bull ldquoTHIS IS A POTENT PRICE POINT IN INDIA BECAUSE THE AVERAGE PURCHASING POWER IS ABYSMALLY LOWrdquo IS WHAT INDUSTRY ANALYST HAVE TO SAY

VOLUME LED GROWTH STRATEGY

bull CADBURY HAS FOLLOWED A WELL-PLANNED STRATEGY OF FUELLING VOLUME GROWTH BY INTRODUCING SMALLER UNIT PACKS AT LOWER PRICE POINTS SIMULTANEOUSLY THE COMPANY SEEMS TO HAVE ASTUTELY JUGGLED WITH THE LARGER PACK SIZES AND RAISED PRICES TO A DEGREE HIGHER THAN WHAT APPEARS AT FACE

HIRES AT KEARNEY TO CURB COSTS

bull CADBURY INDIA APPOINTED MANAGEMENT CONSULTANCY FIRM AT KEARNEY TO DRAW UP A STRATEGY TO CONTROL COSTS IN SEVERAL AREAS INCLUDING SOURCING OF RAW MATERIALS AND PACKAGING

bull THE CONSULTANCY FIRM WILL ALSO LOOK AT THE SOURCING OF DIRECT AND INDIRECT MATERIALS LIKE RENEGOTIATING WITH SUPPLIERS FOR LONGER TERM CONTRACTS AND VENDOR MANAGEMENT OTHER COSTS (INDIRECT EXPENSES) LIKE TRAVEL COSTS AND HOTELS WERE ALSO BEING STUDIED

EARNINGS SENSITIVITY FACTORS

bull COCOA BEAN PRICES DOMESTIC AS WELL AS INTERNATIONAL PRICES OF KEY RAW MATERIAL - COCOA HAVE SIGNIFICANT IMPACT ON MARGINS

bull EXCISE DUTIES CHANGES IN EXCISE LEVIED ON MALT AND CHOCOLATE INFLUENCES END PRODUCT PRICES AND THEREBY VOLUME GROWTH AS WELL AS MARGINS

bull CHANGES IN CUSTOM DUTIES AND FOREIGN EXCHANGE FLUCTUATION AS 20 OF RAW MATERIAL IS IMPORTED CHANGES IN CUSTOM DUTIES amp FOREIGN EXCHANGE FLUCTUATIONS HAVE SIGNIFICANT IMPACT ON THE FINAL COST OF THE PRODUCT

bull COMPETITION FROM MNCS LIKE NESTLE AS WELL AS IMPORTED BRANDS INCREASING COMPETITION PUTS PRESSURE ON ADVERTISEMENT BUDGET AND MARGINS HOWEVER ON THE POSITIVE SIDE IT HELPS IN EXPANDING THE MARKET

PLACE

bull PLANT LOCATIONSbull 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 MUMBAITHESE FACTORIES CHURN OUT CLOSE TO 8000 TONNES OF CHOCOLATE ANNUALLY

DISTRIBUTIONbull CHOCOLATE NEEDS TO BE DISTRIBUTED DIRECTLY UNLIKE

OTHER FMCG PRODUCTS LIKE SOAPS ANDbull DETERGENTS WHICH CAN BE SOLD THROUGH A

WHOLESALE NETWORK 90 OF CHOCOLATE PRODUCTS ARE SOLD

bull DIRECTLY TO RETAILERS bull CADBURYS DISTRIBUTION NETWORK USED TO

ENCOMPASSES 2100 DISTRIBUTORS AND 450000 RETAILERS bull TO AVOID CANNIBALIZATION OF ITS HIGHER PRICED

PRODUCTS FROM LOWER PRICED ONES CADBURY ISbull SETTING UP TWO SEPARATE DISTRIBUTION CHANNELS ndash

ONE FOR CORE BUSINESS amp OTHER FOR MASS MARKETS

NATURE OF RETAIL OUTLET

bull CHOCOLATES ARE PRIMARILY SOLD THROUGH KIRANA STORES GIFT STORES MEDICAL STORES CANTEENS

bull PAN-BIDI STORES BAKERIES SWEET SHOPS ETC THIS IS TRUE FOR CHOCOLATES ALSO THE SPACE ALLOCATED FOR

bull THE CHOCOLATES WAS LESS WHEN COMPARED TO THE TOTAL AREA OF THE SHOP OF THE SPACE ALLOCATED FOR

bull CHOCOLATES CADBURY BRANDS OCCUPIED MORE THAN NESTLE BRANDS

PROMOTIONbull ADVERTISEMENTSbull THE ADVERTISEMENT AIMED AT CONVEYING THE IDEA THAT NO

SPECIFIC OCCASION IS REQUIRED FOR CONSUMING CDM

bull CELEBRITIES ENDORSEMENTS

bull CADBURY ROPED IN PREITY ZINTA FOR ITS PERK BRAND PREITY ZINTArsquoS ANGELIC DIMPLES LAID THE

bull FOUNDATION FOR WHAT WOULD BECOME THE INDIAN TEENAGERrsquoS FAVORITE SNACK AFTER THIS CAMPAIGN

bull PERKrsquoS SALE SURGED

bull THE BIG lsquoBrsquo FACTORbull THE BIG FACTOR THAT HAS PUSHED UP CDM SALES IS THE

AMITABH BACHCHAN CAMPAIGN CADBURY APPOINTED AMITABH BACHCHAN AS ITS BRAND AMBASSADOR

CHOCOLATE ADS SHIFT FOCUS FROM KIDS TO YOUTH

bull INDIAN CHOCOLATE MARKET IS ALMOST TOTALLY DEPENDED ON PURCHASES OF KIDS

bull WHILE CADBURY IS TRYING TO SELL INDULGENCE TO ADULTS KIT KAT IS SELLING RITUALISTIC BREAK TO

bull TEENAGERS YOUNG ADULTS THIS IS REFLECTED IN THE CHANGING ADVERTISING PATTERNS ACROSS DIFFERENT

bull CHANNELS

CONCLUSION WHEN PRICED AT EVEN RS 2500KG WHILE THERE ARE PLACES IN

INDIA WHERE PEOPLE HAVE NEVER EVEN TASTED CHOCOLATES ONCEUNDERSTANDING THE CONSUMER DEMANDS AND MAINTAINING THE QUALITY WILL BE ESSENTIALCOMPANIES WILL HAVE TO KEEP THEMSELVES ABREAST WITH THE DEVELOPMENTS IN OTHER PARTS OF THE WORLDPRICING IS THE KEY FOR COMPANIES TO MAKE THEIR PRODUCT REACH CONSUMERSrsquo POCKETS RIGHTPRICING WILL MAKE OR BREAK THE PRODUCT SUCCESS ECONOMICAL DISTRIBUTION OF THE PRODUCTS WILLALSO BE EQUALLY IMPORTANTTHE COMPANIESrsquo STRATEGIES SHOULD FOCUS ON DRIVING SALES THROUGH A RIGHT PRODUCT MIXEFFICIENT MATERIALS PROCUREMENT REDUCED WASTAGES INCREASED FACTORY EFFICIENCIES AND IMPROVED SUPPLY CHAIN MANAGEMENTTHERErsquoS AN IMMENSE SCOPE FOR GROWTH OF CHOCOLATE INDUSTRY IN INDIA - GEOGRAPHICALLY AS WELLAS IN THE PRODUCT OFFERING

BIBLIOGRAPHY

bull WWWCADBURYCOUKbull WWWCHOCOLATEREVIEWCOUKbull WWW CADBURYS CHWEPPESCOMbull WWWWIKIPEDIAORGbull WWWCADBURYCOMbull WWWOPPAPERSCOM REFERENCES-bull PHILIP KOTLER

  • BY RAGHAVENDRA MISHRA
  • INTRODUCTION
  • HISTORY
  • MARKETING OBJECTIVES
  • TARGET MARKET
  • MARKET SEGMENTATION
  • GEOGRAPHIC SEGMENTATION
  • DEMOGRAPHIC SEGMENTATION
  • MARKETING MIX
  • PRODUCT
  • PRODUCT INNOVATIONS
  • PACKAGING
  • PRICE
  • VOLUME LED GROWTH STRATEGY
  • HIRES AT KEARNEY TO CURB COSTS
  • EARNINGS SENSITIVITY FACTORS
  • PLACE
  • DISTRIBUTION
  • NATURE OF RETAIL OUTLET
  • PROMOTION
  • CHOCOLATE ADS SHIFT FOCUS FROM KIDS TO YOUTH
  • CONCLUSION
  • BIBLIOGRAPHY
Page 8: Cadbury Marketing Mix(focuses on cadbury india ltd)

DEMOGRAPHIC SEGMENTATION

AGE-

bull CHILDREN - 55

bull ADULTS - 12

bull YOUNG ADULTS - 33

bull INCOME LEVEL- IN THE MIDDLE AND HIGHER INCOME GROUPS

MARKETING MIX

bull THE TOOLS AVAILABLE TO A BUSINESS TO GAIN THE REACTION IT IS SEEKING FROM ITS TARGET MARKET IN RELATION TO ITS MARKETING OBJECTIVES IT IS THE GENERALLY ACCEPTED AS THE USE AND SPECIFICATION OF THE ldquoFOUR PrsquoSrdquo DESCRIBING THE STRATEGIC POSITION OF A PRODUCT IN THE MARKETPLACE

bull PRODUCTbull PRICEbull PLACEbull PROMOTION

PRODUCT

bull PRODUCT VARIANTS bull CURRENTLY CADBURY INDIA OPERATES IN

FOUR CATEGORIES VIZ CHOCOLATE CONFECTIONERY MILK FOOD DRINKS CANDY AND GUM CATEGORY

bull CADBURY DAIRY MILK 5 STAR PERK EacuteCLAIRS AND CELEBRATIONS

bull CANDY CATEGORY HALLSbull BUBBLE GUM BRAND BUBBALOObull BOURNVITA - THE LEADING MALTED FOOD

DRINK (MFD)

PRODUCT INNOVATIONS bull 1048766 5 STAR

bull CONSUMER FEEDBACK SUGGESTED THAT THE OLD 5 STAR WAS TOO CHEWY AND PEOPLE COMPLAINED OF IT STICKING TO THEIR TEETH IT WAS MADE SOFTER AND MELTED EASILY IN THE MOUTH amp INTRODUCED AS 5 STAR CRUNCHY

bull 1048766 PERK

bull PERK WAS MADE MUCH LIGHTER AND THE SIZE OF THE BAR INCREASED TO MATCH NESTLErsquoS MUNCH PERK HAD BEEN UNDER FIRE FROM NESTLErsquoS DEADLY DUO OF KITKAT AND MUNCH BUT AFTER THE RELAUNCH ITS MARKETSHARE IS TWO PER CENT MORE THAN KITKATrsquoS AND THE FIVE-YEAR-OLD BRAND IS NOW ALMOST AS BIG AS THE DECADES-OLD 5 STAR IN SIZE BOTH IN THE REGION OF RS 50-55 CRORE

bull 1048766 HEROES

bull PACKAGING INNOVATION HAS PLAYED A VITAL ROLE IN REVAMPING OF VARIOUS CADBURYrsquoS BRANDSHEROES BRAND IS SIMPLY A MULTI-PACK WITH MINIATURES OF ALL ITS MOST POPULAR BRANDS IN A SINGLEOUTER CASE

PACKAGINGbull

THE PACKAGING WAS CHANGED TO INCLUDE A SEALED PLASTIC WRAPPER INSIDE THE OUTSIDE FOIL CADBURYrsquoS LAUNCHED A NEW PURITY-SEALED PACKAGING FOR ITS FLAGSHIP PRODUCT CADBURY DAIRY MILK OVER THE NEXT FEW WEEKS CADBURY WILL WORK TOWARDS INTRODUCING EITHER A HEATSEALED OR A FLOW-PACK PACKAGING THAT OFFERS A HIGH LEVEL OF RESISTANCE TO INFESTATION FROM

bull IMPROPER STORAGE CADBURY INVESTED NEARLY RS 25 CRORE (RS 250 MILLION) THIS YEAR ON NEW MACHINERY FOR THE IMPROVED PACKAGING

PRICE

bull THE RS 5 PRICE POINT ACCOUNTS FOR MORE THAN HALF OF ALL CHOCOLATE SALES

bull TODAY CADBURY HAS FOUR PRODUCTS AT THIS PRICE POINT CDM PERK 5 STAR AND GEMS mdash AND THE FIVE-RUPEE CDM BAR IS ITS SINGLE LARGEST-SELLING SKU

bull ldquoTHIS IS A POTENT PRICE POINT IN INDIA BECAUSE THE AVERAGE PURCHASING POWER IS ABYSMALLY LOWrdquo IS WHAT INDUSTRY ANALYST HAVE TO SAY

VOLUME LED GROWTH STRATEGY

bull CADBURY HAS FOLLOWED A WELL-PLANNED STRATEGY OF FUELLING VOLUME GROWTH BY INTRODUCING SMALLER UNIT PACKS AT LOWER PRICE POINTS SIMULTANEOUSLY THE COMPANY SEEMS TO HAVE ASTUTELY JUGGLED WITH THE LARGER PACK SIZES AND RAISED PRICES TO A DEGREE HIGHER THAN WHAT APPEARS AT FACE

HIRES AT KEARNEY TO CURB COSTS

bull CADBURY INDIA APPOINTED MANAGEMENT CONSULTANCY FIRM AT KEARNEY TO DRAW UP A STRATEGY TO CONTROL COSTS IN SEVERAL AREAS INCLUDING SOURCING OF RAW MATERIALS AND PACKAGING

bull THE CONSULTANCY FIRM WILL ALSO LOOK AT THE SOURCING OF DIRECT AND INDIRECT MATERIALS LIKE RENEGOTIATING WITH SUPPLIERS FOR LONGER TERM CONTRACTS AND VENDOR MANAGEMENT OTHER COSTS (INDIRECT EXPENSES) LIKE TRAVEL COSTS AND HOTELS WERE ALSO BEING STUDIED

EARNINGS SENSITIVITY FACTORS

bull COCOA BEAN PRICES DOMESTIC AS WELL AS INTERNATIONAL PRICES OF KEY RAW MATERIAL - COCOA HAVE SIGNIFICANT IMPACT ON MARGINS

bull EXCISE DUTIES CHANGES IN EXCISE LEVIED ON MALT AND CHOCOLATE INFLUENCES END PRODUCT PRICES AND THEREBY VOLUME GROWTH AS WELL AS MARGINS

bull CHANGES IN CUSTOM DUTIES AND FOREIGN EXCHANGE FLUCTUATION AS 20 OF RAW MATERIAL IS IMPORTED CHANGES IN CUSTOM DUTIES amp FOREIGN EXCHANGE FLUCTUATIONS HAVE SIGNIFICANT IMPACT ON THE FINAL COST OF THE PRODUCT

bull COMPETITION FROM MNCS LIKE NESTLE AS WELL AS IMPORTED BRANDS INCREASING COMPETITION PUTS PRESSURE ON ADVERTISEMENT BUDGET AND MARGINS HOWEVER ON THE POSITIVE SIDE IT HELPS IN EXPANDING THE MARKET

PLACE

bull PLANT LOCATIONSbull 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 MUMBAITHESE FACTORIES CHURN OUT CLOSE TO 8000 TONNES OF CHOCOLATE ANNUALLY

DISTRIBUTIONbull CHOCOLATE NEEDS TO BE DISTRIBUTED DIRECTLY UNLIKE

OTHER FMCG PRODUCTS LIKE SOAPS ANDbull DETERGENTS WHICH CAN BE SOLD THROUGH A

WHOLESALE NETWORK 90 OF CHOCOLATE PRODUCTS ARE SOLD

bull DIRECTLY TO RETAILERS bull CADBURYS DISTRIBUTION NETWORK USED TO

ENCOMPASSES 2100 DISTRIBUTORS AND 450000 RETAILERS bull TO AVOID CANNIBALIZATION OF ITS HIGHER PRICED

PRODUCTS FROM LOWER PRICED ONES CADBURY ISbull SETTING UP TWO SEPARATE DISTRIBUTION CHANNELS ndash

ONE FOR CORE BUSINESS amp OTHER FOR MASS MARKETS

NATURE OF RETAIL OUTLET

bull CHOCOLATES ARE PRIMARILY SOLD THROUGH KIRANA STORES GIFT STORES MEDICAL STORES CANTEENS

bull PAN-BIDI STORES BAKERIES SWEET SHOPS ETC THIS IS TRUE FOR CHOCOLATES ALSO THE SPACE ALLOCATED FOR

bull THE CHOCOLATES WAS LESS WHEN COMPARED TO THE TOTAL AREA OF THE SHOP OF THE SPACE ALLOCATED FOR

bull CHOCOLATES CADBURY BRANDS OCCUPIED MORE THAN NESTLE BRANDS

PROMOTIONbull ADVERTISEMENTSbull THE ADVERTISEMENT AIMED AT CONVEYING THE IDEA THAT NO

SPECIFIC OCCASION IS REQUIRED FOR CONSUMING CDM

bull CELEBRITIES ENDORSEMENTS

bull CADBURY ROPED IN PREITY ZINTA FOR ITS PERK BRAND PREITY ZINTArsquoS ANGELIC DIMPLES LAID THE

bull FOUNDATION FOR WHAT WOULD BECOME THE INDIAN TEENAGERrsquoS FAVORITE SNACK AFTER THIS CAMPAIGN

bull PERKrsquoS SALE SURGED

bull THE BIG lsquoBrsquo FACTORbull THE BIG FACTOR THAT HAS PUSHED UP CDM SALES IS THE

AMITABH BACHCHAN CAMPAIGN CADBURY APPOINTED AMITABH BACHCHAN AS ITS BRAND AMBASSADOR

CHOCOLATE ADS SHIFT FOCUS FROM KIDS TO YOUTH

bull INDIAN CHOCOLATE MARKET IS ALMOST TOTALLY DEPENDED ON PURCHASES OF KIDS

bull WHILE CADBURY IS TRYING TO SELL INDULGENCE TO ADULTS KIT KAT IS SELLING RITUALISTIC BREAK TO

bull TEENAGERS YOUNG ADULTS THIS IS REFLECTED IN THE CHANGING ADVERTISING PATTERNS ACROSS DIFFERENT

bull CHANNELS

CONCLUSION WHEN PRICED AT EVEN RS 2500KG WHILE THERE ARE PLACES IN

INDIA WHERE PEOPLE HAVE NEVER EVEN TASTED CHOCOLATES ONCEUNDERSTANDING THE CONSUMER DEMANDS AND MAINTAINING THE QUALITY WILL BE ESSENTIALCOMPANIES WILL HAVE TO KEEP THEMSELVES ABREAST WITH THE DEVELOPMENTS IN OTHER PARTS OF THE WORLDPRICING IS THE KEY FOR COMPANIES TO MAKE THEIR PRODUCT REACH CONSUMERSrsquo POCKETS RIGHTPRICING WILL MAKE OR BREAK THE PRODUCT SUCCESS ECONOMICAL DISTRIBUTION OF THE PRODUCTS WILLALSO BE EQUALLY IMPORTANTTHE COMPANIESrsquo STRATEGIES SHOULD FOCUS ON DRIVING SALES THROUGH A RIGHT PRODUCT MIXEFFICIENT MATERIALS PROCUREMENT REDUCED WASTAGES INCREASED FACTORY EFFICIENCIES AND IMPROVED SUPPLY CHAIN MANAGEMENTTHERErsquoS AN IMMENSE SCOPE FOR GROWTH OF CHOCOLATE INDUSTRY IN INDIA - GEOGRAPHICALLY AS WELLAS IN THE PRODUCT OFFERING

BIBLIOGRAPHY

bull WWWCADBURYCOUKbull WWWCHOCOLATEREVIEWCOUKbull WWW CADBURYS CHWEPPESCOMbull WWWWIKIPEDIAORGbull WWWCADBURYCOMbull WWWOPPAPERSCOM REFERENCES-bull PHILIP KOTLER

  • BY RAGHAVENDRA MISHRA
  • INTRODUCTION
  • HISTORY
  • MARKETING OBJECTIVES
  • TARGET MARKET
  • MARKET SEGMENTATION
  • GEOGRAPHIC SEGMENTATION
  • DEMOGRAPHIC SEGMENTATION
  • MARKETING MIX
  • PRODUCT
  • PRODUCT INNOVATIONS
  • PACKAGING
  • PRICE
  • VOLUME LED GROWTH STRATEGY
  • HIRES AT KEARNEY TO CURB COSTS
  • EARNINGS SENSITIVITY FACTORS
  • PLACE
  • DISTRIBUTION
  • NATURE OF RETAIL OUTLET
  • PROMOTION
  • CHOCOLATE ADS SHIFT FOCUS FROM KIDS TO YOUTH
  • CONCLUSION
  • BIBLIOGRAPHY
Page 9: Cadbury Marketing Mix(focuses on cadbury india ltd)

MARKETING MIX

bull THE TOOLS AVAILABLE TO A BUSINESS TO GAIN THE REACTION IT IS SEEKING FROM ITS TARGET MARKET IN RELATION TO ITS MARKETING OBJECTIVES IT IS THE GENERALLY ACCEPTED AS THE USE AND SPECIFICATION OF THE ldquoFOUR PrsquoSrdquo DESCRIBING THE STRATEGIC POSITION OF A PRODUCT IN THE MARKETPLACE

bull PRODUCTbull PRICEbull PLACEbull PROMOTION

PRODUCT

bull PRODUCT VARIANTS bull CURRENTLY CADBURY INDIA OPERATES IN

FOUR CATEGORIES VIZ CHOCOLATE CONFECTIONERY MILK FOOD DRINKS CANDY AND GUM CATEGORY

bull CADBURY DAIRY MILK 5 STAR PERK EacuteCLAIRS AND CELEBRATIONS

bull CANDY CATEGORY HALLSbull BUBBLE GUM BRAND BUBBALOObull BOURNVITA - THE LEADING MALTED FOOD

DRINK (MFD)

PRODUCT INNOVATIONS bull 1048766 5 STAR

bull CONSUMER FEEDBACK SUGGESTED THAT THE OLD 5 STAR WAS TOO CHEWY AND PEOPLE COMPLAINED OF IT STICKING TO THEIR TEETH IT WAS MADE SOFTER AND MELTED EASILY IN THE MOUTH amp INTRODUCED AS 5 STAR CRUNCHY

bull 1048766 PERK

bull PERK WAS MADE MUCH LIGHTER AND THE SIZE OF THE BAR INCREASED TO MATCH NESTLErsquoS MUNCH PERK HAD BEEN UNDER FIRE FROM NESTLErsquoS DEADLY DUO OF KITKAT AND MUNCH BUT AFTER THE RELAUNCH ITS MARKETSHARE IS TWO PER CENT MORE THAN KITKATrsquoS AND THE FIVE-YEAR-OLD BRAND IS NOW ALMOST AS BIG AS THE DECADES-OLD 5 STAR IN SIZE BOTH IN THE REGION OF RS 50-55 CRORE

bull 1048766 HEROES

bull PACKAGING INNOVATION HAS PLAYED A VITAL ROLE IN REVAMPING OF VARIOUS CADBURYrsquoS BRANDSHEROES BRAND IS SIMPLY A MULTI-PACK WITH MINIATURES OF ALL ITS MOST POPULAR BRANDS IN A SINGLEOUTER CASE

PACKAGINGbull

THE PACKAGING WAS CHANGED TO INCLUDE A SEALED PLASTIC WRAPPER INSIDE THE OUTSIDE FOIL CADBURYrsquoS LAUNCHED A NEW PURITY-SEALED PACKAGING FOR ITS FLAGSHIP PRODUCT CADBURY DAIRY MILK OVER THE NEXT FEW WEEKS CADBURY WILL WORK TOWARDS INTRODUCING EITHER A HEATSEALED OR A FLOW-PACK PACKAGING THAT OFFERS A HIGH LEVEL OF RESISTANCE TO INFESTATION FROM

bull IMPROPER STORAGE CADBURY INVESTED NEARLY RS 25 CRORE (RS 250 MILLION) THIS YEAR ON NEW MACHINERY FOR THE IMPROVED PACKAGING

PRICE

bull THE RS 5 PRICE POINT ACCOUNTS FOR MORE THAN HALF OF ALL CHOCOLATE SALES

bull TODAY CADBURY HAS FOUR PRODUCTS AT THIS PRICE POINT CDM PERK 5 STAR AND GEMS mdash AND THE FIVE-RUPEE CDM BAR IS ITS SINGLE LARGEST-SELLING SKU

bull ldquoTHIS IS A POTENT PRICE POINT IN INDIA BECAUSE THE AVERAGE PURCHASING POWER IS ABYSMALLY LOWrdquo IS WHAT INDUSTRY ANALYST HAVE TO SAY

VOLUME LED GROWTH STRATEGY

bull CADBURY HAS FOLLOWED A WELL-PLANNED STRATEGY OF FUELLING VOLUME GROWTH BY INTRODUCING SMALLER UNIT PACKS AT LOWER PRICE POINTS SIMULTANEOUSLY THE COMPANY SEEMS TO HAVE ASTUTELY JUGGLED WITH THE LARGER PACK SIZES AND RAISED PRICES TO A DEGREE HIGHER THAN WHAT APPEARS AT FACE

HIRES AT KEARNEY TO CURB COSTS

bull CADBURY INDIA APPOINTED MANAGEMENT CONSULTANCY FIRM AT KEARNEY TO DRAW UP A STRATEGY TO CONTROL COSTS IN SEVERAL AREAS INCLUDING SOURCING OF RAW MATERIALS AND PACKAGING

bull THE CONSULTANCY FIRM WILL ALSO LOOK AT THE SOURCING OF DIRECT AND INDIRECT MATERIALS LIKE RENEGOTIATING WITH SUPPLIERS FOR LONGER TERM CONTRACTS AND VENDOR MANAGEMENT OTHER COSTS (INDIRECT EXPENSES) LIKE TRAVEL COSTS AND HOTELS WERE ALSO BEING STUDIED

EARNINGS SENSITIVITY FACTORS

bull COCOA BEAN PRICES DOMESTIC AS WELL AS INTERNATIONAL PRICES OF KEY RAW MATERIAL - COCOA HAVE SIGNIFICANT IMPACT ON MARGINS

bull EXCISE DUTIES CHANGES IN EXCISE LEVIED ON MALT AND CHOCOLATE INFLUENCES END PRODUCT PRICES AND THEREBY VOLUME GROWTH AS WELL AS MARGINS

bull CHANGES IN CUSTOM DUTIES AND FOREIGN EXCHANGE FLUCTUATION AS 20 OF RAW MATERIAL IS IMPORTED CHANGES IN CUSTOM DUTIES amp FOREIGN EXCHANGE FLUCTUATIONS HAVE SIGNIFICANT IMPACT ON THE FINAL COST OF THE PRODUCT

bull COMPETITION FROM MNCS LIKE NESTLE AS WELL AS IMPORTED BRANDS INCREASING COMPETITION PUTS PRESSURE ON ADVERTISEMENT BUDGET AND MARGINS HOWEVER ON THE POSITIVE SIDE IT HELPS IN EXPANDING THE MARKET

PLACE

bull PLANT LOCATIONSbull 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 MUMBAITHESE FACTORIES CHURN OUT CLOSE TO 8000 TONNES OF CHOCOLATE ANNUALLY

DISTRIBUTIONbull CHOCOLATE NEEDS TO BE DISTRIBUTED DIRECTLY UNLIKE

OTHER FMCG PRODUCTS LIKE SOAPS ANDbull DETERGENTS WHICH CAN BE SOLD THROUGH A

WHOLESALE NETWORK 90 OF CHOCOLATE PRODUCTS ARE SOLD

bull DIRECTLY TO RETAILERS bull CADBURYS DISTRIBUTION NETWORK USED TO

ENCOMPASSES 2100 DISTRIBUTORS AND 450000 RETAILERS bull TO AVOID CANNIBALIZATION OF ITS HIGHER PRICED

PRODUCTS FROM LOWER PRICED ONES CADBURY ISbull SETTING UP TWO SEPARATE DISTRIBUTION CHANNELS ndash

ONE FOR CORE BUSINESS amp OTHER FOR MASS MARKETS

NATURE OF RETAIL OUTLET

bull CHOCOLATES ARE PRIMARILY SOLD THROUGH KIRANA STORES GIFT STORES MEDICAL STORES CANTEENS

bull PAN-BIDI STORES BAKERIES SWEET SHOPS ETC THIS IS TRUE FOR CHOCOLATES ALSO THE SPACE ALLOCATED FOR

bull THE CHOCOLATES WAS LESS WHEN COMPARED TO THE TOTAL AREA OF THE SHOP OF THE SPACE ALLOCATED FOR

bull CHOCOLATES CADBURY BRANDS OCCUPIED MORE THAN NESTLE BRANDS

PROMOTIONbull ADVERTISEMENTSbull THE ADVERTISEMENT AIMED AT CONVEYING THE IDEA THAT NO

SPECIFIC OCCASION IS REQUIRED FOR CONSUMING CDM

bull CELEBRITIES ENDORSEMENTS

bull CADBURY ROPED IN PREITY ZINTA FOR ITS PERK BRAND PREITY ZINTArsquoS ANGELIC DIMPLES LAID THE

bull FOUNDATION FOR WHAT WOULD BECOME THE INDIAN TEENAGERrsquoS FAVORITE SNACK AFTER THIS CAMPAIGN

bull PERKrsquoS SALE SURGED

bull THE BIG lsquoBrsquo FACTORbull THE BIG FACTOR THAT HAS PUSHED UP CDM SALES IS THE

AMITABH BACHCHAN CAMPAIGN CADBURY APPOINTED AMITABH BACHCHAN AS ITS BRAND AMBASSADOR

CHOCOLATE ADS SHIFT FOCUS FROM KIDS TO YOUTH

bull INDIAN CHOCOLATE MARKET IS ALMOST TOTALLY DEPENDED ON PURCHASES OF KIDS

bull WHILE CADBURY IS TRYING TO SELL INDULGENCE TO ADULTS KIT KAT IS SELLING RITUALISTIC BREAK TO

bull TEENAGERS YOUNG ADULTS THIS IS REFLECTED IN THE CHANGING ADVERTISING PATTERNS ACROSS DIFFERENT

bull CHANNELS

CONCLUSION WHEN PRICED AT EVEN RS 2500KG WHILE THERE ARE PLACES IN

INDIA WHERE PEOPLE HAVE NEVER EVEN TASTED CHOCOLATES ONCEUNDERSTANDING THE CONSUMER DEMANDS AND MAINTAINING THE QUALITY WILL BE ESSENTIALCOMPANIES WILL HAVE TO KEEP THEMSELVES ABREAST WITH THE DEVELOPMENTS IN OTHER PARTS OF THE WORLDPRICING IS THE KEY FOR COMPANIES TO MAKE THEIR PRODUCT REACH CONSUMERSrsquo POCKETS RIGHTPRICING WILL MAKE OR BREAK THE PRODUCT SUCCESS ECONOMICAL DISTRIBUTION OF THE PRODUCTS WILLALSO BE EQUALLY IMPORTANTTHE COMPANIESrsquo STRATEGIES SHOULD FOCUS ON DRIVING SALES THROUGH A RIGHT PRODUCT MIXEFFICIENT MATERIALS PROCUREMENT REDUCED WASTAGES INCREASED FACTORY EFFICIENCIES AND IMPROVED SUPPLY CHAIN MANAGEMENTTHERErsquoS AN IMMENSE SCOPE FOR GROWTH OF CHOCOLATE INDUSTRY IN INDIA - GEOGRAPHICALLY AS WELLAS IN THE PRODUCT OFFERING

BIBLIOGRAPHY

bull WWWCADBURYCOUKbull WWWCHOCOLATEREVIEWCOUKbull WWW CADBURYS CHWEPPESCOMbull WWWWIKIPEDIAORGbull WWWCADBURYCOMbull WWWOPPAPERSCOM REFERENCES-bull PHILIP KOTLER

  • BY RAGHAVENDRA MISHRA
  • INTRODUCTION
  • HISTORY
  • MARKETING OBJECTIVES
  • TARGET MARKET
  • MARKET SEGMENTATION
  • GEOGRAPHIC SEGMENTATION
  • DEMOGRAPHIC SEGMENTATION
  • MARKETING MIX
  • PRODUCT
  • PRODUCT INNOVATIONS
  • PACKAGING
  • PRICE
  • VOLUME LED GROWTH STRATEGY
  • HIRES AT KEARNEY TO CURB COSTS
  • EARNINGS SENSITIVITY FACTORS
  • PLACE
  • DISTRIBUTION
  • NATURE OF RETAIL OUTLET
  • PROMOTION
  • CHOCOLATE ADS SHIFT FOCUS FROM KIDS TO YOUTH
  • CONCLUSION
  • BIBLIOGRAPHY
Page 10: Cadbury Marketing Mix(focuses on cadbury india ltd)

PRODUCT

bull PRODUCT VARIANTS bull CURRENTLY CADBURY INDIA OPERATES IN

FOUR CATEGORIES VIZ CHOCOLATE CONFECTIONERY MILK FOOD DRINKS CANDY AND GUM CATEGORY

bull CADBURY DAIRY MILK 5 STAR PERK EacuteCLAIRS AND CELEBRATIONS

bull CANDY CATEGORY HALLSbull BUBBLE GUM BRAND BUBBALOObull BOURNVITA - THE LEADING MALTED FOOD

DRINK (MFD)

PRODUCT INNOVATIONS bull 1048766 5 STAR

bull CONSUMER FEEDBACK SUGGESTED THAT THE OLD 5 STAR WAS TOO CHEWY AND PEOPLE COMPLAINED OF IT STICKING TO THEIR TEETH IT WAS MADE SOFTER AND MELTED EASILY IN THE MOUTH amp INTRODUCED AS 5 STAR CRUNCHY

bull 1048766 PERK

bull PERK WAS MADE MUCH LIGHTER AND THE SIZE OF THE BAR INCREASED TO MATCH NESTLErsquoS MUNCH PERK HAD BEEN UNDER FIRE FROM NESTLErsquoS DEADLY DUO OF KITKAT AND MUNCH BUT AFTER THE RELAUNCH ITS MARKETSHARE IS TWO PER CENT MORE THAN KITKATrsquoS AND THE FIVE-YEAR-OLD BRAND IS NOW ALMOST AS BIG AS THE DECADES-OLD 5 STAR IN SIZE BOTH IN THE REGION OF RS 50-55 CRORE

bull 1048766 HEROES

bull PACKAGING INNOVATION HAS PLAYED A VITAL ROLE IN REVAMPING OF VARIOUS CADBURYrsquoS BRANDSHEROES BRAND IS SIMPLY A MULTI-PACK WITH MINIATURES OF ALL ITS MOST POPULAR BRANDS IN A SINGLEOUTER CASE

PACKAGINGbull

THE PACKAGING WAS CHANGED TO INCLUDE A SEALED PLASTIC WRAPPER INSIDE THE OUTSIDE FOIL CADBURYrsquoS LAUNCHED A NEW PURITY-SEALED PACKAGING FOR ITS FLAGSHIP PRODUCT CADBURY DAIRY MILK OVER THE NEXT FEW WEEKS CADBURY WILL WORK TOWARDS INTRODUCING EITHER A HEATSEALED OR A FLOW-PACK PACKAGING THAT OFFERS A HIGH LEVEL OF RESISTANCE TO INFESTATION FROM

bull IMPROPER STORAGE CADBURY INVESTED NEARLY RS 25 CRORE (RS 250 MILLION) THIS YEAR ON NEW MACHINERY FOR THE IMPROVED PACKAGING

PRICE

bull THE RS 5 PRICE POINT ACCOUNTS FOR MORE THAN HALF OF ALL CHOCOLATE SALES

bull TODAY CADBURY HAS FOUR PRODUCTS AT THIS PRICE POINT CDM PERK 5 STAR AND GEMS mdash AND THE FIVE-RUPEE CDM BAR IS ITS SINGLE LARGEST-SELLING SKU

bull ldquoTHIS IS A POTENT PRICE POINT IN INDIA BECAUSE THE AVERAGE PURCHASING POWER IS ABYSMALLY LOWrdquo IS WHAT INDUSTRY ANALYST HAVE TO SAY

VOLUME LED GROWTH STRATEGY

bull CADBURY HAS FOLLOWED A WELL-PLANNED STRATEGY OF FUELLING VOLUME GROWTH BY INTRODUCING SMALLER UNIT PACKS AT LOWER PRICE POINTS SIMULTANEOUSLY THE COMPANY SEEMS TO HAVE ASTUTELY JUGGLED WITH THE LARGER PACK SIZES AND RAISED PRICES TO A DEGREE HIGHER THAN WHAT APPEARS AT FACE

HIRES AT KEARNEY TO CURB COSTS

bull CADBURY INDIA APPOINTED MANAGEMENT CONSULTANCY FIRM AT KEARNEY TO DRAW UP A STRATEGY TO CONTROL COSTS IN SEVERAL AREAS INCLUDING SOURCING OF RAW MATERIALS AND PACKAGING

bull THE CONSULTANCY FIRM WILL ALSO LOOK AT THE SOURCING OF DIRECT AND INDIRECT MATERIALS LIKE RENEGOTIATING WITH SUPPLIERS FOR LONGER TERM CONTRACTS AND VENDOR MANAGEMENT OTHER COSTS (INDIRECT EXPENSES) LIKE TRAVEL COSTS AND HOTELS WERE ALSO BEING STUDIED

EARNINGS SENSITIVITY FACTORS

bull COCOA BEAN PRICES DOMESTIC AS WELL AS INTERNATIONAL PRICES OF KEY RAW MATERIAL - COCOA HAVE SIGNIFICANT IMPACT ON MARGINS

bull EXCISE DUTIES CHANGES IN EXCISE LEVIED ON MALT AND CHOCOLATE INFLUENCES END PRODUCT PRICES AND THEREBY VOLUME GROWTH AS WELL AS MARGINS

bull CHANGES IN CUSTOM DUTIES AND FOREIGN EXCHANGE FLUCTUATION AS 20 OF RAW MATERIAL IS IMPORTED CHANGES IN CUSTOM DUTIES amp FOREIGN EXCHANGE FLUCTUATIONS HAVE SIGNIFICANT IMPACT ON THE FINAL COST OF THE PRODUCT

bull COMPETITION FROM MNCS LIKE NESTLE AS WELL AS IMPORTED BRANDS INCREASING COMPETITION PUTS PRESSURE ON ADVERTISEMENT BUDGET AND MARGINS HOWEVER ON THE POSITIVE SIDE IT HELPS IN EXPANDING THE MARKET

PLACE

bull PLANT LOCATIONSbull 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 MUMBAITHESE FACTORIES CHURN OUT CLOSE TO 8000 TONNES OF CHOCOLATE ANNUALLY

DISTRIBUTIONbull CHOCOLATE NEEDS TO BE DISTRIBUTED DIRECTLY UNLIKE

OTHER FMCG PRODUCTS LIKE SOAPS ANDbull DETERGENTS WHICH CAN BE SOLD THROUGH A

WHOLESALE NETWORK 90 OF CHOCOLATE PRODUCTS ARE SOLD

bull DIRECTLY TO RETAILERS bull CADBURYS DISTRIBUTION NETWORK USED TO

ENCOMPASSES 2100 DISTRIBUTORS AND 450000 RETAILERS bull TO AVOID CANNIBALIZATION OF ITS HIGHER PRICED

PRODUCTS FROM LOWER PRICED ONES CADBURY ISbull SETTING UP TWO SEPARATE DISTRIBUTION CHANNELS ndash

ONE FOR CORE BUSINESS amp OTHER FOR MASS MARKETS

NATURE OF RETAIL OUTLET

bull CHOCOLATES ARE PRIMARILY SOLD THROUGH KIRANA STORES GIFT STORES MEDICAL STORES CANTEENS

bull PAN-BIDI STORES BAKERIES SWEET SHOPS ETC THIS IS TRUE FOR CHOCOLATES ALSO THE SPACE ALLOCATED FOR

bull THE CHOCOLATES WAS LESS WHEN COMPARED TO THE TOTAL AREA OF THE SHOP OF THE SPACE ALLOCATED FOR

bull CHOCOLATES CADBURY BRANDS OCCUPIED MORE THAN NESTLE BRANDS

PROMOTIONbull ADVERTISEMENTSbull THE ADVERTISEMENT AIMED AT CONVEYING THE IDEA THAT NO

SPECIFIC OCCASION IS REQUIRED FOR CONSUMING CDM

bull CELEBRITIES ENDORSEMENTS

bull CADBURY ROPED IN PREITY ZINTA FOR ITS PERK BRAND PREITY ZINTArsquoS ANGELIC DIMPLES LAID THE

bull FOUNDATION FOR WHAT WOULD BECOME THE INDIAN TEENAGERrsquoS FAVORITE SNACK AFTER THIS CAMPAIGN

bull PERKrsquoS SALE SURGED

bull THE BIG lsquoBrsquo FACTORbull THE BIG FACTOR THAT HAS PUSHED UP CDM SALES IS THE

AMITABH BACHCHAN CAMPAIGN CADBURY APPOINTED AMITABH BACHCHAN AS ITS BRAND AMBASSADOR

CHOCOLATE ADS SHIFT FOCUS FROM KIDS TO YOUTH

bull INDIAN CHOCOLATE MARKET IS ALMOST TOTALLY DEPENDED ON PURCHASES OF KIDS

bull WHILE CADBURY IS TRYING TO SELL INDULGENCE TO ADULTS KIT KAT IS SELLING RITUALISTIC BREAK TO

bull TEENAGERS YOUNG ADULTS THIS IS REFLECTED IN THE CHANGING ADVERTISING PATTERNS ACROSS DIFFERENT

bull CHANNELS

CONCLUSION WHEN PRICED AT EVEN RS 2500KG WHILE THERE ARE PLACES IN

INDIA WHERE PEOPLE HAVE NEVER EVEN TASTED CHOCOLATES ONCEUNDERSTANDING THE CONSUMER DEMANDS AND MAINTAINING THE QUALITY WILL BE ESSENTIALCOMPANIES WILL HAVE TO KEEP THEMSELVES ABREAST WITH THE DEVELOPMENTS IN OTHER PARTS OF THE WORLDPRICING IS THE KEY FOR COMPANIES TO MAKE THEIR PRODUCT REACH CONSUMERSrsquo POCKETS RIGHTPRICING WILL MAKE OR BREAK THE PRODUCT SUCCESS ECONOMICAL DISTRIBUTION OF THE PRODUCTS WILLALSO BE EQUALLY IMPORTANTTHE COMPANIESrsquo STRATEGIES SHOULD FOCUS ON DRIVING SALES THROUGH A RIGHT PRODUCT MIXEFFICIENT MATERIALS PROCUREMENT REDUCED WASTAGES INCREASED FACTORY EFFICIENCIES AND IMPROVED SUPPLY CHAIN MANAGEMENTTHERErsquoS AN IMMENSE SCOPE FOR GROWTH OF CHOCOLATE INDUSTRY IN INDIA - GEOGRAPHICALLY AS WELLAS IN THE PRODUCT OFFERING

BIBLIOGRAPHY

bull WWWCADBURYCOUKbull WWWCHOCOLATEREVIEWCOUKbull WWW CADBURYS CHWEPPESCOMbull WWWWIKIPEDIAORGbull WWWCADBURYCOMbull WWWOPPAPERSCOM REFERENCES-bull PHILIP KOTLER

  • BY RAGHAVENDRA MISHRA
  • INTRODUCTION
  • HISTORY
  • MARKETING OBJECTIVES
  • TARGET MARKET
  • MARKET SEGMENTATION
  • GEOGRAPHIC SEGMENTATION
  • DEMOGRAPHIC SEGMENTATION
  • MARKETING MIX
  • PRODUCT
  • PRODUCT INNOVATIONS
  • PACKAGING
  • PRICE
  • VOLUME LED GROWTH STRATEGY
  • HIRES AT KEARNEY TO CURB COSTS
  • EARNINGS SENSITIVITY FACTORS
  • PLACE
  • DISTRIBUTION
  • NATURE OF RETAIL OUTLET
  • PROMOTION
  • CHOCOLATE ADS SHIFT FOCUS FROM KIDS TO YOUTH
  • CONCLUSION
  • BIBLIOGRAPHY
Page 11: Cadbury Marketing Mix(focuses on cadbury india ltd)

PRODUCT INNOVATIONS bull 1048766 5 STAR

bull CONSUMER FEEDBACK SUGGESTED THAT THE OLD 5 STAR WAS TOO CHEWY AND PEOPLE COMPLAINED OF IT STICKING TO THEIR TEETH IT WAS MADE SOFTER AND MELTED EASILY IN THE MOUTH amp INTRODUCED AS 5 STAR CRUNCHY

bull 1048766 PERK

bull PERK WAS MADE MUCH LIGHTER AND THE SIZE OF THE BAR INCREASED TO MATCH NESTLErsquoS MUNCH PERK HAD BEEN UNDER FIRE FROM NESTLErsquoS DEADLY DUO OF KITKAT AND MUNCH BUT AFTER THE RELAUNCH ITS MARKETSHARE IS TWO PER CENT MORE THAN KITKATrsquoS AND THE FIVE-YEAR-OLD BRAND IS NOW ALMOST AS BIG AS THE DECADES-OLD 5 STAR IN SIZE BOTH IN THE REGION OF RS 50-55 CRORE

bull 1048766 HEROES

bull PACKAGING INNOVATION HAS PLAYED A VITAL ROLE IN REVAMPING OF VARIOUS CADBURYrsquoS BRANDSHEROES BRAND IS SIMPLY A MULTI-PACK WITH MINIATURES OF ALL ITS MOST POPULAR BRANDS IN A SINGLEOUTER CASE

PACKAGINGbull

THE PACKAGING WAS CHANGED TO INCLUDE A SEALED PLASTIC WRAPPER INSIDE THE OUTSIDE FOIL CADBURYrsquoS LAUNCHED A NEW PURITY-SEALED PACKAGING FOR ITS FLAGSHIP PRODUCT CADBURY DAIRY MILK OVER THE NEXT FEW WEEKS CADBURY WILL WORK TOWARDS INTRODUCING EITHER A HEATSEALED OR A FLOW-PACK PACKAGING THAT OFFERS A HIGH LEVEL OF RESISTANCE TO INFESTATION FROM

bull IMPROPER STORAGE CADBURY INVESTED NEARLY RS 25 CRORE (RS 250 MILLION) THIS YEAR ON NEW MACHINERY FOR THE IMPROVED PACKAGING

PRICE

bull THE RS 5 PRICE POINT ACCOUNTS FOR MORE THAN HALF OF ALL CHOCOLATE SALES

bull TODAY CADBURY HAS FOUR PRODUCTS AT THIS PRICE POINT CDM PERK 5 STAR AND GEMS mdash AND THE FIVE-RUPEE CDM BAR IS ITS SINGLE LARGEST-SELLING SKU

bull ldquoTHIS IS A POTENT PRICE POINT IN INDIA BECAUSE THE AVERAGE PURCHASING POWER IS ABYSMALLY LOWrdquo IS WHAT INDUSTRY ANALYST HAVE TO SAY

VOLUME LED GROWTH STRATEGY

bull CADBURY HAS FOLLOWED A WELL-PLANNED STRATEGY OF FUELLING VOLUME GROWTH BY INTRODUCING SMALLER UNIT PACKS AT LOWER PRICE POINTS SIMULTANEOUSLY THE COMPANY SEEMS TO HAVE ASTUTELY JUGGLED WITH THE LARGER PACK SIZES AND RAISED PRICES TO A DEGREE HIGHER THAN WHAT APPEARS AT FACE

HIRES AT KEARNEY TO CURB COSTS

bull CADBURY INDIA APPOINTED MANAGEMENT CONSULTANCY FIRM AT KEARNEY TO DRAW UP A STRATEGY TO CONTROL COSTS IN SEVERAL AREAS INCLUDING SOURCING OF RAW MATERIALS AND PACKAGING

bull THE CONSULTANCY FIRM WILL ALSO LOOK AT THE SOURCING OF DIRECT AND INDIRECT MATERIALS LIKE RENEGOTIATING WITH SUPPLIERS FOR LONGER TERM CONTRACTS AND VENDOR MANAGEMENT OTHER COSTS (INDIRECT EXPENSES) LIKE TRAVEL COSTS AND HOTELS WERE ALSO BEING STUDIED

EARNINGS SENSITIVITY FACTORS

bull COCOA BEAN PRICES DOMESTIC AS WELL AS INTERNATIONAL PRICES OF KEY RAW MATERIAL - COCOA HAVE SIGNIFICANT IMPACT ON MARGINS

bull EXCISE DUTIES CHANGES IN EXCISE LEVIED ON MALT AND CHOCOLATE INFLUENCES END PRODUCT PRICES AND THEREBY VOLUME GROWTH AS WELL AS MARGINS

bull CHANGES IN CUSTOM DUTIES AND FOREIGN EXCHANGE FLUCTUATION AS 20 OF RAW MATERIAL IS IMPORTED CHANGES IN CUSTOM DUTIES amp FOREIGN EXCHANGE FLUCTUATIONS HAVE SIGNIFICANT IMPACT ON THE FINAL COST OF THE PRODUCT

bull COMPETITION FROM MNCS LIKE NESTLE AS WELL AS IMPORTED BRANDS INCREASING COMPETITION PUTS PRESSURE ON ADVERTISEMENT BUDGET AND MARGINS HOWEVER ON THE POSITIVE SIDE IT HELPS IN EXPANDING THE MARKET

PLACE

bull PLANT LOCATIONSbull 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 MUMBAITHESE FACTORIES CHURN OUT CLOSE TO 8000 TONNES OF CHOCOLATE ANNUALLY

DISTRIBUTIONbull CHOCOLATE NEEDS TO BE DISTRIBUTED DIRECTLY UNLIKE

OTHER FMCG PRODUCTS LIKE SOAPS ANDbull DETERGENTS WHICH CAN BE SOLD THROUGH A

WHOLESALE NETWORK 90 OF CHOCOLATE PRODUCTS ARE SOLD

bull DIRECTLY TO RETAILERS bull CADBURYS DISTRIBUTION NETWORK USED TO

ENCOMPASSES 2100 DISTRIBUTORS AND 450000 RETAILERS bull TO AVOID CANNIBALIZATION OF ITS HIGHER PRICED

PRODUCTS FROM LOWER PRICED ONES CADBURY ISbull SETTING UP TWO SEPARATE DISTRIBUTION CHANNELS ndash

ONE FOR CORE BUSINESS amp OTHER FOR MASS MARKETS

NATURE OF RETAIL OUTLET

bull CHOCOLATES ARE PRIMARILY SOLD THROUGH KIRANA STORES GIFT STORES MEDICAL STORES CANTEENS

bull PAN-BIDI STORES BAKERIES SWEET SHOPS ETC THIS IS TRUE FOR CHOCOLATES ALSO THE SPACE ALLOCATED FOR

bull THE CHOCOLATES WAS LESS WHEN COMPARED TO THE TOTAL AREA OF THE SHOP OF THE SPACE ALLOCATED FOR

bull CHOCOLATES CADBURY BRANDS OCCUPIED MORE THAN NESTLE BRANDS

PROMOTIONbull ADVERTISEMENTSbull THE ADVERTISEMENT AIMED AT CONVEYING THE IDEA THAT NO

SPECIFIC OCCASION IS REQUIRED FOR CONSUMING CDM

bull CELEBRITIES ENDORSEMENTS

bull CADBURY ROPED IN PREITY ZINTA FOR ITS PERK BRAND PREITY ZINTArsquoS ANGELIC DIMPLES LAID THE

bull FOUNDATION FOR WHAT WOULD BECOME THE INDIAN TEENAGERrsquoS FAVORITE SNACK AFTER THIS CAMPAIGN

bull PERKrsquoS SALE SURGED

bull THE BIG lsquoBrsquo FACTORbull THE BIG FACTOR THAT HAS PUSHED UP CDM SALES IS THE

AMITABH BACHCHAN CAMPAIGN CADBURY APPOINTED AMITABH BACHCHAN AS ITS BRAND AMBASSADOR

CHOCOLATE ADS SHIFT FOCUS FROM KIDS TO YOUTH

bull INDIAN CHOCOLATE MARKET IS ALMOST TOTALLY DEPENDED ON PURCHASES OF KIDS

bull WHILE CADBURY IS TRYING TO SELL INDULGENCE TO ADULTS KIT KAT IS SELLING RITUALISTIC BREAK TO

bull TEENAGERS YOUNG ADULTS THIS IS REFLECTED IN THE CHANGING ADVERTISING PATTERNS ACROSS DIFFERENT

bull CHANNELS

CONCLUSION WHEN PRICED AT EVEN RS 2500KG WHILE THERE ARE PLACES IN

INDIA WHERE PEOPLE HAVE NEVER EVEN TASTED CHOCOLATES ONCEUNDERSTANDING THE CONSUMER DEMANDS AND MAINTAINING THE QUALITY WILL BE ESSENTIALCOMPANIES WILL HAVE TO KEEP THEMSELVES ABREAST WITH THE DEVELOPMENTS IN OTHER PARTS OF THE WORLDPRICING IS THE KEY FOR COMPANIES TO MAKE THEIR PRODUCT REACH CONSUMERSrsquo POCKETS RIGHTPRICING WILL MAKE OR BREAK THE PRODUCT SUCCESS ECONOMICAL DISTRIBUTION OF THE PRODUCTS WILLALSO BE EQUALLY IMPORTANTTHE COMPANIESrsquo STRATEGIES SHOULD FOCUS ON DRIVING SALES THROUGH A RIGHT PRODUCT MIXEFFICIENT MATERIALS PROCUREMENT REDUCED WASTAGES INCREASED FACTORY EFFICIENCIES AND IMPROVED SUPPLY CHAIN MANAGEMENTTHERErsquoS AN IMMENSE SCOPE FOR GROWTH OF CHOCOLATE INDUSTRY IN INDIA - GEOGRAPHICALLY AS WELLAS IN THE PRODUCT OFFERING

BIBLIOGRAPHY

bull WWWCADBURYCOUKbull WWWCHOCOLATEREVIEWCOUKbull WWW CADBURYS CHWEPPESCOMbull WWWWIKIPEDIAORGbull WWWCADBURYCOMbull WWWOPPAPERSCOM REFERENCES-bull PHILIP KOTLER

  • BY RAGHAVENDRA MISHRA
  • INTRODUCTION
  • HISTORY
  • MARKETING OBJECTIVES
  • TARGET MARKET
  • MARKET SEGMENTATION
  • GEOGRAPHIC SEGMENTATION
  • DEMOGRAPHIC SEGMENTATION
  • MARKETING MIX
  • PRODUCT
  • PRODUCT INNOVATIONS
  • PACKAGING
  • PRICE
  • VOLUME LED GROWTH STRATEGY
  • HIRES AT KEARNEY TO CURB COSTS
  • EARNINGS SENSITIVITY FACTORS
  • PLACE
  • DISTRIBUTION
  • NATURE OF RETAIL OUTLET
  • PROMOTION
  • CHOCOLATE ADS SHIFT FOCUS FROM KIDS TO YOUTH
  • CONCLUSION
  • BIBLIOGRAPHY
Page 12: Cadbury Marketing Mix(focuses on cadbury india ltd)

PACKAGINGbull

THE PACKAGING WAS CHANGED TO INCLUDE A SEALED PLASTIC WRAPPER INSIDE THE OUTSIDE FOIL CADBURYrsquoS LAUNCHED A NEW PURITY-SEALED PACKAGING FOR ITS FLAGSHIP PRODUCT CADBURY DAIRY MILK OVER THE NEXT FEW WEEKS CADBURY WILL WORK TOWARDS INTRODUCING EITHER A HEATSEALED OR A FLOW-PACK PACKAGING THAT OFFERS A HIGH LEVEL OF RESISTANCE TO INFESTATION FROM

bull IMPROPER STORAGE CADBURY INVESTED NEARLY RS 25 CRORE (RS 250 MILLION) THIS YEAR ON NEW MACHINERY FOR THE IMPROVED PACKAGING

PRICE

bull THE RS 5 PRICE POINT ACCOUNTS FOR MORE THAN HALF OF ALL CHOCOLATE SALES

bull TODAY CADBURY HAS FOUR PRODUCTS AT THIS PRICE POINT CDM PERK 5 STAR AND GEMS mdash AND THE FIVE-RUPEE CDM BAR IS ITS SINGLE LARGEST-SELLING SKU

bull ldquoTHIS IS A POTENT PRICE POINT IN INDIA BECAUSE THE AVERAGE PURCHASING POWER IS ABYSMALLY LOWrdquo IS WHAT INDUSTRY ANALYST HAVE TO SAY

VOLUME LED GROWTH STRATEGY

bull CADBURY HAS FOLLOWED A WELL-PLANNED STRATEGY OF FUELLING VOLUME GROWTH BY INTRODUCING SMALLER UNIT PACKS AT LOWER PRICE POINTS SIMULTANEOUSLY THE COMPANY SEEMS TO HAVE ASTUTELY JUGGLED WITH THE LARGER PACK SIZES AND RAISED PRICES TO A DEGREE HIGHER THAN WHAT APPEARS AT FACE

HIRES AT KEARNEY TO CURB COSTS

bull CADBURY INDIA APPOINTED MANAGEMENT CONSULTANCY FIRM AT KEARNEY TO DRAW UP A STRATEGY TO CONTROL COSTS IN SEVERAL AREAS INCLUDING SOURCING OF RAW MATERIALS AND PACKAGING

bull THE CONSULTANCY FIRM WILL ALSO LOOK AT THE SOURCING OF DIRECT AND INDIRECT MATERIALS LIKE RENEGOTIATING WITH SUPPLIERS FOR LONGER TERM CONTRACTS AND VENDOR MANAGEMENT OTHER COSTS (INDIRECT EXPENSES) LIKE TRAVEL COSTS AND HOTELS WERE ALSO BEING STUDIED

EARNINGS SENSITIVITY FACTORS

bull COCOA BEAN PRICES DOMESTIC AS WELL AS INTERNATIONAL PRICES OF KEY RAW MATERIAL - COCOA HAVE SIGNIFICANT IMPACT ON MARGINS

bull EXCISE DUTIES CHANGES IN EXCISE LEVIED ON MALT AND CHOCOLATE INFLUENCES END PRODUCT PRICES AND THEREBY VOLUME GROWTH AS WELL AS MARGINS

bull CHANGES IN CUSTOM DUTIES AND FOREIGN EXCHANGE FLUCTUATION AS 20 OF RAW MATERIAL IS IMPORTED CHANGES IN CUSTOM DUTIES amp FOREIGN EXCHANGE FLUCTUATIONS HAVE SIGNIFICANT IMPACT ON THE FINAL COST OF THE PRODUCT

bull COMPETITION FROM MNCS LIKE NESTLE AS WELL AS IMPORTED BRANDS INCREASING COMPETITION PUTS PRESSURE ON ADVERTISEMENT BUDGET AND MARGINS HOWEVER ON THE POSITIVE SIDE IT HELPS IN EXPANDING THE MARKET

PLACE

bull PLANT LOCATIONSbull 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 MUMBAITHESE FACTORIES CHURN OUT CLOSE TO 8000 TONNES OF CHOCOLATE ANNUALLY

DISTRIBUTIONbull CHOCOLATE NEEDS TO BE DISTRIBUTED DIRECTLY UNLIKE

OTHER FMCG PRODUCTS LIKE SOAPS ANDbull DETERGENTS WHICH CAN BE SOLD THROUGH A

WHOLESALE NETWORK 90 OF CHOCOLATE PRODUCTS ARE SOLD

bull DIRECTLY TO RETAILERS bull CADBURYS DISTRIBUTION NETWORK USED TO

ENCOMPASSES 2100 DISTRIBUTORS AND 450000 RETAILERS bull TO AVOID CANNIBALIZATION OF ITS HIGHER PRICED

PRODUCTS FROM LOWER PRICED ONES CADBURY ISbull SETTING UP TWO SEPARATE DISTRIBUTION CHANNELS ndash

ONE FOR CORE BUSINESS amp OTHER FOR MASS MARKETS

NATURE OF RETAIL OUTLET

bull CHOCOLATES ARE PRIMARILY SOLD THROUGH KIRANA STORES GIFT STORES MEDICAL STORES CANTEENS

bull PAN-BIDI STORES BAKERIES SWEET SHOPS ETC THIS IS TRUE FOR CHOCOLATES ALSO THE SPACE ALLOCATED FOR

bull THE CHOCOLATES WAS LESS WHEN COMPARED TO THE TOTAL AREA OF THE SHOP OF THE SPACE ALLOCATED FOR

bull CHOCOLATES CADBURY BRANDS OCCUPIED MORE THAN NESTLE BRANDS

PROMOTIONbull ADVERTISEMENTSbull THE ADVERTISEMENT AIMED AT CONVEYING THE IDEA THAT NO

SPECIFIC OCCASION IS REQUIRED FOR CONSUMING CDM

bull CELEBRITIES ENDORSEMENTS

bull CADBURY ROPED IN PREITY ZINTA FOR ITS PERK BRAND PREITY ZINTArsquoS ANGELIC DIMPLES LAID THE

bull FOUNDATION FOR WHAT WOULD BECOME THE INDIAN TEENAGERrsquoS FAVORITE SNACK AFTER THIS CAMPAIGN

bull PERKrsquoS SALE SURGED

bull THE BIG lsquoBrsquo FACTORbull THE BIG FACTOR THAT HAS PUSHED UP CDM SALES IS THE

AMITABH BACHCHAN CAMPAIGN CADBURY APPOINTED AMITABH BACHCHAN AS ITS BRAND AMBASSADOR

CHOCOLATE ADS SHIFT FOCUS FROM KIDS TO YOUTH

bull INDIAN CHOCOLATE MARKET IS ALMOST TOTALLY DEPENDED ON PURCHASES OF KIDS

bull WHILE CADBURY IS TRYING TO SELL INDULGENCE TO ADULTS KIT KAT IS SELLING RITUALISTIC BREAK TO

bull TEENAGERS YOUNG ADULTS THIS IS REFLECTED IN THE CHANGING ADVERTISING PATTERNS ACROSS DIFFERENT

bull CHANNELS

CONCLUSION WHEN PRICED AT EVEN RS 2500KG WHILE THERE ARE PLACES IN

INDIA WHERE PEOPLE HAVE NEVER EVEN TASTED CHOCOLATES ONCEUNDERSTANDING THE CONSUMER DEMANDS AND MAINTAINING THE QUALITY WILL BE ESSENTIALCOMPANIES WILL HAVE TO KEEP THEMSELVES ABREAST WITH THE DEVELOPMENTS IN OTHER PARTS OF THE WORLDPRICING IS THE KEY FOR COMPANIES TO MAKE THEIR PRODUCT REACH CONSUMERSrsquo POCKETS RIGHTPRICING WILL MAKE OR BREAK THE PRODUCT SUCCESS ECONOMICAL DISTRIBUTION OF THE PRODUCTS WILLALSO BE EQUALLY IMPORTANTTHE COMPANIESrsquo STRATEGIES SHOULD FOCUS ON DRIVING SALES THROUGH A RIGHT PRODUCT MIXEFFICIENT MATERIALS PROCUREMENT REDUCED WASTAGES INCREASED FACTORY EFFICIENCIES AND IMPROVED SUPPLY CHAIN MANAGEMENTTHERErsquoS AN IMMENSE SCOPE FOR GROWTH OF CHOCOLATE INDUSTRY IN INDIA - GEOGRAPHICALLY AS WELLAS IN THE PRODUCT OFFERING

BIBLIOGRAPHY

bull WWWCADBURYCOUKbull WWWCHOCOLATEREVIEWCOUKbull WWW CADBURYS CHWEPPESCOMbull WWWWIKIPEDIAORGbull WWWCADBURYCOMbull WWWOPPAPERSCOM REFERENCES-bull PHILIP KOTLER

  • BY RAGHAVENDRA MISHRA
  • INTRODUCTION
  • HISTORY
  • MARKETING OBJECTIVES
  • TARGET MARKET
  • MARKET SEGMENTATION
  • GEOGRAPHIC SEGMENTATION
  • DEMOGRAPHIC SEGMENTATION
  • MARKETING MIX
  • PRODUCT
  • PRODUCT INNOVATIONS
  • PACKAGING
  • PRICE
  • VOLUME LED GROWTH STRATEGY
  • HIRES AT KEARNEY TO CURB COSTS
  • EARNINGS SENSITIVITY FACTORS
  • PLACE
  • DISTRIBUTION
  • NATURE OF RETAIL OUTLET
  • PROMOTION
  • CHOCOLATE ADS SHIFT FOCUS FROM KIDS TO YOUTH
  • CONCLUSION
  • BIBLIOGRAPHY
Page 13: Cadbury Marketing Mix(focuses on cadbury india ltd)

PRICE

bull THE RS 5 PRICE POINT ACCOUNTS FOR MORE THAN HALF OF ALL CHOCOLATE SALES

bull TODAY CADBURY HAS FOUR PRODUCTS AT THIS PRICE POINT CDM PERK 5 STAR AND GEMS mdash AND THE FIVE-RUPEE CDM BAR IS ITS SINGLE LARGEST-SELLING SKU

bull ldquoTHIS IS A POTENT PRICE POINT IN INDIA BECAUSE THE AVERAGE PURCHASING POWER IS ABYSMALLY LOWrdquo IS WHAT INDUSTRY ANALYST HAVE TO SAY

VOLUME LED GROWTH STRATEGY

bull CADBURY HAS FOLLOWED A WELL-PLANNED STRATEGY OF FUELLING VOLUME GROWTH BY INTRODUCING SMALLER UNIT PACKS AT LOWER PRICE POINTS SIMULTANEOUSLY THE COMPANY SEEMS TO HAVE ASTUTELY JUGGLED WITH THE LARGER PACK SIZES AND RAISED PRICES TO A DEGREE HIGHER THAN WHAT APPEARS AT FACE

HIRES AT KEARNEY TO CURB COSTS

bull CADBURY INDIA APPOINTED MANAGEMENT CONSULTANCY FIRM AT KEARNEY TO DRAW UP A STRATEGY TO CONTROL COSTS IN SEVERAL AREAS INCLUDING SOURCING OF RAW MATERIALS AND PACKAGING

bull THE CONSULTANCY FIRM WILL ALSO LOOK AT THE SOURCING OF DIRECT AND INDIRECT MATERIALS LIKE RENEGOTIATING WITH SUPPLIERS FOR LONGER TERM CONTRACTS AND VENDOR MANAGEMENT OTHER COSTS (INDIRECT EXPENSES) LIKE TRAVEL COSTS AND HOTELS WERE ALSO BEING STUDIED

EARNINGS SENSITIVITY FACTORS

bull COCOA BEAN PRICES DOMESTIC AS WELL AS INTERNATIONAL PRICES OF KEY RAW MATERIAL - COCOA HAVE SIGNIFICANT IMPACT ON MARGINS

bull EXCISE DUTIES CHANGES IN EXCISE LEVIED ON MALT AND CHOCOLATE INFLUENCES END PRODUCT PRICES AND THEREBY VOLUME GROWTH AS WELL AS MARGINS

bull CHANGES IN CUSTOM DUTIES AND FOREIGN EXCHANGE FLUCTUATION AS 20 OF RAW MATERIAL IS IMPORTED CHANGES IN CUSTOM DUTIES amp FOREIGN EXCHANGE FLUCTUATIONS HAVE SIGNIFICANT IMPACT ON THE FINAL COST OF THE PRODUCT

bull COMPETITION FROM MNCS LIKE NESTLE AS WELL AS IMPORTED BRANDS INCREASING COMPETITION PUTS PRESSURE ON ADVERTISEMENT BUDGET AND MARGINS HOWEVER ON THE POSITIVE SIDE IT HELPS IN EXPANDING THE MARKET

PLACE

bull PLANT LOCATIONSbull 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 MUMBAITHESE FACTORIES CHURN OUT CLOSE TO 8000 TONNES OF CHOCOLATE ANNUALLY

DISTRIBUTIONbull CHOCOLATE NEEDS TO BE DISTRIBUTED DIRECTLY UNLIKE

OTHER FMCG PRODUCTS LIKE SOAPS ANDbull DETERGENTS WHICH CAN BE SOLD THROUGH A

WHOLESALE NETWORK 90 OF CHOCOLATE PRODUCTS ARE SOLD

bull DIRECTLY TO RETAILERS bull CADBURYS DISTRIBUTION NETWORK USED TO

ENCOMPASSES 2100 DISTRIBUTORS AND 450000 RETAILERS bull TO AVOID CANNIBALIZATION OF ITS HIGHER PRICED

PRODUCTS FROM LOWER PRICED ONES CADBURY ISbull SETTING UP TWO SEPARATE DISTRIBUTION CHANNELS ndash

ONE FOR CORE BUSINESS amp OTHER FOR MASS MARKETS

NATURE OF RETAIL OUTLET

bull CHOCOLATES ARE PRIMARILY SOLD THROUGH KIRANA STORES GIFT STORES MEDICAL STORES CANTEENS

bull PAN-BIDI STORES BAKERIES SWEET SHOPS ETC THIS IS TRUE FOR CHOCOLATES ALSO THE SPACE ALLOCATED FOR

bull THE CHOCOLATES WAS LESS WHEN COMPARED TO THE TOTAL AREA OF THE SHOP OF THE SPACE ALLOCATED FOR

bull CHOCOLATES CADBURY BRANDS OCCUPIED MORE THAN NESTLE BRANDS

PROMOTIONbull ADVERTISEMENTSbull THE ADVERTISEMENT AIMED AT CONVEYING THE IDEA THAT NO

SPECIFIC OCCASION IS REQUIRED FOR CONSUMING CDM

bull CELEBRITIES ENDORSEMENTS

bull CADBURY ROPED IN PREITY ZINTA FOR ITS PERK BRAND PREITY ZINTArsquoS ANGELIC DIMPLES LAID THE

bull FOUNDATION FOR WHAT WOULD BECOME THE INDIAN TEENAGERrsquoS FAVORITE SNACK AFTER THIS CAMPAIGN

bull PERKrsquoS SALE SURGED

bull THE BIG lsquoBrsquo FACTORbull THE BIG FACTOR THAT HAS PUSHED UP CDM SALES IS THE

AMITABH BACHCHAN CAMPAIGN CADBURY APPOINTED AMITABH BACHCHAN AS ITS BRAND AMBASSADOR

CHOCOLATE ADS SHIFT FOCUS FROM KIDS TO YOUTH

bull INDIAN CHOCOLATE MARKET IS ALMOST TOTALLY DEPENDED ON PURCHASES OF KIDS

bull WHILE CADBURY IS TRYING TO SELL INDULGENCE TO ADULTS KIT KAT IS SELLING RITUALISTIC BREAK TO

bull TEENAGERS YOUNG ADULTS THIS IS REFLECTED IN THE CHANGING ADVERTISING PATTERNS ACROSS DIFFERENT

bull CHANNELS

CONCLUSION WHEN PRICED AT EVEN RS 2500KG WHILE THERE ARE PLACES IN

INDIA WHERE PEOPLE HAVE NEVER EVEN TASTED CHOCOLATES ONCEUNDERSTANDING THE CONSUMER DEMANDS AND MAINTAINING THE QUALITY WILL BE ESSENTIALCOMPANIES WILL HAVE TO KEEP THEMSELVES ABREAST WITH THE DEVELOPMENTS IN OTHER PARTS OF THE WORLDPRICING IS THE KEY FOR COMPANIES TO MAKE THEIR PRODUCT REACH CONSUMERSrsquo POCKETS RIGHTPRICING WILL MAKE OR BREAK THE PRODUCT SUCCESS ECONOMICAL DISTRIBUTION OF THE PRODUCTS WILLALSO BE EQUALLY IMPORTANTTHE COMPANIESrsquo STRATEGIES SHOULD FOCUS ON DRIVING SALES THROUGH A RIGHT PRODUCT MIXEFFICIENT MATERIALS PROCUREMENT REDUCED WASTAGES INCREASED FACTORY EFFICIENCIES AND IMPROVED SUPPLY CHAIN MANAGEMENTTHERErsquoS AN IMMENSE SCOPE FOR GROWTH OF CHOCOLATE INDUSTRY IN INDIA - GEOGRAPHICALLY AS WELLAS IN THE PRODUCT OFFERING

BIBLIOGRAPHY

bull WWWCADBURYCOUKbull WWWCHOCOLATEREVIEWCOUKbull WWW CADBURYS CHWEPPESCOMbull WWWWIKIPEDIAORGbull WWWCADBURYCOMbull WWWOPPAPERSCOM REFERENCES-bull PHILIP KOTLER

  • BY RAGHAVENDRA MISHRA
  • INTRODUCTION
  • HISTORY
  • MARKETING OBJECTIVES
  • TARGET MARKET
  • MARKET SEGMENTATION
  • GEOGRAPHIC SEGMENTATION
  • DEMOGRAPHIC SEGMENTATION
  • MARKETING MIX
  • PRODUCT
  • PRODUCT INNOVATIONS
  • PACKAGING
  • PRICE
  • VOLUME LED GROWTH STRATEGY
  • HIRES AT KEARNEY TO CURB COSTS
  • EARNINGS SENSITIVITY FACTORS
  • PLACE
  • DISTRIBUTION
  • NATURE OF RETAIL OUTLET
  • PROMOTION
  • CHOCOLATE ADS SHIFT FOCUS FROM KIDS TO YOUTH
  • CONCLUSION
  • BIBLIOGRAPHY
Page 14: Cadbury Marketing Mix(focuses on cadbury india ltd)

VOLUME LED GROWTH STRATEGY

bull CADBURY HAS FOLLOWED A WELL-PLANNED STRATEGY OF FUELLING VOLUME GROWTH BY INTRODUCING SMALLER UNIT PACKS AT LOWER PRICE POINTS SIMULTANEOUSLY THE COMPANY SEEMS TO HAVE ASTUTELY JUGGLED WITH THE LARGER PACK SIZES AND RAISED PRICES TO A DEGREE HIGHER THAN WHAT APPEARS AT FACE

HIRES AT KEARNEY TO CURB COSTS

bull CADBURY INDIA APPOINTED MANAGEMENT CONSULTANCY FIRM AT KEARNEY TO DRAW UP A STRATEGY TO CONTROL COSTS IN SEVERAL AREAS INCLUDING SOURCING OF RAW MATERIALS AND PACKAGING

bull THE CONSULTANCY FIRM WILL ALSO LOOK AT THE SOURCING OF DIRECT AND INDIRECT MATERIALS LIKE RENEGOTIATING WITH SUPPLIERS FOR LONGER TERM CONTRACTS AND VENDOR MANAGEMENT OTHER COSTS (INDIRECT EXPENSES) LIKE TRAVEL COSTS AND HOTELS WERE ALSO BEING STUDIED

EARNINGS SENSITIVITY FACTORS

bull COCOA BEAN PRICES DOMESTIC AS WELL AS INTERNATIONAL PRICES OF KEY RAW MATERIAL - COCOA HAVE SIGNIFICANT IMPACT ON MARGINS

bull EXCISE DUTIES CHANGES IN EXCISE LEVIED ON MALT AND CHOCOLATE INFLUENCES END PRODUCT PRICES AND THEREBY VOLUME GROWTH AS WELL AS MARGINS

bull CHANGES IN CUSTOM DUTIES AND FOREIGN EXCHANGE FLUCTUATION AS 20 OF RAW MATERIAL IS IMPORTED CHANGES IN CUSTOM DUTIES amp FOREIGN EXCHANGE FLUCTUATIONS HAVE SIGNIFICANT IMPACT ON THE FINAL COST OF THE PRODUCT

bull COMPETITION FROM MNCS LIKE NESTLE AS WELL AS IMPORTED BRANDS INCREASING COMPETITION PUTS PRESSURE ON ADVERTISEMENT BUDGET AND MARGINS HOWEVER ON THE POSITIVE SIDE IT HELPS IN EXPANDING THE MARKET

PLACE

bull PLANT LOCATIONSbull 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 MUMBAITHESE FACTORIES CHURN OUT CLOSE TO 8000 TONNES OF CHOCOLATE ANNUALLY

DISTRIBUTIONbull CHOCOLATE NEEDS TO BE DISTRIBUTED DIRECTLY UNLIKE

OTHER FMCG PRODUCTS LIKE SOAPS ANDbull DETERGENTS WHICH CAN BE SOLD THROUGH A

WHOLESALE NETWORK 90 OF CHOCOLATE PRODUCTS ARE SOLD

bull DIRECTLY TO RETAILERS bull CADBURYS DISTRIBUTION NETWORK USED TO

ENCOMPASSES 2100 DISTRIBUTORS AND 450000 RETAILERS bull TO AVOID CANNIBALIZATION OF ITS HIGHER PRICED

PRODUCTS FROM LOWER PRICED ONES CADBURY ISbull SETTING UP TWO SEPARATE DISTRIBUTION CHANNELS ndash

ONE FOR CORE BUSINESS amp OTHER FOR MASS MARKETS

NATURE OF RETAIL OUTLET

bull CHOCOLATES ARE PRIMARILY SOLD THROUGH KIRANA STORES GIFT STORES MEDICAL STORES CANTEENS

bull PAN-BIDI STORES BAKERIES SWEET SHOPS ETC THIS IS TRUE FOR CHOCOLATES ALSO THE SPACE ALLOCATED FOR

bull THE CHOCOLATES WAS LESS WHEN COMPARED TO THE TOTAL AREA OF THE SHOP OF THE SPACE ALLOCATED FOR

bull CHOCOLATES CADBURY BRANDS OCCUPIED MORE THAN NESTLE BRANDS

PROMOTIONbull ADVERTISEMENTSbull THE ADVERTISEMENT AIMED AT CONVEYING THE IDEA THAT NO

SPECIFIC OCCASION IS REQUIRED FOR CONSUMING CDM

bull CELEBRITIES ENDORSEMENTS

bull CADBURY ROPED IN PREITY ZINTA FOR ITS PERK BRAND PREITY ZINTArsquoS ANGELIC DIMPLES LAID THE

bull FOUNDATION FOR WHAT WOULD BECOME THE INDIAN TEENAGERrsquoS FAVORITE SNACK AFTER THIS CAMPAIGN

bull PERKrsquoS SALE SURGED

bull THE BIG lsquoBrsquo FACTORbull THE BIG FACTOR THAT HAS PUSHED UP CDM SALES IS THE

AMITABH BACHCHAN CAMPAIGN CADBURY APPOINTED AMITABH BACHCHAN AS ITS BRAND AMBASSADOR

CHOCOLATE ADS SHIFT FOCUS FROM KIDS TO YOUTH

bull INDIAN CHOCOLATE MARKET IS ALMOST TOTALLY DEPENDED ON PURCHASES OF KIDS

bull WHILE CADBURY IS TRYING TO SELL INDULGENCE TO ADULTS KIT KAT IS SELLING RITUALISTIC BREAK TO

bull TEENAGERS YOUNG ADULTS THIS IS REFLECTED IN THE CHANGING ADVERTISING PATTERNS ACROSS DIFFERENT

bull CHANNELS

CONCLUSION WHEN PRICED AT EVEN RS 2500KG WHILE THERE ARE PLACES IN

INDIA WHERE PEOPLE HAVE NEVER EVEN TASTED CHOCOLATES ONCEUNDERSTANDING THE CONSUMER DEMANDS AND MAINTAINING THE QUALITY WILL BE ESSENTIALCOMPANIES WILL HAVE TO KEEP THEMSELVES ABREAST WITH THE DEVELOPMENTS IN OTHER PARTS OF THE WORLDPRICING IS THE KEY FOR COMPANIES TO MAKE THEIR PRODUCT REACH CONSUMERSrsquo POCKETS RIGHTPRICING WILL MAKE OR BREAK THE PRODUCT SUCCESS ECONOMICAL DISTRIBUTION OF THE PRODUCTS WILLALSO BE EQUALLY IMPORTANTTHE COMPANIESrsquo STRATEGIES SHOULD FOCUS ON DRIVING SALES THROUGH A RIGHT PRODUCT MIXEFFICIENT MATERIALS PROCUREMENT REDUCED WASTAGES INCREASED FACTORY EFFICIENCIES AND IMPROVED SUPPLY CHAIN MANAGEMENTTHERErsquoS AN IMMENSE SCOPE FOR GROWTH OF CHOCOLATE INDUSTRY IN INDIA - GEOGRAPHICALLY AS WELLAS IN THE PRODUCT OFFERING

BIBLIOGRAPHY

bull WWWCADBURYCOUKbull WWWCHOCOLATEREVIEWCOUKbull WWW CADBURYS CHWEPPESCOMbull WWWWIKIPEDIAORGbull WWWCADBURYCOMbull WWWOPPAPERSCOM REFERENCES-bull PHILIP KOTLER

  • BY RAGHAVENDRA MISHRA
  • INTRODUCTION
  • HISTORY
  • MARKETING OBJECTIVES
  • TARGET MARKET
  • MARKET SEGMENTATION
  • GEOGRAPHIC SEGMENTATION
  • DEMOGRAPHIC SEGMENTATION
  • MARKETING MIX
  • PRODUCT
  • PRODUCT INNOVATIONS
  • PACKAGING
  • PRICE
  • VOLUME LED GROWTH STRATEGY
  • HIRES AT KEARNEY TO CURB COSTS
  • EARNINGS SENSITIVITY FACTORS
  • PLACE
  • DISTRIBUTION
  • NATURE OF RETAIL OUTLET
  • PROMOTION
  • CHOCOLATE ADS SHIFT FOCUS FROM KIDS TO YOUTH
  • CONCLUSION
  • BIBLIOGRAPHY
Page 15: Cadbury Marketing Mix(focuses on cadbury india ltd)

HIRES AT KEARNEY TO CURB COSTS

bull CADBURY INDIA APPOINTED MANAGEMENT CONSULTANCY FIRM AT KEARNEY TO DRAW UP A STRATEGY TO CONTROL COSTS IN SEVERAL AREAS INCLUDING SOURCING OF RAW MATERIALS AND PACKAGING

bull THE CONSULTANCY FIRM WILL ALSO LOOK AT THE SOURCING OF DIRECT AND INDIRECT MATERIALS LIKE RENEGOTIATING WITH SUPPLIERS FOR LONGER TERM CONTRACTS AND VENDOR MANAGEMENT OTHER COSTS (INDIRECT EXPENSES) LIKE TRAVEL COSTS AND HOTELS WERE ALSO BEING STUDIED

EARNINGS SENSITIVITY FACTORS

bull COCOA BEAN PRICES DOMESTIC AS WELL AS INTERNATIONAL PRICES OF KEY RAW MATERIAL - COCOA HAVE SIGNIFICANT IMPACT ON MARGINS

bull EXCISE DUTIES CHANGES IN EXCISE LEVIED ON MALT AND CHOCOLATE INFLUENCES END PRODUCT PRICES AND THEREBY VOLUME GROWTH AS WELL AS MARGINS

bull CHANGES IN CUSTOM DUTIES AND FOREIGN EXCHANGE FLUCTUATION AS 20 OF RAW MATERIAL IS IMPORTED CHANGES IN CUSTOM DUTIES amp FOREIGN EXCHANGE FLUCTUATIONS HAVE SIGNIFICANT IMPACT ON THE FINAL COST OF THE PRODUCT

bull COMPETITION FROM MNCS LIKE NESTLE AS WELL AS IMPORTED BRANDS INCREASING COMPETITION PUTS PRESSURE ON ADVERTISEMENT BUDGET AND MARGINS HOWEVER ON THE POSITIVE SIDE IT HELPS IN EXPANDING THE MARKET

PLACE

bull PLANT LOCATIONSbull 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 MUMBAITHESE FACTORIES CHURN OUT CLOSE TO 8000 TONNES OF CHOCOLATE ANNUALLY

DISTRIBUTIONbull CHOCOLATE NEEDS TO BE DISTRIBUTED DIRECTLY UNLIKE

OTHER FMCG PRODUCTS LIKE SOAPS ANDbull DETERGENTS WHICH CAN BE SOLD THROUGH A

WHOLESALE NETWORK 90 OF CHOCOLATE PRODUCTS ARE SOLD

bull DIRECTLY TO RETAILERS bull CADBURYS DISTRIBUTION NETWORK USED TO

ENCOMPASSES 2100 DISTRIBUTORS AND 450000 RETAILERS bull TO AVOID CANNIBALIZATION OF ITS HIGHER PRICED

PRODUCTS FROM LOWER PRICED ONES CADBURY ISbull SETTING UP TWO SEPARATE DISTRIBUTION CHANNELS ndash

ONE FOR CORE BUSINESS amp OTHER FOR MASS MARKETS

NATURE OF RETAIL OUTLET

bull CHOCOLATES ARE PRIMARILY SOLD THROUGH KIRANA STORES GIFT STORES MEDICAL STORES CANTEENS

bull PAN-BIDI STORES BAKERIES SWEET SHOPS ETC THIS IS TRUE FOR CHOCOLATES ALSO THE SPACE ALLOCATED FOR

bull THE CHOCOLATES WAS LESS WHEN COMPARED TO THE TOTAL AREA OF THE SHOP OF THE SPACE ALLOCATED FOR

bull CHOCOLATES CADBURY BRANDS OCCUPIED MORE THAN NESTLE BRANDS

PROMOTIONbull ADVERTISEMENTSbull THE ADVERTISEMENT AIMED AT CONVEYING THE IDEA THAT NO

SPECIFIC OCCASION IS REQUIRED FOR CONSUMING CDM

bull CELEBRITIES ENDORSEMENTS

bull CADBURY ROPED IN PREITY ZINTA FOR ITS PERK BRAND PREITY ZINTArsquoS ANGELIC DIMPLES LAID THE

bull FOUNDATION FOR WHAT WOULD BECOME THE INDIAN TEENAGERrsquoS FAVORITE SNACK AFTER THIS CAMPAIGN

bull PERKrsquoS SALE SURGED

bull THE BIG lsquoBrsquo FACTORbull THE BIG FACTOR THAT HAS PUSHED UP CDM SALES IS THE

AMITABH BACHCHAN CAMPAIGN CADBURY APPOINTED AMITABH BACHCHAN AS ITS BRAND AMBASSADOR

CHOCOLATE ADS SHIFT FOCUS FROM KIDS TO YOUTH

bull INDIAN CHOCOLATE MARKET IS ALMOST TOTALLY DEPENDED ON PURCHASES OF KIDS

bull WHILE CADBURY IS TRYING TO SELL INDULGENCE TO ADULTS KIT KAT IS SELLING RITUALISTIC BREAK TO

bull TEENAGERS YOUNG ADULTS THIS IS REFLECTED IN THE CHANGING ADVERTISING PATTERNS ACROSS DIFFERENT

bull CHANNELS

CONCLUSION WHEN PRICED AT EVEN RS 2500KG WHILE THERE ARE PLACES IN

INDIA WHERE PEOPLE HAVE NEVER EVEN TASTED CHOCOLATES ONCEUNDERSTANDING THE CONSUMER DEMANDS AND MAINTAINING THE QUALITY WILL BE ESSENTIALCOMPANIES WILL HAVE TO KEEP THEMSELVES ABREAST WITH THE DEVELOPMENTS IN OTHER PARTS OF THE WORLDPRICING IS THE KEY FOR COMPANIES TO MAKE THEIR PRODUCT REACH CONSUMERSrsquo POCKETS RIGHTPRICING WILL MAKE OR BREAK THE PRODUCT SUCCESS ECONOMICAL DISTRIBUTION OF THE PRODUCTS WILLALSO BE EQUALLY IMPORTANTTHE COMPANIESrsquo STRATEGIES SHOULD FOCUS ON DRIVING SALES THROUGH A RIGHT PRODUCT MIXEFFICIENT MATERIALS PROCUREMENT REDUCED WASTAGES INCREASED FACTORY EFFICIENCIES AND IMPROVED SUPPLY CHAIN MANAGEMENTTHERErsquoS AN IMMENSE SCOPE FOR GROWTH OF CHOCOLATE INDUSTRY IN INDIA - GEOGRAPHICALLY AS WELLAS IN THE PRODUCT OFFERING

BIBLIOGRAPHY

bull WWWCADBURYCOUKbull WWWCHOCOLATEREVIEWCOUKbull WWW CADBURYS CHWEPPESCOMbull WWWWIKIPEDIAORGbull WWWCADBURYCOMbull WWWOPPAPERSCOM REFERENCES-bull PHILIP KOTLER

  • BY RAGHAVENDRA MISHRA
  • INTRODUCTION
  • HISTORY
  • MARKETING OBJECTIVES
  • TARGET MARKET
  • MARKET SEGMENTATION
  • GEOGRAPHIC SEGMENTATION
  • DEMOGRAPHIC SEGMENTATION
  • MARKETING MIX
  • PRODUCT
  • PRODUCT INNOVATIONS
  • PACKAGING
  • PRICE
  • VOLUME LED GROWTH STRATEGY
  • HIRES AT KEARNEY TO CURB COSTS
  • EARNINGS SENSITIVITY FACTORS
  • PLACE
  • DISTRIBUTION
  • NATURE OF RETAIL OUTLET
  • PROMOTION
  • CHOCOLATE ADS SHIFT FOCUS FROM KIDS TO YOUTH
  • CONCLUSION
  • BIBLIOGRAPHY
Page 16: Cadbury Marketing Mix(focuses on cadbury india ltd)

EARNINGS SENSITIVITY FACTORS

bull COCOA BEAN PRICES DOMESTIC AS WELL AS INTERNATIONAL PRICES OF KEY RAW MATERIAL - COCOA HAVE SIGNIFICANT IMPACT ON MARGINS

bull EXCISE DUTIES CHANGES IN EXCISE LEVIED ON MALT AND CHOCOLATE INFLUENCES END PRODUCT PRICES AND THEREBY VOLUME GROWTH AS WELL AS MARGINS

bull CHANGES IN CUSTOM DUTIES AND FOREIGN EXCHANGE FLUCTUATION AS 20 OF RAW MATERIAL IS IMPORTED CHANGES IN CUSTOM DUTIES amp FOREIGN EXCHANGE FLUCTUATIONS HAVE SIGNIFICANT IMPACT ON THE FINAL COST OF THE PRODUCT

bull COMPETITION FROM MNCS LIKE NESTLE AS WELL AS IMPORTED BRANDS INCREASING COMPETITION PUTS PRESSURE ON ADVERTISEMENT BUDGET AND MARGINS HOWEVER ON THE POSITIVE SIDE IT HELPS IN EXPANDING THE MARKET

PLACE

bull PLANT LOCATIONSbull 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 MUMBAITHESE FACTORIES CHURN OUT CLOSE TO 8000 TONNES OF CHOCOLATE ANNUALLY

DISTRIBUTIONbull CHOCOLATE NEEDS TO BE DISTRIBUTED DIRECTLY UNLIKE

OTHER FMCG PRODUCTS LIKE SOAPS ANDbull DETERGENTS WHICH CAN BE SOLD THROUGH A

WHOLESALE NETWORK 90 OF CHOCOLATE PRODUCTS ARE SOLD

bull DIRECTLY TO RETAILERS bull CADBURYS DISTRIBUTION NETWORK USED TO

ENCOMPASSES 2100 DISTRIBUTORS AND 450000 RETAILERS bull TO AVOID CANNIBALIZATION OF ITS HIGHER PRICED

PRODUCTS FROM LOWER PRICED ONES CADBURY ISbull SETTING UP TWO SEPARATE DISTRIBUTION CHANNELS ndash

ONE FOR CORE BUSINESS amp OTHER FOR MASS MARKETS

NATURE OF RETAIL OUTLET

bull CHOCOLATES ARE PRIMARILY SOLD THROUGH KIRANA STORES GIFT STORES MEDICAL STORES CANTEENS

bull PAN-BIDI STORES BAKERIES SWEET SHOPS ETC THIS IS TRUE FOR CHOCOLATES ALSO THE SPACE ALLOCATED FOR

bull THE CHOCOLATES WAS LESS WHEN COMPARED TO THE TOTAL AREA OF THE SHOP OF THE SPACE ALLOCATED FOR

bull CHOCOLATES CADBURY BRANDS OCCUPIED MORE THAN NESTLE BRANDS

PROMOTIONbull ADVERTISEMENTSbull THE ADVERTISEMENT AIMED AT CONVEYING THE IDEA THAT NO

SPECIFIC OCCASION IS REQUIRED FOR CONSUMING CDM

bull CELEBRITIES ENDORSEMENTS

bull CADBURY ROPED IN PREITY ZINTA FOR ITS PERK BRAND PREITY ZINTArsquoS ANGELIC DIMPLES LAID THE

bull FOUNDATION FOR WHAT WOULD BECOME THE INDIAN TEENAGERrsquoS FAVORITE SNACK AFTER THIS CAMPAIGN

bull PERKrsquoS SALE SURGED

bull THE BIG lsquoBrsquo FACTORbull THE BIG FACTOR THAT HAS PUSHED UP CDM SALES IS THE

AMITABH BACHCHAN CAMPAIGN CADBURY APPOINTED AMITABH BACHCHAN AS ITS BRAND AMBASSADOR

CHOCOLATE ADS SHIFT FOCUS FROM KIDS TO YOUTH

bull INDIAN CHOCOLATE MARKET IS ALMOST TOTALLY DEPENDED ON PURCHASES OF KIDS

bull WHILE CADBURY IS TRYING TO SELL INDULGENCE TO ADULTS KIT KAT IS SELLING RITUALISTIC BREAK TO

bull TEENAGERS YOUNG ADULTS THIS IS REFLECTED IN THE CHANGING ADVERTISING PATTERNS ACROSS DIFFERENT

bull CHANNELS

CONCLUSION WHEN PRICED AT EVEN RS 2500KG WHILE THERE ARE PLACES IN

INDIA WHERE PEOPLE HAVE NEVER EVEN TASTED CHOCOLATES ONCEUNDERSTANDING THE CONSUMER DEMANDS AND MAINTAINING THE QUALITY WILL BE ESSENTIALCOMPANIES WILL HAVE TO KEEP THEMSELVES ABREAST WITH THE DEVELOPMENTS IN OTHER PARTS OF THE WORLDPRICING IS THE KEY FOR COMPANIES TO MAKE THEIR PRODUCT REACH CONSUMERSrsquo POCKETS RIGHTPRICING WILL MAKE OR BREAK THE PRODUCT SUCCESS ECONOMICAL DISTRIBUTION OF THE PRODUCTS WILLALSO BE EQUALLY IMPORTANTTHE COMPANIESrsquo STRATEGIES SHOULD FOCUS ON DRIVING SALES THROUGH A RIGHT PRODUCT MIXEFFICIENT MATERIALS PROCUREMENT REDUCED WASTAGES INCREASED FACTORY EFFICIENCIES AND IMPROVED SUPPLY CHAIN MANAGEMENTTHERErsquoS AN IMMENSE SCOPE FOR GROWTH OF CHOCOLATE INDUSTRY IN INDIA - GEOGRAPHICALLY AS WELLAS IN THE PRODUCT OFFERING

BIBLIOGRAPHY

bull WWWCADBURYCOUKbull WWWCHOCOLATEREVIEWCOUKbull WWW CADBURYS CHWEPPESCOMbull WWWWIKIPEDIAORGbull WWWCADBURYCOMbull WWWOPPAPERSCOM REFERENCES-bull PHILIP KOTLER

  • BY RAGHAVENDRA MISHRA
  • INTRODUCTION
  • HISTORY
  • MARKETING OBJECTIVES
  • TARGET MARKET
  • MARKET SEGMENTATION
  • GEOGRAPHIC SEGMENTATION
  • DEMOGRAPHIC SEGMENTATION
  • MARKETING MIX
  • PRODUCT
  • PRODUCT INNOVATIONS
  • PACKAGING
  • PRICE
  • VOLUME LED GROWTH STRATEGY
  • HIRES AT KEARNEY TO CURB COSTS
  • EARNINGS SENSITIVITY FACTORS
  • PLACE
  • DISTRIBUTION
  • NATURE OF RETAIL OUTLET
  • PROMOTION
  • CHOCOLATE ADS SHIFT FOCUS FROM KIDS TO YOUTH
  • CONCLUSION
  • BIBLIOGRAPHY
Page 17: Cadbury Marketing Mix(focuses on cadbury india ltd)

PLACE

bull PLANT LOCATIONSbull 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 MUMBAITHESE FACTORIES CHURN OUT CLOSE TO 8000 TONNES OF CHOCOLATE ANNUALLY

DISTRIBUTIONbull CHOCOLATE NEEDS TO BE DISTRIBUTED DIRECTLY UNLIKE

OTHER FMCG PRODUCTS LIKE SOAPS ANDbull DETERGENTS WHICH CAN BE SOLD THROUGH A

WHOLESALE NETWORK 90 OF CHOCOLATE PRODUCTS ARE SOLD

bull DIRECTLY TO RETAILERS bull CADBURYS DISTRIBUTION NETWORK USED TO

ENCOMPASSES 2100 DISTRIBUTORS AND 450000 RETAILERS bull TO AVOID CANNIBALIZATION OF ITS HIGHER PRICED

PRODUCTS FROM LOWER PRICED ONES CADBURY ISbull SETTING UP TWO SEPARATE DISTRIBUTION CHANNELS ndash

ONE FOR CORE BUSINESS amp OTHER FOR MASS MARKETS

NATURE OF RETAIL OUTLET

bull CHOCOLATES ARE PRIMARILY SOLD THROUGH KIRANA STORES GIFT STORES MEDICAL STORES CANTEENS

bull PAN-BIDI STORES BAKERIES SWEET SHOPS ETC THIS IS TRUE FOR CHOCOLATES ALSO THE SPACE ALLOCATED FOR

bull THE CHOCOLATES WAS LESS WHEN COMPARED TO THE TOTAL AREA OF THE SHOP OF THE SPACE ALLOCATED FOR

bull CHOCOLATES CADBURY BRANDS OCCUPIED MORE THAN NESTLE BRANDS

PROMOTIONbull ADVERTISEMENTSbull THE ADVERTISEMENT AIMED AT CONVEYING THE IDEA THAT NO

SPECIFIC OCCASION IS REQUIRED FOR CONSUMING CDM

bull CELEBRITIES ENDORSEMENTS

bull CADBURY ROPED IN PREITY ZINTA FOR ITS PERK BRAND PREITY ZINTArsquoS ANGELIC DIMPLES LAID THE

bull FOUNDATION FOR WHAT WOULD BECOME THE INDIAN TEENAGERrsquoS FAVORITE SNACK AFTER THIS CAMPAIGN

bull PERKrsquoS SALE SURGED

bull THE BIG lsquoBrsquo FACTORbull THE BIG FACTOR THAT HAS PUSHED UP CDM SALES IS THE

AMITABH BACHCHAN CAMPAIGN CADBURY APPOINTED AMITABH BACHCHAN AS ITS BRAND AMBASSADOR

CHOCOLATE ADS SHIFT FOCUS FROM KIDS TO YOUTH

bull INDIAN CHOCOLATE MARKET IS ALMOST TOTALLY DEPENDED ON PURCHASES OF KIDS

bull WHILE CADBURY IS TRYING TO SELL INDULGENCE TO ADULTS KIT KAT IS SELLING RITUALISTIC BREAK TO

bull TEENAGERS YOUNG ADULTS THIS IS REFLECTED IN THE CHANGING ADVERTISING PATTERNS ACROSS DIFFERENT

bull CHANNELS

CONCLUSION WHEN PRICED AT EVEN RS 2500KG WHILE THERE ARE PLACES IN

INDIA WHERE PEOPLE HAVE NEVER EVEN TASTED CHOCOLATES ONCEUNDERSTANDING THE CONSUMER DEMANDS AND MAINTAINING THE QUALITY WILL BE ESSENTIALCOMPANIES WILL HAVE TO KEEP THEMSELVES ABREAST WITH THE DEVELOPMENTS IN OTHER PARTS OF THE WORLDPRICING IS THE KEY FOR COMPANIES TO MAKE THEIR PRODUCT REACH CONSUMERSrsquo POCKETS RIGHTPRICING WILL MAKE OR BREAK THE PRODUCT SUCCESS ECONOMICAL DISTRIBUTION OF THE PRODUCTS WILLALSO BE EQUALLY IMPORTANTTHE COMPANIESrsquo STRATEGIES SHOULD FOCUS ON DRIVING SALES THROUGH A RIGHT PRODUCT MIXEFFICIENT MATERIALS PROCUREMENT REDUCED WASTAGES INCREASED FACTORY EFFICIENCIES AND IMPROVED SUPPLY CHAIN MANAGEMENTTHERErsquoS AN IMMENSE SCOPE FOR GROWTH OF CHOCOLATE INDUSTRY IN INDIA - GEOGRAPHICALLY AS WELLAS IN THE PRODUCT OFFERING

BIBLIOGRAPHY

bull WWWCADBURYCOUKbull WWWCHOCOLATEREVIEWCOUKbull WWW CADBURYS CHWEPPESCOMbull WWWWIKIPEDIAORGbull WWWCADBURYCOMbull WWWOPPAPERSCOM REFERENCES-bull PHILIP KOTLER

  • BY RAGHAVENDRA MISHRA
  • INTRODUCTION
  • HISTORY
  • MARKETING OBJECTIVES
  • TARGET MARKET
  • MARKET SEGMENTATION
  • GEOGRAPHIC SEGMENTATION
  • DEMOGRAPHIC SEGMENTATION
  • MARKETING MIX
  • PRODUCT
  • PRODUCT INNOVATIONS
  • PACKAGING
  • PRICE
  • VOLUME LED GROWTH STRATEGY
  • HIRES AT KEARNEY TO CURB COSTS
  • EARNINGS SENSITIVITY FACTORS
  • PLACE
  • DISTRIBUTION
  • NATURE OF RETAIL OUTLET
  • PROMOTION
  • CHOCOLATE ADS SHIFT FOCUS FROM KIDS TO YOUTH
  • CONCLUSION
  • BIBLIOGRAPHY
Page 18: Cadbury Marketing Mix(focuses on cadbury india ltd)

DISTRIBUTIONbull CHOCOLATE NEEDS TO BE DISTRIBUTED DIRECTLY UNLIKE

OTHER FMCG PRODUCTS LIKE SOAPS ANDbull DETERGENTS WHICH CAN BE SOLD THROUGH A

WHOLESALE NETWORK 90 OF CHOCOLATE PRODUCTS ARE SOLD

bull DIRECTLY TO RETAILERS bull CADBURYS DISTRIBUTION NETWORK USED TO

ENCOMPASSES 2100 DISTRIBUTORS AND 450000 RETAILERS bull TO AVOID CANNIBALIZATION OF ITS HIGHER PRICED

PRODUCTS FROM LOWER PRICED ONES CADBURY ISbull SETTING UP TWO SEPARATE DISTRIBUTION CHANNELS ndash

ONE FOR CORE BUSINESS amp OTHER FOR MASS MARKETS

NATURE OF RETAIL OUTLET

bull CHOCOLATES ARE PRIMARILY SOLD THROUGH KIRANA STORES GIFT STORES MEDICAL STORES CANTEENS

bull PAN-BIDI STORES BAKERIES SWEET SHOPS ETC THIS IS TRUE FOR CHOCOLATES ALSO THE SPACE ALLOCATED FOR

bull THE CHOCOLATES WAS LESS WHEN COMPARED TO THE TOTAL AREA OF THE SHOP OF THE SPACE ALLOCATED FOR

bull CHOCOLATES CADBURY BRANDS OCCUPIED MORE THAN NESTLE BRANDS

PROMOTIONbull ADVERTISEMENTSbull THE ADVERTISEMENT AIMED AT CONVEYING THE IDEA THAT NO

SPECIFIC OCCASION IS REQUIRED FOR CONSUMING CDM

bull CELEBRITIES ENDORSEMENTS

bull CADBURY ROPED IN PREITY ZINTA FOR ITS PERK BRAND PREITY ZINTArsquoS ANGELIC DIMPLES LAID THE

bull FOUNDATION FOR WHAT WOULD BECOME THE INDIAN TEENAGERrsquoS FAVORITE SNACK AFTER THIS CAMPAIGN

bull PERKrsquoS SALE SURGED

bull THE BIG lsquoBrsquo FACTORbull THE BIG FACTOR THAT HAS PUSHED UP CDM SALES IS THE

AMITABH BACHCHAN CAMPAIGN CADBURY APPOINTED AMITABH BACHCHAN AS ITS BRAND AMBASSADOR

CHOCOLATE ADS SHIFT FOCUS FROM KIDS TO YOUTH

bull INDIAN CHOCOLATE MARKET IS ALMOST TOTALLY DEPENDED ON PURCHASES OF KIDS

bull WHILE CADBURY IS TRYING TO SELL INDULGENCE TO ADULTS KIT KAT IS SELLING RITUALISTIC BREAK TO

bull TEENAGERS YOUNG ADULTS THIS IS REFLECTED IN THE CHANGING ADVERTISING PATTERNS ACROSS DIFFERENT

bull CHANNELS

CONCLUSION WHEN PRICED AT EVEN RS 2500KG WHILE THERE ARE PLACES IN

INDIA WHERE PEOPLE HAVE NEVER EVEN TASTED CHOCOLATES ONCEUNDERSTANDING THE CONSUMER DEMANDS AND MAINTAINING THE QUALITY WILL BE ESSENTIALCOMPANIES WILL HAVE TO KEEP THEMSELVES ABREAST WITH THE DEVELOPMENTS IN OTHER PARTS OF THE WORLDPRICING IS THE KEY FOR COMPANIES TO MAKE THEIR PRODUCT REACH CONSUMERSrsquo POCKETS RIGHTPRICING WILL MAKE OR BREAK THE PRODUCT SUCCESS ECONOMICAL DISTRIBUTION OF THE PRODUCTS WILLALSO BE EQUALLY IMPORTANTTHE COMPANIESrsquo STRATEGIES SHOULD FOCUS ON DRIVING SALES THROUGH A RIGHT PRODUCT MIXEFFICIENT MATERIALS PROCUREMENT REDUCED WASTAGES INCREASED FACTORY EFFICIENCIES AND IMPROVED SUPPLY CHAIN MANAGEMENTTHERErsquoS AN IMMENSE SCOPE FOR GROWTH OF CHOCOLATE INDUSTRY IN INDIA - GEOGRAPHICALLY AS WELLAS IN THE PRODUCT OFFERING

BIBLIOGRAPHY

bull WWWCADBURYCOUKbull WWWCHOCOLATEREVIEWCOUKbull WWW CADBURYS CHWEPPESCOMbull WWWWIKIPEDIAORGbull WWWCADBURYCOMbull WWWOPPAPERSCOM REFERENCES-bull PHILIP KOTLER

  • BY RAGHAVENDRA MISHRA
  • INTRODUCTION
  • HISTORY
  • MARKETING OBJECTIVES
  • TARGET MARKET
  • MARKET SEGMENTATION
  • GEOGRAPHIC SEGMENTATION
  • DEMOGRAPHIC SEGMENTATION
  • MARKETING MIX
  • PRODUCT
  • PRODUCT INNOVATIONS
  • PACKAGING
  • PRICE
  • VOLUME LED GROWTH STRATEGY
  • HIRES AT KEARNEY TO CURB COSTS
  • EARNINGS SENSITIVITY FACTORS
  • PLACE
  • DISTRIBUTION
  • NATURE OF RETAIL OUTLET
  • PROMOTION
  • CHOCOLATE ADS SHIFT FOCUS FROM KIDS TO YOUTH
  • CONCLUSION
  • BIBLIOGRAPHY
Page 19: Cadbury Marketing Mix(focuses on cadbury india ltd)

NATURE OF RETAIL OUTLET

bull CHOCOLATES ARE PRIMARILY SOLD THROUGH KIRANA STORES GIFT STORES MEDICAL STORES CANTEENS

bull PAN-BIDI STORES BAKERIES SWEET SHOPS ETC THIS IS TRUE FOR CHOCOLATES ALSO THE SPACE ALLOCATED FOR

bull THE CHOCOLATES WAS LESS WHEN COMPARED TO THE TOTAL AREA OF THE SHOP OF THE SPACE ALLOCATED FOR

bull CHOCOLATES CADBURY BRANDS OCCUPIED MORE THAN NESTLE BRANDS

PROMOTIONbull ADVERTISEMENTSbull THE ADVERTISEMENT AIMED AT CONVEYING THE IDEA THAT NO

SPECIFIC OCCASION IS REQUIRED FOR CONSUMING CDM

bull CELEBRITIES ENDORSEMENTS

bull CADBURY ROPED IN PREITY ZINTA FOR ITS PERK BRAND PREITY ZINTArsquoS ANGELIC DIMPLES LAID THE

bull FOUNDATION FOR WHAT WOULD BECOME THE INDIAN TEENAGERrsquoS FAVORITE SNACK AFTER THIS CAMPAIGN

bull PERKrsquoS SALE SURGED

bull THE BIG lsquoBrsquo FACTORbull THE BIG FACTOR THAT HAS PUSHED UP CDM SALES IS THE

AMITABH BACHCHAN CAMPAIGN CADBURY APPOINTED AMITABH BACHCHAN AS ITS BRAND AMBASSADOR

CHOCOLATE ADS SHIFT FOCUS FROM KIDS TO YOUTH

bull INDIAN CHOCOLATE MARKET IS ALMOST TOTALLY DEPENDED ON PURCHASES OF KIDS

bull WHILE CADBURY IS TRYING TO SELL INDULGENCE TO ADULTS KIT KAT IS SELLING RITUALISTIC BREAK TO

bull TEENAGERS YOUNG ADULTS THIS IS REFLECTED IN THE CHANGING ADVERTISING PATTERNS ACROSS DIFFERENT

bull CHANNELS

CONCLUSION WHEN PRICED AT EVEN RS 2500KG WHILE THERE ARE PLACES IN

INDIA WHERE PEOPLE HAVE NEVER EVEN TASTED CHOCOLATES ONCEUNDERSTANDING THE CONSUMER DEMANDS AND MAINTAINING THE QUALITY WILL BE ESSENTIALCOMPANIES WILL HAVE TO KEEP THEMSELVES ABREAST WITH THE DEVELOPMENTS IN OTHER PARTS OF THE WORLDPRICING IS THE KEY FOR COMPANIES TO MAKE THEIR PRODUCT REACH CONSUMERSrsquo POCKETS RIGHTPRICING WILL MAKE OR BREAK THE PRODUCT SUCCESS ECONOMICAL DISTRIBUTION OF THE PRODUCTS WILLALSO BE EQUALLY IMPORTANTTHE COMPANIESrsquo STRATEGIES SHOULD FOCUS ON DRIVING SALES THROUGH A RIGHT PRODUCT MIXEFFICIENT MATERIALS PROCUREMENT REDUCED WASTAGES INCREASED FACTORY EFFICIENCIES AND IMPROVED SUPPLY CHAIN MANAGEMENTTHERErsquoS AN IMMENSE SCOPE FOR GROWTH OF CHOCOLATE INDUSTRY IN INDIA - GEOGRAPHICALLY AS WELLAS IN THE PRODUCT OFFERING

BIBLIOGRAPHY

bull WWWCADBURYCOUKbull WWWCHOCOLATEREVIEWCOUKbull WWW CADBURYS CHWEPPESCOMbull WWWWIKIPEDIAORGbull WWWCADBURYCOMbull WWWOPPAPERSCOM REFERENCES-bull PHILIP KOTLER

  • BY RAGHAVENDRA MISHRA
  • INTRODUCTION
  • HISTORY
  • MARKETING OBJECTIVES
  • TARGET MARKET
  • MARKET SEGMENTATION
  • GEOGRAPHIC SEGMENTATION
  • DEMOGRAPHIC SEGMENTATION
  • MARKETING MIX
  • PRODUCT
  • PRODUCT INNOVATIONS
  • PACKAGING
  • PRICE
  • VOLUME LED GROWTH STRATEGY
  • HIRES AT KEARNEY TO CURB COSTS
  • EARNINGS SENSITIVITY FACTORS
  • PLACE
  • DISTRIBUTION
  • NATURE OF RETAIL OUTLET
  • PROMOTION
  • CHOCOLATE ADS SHIFT FOCUS FROM KIDS TO YOUTH
  • CONCLUSION
  • BIBLIOGRAPHY
Page 20: Cadbury Marketing Mix(focuses on cadbury india ltd)

PROMOTIONbull ADVERTISEMENTSbull THE ADVERTISEMENT AIMED AT CONVEYING THE IDEA THAT NO

SPECIFIC OCCASION IS REQUIRED FOR CONSUMING CDM

bull CELEBRITIES ENDORSEMENTS

bull CADBURY ROPED IN PREITY ZINTA FOR ITS PERK BRAND PREITY ZINTArsquoS ANGELIC DIMPLES LAID THE

bull FOUNDATION FOR WHAT WOULD BECOME THE INDIAN TEENAGERrsquoS FAVORITE SNACK AFTER THIS CAMPAIGN

bull PERKrsquoS SALE SURGED

bull THE BIG lsquoBrsquo FACTORbull THE BIG FACTOR THAT HAS PUSHED UP CDM SALES IS THE

AMITABH BACHCHAN CAMPAIGN CADBURY APPOINTED AMITABH BACHCHAN AS ITS BRAND AMBASSADOR

CHOCOLATE ADS SHIFT FOCUS FROM KIDS TO YOUTH

bull INDIAN CHOCOLATE MARKET IS ALMOST TOTALLY DEPENDED ON PURCHASES OF KIDS

bull WHILE CADBURY IS TRYING TO SELL INDULGENCE TO ADULTS KIT KAT IS SELLING RITUALISTIC BREAK TO

bull TEENAGERS YOUNG ADULTS THIS IS REFLECTED IN THE CHANGING ADVERTISING PATTERNS ACROSS DIFFERENT

bull CHANNELS

CONCLUSION WHEN PRICED AT EVEN RS 2500KG WHILE THERE ARE PLACES IN

INDIA WHERE PEOPLE HAVE NEVER EVEN TASTED CHOCOLATES ONCEUNDERSTANDING THE CONSUMER DEMANDS AND MAINTAINING THE QUALITY WILL BE ESSENTIALCOMPANIES WILL HAVE TO KEEP THEMSELVES ABREAST WITH THE DEVELOPMENTS IN OTHER PARTS OF THE WORLDPRICING IS THE KEY FOR COMPANIES TO MAKE THEIR PRODUCT REACH CONSUMERSrsquo POCKETS RIGHTPRICING WILL MAKE OR BREAK THE PRODUCT SUCCESS ECONOMICAL DISTRIBUTION OF THE PRODUCTS WILLALSO BE EQUALLY IMPORTANTTHE COMPANIESrsquo STRATEGIES SHOULD FOCUS ON DRIVING SALES THROUGH A RIGHT PRODUCT MIXEFFICIENT MATERIALS PROCUREMENT REDUCED WASTAGES INCREASED FACTORY EFFICIENCIES AND IMPROVED SUPPLY CHAIN MANAGEMENTTHERErsquoS AN IMMENSE SCOPE FOR GROWTH OF CHOCOLATE INDUSTRY IN INDIA - GEOGRAPHICALLY AS WELLAS IN THE PRODUCT OFFERING

BIBLIOGRAPHY

bull WWWCADBURYCOUKbull WWWCHOCOLATEREVIEWCOUKbull WWW CADBURYS CHWEPPESCOMbull WWWWIKIPEDIAORGbull WWWCADBURYCOMbull WWWOPPAPERSCOM REFERENCES-bull PHILIP KOTLER

  • BY RAGHAVENDRA MISHRA
  • INTRODUCTION
  • HISTORY
  • MARKETING OBJECTIVES
  • TARGET MARKET
  • MARKET SEGMENTATION
  • GEOGRAPHIC SEGMENTATION
  • DEMOGRAPHIC SEGMENTATION
  • MARKETING MIX
  • PRODUCT
  • PRODUCT INNOVATIONS
  • PACKAGING
  • PRICE
  • VOLUME LED GROWTH STRATEGY
  • HIRES AT KEARNEY TO CURB COSTS
  • EARNINGS SENSITIVITY FACTORS
  • PLACE
  • DISTRIBUTION
  • NATURE OF RETAIL OUTLET
  • PROMOTION
  • CHOCOLATE ADS SHIFT FOCUS FROM KIDS TO YOUTH
  • CONCLUSION
  • BIBLIOGRAPHY
Page 21: Cadbury Marketing Mix(focuses on cadbury india ltd)

CHOCOLATE ADS SHIFT FOCUS FROM KIDS TO YOUTH

bull INDIAN CHOCOLATE MARKET IS ALMOST TOTALLY DEPENDED ON PURCHASES OF KIDS

bull WHILE CADBURY IS TRYING TO SELL INDULGENCE TO ADULTS KIT KAT IS SELLING RITUALISTIC BREAK TO

bull TEENAGERS YOUNG ADULTS THIS IS REFLECTED IN THE CHANGING ADVERTISING PATTERNS ACROSS DIFFERENT

bull CHANNELS

CONCLUSION WHEN PRICED AT EVEN RS 2500KG WHILE THERE ARE PLACES IN

INDIA WHERE PEOPLE HAVE NEVER EVEN TASTED CHOCOLATES ONCEUNDERSTANDING THE CONSUMER DEMANDS AND MAINTAINING THE QUALITY WILL BE ESSENTIALCOMPANIES WILL HAVE TO KEEP THEMSELVES ABREAST WITH THE DEVELOPMENTS IN OTHER PARTS OF THE WORLDPRICING IS THE KEY FOR COMPANIES TO MAKE THEIR PRODUCT REACH CONSUMERSrsquo POCKETS RIGHTPRICING WILL MAKE OR BREAK THE PRODUCT SUCCESS ECONOMICAL DISTRIBUTION OF THE PRODUCTS WILLALSO BE EQUALLY IMPORTANTTHE COMPANIESrsquo STRATEGIES SHOULD FOCUS ON DRIVING SALES THROUGH A RIGHT PRODUCT MIXEFFICIENT MATERIALS PROCUREMENT REDUCED WASTAGES INCREASED FACTORY EFFICIENCIES AND IMPROVED SUPPLY CHAIN MANAGEMENTTHERErsquoS AN IMMENSE SCOPE FOR GROWTH OF CHOCOLATE INDUSTRY IN INDIA - GEOGRAPHICALLY AS WELLAS IN THE PRODUCT OFFERING

BIBLIOGRAPHY

bull WWWCADBURYCOUKbull WWWCHOCOLATEREVIEWCOUKbull WWW CADBURYS CHWEPPESCOMbull WWWWIKIPEDIAORGbull WWWCADBURYCOMbull WWWOPPAPERSCOM REFERENCES-bull PHILIP KOTLER

  • BY RAGHAVENDRA MISHRA
  • INTRODUCTION
  • HISTORY
  • MARKETING OBJECTIVES
  • TARGET MARKET
  • MARKET SEGMENTATION
  • GEOGRAPHIC SEGMENTATION
  • DEMOGRAPHIC SEGMENTATION
  • MARKETING MIX
  • PRODUCT
  • PRODUCT INNOVATIONS
  • PACKAGING
  • PRICE
  • VOLUME LED GROWTH STRATEGY
  • HIRES AT KEARNEY TO CURB COSTS
  • EARNINGS SENSITIVITY FACTORS
  • PLACE
  • DISTRIBUTION
  • NATURE OF RETAIL OUTLET
  • PROMOTION
  • CHOCOLATE ADS SHIFT FOCUS FROM KIDS TO YOUTH
  • CONCLUSION
  • BIBLIOGRAPHY
Page 22: Cadbury Marketing Mix(focuses on cadbury india ltd)

CONCLUSION WHEN PRICED AT EVEN RS 2500KG WHILE THERE ARE PLACES IN

INDIA WHERE PEOPLE HAVE NEVER EVEN TASTED CHOCOLATES ONCEUNDERSTANDING THE CONSUMER DEMANDS AND MAINTAINING THE QUALITY WILL BE ESSENTIALCOMPANIES WILL HAVE TO KEEP THEMSELVES ABREAST WITH THE DEVELOPMENTS IN OTHER PARTS OF THE WORLDPRICING IS THE KEY FOR COMPANIES TO MAKE THEIR PRODUCT REACH CONSUMERSrsquo POCKETS RIGHTPRICING WILL MAKE OR BREAK THE PRODUCT SUCCESS ECONOMICAL DISTRIBUTION OF THE PRODUCTS WILLALSO BE EQUALLY IMPORTANTTHE COMPANIESrsquo STRATEGIES SHOULD FOCUS ON DRIVING SALES THROUGH A RIGHT PRODUCT MIXEFFICIENT MATERIALS PROCUREMENT REDUCED WASTAGES INCREASED FACTORY EFFICIENCIES AND IMPROVED SUPPLY CHAIN MANAGEMENTTHERErsquoS AN IMMENSE SCOPE FOR GROWTH OF CHOCOLATE INDUSTRY IN INDIA - GEOGRAPHICALLY AS WELLAS IN THE PRODUCT OFFERING

BIBLIOGRAPHY

bull WWWCADBURYCOUKbull WWWCHOCOLATEREVIEWCOUKbull WWW CADBURYS CHWEPPESCOMbull WWWWIKIPEDIAORGbull WWWCADBURYCOMbull WWWOPPAPERSCOM REFERENCES-bull PHILIP KOTLER

  • BY RAGHAVENDRA MISHRA
  • INTRODUCTION
  • HISTORY
  • MARKETING OBJECTIVES
  • TARGET MARKET
  • MARKET SEGMENTATION
  • GEOGRAPHIC SEGMENTATION
  • DEMOGRAPHIC SEGMENTATION
  • MARKETING MIX
  • PRODUCT
  • PRODUCT INNOVATIONS
  • PACKAGING
  • PRICE
  • VOLUME LED GROWTH STRATEGY
  • HIRES AT KEARNEY TO CURB COSTS
  • EARNINGS SENSITIVITY FACTORS
  • PLACE
  • DISTRIBUTION
  • NATURE OF RETAIL OUTLET
  • PROMOTION
  • CHOCOLATE ADS SHIFT FOCUS FROM KIDS TO YOUTH
  • CONCLUSION
  • BIBLIOGRAPHY
Page 23: Cadbury Marketing Mix(focuses on cadbury india ltd)

BIBLIOGRAPHY

bull WWWCADBURYCOUKbull WWWCHOCOLATEREVIEWCOUKbull WWW CADBURYS CHWEPPESCOMbull WWWWIKIPEDIAORGbull WWWCADBURYCOMbull WWWOPPAPERSCOM REFERENCES-bull PHILIP KOTLER

  • BY RAGHAVENDRA MISHRA
  • INTRODUCTION
  • HISTORY
  • MARKETING OBJECTIVES
  • TARGET MARKET
  • MARKET SEGMENTATION
  • GEOGRAPHIC SEGMENTATION
  • DEMOGRAPHIC SEGMENTATION
  • MARKETING MIX
  • PRODUCT
  • PRODUCT INNOVATIONS
  • PACKAGING
  • PRICE
  • VOLUME LED GROWTH STRATEGY
  • HIRES AT KEARNEY TO CURB COSTS
  • EARNINGS SENSITIVITY FACTORS
  • PLACE
  • DISTRIBUTION
  • NATURE OF RETAIL OUTLET
  • PROMOTION
  • CHOCOLATE ADS SHIFT FOCUS FROM KIDS TO YOUTH
  • CONCLUSION
  • BIBLIOGRAPHY