College : SNJB’s COE, Chandwad.

Class : MBA 1st year.

Guidance By : Hon. Prof. Mr. U. S. Kasar Sir.

Industry : Chocolate Industry.

Presenters : Gaziyani Md. Hasnain

Rahul O. Bhandari

Khushbu Mutha

Bhagyashree Mankar

Abu Swaleh

Chapter - 2

Promoters And

Management Ethos

Background Of Top 3 Players

1- Cadbury

John Cadbury was born in B’ham to

Richard Cadbury who was from a

wealthy Quaker family in U.K. in

1797.

Establish cause was alcohol.

Tea dealer in 1818 in leeds.

Returning to B’ham in 1824 &

opened a shop at Bull Street.

1831-rented factory for drinking

chocolate & cocoa.Larger factory with his

brother Benjamin and started

selling 16 type of drinking

chocolates - largest till 1960s.

Both brothers became partner in 1848 for 7 years.

Founded factory in bournville in 1861- largest chocolate production in U.K..

Opened an office in London & received a Royal Warrant as a manufacturer

of chocolate and cocoa to Queen Victoria in 1854.

1897- Manufactured 1st milk chocolate. In 1899 factory employed 2,600

people and became corporate.

1950- Cadbury opened its first overseas factory near Hobart, Tasmania.

1969 - Cadbury merged with Schweppes to form Cadbury Schweppes. Schweppes

was a well-known British brand that manufactured carbonated mineral water and soft

drinks.

Today Cadbury Schweppes is the largest confectionery company in the world,

employing more than 70,000 employees.

Cadbury India

In India, Cadbury began its operations in 1948 by importing chocolates. It

today has 5 company-owned manufacturing facilities at Thane, Induri

(Pune), Malanpur (Gwalior), Bangalore & Baddi (Himachal Pradesh) & 5

sales offices in 5 metros. The corporate office is in Mumbai.

It works as teams to convert products into brands.

Cadbury enjoys a value market share of over 70% - the highest Cadbury

brand share in the world! The brand Cadbury Dairy Milk is considered the

"gold standard" for chocolates in India. The pure taste of CDM defines the

chocolate taste for the Indian consumer

Background Of Top 3 Players

2- Nestle

•Nestle was founded in 1867 in Geneva, Switzerland by

Henri Nestle. Nestle's first product was "Farine Lactee

Nestle", an infant cereal.

•In 1905, Nestle acquired the Anglo-Swiss Condensed Milk

Company.

•Nestlé's relationship with India started in 1912.

•It began trading as The Nestlé Anglo-Swiss Condensed

Milk Company (After India's independence in 1947, the

economic policies of the Indian Government emphasised

the need for local production.

•Nestlé responded to India's aspirations by forming a

company in India and set up its first factory in 1961 at

Moga, Punjab.

Henri o nestle

•Nestlé India’s first production facility, set up in 1961 at Moga (Punjab), was followed

soon after by its second plant, set up at Choladi (Tamil Nadu), in 1967. Consequently,

Nestlé India set up factories in Nanjangud (Karnataka), in 1989, and Samalkha

(Haryana), in 1993.

•This was succeeded by the commissioning of two more factories - at Ponda and

Bicholim, Goa, in 1995 and 1997 respectively.

•The seventh factory was set up at Pantnagar, Uttarakhand, in 2006.

The 8th Factory was set up at Tahliwal, Himachal Pradesh, in 2012.

Nestle India

•Nestle India is a subsidiary of Nestle S.A. of Switzerland. Nestle India manufactures a

variety of food products such as infant food, milk products, beverages, prepared dishes

& cooking aids, and chocolates & confectionary.

• Some of the famous brands of Nestle are NESCAFE, MAGGI, MILKYBAR, MILO, KIT

KAT, BAR-ONE, MILKMAID, NESTEA, NESTLE Milk, NESTLE SLIM Milk, NESTLE

Fresh 'n' Natural Dahi and NESTLE Jeera Raita.

Background Of Top 3 Players

3- Amul

• Formed in 1946, is a dairy cooperative movement in India.

• A brand name managed by Gujarat Co-operative Milk Marketing Federation(GCMMF)

• Jointly owned by 2.79 million milk producers in Gujarat

• Spurred the White Revolution of India, which has made India the largest producer of milk and milk products in the world.

• Overseas markets - Mauritius, UAE, USA, Bangladesh, Australia, China, Singapore, Hong Kong and a few South African countries

• Fresh plans of flooding the markets of Japan & Sri Lanka.

• Dr Verghese Kurien, former chairman of the GCMMF -the man behind the success of Amul.

• Has a 15% market share in the Rs 15,000 crore milk category, and a 37% share in the Rs 900 crore organized ice-cream segment.

Amul Abroad

Background Of Bottom 3 Players

1- Mars-wrigley

• Type : private

• Industry : confectionary

• Founded : 1911 in Tacoma, Washington, USA.

• Founder : Frank C.Mars

• Products : milky way, bounty, mars, snickers.

• Revenue: US$30 billion

Background Of Bottom 3 Players

2- Kraft Foods

• Type : public

• Industry : Food Processing.

• Founded : Englewood, Chicago, USA

• Products : ice cream, cheese, milk.

• Revenue: US$ 40.4 billion

Background Of Bottom 3 Players

3-Fererro

•Type : private

•Industry : Food

•Founded : 1946

•Founder : Pietro Ferrero

•Products : confectionary.

•Revenue : 6.2 billion euros

About CEOs Of Top Players

1 - Irene Rosenfeld(CEO of Mondelez International Inc., owner of Cadbury)

Born May 3, 1953

Married with 2 Daughters

Fortune 500 Rank: 53

Compensation: $26.3 Million

Education:

Ph.D. in Marketing and Statistics

Master of Science in Business

Bachelor of Arts in Psychology from Cornell University

Childhood career ambition: President of the United States

Favorite Kraft product: Kraft macaroni and cheese and Oreo cookies are high up on the list too.

Hobbies: Play the piano and enjoys rollerblading

About CEOs Of Top 3 Players

2 - Paul Bulcke(CEO of Nestle)

•Paul Bulcke (born 1954), is a Belgian businessman who was appointed Chief

executive officer (CEO) of Nestlé on 20 September 2007 and officially started in his new

role in April 2008.

•He graduated as a commercial engineer at the Katholieke Universiteit Leuven and is

an alumnus of the Vlerick Leuven Gent Management School. He also attended the

program for Executive Development at the Swiss leading business school International

Institute for Management Development (IMD) in Lausanne.

•In 1979, aged 25, he started working for the Nestlé group and worked in different

countries, including Switzerland, Spain, Belgium, Peru, Ecuador, Chile, Portugal, Czech

Republic and Germany. Before his appointment as CEO of Nestlé, he was the Head of

America (EVP of Americas divisions).

•Bulcke has described Nestlé under his tenure as 'une force tranquille' (English: 'calm

strength'). He is known for having a reserved, quiet personal manner.

•On 25 May 2012, he received the VMA Award from the Vlerick Leuven Gent

Management School for his "lifelong career, which has been distinguished by sustained

integrity, exceptional management capacity and inspiring leadership“.

Organizational Structures of Chocolate Companies

1.

Organizational Structures of Chocolate Companies

2.

Corporate Social Responsibility

•Corporate Social Responsibility (CSR) is at the heart of our success.

• At Cadbury India we have always believed that good values and good

business go hand in hand.

•It's part of our heritage and the way we do things today.

•CSR is about growing our business responsibly.

Migratory birds stop over at Bangalore factory

• Water is a precious resources. As part of Cadbury India's effort to continuously

increase water conservation Cadbury.

• Bangalore factory has constructed a check dam to store the rainwater. This dam not

only acts as a major ground water replenishing source for the bore wells in the

factories and surrounding community, but is also a stopover location for some of the

migratory birds.

Pioneering cocoa cultivation in india

• Since 1974 Cadbury has pioneered the development of cocoa cultivation in india. For

over two have worked with the kerala agriculture university to undertake cocoa

research and released hybrids that improve the cocoa yield.

• cadbury efforts have increased cocoa productivity and touched the lives of

thousands of farmers.

Bangalore factory: the sun shines at night

• Sun shine now lights the pathways on streets out side cadbury Bangalore factory at

night…… Rising energy costs. And 300 sunny days a year, inspired the factory to

install 28 solar powered streetlights.

• It will reduce annual carbon dioxide (a major greenhouse gas) emission by ten

tonnes, playing a part in the effort to reduce global warming.

• In appreciation of cadbury commitment to implement environment friendly initiatives,

the Karnataka State Pollution Control Board has honoured the Bangalore factory with

the Parisara Premi (Preserve of the Environment) Awarded for the second year in a

row.

Non-formal school set up by Cadbury for children of migrant

workers in Baddi• The efforts of the Baddi factory team over 50 children of migrant workers living in

and around cadbury Baddi factory will now have daily access to non-formal

education. Cadbury has set up a non formal school as part of cadbury commitment to

create prosperous, inclusive and healthy communities.

• This is the first phase of project SAHYOG an 18 month project which commenced in

January this year in partnership with an NGO RUCHI. the project reaches out to over

400 poor & marginalised families in sandholi village near Cadbury Baddi factory and

apart from education .

Gurikha Project

• in 1999, we community initiative programme under the banner: Nutrition, Malanpur

factory (MP)

• As a result ,we focused on healthcare and education in the nearby village of gurikha.

• A nursery school was started and key improvements were made in the primary

school.

• The consolation and a bit of lateral thinking led to some real social improvements:

• fresh drinking water from a new village pump, a doctor ‘s clinic, vet services for milk

producing animals and fruit trees for each household to plant during the monsoons.

They also helped increased attendance in school.

• In 2005, the education programme supported the in empowermentSpecial focus was

given to the rights and contribution of girls and to the counteraction of female in

fanticle through a variety of initiatives.

Corporate Social Responsibility

• Nestle’s education programs have reached 9 million people

•Nestle India supports local schools, themaintenance of public parks

and green belts.

•By changing the recipes of its products, it has eliminated

•75,000 tons of trans fat,

•15,000 tons of salt,

•638,000 tons of sugar

• Water Education Programme in India, informed the farmers on the proper use of

water.

• Nestle provides rural farmers with technical support via Chilli Farming Project.

A proud farmer from Kelantan, Malaysia, whose chillies are used in Maggi chilli sauce.

Continual improvement of the environmental performance

along the value chain

Packaging Source Reduction Program

Shift from corrugated container to shrink film

From twin to single sachet

Reduced cut off length