CADBURY

Cadbury is a multinational corporation, and Cadbury Dairy Milk (CDM) is one of the largest
confectionary companies in the world. They manufacture chocolate, gum, and sweets. Nearly
50,000 people work for them in over 60 countries, and they sell their products in markets all
over the world. Except in the United States, where Mondelz International produces Dairy
Milk with a brand of milk chocolate, Cadbury produces Dairy Milk with a brand of milk
chocolate. Many of the newer Dairy Milk types are now produced in France, and these
products are available in the United Kingdom. Every product in the Dairy Milk range is made
entirely of milk chocolate. Cadbury Dairy Milk was initially introduced in the United
Kingdom in 1905, and it currently includes a variety of items. Cadbury introduced its first
Dairy Milk bar in June 1905 in England, with a larger proportion of milk than prior chocolate
bars, and it quickly became the company's most popular product by 1914.

"All sorts of names were suggested: Highland Milk, Jersey, and Dairy Maid," stated George
Cadbury Junior, who was in charge of the bar's creation. However, the name Dairy Milk
remained after a customer's daughter suggested it." Fruit and Nut were debuted in 1928 as
part of the Dairy Milk range, while Whole Nut was released in 1933. Cadbury's was the most
well-known brand in the United Kingdom at this time. Cadbury's coined the phrase "glass and
a half" to promote the Dairy Milk bar's increased milk content, which was first used in 1928.

Marketing Goals & Strategy

Segmentation, targeting, and positioning

Cadbury products are segmented depending on a combination of demographics, behavioral,

and psychographic criteria, such as income and occasions. Cadbury products are enjoyed by
individuals of various ages and socioeconomic backgrounds. Cadbury's product offerings are
mostly determined by production capacity, pack pricing, package designs, and storage
facilities at retail locations, as well as seasonal and situational demands, celebrity
endorsements, and a variety of other considerations.

Cadbury has targeted people of all ages, but it has differentiated its product offers for various
types of consumers. Cadbury Temptations and Bourneville, for example, are aimed at higher-
end consumers ready to pay more, whereas Cadbury SILK is aimed at those who can't get
enough of chocolate. It has established itself as a symbol of good times and a carefree brand
that is appropriate for both special and everyday occasions.

Competitive advantage

Cadbury has two significant competitive advantages: distribution and brand equity. Cadbury
is making its products available everywhere, from mom and pop shops to high-end
department stores, which is only feasible because of its large distribution network, giving it a
competitive advantage.

Cadbury's key competitive advantage stems from its capacity to regularly promote its
products by changing the theme and functionality. Also, by cleverly arranging its advertising
and communications to deal with disputes and educate customers about the confectionaries,
the company was able to spread positive word of mouth as a result of negative marketing.

Distribution strategy

Despite Cadbury's lack of experience in FMCG, they can make its products available in both
urban and rural locations, however, they focus more on urban markets due to demand
economics. Products are made available through the C&F, wholesaler, retailer, and finally the
ultimate customer, in a three-tier distribution system.

Competitive analysis

The confectionery sector is highly competitive, with both local and national players vying for
market share. While Cadbury's parent company, Mondelez International, is the world leader
in bars and chocolates for the medium income group, other companies such as Nestle, Ferrero
Rocher, Perfect , Amul, Kraft Foods, and others specialize in specific product categories and
consumer groups. This business will see significant growth momentum in the near years due
to strong R&D and changes in the organoleptic of milk, changing lifestyles of Asian markets,
eating habits, and so on.

Market analysis

The confectionery industry is always expanding, and due to shifting consumer preferences for
milk and dairy products, there is an ever-increasing amount of opportunities in this sector.
Few firms dominate the market, such as Cadbury, Nestle, Mars, Heinz, Perfetti Van, and
others. Cadbury has a diverse product portfolio in the chocolate segment, including dairy
milk, Bournville, Cadbury crunch, Eclairs, and others, allowing them to lead the market in
this category. However, their other product categories, such as biscuits and cakes, are
suffering due to a limited product portfolio.

Mission and Vision

Mission- “Cadbury means quality; this is our promise. Our reputation is built upon quality;
our commitment to continuous improvement will ensure that our promise is delivered”

Vision- “Working together to create brands people love” The Barrow Cadbury Trust’s vision
is of a peaceful, equitable society, free from discrimination and based on the principle of
social justice for all.

BCG MATRIX

Cadbury India with products Cadbury dairy milk and bournvita are key players having a high
market share and high market growth. they are the start products of Cadbury India.

Bournville chocolate and dairy milk candy are the products that have high market growth and
low market share this product may become star products if more investment is made, these
are the question marks for Cadbury India.

Perk, five-star Cadbury delight are the cash cows for Cadbury India as they are having low
market growth but high market share.

Eclairs Cadbury gems, gums are dogs products having a low market share and low market
growth.
GE MCKINSEY MATRIX:

The McKinsey/GE matrix is a tool that performs a business portfolio analysis on the
Strategic. Business units in an organization. It is more sophisticated than the BCG matrix in
the following three aspects:

-Industry (market) attractiveness - Industry attractiveness replaces market growth. It includes

market growth, industry profitability, size, and pricing practices, among other possible
opportunities and threats.

-Competitive strength - Competitive strength replaces market share. It includes market share
as well as technological positions, profitability, size, among other possible strengths and
weaknesses.

-McKinsey GE growth pyramid matrix works with 33 grids while the BCG matrix is
2*2matrixes.

Marketing Performance Analysis

Cadbury was founded in 1824 by John Cadbury to provide high-quality tea and coffee to its
clients. Following its merger with Schweppes, it was renamed Cadbury Schweppes Overseas
Ltd (CSOL). The organization's objective is to provide the highest quality products to its
consumers to increase its market share and brand identification in both domestic and
international markets. As a result, in 2007, Cadbury made a critical strategic transition from
the beverage sector to sweets, which improved not only its corporate image but also its profit
margin. It began developing items such as '5 stars,' 'Perk,' 'Celebrations, Temptations, and
Diary Milks and Gems,' among others. It has also offered milk food-beverage, especially
Bournvita, in addition to this.

As a result, it can be stated that Cadbury is a well-known brand that generated £5, 384
million in yearly revenue in 2008. Cadbury is a well-known company that primarily serves
the international candy market. In the United Kingdom, it is the second-largest provider of
chocolate and other sugar confectionaries. Because the firm has been in operation for a long
time, it has developed a distinct market brand image that has helped it to gain a significant
competitive advantage over its competitors. Furthermore, because the company operates in
worldwide marketplaces, it has a good chance of spreading its booming products into other
emerging markets. This helps to increase the brand's market share and originality in a variety
of emerging areas around the world.

Even though Cadbury operates in over 60 countries, the majority of its revenue comes from
the US, South Africa, Ireland, and the United Kingdom. Along with these prospective areas,
India, Thailand, and China have a big impact on the Cadbury brand's growth and
development. Heavy attention and investment in modern technology is another essential
feature that lets the brand stand out among other obvious participants in the market. This
allowed the company to offer a variety of new products at a reasonable price, increasing
consumer loyalty and receptivity. As a result, it made it easier for the organization's financial
status to improve. Furthermore, a strong administrative team with a structured hierarchical
structure aids greatly in maintaining a consistent culture, which increases employee
satisfaction and motivation.

Operation Analysis:

Location:

Cadbury's Chocolate Factory is a working chocolate factory in Claremont, Tasmania, that

belongs to the Australian subsidiary of international confectionery manufacturer Cadbury (a
division of Mondelez International). Despite being a working factory, Cadbury's Claremont
has a long history, with 18 heritage-listed structures on the property. Pure granite "conching"
machinery that is over 60 years old and still in use may be found in the plant. The factory was
a popular Tasmanian tourism draw for families until its on-site visitor facility closed in 2015,
owing to its lengthy history and the general appeal of chocolate.

Cadbury's decided to grow internationally after a successful merger with rival chocolatiers
Fries in 1922. Australia was chosen as the location for its new operations because it was one
of the company's main export markets. Following a thorough investigation, Tasmania was
chosen as the site due to the state's inexpensive hydroelectricity provided by the Hydro-
Electric Commission, cool environment, and availability of high-quality fresh dairy
production and supply. The construction of the new complex was a big operation, and the
new site was modeled after Cadbury's Bournville facilities, right down to the residences,
stores, and sports, and other amenities available to staff. The new estate, known as
"Cadbury's Estate," was built on the banks of the Derwent River near Claremont, a suburb of
Glenorchy.

The majority of the milk used in Cadbury's products comes from Tasmania's North-West
region and is processed in Cadbury's Burnie milk depot. The milk is subsequently transported
by B-Double road tankers to Hobart. All of the key Cadbury brand chocolate bars (including
Cherry Ripe and Crunchie) and blocks (Dairy Milk, Marvelous Creations, and Old Gold), as
well as classic chocolate confectionery products, are made at the site for the Australian
market (like Freddo Frog and Caramello). Seasonal items, such as Easter eggs, and boxed
chocolates (Roses, Favourites, and Milk Tray) are not made at the Claremont factory, but
rather at other Australian Cadbury sites. Cadbury's Claremont is Australia's and the Southern
Hemisphere's largest chocolate factory.

Manufacturing/Service Process Operations-

The beans are delivered to Chirk, where they are poured onto a conveyor belt, cleaned, and
processed. The beans are next roasted in a continuous roaster, which is a rotating drum. As
the beans run through the roaster, hot air is funneled in, and it is during this process that you
will smell chocolate! The roasted beans are 'kibbled' (broken into little pieces) before being
'winnowed' (the brittle shells are blown away, leaving only the 'nibs,' or bean center). The
nibs are then processed in a mill until they create a chocolate-colored liquid, similar to a thick
cream, with cocoa butter accounting for more than half of the volume. The liquid is referred
to as mass or 'cocoa liquor,' and it is the primary component of all cocoa and chocolate
products.

About half of the cocoa butter in the mass is squeezed out. After that, you'll
have a solid block of chocolate that can be processed into cocoa powder and
used to produce Cadbury Drinking Chocolate. The cocoa mass is delivered to
the Cadbury milk plant in Marlbrook, which is located near Hereford. It's
combined with sugar and fresh full cream milk that's already been condensed
into a thick liquid in this recipe.

Raw Material

Everything Cadbury produces begins with these resources.

 Cocoa beans.
 Milk.
  Fruit.
 Nuts.
 Dried seeds.

The cocoa tree is the starting point for Cadbury's delectable chocolate. Large cocoa pods arise
from the trunks and major branches of the tree. However, there aren't many of them; each tree
only yields about 30 pods every year. Each pod contains 30-40 seeds, which are cocoa beans,
and sit in a sweet white pulp that looks like cotton wool.

Cadbury purchases cocoa from Ghana, a West African country where the major harvesting
season runs from October through December. The cocoa pods turn a deep golden color when
fully ripe. The pulp and beans are then taken from the exterior husk once the trees are cut
down. After that, the beans are fermented. Heap and box fermentation are the two most
common methods for fermenting cocoa beans. The Heap method is utilized in West Africa.
The cocoa beans are put on top of a layer of banana leaves, which are then covered with
additional leaves. They are then allowed to ferment for five or six days, during which time
much of the chocolate flavor develops! The pulp that surrounds the beans turns to liquid and
drains out.

The wet beans are then dried in the sun and turned regularly to ensure even drying - this is
important because if any beans are still wet when they are stored, they will go moldy. When
the farmers are satisfied that the beans are dry, they are transported to buying stations, where
they are weighed and packaged into sacks. Before the beans are sent to the port in Ghana, the
Ghana Cocoa Board will assess the cocoa-based on its quality. After Cadbury has chosen
their cocoa beans, they are shipped to Chirk, North Wales, where one of the world's most
efficient processing factories is located.
Distribution Channel

FACTORY/ PRODUCTION UNIT

DEPOT

C&F AGENTS

RE- DISTRIBUTORS

RETAILERS WHOLESALER MODERN

TRADE

CONSUMERS

 Cadbury dairy milk is sold directly to wholesalers and retailers.

 Cadbury’s distribution network used to encompass 2100 distributors and 450,000
retailers.
Human Resource Analysis:

Compensation analysis and payroll analysis

Employees at Cadbury earn an average of ₹25.3lakhs, mostly ranging from ₹8.0lakhs per year to
₹50.0lakhs per year based on 147 profiles. The  top 10% of employees earn more
than ₹44.0lakhs per year.

 The average salary of an employee at Cadbury is ₹25.3lakhs.

 Highest reported salary offered at Cadbury is ₹50.0lakhs. The top 10% of employees

earn more than ₹44.0lakhs per year. The top 1% earn more than a
whopping ₹50.0lakhs per year.
  8% of employees have skills in business development. 8% also know project
management. 7% also know Microsoft office.

 The median salary approximately calculated from salary profiles measured so far

is ₹20.5lakhs per year.

 36% of employees lie between 31-36 yrs. 25% of the employees fall in the age group
of 26-31 yrs.

 68% of employees have a Post Graduate degree. 30% hold a graduate degree.

 13% of employees studied at Mumbai University. 7% studied at the Institute of

Chartered Accountants of India (ICAI)

The top 5 highest paying jobs at Cadbury with reported salaries are:

 Business Development Manager - ₹33.0lakhs per year

 Production Manager - ₹27.0lakhs per year

 Project Manager - ₹23.0lakhs per year

 Asset Care Manager - ₹22.0lakhs per year

 Manager, Process Engineering - ₹19.0lakhs per year

Training and Recruitment Insights

Any company's ability to function effectively is dependent on its ability to train its employees. The
efficiency and productivity of employees in an organization are determined not only by the skills they
possess or the working environment in which they operate but also by the company's policy of giving
training to employees based on job demand.
There is still a mismatch between job demand and worker abilities. This chasm can be bridged by
providing adequate training and development opportunities. Workers have a better opportunity to
improve themselves, which leads to an increase in the organization's production. As a result, every
firm must give such training to employees for the development of their skills and knowledge linked to
their jobs, which will meet their individual learning needs as well as the needs of the organization and
achieve the organization goal too.

The main objective is to study the training and development activities carried by Cadbury India Ltd.
i.e.
 To study the training procedures provided by the company.
 To evaluate the effectiveness of training programs.

Employee Diversity- Demographic employee data

Cadbury’s mission at Mondelez International is to empower consumers to snack

responsibly. The brands, from OREO to CADBURY, have superpowers. They
promote a sense of humor, encourage acts of generosity, and take a stand on
important topics. We bring people together in a world that appears to be more
divided.

Its diversity as a worldwide corporation is a strength that drives innovation and

success. We seek to support diversity, inclusion, and economic empowerment
for our employees, culture, and communities, guided by our Purpose and
Values.

Global Diversity of Cadbury:

People Analysis

Cadbury’s human resource strategy stems from the company's fundamental operation goal,
which is to collaborate to create brands that others would enjoy. To do this, the corporation
created a goal connected to corporate social responsibility (CSR). This purpose would
compel the corporation to be socially responsible not only to its customers but also to its
employees. Cadbury creates human resource strategies based on CSR and ethical practices
because this goal affects the workforce. Indeed, one of the most important aspects of the
company's operations is ethical behavior, as well as the development of intimate relationships
with its stakeholders.

The company argues that strong ethics works well with good business, resulting in long-term
success; the corporation also claims that ethical business practices and respect for human
rights are essential foundations on how the company operates and behaves with people. The
company's human resource initiatives were then heavily influenced by these key values.

The company's HR policies are also impacted by Quaker ideals, which advocate for social
reform, fairness, and equality. As a result, the company has always treated its employees with
respect and has been concerned about their well-being since its inception.

This explains why the corporation provided its employees with sports facilities, parks, and
housing options. The company's human resource strategy also includes instilling its ethical
business culture in its employees by ensuring that all employees understand the values and
behavior the company expects of them, which is accomplished through the company's
Business Principal statement.

Financial analysis

Profitability ratio = Return on Assets = Net Income/Average Total Assets

Average Total Assets= Total assets of the current year + Total assets of the previous year / 2.

= 5,652.97 + 4,627.30 / 2 = 5140

Profitability ratio = 1,122.20 / 5140 = 0.218

Analysis-

Cadbury has a profitability ratio of 0.218 an ideal profitability ratio is 1 or 10% and they are
having a ratio way less than 1 which mean that they are not able to return on assets but if you
will compare it with HUL they are ahead in the Profitability which means that Cadbury is not
as much profitable as HUL.

Leverage ratio OR Debt to equity ratio = Total debt / Total equity

= 1,613.52 / 4,039.45 = 0.399

Analysis-

Having a Debt-to-equity ratio less than 1 means that Cadbury is not financing its assets from
the money of equity shareholders and in comparison, to HUL, the HUL have a leverage ratio
of more than one that is 1.23 HUL beat as Cadbury are intended to finance their assets from
the money of equity shareholders

Liquidity Ratio = Current ratio

Current ratio = Current assets / Current Liabilities

= 3,070.27 / 1,582.36 = 1.9

Quick ratio = Current assets- inventories / Current liabilities

= 3,070.27 - 718.89 / 1,582.36 = 1.485

Analysis –

Current ratio – They have a current ratio of 1.94 which is an average ratio if we compare it
from their competitor Cadbury standstill at 0.946 with them by having a ratio of more than 1
such a good current ratio states that the company can manage its current liabilities also they
have current assets in the surplus.

Return on equity = Net income / Average shareholder's equity

Average shareholder equity = 4,039.45 + 3,235.28 /2 = 367.365

R.O.E = 1,122.20 / 367.365 = 3.05

Analysis-

Cadbury has an R.O.E ratio of 3.05 which is way more than 1 and which indicates that a
company could manage and they are properly investing the earnings into productive assets.
Whereas in comparison to HUL have an ROE of 0.289 way LESS than 1 and hence Cadbury
are in a better position.