Cadbury India Marketing Plan

2. Agenda
• Executive Summary
• Global & Indian Chocolate market
• Cadbury India
• S.W.O.T Analysis
• Product Life cycle & BCG Matrix
• Marketing Strategy
• Marketing Plan
• Financials
• Conclusion
• Video

3. Executive Summary
• The global chocolate market is estimated to be around $106 billion. (Retail
Market Value).
• 100 tons – of chocolate are consumed every second.
• Currently, the Indian chocolate market is worth around Rs 5,562 crore.
• India chocolate industry will be growing at the CAGR 23% by volume
between the years 2013-2018 and reach at 3,41,609 Tons.
Drivers Challenges
- Increase in disposable income - Rise in Cocoa prices
- Attractive pricing - Lack of government initiative
- Rising income levels - High entry barriers
- Chocolate Gifting - Price-sensitive consumer
- Opportunity to expand - High excise & Import duty
• Experts feel that premium chocolates are replacing traditional Indian
“mithai” and thus they are no longer a category just for a category just for
kids.

4. Global Chocolate Market
Global market is still dominated
by Western Europe and North
America, emerging markets
clearly represent the future. The
BRIC countries (Brazil, Russia,
India and China) accounted for
55% of global confectionery retail
growth in 2011.
Right now, Indians eat
only 165 grams (less
than 6 ounces) of
chocolate a year. The
Chinese eat only 99
grams (3.5 ounces).

5. Indian Chocolate Market
• India is the world's fastest growing market for chocolates.
• Registering 15% annual growth between 2008 and 2012.
• The Indian chocolate market is worth around Rs 5,562 crore.
• 400 Kgs of chocolate consumption in India per minutes.
• Low priced unit packs, increased distribution reach and new product
launches can be said to have fuelled this growth.
India chocolate
industry will be
growing at the CAGR
23% by volume
between the years
2013-2018 and reach
at 3,41,609 Tons.

6. History of Cadbury
1824
John Cadbury began
selling tea, coffee, and
drinking chocolate
1824
1897
1897
The first Cadbury solid
chocolate bar is sold.
1905
1905
Dairy Milk brand appears
for the first time
1948
1948
Cadbury began its operations in
India by importing Chocolates
1969 1993
2009 2013
1969
Cadbury buys drink maker Schweppes
to become Cadbury-Schweppes
2009
Acquisition by Kraft
Foods: £11.5 billion
(US$18.9 billion) indicative
takeover bid for Cadbury
2012
The confectionery
business of Kraft
became Mondelēz
International, of which
Cadbury is a subsidiary.
2012-13
Cadbury India profit
slows to six year low
PAT growth 2.2% under
the new parent
Mondelez International.
2008
Cadbury Schweppes demerger
took with the drinks business
becoming Dr. Pepper Snapple
Group Inc.
1993
Cadbury opened the world's largest and
most advanced chilled warehouse in
Minworth, Birmingham
2012
6
2008

7. Cadbury India
• Cadbury India — a subsidiary of Mondelez International, the $32 billion global
snacking major formed in October last year.
• Cadbury India enjoys a value market share of over 67 percent in the chocolate
category and our brand Cadbury Dairy Milk (CDM) is considered the "gold
standard" for chocolates in India.
• Cadbury in India operated in five categories: Chocolates, Beverages, Biscuits,
Candy & Gum.
• Snapshot of some of the most popular Brand of Cadbury:-

8. Market Share in Different Segments

9. Cadbury Dairy Milk(CDM)
• Introduced in 1905, but it came to India in 1948.
• Cadbury Dairy Milk has captured the heart of Indian consumers for over
six decades.
• The name Dairy Milk because it has higher proportion of milk than any
other chocolate bars.
• Dairy milk alone holds 30% value share of the Indian chocolate market.
1905 1951 1993 1999
2013

10. S.W.O.T Analysis
Strength
 Topmost chocolate provider in
the world
 Brand loyalty
 Low cost of production due to
economic of scale
 Strong distribution network.
Weaknesses
 Lack of market penetration
 Relatively high Price Brand
 Limited variety of products
 Poor technology in India
compared to current
international technologies
Opportunities
 India CAGR 2013-18 is 23%
 Population 1.27 Billion
 Bring efficiency in logistics and
distribution with the help of
technology.
 Introduction of foreign products
in India.
Threats
 Faced a worm scandal
 In confectionery segment
Threats from company like Amul
& Nestle.
 Government Policies
 Rise in raw materials cost cocoa
beans, dairy products & Sugar.

11. CDM Product Life Cycle
1905
2010
Life Cycle
Extension

12. BCG Matrix Cadbury Chocolate
Business
GrowthRate
High
High
Low
Low
Relative Position(Market Share)
High Low
Bournvita
Dairy Milk
Bournville Toblerone
Gems
Éclairs
5 StarPerk
Gum

13. Marketing Plan
• India has more than 50% of its population below the age of 25 and more
than 65% below the age of 35.
• Age Structure:- 0-18 years : 38 % (0.48 billion) Group-I
19-35 years: 27 % (0.34 billion) Group-II
36-65 years: 30 % ( 0.38 billion) Group-III
66 above : 5.3% ( 0.06 billion) Group-IV
• We have made separate plan for separate age groups.
• We will be targeting the first three groups covering 94.7 % of population.
• Our strategy is purely penetration into Indian chocolate market
• We would like to target the with the same products. No new product
• In our marketing plan we have suggested collaboration with many
institutions & organization's.

14. Marketing Plan for Age group 0 to 18
• Total Population : 0.483 billion
• Studying in school : 0.241 billion
• We have traditions of distributing sweets to all school students after Flag
hosting on 15th August (Independence day) & 26th January (Republic day).
• We propose, Cadbury to tie up with bigger chain of school for distribution
of Dairy Milk Chocolate on 15th Aug & 26th Jan.
• In future this can be extended to Birthday’s & Children's day.
• CDM has more nutritional value for children's than any other sweet.

15. Marketing Plan for Age group 19 to 35
• Total Population : 0.343 billion
• Best way to catch this population on internet (on Facebook).
• Most people wishes birthday to their friends & family member on
Facebook.
• We propose, Cadbury to tie up with Facebook, So one week before
birthday Facebook will give the reminder.
• “Do you want to send chocolates on your friends birthday”
• All the Cadbury chocolates options will appear.
• Select the Chocolate, Gift wrapping & Birthday message for your friend &
place the order online. The order will be received in district distributor
system, Same will be packed & dispatched by Courier at the delivery
address.

16. Birthday With
Chocolates
Birthday With
Chocolates

17. Marketing Plan for Age group 36 to 65
• Total Population : 0.381 billion
• This is majorly working population of India.
• This population can be targeted on Birthday at office, for Gifting, on
marriages (with Marriage invitation card & after marriage), on festivals,
special occasions & many more occasions.

18. Sales Projections

19. Conclusion
• Indian Chocolate Industry is a unique mix with
extreme consumption patterns, attitudes, beliefs,
income level and spending
• Understanding the consumer demands and
maintaining the quality will be essential
• So we think that bringing online sales(through
facebook) & increasing the institutional sales(in
unique way) would bring prosperity and increase
the sales of Cadbury’s as a whole again resulting
in the goodwill of the company.

21. Products & Segments CDM
Segments Product Pack size Rate
Value Dairy Milk 9.2 Gram Rs. 5
Value Dairy Milk Shots 18.6 Gram Rs. 10
Value Dairy Milk 17 Gram Rs. 10
Value Dairy Milk 38 Gram Rs. 22
Mid-Tier Dairy Milk Crackle 42 Gram Rs. 35
Mid-Tier Dairy Milk Roast Almond 42 Gram Rs. 35
Mid-Tier Dairy Milk Fruit & Nut 42 Gram Rs. 35
Premium Dairy Milk Silk 60 Gram Rs. 55
Premium Dairy Milk Silk Fruit & Nut 60 Gram Rs. 55
Premium Dairy Milk Orange Peel 60 Gram Rs. 55
Super Premium Dairy Milk Silk 145 Gram Rs. 125
Super Premium Dairy Milk Silk Fruit & Nut 145 Gram Rs. 125
Super Premium Dairy Milk Orange Peel 145 Gram Rs. 125