Sales And Distribution of Cadbury
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Cadbury, founded by John Cadbury in 1824, evolved from selling tea and coffee to becoming the world's largest confectionery company by 2012 when it was acquired by Kraft Foods. The company has a strong presence in India, holding over 67% market share in the chocolate category, and emphasizes quality in its diverse product range, including Dairy Milk and Bournvita. Major achievements include recognition as a superbrand and consistently ranking among the top FMCG companies in India, with ambitious goals for revenue growth and market expansion.
Sales And Distribution of Cadbury
- 3. 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 3 2008
- 4. • 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:- CADBURY INDIA
- 5. Vision & Mission Vision: "Working together to create brands people love" Cadbury’s mission statement Says simply, ‘Cadbury means quality’; this is our promise. Our reputation is built upon quality; our commitment to continuous improvement will ensure that our promise Mission Statement 0f the product: The mission statement of our new product is “To provide our customers with a tempting and exquisite taste” as Enticing Treats means a mouth watering treat which is simply irresistible.
- 6. Sales and Distribution structure of Cadbury Product Competition Medium Unit value Low Volume High Unit Margin Low Seasonality Low Retailer’s Capital Investment Low No. of Retailers High Retailer’s sales Low Manufacturer Retailer’s Relationship Low
- 7. • To become the World’s Biggest and Best Confectionery Company. • To make lots of chocolate & improve the quality of their chocolate. • Have loads of stores worldwide. • To be an ongoing company & achieve revenue growth of 20% per year. • Increase earnings by 15% annually & dividends per share by 7% per year. OBJECTIVES
- 8. Source: Change at the chocolate factory By Geetanjali Shukla and Anusha Subramanian Edition:Feb 19, 2012 Cadbury India’s Market share in different segments in 2015
- 9. COMPETITORS
- 10. Achievements Major Achievements of Cadbury • Worlds No 1 Confectionery company • World's No 2 Gums company. • World's No 3 Beverage company. • Cadbury Dairy Milk & Bournvita have been declared a "Consumer Superbrand" for 2006-07 by Superbrands India. • Cadbury India has been ranked 5th in the FMCG sector, in a survey on India's most respected companies by sector conducted by Business World magazine in 2007. • Cadbury India has been ranked as the 7th Great Place to Work and the No. 1 FMCG company in India in 2008, by the Great Place to Work Institute. • Asian Marketing Effectiveness Awards 2008 for Bournvita Folk/Fusion campaign - GOLD award for the "Best Insights and Strategic Thinking" and SILVER award for the 'Most Effective Use of Advertising'.
- 11. PRODUCT
- 12. CHOCOLATE BAR. MADE FROM REAL DARK CHOCOLATE. SIMILAR DESIGN WORLDWIDE. CONTAINS MORE MILK THAN ANY OTHER CHOCOLATE BAR. AVAILABLE IN 10.5g, 22g, 95g, 165g & OTHER PREMIUM PACKS
- 13. Popular Brands in INDIA C ho co la te s S n a c k s Beverages CANDy’s G U M S
- 14. PRICE
- 15. WEIGHT (gm) PRICE 10.5 5 22 10 40 20 42 CRACKLE 25 95 50 80 FRUIT & NUT 55 165 90
- 16. PLACE
- 17. Business Operations Five company-owned manufacturing facilities: Thane Induri (Pune) Malanpur (Gwalior) Bangalore Baddi (Himachal Pradesh) 4 sales offices: New Delhi Mumbai Kolkota Chennai Corporate/Head office: Mumbai THESE FACTORIES CHURN OUT CLOSE TO 8,000 TONNES OF CHOCOLATE ANNUALLY
- 18. WHOLESELLER RETAILER CDM ARE SOLD DIRECTLY TO WHOLESELLER AND RETAILERS. CADBURY'S DISTRIBUTION NETWORK USED TO ENCOMPASSES 2100 DISTRIBUTORS AND 450,000 RETAILERS.
- 19. PROMOTION
- 20.
- 26. THE BIG ‘B’ FACTOR
- 27. segmentation
- 28. TARGET MARKET
- 29. Positioning
- 30. 1905 1990 1994 2003 2014 Time Sales Introduction Growth Maturity 20041998 +40% -30% +36% PRODUCT LIFE CYCLE
- 31. • 1905 – Cadbury launches Dairy Milk onto the market. • Positioned as ‘Unique Milk chocolate with far more milk and creamy taste’. • In the 1980s, it was positioned as ‘the perfect expression of love’, • ‘Sometimes Cadbury can say it better than words’. • During the early1990s, emphasised its international identity, the ‘Real taste of chocolate’. • Re-positioning was done in 1994, to the ‘free-child’ in every adult. • Cadbury Dairy Milk redefined itself as the perfect expression of spontaneous, shared good feelings, providing the ‘real taste of life’ experience. INTRODUCTION
- 32. • 1998- The next stage of growth for the brand deals with popularizing consumption in a social context, especially in more traditional settings like weddings. • With the campaign ‘Khaanein waallon ko khaanein ka bahana chahiye’ • Cadbury Dairy Milk aimed to substantially increase penetration levels with the award winning ‘Kuchh khaas hai.. .’campaign. • The brand penetrated into smaller towns and sales volumes grew by 40% GROWTH
- 33. • The ‘Worm Controversy’ resulted in Cadbury’s brand image taking a beating. • Sales declined up to 30%. • They had to recall a batch of chocolates. Cadbury rebuilt the trust of people by launching project ‘Vishwas’in 2004. • Redesign of Packaging • With Bachchan they also launched their new positioning of “Kuch Meetha Ho Jaaye” bringing in the tradition of celebrating a joyous occasion in India with sweets and now Cadbury Dairy Milk in particular. • The “Pehli Tareekh Hai” campaigns talked about the importance of having Dairy Milk and celebrating on getting your pay on pay-day. • “Shubh Aarambh” ads that have brought back the old charm of Cadbury Dairy Milk with its very interesting insight of mixing the traditional with the new age MATURITY
- 34. Euromonitor predicts the industry will enjoy a 6% rise in revenues in 2014, delivering record global revenues of US$117bn. This robust performance is driven by a 2.1% increase in volume, reflecting growing appetite for chocolate in emerging markets. (Morris,2014 ) 5.8 7.2 8.5 0 2 4 6 8 10 1999 2009 2020 MillionTons year Consumption in World wide Sources:- 1. A taste of Future, KPMG international-Consumer Markets June 2014, By John A. Morris Theoverallmarketsize,growthtrendsandfuture projectionsintheworldMarket
- 35. • Distribution Structure: No. of Levels • Selection Criteria for channel Partner CHANNEL DESIGN
- 38. RECRUITMENT
- 39. • Rewards: Monetary and Non-Monetary • Target Setting & Monitoring • Training & Capacity Building • Cash Flow CHANNEL MEMBER MANAGEMENT
- 40. • General Trade Distributor Margin is around 4.75% and 1% is activity based(completion of Monthly Sales Target) • Modern Trade Distributor Margin is around 4.5% and 0.5% • Super Stockist Margin is around 2% and 1% of market value MONETARY BENEFITS
- 41. • Retailers Margin Product Margin Bournvita 9% Oreo 13% Tang 10% Halls & Eclairs Pouch 15% Halls & eclairs Jar 12% Health Drinks 9% Drinking Choclate 7.5% Choclates worth Rs. 5-20 10% Choclates worth morethan Rs. 20 14%
- 42. • Big Bazaar has a direct account with Cadbury and there are separate margins fixed for these chains overall India by both of them mutually Product Margin Bournvita 9.45% Choclates 11.03% Tang 10.23% Oreo 10.23% MODERN TRADE MARGIN
- 43. • UDAAN: Foreign Trips to super stockists based on performance • Visicoolers can be given only in food stores and Chemists where sales is more than 3000 per week • SMDs can be given in Top shops where Sales is more than 2000 per week • Mass market dispensers(Halls,Eclairs and Bubaloo gum) are given to chemists,Paan tapris • Barrow Dispensers given to small shops and Paan Tapris Non-Monetary Benefits
- 44. • Monthly Targets set Separately General & Modern Trade Distribution • Incentives only after surpassing Targets • Targets Sets as on data are: General Trade: 80-90 Lakhs Modern Trade: 10 Lakhs • Monitoring Done by”Analysing Invoices” generated by the distributors & through company’s Salesforce TARGET SETTING & MONITORING
- 46. THE DISTRIBUTOR–RETAILER CASH CYCLE VARIES FROM 1-7 DAYS. IN MODERN TRADE THE CASH CYCLE IS OF 16DAYS TO 1 MONTH. THE DISTRIBUTOR IS LIABLE TO PAY SALARY TO THE PCS BUT THE MONTHLY INCENTIVES ARE GIVEN BY THE COMPANY THERE IS PAYMENT DONE THROUGH RTGS & PREPAID CHEQUES TO THE COMPANY FLOW DISTRIBUTOR MAKES PAYMENT TO THE COMPANY ON A WEEKLY BASIS. CASH FLOW
- 47. Branch Mgr BLM (Branch Logistic Mgr) BSM (Branch Sales Mgr) Area Sales Mgr Area Sales Mgr Area Sales Mgr Sales Engineer Territory Sales In Charge Interim Sales Representative Super Stockist Area Sales Mgr BCM (Branch Commercial Mgr) HR Mgr SALESFORCESTRUCTURE OF CADBURY
- 48. ANNUAL MEETINGS FOR DISTRIBUTORS "UDAAN" FOREIGN TRIP TO HIGH PERFORMING SUPER STOCKIEST LAST YEAR TRIP TO BANGKOK & MALAYSIA FOR STOCKIEST PREVIOUSLY TRIPS WERE TO THAILAND & DUBAI GIFT HAMPERS SALES FORCE MOTIVATION
- 49. EVERY PURPLE CHAMP IS ALLOTTED A SPECIFIC ROUTE TO BE COVERED IN EVERY BEAT AND HIS BEAT PLAN IS MADE FOR THE ENTIRE WEEK BY THE TSI UNDER THE SUPERVISION OF HIS TSE USUALLY 10-12 PCS ARE APPOINTED BY A DISTRIBUTOR. THEY REPORT DIRECTLY TO TERRITORY SALES INCHARGE (TSI). DISTRIBUTOR'S SALES FORCE IS CALLED AS PURPLE CHAMP. PURPLE CHAMP
- 50. A DAY WITH PURPLE CHAMP
- 51. A DAY WITH PURPLE CHAMP
- 52. Sr. No Parameters MOP Metro 1 Overall Value Achievements Secondary Value 1200 2 Focus Category Volume Achievement (only one category) Volume in tonnes 600 3 Overall MSS Improvement 65.5% 1100 4 Big hits Achievement (2 Big Hits) 100% if both 30% if one 1100 Total Incentives 4000/- Month COMPANY INCENTIVES FOR PURPLE CHAMP
- 53. • Modes of transport • Use of IT • Role of Third Party Transportation & Logistics
- 54. Mainly Roadways Retailer Distributor Tata Ace/ Magic Production Site Insulated Vans MODES OF TRANSPORT
- 55. • The invoice is generated by the company and the stock is sent along with the invoice and a copy of it for the distributor. • WINOMKAR is a software where all the data and reports are maintained and is made available for the ASMs, the BMs and SE's(Limited Access) online for making further decisions. • Provides all the data, Performance reports Beat Wise, Outleat wise Sales Trends over the years and months and Inventory Report (MIS of company developed by Pune based ‘Heerasoft’) • Documentation is required once a retailer enrolls for a display scheme or receives a visicooler or SMD or Fridge by the company • Meranet is a software through which the SO reports everything on a daily basis to the ASM. • Daily sales figures get synced here and the SO can view the summary at a glance. • SO also mandatorily has to mail it to the ASM on a daily basis. USE OF IT & DOCUMENTATION