Team 6 STP

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Product Category Report

Introduction
Cadbury's is a British multinational confectionery company owned by Mondelēz
International. It is the second largest confectionery brand in the world after Mars.
Cadbury is headquartered in Uxbridge, London, and operates in more than fifty
countries worldwide. Its best known products include Dairy Milk chocolate.

History
In 1824, John Cadbury, a Quaker, began selling tea, coffee and drinking chocolate
in Bull Street in Birmingham, England. From 1831 he moved into the production
of a variety of cocoa and drinking chocolates, made in a factory in Bridge Street
and sold mainly to the wealthy because of the high cost of production. In 1847,
John Cadbury became a partner with his brother Benjamin and the company
became known as "Cadbury Brothers".

Cadbury was granted its first Royal Warrant from Queen Victoria in 1854. It has
been a holder of a Royal Warrant from Elizabeth II since 1955. Cadbury merged
with J. S. Fry & Sons in 1919, and Schweppes in 1969, known as Cadbury
Schweppes until 2008, when the American beverage business was split as Dr
Pepper Snapple Group; the rights ownership of the Schweppes brand had already
differed between various countries since 2006. Cadbury was a constant constituent
of the FTSE 100 on the London Stock Exchange from the index's 1984 inception
until the company was bought by Kraft Foods Inc. in 2010.
Product Category Report

Headquarters:
Cadbury has its head office at Cadbury House in the Uxbridge Business Park in
Uxbridge, London Borough of Hillingdon, England. The company occupies 84,000
square feet of leased space inside Building 3 of the business park, which it shares
with Mondelez's UK division. After acquiring Cadbury, Kraft confirmed that the
company would remain at Cadbury House. Cadbury relocated to Uxbridge from its
previous head office at 25 Berkeley Square in Mayfair, City of Westminster in
2007 as a cost-saving measure

Indian Market:

In 1948, Cadbury India began its operations in India by importing chocolates. On


19 July 1948, Cadbury was incorporated in India. It now has manufacturing
facilities in Thane, Induri (Pune) and Malanpur (Gwalior), Hyderabad, Bangalore
and Baddi (Himachal Pradesh) and sales offices in New Delhi, Mumbai, Kolkata
and Chennai. The corporate head office is in Mumbai. The head office is presently
situated at Pedder Road, Mumbai, under the name of "Cadbury House". This
monumental structure at Pedder Road has been a landmark for the citizens of
Mumbai since its creation. Since 1965 Cadbury has also pioneered the
development of cocoa cultivation in India. For over two decades, Cadbury has
worked with the Kerala Agricultural University to undertake cocoa research.

Currently, Cadbury India operates in five categories – Chocolate confectionery,


Beverages, Biscuits, Gum and Candy. Its products include Cadbury Dairy Milk,
Dairy Milk Silk, Bournville, Temptations, Perk, Eclairs, Bournvita, Celebrations,
Product Category Report

Gems, Bubbaloo, Cadbury Dairy Milk Shots, Toblerone, Halls, Bilkul, Tang, and
Oreo.
It is the market leader in the chocolate confectionery business with a market share
of over 70%. On 21 April 2014, Cadbury India changed its name to Mondelez
India Foods Limited. In 2017, Cadbury/Mondelez agreed to pay a $13 million
FCPA penalty for making illicit payments to government officials to obtain
licences and approvals to build a factory in Baddi

Cadbury
Product Mix

Chocolate Biscuits &


Chocolates Beverages
hampers Cookies
Product Category Report

Cadbury has a wide range of products such as chocolates, beverages,


biscuits, etc… It has diversified its products vertically to acquire a good
market share and act like a monopoly in chocolate market. In the above
mentioned chart, it shows a brief category of products. A detailed variety
is as follows:

✴ Chocolates:

• 5 Star • Temptations
• Dairy Milk • Choclairs
• Bournville • Gems

• Perk

✴ Chocolate Hampers:

• Celebrations • Home Treats


✴ Beverages:

• Bournvita • Tang


✴ Biscuits and Cookies:



• Oreo • Chocobakes

Product Category Report

STP Analysis:

✦ Segmentation:
Demographic segmentation- Income – according to Cadbury pricing strategy
for rural India is low because of the income level of the families. They used a
coinage pricing strategy. Age group – in the rural are they target the children
most and the age group up to 12.

Behavioral segmentation – Purchase occasion – Any festival like they offer the
special pack for Rakhi and Diwali. Decision roles – decision role is played by
the children and youngsters when to buy the Cadbury.

Psychographic segmentation – Substitute of traditional Indian sweet Cadbury


dairy milk product segmentation is done based on “size” as a bar, small blocks
large blocks and special for rural India dairy milk introduce the dairy milk shots
as they are using the coinage product strategy.

✦ Targeting :
Target market for the Cadbury dairy milk is youngster and children. Targeted
the Rural India by using the coinage strategy as the introduced the Cadbury in 5
rs and Cadbury shots in 2 RS.
Target the low-income household by offering 2 and 5 Rs chocolate so that they
can also celebrate their happiness.
Product Category Report

✦ Positioning:

In rural India children see dairy milk as a synonym of chocolate. Use campaign
advertisement to maintain positioning In India. Create a position in the mind of
children by giving them free toys with Cadbury Lickables and create a
animation advertisement for them.

Conclusion:
With this we would like to conclude that Cadbury has brilliantly taken moves and
placed itself as the most preferable chocolate brand acquiring more than 70% of
market share. Its unique cultural marketing strategies which targets the customers
through properly triggering their sentiments and winning over their loyalty.
Unlike other brands its has diversified its products range vertically which makes it
a one stop shop for chocolates.

Bibliography:
https://www.coursehero.com/file/87837574/Cadbury-STPdocx/
https://en.wikipedia.org/wiki/Cadbury

Board Members:

✤ Jinesh Kumar ✤ Harsh Agarwal
✤ Jigna B Jain ✤ Rishab Mittal
✤ Sai Charan ✤ Kareena Purohit
✤ Divyansh Kothari ✤ Hitansh Mittal


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