1. INDUSTRY & COMPETITIVE ANALYSIS CADBURY INDIA (Part – I)
Presented By
Mohd. Yasser Arafat (55)
Division-A

2. The sweetest story ever told… or heard

3. Vision

4. Purpose and Values

5. Objective Strategy Process Grow shareholder value…over the long term.
Create robust and sustainable regional positions in our core categories of confectionery and beverages through organic growth, acquisition and disposal.
Process
Achieve this by managing by value.

6. Chronology of a success story
Mayans discover cocoa.
Manufacture of drinking chocolate and cocoa began in Birmingham.
John and Benjamin Cadbury launch Cocoa Essence.
Cadbury became one of the first firms to open dining rooms with kitchens and with food on sale.
Became a private limited company “Cadbury Brothers Ltd”.

7. Chronology Contd… 1905 - Dairy Milk was launched.
Milk Tray introduced.
Bournvita was launched.
Cadbury factory set up in India.
Cadbury merged with Schweppes.
Cadbury opened the world's largest and most advanced chilled warehouse in Birmingham.

8. Multi-Category Presence
Key Markets
Chocolate
Sugar
Gum UK
France
Spain
Europe Africa
Poland
S.Africa US
Canada
Americas
Mexico
Brazil
Australia
Japan
Asia Pac
Thailand

9. The Indian Chapter Cadbury began operations in India in 1947.
Challenge in India
Get people accustomed to chocolates- primarily seen as a western taste.
Do so by reaching out to the masses in a land where mindsets and preferences are as diverse as the country itself

10. What makes a successful brand?
Carves out a distinct role in the consumer’s life
Constantly delights the consumer year after year
Consistent value proposition
Local expressions of universal needs
Elicit a ‘WOW’ at any given time

11. Strategy of Cadbury
Increasing consumer base by focusing on affordability and availability.
Small affordable priced packs launched.
Advertising aimed at changing consumer perception and eating habits.
Commitment to stakeholders in line with Corporate Governance policy.

12. Attractive and Resilient Returns
Business Model
Attractive and growing markets
Expandable consumption
Strong positions
Impulse categories less exposed to retail consolidation
High barriers to entry
Attractive and Resilient Returns

13. Strategic Changes Organisational
Comprehensive structural and leadership change.
Consolidated operational structure.
Increased scale of each regional operating unit.
Separated supply chain management from commercial management.

14. Goals and Priorities Deliver superior shareowner performance.
Profitably and significantly increase global confectionery share.
Profitably secure and grow regional beverages share.
Ensure our capabilities are best in class.
Reinforce reputation with employees and society.
Contd…

15. Goals and Priorities Contd…
Up to a third of benefits reinvested in top line growth.
Operating margin growth of 50 – 75 basis points pa.
8. Net sales value growth of 3% - 5% pa.
9. Targeting a 10% reduction in direct and indirect costs
20% reduction in factory base
10% reduction in headcount
10. Savings across: supply chain; commercial; back office
11. Operational gearing from volume growth.

16. Strategic Framework

17. Distribution Strategy
CADBURYS INDIA LIMITED
CNF
RET
Each in district
Distributors
Retailers

18. BCG MATRIX ??? Relative Market Share Low High High Bournvita
Dairy Milk
Bournville Candy
Market Growth
5 Star
Perk
Delight
Low
Gems
Eclairs
Circle Size = proportion of total revenue business contributes to corp.

19. Ansoff Model EXISTING Product NEW EXISTING Product development
(Bournville,Chockis)
Market penetration
(Dairy Milk, Perk,
Bournvita)
Market
Market development
(Candy)
Diversification
(Gems,Eclairs)
NEW

20. Rating Scale: 1 = Weak ; 10 = Strong
GE McKinsey Matrix
Business Strength
Relative Market Share
Reputation/ Image
Bargaining Leverage
Ability to Match Quality/Service
Relative Costs
Profit Margins
Industry
Attractiveness
Market Size
Growth Rate
Profit Margin
Intensity of Competition
Seasonality
Cyclicality
Resource Requirements
Social Impact
Regulation
Environment
Opportunities & Threats
10.0
Strong
6.7
Average
3.3
Weak
1.0
Bournville
Dairy Milk,
Bournvita,
Perk
High
6.7
Gems, Eclairs
Medium
3.3
5 Star
Low
1.0
Rating Scale: 1 = Weak ; 10 = Strong

21. Porter’s Five Forces Model
INDUSTRY
COMPETITORS
Rivalry Among
Existing Firms
(Nestle,Amul)
POTENTIAL ENTRANTS
(Regional Players)
SUPPLIERS
(Cocoa farmers &
others)
BUYERS
(Consumers &
Customers)
SUBSTITUTES
(Working in all
Substitute areas)
Threat of new entrants
Bargaining power of buyers
Threat of substitute products or services
Bargaining power of suppliers

22. PEST Forces Macro Forces Micro Forces Political (Stability) Social
(Muh Meetha)
Technological
(introduction of
double pack)
Economic
(Affordable small
Packs)
Supply
(Local)
Demand
(Created)
Competition
(MNC & Regional)