Topics: Chocolate, Cadbury plc, Cadbury Dairy Milk Pages: 15 (4223 words) Published: August 24, 2013


Cadbury Dairy Milk encapsulates an enormous breath of emotions, from shared values such as family togetherness, to the personal values of individual enjoyment. It stands for goodness. A moment of pure magic! Cadbury Dairy Milk (CDM) entered the Indian market in 1948, and since then for consumers across India, the word Cadbury has become synonymous with chocolate. CDM remains at the top of the Indian chocolate market not only because of its most delicious, best tasting chocolate but also because of its memorable communication. * Cadbury India is a food product company with interests in Chocolate Confectionery, Milk Food Drinks, Snacks, and Candy. Cadbury is the market leader in Chocolate Confectionery business with a market share of over 70%. Some of the key brands of Cadbury are Cadbury Dairy Milk, 5 Star, Perk, Eclairs, Celebrations, Temptations, and Gems. In Milk Food drinks segment, Cadbury's main product - Bournvita is the leading Malted Food Drink in the country. * Sell three kinds of confectionery: chocolate, gum and candy * Operates in over 60 countries.

* 35,000 direct and indirect suppliers.
* 187 years old.
* 45,000 people are employed

The chocolate market in precedent years has been witnessing tremendous growth in terms of value as well as volume. The governance of the market is maintained by large international giants through franchisee and expansion into new markets which is leading to the growth of the chocolates market in India. The Indian chocolate industry has registered a growth of 15% per annum from 2008 to 2012 and is projected to grow at an even higher rate in the future. The industry has a positive outlook due to rising per capita income and the gifting culture in the country. According to this report, the per capita consumption of chocolates is increasing in the country which will continue to increase market revenues. It is expected that India's chocolate industry will be growing at a CAGR of 23% by volume between the years 2013-2018 and reach at 341609 Tons. Dark chocolates are expected to account for the larger market share when compared to milk and white chocolates in the coming years. The introduction of medicinal and organic ingredients in the manufacturing of chocolates has led to a new trend and development in the country, which will be adapted by major manufacturers to remain active in the market. The Indian chocolate market is getting bigger and better. While on one hand, the premium segment (composing imported varieties) is opening up on the other, companies like Cadbury India are launching indigenous product made to international standards. Of the 20,000 tons chocolate market worth about  Rs. 400 crore, Cadbury account for about 70% followed by Nestle, with a share of around 20%. Amul has about 5% of the market, with minor player taking the rest. The battle, though, is between Cadbury and Nestle. Though with a much smaller portfolio, Nestle is putting up a tough fight. From a treat for kids, chocolate are now being positioned near meal substitutes, thanks to the initiative taken by the Cadbury India during early nineties. The market itself has become broader based, in the sense adults are an important target segment now. The reposting of Cadbury’s Dairy Milk in 1994 as the ‘real taste of life (through the Slice of Life and Cricket commercial by Ogilvy and Mather) grew the entire milk chocolate by 20%, and gave the Cadbury’s range – 5 Star, Gems, Éclairs, Fruit & Nut, Crackle, Nutties, Butterscotch & Tiffns – a new lease of life. In other words, it facilitated the repositioning of Cadbury’s sub brands in the basket. Some of the strategic clicked, while other did not quite take off.  The company is pushing the gifting segment, through occasion linked gifts. Chocolates contribute to 64% of Cadbury’s turnover. Confectionary sales accounting for 12% of turnover is...
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