Presentation On CadBury Scheweppes and CadBury Pakistan

 

  Project Title: 

Success Story of Cadbury  Group Members: Fareeha Javed ( 110082) Nazia Kanwal

(110077)

Salma Aziz

(110079)

 

 

Colour Me Purple (Literally)…

It means celebrating life’s everyday everyday pleasures with a bar  of Cadbury •The

Cadbury script logo, based on the signature of William Cadbury,, appeared first on the transport fleet in 1921 Cadbury •It wasn’t until

1952 that it was used across major brands

 

 

1. Intr trooduction 2. Su Succe ccess ss St Stor oryy of of Cadb Cadbury  ury  3. Corpo Corporate rate object objective ive of Cadbury Pakist Pakistan an Limited Limited 4. Pro Produc ductt line line of of Cadbu Cadbury ry in Pak Pakist istan an 5. Ma Mark rket et ov over ervi view  ew  6. Mark rkeet Si Size 7. Mark rkeet Tre Trend ndss 8. Mar arkket Sha Share ress 9. SWO WOT T Ana Anallys ysiis 10.PEST Analysis 11. Cus Custom tomers ers Audit Audit 12.Perce 12. Perceptual ptual Map 13.Company Life Cycle 14.Market Life Cycle 15.Boston 15. Boston Consulting Consulting Group Matrix Matrix 16.Conclusion 17.References

 

  •Cadbury

is the divisionand of  Cadbury Limited Schweppes . Itconfectionery is a confectionary  beverage brand that is sold around the world. • Cadbury is the world’s

fourth biggest supplier of 

chocolate and sugar confectionery. •Cadbury Schweppes employs around 54,000 people. Regional and local brands manufacturing plants has worked in 60 countries and sales in a further 165.

 

  Their operations are split into seven business units:

1. Mid Bri Brita tain in an and d IIrel relan and, 2. Middle dle E East ast and Afric Ad, fricaa (ME (MEA) A) 3. No North rth Am Ameri erica ca,, 4. So Sout uth h Amer America ica,, 5. Europ opee, 6. As Asia ia,, aand nd 7. Pacific

 

Introduction (continue)

The strategy is to increase: 1. Prof Prgroup’s ofit itab abil ilit ity  y  2. streng strength th and and 3. Volu Volume me

Chocolate confectionery is sold internationally  under Cadbury name and includes power brands such as 1. Cadbury’s Dairy Milk   2. Cadbury’s Time Out  Out  3. Pic Picnic nic and 4.Roses.

 

•Cadbury

Pakistan is a part of the world’s largest confectionery company.

•

Cadbury has grown consistently since its inception in 1993. • Company has tripled its size in the last two years. •The

company employees 151 people

•Currently •It

has a manufacturing plant in Hub.

enjoys strong presence in the confectionery business with brands like •Cadbury •Chocki, •Éclairs

Dairy Milk,

Perk 

and Soft mints.

 According to Top Brands survey conducted by the FPCCI Cadbury   was declared declared the top conf confectionery ectionery b brand rand in 2006.-

 

 

 Success story of Cadbury

The Cadbury story is a fascinating study of industrial and social development, covering well over a century and a half. It shows how a small family business developed into an international company combining the most sophisticated technology with the highest standards of  •Quality  •Technical skills and •Innovation.

 

Mile Stones….  Stones…. 

 

1) Cadbury chocolate is born in 1824 Founder was John Cadbury in Bull Street Birmingham. Birmingham. By 1831 the business had changed from a grocery shop to manufacturing of drinking chocolate and cocoa 

John Cadbury converts from tea and coffee to selling chocolate. 

 

Mile Stones….  Stones….  2) First Factory: John Cadbury had a considerable flair for advertising and promotion.   An article “affording a most nutritious beverage for breakfast" br eakfast" announced his first advertisement in the Birmingham Gazette in March 1824. In 1831, John Cadbury rented a small factory laying the foundation for  for Cadbury chocolate business . 

 

Mile Stones….  Stones….  3) With Milk:

By 1842, John Cadbury was selling sixteen lines of drinking chocolate and cocoa in cake and powder forms

 

Mile Stones….  Stones….  4)The Quaker Influence: •

• • • • •

The Cadbury family were members of the Society of Quakers, (nonconformist religious groups) formed in the 17th century. century. Carried a campaigns aimed at ending poverty and deprivation Part of social and industrial society in Victorian Britain. By providing tea, coffee, cocoa and chocolate as an alternative to alcohol he felt he was helping to alleviate some of the alcolohol-related causes of poverty and deprivation amongst working people. He also incorporated some of these principles in his industrial relations philosophy. philosophy.

 

Mile Stones….  Stones….  5) Turning point in the mid-1850s, •Taxes

on imported cocoa beans were reduced by Government.

•

previously prohibitive chocolate products were now within the reach of the wider population. •Cadbury

Brothers received their first Royal Warrant on February 4,

1854 as “manufacturers of cocoa and chocolate to Queen Victoria. Victoria.” ”  •

The company continues to hold royal warrants of appointment.

 

Mile Stones….  Stones….  6) Sales and Marketing departments integration:

•During

the 1850s business began to decline

•Business

was going to dissolve. But then company 

management worked with a strategy. •Manufacturing department started working in collaboration with with sales and marketing department,  went on promoted their goods. • Due to their dedication, sheer hard work and improvements in the quality of Cadbury cocoa products, the business survived and prospered.

 

Mile Stones….  Stones….  7)Technological Advancements: •Cadbury

brothers took a momentous step in 1866 that revolutionized whole of the British cocoa business. •The

brothers introduced new process to their Bridge Street factory to purify the coca extracts. •Marketing campaign

'Absolutely pure...therefore Best‘ is 

launched •1870s,

Cadbury broke the monopoly which French producers in British Market.

 

Mission:: Mission Cadbury is committed to the long-term development of  the chocolate industry in Pakistan through: •Substantial

foreign capital infusion, • Category management • Local infrastructure and •Talent development.

 

Vision Vision:: Cadbury’s vision statement is:

'Working together to create brands, people love'. •Meet

the nutrition needs of consumers of all age groups from

infancy to old age •Deliver shareholders value through profitable long term growth

 

Core purpose : “Working “W orking better together to create brands people love.” 

Objective : “Grow

shareholder value…over the long term.” 

Strategy : “Create robust and sustainable regional positions in our  core categories of confectionery and beverages through organic growth, acquisition and disposal.” 

 

Corporate Social Responsibility Objective:

  Cadbury Schweppes is committed to growing responsibly. Beliefs are: 1. Respon Responsib sible le busi busines nesss ccome omess from from lis listen tening ing and lea learnin rningg 2. Having Having in pla place ce a cle clear ar CSR CSR vision vision and str strate ategy. gy.

3. Also Also comes comes from from h havi aving ng the p proce rocesse ssess and sys system temss to foll follow ow through and an embedded commitment c ommitment to living values.

 

Strategy  Strategy  The company strategy is to increase • Profitability  • strength and •  volume on a global basis in its two business streams:  beverages and confectionery a combination of  internal growth and ensure thethrough continuing strength and earning potential of the group’s brand.

 

Product line • Confectionary : Caramello Koala, Freddo,Bournvita • Cooking products: choc chips, cooking choc,flake

garnish • Boxed chocolates: favourite chocolates, milk tray 

chocolates, roses chocolates • Chocolates : fruit n nuts, crackle, silk, bournville , temptations, roast almond. • Gums Gums  : Stride, Trident, Chiclets, Dentyne, Bubblicious

 

 

Most Demanded Chocolates

The market major of Chocolates offers the following products in the market:1. Chocolates :- Cadbury dairy milk, perk, celebrations,

2. 3. 4. 5.

temptations, star, crackle,cadbury eclairs, gems, cadbury lite,many  fruit and nut and five cadbury heros and more Snacks :- cadbury bytes Beve Be vera rage gess :- Bournvita, cadbury delight Candy :- cadbury halls Gums :- Bubbaloo

 

Market Overview   • Cadbury is market leader in the confectionary 

products. They have big market in all around the  world. •  MARKET SIZE: It  represent 9% of the global market. • MARKET TRENDS: Brand Stretching, Inexpensive and Healthy Impact . • MARKET SHARES: Cadbury's controlling more than 67% of the market share worldwide.

 

  Experimental Marketing • Cadbury believes in innovation. • Innovation is a virtue of marketing strategy. Its

marketing strategy is such that it alone buildsbut a brand image not only through advertisements through performance. • The strategies are as follows: 1.  Cadbury uses a variety of advertisements with different  1. genres and themes to attract different differ ent age groups. Eg –   Animated ads, Melodious jingles etc.

 

2. Cadbury associates itself with emotions and sentiments of 

people through relationships of friendship and  brotherhood. 3. In order to capture the market particularly the youth segment the strategy adopted is to promote SPORTS by  encouraging events such as • Karate (whiz kid championship) • In 1980 cadbury bournvita was the official health drink for

the Indian team at the Moscow Olympics

 

5.

6.

Cadbury has not only restricted its market to child segment but through its innovativeness has captured every segment of the society Innovation in product range has been a major advancement by Cadbury in retaining its market share. Examples of marketing innovation by Cadbury – 

*Perk’s new range of ulta perk  *5 star’s new range of 5 star crunchy  *Gems new range of fruity gems 7.

 Print & poster campaigns

 

8.

9.

Attractive packaging has been a successful way of attracting customers to buy its products over other chocolates A huge art value is associated with Cadbury which in turn increases the acceptability in the market. it has roped in bollywood legend Amitabh Bachan and the ravishing Preity Zinta to endorse its products diary milk and perk respectively.

 

10.Extremely

catchy and well recognized tag lines and punch lines create strong brand value and awareness

forlines Cadbury. “Pappu pass ho gaya” , “Kuch metha ho jaye” The gives a distinct image of Cadbury. 11.Cadbury

caters to that segment of the society which cannot afford large sums of money. The marketing strategies adopted adopted here would be introduction of economy packs of all its products and advertising the

same.

 

12.The

most important marketing policy being, implemented during the festive season. The consumptions sweets is at itsmost zenith festive season.ofCadbury makes outduring of thisthe season by introducing gift boxes thus spreading joy.

 

Marketing vision 2008-11

Cadbury believes that its business still has significant untapped potential- in terms of growth as well as returns. Between 2008- 2011 cadbury intends to –  *rope in new brand ambassador during the festive season. *introducing a new season of quiz contest. *introducing new seasonal flavours such as hazelnut, fudge, butterscotch etc.

 

•  As a result of the campaign penetration of chocolates

increased faster in the last four years than it did in the decade before that! Frequency of consumption among adults grew by 16%. •  ‘Celebrating a happy  moment’ emerged as a need state

in four years and preference of Cadbury Dairy Milk for celebratory moments increased on an average by 34% across town classes.

 

Weaknesses   Weaknesses 1. Ge Geogr ograp aphi hicc con const strai raint ntss owing owing to tthe he m mul ulti tiple ple ffran ranch chis isee ee ownership of core brands such as Schweppes 2. La Larg rgee p port ortion ion of pop popul ulat ation ion su suff ffer erss ffrom rom 3. dia diabe bete tes, s, ch chole olest ster erol ol dis disord order erss et etcc 4. De Dent ntal al p pro robl blem emss as asso soci ciat ated ed wit with h 5. co cons nsum umpt ptio ion n of ch choc ocol olat ates es.. 6. Wea Weaker ker fina financi ncial al pos positio ition n ffoll ollowin owingg tthe he dem demerg erger, er, Dr pepper Snapple group. 7. Li Lim mit iteed p pro rodu ducct p por ortf tfol olio io..

 

Strengths   Strengths • • • • •

 Wide product range Good prices International business  Advertising Good availability 

•Large

teeming population okids and teenagers • Well established market

 

Threats • Unable to understand foreign customer

preference. • Social changes, rising obesity and consumers

obsession with calories counting. • Threat of entry due to the competition growing

through acquisition.

Rising of raw material cost.  

Opportunities in countries like Pakistan Innovative uncaptured chocolate market in Pakistan ( such as sugar free chocolate sector). • Increasing acceptance of Globalisation and better

relationship with foreign companies. • Enter in the new potential markets.

 

PEST ANALYSIS  • Political • Economical • Social • Technological

 

• In terms of political issues, France being an advanced

democratic country, specific risk is negligible.

• In terms of economic issues, it has fourth largest GDP in

the world.

• In term of social issues, Large number of occasion celebrations and festivals in which chocs are used as a

medium to convey happiness.

• In term of technological issues, Communication has improved as well as marketing the product through word

of mouth has now changed to advertising in magazines, newspapers, bill boards, television and even the internet.

 

Customer oriented • Cadbury operate in different markets and cultures

around the world and have many different consumers. • People love the taste, the quality and the value of  Cadbury’s products

 

•  As a result of the campaign penetration of 

chocolates fasterbefore in thethat! last Frequency  four years than it did increased in the decade of consumption among adults grew by 16%. •  ‘Celebrating a happy  moment’ emerged as a

need state in four years and preference of  Cadbury Dairy Milk for celebratory moments increased on an average by 34% across town classes.

 

Company Life Cycle

 

 Achievements: • In 2005, Cadbury Pakistan received the Global

 Award for highest Net Sales Value in emerging markets. • 2006 proved to be a yet another landmark year

for Cadbury Pakistan. Now the Cadbury  Company has significantly matured in Pakistani market, as most of its products have stable sales.

 

Perceptual Map:  Map:  High quality

Cadbury

Nestle

Low price

High price

Low quality

 

Perceptual Map: (continue -------)  -------) 

• People want high quality product in low price. • Perceptual map shows that what people perceive

about Cadbury’s products.

 

BCG Matrix 

  e    t   a   r    h    t   w   o   r    G   s   s   e

BCG Matrix

   i   n   s   u    B

Relative market share

 

• In the confectionery market, Cadbury’s global

market share has grown through acquisition and organic growth. • Cadbury focus on generating cash flow and

making efficient use of capital is also allowing it to make investments in new businesses and assets.

 

Positions in emerging markets

 

Competition   Competition

 

Global Confectionery Market •

 

Category Share 

 

Market share in the global confectionery market 

 

Conclusion •  would To reachhave the peak of achievement, the company  to stress on the growth of the

product. • Cadbury should also look into other countries like Asia Pacific in order to market its products globally. •  Another strategic plan would be a joint venture.

• globally, Needless heavy to say capital that in order and expenditure to market products have to  be sacrificed. 

 

LAST BUT NOT THE LEAST Cadbury needs to strengthen the brand name of  its products in order to survive in competitive  world!

 

Thank you