Cadbury India Ltd.

Cadbury India Ltd. is a part of Kraft Foods. Cadbury India operates in five categories Chocolate confectionery, Beverages, Biscuits, Gum and Candy. In the Chocolate Confectionery business, Cadbury has maintained its undisputed leadership over the years. Some of the key brands are Cadbury Dairy Milk, Bournvita, 5 Star, Perk, Bournville, Celebrations, Gems, Halls, clairs, Bubbaloo, Tang and Oreo. Our core purpose "make today delicious" captures the spirit of what we are trying to achieve as a business. In India, Cadbury began its operations in 1948 by importing chocolates. After over 60 years of existence, it today has six company-owned manufacturing facilities at Thane, Induri (Pune) and Malanpur (Gwalior), Bangalore and Baddi (Himachal Pradesh) Hyderabad and 4 sales offices (New Delhi, Mumbai, Kolkata and Chennai). The corporate office is in Mumbai.

Cadbury India enjoys a value market share of over 70 percent in the chocolate category and our brand Cadbury Dairy Milk (CDM) is considered the "gold standard" for chocolates in India. The pure taste of CDM defines the chocolate taste for the Indian consumer. In the Milk Food drinks segment our main product is Bournvita - the leading Malted Food Drink (MFD) in the country. Similarly in the medicated candy category Halls is the undisputed leader. We recently entered the biscuits category with the launch of the Worlds No 1 biscuit brand Oreo. Since 1965 Cadbury has also pioneered the development of cocoa cultivation in India. For over two decades, we have worked with the Kerala Agricultural University to undertake cocoa research and released clones, hybrids that improve the cocoa yield. Our Cocoa team visits farmers and advises them on the cultivation aspects from planting to harvesting. We also conduct farmer meetings & seminars to educate them on Cocoa cultivation aspects. Our efforts have increased cocoa productivity and touched the lives of thousands of farmers. Hardly surprising then that the Cocoa tree is called the Cadbury tree!

List of Cadbury product in India

Cadbury Dairy Milk Chocolates (Perk , 5star,Gems etc.) Bournvita Oreo Eclairs Cadbury Bubbaloo Gum Cadbury Halls Candy Cadbury Bytes (Snacks)

Competitors of Cadbury India Nestle Britannia

Diagram shows the Brand Personality of Cadbury.

Reliable Down-to-Earth

Fun-Loving

Cadburys
Brand Personality

Indulgent Friendly

Confident

Cadburys Brand Personality

Key success factors of Cadbury

1. Extensive distribution network Cadburys brands are available in over a million outlets across the country. The distribution network directly covers almost the entire urban population. The company has invested significantly in building such an extensive network.

The company uses Information Technology to improve its logistics and distribution competitiveness. Cadbury has improved the distribution quality of its products with the installation of refrigerators at several outlets.

This helps in maintaining product quality in summer, when sales usually dip due to the fact that the heat affects product quality and thereby consumption.

2. Creation of strong brands

Cadbury owes its success to strong brand equity and resultant consumer preference that it enjoys in India.

The company has built strong brand equity through consistently high product quality, relevant, insightful and entertaining communication. Cadbury has developed new channels for marketing its brands such as Gifting and Snacking. The company places great emphasis in ensuring display dominance at the point of purchase

3. Customization of products for India

Cadbury India has spent time in understanding the Indian consumers. Leveraging its 55 years of experience in India, the company has customized its products to the Indian markets.

It also offers products at affordable price points so as to increase its market penetration.

4. Leveraging the India Advantages

Though, India contributes to less than 5 per cent of the global revenues today, India is critical to the global strategy of the company

5. Managerial Talent

Cadbury has begun recruiting management graduates in India to serve its global operations.

6. Huge market potential

India offers huge market potential and is a priority market for Cadbury. The company also leverages India as a manufacturing base for producing products for the overseas market.

Cadbury India has 4 company owned factories and as many third party manufacturing contractors. It also has a wide Sales & Distribution infrastructure consisting of 33 depots managed by 4 regional sales branches across India.

Attractiveness in terms of profitability

Cadbury India reported its highest-ever sales and net profit in 2011 as the firm synonymous with chocolates aggressively ramped up distribution, decentralized operations and added new products from the Kraft portfolio. Between January and December 2011, Cadbury India's sales grew 35% to Rs 3,359 crore while net profit at Rs 297 crore grew 42%, according to its latest annual report sent to about 8,000-odd minority shareholders who have been locked in a legal dispute over the pricing of the chocolate company's share buyback programme

FUTURE PLANS

Cadburys has these goals for the years ahead:

Deliver superior shareowner returns on the back of superior business performance Profitably and significantly increase its share of the global confectionery market Profitably secure and then grow its share of the regional beverages markets in which the company has chosen to participate

To reinforce its reputation as a Company which motivates, develops and rewards employees for superior performance and make a difference in the communities in which it does business.

To develop brands with mass franchise and widen out its distribution network further into the rural sector

Keeping with the awareness that new product development provides the key to growth in this market

Launch one new product every year and extend its sugar confectionery range

Application of Porters model of five forces

Buyer Power:

The buyer power is weak since the customers are fragmented. They do not have a big influence on the price they pay for the domestical products. It is not the same when we think about the distributors who have a big buyer power. For example, if Nestle decide that a price is too high, it can have an important impact on Cadbury. Suppliers Power: The suppliers power is important because it is very costly to switch suppliers. The production of Cadbury is very big so are the supply. If they change suppliers, the supply chain will probably change also and those changes requires a lot of time and money. On the other hand, Cadbury has also a important power over their suppliers because of the importance of their demand. Therefore, on both sides they are limited. Substitutes: There is possible substitutes for Cadbury products. Since most of their products are domestical, customers could decide to go with the homebrand that are less expensive. This is where the branding take all of its importance. Current competition:

It is really important to be aware of the competition in the market of a company. It affects the global strategy by having an effect on the demand and offer law. There is currently three main competitors to Cadbury.

Potential competition:

The potential competition is not a really big threat.The barrier to entry are really big because the four company mentionned above worth a lot of money and there is a big capital investment needed. The branding is strong and they would have the strength to compete if they was a new competitors. Also, people are strongly attached to the brand that they know. They want the brand they like, even though another brand would be less expensive.