Cadbury: Business Analysis.
- 1. Cadbury BUSINESS ANALYSIS:- Analysis of today’s second best Confectionary brand, that is of course… Cadbury.
- 2. INTRODUCTION Cadbury was found by JOHN CADBURY and was founded at BIRMINGHAM, U.K. in 1824.It is a British multinational company owned by Mondelēz International and is the second largest confectionary brand of the world. The multinational was first nothing but a tea, coffee and beverage shop in its formation year in 1824.The Company, today developed itself as one of the most recognition able company ever. We all know what Cadbury means and what it represents.
- 3. A quick History. In 1824, John Cadbury opened a grocer’s shop at 93 Bull Street, Birmingham. Among other things, he sold cocoa and drinking chocolate, which he prepared himself. The Cadbury manufacturing business was basically born in 1831, when John Cadbury decided to start producing on a commercial scale and bought a four-storey warehouse in nearby Crooked Lane. By 1842 John Cadbury was selling no less than 16 varieties of drinking chocolate and 11 different cocoas! In 1847, the Cadbury brothers' booming business finally moved into a new, larger factory in Bridge Street in the center of Birmingham. The turning point for the Cadbury business was the introduction of a new processing technique, resulting in the 1866 launch of ‘ Cadbury Cocoa Essence', the UK's first unadulterated cocoa. In 1897, Cadbury added milk to their chocolate bar recipe to make the first milk chocolate bar.
- 4. And some more…………. In June, 1905 Cadbury launched the first ever DAIRY MILK, the name was suggested by a customer’s daughter and it got stuck. Then in 1920, the Dairy milk turned purple… Meanwhile, the discovery follows with BOURNVILLE COCOA launch in 1906, then BOURNVILLE CHOCOLATE in 1908, FRY’S TURKISH DELIGHT in 1914, MILK TRAY in 1915…and many more. The GLASS AND A HALF symbol was introduced in 1928 and is still in use. At the first, it was just on Dairy milk but in the recent year it is been the face of the company. In 1939, KING GEORGE VI and QUEEN ELIZABETH had their visit to BOURNVILLE. On March 1st 1939, 10000 lined the way to welcome the King and the Queen. In 1969, the company merged with SCHWEPPES. The merger happened after the new Cadbury Chairman, Adrian Cadbury, was approached by his opposite number, Lord Watkinson. It was all to have a concentration of effort behind major brands, the ability to give better value to the customer. But soon demerged as well
- 5. Facts… Cadbury was the first chocolatier to create milk chocolate. In 1857, Daniel Peter, a Swiss Manufacturer, added milk to his recipe to create the world’s first milk chocolate. However, the first Cadbury milk chocolate bar didn’t hit shelves until 1897. Cadbury’s Dairy Milk is without doubt one of the most successful products from the brand. It’s so successful that 350 million bars are sold every year – that’s almost a million per day! You don’t have to feel guilty when biting into a delicious bar of Cadbury’s chocolate, as they became fair trade certified back in 2008, as they increased the amount of fair trade cocoa sourced from West Africa. Cadbury were the official cocoa and chocolate makers for Queen Victoria, as John Cadbury and his brother were given the first Royal Warrant by Her Majesty in 1854. During the Second World War, Cadbury was forced to remove Dairy Milk from shelves, as the government banned manufacturers from using fresh milk. Instead, Cadbury produced Ration chocolate that was made with dried skimmed milk powder.
- 6. Their Target audience… The Target Market:- The company simply believes that Marketing strategies and ways should be meant to satisfy the customers and match product availability targeting the MASS MARKET. The company; in reference to market, focuses on its certain objectives they think is essential to deal with. They are:- 1. To make lots of chocolates 2. To improve the quality of their chocolate 3. To survive in the market 4. Have loads of stores worldwide.
- 7. The multinational focuses on the needs of customers and that it why it keeps on making different needs according to the people and the place and keeps on surviving the market. The company, as usual is successful in maintaining the quality of products to its customers and also is amazingly successful in terms of economy. CADBURY’s Market is nothing but it targets all the people and has its lovers worldwide. From children to adults, all the way to elderly, everyone love to have it. Inspite only of eating, it is also used as a gift to loved and respected one’s, sweets on occasions etc.. They don’t only sell chocolates but has wafers, beverages, cakes, energy drinks, bags, boxes and also tin cans filled with its worldwide loved taste…
- 8. The Marketing Mix- PRODUCT The company possesses an attractive brand name with a variety of slogans used in different parts of the world. For instance:- In India, people love to have Cadbury, not only because of the BRAND LOYALTY but also because of the BRAND IMAGE that Cadbury developed on its own. People like it on occasions, most probably because of the attractive product packaging with different slogan accordingly; the packaging also includes the ingredients with its nutrition information clearly mentioned .It comes in a 3 layered packaging with the actual information-giving pack , followed by a paper packaging and a golden covering; great way to protect a product. As far as the quality is concerned, the chocolate is made from the best cocoa in Ghana and then distributed to the entire world and also, after the chocolates are produced they are made to undergo several quality checks ; the reason why it has a great quality. The product has only one extension strategy, that is none other than making more and more products. Their product is basically made from REAL CHOCOLATE. There is a GLASS and HALF FULL of CREAM dairy milk in every 200 gram of a Cadbury chocolate.
- 10. One of the most important part of the Product is its life cycle. THE PRODUCT LIFE CYCLE shows how the products are occupying the market. The product life cycle proves why Cadbury is the best known confectionary company with its operators in more than 200 countries; almost the whole world with its 7 continents of business. The graph shows that the company is still in its Maturity where they have their highest sales!!!!!!! They also have intense competition. No SATURATION and no DECLINE yet.
- 11. The price charged for a chocolate can easily tell whether it would be purchased by the customers or not. Cadbury said that they have been conducting researches asking people how much they would be willing to pay for a chocolate on any occasion, birthdays, or moreover for taste respectively. This means the price also depends on the DEMANDS and SUPPLY of the product according to the Customers. Cadbury uses different Pricing Strategies on different times of the year. For example:- the company is well aware of India being a ‘Land of Festivals’. They use their PRICE SKIMMING strategy when they have to introduce a new product in the market according to the occasions. They set high prices for it when people (with brand loyalty) buy the products in bulk; for their loved ones. They give you offers like ‘buy one get one free-limited till this season of Diwali’.
- 12. This was how the Price and Promotion gets mixed; coming to Promotion- The company sponsors the very famous reality quiz show i.e. KBC-‘KAUN BANEGA CAROREPATI’; an extremely famous Indian series hosted by the legendry BIG ‘B’ AMITABH BACHCHAN. The show earns amazingly well with all the fans of the host along with that of Cadbury. This way they make a really good public relation with the customers; a way of Promotion. This proves that the company usually is successful in persuading people to buy the new range of chocolates on new and different times of the year with new and different technique of sales ; either with new slogans or attractive pricing in their advertisements .
- 14. This is how Cadbury developed public relations with people as a way of promotion. They ask you to buy their product and get your own pictured mug. Promotion offers either to clear the stock or to increase their sale.
- 15. One of the most common way of promotion , asking people to buy their product and try their luck. The company seems extremely good in PROMOTIONAL offers as it follows the way everyone love, like they ask you to express your love on Father’s day or Valentine’s day or on Friend ship’s day by writing it on their special Dairy Milk chocolates.
- 16. Cadbury follows the following channel of distribution :- Producers • The Company produces its products in Bermingham in Bourneville. • Now the Cadbury Chocolates are sold directly to the Wholesalers. Wholesalers • The Wholesalers take the stock and store it; here the consumers can also buy the product in bulk. • Cadbury has over 2100 retailers in over 200 countries Retailers • The Retailers can also be called the shopkeepers from whom we buy the products from.They have a minimun supply of it and can buy more from the wholesalers. • The multinational has over 450000 retailers to sell its product to the consumers. The Retailers sell their product to the Consumers or the Customers that is US!!!Cadbury has a base of over 65 million consumers.
- 18. Its Research… The multinational actually conducts both; Primary and Secondary Research. Here is a detailed explanation:- PRIMARY RESEARCH:-This is the way in which a company does its own confidential work in order to be different; in this method ,as for Cadbury- they cannot use Secondary data because its competitors , like Hershey’s and Mars may be using the same. Well, this all means that the company for some certain products, spent its own money and time to have its own private information so as to keep going in the market by knowing what the consumers actually want and need. SECONDARY RESEARCH:-The company uses secondary data often in fields which usually are most common; like chocolate with peanuts- to know that do people like it or notAs far as the Secondary Research of Cadbury is concerned it cannot usually use this method because of thinking LATERALLY and not MEE-TOO-APPROACH. Cadbury may have conducted Secondary Research for common chocolate products; but for a wide range of its worldwide products it prefers its own confidential data that is Primary data ; most suitable for CADBURY…
- 19. Competitors The company heading Confectionary is actually not heading the field. Within chocolates Cadbury ranks 4th in the world with its competitors ranking:- 1st Nestle 2nd M ‘n’ M mars ( now popular as Master Foods ) 3rd Hershey. Cadbury has a competitive advantage that it is a British company and so has a large business in Canada and Europe as well as Australia. It ranks second there with competitor Wrigley’s on rank 1… It may have many other competitors, or say juniors in Confectionary but is marvelously successful in beating them up and inscripting its name as WINNER!!! The company just needs to take advantages of the places where Cadbury is not highly liked; they just need to carry on their superlative sense of Marketing, analyze the market and may also have to carry out research. This may be a risk, but again this is what business all about.
- 20. Product or Market Orientated??? We believe of Cadbury being the both; it is , on one hand, Product orientated because it keeps on making products that are luckily liked by consumers because of its amazing quality. On the other hand we as well believe of it being Market Orientated because of the research it conducts that helps it to match the customers need and wishes and top the field.
- 21. The strategy it follows… Lateral thinking or Mee-too-approach ??? According to our opinion, Cadbury is truly an OUT OF BOX thinker… We base our opinion on facts as the first ever milk chocolate bar was made by Cadbury. As far as other products are concerned, Cadbury they are ranking one by coming up with new ideas like the ROSES, EASTER EGG and also the CELEBERATIONS.
- 22. Conclusion… They can also risk entering the market of other countries like Asia Pacific so as to increase their market globally. Doing so would surely help the company to be the BEST SELLER OF 2015; the position the earned in 2014. But still, till the date the company is successful in maintaining a good relationship with its competitors along with a good position in the market. The Cadbury business, most probably to be believed as a Family Business was first discovered by JOHN CADBURY and then inherited by RICHARD and GEORGE CADBURY; is one of the most living company with its proud owners today. It still has a long way to go ; not just a fight with its competitors but fulfilling the demands of its customers and supplying them with what satisfies them the most customers are expecting more from the company hoping many more enthralling discoveries to be made .
- 23. By:- Cherlyn Dhanjal… Its not just a chocolate; its Cadbury…
Editor's Notes
- #3: This is really fabulous…