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 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

•It wasn’t until 1952 that it was used across major brands
1. Introduction
2. Success Story of Cadbury
3. Corporate objective of Cadbury Pakistan Limited
4. Product line of Cadbury in Pakistan
5. Market overview
6. Market Size
7. Market Trends
8. Market Shares
9. SWOT Analysis
10.PEST Analysis
11. Customers Audit
12.Perceptual Map
13.Company Life Cycle
14.Market Life Cycle
15. Boston Consulting Group Matrix
16.Conclusion
17. References
•Cadbury Limited is the confectionery division of
Cadbury Schweppes. It is a confectionary and
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. Britain and Ireland,

2. Middle East and Africa (MEA)
3. North America,
4. South America,
5. Europe,
6. Asia, and
7. Pacific
 Introduction (continue)

The group’s strategy is to increase:

1. Profitability
2. strength and
3. Volume

Chocolate confectionery is sold internationally

under Cadbury name and includes power brands
such as

1. Cadbury’s Dairy Milk

2. Cadbury’s Time Out
3. Picnic 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 has a manufacturing plant in Hub.
•It enjoys strong presence in the confectionery business with brands like
•Cadbury Dairy Milk,
•Chocki, Perk
•Éclairs and Soft mints.
According to Top Brands survey conducted by the FPCCI Cadbury
was declared the top confectionery brand 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….

1) Cadbury chocolate is born in 1824

Founder was John Cadbury in Bull Street 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….

2) First Factory:
John Cadbury had a considerable flair for advertising
and promotion.

An article “affording a most nutritious beverage for breakfast"

announced his first advertisement in the Birmingham Gazette in
March 1824.

In 1831, John Cadbury rented a small factory laying the

foundation for Cadbury chocolate business .
 Mile Stones….

3) With Milk:

By 1842, John Cadbury was selling

sixteen lines of drinking chocolate
and cocoa in cake and powder
forms
 Mile Stones….
4)The Quaker Influence:
• The Cadbury family were members of the Society of Quakers,
(nonconformist religious groups) formed in the 17th 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.
 Mile 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.”

• The company continues to hold royal warrants of appointment.

 Mile 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 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….
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:
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:
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 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. Responsible business comes from listening and learning
2. Having in place a clear CSR vision and strategy.
3. Also comes from having the processes and systems to follow
through and an embedded commitment to living values.
 Strategy

The company strategy is to increase

• Profitability
• strength and
• volume
on a global basis in its two business streams:
beverages and confectionery through a combination of
internal growth and ensure the 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 : 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,
temptations, five star, eclairs, gems, cadbury lite, fruit
and nut and cadbury crackle,cadbury heros and many
more
2. Snacks :- cadbury bytes
3. Beverages :- Bournvita, cadbury delight
4. Candy :- cadbury halls
5. 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 builds a brand image
not only through advertisements alone but through
performance.
• The strategies are as follows:-
1. Cadbury uses a variety of advertisements with different
genres and themes to attract different 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. Cadbury has not only restricted its market to child
segment but through its innovativeness has captured
every segment of the society
6. 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. Attractive packaging has been a successful way of
attracting customers to buy its products over other
chocolates
9. 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
for Cadbury.
The lines “Pappu pass ho gaya” , “Kuch metha ho jaye”
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 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 of sweets is at its zenith during the
festive season. Cadbury makes most out of this 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
1. Geographic constraints owing to the multiple franchisee
ownership of core brands such as Schweppes
2. Large portion of population suffers from
3. diabetes, cholesterol disorders etc
4. Dental problems associated with
5. consumption of chocolates.
6. Weaker financial position following the demerger, Dr
pepper Snapple group.
7. Limited product portfolio.
 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 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.
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:
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
Business Growth rate

BCG Matrix

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
 Global Confectionery Market
Category Share
•
Market share in the global
confectionery market
 Conclusion
• To reach the peak of achievement, the company
would have 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.
• Needless to say that in order to market products
globally, heavy capital and expenditure 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