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Case Study of Cadbury
Log In Sign Up. Nsaadah Ibrahim. Inyear-old John Cadbury opened his first shop at 93 Bull Street, next to his father's drapery and silk business in the then fashionable part of Birmingham.
As a young Quaker, he was against alcohol and so instead sold tea and coffee, he also sold hops, mustard and a new side-line which is cocoa and drinking chocolate that he prepared using a mortar and pestle. Cocoa and drinking chocolate had been introduced into England in the s but remained a luxury enjoyed by the elite of English society. Customers at John Cadbury's shop were amongst the most prosperous Birmingham families, the only ones who could afford the delicacy.
Here he began producing cocoa and chocolate. Experimenting with his mortar and pestle, John Cadbury produced a range of cocoa and chocolate drinks, the latter with added sugar.
The products were sold in blocks which customers need to scrape a little off into a cup or saucepan and added hot milk or water. These early cocoa and drinking chocolates were balanced with potato starch and sago flour to counter the high cocoa butter content, while other ingredients were added to give healthy properties.
According of figure 1. The firm began renting a factory in Bridge Street in Then, the brothers opened an office in London and received a Royal Warrant as manufacturers of chocolate and cocoa to Queen Victoria. John Cadbury retired due to failing health in and the business was taken over by his sons Richard and George.
They were aged 25 and Inthe brothers launched a new product, Cadbury Cocoa Essence. John Cadbury devoted the rest of his life to civic and social work in Birmingham until his death in Although they had worked in their father's business for some years, the prospects for Richard, 25, and George, 21, were daunting. Their first five years were a period of unremitting toil with few customers, long hours and very frugal living.
Both seriously considered taking up other vocations where Richard as a surveyor in England and George as a tea planter in India. George was focused on manufacturing, and Richard with sales, but in the early days both brothers went out and promoted their goods. Due to their dedication, sheer hard work and improvements in the quality of Cadbury cocoa products, the business survived and prospered.
By the s, Cadbury had outgrown the Birmingham factory and began looking for land outside the city to build its new premises. Keen to move away from the dirty conditions of the city, the brothers set about building their "factory in a garden" to provide a clean and healthy working environment for employees.Skills Space enables college students to learn about Ghana, how cocoa is definitely grown, the lives of cocoa farmers, the interdependence between Ghana and candy manufacturers, and discover more about sustainable farming.
This ground breaking progress will result in the tripling of sales of cocoa beneath Fairtrade terms for cacao farmers in Ghana, the two increasing Fairtrade cocoa product sales for existing certified farming groups, and also opening up new opportunities just for thousands more farmers to benefit from the Fairtrade system.
Just for press details, please get in touch with Cadbury Press Office upon Notes About Cadbury plc Cadbury plc is a leading global confectionery company with an outstanding profile of candy, gum and candy brands.
Cadbury also has the biggest and most commonly spread rising markets business of any kind of confectionery business. Cadbury is definitely the official deal with provider on the London Olympic Games. For more information check out www. Business in the Community Business in the Community motivates, engages, facilitates and complications companies upon responsible business, working through four areas: Marketplace, Office, Environment and Community.
Using more than companies in membership, Business in the Community characterize 1 in 5 on the UK exclusive sector labor force and call together, get together, gather, assemble a network of global companions. Our participants commit to continuously improve the method they handle with a particular focus on the necessity to manage solutions wisely — be that individuals or our planet. It began its operation in India in simply by importing chocolate and distributing in the American indian market.
Cadbury Indiais an organization of food products which generates chocolates, drinks, confectionery, candies and appetizers. The top top priority shows to capability, development and performance. The attention of organizational procedure is definitely delivered upon premium global and regional brands. The speculation to widen new brands and achieving ownership just for recognized items are on the vein.
The continuous concentrate on cost and efficiency while using divergent curiosity to reconfigure the flow and making is exactly disclosed in their surgical procedures.
The organizational objective shows their performance on ensure providedto traders and clients. It has strong them to a pure-play confectionary business. The neighborhood and global legal and cultural specifications of Cadbury are disclosed in their fundamental business rules and code of integrity conduct.
They can be more significant on their demographic locations. Their very own leadership style is ruthless which targets competitive domination over rivals and there are more passionate in the best.The chocolate market in India is dominated by two multinational companies — Cadbury and Nestle.
The national companies — Amul and Campco are other candidates in this race. All these are leading national players. The multinational companies like the Cadbury, Nestle and Perfetti are the new entrants in the sugar confectionery market.
Management paradise There are several others which have a minor share in these two segments. According to statistics, the chocolate consumption in India is extremely low. If per capita consumption is considered, it comes to only gms in the urban areas. This amount is very low compared to the developed countries where the per capita consumption is more than kg. Observing this fact it would not be appropriate to consider the rural areas of India as it will be extremely low.
This low consumption is owing to the notion behind consuming chocolates. Indians eat chocolates as indulgence and not as snack food. The major target population is the children. But as the century advanced the market stagnated.
This was the time when Cadbury launched its product- Dairy Milk as an anytime product rather than an occasional luxury. All the advertisements of Dairy Milk paid a full attention to adults and not children. And this proved to be the major breakthrough for Cadbury as it tried to break the conventional ideas of the Indians about chocolate. He ordered an enquiry and went directly to the media with a statement. Over the following 3-week period, resultant adverse media coverage touched close to clips in print and on TV news channels.
Sales volumes came down drastically in the first 10 weeks, which was the festival season; retailer stocking and display dropped, employee morale — especially that of the sales team — was shaken. The challenge was to restore confidence in the key stakeholders consumers, trade and employees, particularly the sales team and build back credibility for the corporate brand through the same channels the media that had questioned it.
In defense, Cadbury issued a statement that the infestation was not possible at the manufacturing stage and poor storage at the retailers was the most likely cause of the reported case of worms. That was followed by allegations and counter-allegations between Cadbury and FDA. Consumers seemed to ignore their chocolate cravings. A focused and intense communications program was implemented over the next six months to rebuild credibility and restore confidence among the key stakeholders.
The results:. The last two helped to restore faith in the corporate brand among the trade and employees. The incident came close on the heels of a cola controversy where a scientific laboratory declared colas unsafe due to high levels of pesticide. The jury was still out on that issue and so this incident acquired political overtones with parties decrying Cadbury as an irresponsible MNC.
The immediate objective was to get the following key messages across:. The challenge was to restore confidence in the key stakeholders trade and employees, particularly salespersons and build back credibility for the corporate brand through the same channels the media that questioned it.
It was decided from the start to address the issue head-on and take whatever steps were necessary to restore confidence. Having historically maintained a low profile with the media and let its brands and its performance speak for it, the company began to cultivate relationships with the media and turn it into an ally and a credible, independent endorser to rebuild stakeholder confidence.
The day the crisis broke, the agency set up a media desk to ensure that no media query went unanswered. At a second media briefing about two weeks after the first incident was reported, Cadbury announced significant steps to restore consumer confidence called Project Vishwas Trustthis entailed:.
An Editorial Outreach program with 31 media editors across 5 most affected cities was orchestrated by the agency to get senior Cadbury spokespeople to share their version of events in one-on-one meetings. It presented facts about Cadbury manufacturing and storage and highlighted corrective steps being taken by the company.
This was a public statement of the corporate stand on the issue. The trade was supported with posters and leaflets to help them share Cadbury point-of-view with their customers.While analyzing the market segmentation of CDM assumptions are made for some of the segmentation variables.
Note : Wherever the assumptions are taken they are mentioned in the essay. Many of the products failed because customers are not aware of them,or they costs too much for their target consumers,or they are wrongly positioned in the markets.
Thus,it is required that companies should focus on marketing of their products and utilize marketing concepts like market segmentation,target marketing,positioning and others to understand customers demand and preferences,market segments,target markets,consumers buying behaviors and their core competences to cope up with competitors in target markets.
Now in order to understand the practical importance of these marketing concepts in real world scenario lets critically analyze the market situation and positioning of Cadbury Dairy Milk CDM chocolate which is a product of Cadbury. This essay begins with a brief introduction of CDM and then deals with its Market Situation and Positioning analysis,and finally ends with a conclusion.
In Market Situation analysis,current market of CDM is analysed followed by its market segmentation and target market analysis. In ,CDM first entered Indian market and currently dominating the market not only because its the most delicious and best tasting chocolate but also because of its affordable price and memorable communication Cadbury India, The chocolate market in India is estimated around INR 2, crore with a growth rate of percent per annum Business Standard, CDM is also considered as the flagship brand of Cadbury with average sales of around 1 million bars per day Cadbury India, The growth drivers of chocolate industry in India are increasing income level, affordable price of chocolates, and shift from traditional sweets to chocolates.
CDM as being a market player sees lots of opportunities and growth potential in this field,however it has threats of competition from international firms. Further on large scale, chocolate market is facing many challenges like increase in raw material prices,entry barriers because of duopolistic market and low scale government assistance Business Standard, Now lets analyze the market segmentation of CDM using four major segmentation variables described by Kotler et al : Geographic:As CDM is focusing whole India Cadbury India, ,lets assume that on the basis of density India can be divided into 3 sub segments — rural,urban and suburban.
Psychographic:In regard to CDM,it can be assumed that personality traits may consists of people who wants to enjoy their life and life styles may include persons who are willing to try alternate products in place of conventional food items. Segment Formation For market segment formation, segmentation variables are combined in best possible way to divide whole market into segments.
The model segments developed below are not the exact market segments of CDM,these are developed to analyze the market segmentation of CDM in a better way and must be considered as an example or reference.
Page 5 Fig1 According to Kotler et al for effective market segmentation market segments formed must be measurable,substantial,accessible,differentiable,and actionable. Second,model segments are substantial as all the formed segments are large and profitable enough to serve. Third,model segments are conceptually distinguishable as for rural area social classes considered are middle and lower upper class assuming that considering upper class for rural areas is not feasible.
Fourth,model segments are accessible as they can be effectively reached and served.Taking the millennium superstar Amitabh Bachchan, as an endorser, he fulfills all the FRED objectives, namely, Familiarity target market is aware of him, finds him friendly, likeable, dependable and trustworthy ; Relevance which says that there should be a link between the endorser and the product as well as between the endorser and the audience ; Esteem masses see him as a credible name-face-voice ; Differentiation he is seen to be one among the masses, and yet he towers above them.
He is different. By launching a massive ad campaign they were able to tackle the dissonance of customers head on.
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Related titles. Carousel Previous Carousel Next. Crush It! Jump to Page. Search inside document. Der Chao Chen. Aeman Waghoo.To browse Academia. Skip to main content. Log In Sign Up. Arnab Chakravorty. I would also like to convey my thanks to Mr. I would also like to thanks my friends who helped me in all possible ways. Moreover, the company should always be ready to make necessary changes according to the requirements in order to attract more customers so as to maintain a substantial growth in the market.
I have tried to put my maximum effort to get the accurate statistical data. If there is any error or any mistake in collecting the data, please correct it in the best way as I am still learning.
We create brands people love - brands like Cadbury, Trident and Halls. Our heritage starts back in when John Cadbury opened a shop in Birmingham selling cocoa and chocolate. Since then we have expanded our business throughout the world by a programme of organic and acquisition led growth.
Throughout changing times, our constant values have inspired us to be pioneers in business and in corporate responsibility. They help ensure we are proud of our company and are critical to our core purpose of creating brands people love. Performance We are passionate about winning.
We compete in a tough but fair way. We are ambitious, hardworking and make the most of our abilities. We are prepared to take risks and act with speed. Quality We put quality and safety at the heart of all of our activities - our products, our people, our partnerships and our performance. Respect We genuinely care for our business and our colleagues. We listen, understand and respond. We are open, friendly and welcoming.
We embrace new ideas and diverse customs and cultures. Integrity We always strive to do the right thing. Honesty, openness and being straightforward characterise the way we do business. We have clear principles and do what we say we will do. Responsibility We take accountability for our social, economic and environmental impact.
In this way we aim to make our business, our partners and our communities better for the future. Our Business Principles are our code of conduct and also take account of global and local cultural and legal standards. They confirm our commitment to the highest standards of ethics and business conduct. Core purpose and vision section: Core purpose: Our core purpose is creating brands people love.
Cadbury Marketing Case Study
The core purpose captures the spirit of what we are trying to achieve as a business. We employ around 50, people and have direct operations in over 60 countries, selling our products in almost every country around the world. In India, Cadbury began its operations in by importing chocolates. The corporate office is in Mumbai. Our core purpose "creating brands people love" captures the spirit of what we are trying to achieve as a business.
We collaborate and work as teams to convert products into brands.Dates back to the early part of the 19th century, when John Cadbury opened a shop in the centre of the city, trading as a coffee and tea dealer. Soon a new sideline was introduced - cocoa and drinking chocolate, which he prepared himself using a mortar and pestle. When Cadbury Dairy Milk chocolate was first introduced in the early s it made an immediate impact quickly becoming the market leader.
The success story has continued. As an international brand Cadbury Dairy Milk carries the same distinctive image all over the world. Wherever you buy a bar of Cadbury Dairy Milk the pack design will be exactly the same, only the language will be different. The famous slogan "glass and a half of full cream milk in every half pound" with the picture of milk pouring into the chocolate bar, is one of the all-time greats of British advertising.
Cadbury in India began its operations as a trading concern in Cadbury in the Indian sub continent defined the first taste of chocolate. The company today employs nearly people across India. Come Diwali and the gifting options for consumers just got better with the launch of Cadbury Celebrations Rich Dry Fruit Collection a range of premium chocolate gift boxes. Cadbury's Creative Launch A new after dinner' segment CDM Desserts offer the perfect rounding off taste, after meal that adds special Meetha moments to the family.
CDM Desserts add delight to the after-meal moments, especially with the consumers whose current choice of sweets range from home made delicacies to fruits to meethai.
Fernandes discovered that the chocolate Batch No 28F3I had worms in it. Marve then contacted the FDA and gave them the sample. Bharat Puri, managing director of Cadbury India will never forget the batch of Dairy Milk chocolates numbered28F manufactured last year at the company's plant in Thane, near Mumbai. That was the worm-infested batch that triggered a crisis for the company that had always prided itself on its squeaky clean image. The Food and Drug Administration had then seized the company's stocks and the Cadbury India management had explained it was bad storage practices by retailers and distributors that had led to the worms.
Cadbury India's sales fell following the discovery. And even the government got into the act with the central health ministry asking for a report on the controversy. Indian cine superstar Amitabh Bachchan has signed on to become the brand ambassador of the chocolate major for two years.
Amitabh Bachhan played a pivotal role in all communication relating to Cadbury's products and brands, be it in print, on television or the great outdoors, the company's managing director Bharat Puri has been quoted as saying in media reports. With the help of its Public Relations Dept. One of the ads showed Bachhan visiting a Cadbury plant, inspecting the systems and processes and finally consuming a bar of chocolate to be convinced that there's nothing wrong with the brand.
Public relations include ongoing activities to ensure the company has a strong public image. Public relations activities include helping the public to understand the company and its products. Often, public relations are conducted through the media that is, newspapers, television, magazines, etc.
It is handled by Mondelez India earlier Cadbury India. According to Euro monitor International, Cadbury accounted for Dairy Milk is the flagship brand of Cadbury.
Some of the top competitors of Cadbury are:. Along with competing against Mars for the chocolate market share, Cadbury now competes against the giant for share in the global gum market thanks to Mars' acquisition of Wrigley's in The case of Hershey's and Cadbury being rivals took a big turn due to a licensing agreement set back in The company's chocolate market is one of its smallest, but it was good enough for a 5.
Nestle has grown through many acquisitions that have given it control of brands that include Kit Kat, Smarties and Gerber baby food. Nestle's confectionery segment was its sixth-largest in Similar to its deal with Cadbury, Hershey's also licenses several brands from Nestle for U.