by raghavendra mishra marketing mix cadbury. introduction cadbury is a leading global confectionery...
TRANSCRIPT
BYRAGHAVENDRA MISHRA
MARKETING MIXCADBURY
INTRODUCTION
bull CADBURY IS A LEADING GLOBAL CONFECTIONERY COMPANY WITH AN OUTSTANDING PORTFOLIO OF CHOCOLATE GUM AND CANDY BRANDS IT EMPLOY AROUND 50000 PEOPLE AND HAVE DIRECT OPERATIONS IN OVER 60 COUNTRIES SELLING PRODUCTS IN ALMOST EVERY COUNTRY AROUND THE WORLD CADBURYIT IS A BRITISH CONFECTIONERY AND BEVERAGE COMPANY WITH ITS HEADQUARTERS IN LONDON UNITED KINGDOM
HISTORY
bull Cadbury is a very old trusted name It all started in Birmingham in England when John
Cadbury started his family grocery shop with side business of cocoa and chocolate products in around 1824 His two sons Richard and George expanded their family business of cocoa and chocolate Bournville a town near Birmingham was build by them as a part of expansion of their business
MARKETING OBJECTIVES
bull GROW SHAREHOLDER VALUEhellipOVER THE LONG TERM
bull CADBURY IN EVERY POCKETbull MARKETING STRATEGY IS AIMED AT
ACHIEVING THIS VISION BY GROWING THE MARKET BY APPROPRIATE PRICING STRATEGY THAT WILL CREATE A MASS MARKET AND TO HAVE OFFERINGS IN EVERY CATEGORY TO WIDEN THE MARKET
TARGET MARKET
bull THE INDIAN CHOCOLATE MARKET IS VALUED AT RS 650 CRORES (IE RS 650 BILLION) A YEAR THE INDIAN CHOCOLATE BAZAAR IS ESTIMATED TO BE IN THE REGION OF 22000-24000 TONNES PER ANNUM AND IS VALUED IN EXCESS OF US$ 80 MILLION
bull INDIAS METROS PROVING TO BE THE BIG DRAW CLOCKING PENETRATION IN EXCESS OF 15 PERCENT NEXT COMES THE RELATIVELY SMALLER CITIESTOWNS WHERE CONSUMPTION LAGS AT ABOUT 8 PERCENT CHOCOLATES ARE A LUXURY IN THE RURAL SEGMENT WHICH EXPLAINS THE MERE 2 PERCENT PENETRATION IN VILLAGES THE MARKET PRESENTLY HAS CLOSE TO 60MN CONSUMERS AND THEY ARE MAINLY LOCATED IN THE URBAN AREAS
MARKET SEGMENTATION
bull MARKET SEGMENTATION IS THE PROCESS IN MARKETING OF GROUPING A MARKET (IE CUSTOMERS) INTO SMALLER SUBGROUPS THESE MARKETS ARE OFTEN TERMED NICHE MARKETS OR SPECIALTY MARKETS
bull THE PURPOSE OF SEGMENTATION IS TO IDENTIFY AND TARGET PRIME CUSTOMER GROUPS (EG THE 20 THAT ACCOUNT FOR 80 OF YOUR SALES) SO THAT YOU GET THE MAXIMUM RETURN FROM A LIMITED MARKETING BUDGET
GEOGRAPHIC SEGMENTATION
bull THE MARKET PRESENTLY HAS CLOSE TO 60MN CONSUMERS AND THEY ARE MAINLY LOCATED IN THE
bull URBAN AREAS GROWTH WILL MAINLY COME THROUGH AN INCREASE IN PENETRATION AS INCOME LEVELS IMPROVE
bull HOWEVER ALMOST ALL OF THIS CONSUMPTION IS IN THE CITIES AND RURAL INDIA IS NEARLY lsquoCHOCOLATE-FREErsquo BUT THE FACT IS THAT THREE QUARTERS OF INDIANS LIVE IN RURAL AREAS ldquoAVERAGE SUMMERTIME TEMPERATURES REACH 43 DEGREES CELSIUS IN INDIA CHOCOLATE MELTS AT BODY TEMPERATURE OF 36 DEGREESrdquo
DEMOGRAPHIC SEGMENTATION
AGE-
bull CHILDREN - 55
bull ADULTS - 12
bull YOUNG ADULTS - 33
bull INCOME LEVEL- IN THE MIDDLE AND HIGHER INCOME GROUPS
MARKETING MIX
bull THE TOOLS AVAILABLE TO A BUSINESS TO GAIN THE REACTION IT IS SEEKING FROM ITS TARGET MARKET IN RELATION TO ITS MARKETING OBJECTIVES IT IS THE GENERALLY ACCEPTED AS THE USE AND SPECIFICATION OF THE ldquoFOUR PrsquoSrdquo DESCRIBING THE STRATEGIC POSITION OF A PRODUCT IN THE MARKETPLACE
bull PRODUCTbull PRICEbull PLACEbull PROMOTION
PRODUCT
bull PRODUCT VARIANTS bull CURRENTLY CADBURY INDIA OPERATES IN
FOUR CATEGORIES VIZ CHOCOLATE CONFECTIONERY MILK FOOD DRINKS CANDY AND GUM CATEGORY
bull CADBURY DAIRY MILK 5 STAR PERK EacuteCLAIRS AND CELEBRATIONS
bull CANDY CATEGORY HALLSbull BUBBLE GUM BRAND BUBBALOObull BOURNVITA - THE LEADING MALTED FOOD
DRINK (MFD)
PRODUCT INNOVATIONS bull 1048766 5 STAR
bull CONSUMER FEEDBACK SUGGESTED THAT THE OLD 5 STAR WAS TOO CHEWY AND PEOPLE COMPLAINED OF IT STICKING TO THEIR TEETH IT WAS MADE SOFTER AND MELTED EASILY IN THE MOUTH amp INTRODUCED AS 5 STAR CRUNCHY
bull 1048766 PERK
bull PERK WAS MADE MUCH LIGHTER AND THE SIZE OF THE BAR INCREASED TO MATCH NESTLErsquoS MUNCH PERK HAD BEEN UNDER FIRE FROM NESTLErsquoS DEADLY DUO OF KITKAT AND MUNCH BUT AFTER THE RELAUNCH ITS MARKETSHARE IS TWO PER CENT MORE THAN KITKATrsquoS AND THE FIVE-YEAR-OLD BRAND IS NOW ALMOST AS BIG AS THE DECADES-OLD 5 STAR IN SIZE BOTH IN THE REGION OF RS 50-55 CRORE
bull 1048766 HEROES
bull PACKAGING INNOVATION HAS PLAYED A VITAL ROLE IN REVAMPING OF VARIOUS CADBURYrsquoS BRANDSHEROES BRAND IS SIMPLY A MULTI-PACK WITH MINIATURES OF ALL ITS MOST POPULAR BRANDS IN A SINGLEOUTER CASE
PACKAGINGbull
THE PACKAGING WAS CHANGED TO INCLUDE A SEALED PLASTIC WRAPPER INSIDE THE OUTSIDE FOIL CADBURYrsquoS LAUNCHED A NEW PURITY-SEALED PACKAGING FOR ITS FLAGSHIP PRODUCT CADBURY DAIRY MILK OVER THE NEXT FEW WEEKS CADBURY WILL WORK TOWARDS INTRODUCING EITHER A HEATSEALED OR A FLOW-PACK PACKAGING THAT OFFERS A HIGH LEVEL OF RESISTANCE TO INFESTATION FROM
bull IMPROPER STORAGE CADBURY INVESTED NEARLY RS 25 CRORE (RS 250 MILLION) THIS YEAR ON NEW MACHINERY FOR THE IMPROVED PACKAGING
PRICE
bull THE RS 5 PRICE POINT ACCOUNTS FOR MORE THAN HALF OF ALL CHOCOLATE SALES
bull TODAY CADBURY HAS FOUR PRODUCTS AT THIS PRICE POINT CDM PERK 5 STAR AND GEMS mdash AND THE FIVE-RUPEE CDM BAR IS ITS SINGLE LARGEST-SELLING SKU
bull ldquoTHIS IS A POTENT PRICE POINT IN INDIA BECAUSE THE AVERAGE PURCHASING POWER IS ABYSMALLY LOWrdquo IS WHAT INDUSTRY ANALYST HAVE TO SAY
VOLUME LED GROWTH STRATEGY
bull CADBURY HAS FOLLOWED A WELL-PLANNED STRATEGY OF FUELLING VOLUME GROWTH BY INTRODUCING SMALLER UNIT PACKS AT LOWER PRICE POINTS SIMULTANEOUSLY THE COMPANY SEEMS TO HAVE ASTUTELY JUGGLED WITH THE LARGER PACK SIZES AND RAISED PRICES TO A DEGREE HIGHER THAN WHAT APPEARS AT FACE
HIRES AT KEARNEY TO CURB COSTS
bull CADBURY INDIA APPOINTED MANAGEMENT CONSULTANCY FIRM AT KEARNEY TO DRAW UP A STRATEGY TO CONTROL COSTS IN SEVERAL AREAS INCLUDING SOURCING OF RAW MATERIALS AND PACKAGING
bull THE CONSULTANCY FIRM WILL ALSO LOOK AT THE SOURCING OF DIRECT AND INDIRECT MATERIALS LIKE RENEGOTIATING WITH SUPPLIERS FOR LONGER TERM CONTRACTS AND VENDOR MANAGEMENT OTHER COSTS (INDIRECT EXPENSES) LIKE TRAVEL COSTS AND HOTELS WERE ALSO BEING STUDIED
EARNINGS SENSITIVITY FACTORS
bull COCOA BEAN PRICES DOMESTIC AS WELL AS INTERNATIONAL PRICES OF KEY RAW MATERIAL - COCOA HAVE SIGNIFICANT IMPACT ON MARGINS
bull EXCISE DUTIES CHANGES IN EXCISE LEVIED ON MALT AND CHOCOLATE INFLUENCES END PRODUCT PRICES AND THEREBY VOLUME GROWTH AS WELL AS MARGINS
bull CHANGES IN CUSTOM DUTIES AND FOREIGN EXCHANGE FLUCTUATION AS 20 OF RAW MATERIAL IS IMPORTED CHANGES IN CUSTOM DUTIES amp FOREIGN EXCHANGE FLUCTUATIONS HAVE SIGNIFICANT IMPACT ON THE FINAL COST OF THE PRODUCT
bull COMPETITION FROM MNCS LIKE NESTLE AS WELL AS IMPORTED BRANDS INCREASING COMPETITION PUTS PRESSURE ON ADVERTISEMENT BUDGET AND MARGINS HOWEVER ON THE POSITIVE SIDE IT HELPS IN EXPANDING THE MARKET
PLACE
bull PLANT LOCATIONSbull IN INDIA CADBURY BEGAN ITS OPERATIONS IN
1948 BY IMPORTING CHOCOLATES AFTER 60 YEARS OF EXISTENCE IT TODAY HAS FIVE COMPANY-OWNED MANUFACTURING FACILITIES AT THANE INDURI (PUNE) AND MALANPUR (GWALIOR) BANGALORE AND BADDI (HIMACHAL PRADESH) AND 4 SALES OFFICES (NEW DELHI MUMBAI KOLKOTA AND CHENNAI) THE CORPORATE OFFICE IS IN MUMBAITHESE FACTORIES CHURN OUT CLOSE TO 8000 TONNES OF CHOCOLATE ANNUALLY
DISTRIBUTIONbull CHOCOLATE NEEDS TO BE DISTRIBUTED DIRECTLY UNLIKE
OTHER FMCG PRODUCTS LIKE SOAPS ANDbull DETERGENTS WHICH CAN BE SOLD THROUGH A
WHOLESALE NETWORK 90 OF CHOCOLATE PRODUCTS ARE SOLD
bull DIRECTLY TO RETAILERS bull CADBURYS DISTRIBUTION NETWORK USED TO
ENCOMPASSES 2100 DISTRIBUTORS AND 450000 RETAILERS bull TO AVOID CANNIBALIZATION OF ITS HIGHER PRICED
PRODUCTS FROM LOWER PRICED ONES CADBURY ISbull SETTING UP TWO SEPARATE DISTRIBUTION CHANNELS ndash
ONE FOR CORE BUSINESS amp OTHER FOR MASS MARKETS
NATURE OF RETAIL OUTLET
bull CHOCOLATES ARE PRIMARILY SOLD THROUGH KIRANA STORES GIFT STORES MEDICAL STORES CANTEENS
bull PAN-BIDI STORES BAKERIES SWEET SHOPS ETC THIS IS TRUE FOR CHOCOLATES ALSO THE SPACE ALLOCATED FOR
bull THE CHOCOLATES WAS LESS WHEN COMPARED TO THE TOTAL AREA OF THE SHOP OF THE SPACE ALLOCATED FOR
bull CHOCOLATES CADBURY BRANDS OCCUPIED MORE THAN NESTLE BRANDS
PROMOTIONbull ADVERTISEMENTSbull THE ADVERTISEMENT AIMED AT CONVEYING THE IDEA THAT NO
SPECIFIC OCCASION IS REQUIRED FOR CONSUMING CDM
bull CELEBRITIES ENDORSEMENTS
bull CADBURY ROPED IN PREITY ZINTA FOR ITS PERK BRAND PREITY ZINTArsquoS ANGELIC DIMPLES LAID THE
bull FOUNDATION FOR WHAT WOULD BECOME THE INDIAN TEENAGERrsquoS FAVORITE SNACK AFTER THIS CAMPAIGN
bull PERKrsquoS SALE SURGED
bull THE BIG lsquoBrsquo FACTORbull THE BIG FACTOR THAT HAS PUSHED UP CDM SALES IS THE
AMITABH BACHCHAN CAMPAIGN CADBURY APPOINTED AMITABH BACHCHAN AS ITS BRAND AMBASSADOR
CHOCOLATE ADS SHIFT FOCUS FROM KIDS TO YOUTH
bull INDIAN CHOCOLATE MARKET IS ALMOST TOTALLY DEPENDED ON PURCHASES OF KIDS
bull WHILE CADBURY IS TRYING TO SELL INDULGENCE TO ADULTS KIT KAT IS SELLING RITUALISTIC BREAK TO
bull TEENAGERS YOUNG ADULTS THIS IS REFLECTED IN THE CHANGING ADVERTISING PATTERNS ACROSS DIFFERENT
bull CHANNELS
CONCLUSION WHEN PRICED AT EVEN RS 2500KG WHILE THERE ARE PLACES IN
INDIA WHERE PEOPLE HAVE NEVER EVEN TASTED CHOCOLATES ONCEUNDERSTANDING THE CONSUMER DEMANDS AND MAINTAINING THE QUALITY WILL BE ESSENTIALCOMPANIES WILL HAVE TO KEEP THEMSELVES ABREAST WITH THE DEVELOPMENTS IN OTHER PARTS OF THE WORLDPRICING IS THE KEY FOR COMPANIES TO MAKE THEIR PRODUCT REACH CONSUMERSrsquo POCKETS RIGHTPRICING WILL MAKE OR BREAK THE PRODUCT SUCCESS ECONOMICAL DISTRIBUTION OF THE PRODUCTS WILLALSO BE EQUALLY IMPORTANTTHE COMPANIESrsquo STRATEGIES SHOULD FOCUS ON DRIVING SALES THROUGH A RIGHT PRODUCT MIXEFFICIENT MATERIALS PROCUREMENT REDUCED WASTAGES INCREASED FACTORY EFFICIENCIES AND IMPROVED SUPPLY CHAIN MANAGEMENTTHERErsquoS AN IMMENSE SCOPE FOR GROWTH OF CHOCOLATE INDUSTRY IN INDIA - GEOGRAPHICALLY AS WELLAS IN THE PRODUCT OFFERING
BIBLIOGRAPHY
bull WWWCADBURYCOUKbull WWWCHOCOLATEREVIEWCOUKbull WWW CADBURYS CHWEPPESCOMbull WWWWIKIPEDIAORGbull WWWCADBURYCOMbull WWWOPPAPERSCOM REFERENCES-bull PHILIP KOTLER
- BY RAGHAVENDRA MISHRA
- INTRODUCTION
- HISTORY
- MARKETING OBJECTIVES
- TARGET MARKET
- MARKET SEGMENTATION
- GEOGRAPHIC SEGMENTATION
- DEMOGRAPHIC SEGMENTATION
- MARKETING MIX
- PRODUCT
- PRODUCT INNOVATIONS
- PACKAGING
- PRICE
- VOLUME LED GROWTH STRATEGY
- HIRES AT KEARNEY TO CURB COSTS
- EARNINGS SENSITIVITY FACTORS
- PLACE
- DISTRIBUTION
- NATURE OF RETAIL OUTLET
- PROMOTION
- CHOCOLATE ADS SHIFT FOCUS FROM KIDS TO YOUTH
- CONCLUSION
- BIBLIOGRAPHY
-
INTRODUCTION
bull CADBURY IS A LEADING GLOBAL CONFECTIONERY COMPANY WITH AN OUTSTANDING PORTFOLIO OF CHOCOLATE GUM AND CANDY BRANDS IT EMPLOY AROUND 50000 PEOPLE AND HAVE DIRECT OPERATIONS IN OVER 60 COUNTRIES SELLING PRODUCTS IN ALMOST EVERY COUNTRY AROUND THE WORLD CADBURYIT IS A BRITISH CONFECTIONERY AND BEVERAGE COMPANY WITH ITS HEADQUARTERS IN LONDON UNITED KINGDOM
HISTORY
bull Cadbury is a very old trusted name It all started in Birmingham in England when John
Cadbury started his family grocery shop with side business of cocoa and chocolate products in around 1824 His two sons Richard and George expanded their family business of cocoa and chocolate Bournville a town near Birmingham was build by them as a part of expansion of their business
MARKETING OBJECTIVES
bull GROW SHAREHOLDER VALUEhellipOVER THE LONG TERM
bull CADBURY IN EVERY POCKETbull MARKETING STRATEGY IS AIMED AT
ACHIEVING THIS VISION BY GROWING THE MARKET BY APPROPRIATE PRICING STRATEGY THAT WILL CREATE A MASS MARKET AND TO HAVE OFFERINGS IN EVERY CATEGORY TO WIDEN THE MARKET
TARGET MARKET
bull THE INDIAN CHOCOLATE MARKET IS VALUED AT RS 650 CRORES (IE RS 650 BILLION) A YEAR THE INDIAN CHOCOLATE BAZAAR IS ESTIMATED TO BE IN THE REGION OF 22000-24000 TONNES PER ANNUM AND IS VALUED IN EXCESS OF US$ 80 MILLION
bull INDIAS METROS PROVING TO BE THE BIG DRAW CLOCKING PENETRATION IN EXCESS OF 15 PERCENT NEXT COMES THE RELATIVELY SMALLER CITIESTOWNS WHERE CONSUMPTION LAGS AT ABOUT 8 PERCENT CHOCOLATES ARE A LUXURY IN THE RURAL SEGMENT WHICH EXPLAINS THE MERE 2 PERCENT PENETRATION IN VILLAGES THE MARKET PRESENTLY HAS CLOSE TO 60MN CONSUMERS AND THEY ARE MAINLY LOCATED IN THE URBAN AREAS
MARKET SEGMENTATION
bull MARKET SEGMENTATION IS THE PROCESS IN MARKETING OF GROUPING A MARKET (IE CUSTOMERS) INTO SMALLER SUBGROUPS THESE MARKETS ARE OFTEN TERMED NICHE MARKETS OR SPECIALTY MARKETS
bull THE PURPOSE OF SEGMENTATION IS TO IDENTIFY AND TARGET PRIME CUSTOMER GROUPS (EG THE 20 THAT ACCOUNT FOR 80 OF YOUR SALES) SO THAT YOU GET THE MAXIMUM RETURN FROM A LIMITED MARKETING BUDGET
GEOGRAPHIC SEGMENTATION
bull THE MARKET PRESENTLY HAS CLOSE TO 60MN CONSUMERS AND THEY ARE MAINLY LOCATED IN THE
bull URBAN AREAS GROWTH WILL MAINLY COME THROUGH AN INCREASE IN PENETRATION AS INCOME LEVELS IMPROVE
bull HOWEVER ALMOST ALL OF THIS CONSUMPTION IS IN THE CITIES AND RURAL INDIA IS NEARLY lsquoCHOCOLATE-FREErsquo BUT THE FACT IS THAT THREE QUARTERS OF INDIANS LIVE IN RURAL AREAS ldquoAVERAGE SUMMERTIME TEMPERATURES REACH 43 DEGREES CELSIUS IN INDIA CHOCOLATE MELTS AT BODY TEMPERATURE OF 36 DEGREESrdquo
DEMOGRAPHIC SEGMENTATION
AGE-
bull CHILDREN - 55
bull ADULTS - 12
bull YOUNG ADULTS - 33
bull INCOME LEVEL- IN THE MIDDLE AND HIGHER INCOME GROUPS
MARKETING MIX
bull THE TOOLS AVAILABLE TO A BUSINESS TO GAIN THE REACTION IT IS SEEKING FROM ITS TARGET MARKET IN RELATION TO ITS MARKETING OBJECTIVES IT IS THE GENERALLY ACCEPTED AS THE USE AND SPECIFICATION OF THE ldquoFOUR PrsquoSrdquo DESCRIBING THE STRATEGIC POSITION OF A PRODUCT IN THE MARKETPLACE
bull PRODUCTbull PRICEbull PLACEbull PROMOTION
PRODUCT
bull PRODUCT VARIANTS bull CURRENTLY CADBURY INDIA OPERATES IN
FOUR CATEGORIES VIZ CHOCOLATE CONFECTIONERY MILK FOOD DRINKS CANDY AND GUM CATEGORY
bull CADBURY DAIRY MILK 5 STAR PERK EacuteCLAIRS AND CELEBRATIONS
bull CANDY CATEGORY HALLSbull BUBBLE GUM BRAND BUBBALOObull BOURNVITA - THE LEADING MALTED FOOD
DRINK (MFD)
PRODUCT INNOVATIONS bull 1048766 5 STAR
bull CONSUMER FEEDBACK SUGGESTED THAT THE OLD 5 STAR WAS TOO CHEWY AND PEOPLE COMPLAINED OF IT STICKING TO THEIR TEETH IT WAS MADE SOFTER AND MELTED EASILY IN THE MOUTH amp INTRODUCED AS 5 STAR CRUNCHY
bull 1048766 PERK
bull PERK WAS MADE MUCH LIGHTER AND THE SIZE OF THE BAR INCREASED TO MATCH NESTLErsquoS MUNCH PERK HAD BEEN UNDER FIRE FROM NESTLErsquoS DEADLY DUO OF KITKAT AND MUNCH BUT AFTER THE RELAUNCH ITS MARKETSHARE IS TWO PER CENT MORE THAN KITKATrsquoS AND THE FIVE-YEAR-OLD BRAND IS NOW ALMOST AS BIG AS THE DECADES-OLD 5 STAR IN SIZE BOTH IN THE REGION OF RS 50-55 CRORE
bull 1048766 HEROES
bull PACKAGING INNOVATION HAS PLAYED A VITAL ROLE IN REVAMPING OF VARIOUS CADBURYrsquoS BRANDSHEROES BRAND IS SIMPLY A MULTI-PACK WITH MINIATURES OF ALL ITS MOST POPULAR BRANDS IN A SINGLEOUTER CASE
PACKAGINGbull
THE PACKAGING WAS CHANGED TO INCLUDE A SEALED PLASTIC WRAPPER INSIDE THE OUTSIDE FOIL CADBURYrsquoS LAUNCHED A NEW PURITY-SEALED PACKAGING FOR ITS FLAGSHIP PRODUCT CADBURY DAIRY MILK OVER THE NEXT FEW WEEKS CADBURY WILL WORK TOWARDS INTRODUCING EITHER A HEATSEALED OR A FLOW-PACK PACKAGING THAT OFFERS A HIGH LEVEL OF RESISTANCE TO INFESTATION FROM
bull IMPROPER STORAGE CADBURY INVESTED NEARLY RS 25 CRORE (RS 250 MILLION) THIS YEAR ON NEW MACHINERY FOR THE IMPROVED PACKAGING
PRICE
bull THE RS 5 PRICE POINT ACCOUNTS FOR MORE THAN HALF OF ALL CHOCOLATE SALES
bull TODAY CADBURY HAS FOUR PRODUCTS AT THIS PRICE POINT CDM PERK 5 STAR AND GEMS mdash AND THE FIVE-RUPEE CDM BAR IS ITS SINGLE LARGEST-SELLING SKU
bull ldquoTHIS IS A POTENT PRICE POINT IN INDIA BECAUSE THE AVERAGE PURCHASING POWER IS ABYSMALLY LOWrdquo IS WHAT INDUSTRY ANALYST HAVE TO SAY
VOLUME LED GROWTH STRATEGY
bull CADBURY HAS FOLLOWED A WELL-PLANNED STRATEGY OF FUELLING VOLUME GROWTH BY INTRODUCING SMALLER UNIT PACKS AT LOWER PRICE POINTS SIMULTANEOUSLY THE COMPANY SEEMS TO HAVE ASTUTELY JUGGLED WITH THE LARGER PACK SIZES AND RAISED PRICES TO A DEGREE HIGHER THAN WHAT APPEARS AT FACE
HIRES AT KEARNEY TO CURB COSTS
bull CADBURY INDIA APPOINTED MANAGEMENT CONSULTANCY FIRM AT KEARNEY TO DRAW UP A STRATEGY TO CONTROL COSTS IN SEVERAL AREAS INCLUDING SOURCING OF RAW MATERIALS AND PACKAGING
bull THE CONSULTANCY FIRM WILL ALSO LOOK AT THE SOURCING OF DIRECT AND INDIRECT MATERIALS LIKE RENEGOTIATING WITH SUPPLIERS FOR LONGER TERM CONTRACTS AND VENDOR MANAGEMENT OTHER COSTS (INDIRECT EXPENSES) LIKE TRAVEL COSTS AND HOTELS WERE ALSO BEING STUDIED
EARNINGS SENSITIVITY FACTORS
bull COCOA BEAN PRICES DOMESTIC AS WELL AS INTERNATIONAL PRICES OF KEY RAW MATERIAL - COCOA HAVE SIGNIFICANT IMPACT ON MARGINS
bull EXCISE DUTIES CHANGES IN EXCISE LEVIED ON MALT AND CHOCOLATE INFLUENCES END PRODUCT PRICES AND THEREBY VOLUME GROWTH AS WELL AS MARGINS
bull CHANGES IN CUSTOM DUTIES AND FOREIGN EXCHANGE FLUCTUATION AS 20 OF RAW MATERIAL IS IMPORTED CHANGES IN CUSTOM DUTIES amp FOREIGN EXCHANGE FLUCTUATIONS HAVE SIGNIFICANT IMPACT ON THE FINAL COST OF THE PRODUCT
bull COMPETITION FROM MNCS LIKE NESTLE AS WELL AS IMPORTED BRANDS INCREASING COMPETITION PUTS PRESSURE ON ADVERTISEMENT BUDGET AND MARGINS HOWEVER ON THE POSITIVE SIDE IT HELPS IN EXPANDING THE MARKET
PLACE
bull PLANT LOCATIONSbull IN INDIA CADBURY BEGAN ITS OPERATIONS IN
1948 BY IMPORTING CHOCOLATES AFTER 60 YEARS OF EXISTENCE IT TODAY HAS FIVE COMPANY-OWNED MANUFACTURING FACILITIES AT THANE INDURI (PUNE) AND MALANPUR (GWALIOR) BANGALORE AND BADDI (HIMACHAL PRADESH) AND 4 SALES OFFICES (NEW DELHI MUMBAI KOLKOTA AND CHENNAI) THE CORPORATE OFFICE IS IN MUMBAITHESE FACTORIES CHURN OUT CLOSE TO 8000 TONNES OF CHOCOLATE ANNUALLY
DISTRIBUTIONbull CHOCOLATE NEEDS TO BE DISTRIBUTED DIRECTLY UNLIKE
OTHER FMCG PRODUCTS LIKE SOAPS ANDbull DETERGENTS WHICH CAN BE SOLD THROUGH A
WHOLESALE NETWORK 90 OF CHOCOLATE PRODUCTS ARE SOLD
bull DIRECTLY TO RETAILERS bull CADBURYS DISTRIBUTION NETWORK USED TO
ENCOMPASSES 2100 DISTRIBUTORS AND 450000 RETAILERS bull TO AVOID CANNIBALIZATION OF ITS HIGHER PRICED
PRODUCTS FROM LOWER PRICED ONES CADBURY ISbull SETTING UP TWO SEPARATE DISTRIBUTION CHANNELS ndash
ONE FOR CORE BUSINESS amp OTHER FOR MASS MARKETS
NATURE OF RETAIL OUTLET
bull CHOCOLATES ARE PRIMARILY SOLD THROUGH KIRANA STORES GIFT STORES MEDICAL STORES CANTEENS
bull PAN-BIDI STORES BAKERIES SWEET SHOPS ETC THIS IS TRUE FOR CHOCOLATES ALSO THE SPACE ALLOCATED FOR
bull THE CHOCOLATES WAS LESS WHEN COMPARED TO THE TOTAL AREA OF THE SHOP OF THE SPACE ALLOCATED FOR
bull CHOCOLATES CADBURY BRANDS OCCUPIED MORE THAN NESTLE BRANDS
PROMOTIONbull ADVERTISEMENTSbull THE ADVERTISEMENT AIMED AT CONVEYING THE IDEA THAT NO
SPECIFIC OCCASION IS REQUIRED FOR CONSUMING CDM
bull CELEBRITIES ENDORSEMENTS
bull CADBURY ROPED IN PREITY ZINTA FOR ITS PERK BRAND PREITY ZINTArsquoS ANGELIC DIMPLES LAID THE
bull FOUNDATION FOR WHAT WOULD BECOME THE INDIAN TEENAGERrsquoS FAVORITE SNACK AFTER THIS CAMPAIGN
bull PERKrsquoS SALE SURGED
bull THE BIG lsquoBrsquo FACTORbull THE BIG FACTOR THAT HAS PUSHED UP CDM SALES IS THE
AMITABH BACHCHAN CAMPAIGN CADBURY APPOINTED AMITABH BACHCHAN AS ITS BRAND AMBASSADOR
CHOCOLATE ADS SHIFT FOCUS FROM KIDS TO YOUTH
bull INDIAN CHOCOLATE MARKET IS ALMOST TOTALLY DEPENDED ON PURCHASES OF KIDS
bull WHILE CADBURY IS TRYING TO SELL INDULGENCE TO ADULTS KIT KAT IS SELLING RITUALISTIC BREAK TO
bull TEENAGERS YOUNG ADULTS THIS IS REFLECTED IN THE CHANGING ADVERTISING PATTERNS ACROSS DIFFERENT
bull CHANNELS
CONCLUSION WHEN PRICED AT EVEN RS 2500KG WHILE THERE ARE PLACES IN
INDIA WHERE PEOPLE HAVE NEVER EVEN TASTED CHOCOLATES ONCEUNDERSTANDING THE CONSUMER DEMANDS AND MAINTAINING THE QUALITY WILL BE ESSENTIALCOMPANIES WILL HAVE TO KEEP THEMSELVES ABREAST WITH THE DEVELOPMENTS IN OTHER PARTS OF THE WORLDPRICING IS THE KEY FOR COMPANIES TO MAKE THEIR PRODUCT REACH CONSUMERSrsquo POCKETS RIGHTPRICING WILL MAKE OR BREAK THE PRODUCT SUCCESS ECONOMICAL DISTRIBUTION OF THE PRODUCTS WILLALSO BE EQUALLY IMPORTANTTHE COMPANIESrsquo STRATEGIES SHOULD FOCUS ON DRIVING SALES THROUGH A RIGHT PRODUCT MIXEFFICIENT MATERIALS PROCUREMENT REDUCED WASTAGES INCREASED FACTORY EFFICIENCIES AND IMPROVED SUPPLY CHAIN MANAGEMENTTHERErsquoS AN IMMENSE SCOPE FOR GROWTH OF CHOCOLATE INDUSTRY IN INDIA - GEOGRAPHICALLY AS WELLAS IN THE PRODUCT OFFERING
BIBLIOGRAPHY
bull WWWCADBURYCOUKbull WWWCHOCOLATEREVIEWCOUKbull WWW CADBURYS CHWEPPESCOMbull WWWWIKIPEDIAORGbull WWWCADBURYCOMbull WWWOPPAPERSCOM REFERENCES-bull PHILIP KOTLER
- BY RAGHAVENDRA MISHRA
- INTRODUCTION
- HISTORY
- MARKETING OBJECTIVES
- TARGET MARKET
- MARKET SEGMENTATION
- GEOGRAPHIC SEGMENTATION
- DEMOGRAPHIC SEGMENTATION
- MARKETING MIX
- PRODUCT
- PRODUCT INNOVATIONS
- PACKAGING
- PRICE
- VOLUME LED GROWTH STRATEGY
- HIRES AT KEARNEY TO CURB COSTS
- EARNINGS SENSITIVITY FACTORS
- PLACE
- DISTRIBUTION
- NATURE OF RETAIL OUTLET
- PROMOTION
- CHOCOLATE ADS SHIFT FOCUS FROM KIDS TO YOUTH
- CONCLUSION
- BIBLIOGRAPHY
-
HISTORY
bull Cadbury is a very old trusted name It all started in Birmingham in England when John
Cadbury started his family grocery shop with side business of cocoa and chocolate products in around 1824 His two sons Richard and George expanded their family business of cocoa and chocolate Bournville a town near Birmingham was build by them as a part of expansion of their business
MARKETING OBJECTIVES
bull GROW SHAREHOLDER VALUEhellipOVER THE LONG TERM
bull CADBURY IN EVERY POCKETbull MARKETING STRATEGY IS AIMED AT
ACHIEVING THIS VISION BY GROWING THE MARKET BY APPROPRIATE PRICING STRATEGY THAT WILL CREATE A MASS MARKET AND TO HAVE OFFERINGS IN EVERY CATEGORY TO WIDEN THE MARKET
TARGET MARKET
bull THE INDIAN CHOCOLATE MARKET IS VALUED AT RS 650 CRORES (IE RS 650 BILLION) A YEAR THE INDIAN CHOCOLATE BAZAAR IS ESTIMATED TO BE IN THE REGION OF 22000-24000 TONNES PER ANNUM AND IS VALUED IN EXCESS OF US$ 80 MILLION
bull INDIAS METROS PROVING TO BE THE BIG DRAW CLOCKING PENETRATION IN EXCESS OF 15 PERCENT NEXT COMES THE RELATIVELY SMALLER CITIESTOWNS WHERE CONSUMPTION LAGS AT ABOUT 8 PERCENT CHOCOLATES ARE A LUXURY IN THE RURAL SEGMENT WHICH EXPLAINS THE MERE 2 PERCENT PENETRATION IN VILLAGES THE MARKET PRESENTLY HAS CLOSE TO 60MN CONSUMERS AND THEY ARE MAINLY LOCATED IN THE URBAN AREAS
MARKET SEGMENTATION
bull MARKET SEGMENTATION IS THE PROCESS IN MARKETING OF GROUPING A MARKET (IE CUSTOMERS) INTO SMALLER SUBGROUPS THESE MARKETS ARE OFTEN TERMED NICHE MARKETS OR SPECIALTY MARKETS
bull THE PURPOSE OF SEGMENTATION IS TO IDENTIFY AND TARGET PRIME CUSTOMER GROUPS (EG THE 20 THAT ACCOUNT FOR 80 OF YOUR SALES) SO THAT YOU GET THE MAXIMUM RETURN FROM A LIMITED MARKETING BUDGET
GEOGRAPHIC SEGMENTATION
bull THE MARKET PRESENTLY HAS CLOSE TO 60MN CONSUMERS AND THEY ARE MAINLY LOCATED IN THE
bull URBAN AREAS GROWTH WILL MAINLY COME THROUGH AN INCREASE IN PENETRATION AS INCOME LEVELS IMPROVE
bull HOWEVER ALMOST ALL OF THIS CONSUMPTION IS IN THE CITIES AND RURAL INDIA IS NEARLY lsquoCHOCOLATE-FREErsquo BUT THE FACT IS THAT THREE QUARTERS OF INDIANS LIVE IN RURAL AREAS ldquoAVERAGE SUMMERTIME TEMPERATURES REACH 43 DEGREES CELSIUS IN INDIA CHOCOLATE MELTS AT BODY TEMPERATURE OF 36 DEGREESrdquo
DEMOGRAPHIC SEGMENTATION
AGE-
bull CHILDREN - 55
bull ADULTS - 12
bull YOUNG ADULTS - 33
bull INCOME LEVEL- IN THE MIDDLE AND HIGHER INCOME GROUPS
MARKETING MIX
bull THE TOOLS AVAILABLE TO A BUSINESS TO GAIN THE REACTION IT IS SEEKING FROM ITS TARGET MARKET IN RELATION TO ITS MARKETING OBJECTIVES IT IS THE GENERALLY ACCEPTED AS THE USE AND SPECIFICATION OF THE ldquoFOUR PrsquoSrdquo DESCRIBING THE STRATEGIC POSITION OF A PRODUCT IN THE MARKETPLACE
bull PRODUCTbull PRICEbull PLACEbull PROMOTION
PRODUCT
bull PRODUCT VARIANTS bull CURRENTLY CADBURY INDIA OPERATES IN
FOUR CATEGORIES VIZ CHOCOLATE CONFECTIONERY MILK FOOD DRINKS CANDY AND GUM CATEGORY
bull CADBURY DAIRY MILK 5 STAR PERK EacuteCLAIRS AND CELEBRATIONS
bull CANDY CATEGORY HALLSbull BUBBLE GUM BRAND BUBBALOObull BOURNVITA - THE LEADING MALTED FOOD
DRINK (MFD)
PRODUCT INNOVATIONS bull 1048766 5 STAR
bull CONSUMER FEEDBACK SUGGESTED THAT THE OLD 5 STAR WAS TOO CHEWY AND PEOPLE COMPLAINED OF IT STICKING TO THEIR TEETH IT WAS MADE SOFTER AND MELTED EASILY IN THE MOUTH amp INTRODUCED AS 5 STAR CRUNCHY
bull 1048766 PERK
bull PERK WAS MADE MUCH LIGHTER AND THE SIZE OF THE BAR INCREASED TO MATCH NESTLErsquoS MUNCH PERK HAD BEEN UNDER FIRE FROM NESTLErsquoS DEADLY DUO OF KITKAT AND MUNCH BUT AFTER THE RELAUNCH ITS MARKETSHARE IS TWO PER CENT MORE THAN KITKATrsquoS AND THE FIVE-YEAR-OLD BRAND IS NOW ALMOST AS BIG AS THE DECADES-OLD 5 STAR IN SIZE BOTH IN THE REGION OF RS 50-55 CRORE
bull 1048766 HEROES
bull PACKAGING INNOVATION HAS PLAYED A VITAL ROLE IN REVAMPING OF VARIOUS CADBURYrsquoS BRANDSHEROES BRAND IS SIMPLY A MULTI-PACK WITH MINIATURES OF ALL ITS MOST POPULAR BRANDS IN A SINGLEOUTER CASE
PACKAGINGbull
THE PACKAGING WAS CHANGED TO INCLUDE A SEALED PLASTIC WRAPPER INSIDE THE OUTSIDE FOIL CADBURYrsquoS LAUNCHED A NEW PURITY-SEALED PACKAGING FOR ITS FLAGSHIP PRODUCT CADBURY DAIRY MILK OVER THE NEXT FEW WEEKS CADBURY WILL WORK TOWARDS INTRODUCING EITHER A HEATSEALED OR A FLOW-PACK PACKAGING THAT OFFERS A HIGH LEVEL OF RESISTANCE TO INFESTATION FROM
bull IMPROPER STORAGE CADBURY INVESTED NEARLY RS 25 CRORE (RS 250 MILLION) THIS YEAR ON NEW MACHINERY FOR THE IMPROVED PACKAGING
PRICE
bull THE RS 5 PRICE POINT ACCOUNTS FOR MORE THAN HALF OF ALL CHOCOLATE SALES
bull TODAY CADBURY HAS FOUR PRODUCTS AT THIS PRICE POINT CDM PERK 5 STAR AND GEMS mdash AND THE FIVE-RUPEE CDM BAR IS ITS SINGLE LARGEST-SELLING SKU
bull ldquoTHIS IS A POTENT PRICE POINT IN INDIA BECAUSE THE AVERAGE PURCHASING POWER IS ABYSMALLY LOWrdquo IS WHAT INDUSTRY ANALYST HAVE TO SAY
VOLUME LED GROWTH STRATEGY
bull CADBURY HAS FOLLOWED A WELL-PLANNED STRATEGY OF FUELLING VOLUME GROWTH BY INTRODUCING SMALLER UNIT PACKS AT LOWER PRICE POINTS SIMULTANEOUSLY THE COMPANY SEEMS TO HAVE ASTUTELY JUGGLED WITH THE LARGER PACK SIZES AND RAISED PRICES TO A DEGREE HIGHER THAN WHAT APPEARS AT FACE
HIRES AT KEARNEY TO CURB COSTS
bull CADBURY INDIA APPOINTED MANAGEMENT CONSULTANCY FIRM AT KEARNEY TO DRAW UP A STRATEGY TO CONTROL COSTS IN SEVERAL AREAS INCLUDING SOURCING OF RAW MATERIALS AND PACKAGING
bull THE CONSULTANCY FIRM WILL ALSO LOOK AT THE SOURCING OF DIRECT AND INDIRECT MATERIALS LIKE RENEGOTIATING WITH SUPPLIERS FOR LONGER TERM CONTRACTS AND VENDOR MANAGEMENT OTHER COSTS (INDIRECT EXPENSES) LIKE TRAVEL COSTS AND HOTELS WERE ALSO BEING STUDIED
EARNINGS SENSITIVITY FACTORS
bull COCOA BEAN PRICES DOMESTIC AS WELL AS INTERNATIONAL PRICES OF KEY RAW MATERIAL - COCOA HAVE SIGNIFICANT IMPACT ON MARGINS
bull EXCISE DUTIES CHANGES IN EXCISE LEVIED ON MALT AND CHOCOLATE INFLUENCES END PRODUCT PRICES AND THEREBY VOLUME GROWTH AS WELL AS MARGINS
bull CHANGES IN CUSTOM DUTIES AND FOREIGN EXCHANGE FLUCTUATION AS 20 OF RAW MATERIAL IS IMPORTED CHANGES IN CUSTOM DUTIES amp FOREIGN EXCHANGE FLUCTUATIONS HAVE SIGNIFICANT IMPACT ON THE FINAL COST OF THE PRODUCT
bull COMPETITION FROM MNCS LIKE NESTLE AS WELL AS IMPORTED BRANDS INCREASING COMPETITION PUTS PRESSURE ON ADVERTISEMENT BUDGET AND MARGINS HOWEVER ON THE POSITIVE SIDE IT HELPS IN EXPANDING THE MARKET
PLACE
bull PLANT LOCATIONSbull IN INDIA CADBURY BEGAN ITS OPERATIONS IN
1948 BY IMPORTING CHOCOLATES AFTER 60 YEARS OF EXISTENCE IT TODAY HAS FIVE COMPANY-OWNED MANUFACTURING FACILITIES AT THANE INDURI (PUNE) AND MALANPUR (GWALIOR) BANGALORE AND BADDI (HIMACHAL PRADESH) AND 4 SALES OFFICES (NEW DELHI MUMBAI KOLKOTA AND CHENNAI) THE CORPORATE OFFICE IS IN MUMBAITHESE FACTORIES CHURN OUT CLOSE TO 8000 TONNES OF CHOCOLATE ANNUALLY
DISTRIBUTIONbull CHOCOLATE NEEDS TO BE DISTRIBUTED DIRECTLY UNLIKE
OTHER FMCG PRODUCTS LIKE SOAPS ANDbull DETERGENTS WHICH CAN BE SOLD THROUGH A
WHOLESALE NETWORK 90 OF CHOCOLATE PRODUCTS ARE SOLD
bull DIRECTLY TO RETAILERS bull CADBURYS DISTRIBUTION NETWORK USED TO
ENCOMPASSES 2100 DISTRIBUTORS AND 450000 RETAILERS bull TO AVOID CANNIBALIZATION OF ITS HIGHER PRICED
PRODUCTS FROM LOWER PRICED ONES CADBURY ISbull SETTING UP TWO SEPARATE DISTRIBUTION CHANNELS ndash
ONE FOR CORE BUSINESS amp OTHER FOR MASS MARKETS
NATURE OF RETAIL OUTLET
bull CHOCOLATES ARE PRIMARILY SOLD THROUGH KIRANA STORES GIFT STORES MEDICAL STORES CANTEENS
bull PAN-BIDI STORES BAKERIES SWEET SHOPS ETC THIS IS TRUE FOR CHOCOLATES ALSO THE SPACE ALLOCATED FOR
bull THE CHOCOLATES WAS LESS WHEN COMPARED TO THE TOTAL AREA OF THE SHOP OF THE SPACE ALLOCATED FOR
bull CHOCOLATES CADBURY BRANDS OCCUPIED MORE THAN NESTLE BRANDS
PROMOTIONbull ADVERTISEMENTSbull THE ADVERTISEMENT AIMED AT CONVEYING THE IDEA THAT NO
SPECIFIC OCCASION IS REQUIRED FOR CONSUMING CDM
bull CELEBRITIES ENDORSEMENTS
bull CADBURY ROPED IN PREITY ZINTA FOR ITS PERK BRAND PREITY ZINTArsquoS ANGELIC DIMPLES LAID THE
bull FOUNDATION FOR WHAT WOULD BECOME THE INDIAN TEENAGERrsquoS FAVORITE SNACK AFTER THIS CAMPAIGN
bull PERKrsquoS SALE SURGED
bull THE BIG lsquoBrsquo FACTORbull THE BIG FACTOR THAT HAS PUSHED UP CDM SALES IS THE
AMITABH BACHCHAN CAMPAIGN CADBURY APPOINTED AMITABH BACHCHAN AS ITS BRAND AMBASSADOR
CHOCOLATE ADS SHIFT FOCUS FROM KIDS TO YOUTH
bull INDIAN CHOCOLATE MARKET IS ALMOST TOTALLY DEPENDED ON PURCHASES OF KIDS
bull WHILE CADBURY IS TRYING TO SELL INDULGENCE TO ADULTS KIT KAT IS SELLING RITUALISTIC BREAK TO
bull TEENAGERS YOUNG ADULTS THIS IS REFLECTED IN THE CHANGING ADVERTISING PATTERNS ACROSS DIFFERENT
bull CHANNELS
CONCLUSION WHEN PRICED AT EVEN RS 2500KG WHILE THERE ARE PLACES IN
INDIA WHERE PEOPLE HAVE NEVER EVEN TASTED CHOCOLATES ONCEUNDERSTANDING THE CONSUMER DEMANDS AND MAINTAINING THE QUALITY WILL BE ESSENTIALCOMPANIES WILL HAVE TO KEEP THEMSELVES ABREAST WITH THE DEVELOPMENTS IN OTHER PARTS OF THE WORLDPRICING IS THE KEY FOR COMPANIES TO MAKE THEIR PRODUCT REACH CONSUMERSrsquo POCKETS RIGHTPRICING WILL MAKE OR BREAK THE PRODUCT SUCCESS ECONOMICAL DISTRIBUTION OF THE PRODUCTS WILLALSO BE EQUALLY IMPORTANTTHE COMPANIESrsquo STRATEGIES SHOULD FOCUS ON DRIVING SALES THROUGH A RIGHT PRODUCT MIXEFFICIENT MATERIALS PROCUREMENT REDUCED WASTAGES INCREASED FACTORY EFFICIENCIES AND IMPROVED SUPPLY CHAIN MANAGEMENTTHERErsquoS AN IMMENSE SCOPE FOR GROWTH OF CHOCOLATE INDUSTRY IN INDIA - GEOGRAPHICALLY AS WELLAS IN THE PRODUCT OFFERING
BIBLIOGRAPHY
bull WWWCADBURYCOUKbull WWWCHOCOLATEREVIEWCOUKbull WWW CADBURYS CHWEPPESCOMbull WWWWIKIPEDIAORGbull WWWCADBURYCOMbull WWWOPPAPERSCOM REFERENCES-bull PHILIP KOTLER
- BY RAGHAVENDRA MISHRA
- INTRODUCTION
- HISTORY
- MARKETING OBJECTIVES
- TARGET MARKET
- MARKET SEGMENTATION
- GEOGRAPHIC SEGMENTATION
- DEMOGRAPHIC SEGMENTATION
- MARKETING MIX
- PRODUCT
- PRODUCT INNOVATIONS
- PACKAGING
- PRICE
- VOLUME LED GROWTH STRATEGY
- HIRES AT KEARNEY TO CURB COSTS
- EARNINGS SENSITIVITY FACTORS
- PLACE
- DISTRIBUTION
- NATURE OF RETAIL OUTLET
- PROMOTION
- CHOCOLATE ADS SHIFT FOCUS FROM KIDS TO YOUTH
- CONCLUSION
- BIBLIOGRAPHY
-
MARKETING OBJECTIVES
bull GROW SHAREHOLDER VALUEhellipOVER THE LONG TERM
bull CADBURY IN EVERY POCKETbull MARKETING STRATEGY IS AIMED AT
ACHIEVING THIS VISION BY GROWING THE MARKET BY APPROPRIATE PRICING STRATEGY THAT WILL CREATE A MASS MARKET AND TO HAVE OFFERINGS IN EVERY CATEGORY TO WIDEN THE MARKET
TARGET MARKET
bull THE INDIAN CHOCOLATE MARKET IS VALUED AT RS 650 CRORES (IE RS 650 BILLION) A YEAR THE INDIAN CHOCOLATE BAZAAR IS ESTIMATED TO BE IN THE REGION OF 22000-24000 TONNES PER ANNUM AND IS VALUED IN EXCESS OF US$ 80 MILLION
bull INDIAS METROS PROVING TO BE THE BIG DRAW CLOCKING PENETRATION IN EXCESS OF 15 PERCENT NEXT COMES THE RELATIVELY SMALLER CITIESTOWNS WHERE CONSUMPTION LAGS AT ABOUT 8 PERCENT CHOCOLATES ARE A LUXURY IN THE RURAL SEGMENT WHICH EXPLAINS THE MERE 2 PERCENT PENETRATION IN VILLAGES THE MARKET PRESENTLY HAS CLOSE TO 60MN CONSUMERS AND THEY ARE MAINLY LOCATED IN THE URBAN AREAS
MARKET SEGMENTATION
bull MARKET SEGMENTATION IS THE PROCESS IN MARKETING OF GROUPING A MARKET (IE CUSTOMERS) INTO SMALLER SUBGROUPS THESE MARKETS ARE OFTEN TERMED NICHE MARKETS OR SPECIALTY MARKETS
bull THE PURPOSE OF SEGMENTATION IS TO IDENTIFY AND TARGET PRIME CUSTOMER GROUPS (EG THE 20 THAT ACCOUNT FOR 80 OF YOUR SALES) SO THAT YOU GET THE MAXIMUM RETURN FROM A LIMITED MARKETING BUDGET
GEOGRAPHIC SEGMENTATION
bull THE MARKET PRESENTLY HAS CLOSE TO 60MN CONSUMERS AND THEY ARE MAINLY LOCATED IN THE
bull URBAN AREAS GROWTH WILL MAINLY COME THROUGH AN INCREASE IN PENETRATION AS INCOME LEVELS IMPROVE
bull HOWEVER ALMOST ALL OF THIS CONSUMPTION IS IN THE CITIES AND RURAL INDIA IS NEARLY lsquoCHOCOLATE-FREErsquo BUT THE FACT IS THAT THREE QUARTERS OF INDIANS LIVE IN RURAL AREAS ldquoAVERAGE SUMMERTIME TEMPERATURES REACH 43 DEGREES CELSIUS IN INDIA CHOCOLATE MELTS AT BODY TEMPERATURE OF 36 DEGREESrdquo
DEMOGRAPHIC SEGMENTATION
AGE-
bull CHILDREN - 55
bull ADULTS - 12
bull YOUNG ADULTS - 33
bull INCOME LEVEL- IN THE MIDDLE AND HIGHER INCOME GROUPS
MARKETING MIX
bull THE TOOLS AVAILABLE TO A BUSINESS TO GAIN THE REACTION IT IS SEEKING FROM ITS TARGET MARKET IN RELATION TO ITS MARKETING OBJECTIVES IT IS THE GENERALLY ACCEPTED AS THE USE AND SPECIFICATION OF THE ldquoFOUR PrsquoSrdquo DESCRIBING THE STRATEGIC POSITION OF A PRODUCT IN THE MARKETPLACE
bull PRODUCTbull PRICEbull PLACEbull PROMOTION
PRODUCT
bull PRODUCT VARIANTS bull CURRENTLY CADBURY INDIA OPERATES IN
FOUR CATEGORIES VIZ CHOCOLATE CONFECTIONERY MILK FOOD DRINKS CANDY AND GUM CATEGORY
bull CADBURY DAIRY MILK 5 STAR PERK EacuteCLAIRS AND CELEBRATIONS
bull CANDY CATEGORY HALLSbull BUBBLE GUM BRAND BUBBALOObull BOURNVITA - THE LEADING MALTED FOOD
DRINK (MFD)
PRODUCT INNOVATIONS bull 1048766 5 STAR
bull CONSUMER FEEDBACK SUGGESTED THAT THE OLD 5 STAR WAS TOO CHEWY AND PEOPLE COMPLAINED OF IT STICKING TO THEIR TEETH IT WAS MADE SOFTER AND MELTED EASILY IN THE MOUTH amp INTRODUCED AS 5 STAR CRUNCHY
bull 1048766 PERK
bull PERK WAS MADE MUCH LIGHTER AND THE SIZE OF THE BAR INCREASED TO MATCH NESTLErsquoS MUNCH PERK HAD BEEN UNDER FIRE FROM NESTLErsquoS DEADLY DUO OF KITKAT AND MUNCH BUT AFTER THE RELAUNCH ITS MARKETSHARE IS TWO PER CENT MORE THAN KITKATrsquoS AND THE FIVE-YEAR-OLD BRAND IS NOW ALMOST AS BIG AS THE DECADES-OLD 5 STAR IN SIZE BOTH IN THE REGION OF RS 50-55 CRORE
bull 1048766 HEROES
bull PACKAGING INNOVATION HAS PLAYED A VITAL ROLE IN REVAMPING OF VARIOUS CADBURYrsquoS BRANDSHEROES BRAND IS SIMPLY A MULTI-PACK WITH MINIATURES OF ALL ITS MOST POPULAR BRANDS IN A SINGLEOUTER CASE
PACKAGINGbull
THE PACKAGING WAS CHANGED TO INCLUDE A SEALED PLASTIC WRAPPER INSIDE THE OUTSIDE FOIL CADBURYrsquoS LAUNCHED A NEW PURITY-SEALED PACKAGING FOR ITS FLAGSHIP PRODUCT CADBURY DAIRY MILK OVER THE NEXT FEW WEEKS CADBURY WILL WORK TOWARDS INTRODUCING EITHER A HEATSEALED OR A FLOW-PACK PACKAGING THAT OFFERS A HIGH LEVEL OF RESISTANCE TO INFESTATION FROM
bull IMPROPER STORAGE CADBURY INVESTED NEARLY RS 25 CRORE (RS 250 MILLION) THIS YEAR ON NEW MACHINERY FOR THE IMPROVED PACKAGING
PRICE
bull THE RS 5 PRICE POINT ACCOUNTS FOR MORE THAN HALF OF ALL CHOCOLATE SALES
bull TODAY CADBURY HAS FOUR PRODUCTS AT THIS PRICE POINT CDM PERK 5 STAR AND GEMS mdash AND THE FIVE-RUPEE CDM BAR IS ITS SINGLE LARGEST-SELLING SKU
bull ldquoTHIS IS A POTENT PRICE POINT IN INDIA BECAUSE THE AVERAGE PURCHASING POWER IS ABYSMALLY LOWrdquo IS WHAT INDUSTRY ANALYST HAVE TO SAY
VOLUME LED GROWTH STRATEGY
bull CADBURY HAS FOLLOWED A WELL-PLANNED STRATEGY OF FUELLING VOLUME GROWTH BY INTRODUCING SMALLER UNIT PACKS AT LOWER PRICE POINTS SIMULTANEOUSLY THE COMPANY SEEMS TO HAVE ASTUTELY JUGGLED WITH THE LARGER PACK SIZES AND RAISED PRICES TO A DEGREE HIGHER THAN WHAT APPEARS AT FACE
HIRES AT KEARNEY TO CURB COSTS
bull CADBURY INDIA APPOINTED MANAGEMENT CONSULTANCY FIRM AT KEARNEY TO DRAW UP A STRATEGY TO CONTROL COSTS IN SEVERAL AREAS INCLUDING SOURCING OF RAW MATERIALS AND PACKAGING
bull THE CONSULTANCY FIRM WILL ALSO LOOK AT THE SOURCING OF DIRECT AND INDIRECT MATERIALS LIKE RENEGOTIATING WITH SUPPLIERS FOR LONGER TERM CONTRACTS AND VENDOR MANAGEMENT OTHER COSTS (INDIRECT EXPENSES) LIKE TRAVEL COSTS AND HOTELS WERE ALSO BEING STUDIED
EARNINGS SENSITIVITY FACTORS
bull COCOA BEAN PRICES DOMESTIC AS WELL AS INTERNATIONAL PRICES OF KEY RAW MATERIAL - COCOA HAVE SIGNIFICANT IMPACT ON MARGINS
bull EXCISE DUTIES CHANGES IN EXCISE LEVIED ON MALT AND CHOCOLATE INFLUENCES END PRODUCT PRICES AND THEREBY VOLUME GROWTH AS WELL AS MARGINS
bull CHANGES IN CUSTOM DUTIES AND FOREIGN EXCHANGE FLUCTUATION AS 20 OF RAW MATERIAL IS IMPORTED CHANGES IN CUSTOM DUTIES amp FOREIGN EXCHANGE FLUCTUATIONS HAVE SIGNIFICANT IMPACT ON THE FINAL COST OF THE PRODUCT
bull COMPETITION FROM MNCS LIKE NESTLE AS WELL AS IMPORTED BRANDS INCREASING COMPETITION PUTS PRESSURE ON ADVERTISEMENT BUDGET AND MARGINS HOWEVER ON THE POSITIVE SIDE IT HELPS IN EXPANDING THE MARKET
PLACE
bull PLANT LOCATIONSbull IN INDIA CADBURY BEGAN ITS OPERATIONS IN
1948 BY IMPORTING CHOCOLATES AFTER 60 YEARS OF EXISTENCE IT TODAY HAS FIVE COMPANY-OWNED MANUFACTURING FACILITIES AT THANE INDURI (PUNE) AND MALANPUR (GWALIOR) BANGALORE AND BADDI (HIMACHAL PRADESH) AND 4 SALES OFFICES (NEW DELHI MUMBAI KOLKOTA AND CHENNAI) THE CORPORATE OFFICE IS IN MUMBAITHESE FACTORIES CHURN OUT CLOSE TO 8000 TONNES OF CHOCOLATE ANNUALLY
DISTRIBUTIONbull CHOCOLATE NEEDS TO BE DISTRIBUTED DIRECTLY UNLIKE
OTHER FMCG PRODUCTS LIKE SOAPS ANDbull DETERGENTS WHICH CAN BE SOLD THROUGH A
WHOLESALE NETWORK 90 OF CHOCOLATE PRODUCTS ARE SOLD
bull DIRECTLY TO RETAILERS bull CADBURYS DISTRIBUTION NETWORK USED TO
ENCOMPASSES 2100 DISTRIBUTORS AND 450000 RETAILERS bull TO AVOID CANNIBALIZATION OF ITS HIGHER PRICED
PRODUCTS FROM LOWER PRICED ONES CADBURY ISbull SETTING UP TWO SEPARATE DISTRIBUTION CHANNELS ndash
ONE FOR CORE BUSINESS amp OTHER FOR MASS MARKETS
NATURE OF RETAIL OUTLET
bull CHOCOLATES ARE PRIMARILY SOLD THROUGH KIRANA STORES GIFT STORES MEDICAL STORES CANTEENS
bull PAN-BIDI STORES BAKERIES SWEET SHOPS ETC THIS IS TRUE FOR CHOCOLATES ALSO THE SPACE ALLOCATED FOR
bull THE CHOCOLATES WAS LESS WHEN COMPARED TO THE TOTAL AREA OF THE SHOP OF THE SPACE ALLOCATED FOR
bull CHOCOLATES CADBURY BRANDS OCCUPIED MORE THAN NESTLE BRANDS
PROMOTIONbull ADVERTISEMENTSbull THE ADVERTISEMENT AIMED AT CONVEYING THE IDEA THAT NO
SPECIFIC OCCASION IS REQUIRED FOR CONSUMING CDM
bull CELEBRITIES ENDORSEMENTS
bull CADBURY ROPED IN PREITY ZINTA FOR ITS PERK BRAND PREITY ZINTArsquoS ANGELIC DIMPLES LAID THE
bull FOUNDATION FOR WHAT WOULD BECOME THE INDIAN TEENAGERrsquoS FAVORITE SNACK AFTER THIS CAMPAIGN
bull PERKrsquoS SALE SURGED
bull THE BIG lsquoBrsquo FACTORbull THE BIG FACTOR THAT HAS PUSHED UP CDM SALES IS THE
AMITABH BACHCHAN CAMPAIGN CADBURY APPOINTED AMITABH BACHCHAN AS ITS BRAND AMBASSADOR
CHOCOLATE ADS SHIFT FOCUS FROM KIDS TO YOUTH
bull INDIAN CHOCOLATE MARKET IS ALMOST TOTALLY DEPENDED ON PURCHASES OF KIDS
bull WHILE CADBURY IS TRYING TO SELL INDULGENCE TO ADULTS KIT KAT IS SELLING RITUALISTIC BREAK TO
bull TEENAGERS YOUNG ADULTS THIS IS REFLECTED IN THE CHANGING ADVERTISING PATTERNS ACROSS DIFFERENT
bull CHANNELS
CONCLUSION WHEN PRICED AT EVEN RS 2500KG WHILE THERE ARE PLACES IN
INDIA WHERE PEOPLE HAVE NEVER EVEN TASTED CHOCOLATES ONCEUNDERSTANDING THE CONSUMER DEMANDS AND MAINTAINING THE QUALITY WILL BE ESSENTIALCOMPANIES WILL HAVE TO KEEP THEMSELVES ABREAST WITH THE DEVELOPMENTS IN OTHER PARTS OF THE WORLDPRICING IS THE KEY FOR COMPANIES TO MAKE THEIR PRODUCT REACH CONSUMERSrsquo POCKETS RIGHTPRICING WILL MAKE OR BREAK THE PRODUCT SUCCESS ECONOMICAL DISTRIBUTION OF THE PRODUCTS WILLALSO BE EQUALLY IMPORTANTTHE COMPANIESrsquo STRATEGIES SHOULD FOCUS ON DRIVING SALES THROUGH A RIGHT PRODUCT MIXEFFICIENT MATERIALS PROCUREMENT REDUCED WASTAGES INCREASED FACTORY EFFICIENCIES AND IMPROVED SUPPLY CHAIN MANAGEMENTTHERErsquoS AN IMMENSE SCOPE FOR GROWTH OF CHOCOLATE INDUSTRY IN INDIA - GEOGRAPHICALLY AS WELLAS IN THE PRODUCT OFFERING
BIBLIOGRAPHY
bull WWWCADBURYCOUKbull WWWCHOCOLATEREVIEWCOUKbull WWW CADBURYS CHWEPPESCOMbull WWWWIKIPEDIAORGbull WWWCADBURYCOMbull WWWOPPAPERSCOM REFERENCES-bull PHILIP KOTLER
- BY RAGHAVENDRA MISHRA
- INTRODUCTION
- HISTORY
- MARKETING OBJECTIVES
- TARGET MARKET
- MARKET SEGMENTATION
- GEOGRAPHIC SEGMENTATION
- DEMOGRAPHIC SEGMENTATION
- MARKETING MIX
- PRODUCT
- PRODUCT INNOVATIONS
- PACKAGING
- PRICE
- VOLUME LED GROWTH STRATEGY
- HIRES AT KEARNEY TO CURB COSTS
- EARNINGS SENSITIVITY FACTORS
- PLACE
- DISTRIBUTION
- NATURE OF RETAIL OUTLET
- PROMOTION
- CHOCOLATE ADS SHIFT FOCUS FROM KIDS TO YOUTH
- CONCLUSION
- BIBLIOGRAPHY
-
TARGET MARKET
bull THE INDIAN CHOCOLATE MARKET IS VALUED AT RS 650 CRORES (IE RS 650 BILLION) A YEAR THE INDIAN CHOCOLATE BAZAAR IS ESTIMATED TO BE IN THE REGION OF 22000-24000 TONNES PER ANNUM AND IS VALUED IN EXCESS OF US$ 80 MILLION
bull INDIAS METROS PROVING TO BE THE BIG DRAW CLOCKING PENETRATION IN EXCESS OF 15 PERCENT NEXT COMES THE RELATIVELY SMALLER CITIESTOWNS WHERE CONSUMPTION LAGS AT ABOUT 8 PERCENT CHOCOLATES ARE A LUXURY IN THE RURAL SEGMENT WHICH EXPLAINS THE MERE 2 PERCENT PENETRATION IN VILLAGES THE MARKET PRESENTLY HAS CLOSE TO 60MN CONSUMERS AND THEY ARE MAINLY LOCATED IN THE URBAN AREAS
MARKET SEGMENTATION
bull MARKET SEGMENTATION IS THE PROCESS IN MARKETING OF GROUPING A MARKET (IE CUSTOMERS) INTO SMALLER SUBGROUPS THESE MARKETS ARE OFTEN TERMED NICHE MARKETS OR SPECIALTY MARKETS
bull THE PURPOSE OF SEGMENTATION IS TO IDENTIFY AND TARGET PRIME CUSTOMER GROUPS (EG THE 20 THAT ACCOUNT FOR 80 OF YOUR SALES) SO THAT YOU GET THE MAXIMUM RETURN FROM A LIMITED MARKETING BUDGET
GEOGRAPHIC SEGMENTATION
bull THE MARKET PRESENTLY HAS CLOSE TO 60MN CONSUMERS AND THEY ARE MAINLY LOCATED IN THE
bull URBAN AREAS GROWTH WILL MAINLY COME THROUGH AN INCREASE IN PENETRATION AS INCOME LEVELS IMPROVE
bull HOWEVER ALMOST ALL OF THIS CONSUMPTION IS IN THE CITIES AND RURAL INDIA IS NEARLY lsquoCHOCOLATE-FREErsquo BUT THE FACT IS THAT THREE QUARTERS OF INDIANS LIVE IN RURAL AREAS ldquoAVERAGE SUMMERTIME TEMPERATURES REACH 43 DEGREES CELSIUS IN INDIA CHOCOLATE MELTS AT BODY TEMPERATURE OF 36 DEGREESrdquo
DEMOGRAPHIC SEGMENTATION
AGE-
bull CHILDREN - 55
bull ADULTS - 12
bull YOUNG ADULTS - 33
bull INCOME LEVEL- IN THE MIDDLE AND HIGHER INCOME GROUPS
MARKETING MIX
bull THE TOOLS AVAILABLE TO A BUSINESS TO GAIN THE REACTION IT IS SEEKING FROM ITS TARGET MARKET IN RELATION TO ITS MARKETING OBJECTIVES IT IS THE GENERALLY ACCEPTED AS THE USE AND SPECIFICATION OF THE ldquoFOUR PrsquoSrdquo DESCRIBING THE STRATEGIC POSITION OF A PRODUCT IN THE MARKETPLACE
bull PRODUCTbull PRICEbull PLACEbull PROMOTION
PRODUCT
bull PRODUCT VARIANTS bull CURRENTLY CADBURY INDIA OPERATES IN
FOUR CATEGORIES VIZ CHOCOLATE CONFECTIONERY MILK FOOD DRINKS CANDY AND GUM CATEGORY
bull CADBURY DAIRY MILK 5 STAR PERK EacuteCLAIRS AND CELEBRATIONS
bull CANDY CATEGORY HALLSbull BUBBLE GUM BRAND BUBBALOObull BOURNVITA - THE LEADING MALTED FOOD
DRINK (MFD)
PRODUCT INNOVATIONS bull 1048766 5 STAR
bull CONSUMER FEEDBACK SUGGESTED THAT THE OLD 5 STAR WAS TOO CHEWY AND PEOPLE COMPLAINED OF IT STICKING TO THEIR TEETH IT WAS MADE SOFTER AND MELTED EASILY IN THE MOUTH amp INTRODUCED AS 5 STAR CRUNCHY
bull 1048766 PERK
bull PERK WAS MADE MUCH LIGHTER AND THE SIZE OF THE BAR INCREASED TO MATCH NESTLErsquoS MUNCH PERK HAD BEEN UNDER FIRE FROM NESTLErsquoS DEADLY DUO OF KITKAT AND MUNCH BUT AFTER THE RELAUNCH ITS MARKETSHARE IS TWO PER CENT MORE THAN KITKATrsquoS AND THE FIVE-YEAR-OLD BRAND IS NOW ALMOST AS BIG AS THE DECADES-OLD 5 STAR IN SIZE BOTH IN THE REGION OF RS 50-55 CRORE
bull 1048766 HEROES
bull PACKAGING INNOVATION HAS PLAYED A VITAL ROLE IN REVAMPING OF VARIOUS CADBURYrsquoS BRANDSHEROES BRAND IS SIMPLY A MULTI-PACK WITH MINIATURES OF ALL ITS MOST POPULAR BRANDS IN A SINGLEOUTER CASE
PACKAGINGbull
THE PACKAGING WAS CHANGED TO INCLUDE A SEALED PLASTIC WRAPPER INSIDE THE OUTSIDE FOIL CADBURYrsquoS LAUNCHED A NEW PURITY-SEALED PACKAGING FOR ITS FLAGSHIP PRODUCT CADBURY DAIRY MILK OVER THE NEXT FEW WEEKS CADBURY WILL WORK TOWARDS INTRODUCING EITHER A HEATSEALED OR A FLOW-PACK PACKAGING THAT OFFERS A HIGH LEVEL OF RESISTANCE TO INFESTATION FROM
bull IMPROPER STORAGE CADBURY INVESTED NEARLY RS 25 CRORE (RS 250 MILLION) THIS YEAR ON NEW MACHINERY FOR THE IMPROVED PACKAGING
PRICE
bull THE RS 5 PRICE POINT ACCOUNTS FOR MORE THAN HALF OF ALL CHOCOLATE SALES
bull TODAY CADBURY HAS FOUR PRODUCTS AT THIS PRICE POINT CDM PERK 5 STAR AND GEMS mdash AND THE FIVE-RUPEE CDM BAR IS ITS SINGLE LARGEST-SELLING SKU
bull ldquoTHIS IS A POTENT PRICE POINT IN INDIA BECAUSE THE AVERAGE PURCHASING POWER IS ABYSMALLY LOWrdquo IS WHAT INDUSTRY ANALYST HAVE TO SAY
VOLUME LED GROWTH STRATEGY
bull CADBURY HAS FOLLOWED A WELL-PLANNED STRATEGY OF FUELLING VOLUME GROWTH BY INTRODUCING SMALLER UNIT PACKS AT LOWER PRICE POINTS SIMULTANEOUSLY THE COMPANY SEEMS TO HAVE ASTUTELY JUGGLED WITH THE LARGER PACK SIZES AND RAISED PRICES TO A DEGREE HIGHER THAN WHAT APPEARS AT FACE
HIRES AT KEARNEY TO CURB COSTS
bull CADBURY INDIA APPOINTED MANAGEMENT CONSULTANCY FIRM AT KEARNEY TO DRAW UP A STRATEGY TO CONTROL COSTS IN SEVERAL AREAS INCLUDING SOURCING OF RAW MATERIALS AND PACKAGING
bull THE CONSULTANCY FIRM WILL ALSO LOOK AT THE SOURCING OF DIRECT AND INDIRECT MATERIALS LIKE RENEGOTIATING WITH SUPPLIERS FOR LONGER TERM CONTRACTS AND VENDOR MANAGEMENT OTHER COSTS (INDIRECT EXPENSES) LIKE TRAVEL COSTS AND HOTELS WERE ALSO BEING STUDIED
EARNINGS SENSITIVITY FACTORS
bull COCOA BEAN PRICES DOMESTIC AS WELL AS INTERNATIONAL PRICES OF KEY RAW MATERIAL - COCOA HAVE SIGNIFICANT IMPACT ON MARGINS
bull EXCISE DUTIES CHANGES IN EXCISE LEVIED ON MALT AND CHOCOLATE INFLUENCES END PRODUCT PRICES AND THEREBY VOLUME GROWTH AS WELL AS MARGINS
bull CHANGES IN CUSTOM DUTIES AND FOREIGN EXCHANGE FLUCTUATION AS 20 OF RAW MATERIAL IS IMPORTED CHANGES IN CUSTOM DUTIES amp FOREIGN EXCHANGE FLUCTUATIONS HAVE SIGNIFICANT IMPACT ON THE FINAL COST OF THE PRODUCT
bull COMPETITION FROM MNCS LIKE NESTLE AS WELL AS IMPORTED BRANDS INCREASING COMPETITION PUTS PRESSURE ON ADVERTISEMENT BUDGET AND MARGINS HOWEVER ON THE POSITIVE SIDE IT HELPS IN EXPANDING THE MARKET
PLACE
bull PLANT LOCATIONSbull IN INDIA CADBURY BEGAN ITS OPERATIONS IN
1948 BY IMPORTING CHOCOLATES AFTER 60 YEARS OF EXISTENCE IT TODAY HAS FIVE COMPANY-OWNED MANUFACTURING FACILITIES AT THANE INDURI (PUNE) AND MALANPUR (GWALIOR) BANGALORE AND BADDI (HIMACHAL PRADESH) AND 4 SALES OFFICES (NEW DELHI MUMBAI KOLKOTA AND CHENNAI) THE CORPORATE OFFICE IS IN MUMBAITHESE FACTORIES CHURN OUT CLOSE TO 8000 TONNES OF CHOCOLATE ANNUALLY
DISTRIBUTIONbull CHOCOLATE NEEDS TO BE DISTRIBUTED DIRECTLY UNLIKE
OTHER FMCG PRODUCTS LIKE SOAPS ANDbull DETERGENTS WHICH CAN BE SOLD THROUGH A
WHOLESALE NETWORK 90 OF CHOCOLATE PRODUCTS ARE SOLD
bull DIRECTLY TO RETAILERS bull CADBURYS DISTRIBUTION NETWORK USED TO
ENCOMPASSES 2100 DISTRIBUTORS AND 450000 RETAILERS bull TO AVOID CANNIBALIZATION OF ITS HIGHER PRICED
PRODUCTS FROM LOWER PRICED ONES CADBURY ISbull SETTING UP TWO SEPARATE DISTRIBUTION CHANNELS ndash
ONE FOR CORE BUSINESS amp OTHER FOR MASS MARKETS
NATURE OF RETAIL OUTLET
bull CHOCOLATES ARE PRIMARILY SOLD THROUGH KIRANA STORES GIFT STORES MEDICAL STORES CANTEENS
bull PAN-BIDI STORES BAKERIES SWEET SHOPS ETC THIS IS TRUE FOR CHOCOLATES ALSO THE SPACE ALLOCATED FOR
bull THE CHOCOLATES WAS LESS WHEN COMPARED TO THE TOTAL AREA OF THE SHOP OF THE SPACE ALLOCATED FOR
bull CHOCOLATES CADBURY BRANDS OCCUPIED MORE THAN NESTLE BRANDS
PROMOTIONbull ADVERTISEMENTSbull THE ADVERTISEMENT AIMED AT CONVEYING THE IDEA THAT NO
SPECIFIC OCCASION IS REQUIRED FOR CONSUMING CDM
bull CELEBRITIES ENDORSEMENTS
bull CADBURY ROPED IN PREITY ZINTA FOR ITS PERK BRAND PREITY ZINTArsquoS ANGELIC DIMPLES LAID THE
bull FOUNDATION FOR WHAT WOULD BECOME THE INDIAN TEENAGERrsquoS FAVORITE SNACK AFTER THIS CAMPAIGN
bull PERKrsquoS SALE SURGED
bull THE BIG lsquoBrsquo FACTORbull THE BIG FACTOR THAT HAS PUSHED UP CDM SALES IS THE
AMITABH BACHCHAN CAMPAIGN CADBURY APPOINTED AMITABH BACHCHAN AS ITS BRAND AMBASSADOR
CHOCOLATE ADS SHIFT FOCUS FROM KIDS TO YOUTH
bull INDIAN CHOCOLATE MARKET IS ALMOST TOTALLY DEPENDED ON PURCHASES OF KIDS
bull WHILE CADBURY IS TRYING TO SELL INDULGENCE TO ADULTS KIT KAT IS SELLING RITUALISTIC BREAK TO
bull TEENAGERS YOUNG ADULTS THIS IS REFLECTED IN THE CHANGING ADVERTISING PATTERNS ACROSS DIFFERENT
bull CHANNELS
CONCLUSION WHEN PRICED AT EVEN RS 2500KG WHILE THERE ARE PLACES IN
INDIA WHERE PEOPLE HAVE NEVER EVEN TASTED CHOCOLATES ONCEUNDERSTANDING THE CONSUMER DEMANDS AND MAINTAINING THE QUALITY WILL BE ESSENTIALCOMPANIES WILL HAVE TO KEEP THEMSELVES ABREAST WITH THE DEVELOPMENTS IN OTHER PARTS OF THE WORLDPRICING IS THE KEY FOR COMPANIES TO MAKE THEIR PRODUCT REACH CONSUMERSrsquo POCKETS RIGHTPRICING WILL MAKE OR BREAK THE PRODUCT SUCCESS ECONOMICAL DISTRIBUTION OF THE PRODUCTS WILLALSO BE EQUALLY IMPORTANTTHE COMPANIESrsquo STRATEGIES SHOULD FOCUS ON DRIVING SALES THROUGH A RIGHT PRODUCT MIXEFFICIENT MATERIALS PROCUREMENT REDUCED WASTAGES INCREASED FACTORY EFFICIENCIES AND IMPROVED SUPPLY CHAIN MANAGEMENTTHERErsquoS AN IMMENSE SCOPE FOR GROWTH OF CHOCOLATE INDUSTRY IN INDIA - GEOGRAPHICALLY AS WELLAS IN THE PRODUCT OFFERING
BIBLIOGRAPHY
bull WWWCADBURYCOUKbull WWWCHOCOLATEREVIEWCOUKbull WWW CADBURYS CHWEPPESCOMbull WWWWIKIPEDIAORGbull WWWCADBURYCOMbull WWWOPPAPERSCOM REFERENCES-bull PHILIP KOTLER
- BY RAGHAVENDRA MISHRA
- INTRODUCTION
- HISTORY
- MARKETING OBJECTIVES
- TARGET MARKET
- MARKET SEGMENTATION
- GEOGRAPHIC SEGMENTATION
- DEMOGRAPHIC SEGMENTATION
- MARKETING MIX
- PRODUCT
- PRODUCT INNOVATIONS
- PACKAGING
- PRICE
- VOLUME LED GROWTH STRATEGY
- HIRES AT KEARNEY TO CURB COSTS
- EARNINGS SENSITIVITY FACTORS
- PLACE
- DISTRIBUTION
- NATURE OF RETAIL OUTLET
- PROMOTION
- CHOCOLATE ADS SHIFT FOCUS FROM KIDS TO YOUTH
- CONCLUSION
- BIBLIOGRAPHY
-
MARKET SEGMENTATION
bull MARKET SEGMENTATION IS THE PROCESS IN MARKETING OF GROUPING A MARKET (IE CUSTOMERS) INTO SMALLER SUBGROUPS THESE MARKETS ARE OFTEN TERMED NICHE MARKETS OR SPECIALTY MARKETS
bull THE PURPOSE OF SEGMENTATION IS TO IDENTIFY AND TARGET PRIME CUSTOMER GROUPS (EG THE 20 THAT ACCOUNT FOR 80 OF YOUR SALES) SO THAT YOU GET THE MAXIMUM RETURN FROM A LIMITED MARKETING BUDGET
GEOGRAPHIC SEGMENTATION
bull THE MARKET PRESENTLY HAS CLOSE TO 60MN CONSUMERS AND THEY ARE MAINLY LOCATED IN THE
bull URBAN AREAS GROWTH WILL MAINLY COME THROUGH AN INCREASE IN PENETRATION AS INCOME LEVELS IMPROVE
bull HOWEVER ALMOST ALL OF THIS CONSUMPTION IS IN THE CITIES AND RURAL INDIA IS NEARLY lsquoCHOCOLATE-FREErsquo BUT THE FACT IS THAT THREE QUARTERS OF INDIANS LIVE IN RURAL AREAS ldquoAVERAGE SUMMERTIME TEMPERATURES REACH 43 DEGREES CELSIUS IN INDIA CHOCOLATE MELTS AT BODY TEMPERATURE OF 36 DEGREESrdquo
DEMOGRAPHIC SEGMENTATION
AGE-
bull CHILDREN - 55
bull ADULTS - 12
bull YOUNG ADULTS - 33
bull INCOME LEVEL- IN THE MIDDLE AND HIGHER INCOME GROUPS
MARKETING MIX
bull THE TOOLS AVAILABLE TO A BUSINESS TO GAIN THE REACTION IT IS SEEKING FROM ITS TARGET MARKET IN RELATION TO ITS MARKETING OBJECTIVES IT IS THE GENERALLY ACCEPTED AS THE USE AND SPECIFICATION OF THE ldquoFOUR PrsquoSrdquo DESCRIBING THE STRATEGIC POSITION OF A PRODUCT IN THE MARKETPLACE
bull PRODUCTbull PRICEbull PLACEbull PROMOTION
PRODUCT
bull PRODUCT VARIANTS bull CURRENTLY CADBURY INDIA OPERATES IN
FOUR CATEGORIES VIZ CHOCOLATE CONFECTIONERY MILK FOOD DRINKS CANDY AND GUM CATEGORY
bull CADBURY DAIRY MILK 5 STAR PERK EacuteCLAIRS AND CELEBRATIONS
bull CANDY CATEGORY HALLSbull BUBBLE GUM BRAND BUBBALOObull BOURNVITA - THE LEADING MALTED FOOD
DRINK (MFD)
PRODUCT INNOVATIONS bull 1048766 5 STAR
bull CONSUMER FEEDBACK SUGGESTED THAT THE OLD 5 STAR WAS TOO CHEWY AND PEOPLE COMPLAINED OF IT STICKING TO THEIR TEETH IT WAS MADE SOFTER AND MELTED EASILY IN THE MOUTH amp INTRODUCED AS 5 STAR CRUNCHY
bull 1048766 PERK
bull PERK WAS MADE MUCH LIGHTER AND THE SIZE OF THE BAR INCREASED TO MATCH NESTLErsquoS MUNCH PERK HAD BEEN UNDER FIRE FROM NESTLErsquoS DEADLY DUO OF KITKAT AND MUNCH BUT AFTER THE RELAUNCH ITS MARKETSHARE IS TWO PER CENT MORE THAN KITKATrsquoS AND THE FIVE-YEAR-OLD BRAND IS NOW ALMOST AS BIG AS THE DECADES-OLD 5 STAR IN SIZE BOTH IN THE REGION OF RS 50-55 CRORE
bull 1048766 HEROES
bull PACKAGING INNOVATION HAS PLAYED A VITAL ROLE IN REVAMPING OF VARIOUS CADBURYrsquoS BRANDSHEROES BRAND IS SIMPLY A MULTI-PACK WITH MINIATURES OF ALL ITS MOST POPULAR BRANDS IN A SINGLEOUTER CASE
PACKAGINGbull
THE PACKAGING WAS CHANGED TO INCLUDE A SEALED PLASTIC WRAPPER INSIDE THE OUTSIDE FOIL CADBURYrsquoS LAUNCHED A NEW PURITY-SEALED PACKAGING FOR ITS FLAGSHIP PRODUCT CADBURY DAIRY MILK OVER THE NEXT FEW WEEKS CADBURY WILL WORK TOWARDS INTRODUCING EITHER A HEATSEALED OR A FLOW-PACK PACKAGING THAT OFFERS A HIGH LEVEL OF RESISTANCE TO INFESTATION FROM
bull IMPROPER STORAGE CADBURY INVESTED NEARLY RS 25 CRORE (RS 250 MILLION) THIS YEAR ON NEW MACHINERY FOR THE IMPROVED PACKAGING
PRICE
bull THE RS 5 PRICE POINT ACCOUNTS FOR MORE THAN HALF OF ALL CHOCOLATE SALES
bull TODAY CADBURY HAS FOUR PRODUCTS AT THIS PRICE POINT CDM PERK 5 STAR AND GEMS mdash AND THE FIVE-RUPEE CDM BAR IS ITS SINGLE LARGEST-SELLING SKU
bull ldquoTHIS IS A POTENT PRICE POINT IN INDIA BECAUSE THE AVERAGE PURCHASING POWER IS ABYSMALLY LOWrdquo IS WHAT INDUSTRY ANALYST HAVE TO SAY
VOLUME LED GROWTH STRATEGY
bull CADBURY HAS FOLLOWED A WELL-PLANNED STRATEGY OF FUELLING VOLUME GROWTH BY INTRODUCING SMALLER UNIT PACKS AT LOWER PRICE POINTS SIMULTANEOUSLY THE COMPANY SEEMS TO HAVE ASTUTELY JUGGLED WITH THE LARGER PACK SIZES AND RAISED PRICES TO A DEGREE HIGHER THAN WHAT APPEARS AT FACE
HIRES AT KEARNEY TO CURB COSTS
bull CADBURY INDIA APPOINTED MANAGEMENT CONSULTANCY FIRM AT KEARNEY TO DRAW UP A STRATEGY TO CONTROL COSTS IN SEVERAL AREAS INCLUDING SOURCING OF RAW MATERIALS AND PACKAGING
bull THE CONSULTANCY FIRM WILL ALSO LOOK AT THE SOURCING OF DIRECT AND INDIRECT MATERIALS LIKE RENEGOTIATING WITH SUPPLIERS FOR LONGER TERM CONTRACTS AND VENDOR MANAGEMENT OTHER COSTS (INDIRECT EXPENSES) LIKE TRAVEL COSTS AND HOTELS WERE ALSO BEING STUDIED
EARNINGS SENSITIVITY FACTORS
bull COCOA BEAN PRICES DOMESTIC AS WELL AS INTERNATIONAL PRICES OF KEY RAW MATERIAL - COCOA HAVE SIGNIFICANT IMPACT ON MARGINS
bull EXCISE DUTIES CHANGES IN EXCISE LEVIED ON MALT AND CHOCOLATE INFLUENCES END PRODUCT PRICES AND THEREBY VOLUME GROWTH AS WELL AS MARGINS
bull CHANGES IN CUSTOM DUTIES AND FOREIGN EXCHANGE FLUCTUATION AS 20 OF RAW MATERIAL IS IMPORTED CHANGES IN CUSTOM DUTIES amp FOREIGN EXCHANGE FLUCTUATIONS HAVE SIGNIFICANT IMPACT ON THE FINAL COST OF THE PRODUCT
bull COMPETITION FROM MNCS LIKE NESTLE AS WELL AS IMPORTED BRANDS INCREASING COMPETITION PUTS PRESSURE ON ADVERTISEMENT BUDGET AND MARGINS HOWEVER ON THE POSITIVE SIDE IT HELPS IN EXPANDING THE MARKET
PLACE
bull PLANT LOCATIONSbull IN INDIA CADBURY BEGAN ITS OPERATIONS IN
1948 BY IMPORTING CHOCOLATES AFTER 60 YEARS OF EXISTENCE IT TODAY HAS FIVE COMPANY-OWNED MANUFACTURING FACILITIES AT THANE INDURI (PUNE) AND MALANPUR (GWALIOR) BANGALORE AND BADDI (HIMACHAL PRADESH) AND 4 SALES OFFICES (NEW DELHI MUMBAI KOLKOTA AND CHENNAI) THE CORPORATE OFFICE IS IN MUMBAITHESE FACTORIES CHURN OUT CLOSE TO 8000 TONNES OF CHOCOLATE ANNUALLY
DISTRIBUTIONbull CHOCOLATE NEEDS TO BE DISTRIBUTED DIRECTLY UNLIKE
OTHER FMCG PRODUCTS LIKE SOAPS ANDbull DETERGENTS WHICH CAN BE SOLD THROUGH A
WHOLESALE NETWORK 90 OF CHOCOLATE PRODUCTS ARE SOLD
bull DIRECTLY TO RETAILERS bull CADBURYS DISTRIBUTION NETWORK USED TO
ENCOMPASSES 2100 DISTRIBUTORS AND 450000 RETAILERS bull TO AVOID CANNIBALIZATION OF ITS HIGHER PRICED
PRODUCTS FROM LOWER PRICED ONES CADBURY ISbull SETTING UP TWO SEPARATE DISTRIBUTION CHANNELS ndash
ONE FOR CORE BUSINESS amp OTHER FOR MASS MARKETS
NATURE OF RETAIL OUTLET
bull CHOCOLATES ARE PRIMARILY SOLD THROUGH KIRANA STORES GIFT STORES MEDICAL STORES CANTEENS
bull PAN-BIDI STORES BAKERIES SWEET SHOPS ETC THIS IS TRUE FOR CHOCOLATES ALSO THE SPACE ALLOCATED FOR
bull THE CHOCOLATES WAS LESS WHEN COMPARED TO THE TOTAL AREA OF THE SHOP OF THE SPACE ALLOCATED FOR
bull CHOCOLATES CADBURY BRANDS OCCUPIED MORE THAN NESTLE BRANDS
PROMOTIONbull ADVERTISEMENTSbull THE ADVERTISEMENT AIMED AT CONVEYING THE IDEA THAT NO
SPECIFIC OCCASION IS REQUIRED FOR CONSUMING CDM
bull CELEBRITIES ENDORSEMENTS
bull CADBURY ROPED IN PREITY ZINTA FOR ITS PERK BRAND PREITY ZINTArsquoS ANGELIC DIMPLES LAID THE
bull FOUNDATION FOR WHAT WOULD BECOME THE INDIAN TEENAGERrsquoS FAVORITE SNACK AFTER THIS CAMPAIGN
bull PERKrsquoS SALE SURGED
bull THE BIG lsquoBrsquo FACTORbull THE BIG FACTOR THAT HAS PUSHED UP CDM SALES IS THE
AMITABH BACHCHAN CAMPAIGN CADBURY APPOINTED AMITABH BACHCHAN AS ITS BRAND AMBASSADOR
CHOCOLATE ADS SHIFT FOCUS FROM KIDS TO YOUTH
bull INDIAN CHOCOLATE MARKET IS ALMOST TOTALLY DEPENDED ON PURCHASES OF KIDS
bull WHILE CADBURY IS TRYING TO SELL INDULGENCE TO ADULTS KIT KAT IS SELLING RITUALISTIC BREAK TO
bull TEENAGERS YOUNG ADULTS THIS IS REFLECTED IN THE CHANGING ADVERTISING PATTERNS ACROSS DIFFERENT
bull CHANNELS
CONCLUSION WHEN PRICED AT EVEN RS 2500KG WHILE THERE ARE PLACES IN
INDIA WHERE PEOPLE HAVE NEVER EVEN TASTED CHOCOLATES ONCEUNDERSTANDING THE CONSUMER DEMANDS AND MAINTAINING THE QUALITY WILL BE ESSENTIALCOMPANIES WILL HAVE TO KEEP THEMSELVES ABREAST WITH THE DEVELOPMENTS IN OTHER PARTS OF THE WORLDPRICING IS THE KEY FOR COMPANIES TO MAKE THEIR PRODUCT REACH CONSUMERSrsquo POCKETS RIGHTPRICING WILL MAKE OR BREAK THE PRODUCT SUCCESS ECONOMICAL DISTRIBUTION OF THE PRODUCTS WILLALSO BE EQUALLY IMPORTANTTHE COMPANIESrsquo STRATEGIES SHOULD FOCUS ON DRIVING SALES THROUGH A RIGHT PRODUCT MIXEFFICIENT MATERIALS PROCUREMENT REDUCED WASTAGES INCREASED FACTORY EFFICIENCIES AND IMPROVED SUPPLY CHAIN MANAGEMENTTHERErsquoS AN IMMENSE SCOPE FOR GROWTH OF CHOCOLATE INDUSTRY IN INDIA - GEOGRAPHICALLY AS WELLAS IN THE PRODUCT OFFERING
BIBLIOGRAPHY
bull WWWCADBURYCOUKbull WWWCHOCOLATEREVIEWCOUKbull WWW CADBURYS CHWEPPESCOMbull WWWWIKIPEDIAORGbull WWWCADBURYCOMbull WWWOPPAPERSCOM REFERENCES-bull PHILIP KOTLER
- BY RAGHAVENDRA MISHRA
- INTRODUCTION
- HISTORY
- MARKETING OBJECTIVES
- TARGET MARKET
- MARKET SEGMENTATION
- GEOGRAPHIC SEGMENTATION
- DEMOGRAPHIC SEGMENTATION
- MARKETING MIX
- PRODUCT
- PRODUCT INNOVATIONS
- PACKAGING
- PRICE
- VOLUME LED GROWTH STRATEGY
- HIRES AT KEARNEY TO CURB COSTS
- EARNINGS SENSITIVITY FACTORS
- PLACE
- DISTRIBUTION
- NATURE OF RETAIL OUTLET
- PROMOTION
- CHOCOLATE ADS SHIFT FOCUS FROM KIDS TO YOUTH
- CONCLUSION
- BIBLIOGRAPHY
-
GEOGRAPHIC SEGMENTATION
bull THE MARKET PRESENTLY HAS CLOSE TO 60MN CONSUMERS AND THEY ARE MAINLY LOCATED IN THE
bull URBAN AREAS GROWTH WILL MAINLY COME THROUGH AN INCREASE IN PENETRATION AS INCOME LEVELS IMPROVE
bull HOWEVER ALMOST ALL OF THIS CONSUMPTION IS IN THE CITIES AND RURAL INDIA IS NEARLY lsquoCHOCOLATE-FREErsquo BUT THE FACT IS THAT THREE QUARTERS OF INDIANS LIVE IN RURAL AREAS ldquoAVERAGE SUMMERTIME TEMPERATURES REACH 43 DEGREES CELSIUS IN INDIA CHOCOLATE MELTS AT BODY TEMPERATURE OF 36 DEGREESrdquo
DEMOGRAPHIC SEGMENTATION
AGE-
bull CHILDREN - 55
bull ADULTS - 12
bull YOUNG ADULTS - 33
bull INCOME LEVEL- IN THE MIDDLE AND HIGHER INCOME GROUPS
MARKETING MIX
bull THE TOOLS AVAILABLE TO A BUSINESS TO GAIN THE REACTION IT IS SEEKING FROM ITS TARGET MARKET IN RELATION TO ITS MARKETING OBJECTIVES IT IS THE GENERALLY ACCEPTED AS THE USE AND SPECIFICATION OF THE ldquoFOUR PrsquoSrdquo DESCRIBING THE STRATEGIC POSITION OF A PRODUCT IN THE MARKETPLACE
bull PRODUCTbull PRICEbull PLACEbull PROMOTION
PRODUCT
bull PRODUCT VARIANTS bull CURRENTLY CADBURY INDIA OPERATES IN
FOUR CATEGORIES VIZ CHOCOLATE CONFECTIONERY MILK FOOD DRINKS CANDY AND GUM CATEGORY
bull CADBURY DAIRY MILK 5 STAR PERK EacuteCLAIRS AND CELEBRATIONS
bull CANDY CATEGORY HALLSbull BUBBLE GUM BRAND BUBBALOObull BOURNVITA - THE LEADING MALTED FOOD
DRINK (MFD)
PRODUCT INNOVATIONS bull 1048766 5 STAR
bull CONSUMER FEEDBACK SUGGESTED THAT THE OLD 5 STAR WAS TOO CHEWY AND PEOPLE COMPLAINED OF IT STICKING TO THEIR TEETH IT WAS MADE SOFTER AND MELTED EASILY IN THE MOUTH amp INTRODUCED AS 5 STAR CRUNCHY
bull 1048766 PERK
bull PERK WAS MADE MUCH LIGHTER AND THE SIZE OF THE BAR INCREASED TO MATCH NESTLErsquoS MUNCH PERK HAD BEEN UNDER FIRE FROM NESTLErsquoS DEADLY DUO OF KITKAT AND MUNCH BUT AFTER THE RELAUNCH ITS MARKETSHARE IS TWO PER CENT MORE THAN KITKATrsquoS AND THE FIVE-YEAR-OLD BRAND IS NOW ALMOST AS BIG AS THE DECADES-OLD 5 STAR IN SIZE BOTH IN THE REGION OF RS 50-55 CRORE
bull 1048766 HEROES
bull PACKAGING INNOVATION HAS PLAYED A VITAL ROLE IN REVAMPING OF VARIOUS CADBURYrsquoS BRANDSHEROES BRAND IS SIMPLY A MULTI-PACK WITH MINIATURES OF ALL ITS MOST POPULAR BRANDS IN A SINGLEOUTER CASE
PACKAGINGbull
THE PACKAGING WAS CHANGED TO INCLUDE A SEALED PLASTIC WRAPPER INSIDE THE OUTSIDE FOIL CADBURYrsquoS LAUNCHED A NEW PURITY-SEALED PACKAGING FOR ITS FLAGSHIP PRODUCT CADBURY DAIRY MILK OVER THE NEXT FEW WEEKS CADBURY WILL WORK TOWARDS INTRODUCING EITHER A HEATSEALED OR A FLOW-PACK PACKAGING THAT OFFERS A HIGH LEVEL OF RESISTANCE TO INFESTATION FROM
bull IMPROPER STORAGE CADBURY INVESTED NEARLY RS 25 CRORE (RS 250 MILLION) THIS YEAR ON NEW MACHINERY FOR THE IMPROVED PACKAGING
PRICE
bull THE RS 5 PRICE POINT ACCOUNTS FOR MORE THAN HALF OF ALL CHOCOLATE SALES
bull TODAY CADBURY HAS FOUR PRODUCTS AT THIS PRICE POINT CDM PERK 5 STAR AND GEMS mdash AND THE FIVE-RUPEE CDM BAR IS ITS SINGLE LARGEST-SELLING SKU
bull ldquoTHIS IS A POTENT PRICE POINT IN INDIA BECAUSE THE AVERAGE PURCHASING POWER IS ABYSMALLY LOWrdquo IS WHAT INDUSTRY ANALYST HAVE TO SAY
VOLUME LED GROWTH STRATEGY
bull CADBURY HAS FOLLOWED A WELL-PLANNED STRATEGY OF FUELLING VOLUME GROWTH BY INTRODUCING SMALLER UNIT PACKS AT LOWER PRICE POINTS SIMULTANEOUSLY THE COMPANY SEEMS TO HAVE ASTUTELY JUGGLED WITH THE LARGER PACK SIZES AND RAISED PRICES TO A DEGREE HIGHER THAN WHAT APPEARS AT FACE
HIRES AT KEARNEY TO CURB COSTS
bull CADBURY INDIA APPOINTED MANAGEMENT CONSULTANCY FIRM AT KEARNEY TO DRAW UP A STRATEGY TO CONTROL COSTS IN SEVERAL AREAS INCLUDING SOURCING OF RAW MATERIALS AND PACKAGING
bull THE CONSULTANCY FIRM WILL ALSO LOOK AT THE SOURCING OF DIRECT AND INDIRECT MATERIALS LIKE RENEGOTIATING WITH SUPPLIERS FOR LONGER TERM CONTRACTS AND VENDOR MANAGEMENT OTHER COSTS (INDIRECT EXPENSES) LIKE TRAVEL COSTS AND HOTELS WERE ALSO BEING STUDIED
EARNINGS SENSITIVITY FACTORS
bull COCOA BEAN PRICES DOMESTIC AS WELL AS INTERNATIONAL PRICES OF KEY RAW MATERIAL - COCOA HAVE SIGNIFICANT IMPACT ON MARGINS
bull EXCISE DUTIES CHANGES IN EXCISE LEVIED ON MALT AND CHOCOLATE INFLUENCES END PRODUCT PRICES AND THEREBY VOLUME GROWTH AS WELL AS MARGINS
bull CHANGES IN CUSTOM DUTIES AND FOREIGN EXCHANGE FLUCTUATION AS 20 OF RAW MATERIAL IS IMPORTED CHANGES IN CUSTOM DUTIES amp FOREIGN EXCHANGE FLUCTUATIONS HAVE SIGNIFICANT IMPACT ON THE FINAL COST OF THE PRODUCT
bull COMPETITION FROM MNCS LIKE NESTLE AS WELL AS IMPORTED BRANDS INCREASING COMPETITION PUTS PRESSURE ON ADVERTISEMENT BUDGET AND MARGINS HOWEVER ON THE POSITIVE SIDE IT HELPS IN EXPANDING THE MARKET
PLACE
bull PLANT LOCATIONSbull IN INDIA CADBURY BEGAN ITS OPERATIONS IN
1948 BY IMPORTING CHOCOLATES AFTER 60 YEARS OF EXISTENCE IT TODAY HAS FIVE COMPANY-OWNED MANUFACTURING FACILITIES AT THANE INDURI (PUNE) AND MALANPUR (GWALIOR) BANGALORE AND BADDI (HIMACHAL PRADESH) AND 4 SALES OFFICES (NEW DELHI MUMBAI KOLKOTA AND CHENNAI) THE CORPORATE OFFICE IS IN MUMBAITHESE FACTORIES CHURN OUT CLOSE TO 8000 TONNES OF CHOCOLATE ANNUALLY
DISTRIBUTIONbull CHOCOLATE NEEDS TO BE DISTRIBUTED DIRECTLY UNLIKE
OTHER FMCG PRODUCTS LIKE SOAPS ANDbull DETERGENTS WHICH CAN BE SOLD THROUGH A
WHOLESALE NETWORK 90 OF CHOCOLATE PRODUCTS ARE SOLD
bull DIRECTLY TO RETAILERS bull CADBURYS DISTRIBUTION NETWORK USED TO
ENCOMPASSES 2100 DISTRIBUTORS AND 450000 RETAILERS bull TO AVOID CANNIBALIZATION OF ITS HIGHER PRICED
PRODUCTS FROM LOWER PRICED ONES CADBURY ISbull SETTING UP TWO SEPARATE DISTRIBUTION CHANNELS ndash
ONE FOR CORE BUSINESS amp OTHER FOR MASS MARKETS
NATURE OF RETAIL OUTLET
bull CHOCOLATES ARE PRIMARILY SOLD THROUGH KIRANA STORES GIFT STORES MEDICAL STORES CANTEENS
bull PAN-BIDI STORES BAKERIES SWEET SHOPS ETC THIS IS TRUE FOR CHOCOLATES ALSO THE SPACE ALLOCATED FOR
bull THE CHOCOLATES WAS LESS WHEN COMPARED TO THE TOTAL AREA OF THE SHOP OF THE SPACE ALLOCATED FOR
bull CHOCOLATES CADBURY BRANDS OCCUPIED MORE THAN NESTLE BRANDS
PROMOTIONbull ADVERTISEMENTSbull THE ADVERTISEMENT AIMED AT CONVEYING THE IDEA THAT NO
SPECIFIC OCCASION IS REQUIRED FOR CONSUMING CDM
bull CELEBRITIES ENDORSEMENTS
bull CADBURY ROPED IN PREITY ZINTA FOR ITS PERK BRAND PREITY ZINTArsquoS ANGELIC DIMPLES LAID THE
bull FOUNDATION FOR WHAT WOULD BECOME THE INDIAN TEENAGERrsquoS FAVORITE SNACK AFTER THIS CAMPAIGN
bull PERKrsquoS SALE SURGED
bull THE BIG lsquoBrsquo FACTORbull THE BIG FACTOR THAT HAS PUSHED UP CDM SALES IS THE
AMITABH BACHCHAN CAMPAIGN CADBURY APPOINTED AMITABH BACHCHAN AS ITS BRAND AMBASSADOR
CHOCOLATE ADS SHIFT FOCUS FROM KIDS TO YOUTH
bull INDIAN CHOCOLATE MARKET IS ALMOST TOTALLY DEPENDED ON PURCHASES OF KIDS
bull WHILE CADBURY IS TRYING TO SELL INDULGENCE TO ADULTS KIT KAT IS SELLING RITUALISTIC BREAK TO
bull TEENAGERS YOUNG ADULTS THIS IS REFLECTED IN THE CHANGING ADVERTISING PATTERNS ACROSS DIFFERENT
bull CHANNELS
CONCLUSION WHEN PRICED AT EVEN RS 2500KG WHILE THERE ARE PLACES IN
INDIA WHERE PEOPLE HAVE NEVER EVEN TASTED CHOCOLATES ONCEUNDERSTANDING THE CONSUMER DEMANDS AND MAINTAINING THE QUALITY WILL BE ESSENTIALCOMPANIES WILL HAVE TO KEEP THEMSELVES ABREAST WITH THE DEVELOPMENTS IN OTHER PARTS OF THE WORLDPRICING IS THE KEY FOR COMPANIES TO MAKE THEIR PRODUCT REACH CONSUMERSrsquo POCKETS RIGHTPRICING WILL MAKE OR BREAK THE PRODUCT SUCCESS ECONOMICAL DISTRIBUTION OF THE PRODUCTS WILLALSO BE EQUALLY IMPORTANTTHE COMPANIESrsquo STRATEGIES SHOULD FOCUS ON DRIVING SALES THROUGH A RIGHT PRODUCT MIXEFFICIENT MATERIALS PROCUREMENT REDUCED WASTAGES INCREASED FACTORY EFFICIENCIES AND IMPROVED SUPPLY CHAIN MANAGEMENTTHERErsquoS AN IMMENSE SCOPE FOR GROWTH OF CHOCOLATE INDUSTRY IN INDIA - GEOGRAPHICALLY AS WELLAS IN THE PRODUCT OFFERING
BIBLIOGRAPHY
bull WWWCADBURYCOUKbull WWWCHOCOLATEREVIEWCOUKbull WWW CADBURYS CHWEPPESCOMbull WWWWIKIPEDIAORGbull WWWCADBURYCOMbull WWWOPPAPERSCOM REFERENCES-bull PHILIP KOTLER
- BY RAGHAVENDRA MISHRA
- INTRODUCTION
- HISTORY
- MARKETING OBJECTIVES
- TARGET MARKET
- MARKET SEGMENTATION
- GEOGRAPHIC SEGMENTATION
- DEMOGRAPHIC SEGMENTATION
- MARKETING MIX
- PRODUCT
- PRODUCT INNOVATIONS
- PACKAGING
- PRICE
- VOLUME LED GROWTH STRATEGY
- HIRES AT KEARNEY TO CURB COSTS
- EARNINGS SENSITIVITY FACTORS
- PLACE
- DISTRIBUTION
- NATURE OF RETAIL OUTLET
- PROMOTION
- CHOCOLATE ADS SHIFT FOCUS FROM KIDS TO YOUTH
- CONCLUSION
- BIBLIOGRAPHY
-
DEMOGRAPHIC SEGMENTATION
AGE-
bull CHILDREN - 55
bull ADULTS - 12
bull YOUNG ADULTS - 33
bull INCOME LEVEL- IN THE MIDDLE AND HIGHER INCOME GROUPS
MARKETING MIX
bull THE TOOLS AVAILABLE TO A BUSINESS TO GAIN THE REACTION IT IS SEEKING FROM ITS TARGET MARKET IN RELATION TO ITS MARKETING OBJECTIVES IT IS THE GENERALLY ACCEPTED AS THE USE AND SPECIFICATION OF THE ldquoFOUR PrsquoSrdquo DESCRIBING THE STRATEGIC POSITION OF A PRODUCT IN THE MARKETPLACE
bull PRODUCTbull PRICEbull PLACEbull PROMOTION
PRODUCT
bull PRODUCT VARIANTS bull CURRENTLY CADBURY INDIA OPERATES IN
FOUR CATEGORIES VIZ CHOCOLATE CONFECTIONERY MILK FOOD DRINKS CANDY AND GUM CATEGORY
bull CADBURY DAIRY MILK 5 STAR PERK EacuteCLAIRS AND CELEBRATIONS
bull CANDY CATEGORY HALLSbull BUBBLE GUM BRAND BUBBALOObull BOURNVITA - THE LEADING MALTED FOOD
DRINK (MFD)
PRODUCT INNOVATIONS bull 1048766 5 STAR
bull CONSUMER FEEDBACK SUGGESTED THAT THE OLD 5 STAR WAS TOO CHEWY AND PEOPLE COMPLAINED OF IT STICKING TO THEIR TEETH IT WAS MADE SOFTER AND MELTED EASILY IN THE MOUTH amp INTRODUCED AS 5 STAR CRUNCHY
bull 1048766 PERK
bull PERK WAS MADE MUCH LIGHTER AND THE SIZE OF THE BAR INCREASED TO MATCH NESTLErsquoS MUNCH PERK HAD BEEN UNDER FIRE FROM NESTLErsquoS DEADLY DUO OF KITKAT AND MUNCH BUT AFTER THE RELAUNCH ITS MARKETSHARE IS TWO PER CENT MORE THAN KITKATrsquoS AND THE FIVE-YEAR-OLD BRAND IS NOW ALMOST AS BIG AS THE DECADES-OLD 5 STAR IN SIZE BOTH IN THE REGION OF RS 50-55 CRORE
bull 1048766 HEROES
bull PACKAGING INNOVATION HAS PLAYED A VITAL ROLE IN REVAMPING OF VARIOUS CADBURYrsquoS BRANDSHEROES BRAND IS SIMPLY A MULTI-PACK WITH MINIATURES OF ALL ITS MOST POPULAR BRANDS IN A SINGLEOUTER CASE
PACKAGINGbull
THE PACKAGING WAS CHANGED TO INCLUDE A SEALED PLASTIC WRAPPER INSIDE THE OUTSIDE FOIL CADBURYrsquoS LAUNCHED A NEW PURITY-SEALED PACKAGING FOR ITS FLAGSHIP PRODUCT CADBURY DAIRY MILK OVER THE NEXT FEW WEEKS CADBURY WILL WORK TOWARDS INTRODUCING EITHER A HEATSEALED OR A FLOW-PACK PACKAGING THAT OFFERS A HIGH LEVEL OF RESISTANCE TO INFESTATION FROM
bull IMPROPER STORAGE CADBURY INVESTED NEARLY RS 25 CRORE (RS 250 MILLION) THIS YEAR ON NEW MACHINERY FOR THE IMPROVED PACKAGING
PRICE
bull THE RS 5 PRICE POINT ACCOUNTS FOR MORE THAN HALF OF ALL CHOCOLATE SALES
bull TODAY CADBURY HAS FOUR PRODUCTS AT THIS PRICE POINT CDM PERK 5 STAR AND GEMS mdash AND THE FIVE-RUPEE CDM BAR IS ITS SINGLE LARGEST-SELLING SKU
bull ldquoTHIS IS A POTENT PRICE POINT IN INDIA BECAUSE THE AVERAGE PURCHASING POWER IS ABYSMALLY LOWrdquo IS WHAT INDUSTRY ANALYST HAVE TO SAY
VOLUME LED GROWTH STRATEGY
bull CADBURY HAS FOLLOWED A WELL-PLANNED STRATEGY OF FUELLING VOLUME GROWTH BY INTRODUCING SMALLER UNIT PACKS AT LOWER PRICE POINTS SIMULTANEOUSLY THE COMPANY SEEMS TO HAVE ASTUTELY JUGGLED WITH THE LARGER PACK SIZES AND RAISED PRICES TO A DEGREE HIGHER THAN WHAT APPEARS AT FACE
HIRES AT KEARNEY TO CURB COSTS
bull CADBURY INDIA APPOINTED MANAGEMENT CONSULTANCY FIRM AT KEARNEY TO DRAW UP A STRATEGY TO CONTROL COSTS IN SEVERAL AREAS INCLUDING SOURCING OF RAW MATERIALS AND PACKAGING
bull THE CONSULTANCY FIRM WILL ALSO LOOK AT THE SOURCING OF DIRECT AND INDIRECT MATERIALS LIKE RENEGOTIATING WITH SUPPLIERS FOR LONGER TERM CONTRACTS AND VENDOR MANAGEMENT OTHER COSTS (INDIRECT EXPENSES) LIKE TRAVEL COSTS AND HOTELS WERE ALSO BEING STUDIED
EARNINGS SENSITIVITY FACTORS
bull COCOA BEAN PRICES DOMESTIC AS WELL AS INTERNATIONAL PRICES OF KEY RAW MATERIAL - COCOA HAVE SIGNIFICANT IMPACT ON MARGINS
bull EXCISE DUTIES CHANGES IN EXCISE LEVIED ON MALT AND CHOCOLATE INFLUENCES END PRODUCT PRICES AND THEREBY VOLUME GROWTH AS WELL AS MARGINS
bull CHANGES IN CUSTOM DUTIES AND FOREIGN EXCHANGE FLUCTUATION AS 20 OF RAW MATERIAL IS IMPORTED CHANGES IN CUSTOM DUTIES amp FOREIGN EXCHANGE FLUCTUATIONS HAVE SIGNIFICANT IMPACT ON THE FINAL COST OF THE PRODUCT
bull COMPETITION FROM MNCS LIKE NESTLE AS WELL AS IMPORTED BRANDS INCREASING COMPETITION PUTS PRESSURE ON ADVERTISEMENT BUDGET AND MARGINS HOWEVER ON THE POSITIVE SIDE IT HELPS IN EXPANDING THE MARKET
PLACE
bull PLANT LOCATIONSbull IN INDIA CADBURY BEGAN ITS OPERATIONS IN
1948 BY IMPORTING CHOCOLATES AFTER 60 YEARS OF EXISTENCE IT TODAY HAS FIVE COMPANY-OWNED MANUFACTURING FACILITIES AT THANE INDURI (PUNE) AND MALANPUR (GWALIOR) BANGALORE AND BADDI (HIMACHAL PRADESH) AND 4 SALES OFFICES (NEW DELHI MUMBAI KOLKOTA AND CHENNAI) THE CORPORATE OFFICE IS IN MUMBAITHESE FACTORIES CHURN OUT CLOSE TO 8000 TONNES OF CHOCOLATE ANNUALLY
DISTRIBUTIONbull CHOCOLATE NEEDS TO BE DISTRIBUTED DIRECTLY UNLIKE
OTHER FMCG PRODUCTS LIKE SOAPS ANDbull DETERGENTS WHICH CAN BE SOLD THROUGH A
WHOLESALE NETWORK 90 OF CHOCOLATE PRODUCTS ARE SOLD
bull DIRECTLY TO RETAILERS bull CADBURYS DISTRIBUTION NETWORK USED TO
ENCOMPASSES 2100 DISTRIBUTORS AND 450000 RETAILERS bull TO AVOID CANNIBALIZATION OF ITS HIGHER PRICED
PRODUCTS FROM LOWER PRICED ONES CADBURY ISbull SETTING UP TWO SEPARATE DISTRIBUTION CHANNELS ndash
ONE FOR CORE BUSINESS amp OTHER FOR MASS MARKETS
NATURE OF RETAIL OUTLET
bull CHOCOLATES ARE PRIMARILY SOLD THROUGH KIRANA STORES GIFT STORES MEDICAL STORES CANTEENS
bull PAN-BIDI STORES BAKERIES SWEET SHOPS ETC THIS IS TRUE FOR CHOCOLATES ALSO THE SPACE ALLOCATED FOR
bull THE CHOCOLATES WAS LESS WHEN COMPARED TO THE TOTAL AREA OF THE SHOP OF THE SPACE ALLOCATED FOR
bull CHOCOLATES CADBURY BRANDS OCCUPIED MORE THAN NESTLE BRANDS
PROMOTIONbull ADVERTISEMENTSbull THE ADVERTISEMENT AIMED AT CONVEYING THE IDEA THAT NO
SPECIFIC OCCASION IS REQUIRED FOR CONSUMING CDM
bull CELEBRITIES ENDORSEMENTS
bull CADBURY ROPED IN PREITY ZINTA FOR ITS PERK BRAND PREITY ZINTArsquoS ANGELIC DIMPLES LAID THE
bull FOUNDATION FOR WHAT WOULD BECOME THE INDIAN TEENAGERrsquoS FAVORITE SNACK AFTER THIS CAMPAIGN
bull PERKrsquoS SALE SURGED
bull THE BIG lsquoBrsquo FACTORbull THE BIG FACTOR THAT HAS PUSHED UP CDM SALES IS THE
AMITABH BACHCHAN CAMPAIGN CADBURY APPOINTED AMITABH BACHCHAN AS ITS BRAND AMBASSADOR
CHOCOLATE ADS SHIFT FOCUS FROM KIDS TO YOUTH
bull INDIAN CHOCOLATE MARKET IS ALMOST TOTALLY DEPENDED ON PURCHASES OF KIDS
bull WHILE CADBURY IS TRYING TO SELL INDULGENCE TO ADULTS KIT KAT IS SELLING RITUALISTIC BREAK TO
bull TEENAGERS YOUNG ADULTS THIS IS REFLECTED IN THE CHANGING ADVERTISING PATTERNS ACROSS DIFFERENT
bull CHANNELS
CONCLUSION WHEN PRICED AT EVEN RS 2500KG WHILE THERE ARE PLACES IN
INDIA WHERE PEOPLE HAVE NEVER EVEN TASTED CHOCOLATES ONCEUNDERSTANDING THE CONSUMER DEMANDS AND MAINTAINING THE QUALITY WILL BE ESSENTIALCOMPANIES WILL HAVE TO KEEP THEMSELVES ABREAST WITH THE DEVELOPMENTS IN OTHER PARTS OF THE WORLDPRICING IS THE KEY FOR COMPANIES TO MAKE THEIR PRODUCT REACH CONSUMERSrsquo POCKETS RIGHTPRICING WILL MAKE OR BREAK THE PRODUCT SUCCESS ECONOMICAL DISTRIBUTION OF THE PRODUCTS WILLALSO BE EQUALLY IMPORTANTTHE COMPANIESrsquo STRATEGIES SHOULD FOCUS ON DRIVING SALES THROUGH A RIGHT PRODUCT MIXEFFICIENT MATERIALS PROCUREMENT REDUCED WASTAGES INCREASED FACTORY EFFICIENCIES AND IMPROVED SUPPLY CHAIN MANAGEMENTTHERErsquoS AN IMMENSE SCOPE FOR GROWTH OF CHOCOLATE INDUSTRY IN INDIA - GEOGRAPHICALLY AS WELLAS IN THE PRODUCT OFFERING
BIBLIOGRAPHY
bull WWWCADBURYCOUKbull WWWCHOCOLATEREVIEWCOUKbull WWW CADBURYS CHWEPPESCOMbull WWWWIKIPEDIAORGbull WWWCADBURYCOMbull WWWOPPAPERSCOM REFERENCES-bull PHILIP KOTLER
- BY RAGHAVENDRA MISHRA
- INTRODUCTION
- HISTORY
- MARKETING OBJECTIVES
- TARGET MARKET
- MARKET SEGMENTATION
- GEOGRAPHIC SEGMENTATION
- DEMOGRAPHIC SEGMENTATION
- MARKETING MIX
- PRODUCT
- PRODUCT INNOVATIONS
- PACKAGING
- PRICE
- VOLUME LED GROWTH STRATEGY
- HIRES AT KEARNEY TO CURB COSTS
- EARNINGS SENSITIVITY FACTORS
- PLACE
- DISTRIBUTION
- NATURE OF RETAIL OUTLET
- PROMOTION
- CHOCOLATE ADS SHIFT FOCUS FROM KIDS TO YOUTH
- CONCLUSION
- BIBLIOGRAPHY
-
MARKETING MIX
bull THE TOOLS AVAILABLE TO A BUSINESS TO GAIN THE REACTION IT IS SEEKING FROM ITS TARGET MARKET IN RELATION TO ITS MARKETING OBJECTIVES IT IS THE GENERALLY ACCEPTED AS THE USE AND SPECIFICATION OF THE ldquoFOUR PrsquoSrdquo DESCRIBING THE STRATEGIC POSITION OF A PRODUCT IN THE MARKETPLACE
bull PRODUCTbull PRICEbull PLACEbull PROMOTION
PRODUCT
bull PRODUCT VARIANTS bull CURRENTLY CADBURY INDIA OPERATES IN
FOUR CATEGORIES VIZ CHOCOLATE CONFECTIONERY MILK FOOD DRINKS CANDY AND GUM CATEGORY
bull CADBURY DAIRY MILK 5 STAR PERK EacuteCLAIRS AND CELEBRATIONS
bull CANDY CATEGORY HALLSbull BUBBLE GUM BRAND BUBBALOObull BOURNVITA - THE LEADING MALTED FOOD
DRINK (MFD)
PRODUCT INNOVATIONS bull 1048766 5 STAR
bull CONSUMER FEEDBACK SUGGESTED THAT THE OLD 5 STAR WAS TOO CHEWY AND PEOPLE COMPLAINED OF IT STICKING TO THEIR TEETH IT WAS MADE SOFTER AND MELTED EASILY IN THE MOUTH amp INTRODUCED AS 5 STAR CRUNCHY
bull 1048766 PERK
bull PERK WAS MADE MUCH LIGHTER AND THE SIZE OF THE BAR INCREASED TO MATCH NESTLErsquoS MUNCH PERK HAD BEEN UNDER FIRE FROM NESTLErsquoS DEADLY DUO OF KITKAT AND MUNCH BUT AFTER THE RELAUNCH ITS MARKETSHARE IS TWO PER CENT MORE THAN KITKATrsquoS AND THE FIVE-YEAR-OLD BRAND IS NOW ALMOST AS BIG AS THE DECADES-OLD 5 STAR IN SIZE BOTH IN THE REGION OF RS 50-55 CRORE
bull 1048766 HEROES
bull PACKAGING INNOVATION HAS PLAYED A VITAL ROLE IN REVAMPING OF VARIOUS CADBURYrsquoS BRANDSHEROES BRAND IS SIMPLY A MULTI-PACK WITH MINIATURES OF ALL ITS MOST POPULAR BRANDS IN A SINGLEOUTER CASE
PACKAGINGbull
THE PACKAGING WAS CHANGED TO INCLUDE A SEALED PLASTIC WRAPPER INSIDE THE OUTSIDE FOIL CADBURYrsquoS LAUNCHED A NEW PURITY-SEALED PACKAGING FOR ITS FLAGSHIP PRODUCT CADBURY DAIRY MILK OVER THE NEXT FEW WEEKS CADBURY WILL WORK TOWARDS INTRODUCING EITHER A HEATSEALED OR A FLOW-PACK PACKAGING THAT OFFERS A HIGH LEVEL OF RESISTANCE TO INFESTATION FROM
bull IMPROPER STORAGE CADBURY INVESTED NEARLY RS 25 CRORE (RS 250 MILLION) THIS YEAR ON NEW MACHINERY FOR THE IMPROVED PACKAGING
PRICE
bull THE RS 5 PRICE POINT ACCOUNTS FOR MORE THAN HALF OF ALL CHOCOLATE SALES
bull TODAY CADBURY HAS FOUR PRODUCTS AT THIS PRICE POINT CDM PERK 5 STAR AND GEMS mdash AND THE FIVE-RUPEE CDM BAR IS ITS SINGLE LARGEST-SELLING SKU
bull ldquoTHIS IS A POTENT PRICE POINT IN INDIA BECAUSE THE AVERAGE PURCHASING POWER IS ABYSMALLY LOWrdquo IS WHAT INDUSTRY ANALYST HAVE TO SAY
VOLUME LED GROWTH STRATEGY
bull CADBURY HAS FOLLOWED A WELL-PLANNED STRATEGY OF FUELLING VOLUME GROWTH BY INTRODUCING SMALLER UNIT PACKS AT LOWER PRICE POINTS SIMULTANEOUSLY THE COMPANY SEEMS TO HAVE ASTUTELY JUGGLED WITH THE LARGER PACK SIZES AND RAISED PRICES TO A DEGREE HIGHER THAN WHAT APPEARS AT FACE
HIRES AT KEARNEY TO CURB COSTS
bull CADBURY INDIA APPOINTED MANAGEMENT CONSULTANCY FIRM AT KEARNEY TO DRAW UP A STRATEGY TO CONTROL COSTS IN SEVERAL AREAS INCLUDING SOURCING OF RAW MATERIALS AND PACKAGING
bull THE CONSULTANCY FIRM WILL ALSO LOOK AT THE SOURCING OF DIRECT AND INDIRECT MATERIALS LIKE RENEGOTIATING WITH SUPPLIERS FOR LONGER TERM CONTRACTS AND VENDOR MANAGEMENT OTHER COSTS (INDIRECT EXPENSES) LIKE TRAVEL COSTS AND HOTELS WERE ALSO BEING STUDIED
EARNINGS SENSITIVITY FACTORS
bull COCOA BEAN PRICES DOMESTIC AS WELL AS INTERNATIONAL PRICES OF KEY RAW MATERIAL - COCOA HAVE SIGNIFICANT IMPACT ON MARGINS
bull EXCISE DUTIES CHANGES IN EXCISE LEVIED ON MALT AND CHOCOLATE INFLUENCES END PRODUCT PRICES AND THEREBY VOLUME GROWTH AS WELL AS MARGINS
bull CHANGES IN CUSTOM DUTIES AND FOREIGN EXCHANGE FLUCTUATION AS 20 OF RAW MATERIAL IS IMPORTED CHANGES IN CUSTOM DUTIES amp FOREIGN EXCHANGE FLUCTUATIONS HAVE SIGNIFICANT IMPACT ON THE FINAL COST OF THE PRODUCT
bull COMPETITION FROM MNCS LIKE NESTLE AS WELL AS IMPORTED BRANDS INCREASING COMPETITION PUTS PRESSURE ON ADVERTISEMENT BUDGET AND MARGINS HOWEVER ON THE POSITIVE SIDE IT HELPS IN EXPANDING THE MARKET
PLACE
bull PLANT LOCATIONSbull IN INDIA CADBURY BEGAN ITS OPERATIONS IN
1948 BY IMPORTING CHOCOLATES AFTER 60 YEARS OF EXISTENCE IT TODAY HAS FIVE COMPANY-OWNED MANUFACTURING FACILITIES AT THANE INDURI (PUNE) AND MALANPUR (GWALIOR) BANGALORE AND BADDI (HIMACHAL PRADESH) AND 4 SALES OFFICES (NEW DELHI MUMBAI KOLKOTA AND CHENNAI) THE CORPORATE OFFICE IS IN MUMBAITHESE FACTORIES CHURN OUT CLOSE TO 8000 TONNES OF CHOCOLATE ANNUALLY
DISTRIBUTIONbull CHOCOLATE NEEDS TO BE DISTRIBUTED DIRECTLY UNLIKE
OTHER FMCG PRODUCTS LIKE SOAPS ANDbull DETERGENTS WHICH CAN BE SOLD THROUGH A
WHOLESALE NETWORK 90 OF CHOCOLATE PRODUCTS ARE SOLD
bull DIRECTLY TO RETAILERS bull CADBURYS DISTRIBUTION NETWORK USED TO
ENCOMPASSES 2100 DISTRIBUTORS AND 450000 RETAILERS bull TO AVOID CANNIBALIZATION OF ITS HIGHER PRICED
PRODUCTS FROM LOWER PRICED ONES CADBURY ISbull SETTING UP TWO SEPARATE DISTRIBUTION CHANNELS ndash
ONE FOR CORE BUSINESS amp OTHER FOR MASS MARKETS
NATURE OF RETAIL OUTLET
bull CHOCOLATES ARE PRIMARILY SOLD THROUGH KIRANA STORES GIFT STORES MEDICAL STORES CANTEENS
bull PAN-BIDI STORES BAKERIES SWEET SHOPS ETC THIS IS TRUE FOR CHOCOLATES ALSO THE SPACE ALLOCATED FOR
bull THE CHOCOLATES WAS LESS WHEN COMPARED TO THE TOTAL AREA OF THE SHOP OF THE SPACE ALLOCATED FOR
bull CHOCOLATES CADBURY BRANDS OCCUPIED MORE THAN NESTLE BRANDS
PROMOTIONbull ADVERTISEMENTSbull THE ADVERTISEMENT AIMED AT CONVEYING THE IDEA THAT NO
SPECIFIC OCCASION IS REQUIRED FOR CONSUMING CDM
bull CELEBRITIES ENDORSEMENTS
bull CADBURY ROPED IN PREITY ZINTA FOR ITS PERK BRAND PREITY ZINTArsquoS ANGELIC DIMPLES LAID THE
bull FOUNDATION FOR WHAT WOULD BECOME THE INDIAN TEENAGERrsquoS FAVORITE SNACK AFTER THIS CAMPAIGN
bull PERKrsquoS SALE SURGED
bull THE BIG lsquoBrsquo FACTORbull THE BIG FACTOR THAT HAS PUSHED UP CDM SALES IS THE
AMITABH BACHCHAN CAMPAIGN CADBURY APPOINTED AMITABH BACHCHAN AS ITS BRAND AMBASSADOR
CHOCOLATE ADS SHIFT FOCUS FROM KIDS TO YOUTH
bull INDIAN CHOCOLATE MARKET IS ALMOST TOTALLY DEPENDED ON PURCHASES OF KIDS
bull WHILE CADBURY IS TRYING TO SELL INDULGENCE TO ADULTS KIT KAT IS SELLING RITUALISTIC BREAK TO
bull TEENAGERS YOUNG ADULTS THIS IS REFLECTED IN THE CHANGING ADVERTISING PATTERNS ACROSS DIFFERENT
bull CHANNELS
CONCLUSION WHEN PRICED AT EVEN RS 2500KG WHILE THERE ARE PLACES IN
INDIA WHERE PEOPLE HAVE NEVER EVEN TASTED CHOCOLATES ONCEUNDERSTANDING THE CONSUMER DEMANDS AND MAINTAINING THE QUALITY WILL BE ESSENTIALCOMPANIES WILL HAVE TO KEEP THEMSELVES ABREAST WITH THE DEVELOPMENTS IN OTHER PARTS OF THE WORLDPRICING IS THE KEY FOR COMPANIES TO MAKE THEIR PRODUCT REACH CONSUMERSrsquo POCKETS RIGHTPRICING WILL MAKE OR BREAK THE PRODUCT SUCCESS ECONOMICAL DISTRIBUTION OF THE PRODUCTS WILLALSO BE EQUALLY IMPORTANTTHE COMPANIESrsquo STRATEGIES SHOULD FOCUS ON DRIVING SALES THROUGH A RIGHT PRODUCT MIXEFFICIENT MATERIALS PROCUREMENT REDUCED WASTAGES INCREASED FACTORY EFFICIENCIES AND IMPROVED SUPPLY CHAIN MANAGEMENTTHERErsquoS AN IMMENSE SCOPE FOR GROWTH OF CHOCOLATE INDUSTRY IN INDIA - GEOGRAPHICALLY AS WELLAS IN THE PRODUCT OFFERING
BIBLIOGRAPHY
bull WWWCADBURYCOUKbull WWWCHOCOLATEREVIEWCOUKbull WWW CADBURYS CHWEPPESCOMbull WWWWIKIPEDIAORGbull WWWCADBURYCOMbull WWWOPPAPERSCOM REFERENCES-bull PHILIP KOTLER
- BY RAGHAVENDRA MISHRA
- INTRODUCTION
- HISTORY
- MARKETING OBJECTIVES
- TARGET MARKET
- MARKET SEGMENTATION
- GEOGRAPHIC SEGMENTATION
- DEMOGRAPHIC SEGMENTATION
- MARKETING MIX
- PRODUCT
- PRODUCT INNOVATIONS
- PACKAGING
- PRICE
- VOLUME LED GROWTH STRATEGY
- HIRES AT KEARNEY TO CURB COSTS
- EARNINGS SENSITIVITY FACTORS
- PLACE
- DISTRIBUTION
- NATURE OF RETAIL OUTLET
- PROMOTION
- CHOCOLATE ADS SHIFT FOCUS FROM KIDS TO YOUTH
- CONCLUSION
- BIBLIOGRAPHY
-
PRODUCT
bull PRODUCT VARIANTS bull CURRENTLY CADBURY INDIA OPERATES IN
FOUR CATEGORIES VIZ CHOCOLATE CONFECTIONERY MILK FOOD DRINKS CANDY AND GUM CATEGORY
bull CADBURY DAIRY MILK 5 STAR PERK EacuteCLAIRS AND CELEBRATIONS
bull CANDY CATEGORY HALLSbull BUBBLE GUM BRAND BUBBALOObull BOURNVITA - THE LEADING MALTED FOOD
DRINK (MFD)
PRODUCT INNOVATIONS bull 1048766 5 STAR
bull CONSUMER FEEDBACK SUGGESTED THAT THE OLD 5 STAR WAS TOO CHEWY AND PEOPLE COMPLAINED OF IT STICKING TO THEIR TEETH IT WAS MADE SOFTER AND MELTED EASILY IN THE MOUTH amp INTRODUCED AS 5 STAR CRUNCHY
bull 1048766 PERK
bull PERK WAS MADE MUCH LIGHTER AND THE SIZE OF THE BAR INCREASED TO MATCH NESTLErsquoS MUNCH PERK HAD BEEN UNDER FIRE FROM NESTLErsquoS DEADLY DUO OF KITKAT AND MUNCH BUT AFTER THE RELAUNCH ITS MARKETSHARE IS TWO PER CENT MORE THAN KITKATrsquoS AND THE FIVE-YEAR-OLD BRAND IS NOW ALMOST AS BIG AS THE DECADES-OLD 5 STAR IN SIZE BOTH IN THE REGION OF RS 50-55 CRORE
bull 1048766 HEROES
bull PACKAGING INNOVATION HAS PLAYED A VITAL ROLE IN REVAMPING OF VARIOUS CADBURYrsquoS BRANDSHEROES BRAND IS SIMPLY A MULTI-PACK WITH MINIATURES OF ALL ITS MOST POPULAR BRANDS IN A SINGLEOUTER CASE
PACKAGINGbull
THE PACKAGING WAS CHANGED TO INCLUDE A SEALED PLASTIC WRAPPER INSIDE THE OUTSIDE FOIL CADBURYrsquoS LAUNCHED A NEW PURITY-SEALED PACKAGING FOR ITS FLAGSHIP PRODUCT CADBURY DAIRY MILK OVER THE NEXT FEW WEEKS CADBURY WILL WORK TOWARDS INTRODUCING EITHER A HEATSEALED OR A FLOW-PACK PACKAGING THAT OFFERS A HIGH LEVEL OF RESISTANCE TO INFESTATION FROM
bull IMPROPER STORAGE CADBURY INVESTED NEARLY RS 25 CRORE (RS 250 MILLION) THIS YEAR ON NEW MACHINERY FOR THE IMPROVED PACKAGING
PRICE
bull THE RS 5 PRICE POINT ACCOUNTS FOR MORE THAN HALF OF ALL CHOCOLATE SALES
bull TODAY CADBURY HAS FOUR PRODUCTS AT THIS PRICE POINT CDM PERK 5 STAR AND GEMS mdash AND THE FIVE-RUPEE CDM BAR IS ITS SINGLE LARGEST-SELLING SKU
bull ldquoTHIS IS A POTENT PRICE POINT IN INDIA BECAUSE THE AVERAGE PURCHASING POWER IS ABYSMALLY LOWrdquo IS WHAT INDUSTRY ANALYST HAVE TO SAY
VOLUME LED GROWTH STRATEGY
bull CADBURY HAS FOLLOWED A WELL-PLANNED STRATEGY OF FUELLING VOLUME GROWTH BY INTRODUCING SMALLER UNIT PACKS AT LOWER PRICE POINTS SIMULTANEOUSLY THE COMPANY SEEMS TO HAVE ASTUTELY JUGGLED WITH THE LARGER PACK SIZES AND RAISED PRICES TO A DEGREE HIGHER THAN WHAT APPEARS AT FACE
HIRES AT KEARNEY TO CURB COSTS
bull CADBURY INDIA APPOINTED MANAGEMENT CONSULTANCY FIRM AT KEARNEY TO DRAW UP A STRATEGY TO CONTROL COSTS IN SEVERAL AREAS INCLUDING SOURCING OF RAW MATERIALS AND PACKAGING
bull THE CONSULTANCY FIRM WILL ALSO LOOK AT THE SOURCING OF DIRECT AND INDIRECT MATERIALS LIKE RENEGOTIATING WITH SUPPLIERS FOR LONGER TERM CONTRACTS AND VENDOR MANAGEMENT OTHER COSTS (INDIRECT EXPENSES) LIKE TRAVEL COSTS AND HOTELS WERE ALSO BEING STUDIED
EARNINGS SENSITIVITY FACTORS
bull COCOA BEAN PRICES DOMESTIC AS WELL AS INTERNATIONAL PRICES OF KEY RAW MATERIAL - COCOA HAVE SIGNIFICANT IMPACT ON MARGINS
bull EXCISE DUTIES CHANGES IN EXCISE LEVIED ON MALT AND CHOCOLATE INFLUENCES END PRODUCT PRICES AND THEREBY VOLUME GROWTH AS WELL AS MARGINS
bull CHANGES IN CUSTOM DUTIES AND FOREIGN EXCHANGE FLUCTUATION AS 20 OF RAW MATERIAL IS IMPORTED CHANGES IN CUSTOM DUTIES amp FOREIGN EXCHANGE FLUCTUATIONS HAVE SIGNIFICANT IMPACT ON THE FINAL COST OF THE PRODUCT
bull COMPETITION FROM MNCS LIKE NESTLE AS WELL AS IMPORTED BRANDS INCREASING COMPETITION PUTS PRESSURE ON ADVERTISEMENT BUDGET AND MARGINS HOWEVER ON THE POSITIVE SIDE IT HELPS IN EXPANDING THE MARKET
PLACE
bull PLANT LOCATIONSbull IN INDIA CADBURY BEGAN ITS OPERATIONS IN
1948 BY IMPORTING CHOCOLATES AFTER 60 YEARS OF EXISTENCE IT TODAY HAS FIVE COMPANY-OWNED MANUFACTURING FACILITIES AT THANE INDURI (PUNE) AND MALANPUR (GWALIOR) BANGALORE AND BADDI (HIMACHAL PRADESH) AND 4 SALES OFFICES (NEW DELHI MUMBAI KOLKOTA AND CHENNAI) THE CORPORATE OFFICE IS IN MUMBAITHESE FACTORIES CHURN OUT CLOSE TO 8000 TONNES OF CHOCOLATE ANNUALLY
DISTRIBUTIONbull CHOCOLATE NEEDS TO BE DISTRIBUTED DIRECTLY UNLIKE
OTHER FMCG PRODUCTS LIKE SOAPS ANDbull DETERGENTS WHICH CAN BE SOLD THROUGH A
WHOLESALE NETWORK 90 OF CHOCOLATE PRODUCTS ARE SOLD
bull DIRECTLY TO RETAILERS bull CADBURYS DISTRIBUTION NETWORK USED TO
ENCOMPASSES 2100 DISTRIBUTORS AND 450000 RETAILERS bull TO AVOID CANNIBALIZATION OF ITS HIGHER PRICED
PRODUCTS FROM LOWER PRICED ONES CADBURY ISbull SETTING UP TWO SEPARATE DISTRIBUTION CHANNELS ndash
ONE FOR CORE BUSINESS amp OTHER FOR MASS MARKETS
NATURE OF RETAIL OUTLET
bull CHOCOLATES ARE PRIMARILY SOLD THROUGH KIRANA STORES GIFT STORES MEDICAL STORES CANTEENS
bull PAN-BIDI STORES BAKERIES SWEET SHOPS ETC THIS IS TRUE FOR CHOCOLATES ALSO THE SPACE ALLOCATED FOR
bull THE CHOCOLATES WAS LESS WHEN COMPARED TO THE TOTAL AREA OF THE SHOP OF THE SPACE ALLOCATED FOR
bull CHOCOLATES CADBURY BRANDS OCCUPIED MORE THAN NESTLE BRANDS
PROMOTIONbull ADVERTISEMENTSbull THE ADVERTISEMENT AIMED AT CONVEYING THE IDEA THAT NO
SPECIFIC OCCASION IS REQUIRED FOR CONSUMING CDM
bull CELEBRITIES ENDORSEMENTS
bull CADBURY ROPED IN PREITY ZINTA FOR ITS PERK BRAND PREITY ZINTArsquoS ANGELIC DIMPLES LAID THE
bull FOUNDATION FOR WHAT WOULD BECOME THE INDIAN TEENAGERrsquoS FAVORITE SNACK AFTER THIS CAMPAIGN
bull PERKrsquoS SALE SURGED
bull THE BIG lsquoBrsquo FACTORbull THE BIG FACTOR THAT HAS PUSHED UP CDM SALES IS THE
AMITABH BACHCHAN CAMPAIGN CADBURY APPOINTED AMITABH BACHCHAN AS ITS BRAND AMBASSADOR
CHOCOLATE ADS SHIFT FOCUS FROM KIDS TO YOUTH
bull INDIAN CHOCOLATE MARKET IS ALMOST TOTALLY DEPENDED ON PURCHASES OF KIDS
bull WHILE CADBURY IS TRYING TO SELL INDULGENCE TO ADULTS KIT KAT IS SELLING RITUALISTIC BREAK TO
bull TEENAGERS YOUNG ADULTS THIS IS REFLECTED IN THE CHANGING ADVERTISING PATTERNS ACROSS DIFFERENT
bull CHANNELS
CONCLUSION WHEN PRICED AT EVEN RS 2500KG WHILE THERE ARE PLACES IN
INDIA WHERE PEOPLE HAVE NEVER EVEN TASTED CHOCOLATES ONCEUNDERSTANDING THE CONSUMER DEMANDS AND MAINTAINING THE QUALITY WILL BE ESSENTIALCOMPANIES WILL HAVE TO KEEP THEMSELVES ABREAST WITH THE DEVELOPMENTS IN OTHER PARTS OF THE WORLDPRICING IS THE KEY FOR COMPANIES TO MAKE THEIR PRODUCT REACH CONSUMERSrsquo POCKETS RIGHTPRICING WILL MAKE OR BREAK THE PRODUCT SUCCESS ECONOMICAL DISTRIBUTION OF THE PRODUCTS WILLALSO BE EQUALLY IMPORTANTTHE COMPANIESrsquo STRATEGIES SHOULD FOCUS ON DRIVING SALES THROUGH A RIGHT PRODUCT MIXEFFICIENT MATERIALS PROCUREMENT REDUCED WASTAGES INCREASED FACTORY EFFICIENCIES AND IMPROVED SUPPLY CHAIN MANAGEMENTTHERErsquoS AN IMMENSE SCOPE FOR GROWTH OF CHOCOLATE INDUSTRY IN INDIA - GEOGRAPHICALLY AS WELLAS IN THE PRODUCT OFFERING
BIBLIOGRAPHY
bull WWWCADBURYCOUKbull WWWCHOCOLATEREVIEWCOUKbull WWW CADBURYS CHWEPPESCOMbull WWWWIKIPEDIAORGbull WWWCADBURYCOMbull WWWOPPAPERSCOM REFERENCES-bull PHILIP KOTLER
- BY RAGHAVENDRA MISHRA
- INTRODUCTION
- HISTORY
- MARKETING OBJECTIVES
- TARGET MARKET
- MARKET SEGMENTATION
- GEOGRAPHIC SEGMENTATION
- DEMOGRAPHIC SEGMENTATION
- MARKETING MIX
- PRODUCT
- PRODUCT INNOVATIONS
- PACKAGING
- PRICE
- VOLUME LED GROWTH STRATEGY
- HIRES AT KEARNEY TO CURB COSTS
- EARNINGS SENSITIVITY FACTORS
- PLACE
- DISTRIBUTION
- NATURE OF RETAIL OUTLET
- PROMOTION
- CHOCOLATE ADS SHIFT FOCUS FROM KIDS TO YOUTH
- CONCLUSION
- BIBLIOGRAPHY
-
PRODUCT INNOVATIONS bull 1048766 5 STAR
bull CONSUMER FEEDBACK SUGGESTED THAT THE OLD 5 STAR WAS TOO CHEWY AND PEOPLE COMPLAINED OF IT STICKING TO THEIR TEETH IT WAS MADE SOFTER AND MELTED EASILY IN THE MOUTH amp INTRODUCED AS 5 STAR CRUNCHY
bull 1048766 PERK
bull PERK WAS MADE MUCH LIGHTER AND THE SIZE OF THE BAR INCREASED TO MATCH NESTLErsquoS MUNCH PERK HAD BEEN UNDER FIRE FROM NESTLErsquoS DEADLY DUO OF KITKAT AND MUNCH BUT AFTER THE RELAUNCH ITS MARKETSHARE IS TWO PER CENT MORE THAN KITKATrsquoS AND THE FIVE-YEAR-OLD BRAND IS NOW ALMOST AS BIG AS THE DECADES-OLD 5 STAR IN SIZE BOTH IN THE REGION OF RS 50-55 CRORE
bull 1048766 HEROES
bull PACKAGING INNOVATION HAS PLAYED A VITAL ROLE IN REVAMPING OF VARIOUS CADBURYrsquoS BRANDSHEROES BRAND IS SIMPLY A MULTI-PACK WITH MINIATURES OF ALL ITS MOST POPULAR BRANDS IN A SINGLEOUTER CASE
PACKAGINGbull
THE PACKAGING WAS CHANGED TO INCLUDE A SEALED PLASTIC WRAPPER INSIDE THE OUTSIDE FOIL CADBURYrsquoS LAUNCHED A NEW PURITY-SEALED PACKAGING FOR ITS FLAGSHIP PRODUCT CADBURY DAIRY MILK OVER THE NEXT FEW WEEKS CADBURY WILL WORK TOWARDS INTRODUCING EITHER A HEATSEALED OR A FLOW-PACK PACKAGING THAT OFFERS A HIGH LEVEL OF RESISTANCE TO INFESTATION FROM
bull IMPROPER STORAGE CADBURY INVESTED NEARLY RS 25 CRORE (RS 250 MILLION) THIS YEAR ON NEW MACHINERY FOR THE IMPROVED PACKAGING
PRICE
bull THE RS 5 PRICE POINT ACCOUNTS FOR MORE THAN HALF OF ALL CHOCOLATE SALES
bull TODAY CADBURY HAS FOUR PRODUCTS AT THIS PRICE POINT CDM PERK 5 STAR AND GEMS mdash AND THE FIVE-RUPEE CDM BAR IS ITS SINGLE LARGEST-SELLING SKU
bull ldquoTHIS IS A POTENT PRICE POINT IN INDIA BECAUSE THE AVERAGE PURCHASING POWER IS ABYSMALLY LOWrdquo IS WHAT INDUSTRY ANALYST HAVE TO SAY
VOLUME LED GROWTH STRATEGY
bull CADBURY HAS FOLLOWED A WELL-PLANNED STRATEGY OF FUELLING VOLUME GROWTH BY INTRODUCING SMALLER UNIT PACKS AT LOWER PRICE POINTS SIMULTANEOUSLY THE COMPANY SEEMS TO HAVE ASTUTELY JUGGLED WITH THE LARGER PACK SIZES AND RAISED PRICES TO A DEGREE HIGHER THAN WHAT APPEARS AT FACE
HIRES AT KEARNEY TO CURB COSTS
bull CADBURY INDIA APPOINTED MANAGEMENT CONSULTANCY FIRM AT KEARNEY TO DRAW UP A STRATEGY TO CONTROL COSTS IN SEVERAL AREAS INCLUDING SOURCING OF RAW MATERIALS AND PACKAGING
bull THE CONSULTANCY FIRM WILL ALSO LOOK AT THE SOURCING OF DIRECT AND INDIRECT MATERIALS LIKE RENEGOTIATING WITH SUPPLIERS FOR LONGER TERM CONTRACTS AND VENDOR MANAGEMENT OTHER COSTS (INDIRECT EXPENSES) LIKE TRAVEL COSTS AND HOTELS WERE ALSO BEING STUDIED
EARNINGS SENSITIVITY FACTORS
bull COCOA BEAN PRICES DOMESTIC AS WELL AS INTERNATIONAL PRICES OF KEY RAW MATERIAL - COCOA HAVE SIGNIFICANT IMPACT ON MARGINS
bull EXCISE DUTIES CHANGES IN EXCISE LEVIED ON MALT AND CHOCOLATE INFLUENCES END PRODUCT PRICES AND THEREBY VOLUME GROWTH AS WELL AS MARGINS
bull CHANGES IN CUSTOM DUTIES AND FOREIGN EXCHANGE FLUCTUATION AS 20 OF RAW MATERIAL IS IMPORTED CHANGES IN CUSTOM DUTIES amp FOREIGN EXCHANGE FLUCTUATIONS HAVE SIGNIFICANT IMPACT ON THE FINAL COST OF THE PRODUCT
bull COMPETITION FROM MNCS LIKE NESTLE AS WELL AS IMPORTED BRANDS INCREASING COMPETITION PUTS PRESSURE ON ADVERTISEMENT BUDGET AND MARGINS HOWEVER ON THE POSITIVE SIDE IT HELPS IN EXPANDING THE MARKET
PLACE
bull PLANT LOCATIONSbull IN INDIA CADBURY BEGAN ITS OPERATIONS IN
1948 BY IMPORTING CHOCOLATES AFTER 60 YEARS OF EXISTENCE IT TODAY HAS FIVE COMPANY-OWNED MANUFACTURING FACILITIES AT THANE INDURI (PUNE) AND MALANPUR (GWALIOR) BANGALORE AND BADDI (HIMACHAL PRADESH) AND 4 SALES OFFICES (NEW DELHI MUMBAI KOLKOTA AND CHENNAI) THE CORPORATE OFFICE IS IN MUMBAITHESE FACTORIES CHURN OUT CLOSE TO 8000 TONNES OF CHOCOLATE ANNUALLY
DISTRIBUTIONbull CHOCOLATE NEEDS TO BE DISTRIBUTED DIRECTLY UNLIKE
OTHER FMCG PRODUCTS LIKE SOAPS ANDbull DETERGENTS WHICH CAN BE SOLD THROUGH A
WHOLESALE NETWORK 90 OF CHOCOLATE PRODUCTS ARE SOLD
bull DIRECTLY TO RETAILERS bull CADBURYS DISTRIBUTION NETWORK USED TO
ENCOMPASSES 2100 DISTRIBUTORS AND 450000 RETAILERS bull TO AVOID CANNIBALIZATION OF ITS HIGHER PRICED
PRODUCTS FROM LOWER PRICED ONES CADBURY ISbull SETTING UP TWO SEPARATE DISTRIBUTION CHANNELS ndash
ONE FOR CORE BUSINESS amp OTHER FOR MASS MARKETS
NATURE OF RETAIL OUTLET
bull CHOCOLATES ARE PRIMARILY SOLD THROUGH KIRANA STORES GIFT STORES MEDICAL STORES CANTEENS
bull PAN-BIDI STORES BAKERIES SWEET SHOPS ETC THIS IS TRUE FOR CHOCOLATES ALSO THE SPACE ALLOCATED FOR
bull THE CHOCOLATES WAS LESS WHEN COMPARED TO THE TOTAL AREA OF THE SHOP OF THE SPACE ALLOCATED FOR
bull CHOCOLATES CADBURY BRANDS OCCUPIED MORE THAN NESTLE BRANDS
PROMOTIONbull ADVERTISEMENTSbull THE ADVERTISEMENT AIMED AT CONVEYING THE IDEA THAT NO
SPECIFIC OCCASION IS REQUIRED FOR CONSUMING CDM
bull CELEBRITIES ENDORSEMENTS
bull CADBURY ROPED IN PREITY ZINTA FOR ITS PERK BRAND PREITY ZINTArsquoS ANGELIC DIMPLES LAID THE
bull FOUNDATION FOR WHAT WOULD BECOME THE INDIAN TEENAGERrsquoS FAVORITE SNACK AFTER THIS CAMPAIGN
bull PERKrsquoS SALE SURGED
bull THE BIG lsquoBrsquo FACTORbull THE BIG FACTOR THAT HAS PUSHED UP CDM SALES IS THE
AMITABH BACHCHAN CAMPAIGN CADBURY APPOINTED AMITABH BACHCHAN AS ITS BRAND AMBASSADOR
CHOCOLATE ADS SHIFT FOCUS FROM KIDS TO YOUTH
bull INDIAN CHOCOLATE MARKET IS ALMOST TOTALLY DEPENDED ON PURCHASES OF KIDS
bull WHILE CADBURY IS TRYING TO SELL INDULGENCE TO ADULTS KIT KAT IS SELLING RITUALISTIC BREAK TO
bull TEENAGERS YOUNG ADULTS THIS IS REFLECTED IN THE CHANGING ADVERTISING PATTERNS ACROSS DIFFERENT
bull CHANNELS
CONCLUSION WHEN PRICED AT EVEN RS 2500KG WHILE THERE ARE PLACES IN
INDIA WHERE PEOPLE HAVE NEVER EVEN TASTED CHOCOLATES ONCEUNDERSTANDING THE CONSUMER DEMANDS AND MAINTAINING THE QUALITY WILL BE ESSENTIALCOMPANIES WILL HAVE TO KEEP THEMSELVES ABREAST WITH THE DEVELOPMENTS IN OTHER PARTS OF THE WORLDPRICING IS THE KEY FOR COMPANIES TO MAKE THEIR PRODUCT REACH CONSUMERSrsquo POCKETS RIGHTPRICING WILL MAKE OR BREAK THE PRODUCT SUCCESS ECONOMICAL DISTRIBUTION OF THE PRODUCTS WILLALSO BE EQUALLY IMPORTANTTHE COMPANIESrsquo STRATEGIES SHOULD FOCUS ON DRIVING SALES THROUGH A RIGHT PRODUCT MIXEFFICIENT MATERIALS PROCUREMENT REDUCED WASTAGES INCREASED FACTORY EFFICIENCIES AND IMPROVED SUPPLY CHAIN MANAGEMENTTHERErsquoS AN IMMENSE SCOPE FOR GROWTH OF CHOCOLATE INDUSTRY IN INDIA - GEOGRAPHICALLY AS WELLAS IN THE PRODUCT OFFERING
BIBLIOGRAPHY
bull WWWCADBURYCOUKbull WWWCHOCOLATEREVIEWCOUKbull WWW CADBURYS CHWEPPESCOMbull WWWWIKIPEDIAORGbull WWWCADBURYCOMbull WWWOPPAPERSCOM REFERENCES-bull PHILIP KOTLER
- BY RAGHAVENDRA MISHRA
- INTRODUCTION
- HISTORY
- MARKETING OBJECTIVES
- TARGET MARKET
- MARKET SEGMENTATION
- GEOGRAPHIC SEGMENTATION
- DEMOGRAPHIC SEGMENTATION
- MARKETING MIX
- PRODUCT
- PRODUCT INNOVATIONS
- PACKAGING
- PRICE
- VOLUME LED GROWTH STRATEGY
- HIRES AT KEARNEY TO CURB COSTS
- EARNINGS SENSITIVITY FACTORS
- PLACE
- DISTRIBUTION
- NATURE OF RETAIL OUTLET
- PROMOTION
- CHOCOLATE ADS SHIFT FOCUS FROM KIDS TO YOUTH
- CONCLUSION
- BIBLIOGRAPHY
-
PACKAGINGbull
THE PACKAGING WAS CHANGED TO INCLUDE A SEALED PLASTIC WRAPPER INSIDE THE OUTSIDE FOIL CADBURYrsquoS LAUNCHED A NEW PURITY-SEALED PACKAGING FOR ITS FLAGSHIP PRODUCT CADBURY DAIRY MILK OVER THE NEXT FEW WEEKS CADBURY WILL WORK TOWARDS INTRODUCING EITHER A HEATSEALED OR A FLOW-PACK PACKAGING THAT OFFERS A HIGH LEVEL OF RESISTANCE TO INFESTATION FROM
bull IMPROPER STORAGE CADBURY INVESTED NEARLY RS 25 CRORE (RS 250 MILLION) THIS YEAR ON NEW MACHINERY FOR THE IMPROVED PACKAGING
PRICE
bull THE RS 5 PRICE POINT ACCOUNTS FOR MORE THAN HALF OF ALL CHOCOLATE SALES
bull TODAY CADBURY HAS FOUR PRODUCTS AT THIS PRICE POINT CDM PERK 5 STAR AND GEMS mdash AND THE FIVE-RUPEE CDM BAR IS ITS SINGLE LARGEST-SELLING SKU
bull ldquoTHIS IS A POTENT PRICE POINT IN INDIA BECAUSE THE AVERAGE PURCHASING POWER IS ABYSMALLY LOWrdquo IS WHAT INDUSTRY ANALYST HAVE TO SAY
VOLUME LED GROWTH STRATEGY
bull CADBURY HAS FOLLOWED A WELL-PLANNED STRATEGY OF FUELLING VOLUME GROWTH BY INTRODUCING SMALLER UNIT PACKS AT LOWER PRICE POINTS SIMULTANEOUSLY THE COMPANY SEEMS TO HAVE ASTUTELY JUGGLED WITH THE LARGER PACK SIZES AND RAISED PRICES TO A DEGREE HIGHER THAN WHAT APPEARS AT FACE
HIRES AT KEARNEY TO CURB COSTS
bull CADBURY INDIA APPOINTED MANAGEMENT CONSULTANCY FIRM AT KEARNEY TO DRAW UP A STRATEGY TO CONTROL COSTS IN SEVERAL AREAS INCLUDING SOURCING OF RAW MATERIALS AND PACKAGING
bull THE CONSULTANCY FIRM WILL ALSO LOOK AT THE SOURCING OF DIRECT AND INDIRECT MATERIALS LIKE RENEGOTIATING WITH SUPPLIERS FOR LONGER TERM CONTRACTS AND VENDOR MANAGEMENT OTHER COSTS (INDIRECT EXPENSES) LIKE TRAVEL COSTS AND HOTELS WERE ALSO BEING STUDIED
EARNINGS SENSITIVITY FACTORS
bull COCOA BEAN PRICES DOMESTIC AS WELL AS INTERNATIONAL PRICES OF KEY RAW MATERIAL - COCOA HAVE SIGNIFICANT IMPACT ON MARGINS
bull EXCISE DUTIES CHANGES IN EXCISE LEVIED ON MALT AND CHOCOLATE INFLUENCES END PRODUCT PRICES AND THEREBY VOLUME GROWTH AS WELL AS MARGINS
bull CHANGES IN CUSTOM DUTIES AND FOREIGN EXCHANGE FLUCTUATION AS 20 OF RAW MATERIAL IS IMPORTED CHANGES IN CUSTOM DUTIES amp FOREIGN EXCHANGE FLUCTUATIONS HAVE SIGNIFICANT IMPACT ON THE FINAL COST OF THE PRODUCT
bull COMPETITION FROM MNCS LIKE NESTLE AS WELL AS IMPORTED BRANDS INCREASING COMPETITION PUTS PRESSURE ON ADVERTISEMENT BUDGET AND MARGINS HOWEVER ON THE POSITIVE SIDE IT HELPS IN EXPANDING THE MARKET
PLACE
bull PLANT LOCATIONSbull IN INDIA CADBURY BEGAN ITS OPERATIONS IN
1948 BY IMPORTING CHOCOLATES AFTER 60 YEARS OF EXISTENCE IT TODAY HAS FIVE COMPANY-OWNED MANUFACTURING FACILITIES AT THANE INDURI (PUNE) AND MALANPUR (GWALIOR) BANGALORE AND BADDI (HIMACHAL PRADESH) AND 4 SALES OFFICES (NEW DELHI MUMBAI KOLKOTA AND CHENNAI) THE CORPORATE OFFICE IS IN MUMBAITHESE FACTORIES CHURN OUT CLOSE TO 8000 TONNES OF CHOCOLATE ANNUALLY
DISTRIBUTIONbull CHOCOLATE NEEDS TO BE DISTRIBUTED DIRECTLY UNLIKE
OTHER FMCG PRODUCTS LIKE SOAPS ANDbull DETERGENTS WHICH CAN BE SOLD THROUGH A
WHOLESALE NETWORK 90 OF CHOCOLATE PRODUCTS ARE SOLD
bull DIRECTLY TO RETAILERS bull CADBURYS DISTRIBUTION NETWORK USED TO
ENCOMPASSES 2100 DISTRIBUTORS AND 450000 RETAILERS bull TO AVOID CANNIBALIZATION OF ITS HIGHER PRICED
PRODUCTS FROM LOWER PRICED ONES CADBURY ISbull SETTING UP TWO SEPARATE DISTRIBUTION CHANNELS ndash
ONE FOR CORE BUSINESS amp OTHER FOR MASS MARKETS
NATURE OF RETAIL OUTLET
bull CHOCOLATES ARE PRIMARILY SOLD THROUGH KIRANA STORES GIFT STORES MEDICAL STORES CANTEENS
bull PAN-BIDI STORES BAKERIES SWEET SHOPS ETC THIS IS TRUE FOR CHOCOLATES ALSO THE SPACE ALLOCATED FOR
bull THE CHOCOLATES WAS LESS WHEN COMPARED TO THE TOTAL AREA OF THE SHOP OF THE SPACE ALLOCATED FOR
bull CHOCOLATES CADBURY BRANDS OCCUPIED MORE THAN NESTLE BRANDS
PROMOTIONbull ADVERTISEMENTSbull THE ADVERTISEMENT AIMED AT CONVEYING THE IDEA THAT NO
SPECIFIC OCCASION IS REQUIRED FOR CONSUMING CDM
bull CELEBRITIES ENDORSEMENTS
bull CADBURY ROPED IN PREITY ZINTA FOR ITS PERK BRAND PREITY ZINTArsquoS ANGELIC DIMPLES LAID THE
bull FOUNDATION FOR WHAT WOULD BECOME THE INDIAN TEENAGERrsquoS FAVORITE SNACK AFTER THIS CAMPAIGN
bull PERKrsquoS SALE SURGED
bull THE BIG lsquoBrsquo FACTORbull THE BIG FACTOR THAT HAS PUSHED UP CDM SALES IS THE
AMITABH BACHCHAN CAMPAIGN CADBURY APPOINTED AMITABH BACHCHAN AS ITS BRAND AMBASSADOR
CHOCOLATE ADS SHIFT FOCUS FROM KIDS TO YOUTH
bull INDIAN CHOCOLATE MARKET IS ALMOST TOTALLY DEPENDED ON PURCHASES OF KIDS
bull WHILE CADBURY IS TRYING TO SELL INDULGENCE TO ADULTS KIT KAT IS SELLING RITUALISTIC BREAK TO
bull TEENAGERS YOUNG ADULTS THIS IS REFLECTED IN THE CHANGING ADVERTISING PATTERNS ACROSS DIFFERENT
bull CHANNELS
CONCLUSION WHEN PRICED AT EVEN RS 2500KG WHILE THERE ARE PLACES IN
INDIA WHERE PEOPLE HAVE NEVER EVEN TASTED CHOCOLATES ONCEUNDERSTANDING THE CONSUMER DEMANDS AND MAINTAINING THE QUALITY WILL BE ESSENTIALCOMPANIES WILL HAVE TO KEEP THEMSELVES ABREAST WITH THE DEVELOPMENTS IN OTHER PARTS OF THE WORLDPRICING IS THE KEY FOR COMPANIES TO MAKE THEIR PRODUCT REACH CONSUMERSrsquo POCKETS RIGHTPRICING WILL MAKE OR BREAK THE PRODUCT SUCCESS ECONOMICAL DISTRIBUTION OF THE PRODUCTS WILLALSO BE EQUALLY IMPORTANTTHE COMPANIESrsquo STRATEGIES SHOULD FOCUS ON DRIVING SALES THROUGH A RIGHT PRODUCT MIXEFFICIENT MATERIALS PROCUREMENT REDUCED WASTAGES INCREASED FACTORY EFFICIENCIES AND IMPROVED SUPPLY CHAIN MANAGEMENTTHERErsquoS AN IMMENSE SCOPE FOR GROWTH OF CHOCOLATE INDUSTRY IN INDIA - GEOGRAPHICALLY AS WELLAS IN THE PRODUCT OFFERING
BIBLIOGRAPHY
bull WWWCADBURYCOUKbull WWWCHOCOLATEREVIEWCOUKbull WWW CADBURYS CHWEPPESCOMbull WWWWIKIPEDIAORGbull WWWCADBURYCOMbull WWWOPPAPERSCOM REFERENCES-bull PHILIP KOTLER
- BY RAGHAVENDRA MISHRA
- INTRODUCTION
- HISTORY
- MARKETING OBJECTIVES
- TARGET MARKET
- MARKET SEGMENTATION
- GEOGRAPHIC SEGMENTATION
- DEMOGRAPHIC SEGMENTATION
- MARKETING MIX
- PRODUCT
- PRODUCT INNOVATIONS
- PACKAGING
- PRICE
- VOLUME LED GROWTH STRATEGY
- HIRES AT KEARNEY TO CURB COSTS
- EARNINGS SENSITIVITY FACTORS
- PLACE
- DISTRIBUTION
- NATURE OF RETAIL OUTLET
- PROMOTION
- CHOCOLATE ADS SHIFT FOCUS FROM KIDS TO YOUTH
- CONCLUSION
- BIBLIOGRAPHY
-
PRICE
bull THE RS 5 PRICE POINT ACCOUNTS FOR MORE THAN HALF OF ALL CHOCOLATE SALES
bull TODAY CADBURY HAS FOUR PRODUCTS AT THIS PRICE POINT CDM PERK 5 STAR AND GEMS mdash AND THE FIVE-RUPEE CDM BAR IS ITS SINGLE LARGEST-SELLING SKU
bull ldquoTHIS IS A POTENT PRICE POINT IN INDIA BECAUSE THE AVERAGE PURCHASING POWER IS ABYSMALLY LOWrdquo IS WHAT INDUSTRY ANALYST HAVE TO SAY
VOLUME LED GROWTH STRATEGY
bull CADBURY HAS FOLLOWED A WELL-PLANNED STRATEGY OF FUELLING VOLUME GROWTH BY INTRODUCING SMALLER UNIT PACKS AT LOWER PRICE POINTS SIMULTANEOUSLY THE COMPANY SEEMS TO HAVE ASTUTELY JUGGLED WITH THE LARGER PACK SIZES AND RAISED PRICES TO A DEGREE HIGHER THAN WHAT APPEARS AT FACE
HIRES AT KEARNEY TO CURB COSTS
bull CADBURY INDIA APPOINTED MANAGEMENT CONSULTANCY FIRM AT KEARNEY TO DRAW UP A STRATEGY TO CONTROL COSTS IN SEVERAL AREAS INCLUDING SOURCING OF RAW MATERIALS AND PACKAGING
bull THE CONSULTANCY FIRM WILL ALSO LOOK AT THE SOURCING OF DIRECT AND INDIRECT MATERIALS LIKE RENEGOTIATING WITH SUPPLIERS FOR LONGER TERM CONTRACTS AND VENDOR MANAGEMENT OTHER COSTS (INDIRECT EXPENSES) LIKE TRAVEL COSTS AND HOTELS WERE ALSO BEING STUDIED
EARNINGS SENSITIVITY FACTORS
bull COCOA BEAN PRICES DOMESTIC AS WELL AS INTERNATIONAL PRICES OF KEY RAW MATERIAL - COCOA HAVE SIGNIFICANT IMPACT ON MARGINS
bull EXCISE DUTIES CHANGES IN EXCISE LEVIED ON MALT AND CHOCOLATE INFLUENCES END PRODUCT PRICES AND THEREBY VOLUME GROWTH AS WELL AS MARGINS
bull CHANGES IN CUSTOM DUTIES AND FOREIGN EXCHANGE FLUCTUATION AS 20 OF RAW MATERIAL IS IMPORTED CHANGES IN CUSTOM DUTIES amp FOREIGN EXCHANGE FLUCTUATIONS HAVE SIGNIFICANT IMPACT ON THE FINAL COST OF THE PRODUCT
bull COMPETITION FROM MNCS LIKE NESTLE AS WELL AS IMPORTED BRANDS INCREASING COMPETITION PUTS PRESSURE ON ADVERTISEMENT BUDGET AND MARGINS HOWEVER ON THE POSITIVE SIDE IT HELPS IN EXPANDING THE MARKET
PLACE
bull PLANT LOCATIONSbull IN INDIA CADBURY BEGAN ITS OPERATIONS IN
1948 BY IMPORTING CHOCOLATES AFTER 60 YEARS OF EXISTENCE IT TODAY HAS FIVE COMPANY-OWNED MANUFACTURING FACILITIES AT THANE INDURI (PUNE) AND MALANPUR (GWALIOR) BANGALORE AND BADDI (HIMACHAL PRADESH) AND 4 SALES OFFICES (NEW DELHI MUMBAI KOLKOTA AND CHENNAI) THE CORPORATE OFFICE IS IN MUMBAITHESE FACTORIES CHURN OUT CLOSE TO 8000 TONNES OF CHOCOLATE ANNUALLY
DISTRIBUTIONbull CHOCOLATE NEEDS TO BE DISTRIBUTED DIRECTLY UNLIKE
OTHER FMCG PRODUCTS LIKE SOAPS ANDbull DETERGENTS WHICH CAN BE SOLD THROUGH A
WHOLESALE NETWORK 90 OF CHOCOLATE PRODUCTS ARE SOLD
bull DIRECTLY TO RETAILERS bull CADBURYS DISTRIBUTION NETWORK USED TO
ENCOMPASSES 2100 DISTRIBUTORS AND 450000 RETAILERS bull TO AVOID CANNIBALIZATION OF ITS HIGHER PRICED
PRODUCTS FROM LOWER PRICED ONES CADBURY ISbull SETTING UP TWO SEPARATE DISTRIBUTION CHANNELS ndash
ONE FOR CORE BUSINESS amp OTHER FOR MASS MARKETS
NATURE OF RETAIL OUTLET
bull CHOCOLATES ARE PRIMARILY SOLD THROUGH KIRANA STORES GIFT STORES MEDICAL STORES CANTEENS
bull PAN-BIDI STORES BAKERIES SWEET SHOPS ETC THIS IS TRUE FOR CHOCOLATES ALSO THE SPACE ALLOCATED FOR
bull THE CHOCOLATES WAS LESS WHEN COMPARED TO THE TOTAL AREA OF THE SHOP OF THE SPACE ALLOCATED FOR
bull CHOCOLATES CADBURY BRANDS OCCUPIED MORE THAN NESTLE BRANDS
PROMOTIONbull ADVERTISEMENTSbull THE ADVERTISEMENT AIMED AT CONVEYING THE IDEA THAT NO
SPECIFIC OCCASION IS REQUIRED FOR CONSUMING CDM
bull CELEBRITIES ENDORSEMENTS
bull CADBURY ROPED IN PREITY ZINTA FOR ITS PERK BRAND PREITY ZINTArsquoS ANGELIC DIMPLES LAID THE
bull FOUNDATION FOR WHAT WOULD BECOME THE INDIAN TEENAGERrsquoS FAVORITE SNACK AFTER THIS CAMPAIGN
bull PERKrsquoS SALE SURGED
bull THE BIG lsquoBrsquo FACTORbull THE BIG FACTOR THAT HAS PUSHED UP CDM SALES IS THE
AMITABH BACHCHAN CAMPAIGN CADBURY APPOINTED AMITABH BACHCHAN AS ITS BRAND AMBASSADOR
CHOCOLATE ADS SHIFT FOCUS FROM KIDS TO YOUTH
bull INDIAN CHOCOLATE MARKET IS ALMOST TOTALLY DEPENDED ON PURCHASES OF KIDS
bull WHILE CADBURY IS TRYING TO SELL INDULGENCE TO ADULTS KIT KAT IS SELLING RITUALISTIC BREAK TO
bull TEENAGERS YOUNG ADULTS THIS IS REFLECTED IN THE CHANGING ADVERTISING PATTERNS ACROSS DIFFERENT
bull CHANNELS
CONCLUSION WHEN PRICED AT EVEN RS 2500KG WHILE THERE ARE PLACES IN
INDIA WHERE PEOPLE HAVE NEVER EVEN TASTED CHOCOLATES ONCEUNDERSTANDING THE CONSUMER DEMANDS AND MAINTAINING THE QUALITY WILL BE ESSENTIALCOMPANIES WILL HAVE TO KEEP THEMSELVES ABREAST WITH THE DEVELOPMENTS IN OTHER PARTS OF THE WORLDPRICING IS THE KEY FOR COMPANIES TO MAKE THEIR PRODUCT REACH CONSUMERSrsquo POCKETS RIGHTPRICING WILL MAKE OR BREAK THE PRODUCT SUCCESS ECONOMICAL DISTRIBUTION OF THE PRODUCTS WILLALSO BE EQUALLY IMPORTANTTHE COMPANIESrsquo STRATEGIES SHOULD FOCUS ON DRIVING SALES THROUGH A RIGHT PRODUCT MIXEFFICIENT MATERIALS PROCUREMENT REDUCED WASTAGES INCREASED FACTORY EFFICIENCIES AND IMPROVED SUPPLY CHAIN MANAGEMENTTHERErsquoS AN IMMENSE SCOPE FOR GROWTH OF CHOCOLATE INDUSTRY IN INDIA - GEOGRAPHICALLY AS WELLAS IN THE PRODUCT OFFERING
BIBLIOGRAPHY
bull WWWCADBURYCOUKbull WWWCHOCOLATEREVIEWCOUKbull WWW CADBURYS CHWEPPESCOMbull WWWWIKIPEDIAORGbull WWWCADBURYCOMbull WWWOPPAPERSCOM REFERENCES-bull PHILIP KOTLER
- BY RAGHAVENDRA MISHRA
- INTRODUCTION
- HISTORY
- MARKETING OBJECTIVES
- TARGET MARKET
- MARKET SEGMENTATION
- GEOGRAPHIC SEGMENTATION
- DEMOGRAPHIC SEGMENTATION
- MARKETING MIX
- PRODUCT
- PRODUCT INNOVATIONS
- PACKAGING
- PRICE
- VOLUME LED GROWTH STRATEGY
- HIRES AT KEARNEY TO CURB COSTS
- EARNINGS SENSITIVITY FACTORS
- PLACE
- DISTRIBUTION
- NATURE OF RETAIL OUTLET
- PROMOTION
- CHOCOLATE ADS SHIFT FOCUS FROM KIDS TO YOUTH
- CONCLUSION
- BIBLIOGRAPHY
-
VOLUME LED GROWTH STRATEGY
bull CADBURY HAS FOLLOWED A WELL-PLANNED STRATEGY OF FUELLING VOLUME GROWTH BY INTRODUCING SMALLER UNIT PACKS AT LOWER PRICE POINTS SIMULTANEOUSLY THE COMPANY SEEMS TO HAVE ASTUTELY JUGGLED WITH THE LARGER PACK SIZES AND RAISED PRICES TO A DEGREE HIGHER THAN WHAT APPEARS AT FACE
HIRES AT KEARNEY TO CURB COSTS
bull CADBURY INDIA APPOINTED MANAGEMENT CONSULTANCY FIRM AT KEARNEY TO DRAW UP A STRATEGY TO CONTROL COSTS IN SEVERAL AREAS INCLUDING SOURCING OF RAW MATERIALS AND PACKAGING
bull THE CONSULTANCY FIRM WILL ALSO LOOK AT THE SOURCING OF DIRECT AND INDIRECT MATERIALS LIKE RENEGOTIATING WITH SUPPLIERS FOR LONGER TERM CONTRACTS AND VENDOR MANAGEMENT OTHER COSTS (INDIRECT EXPENSES) LIKE TRAVEL COSTS AND HOTELS WERE ALSO BEING STUDIED
EARNINGS SENSITIVITY FACTORS
bull COCOA BEAN PRICES DOMESTIC AS WELL AS INTERNATIONAL PRICES OF KEY RAW MATERIAL - COCOA HAVE SIGNIFICANT IMPACT ON MARGINS
bull EXCISE DUTIES CHANGES IN EXCISE LEVIED ON MALT AND CHOCOLATE INFLUENCES END PRODUCT PRICES AND THEREBY VOLUME GROWTH AS WELL AS MARGINS
bull CHANGES IN CUSTOM DUTIES AND FOREIGN EXCHANGE FLUCTUATION AS 20 OF RAW MATERIAL IS IMPORTED CHANGES IN CUSTOM DUTIES amp FOREIGN EXCHANGE FLUCTUATIONS HAVE SIGNIFICANT IMPACT ON THE FINAL COST OF THE PRODUCT
bull COMPETITION FROM MNCS LIKE NESTLE AS WELL AS IMPORTED BRANDS INCREASING COMPETITION PUTS PRESSURE ON ADVERTISEMENT BUDGET AND MARGINS HOWEVER ON THE POSITIVE SIDE IT HELPS IN EXPANDING THE MARKET
PLACE
bull PLANT LOCATIONSbull IN INDIA CADBURY BEGAN ITS OPERATIONS IN
1948 BY IMPORTING CHOCOLATES AFTER 60 YEARS OF EXISTENCE IT TODAY HAS FIVE COMPANY-OWNED MANUFACTURING FACILITIES AT THANE INDURI (PUNE) AND MALANPUR (GWALIOR) BANGALORE AND BADDI (HIMACHAL PRADESH) AND 4 SALES OFFICES (NEW DELHI MUMBAI KOLKOTA AND CHENNAI) THE CORPORATE OFFICE IS IN MUMBAITHESE FACTORIES CHURN OUT CLOSE TO 8000 TONNES OF CHOCOLATE ANNUALLY
DISTRIBUTIONbull CHOCOLATE NEEDS TO BE DISTRIBUTED DIRECTLY UNLIKE
OTHER FMCG PRODUCTS LIKE SOAPS ANDbull DETERGENTS WHICH CAN BE SOLD THROUGH A
WHOLESALE NETWORK 90 OF CHOCOLATE PRODUCTS ARE SOLD
bull DIRECTLY TO RETAILERS bull CADBURYS DISTRIBUTION NETWORK USED TO
ENCOMPASSES 2100 DISTRIBUTORS AND 450000 RETAILERS bull TO AVOID CANNIBALIZATION OF ITS HIGHER PRICED
PRODUCTS FROM LOWER PRICED ONES CADBURY ISbull SETTING UP TWO SEPARATE DISTRIBUTION CHANNELS ndash
ONE FOR CORE BUSINESS amp OTHER FOR MASS MARKETS
NATURE OF RETAIL OUTLET
bull CHOCOLATES ARE PRIMARILY SOLD THROUGH KIRANA STORES GIFT STORES MEDICAL STORES CANTEENS
bull PAN-BIDI STORES BAKERIES SWEET SHOPS ETC THIS IS TRUE FOR CHOCOLATES ALSO THE SPACE ALLOCATED FOR
bull THE CHOCOLATES WAS LESS WHEN COMPARED TO THE TOTAL AREA OF THE SHOP OF THE SPACE ALLOCATED FOR
bull CHOCOLATES CADBURY BRANDS OCCUPIED MORE THAN NESTLE BRANDS
PROMOTIONbull ADVERTISEMENTSbull THE ADVERTISEMENT AIMED AT CONVEYING THE IDEA THAT NO
SPECIFIC OCCASION IS REQUIRED FOR CONSUMING CDM
bull CELEBRITIES ENDORSEMENTS
bull CADBURY ROPED IN PREITY ZINTA FOR ITS PERK BRAND PREITY ZINTArsquoS ANGELIC DIMPLES LAID THE
bull FOUNDATION FOR WHAT WOULD BECOME THE INDIAN TEENAGERrsquoS FAVORITE SNACK AFTER THIS CAMPAIGN
bull PERKrsquoS SALE SURGED
bull THE BIG lsquoBrsquo FACTORbull THE BIG FACTOR THAT HAS PUSHED UP CDM SALES IS THE
AMITABH BACHCHAN CAMPAIGN CADBURY APPOINTED AMITABH BACHCHAN AS ITS BRAND AMBASSADOR
CHOCOLATE ADS SHIFT FOCUS FROM KIDS TO YOUTH
bull INDIAN CHOCOLATE MARKET IS ALMOST TOTALLY DEPENDED ON PURCHASES OF KIDS
bull WHILE CADBURY IS TRYING TO SELL INDULGENCE TO ADULTS KIT KAT IS SELLING RITUALISTIC BREAK TO
bull TEENAGERS YOUNG ADULTS THIS IS REFLECTED IN THE CHANGING ADVERTISING PATTERNS ACROSS DIFFERENT
bull CHANNELS
CONCLUSION WHEN PRICED AT EVEN RS 2500KG WHILE THERE ARE PLACES IN
INDIA WHERE PEOPLE HAVE NEVER EVEN TASTED CHOCOLATES ONCEUNDERSTANDING THE CONSUMER DEMANDS AND MAINTAINING THE QUALITY WILL BE ESSENTIALCOMPANIES WILL HAVE TO KEEP THEMSELVES ABREAST WITH THE DEVELOPMENTS IN OTHER PARTS OF THE WORLDPRICING IS THE KEY FOR COMPANIES TO MAKE THEIR PRODUCT REACH CONSUMERSrsquo POCKETS RIGHTPRICING WILL MAKE OR BREAK THE PRODUCT SUCCESS ECONOMICAL DISTRIBUTION OF THE PRODUCTS WILLALSO BE EQUALLY IMPORTANTTHE COMPANIESrsquo STRATEGIES SHOULD FOCUS ON DRIVING SALES THROUGH A RIGHT PRODUCT MIXEFFICIENT MATERIALS PROCUREMENT REDUCED WASTAGES INCREASED FACTORY EFFICIENCIES AND IMPROVED SUPPLY CHAIN MANAGEMENTTHERErsquoS AN IMMENSE SCOPE FOR GROWTH OF CHOCOLATE INDUSTRY IN INDIA - GEOGRAPHICALLY AS WELLAS IN THE PRODUCT OFFERING
BIBLIOGRAPHY
bull WWWCADBURYCOUKbull WWWCHOCOLATEREVIEWCOUKbull WWW CADBURYS CHWEPPESCOMbull WWWWIKIPEDIAORGbull WWWCADBURYCOMbull WWWOPPAPERSCOM REFERENCES-bull PHILIP KOTLER
- BY RAGHAVENDRA MISHRA
- INTRODUCTION
- HISTORY
- MARKETING OBJECTIVES
- TARGET MARKET
- MARKET SEGMENTATION
- GEOGRAPHIC SEGMENTATION
- DEMOGRAPHIC SEGMENTATION
- MARKETING MIX
- PRODUCT
- PRODUCT INNOVATIONS
- PACKAGING
- PRICE
- VOLUME LED GROWTH STRATEGY
- HIRES AT KEARNEY TO CURB COSTS
- EARNINGS SENSITIVITY FACTORS
- PLACE
- DISTRIBUTION
- NATURE OF RETAIL OUTLET
- PROMOTION
- CHOCOLATE ADS SHIFT FOCUS FROM KIDS TO YOUTH
- CONCLUSION
- BIBLIOGRAPHY
-
HIRES AT KEARNEY TO CURB COSTS
bull CADBURY INDIA APPOINTED MANAGEMENT CONSULTANCY FIRM AT KEARNEY TO DRAW UP A STRATEGY TO CONTROL COSTS IN SEVERAL AREAS INCLUDING SOURCING OF RAW MATERIALS AND PACKAGING
bull THE CONSULTANCY FIRM WILL ALSO LOOK AT THE SOURCING OF DIRECT AND INDIRECT MATERIALS LIKE RENEGOTIATING WITH SUPPLIERS FOR LONGER TERM CONTRACTS AND VENDOR MANAGEMENT OTHER COSTS (INDIRECT EXPENSES) LIKE TRAVEL COSTS AND HOTELS WERE ALSO BEING STUDIED
EARNINGS SENSITIVITY FACTORS
bull COCOA BEAN PRICES DOMESTIC AS WELL AS INTERNATIONAL PRICES OF KEY RAW MATERIAL - COCOA HAVE SIGNIFICANT IMPACT ON MARGINS
bull EXCISE DUTIES CHANGES IN EXCISE LEVIED ON MALT AND CHOCOLATE INFLUENCES END PRODUCT PRICES AND THEREBY VOLUME GROWTH AS WELL AS MARGINS
bull CHANGES IN CUSTOM DUTIES AND FOREIGN EXCHANGE FLUCTUATION AS 20 OF RAW MATERIAL IS IMPORTED CHANGES IN CUSTOM DUTIES amp FOREIGN EXCHANGE FLUCTUATIONS HAVE SIGNIFICANT IMPACT ON THE FINAL COST OF THE PRODUCT
bull COMPETITION FROM MNCS LIKE NESTLE AS WELL AS IMPORTED BRANDS INCREASING COMPETITION PUTS PRESSURE ON ADVERTISEMENT BUDGET AND MARGINS HOWEVER ON THE POSITIVE SIDE IT HELPS IN EXPANDING THE MARKET
PLACE
bull PLANT LOCATIONSbull IN INDIA CADBURY BEGAN ITS OPERATIONS IN
1948 BY IMPORTING CHOCOLATES AFTER 60 YEARS OF EXISTENCE IT TODAY HAS FIVE COMPANY-OWNED MANUFACTURING FACILITIES AT THANE INDURI (PUNE) AND MALANPUR (GWALIOR) BANGALORE AND BADDI (HIMACHAL PRADESH) AND 4 SALES OFFICES (NEW DELHI MUMBAI KOLKOTA AND CHENNAI) THE CORPORATE OFFICE IS IN MUMBAITHESE FACTORIES CHURN OUT CLOSE TO 8000 TONNES OF CHOCOLATE ANNUALLY
DISTRIBUTIONbull CHOCOLATE NEEDS TO BE DISTRIBUTED DIRECTLY UNLIKE
OTHER FMCG PRODUCTS LIKE SOAPS ANDbull DETERGENTS WHICH CAN BE SOLD THROUGH A
WHOLESALE NETWORK 90 OF CHOCOLATE PRODUCTS ARE SOLD
bull DIRECTLY TO RETAILERS bull CADBURYS DISTRIBUTION NETWORK USED TO
ENCOMPASSES 2100 DISTRIBUTORS AND 450000 RETAILERS bull TO AVOID CANNIBALIZATION OF ITS HIGHER PRICED
PRODUCTS FROM LOWER PRICED ONES CADBURY ISbull SETTING UP TWO SEPARATE DISTRIBUTION CHANNELS ndash
ONE FOR CORE BUSINESS amp OTHER FOR MASS MARKETS
NATURE OF RETAIL OUTLET
bull CHOCOLATES ARE PRIMARILY SOLD THROUGH KIRANA STORES GIFT STORES MEDICAL STORES CANTEENS
bull PAN-BIDI STORES BAKERIES SWEET SHOPS ETC THIS IS TRUE FOR CHOCOLATES ALSO THE SPACE ALLOCATED FOR
bull THE CHOCOLATES WAS LESS WHEN COMPARED TO THE TOTAL AREA OF THE SHOP OF THE SPACE ALLOCATED FOR
bull CHOCOLATES CADBURY BRANDS OCCUPIED MORE THAN NESTLE BRANDS
PROMOTIONbull ADVERTISEMENTSbull THE ADVERTISEMENT AIMED AT CONVEYING THE IDEA THAT NO
SPECIFIC OCCASION IS REQUIRED FOR CONSUMING CDM
bull CELEBRITIES ENDORSEMENTS
bull CADBURY ROPED IN PREITY ZINTA FOR ITS PERK BRAND PREITY ZINTArsquoS ANGELIC DIMPLES LAID THE
bull FOUNDATION FOR WHAT WOULD BECOME THE INDIAN TEENAGERrsquoS FAVORITE SNACK AFTER THIS CAMPAIGN
bull PERKrsquoS SALE SURGED
bull THE BIG lsquoBrsquo FACTORbull THE BIG FACTOR THAT HAS PUSHED UP CDM SALES IS THE
AMITABH BACHCHAN CAMPAIGN CADBURY APPOINTED AMITABH BACHCHAN AS ITS BRAND AMBASSADOR
CHOCOLATE ADS SHIFT FOCUS FROM KIDS TO YOUTH
bull INDIAN CHOCOLATE MARKET IS ALMOST TOTALLY DEPENDED ON PURCHASES OF KIDS
bull WHILE CADBURY IS TRYING TO SELL INDULGENCE TO ADULTS KIT KAT IS SELLING RITUALISTIC BREAK TO
bull TEENAGERS YOUNG ADULTS THIS IS REFLECTED IN THE CHANGING ADVERTISING PATTERNS ACROSS DIFFERENT
bull CHANNELS
CONCLUSION WHEN PRICED AT EVEN RS 2500KG WHILE THERE ARE PLACES IN
INDIA WHERE PEOPLE HAVE NEVER EVEN TASTED CHOCOLATES ONCEUNDERSTANDING THE CONSUMER DEMANDS AND MAINTAINING THE QUALITY WILL BE ESSENTIALCOMPANIES WILL HAVE TO KEEP THEMSELVES ABREAST WITH THE DEVELOPMENTS IN OTHER PARTS OF THE WORLDPRICING IS THE KEY FOR COMPANIES TO MAKE THEIR PRODUCT REACH CONSUMERSrsquo POCKETS RIGHTPRICING WILL MAKE OR BREAK THE PRODUCT SUCCESS ECONOMICAL DISTRIBUTION OF THE PRODUCTS WILLALSO BE EQUALLY IMPORTANTTHE COMPANIESrsquo STRATEGIES SHOULD FOCUS ON DRIVING SALES THROUGH A RIGHT PRODUCT MIXEFFICIENT MATERIALS PROCUREMENT REDUCED WASTAGES INCREASED FACTORY EFFICIENCIES AND IMPROVED SUPPLY CHAIN MANAGEMENTTHERErsquoS AN IMMENSE SCOPE FOR GROWTH OF CHOCOLATE INDUSTRY IN INDIA - GEOGRAPHICALLY AS WELLAS IN THE PRODUCT OFFERING
BIBLIOGRAPHY
bull WWWCADBURYCOUKbull WWWCHOCOLATEREVIEWCOUKbull WWW CADBURYS CHWEPPESCOMbull WWWWIKIPEDIAORGbull WWWCADBURYCOMbull WWWOPPAPERSCOM REFERENCES-bull PHILIP KOTLER
- BY RAGHAVENDRA MISHRA
- INTRODUCTION
- HISTORY
- MARKETING OBJECTIVES
- TARGET MARKET
- MARKET SEGMENTATION
- GEOGRAPHIC SEGMENTATION
- DEMOGRAPHIC SEGMENTATION
- MARKETING MIX
- PRODUCT
- PRODUCT INNOVATIONS
- PACKAGING
- PRICE
- VOLUME LED GROWTH STRATEGY
- HIRES AT KEARNEY TO CURB COSTS
- EARNINGS SENSITIVITY FACTORS
- PLACE
- DISTRIBUTION
- NATURE OF RETAIL OUTLET
- PROMOTION
- CHOCOLATE ADS SHIFT FOCUS FROM KIDS TO YOUTH
- CONCLUSION
- BIBLIOGRAPHY
-
EARNINGS SENSITIVITY FACTORS
bull COCOA BEAN PRICES DOMESTIC AS WELL AS INTERNATIONAL PRICES OF KEY RAW MATERIAL - COCOA HAVE SIGNIFICANT IMPACT ON MARGINS
bull EXCISE DUTIES CHANGES IN EXCISE LEVIED ON MALT AND CHOCOLATE INFLUENCES END PRODUCT PRICES AND THEREBY VOLUME GROWTH AS WELL AS MARGINS
bull CHANGES IN CUSTOM DUTIES AND FOREIGN EXCHANGE FLUCTUATION AS 20 OF RAW MATERIAL IS IMPORTED CHANGES IN CUSTOM DUTIES amp FOREIGN EXCHANGE FLUCTUATIONS HAVE SIGNIFICANT IMPACT ON THE FINAL COST OF THE PRODUCT
bull COMPETITION FROM MNCS LIKE NESTLE AS WELL AS IMPORTED BRANDS INCREASING COMPETITION PUTS PRESSURE ON ADVERTISEMENT BUDGET AND MARGINS HOWEVER ON THE POSITIVE SIDE IT HELPS IN EXPANDING THE MARKET
PLACE
bull PLANT LOCATIONSbull IN INDIA CADBURY BEGAN ITS OPERATIONS IN
1948 BY IMPORTING CHOCOLATES AFTER 60 YEARS OF EXISTENCE IT TODAY HAS FIVE COMPANY-OWNED MANUFACTURING FACILITIES AT THANE INDURI (PUNE) AND MALANPUR (GWALIOR) BANGALORE AND BADDI (HIMACHAL PRADESH) AND 4 SALES OFFICES (NEW DELHI MUMBAI KOLKOTA AND CHENNAI) THE CORPORATE OFFICE IS IN MUMBAITHESE FACTORIES CHURN OUT CLOSE TO 8000 TONNES OF CHOCOLATE ANNUALLY
DISTRIBUTIONbull CHOCOLATE NEEDS TO BE DISTRIBUTED DIRECTLY UNLIKE
OTHER FMCG PRODUCTS LIKE SOAPS ANDbull DETERGENTS WHICH CAN BE SOLD THROUGH A
WHOLESALE NETWORK 90 OF CHOCOLATE PRODUCTS ARE SOLD
bull DIRECTLY TO RETAILERS bull CADBURYS DISTRIBUTION NETWORK USED TO
ENCOMPASSES 2100 DISTRIBUTORS AND 450000 RETAILERS bull TO AVOID CANNIBALIZATION OF ITS HIGHER PRICED
PRODUCTS FROM LOWER PRICED ONES CADBURY ISbull SETTING UP TWO SEPARATE DISTRIBUTION CHANNELS ndash
ONE FOR CORE BUSINESS amp OTHER FOR MASS MARKETS
NATURE OF RETAIL OUTLET
bull CHOCOLATES ARE PRIMARILY SOLD THROUGH KIRANA STORES GIFT STORES MEDICAL STORES CANTEENS
bull PAN-BIDI STORES BAKERIES SWEET SHOPS ETC THIS IS TRUE FOR CHOCOLATES ALSO THE SPACE ALLOCATED FOR
bull THE CHOCOLATES WAS LESS WHEN COMPARED TO THE TOTAL AREA OF THE SHOP OF THE SPACE ALLOCATED FOR
bull CHOCOLATES CADBURY BRANDS OCCUPIED MORE THAN NESTLE BRANDS
PROMOTIONbull ADVERTISEMENTSbull THE ADVERTISEMENT AIMED AT CONVEYING THE IDEA THAT NO
SPECIFIC OCCASION IS REQUIRED FOR CONSUMING CDM
bull CELEBRITIES ENDORSEMENTS
bull CADBURY ROPED IN PREITY ZINTA FOR ITS PERK BRAND PREITY ZINTArsquoS ANGELIC DIMPLES LAID THE
bull FOUNDATION FOR WHAT WOULD BECOME THE INDIAN TEENAGERrsquoS FAVORITE SNACK AFTER THIS CAMPAIGN
bull PERKrsquoS SALE SURGED
bull THE BIG lsquoBrsquo FACTORbull THE BIG FACTOR THAT HAS PUSHED UP CDM SALES IS THE
AMITABH BACHCHAN CAMPAIGN CADBURY APPOINTED AMITABH BACHCHAN AS ITS BRAND AMBASSADOR
CHOCOLATE ADS SHIFT FOCUS FROM KIDS TO YOUTH
bull INDIAN CHOCOLATE MARKET IS ALMOST TOTALLY DEPENDED ON PURCHASES OF KIDS
bull WHILE CADBURY IS TRYING TO SELL INDULGENCE TO ADULTS KIT KAT IS SELLING RITUALISTIC BREAK TO
bull TEENAGERS YOUNG ADULTS THIS IS REFLECTED IN THE CHANGING ADVERTISING PATTERNS ACROSS DIFFERENT
bull CHANNELS
CONCLUSION WHEN PRICED AT EVEN RS 2500KG WHILE THERE ARE PLACES IN
INDIA WHERE PEOPLE HAVE NEVER EVEN TASTED CHOCOLATES ONCEUNDERSTANDING THE CONSUMER DEMANDS AND MAINTAINING THE QUALITY WILL BE ESSENTIALCOMPANIES WILL HAVE TO KEEP THEMSELVES ABREAST WITH THE DEVELOPMENTS IN OTHER PARTS OF THE WORLDPRICING IS THE KEY FOR COMPANIES TO MAKE THEIR PRODUCT REACH CONSUMERSrsquo POCKETS RIGHTPRICING WILL MAKE OR BREAK THE PRODUCT SUCCESS ECONOMICAL DISTRIBUTION OF THE PRODUCTS WILLALSO BE EQUALLY IMPORTANTTHE COMPANIESrsquo STRATEGIES SHOULD FOCUS ON DRIVING SALES THROUGH A RIGHT PRODUCT MIXEFFICIENT MATERIALS PROCUREMENT REDUCED WASTAGES INCREASED FACTORY EFFICIENCIES AND IMPROVED SUPPLY CHAIN MANAGEMENTTHERErsquoS AN IMMENSE SCOPE FOR GROWTH OF CHOCOLATE INDUSTRY IN INDIA - GEOGRAPHICALLY AS WELLAS IN THE PRODUCT OFFERING
BIBLIOGRAPHY
bull WWWCADBURYCOUKbull WWWCHOCOLATEREVIEWCOUKbull WWW CADBURYS CHWEPPESCOMbull WWWWIKIPEDIAORGbull WWWCADBURYCOMbull WWWOPPAPERSCOM REFERENCES-bull PHILIP KOTLER
- BY RAGHAVENDRA MISHRA
- INTRODUCTION
- HISTORY
- MARKETING OBJECTIVES
- TARGET MARKET
- MARKET SEGMENTATION
- GEOGRAPHIC SEGMENTATION
- DEMOGRAPHIC SEGMENTATION
- MARKETING MIX
- PRODUCT
- PRODUCT INNOVATIONS
- PACKAGING
- PRICE
- VOLUME LED GROWTH STRATEGY
- HIRES AT KEARNEY TO CURB COSTS
- EARNINGS SENSITIVITY FACTORS
- PLACE
- DISTRIBUTION
- NATURE OF RETAIL OUTLET
- PROMOTION
- CHOCOLATE ADS SHIFT FOCUS FROM KIDS TO YOUTH
- CONCLUSION
- BIBLIOGRAPHY
-
PLACE
bull PLANT LOCATIONSbull IN INDIA CADBURY BEGAN ITS OPERATIONS IN
1948 BY IMPORTING CHOCOLATES AFTER 60 YEARS OF EXISTENCE IT TODAY HAS FIVE COMPANY-OWNED MANUFACTURING FACILITIES AT THANE INDURI (PUNE) AND MALANPUR (GWALIOR) BANGALORE AND BADDI (HIMACHAL PRADESH) AND 4 SALES OFFICES (NEW DELHI MUMBAI KOLKOTA AND CHENNAI) THE CORPORATE OFFICE IS IN MUMBAITHESE FACTORIES CHURN OUT CLOSE TO 8000 TONNES OF CHOCOLATE ANNUALLY
DISTRIBUTIONbull CHOCOLATE NEEDS TO BE DISTRIBUTED DIRECTLY UNLIKE
OTHER FMCG PRODUCTS LIKE SOAPS ANDbull DETERGENTS WHICH CAN BE SOLD THROUGH A
WHOLESALE NETWORK 90 OF CHOCOLATE PRODUCTS ARE SOLD
bull DIRECTLY TO RETAILERS bull CADBURYS DISTRIBUTION NETWORK USED TO
ENCOMPASSES 2100 DISTRIBUTORS AND 450000 RETAILERS bull TO AVOID CANNIBALIZATION OF ITS HIGHER PRICED
PRODUCTS FROM LOWER PRICED ONES CADBURY ISbull SETTING UP TWO SEPARATE DISTRIBUTION CHANNELS ndash
ONE FOR CORE BUSINESS amp OTHER FOR MASS MARKETS
NATURE OF RETAIL OUTLET
bull CHOCOLATES ARE PRIMARILY SOLD THROUGH KIRANA STORES GIFT STORES MEDICAL STORES CANTEENS
bull PAN-BIDI STORES BAKERIES SWEET SHOPS ETC THIS IS TRUE FOR CHOCOLATES ALSO THE SPACE ALLOCATED FOR
bull THE CHOCOLATES WAS LESS WHEN COMPARED TO THE TOTAL AREA OF THE SHOP OF THE SPACE ALLOCATED FOR
bull CHOCOLATES CADBURY BRANDS OCCUPIED MORE THAN NESTLE BRANDS
PROMOTIONbull ADVERTISEMENTSbull THE ADVERTISEMENT AIMED AT CONVEYING THE IDEA THAT NO
SPECIFIC OCCASION IS REQUIRED FOR CONSUMING CDM
bull CELEBRITIES ENDORSEMENTS
bull CADBURY ROPED IN PREITY ZINTA FOR ITS PERK BRAND PREITY ZINTArsquoS ANGELIC DIMPLES LAID THE
bull FOUNDATION FOR WHAT WOULD BECOME THE INDIAN TEENAGERrsquoS FAVORITE SNACK AFTER THIS CAMPAIGN
bull PERKrsquoS SALE SURGED
bull THE BIG lsquoBrsquo FACTORbull THE BIG FACTOR THAT HAS PUSHED UP CDM SALES IS THE
AMITABH BACHCHAN CAMPAIGN CADBURY APPOINTED AMITABH BACHCHAN AS ITS BRAND AMBASSADOR
CHOCOLATE ADS SHIFT FOCUS FROM KIDS TO YOUTH
bull INDIAN CHOCOLATE MARKET IS ALMOST TOTALLY DEPENDED ON PURCHASES OF KIDS
bull WHILE CADBURY IS TRYING TO SELL INDULGENCE TO ADULTS KIT KAT IS SELLING RITUALISTIC BREAK TO
bull TEENAGERS YOUNG ADULTS THIS IS REFLECTED IN THE CHANGING ADVERTISING PATTERNS ACROSS DIFFERENT
bull CHANNELS
CONCLUSION WHEN PRICED AT EVEN RS 2500KG WHILE THERE ARE PLACES IN
INDIA WHERE PEOPLE HAVE NEVER EVEN TASTED CHOCOLATES ONCEUNDERSTANDING THE CONSUMER DEMANDS AND MAINTAINING THE QUALITY WILL BE ESSENTIALCOMPANIES WILL HAVE TO KEEP THEMSELVES ABREAST WITH THE DEVELOPMENTS IN OTHER PARTS OF THE WORLDPRICING IS THE KEY FOR COMPANIES TO MAKE THEIR PRODUCT REACH CONSUMERSrsquo POCKETS RIGHTPRICING WILL MAKE OR BREAK THE PRODUCT SUCCESS ECONOMICAL DISTRIBUTION OF THE PRODUCTS WILLALSO BE EQUALLY IMPORTANTTHE COMPANIESrsquo STRATEGIES SHOULD FOCUS ON DRIVING SALES THROUGH A RIGHT PRODUCT MIXEFFICIENT MATERIALS PROCUREMENT REDUCED WASTAGES INCREASED FACTORY EFFICIENCIES AND IMPROVED SUPPLY CHAIN MANAGEMENTTHERErsquoS AN IMMENSE SCOPE FOR GROWTH OF CHOCOLATE INDUSTRY IN INDIA - GEOGRAPHICALLY AS WELLAS IN THE PRODUCT OFFERING
BIBLIOGRAPHY
bull WWWCADBURYCOUKbull WWWCHOCOLATEREVIEWCOUKbull WWW CADBURYS CHWEPPESCOMbull WWWWIKIPEDIAORGbull WWWCADBURYCOMbull WWWOPPAPERSCOM REFERENCES-bull PHILIP KOTLER
- BY RAGHAVENDRA MISHRA
- INTRODUCTION
- HISTORY
- MARKETING OBJECTIVES
- TARGET MARKET
- MARKET SEGMENTATION
- GEOGRAPHIC SEGMENTATION
- DEMOGRAPHIC SEGMENTATION
- MARKETING MIX
- PRODUCT
- PRODUCT INNOVATIONS
- PACKAGING
- PRICE
- VOLUME LED GROWTH STRATEGY
- HIRES AT KEARNEY TO CURB COSTS
- EARNINGS SENSITIVITY FACTORS
- PLACE
- DISTRIBUTION
- NATURE OF RETAIL OUTLET
- PROMOTION
- CHOCOLATE ADS SHIFT FOCUS FROM KIDS TO YOUTH
- CONCLUSION
- BIBLIOGRAPHY
-
DISTRIBUTIONbull CHOCOLATE NEEDS TO BE DISTRIBUTED DIRECTLY UNLIKE
OTHER FMCG PRODUCTS LIKE SOAPS ANDbull DETERGENTS WHICH CAN BE SOLD THROUGH A
WHOLESALE NETWORK 90 OF CHOCOLATE PRODUCTS ARE SOLD
bull DIRECTLY TO RETAILERS bull CADBURYS DISTRIBUTION NETWORK USED TO
ENCOMPASSES 2100 DISTRIBUTORS AND 450000 RETAILERS bull TO AVOID CANNIBALIZATION OF ITS HIGHER PRICED
PRODUCTS FROM LOWER PRICED ONES CADBURY ISbull SETTING UP TWO SEPARATE DISTRIBUTION CHANNELS ndash
ONE FOR CORE BUSINESS amp OTHER FOR MASS MARKETS
NATURE OF RETAIL OUTLET
bull CHOCOLATES ARE PRIMARILY SOLD THROUGH KIRANA STORES GIFT STORES MEDICAL STORES CANTEENS
bull PAN-BIDI STORES BAKERIES SWEET SHOPS ETC THIS IS TRUE FOR CHOCOLATES ALSO THE SPACE ALLOCATED FOR
bull THE CHOCOLATES WAS LESS WHEN COMPARED TO THE TOTAL AREA OF THE SHOP OF THE SPACE ALLOCATED FOR
bull CHOCOLATES CADBURY BRANDS OCCUPIED MORE THAN NESTLE BRANDS
PROMOTIONbull ADVERTISEMENTSbull THE ADVERTISEMENT AIMED AT CONVEYING THE IDEA THAT NO
SPECIFIC OCCASION IS REQUIRED FOR CONSUMING CDM
bull CELEBRITIES ENDORSEMENTS
bull CADBURY ROPED IN PREITY ZINTA FOR ITS PERK BRAND PREITY ZINTArsquoS ANGELIC DIMPLES LAID THE
bull FOUNDATION FOR WHAT WOULD BECOME THE INDIAN TEENAGERrsquoS FAVORITE SNACK AFTER THIS CAMPAIGN
bull PERKrsquoS SALE SURGED
bull THE BIG lsquoBrsquo FACTORbull THE BIG FACTOR THAT HAS PUSHED UP CDM SALES IS THE
AMITABH BACHCHAN CAMPAIGN CADBURY APPOINTED AMITABH BACHCHAN AS ITS BRAND AMBASSADOR
CHOCOLATE ADS SHIFT FOCUS FROM KIDS TO YOUTH
bull INDIAN CHOCOLATE MARKET IS ALMOST TOTALLY DEPENDED ON PURCHASES OF KIDS
bull WHILE CADBURY IS TRYING TO SELL INDULGENCE TO ADULTS KIT KAT IS SELLING RITUALISTIC BREAK TO
bull TEENAGERS YOUNG ADULTS THIS IS REFLECTED IN THE CHANGING ADVERTISING PATTERNS ACROSS DIFFERENT
bull CHANNELS
CONCLUSION WHEN PRICED AT EVEN RS 2500KG WHILE THERE ARE PLACES IN
INDIA WHERE PEOPLE HAVE NEVER EVEN TASTED CHOCOLATES ONCEUNDERSTANDING THE CONSUMER DEMANDS AND MAINTAINING THE QUALITY WILL BE ESSENTIALCOMPANIES WILL HAVE TO KEEP THEMSELVES ABREAST WITH THE DEVELOPMENTS IN OTHER PARTS OF THE WORLDPRICING IS THE KEY FOR COMPANIES TO MAKE THEIR PRODUCT REACH CONSUMERSrsquo POCKETS RIGHTPRICING WILL MAKE OR BREAK THE PRODUCT SUCCESS ECONOMICAL DISTRIBUTION OF THE PRODUCTS WILLALSO BE EQUALLY IMPORTANTTHE COMPANIESrsquo STRATEGIES SHOULD FOCUS ON DRIVING SALES THROUGH A RIGHT PRODUCT MIXEFFICIENT MATERIALS PROCUREMENT REDUCED WASTAGES INCREASED FACTORY EFFICIENCIES AND IMPROVED SUPPLY CHAIN MANAGEMENTTHERErsquoS AN IMMENSE SCOPE FOR GROWTH OF CHOCOLATE INDUSTRY IN INDIA - GEOGRAPHICALLY AS WELLAS IN THE PRODUCT OFFERING
BIBLIOGRAPHY
bull WWWCADBURYCOUKbull WWWCHOCOLATEREVIEWCOUKbull WWW CADBURYS CHWEPPESCOMbull WWWWIKIPEDIAORGbull WWWCADBURYCOMbull WWWOPPAPERSCOM REFERENCES-bull PHILIP KOTLER
- BY RAGHAVENDRA MISHRA
- INTRODUCTION
- HISTORY
- MARKETING OBJECTIVES
- TARGET MARKET
- MARKET SEGMENTATION
- GEOGRAPHIC SEGMENTATION
- DEMOGRAPHIC SEGMENTATION
- MARKETING MIX
- PRODUCT
- PRODUCT INNOVATIONS
- PACKAGING
- PRICE
- VOLUME LED GROWTH STRATEGY
- HIRES AT KEARNEY TO CURB COSTS
- EARNINGS SENSITIVITY FACTORS
- PLACE
- DISTRIBUTION
- NATURE OF RETAIL OUTLET
- PROMOTION
- CHOCOLATE ADS SHIFT FOCUS FROM KIDS TO YOUTH
- CONCLUSION
- BIBLIOGRAPHY
-
NATURE OF RETAIL OUTLET
bull CHOCOLATES ARE PRIMARILY SOLD THROUGH KIRANA STORES GIFT STORES MEDICAL STORES CANTEENS
bull PAN-BIDI STORES BAKERIES SWEET SHOPS ETC THIS IS TRUE FOR CHOCOLATES ALSO THE SPACE ALLOCATED FOR
bull THE CHOCOLATES WAS LESS WHEN COMPARED TO THE TOTAL AREA OF THE SHOP OF THE SPACE ALLOCATED FOR
bull CHOCOLATES CADBURY BRANDS OCCUPIED MORE THAN NESTLE BRANDS
PROMOTIONbull ADVERTISEMENTSbull THE ADVERTISEMENT AIMED AT CONVEYING THE IDEA THAT NO
SPECIFIC OCCASION IS REQUIRED FOR CONSUMING CDM
bull CELEBRITIES ENDORSEMENTS
bull CADBURY ROPED IN PREITY ZINTA FOR ITS PERK BRAND PREITY ZINTArsquoS ANGELIC DIMPLES LAID THE
bull FOUNDATION FOR WHAT WOULD BECOME THE INDIAN TEENAGERrsquoS FAVORITE SNACK AFTER THIS CAMPAIGN
bull PERKrsquoS SALE SURGED
bull THE BIG lsquoBrsquo FACTORbull THE BIG FACTOR THAT HAS PUSHED UP CDM SALES IS THE
AMITABH BACHCHAN CAMPAIGN CADBURY APPOINTED AMITABH BACHCHAN AS ITS BRAND AMBASSADOR
CHOCOLATE ADS SHIFT FOCUS FROM KIDS TO YOUTH
bull INDIAN CHOCOLATE MARKET IS ALMOST TOTALLY DEPENDED ON PURCHASES OF KIDS
bull WHILE CADBURY IS TRYING TO SELL INDULGENCE TO ADULTS KIT KAT IS SELLING RITUALISTIC BREAK TO
bull TEENAGERS YOUNG ADULTS THIS IS REFLECTED IN THE CHANGING ADVERTISING PATTERNS ACROSS DIFFERENT
bull CHANNELS
CONCLUSION WHEN PRICED AT EVEN RS 2500KG WHILE THERE ARE PLACES IN
INDIA WHERE PEOPLE HAVE NEVER EVEN TASTED CHOCOLATES ONCEUNDERSTANDING THE CONSUMER DEMANDS AND MAINTAINING THE QUALITY WILL BE ESSENTIALCOMPANIES WILL HAVE TO KEEP THEMSELVES ABREAST WITH THE DEVELOPMENTS IN OTHER PARTS OF THE WORLDPRICING IS THE KEY FOR COMPANIES TO MAKE THEIR PRODUCT REACH CONSUMERSrsquo POCKETS RIGHTPRICING WILL MAKE OR BREAK THE PRODUCT SUCCESS ECONOMICAL DISTRIBUTION OF THE PRODUCTS WILLALSO BE EQUALLY IMPORTANTTHE COMPANIESrsquo STRATEGIES SHOULD FOCUS ON DRIVING SALES THROUGH A RIGHT PRODUCT MIXEFFICIENT MATERIALS PROCUREMENT REDUCED WASTAGES INCREASED FACTORY EFFICIENCIES AND IMPROVED SUPPLY CHAIN MANAGEMENTTHERErsquoS AN IMMENSE SCOPE FOR GROWTH OF CHOCOLATE INDUSTRY IN INDIA - GEOGRAPHICALLY AS WELLAS IN THE PRODUCT OFFERING
BIBLIOGRAPHY
bull WWWCADBURYCOUKbull WWWCHOCOLATEREVIEWCOUKbull WWW CADBURYS CHWEPPESCOMbull WWWWIKIPEDIAORGbull WWWCADBURYCOMbull WWWOPPAPERSCOM REFERENCES-bull PHILIP KOTLER
- BY RAGHAVENDRA MISHRA
- INTRODUCTION
- HISTORY
- MARKETING OBJECTIVES
- TARGET MARKET
- MARKET SEGMENTATION
- GEOGRAPHIC SEGMENTATION
- DEMOGRAPHIC SEGMENTATION
- MARKETING MIX
- PRODUCT
- PRODUCT INNOVATIONS
- PACKAGING
- PRICE
- VOLUME LED GROWTH STRATEGY
- HIRES AT KEARNEY TO CURB COSTS
- EARNINGS SENSITIVITY FACTORS
- PLACE
- DISTRIBUTION
- NATURE OF RETAIL OUTLET
- PROMOTION
- CHOCOLATE ADS SHIFT FOCUS FROM KIDS TO YOUTH
- CONCLUSION
- BIBLIOGRAPHY
-
PROMOTIONbull ADVERTISEMENTSbull THE ADVERTISEMENT AIMED AT CONVEYING THE IDEA THAT NO
SPECIFIC OCCASION IS REQUIRED FOR CONSUMING CDM
bull CELEBRITIES ENDORSEMENTS
bull CADBURY ROPED IN PREITY ZINTA FOR ITS PERK BRAND PREITY ZINTArsquoS ANGELIC DIMPLES LAID THE
bull FOUNDATION FOR WHAT WOULD BECOME THE INDIAN TEENAGERrsquoS FAVORITE SNACK AFTER THIS CAMPAIGN
bull PERKrsquoS SALE SURGED
bull THE BIG lsquoBrsquo FACTORbull THE BIG FACTOR THAT HAS PUSHED UP CDM SALES IS THE
AMITABH BACHCHAN CAMPAIGN CADBURY APPOINTED AMITABH BACHCHAN AS ITS BRAND AMBASSADOR
CHOCOLATE ADS SHIFT FOCUS FROM KIDS TO YOUTH
bull INDIAN CHOCOLATE MARKET IS ALMOST TOTALLY DEPENDED ON PURCHASES OF KIDS
bull WHILE CADBURY IS TRYING TO SELL INDULGENCE TO ADULTS KIT KAT IS SELLING RITUALISTIC BREAK TO
bull TEENAGERS YOUNG ADULTS THIS IS REFLECTED IN THE CHANGING ADVERTISING PATTERNS ACROSS DIFFERENT
bull CHANNELS
CONCLUSION WHEN PRICED AT EVEN RS 2500KG WHILE THERE ARE PLACES IN
INDIA WHERE PEOPLE HAVE NEVER EVEN TASTED CHOCOLATES ONCEUNDERSTANDING THE CONSUMER DEMANDS AND MAINTAINING THE QUALITY WILL BE ESSENTIALCOMPANIES WILL HAVE TO KEEP THEMSELVES ABREAST WITH THE DEVELOPMENTS IN OTHER PARTS OF THE WORLDPRICING IS THE KEY FOR COMPANIES TO MAKE THEIR PRODUCT REACH CONSUMERSrsquo POCKETS RIGHTPRICING WILL MAKE OR BREAK THE PRODUCT SUCCESS ECONOMICAL DISTRIBUTION OF THE PRODUCTS WILLALSO BE EQUALLY IMPORTANTTHE COMPANIESrsquo STRATEGIES SHOULD FOCUS ON DRIVING SALES THROUGH A RIGHT PRODUCT MIXEFFICIENT MATERIALS PROCUREMENT REDUCED WASTAGES INCREASED FACTORY EFFICIENCIES AND IMPROVED SUPPLY CHAIN MANAGEMENTTHERErsquoS AN IMMENSE SCOPE FOR GROWTH OF CHOCOLATE INDUSTRY IN INDIA - GEOGRAPHICALLY AS WELLAS IN THE PRODUCT OFFERING
BIBLIOGRAPHY
bull WWWCADBURYCOUKbull WWWCHOCOLATEREVIEWCOUKbull WWW CADBURYS CHWEPPESCOMbull WWWWIKIPEDIAORGbull WWWCADBURYCOMbull WWWOPPAPERSCOM REFERENCES-bull PHILIP KOTLER
- BY RAGHAVENDRA MISHRA
- INTRODUCTION
- HISTORY
- MARKETING OBJECTIVES
- TARGET MARKET
- MARKET SEGMENTATION
- GEOGRAPHIC SEGMENTATION
- DEMOGRAPHIC SEGMENTATION
- MARKETING MIX
- PRODUCT
- PRODUCT INNOVATIONS
- PACKAGING
- PRICE
- VOLUME LED GROWTH STRATEGY
- HIRES AT KEARNEY TO CURB COSTS
- EARNINGS SENSITIVITY FACTORS
- PLACE
- DISTRIBUTION
- NATURE OF RETAIL OUTLET
- PROMOTION
- CHOCOLATE ADS SHIFT FOCUS FROM KIDS TO YOUTH
- CONCLUSION
- BIBLIOGRAPHY
-
CHOCOLATE ADS SHIFT FOCUS FROM KIDS TO YOUTH
bull INDIAN CHOCOLATE MARKET IS ALMOST TOTALLY DEPENDED ON PURCHASES OF KIDS
bull WHILE CADBURY IS TRYING TO SELL INDULGENCE TO ADULTS KIT KAT IS SELLING RITUALISTIC BREAK TO
bull TEENAGERS YOUNG ADULTS THIS IS REFLECTED IN THE CHANGING ADVERTISING PATTERNS ACROSS DIFFERENT
bull CHANNELS
CONCLUSION WHEN PRICED AT EVEN RS 2500KG WHILE THERE ARE PLACES IN
INDIA WHERE PEOPLE HAVE NEVER EVEN TASTED CHOCOLATES ONCEUNDERSTANDING THE CONSUMER DEMANDS AND MAINTAINING THE QUALITY WILL BE ESSENTIALCOMPANIES WILL HAVE TO KEEP THEMSELVES ABREAST WITH THE DEVELOPMENTS IN OTHER PARTS OF THE WORLDPRICING IS THE KEY FOR COMPANIES TO MAKE THEIR PRODUCT REACH CONSUMERSrsquo POCKETS RIGHTPRICING WILL MAKE OR BREAK THE PRODUCT SUCCESS ECONOMICAL DISTRIBUTION OF THE PRODUCTS WILLALSO BE EQUALLY IMPORTANTTHE COMPANIESrsquo STRATEGIES SHOULD FOCUS ON DRIVING SALES THROUGH A RIGHT PRODUCT MIXEFFICIENT MATERIALS PROCUREMENT REDUCED WASTAGES INCREASED FACTORY EFFICIENCIES AND IMPROVED SUPPLY CHAIN MANAGEMENTTHERErsquoS AN IMMENSE SCOPE FOR GROWTH OF CHOCOLATE INDUSTRY IN INDIA - GEOGRAPHICALLY AS WELLAS IN THE PRODUCT OFFERING
BIBLIOGRAPHY
bull WWWCADBURYCOUKbull WWWCHOCOLATEREVIEWCOUKbull WWW CADBURYS CHWEPPESCOMbull WWWWIKIPEDIAORGbull WWWCADBURYCOMbull WWWOPPAPERSCOM REFERENCES-bull PHILIP KOTLER
- BY RAGHAVENDRA MISHRA
- INTRODUCTION
- HISTORY
- MARKETING OBJECTIVES
- TARGET MARKET
- MARKET SEGMENTATION
- GEOGRAPHIC SEGMENTATION
- DEMOGRAPHIC SEGMENTATION
- MARKETING MIX
- PRODUCT
- PRODUCT INNOVATIONS
- PACKAGING
- PRICE
- VOLUME LED GROWTH STRATEGY
- HIRES AT KEARNEY TO CURB COSTS
- EARNINGS SENSITIVITY FACTORS
- PLACE
- DISTRIBUTION
- NATURE OF RETAIL OUTLET
- PROMOTION
- CHOCOLATE ADS SHIFT FOCUS FROM KIDS TO YOUTH
- CONCLUSION
- BIBLIOGRAPHY
-
CONCLUSION WHEN PRICED AT EVEN RS 2500KG WHILE THERE ARE PLACES IN
INDIA WHERE PEOPLE HAVE NEVER EVEN TASTED CHOCOLATES ONCEUNDERSTANDING THE CONSUMER DEMANDS AND MAINTAINING THE QUALITY WILL BE ESSENTIALCOMPANIES WILL HAVE TO KEEP THEMSELVES ABREAST WITH THE DEVELOPMENTS IN OTHER PARTS OF THE WORLDPRICING IS THE KEY FOR COMPANIES TO MAKE THEIR PRODUCT REACH CONSUMERSrsquo POCKETS RIGHTPRICING WILL MAKE OR BREAK THE PRODUCT SUCCESS ECONOMICAL DISTRIBUTION OF THE PRODUCTS WILLALSO BE EQUALLY IMPORTANTTHE COMPANIESrsquo STRATEGIES SHOULD FOCUS ON DRIVING SALES THROUGH A RIGHT PRODUCT MIXEFFICIENT MATERIALS PROCUREMENT REDUCED WASTAGES INCREASED FACTORY EFFICIENCIES AND IMPROVED SUPPLY CHAIN MANAGEMENTTHERErsquoS AN IMMENSE SCOPE FOR GROWTH OF CHOCOLATE INDUSTRY IN INDIA - GEOGRAPHICALLY AS WELLAS IN THE PRODUCT OFFERING
BIBLIOGRAPHY
bull WWWCADBURYCOUKbull WWWCHOCOLATEREVIEWCOUKbull WWW CADBURYS CHWEPPESCOMbull WWWWIKIPEDIAORGbull WWWCADBURYCOMbull WWWOPPAPERSCOM REFERENCES-bull PHILIP KOTLER
- BY RAGHAVENDRA MISHRA
- INTRODUCTION
- HISTORY
- MARKETING OBJECTIVES
- TARGET MARKET
- MARKET SEGMENTATION
- GEOGRAPHIC SEGMENTATION
- DEMOGRAPHIC SEGMENTATION
- MARKETING MIX
- PRODUCT
- PRODUCT INNOVATIONS
- PACKAGING
- PRICE
- VOLUME LED GROWTH STRATEGY
- HIRES AT KEARNEY TO CURB COSTS
- EARNINGS SENSITIVITY FACTORS
- PLACE
- DISTRIBUTION
- NATURE OF RETAIL OUTLET
- PROMOTION
- CHOCOLATE ADS SHIFT FOCUS FROM KIDS TO YOUTH
- CONCLUSION
- BIBLIOGRAPHY
-
BIBLIOGRAPHY
bull WWWCADBURYCOUKbull WWWCHOCOLATEREVIEWCOUKbull WWW CADBURYS CHWEPPESCOMbull WWWWIKIPEDIAORGbull WWWCADBURYCOMbull WWWOPPAPERSCOM REFERENCES-bull PHILIP KOTLER
- BY RAGHAVENDRA MISHRA
- INTRODUCTION
- HISTORY
- MARKETING OBJECTIVES
- TARGET MARKET
- MARKET SEGMENTATION
- GEOGRAPHIC SEGMENTATION
- DEMOGRAPHIC SEGMENTATION
- MARKETING MIX
- PRODUCT
- PRODUCT INNOVATIONS
- PACKAGING
- PRICE
- VOLUME LED GROWTH STRATEGY
- HIRES AT KEARNEY TO CURB COSTS
- EARNINGS SENSITIVITY FACTORS
- PLACE
- DISTRIBUTION
- NATURE OF RETAIL OUTLET
- PROMOTION
- CHOCOLATE ADS SHIFT FOCUS FROM KIDS TO YOUTH
- CONCLUSION
- BIBLIOGRAPHY
-