CADBURY

LTD…
CADBURY WORLD WIDE
 Cadbury India is a fully owned subsidy of Kraft Foods Inc.

 Creates a global powerhouse in snacks, confectionery and quick

meals.

 Company with sales in approximately 160 countries & employs

approx 140,000 people.
SWEET PAST
Ever since the CADBURY factory was set up in India in 1947, Cadbury
chocolates have ruled the hearts of Indians with their fabulous taste.
Considering the penchant we Indians have for sweets, its not surprising
that these sweet, smooth, milky & irresistibly delicious chocolates are the
best childhood gift any Indian child could get.
Thank God for young JOHN CADBURY who ventured into the chocolate
business over 150 years age, way back in England, in 1824.
Long gone is the dry chocolate supplied by John Cadbury in his
Birmingham grocery store. Today more than 250 million bars of Dairy Milk
are produced & consumed every year.
MILESTONES
 Cadbury chocolate is born - JOHN CADBURY converts
from tea and coffee to selling chocolate.

 First Factory - About the year 1780, the first machine-made

chocolate is produced in BARCELONA.

 With Milk - After eight years of experimenting, the SWISS DANIEL

PETERS puts the first MILK CHOCOLATE on the market in 1875.

 Melting Sweetness - RODOLPHE LINDT of Berne produces

chocolate which melts on the tongue for the first time in the year 1879.
VALUES
 Working together to create brands people love“.

 The core purpose captures the spirit of what we are

trying to achieve as a business.

 To collaborate and work as teams to convert products

into brands.
PURPOSE
 Setting stretched financial objectives.

 Adopting Value Based Management for major strategic and operational

decisions and business systems.

 Creating an outstanding leadership capability within their

management.

 Sharpening their company culture to reflect accountability,

aggressiveness and adaptability.

 Aligning their management rewards structure with the interests of the

shareowners.
SWOT ANALYSIS
STRENGTHS
 Large teaming population of kids and teenagers.

 Well established market.

 Vast variety of products.

 Priced according to Indian mind set.

 Easy availability of cocoa in India.

SWOT ANALYSIS
WEAKNESS
 Large portion of population suffers from diabetes,
cholesterol disorders etc.

 Dental problems associated with consumption of

chocolates.
SWOT ANALYSIS
OPPURTUNITIES
 Innovative uncaptured chocolate market in India such as sugar
free chocolate sector.

 Large number of occasion celebrations and festivals in which

chocos are used as a medium to convey happiness.

 Increasing acceptance of Globalisation and better relationship

with foreign companies.
SWOT ANALYSIS
THREATS
 Cut throat competition from nestle amul and international choc
brands.

 Negative publicity and controversies.

 New entrance and individual players (rise in sale of homemade

chocolates)

 Preference and availability of other substitutes ( sweets and deserts).

PRODUCT LINE
The market major of Chocolates offers the following products in the
market:-

 Chocolates like Cadbury dairy milk, perk, celebrations, temptations, five star,
éclairs, gems, fruit & nut, Cadbury crackle and many more…..

 Snacks like Cadbury bytes

 Beverages like Bournvita, Cadbury delight

 Candy like Cadbury halls

 Gums like Bubbaloo

BRAND PORTFOLIO
 11 brands with more than $1 billion in revenue .

 70+ brands with more than $100 million in

revenue.

 40+ brands over 100 years old .

 80% revenue from #1 share positions.

TURNING POINT
 Worm controversy hit Cadbury in Oct 2003.
 Fungus layer on portions of its chocolates.
 A swarm of tiny white worms crawling out of the chocolate nuggets
 State Food Laboratory at the Public Health Institute said“ the
chocolates were insect-infested and unfit for eating’’.
 FDA began seizure of the chocolate not only from all outlet across
the state but also from the Talegaon Plant.
 FDA also ordered inspection of Stock at company’s Mumbai Plant.
 Peak Season Sale and outsourcing model affected due to
controversy.
EFFECTS
 The heat of negative publicity melted Cadbury's sales by 30 per
cent, at a time when it sees a festive spike of 15 percent.
 Net profit in 2003 dipped 37 per cent to Rs 45.6 crore as
compared to a 21 per cent increase the previous year.
 Retailer stocking and display dropped, employee morale especially
that of the sales team was shaken.
 The Company had to shelve its plans of becoming a major sourcing
hub for British Chocolates and beverages giant Cadbury
Schweppes.
 The largest impact on sales has been seen in Mumbai, Pune and
Nagpur in Maharashtra, Cochin in Kerala, Bangalore and
Hyderabad.
REASONS
 Aggressive marketing by Company while neglecting on the
Quality of Retailers

 Lack of efforts to Educate Retailers and ensure adequate

hygienic storage conditions at retail outlets

 Poor quality in packaging of product

 Issues related to transportation of product

 No Norms in terms of Storage for Chocolates

TWO PHASE STRATEGY
Phase 1: Presenting Cadbury’s view
(October-December 2003)
• The agency set up a media desk to ensure
that no media query went unanswered.
• The Cadbury’s Managing Director addressed
consumer concerns
• Project Vishwas (Trust)

• Editorial Outreach Program with 31 media

editors across affected cities
TWO PHASE STRATEGY
Phase 2: Packaging Change and Communication
(January – March 2004)
Packaging:
• New ‘purity sealed’ packaging ( Jan 2004) -
investment of Rs 15 crore on imported machinery
• Metallic Poly-Flow was costlier by 10-15% but
Cadbury didn’t hike the Pack Price
• Investment of millions of Dollars leads to achieve a
production process in 8 weeks, that would normally
take 6 months.
TWO PHASE STRATEGY
Phase 2: Packaging Change and Communication
(January – March 2004)
Advertisement Weapon:
• Brand Ambassador to
reinforce the credibility

• Amitabh Bachchan, a
legendary Indian film star, was
chosen, as he embodied the
values of Cadbury as a brand.
TWO PHASE STRATEGY
• Media Conference to compare the old
and new packs with an innovative
comparison kit
• A VIDEO news release with
packaging shots and factory shots was
given to television channels
• Audio-Visual ... series of sales
conferences to enthuse and reassure “ Consumers respected the
salespersons brand for not skirting the issue,
• The announcement of the new pack but acknowledging it and
--a testimonial advertisement on TV giving a solution to the problem
called ‘Sincerity’. ’’
CAIMPAIGN RESULTS &
MEASUREMENT
• Media Coverage
– all Media reports carried Cadbury’s point of view
– 378 clips in over 11 languages covering the new packaging and its
benefits.
• Sales
– Sales declined drastically between week 1 to week 10 of the crisis
– Within 8 weeks of introduction of new packaging and communication
sales volume reached to the pre-incident levels.
• Image
– Upward movement in ratings amongst consumer
– Media’s positive coverage and the trade’s positive pre-disposition
played a huge part in helping in Cadbury regain its reputation.
CSR @ CADBURY

“ Commitment
to the
environment ‘’

Dam at Bangalore Factory

CSR - COUNTINUED
 Non-formal school set up by
Cadbury for children of migrant
workers in Baddi.

 Cadbury in tie-up with Bharti -

Walmart to support education
needs of underprivileged
children.
AWARDS
 Ranked 7th Great Place to Work in India No. 1 FMCG
Company.

 Bournvita won the Emmvie Gold for the Best Media

Innovation - TV.

 Cadbury dairy milk & bournvita crowned as consumer super

brands.

 Ranked among India's most respected companies.

CONCLUSION
Factors that led to Cadbury’s sweet recovery from crisis-

 Brand equity
 Customer’s perceptions
 Media coverage
 New product introduction

“An optimist sees an opportunity in every difficulty where

as a pessimist sees a difficulty in every opportunity”-
Winston Churchill