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cadbury V/s nestle
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Dasharath Anpat
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cadbury V/s nestle - October 9th, 2009

India's chocolate market is dominated by two just companies-Cadbury, which entered the country 60 years ago and has nearly 60% market share, and Nestle, which has about 32%. The two have prospered by luring consumers with attractively packaged chocolate assortments to replace the traditional dried fruits and sugar confectioneries offered as gifts on Indian holidays, and by offering lower-priced chocolates, including bite-sized candies costing less than 3 cents. With growth just starting to kick in, Asia is going to remain a sweet spot for chocolate makers for years to come.

Corporate Objectives:
• Broadening consumer appeal and extending reach to newer markets
• Sustained growth of market share through aggressive product development
• Striving for international quality in the products and processes
• Focussing on cost competitiveness, productivity and innovative utilization of assets

Marketing Objectives:
• Get more people to eat more chocolate, which calls for making it more affordable and being more innovative

Advertising Objective:
Consumer focus:
• Appealing to a broader range of consumers is at the heart of the plan.
• Greater innovation in packaging & product presentation across various power brands
Suppliers and business partners:
• Continue using Ethical Sourcing Standards when working with suppliers
• Continue to engage in regular dialogue with its suppliers and responds to their suggestions

Situation Analysis
The chocolates market is estimated at around 33,000 tonnes valued at approximately Rs 8.0 bn.
Cadbury is the leader in Chocolate with 70% share. It has actually become the generic name for chocolates in India.The next closest competitor to Cadbury in this segment is Nestle 22%. Besides that large foreign brands like Hershey’s and local ones like ITC are trying to tread into Cadbury’s turf. Imported chocolates are available via modern trade in higherend
segments where Cadbury’s presence is arguably weaker.

Cadbury’s Strategy:
Branding Strategy:
Cadbury’s strategy to attract consumers is unique in a sense. Instead of focusing on the product, it seeks to tap into emotions normally associated with chocolates.

Marketing Strategy:
In the Chocolate Confectionery business, Cadbury has maintained its undisputed leadership over the years. Some of the key brands are Cadbury Dairy Milk, 5 Star, Perk, Éclairs and Celebrations. Cadbury enjoys a value market share of over 70% - the highest Cadbury brand share in the world.

Advertising Strategy:
Television, the print media and posters have been the main media of communication for Cadbury’s advertisements. However, with their understanding of the peculiarities of the Indian market, Cadbury has also explored many new ways of getting their message across to the consumers.

Nestle strategy:
Branding Strategy:
Nestlé describes itself as a food, nutrition, health, and wellness company. Recently they created
Nestlé Nutrition, a global business organization designed to strengthen the focus on their core
nutrition business.

Marketing Strategy:
Cadbury’s biggest competitor, Nestle, often stresses the energy giving aspects of chocolate, or on other attributes of the chocolate - taste in the case of Nestle Crunch, as a light snack in the case of Nestle Bar One.

Advertising Strategy:
Television, the print media and posters have been the main media of communication for Nestle advertisements.

Marketing Mix:
Cadbury India Limited (CIL) confectionary products include Dairy Milk, 5 Star, Eclairs, Perk, Halls, Bytes and Gems which are the largest selling brands in their segments.
Nestle products are Kit-Kat, Munch, Milky-bar, Charge, Classic, Polo. Kit-Kat is their premium brand in chocolates. In Nestle, the diversification and revenues across other segment like snacks, coffee, milk products, infant food, beverages is higher.

The price charged for a chocolate bar can determine whether a consumer will buy it and the level of sales achieved can determine. Price is also affected by factors such as the state of the economy, what competitors are charging, the stage reached in the products life cycle and above all what price the Indian market will bear.

The basic purpose of promotion and advertising by Cadbury is to make Cadbury synonymous with chocolate and -
• Educate the market
• Build brand awareness
• Increase consumption
• Encourage seasonal purchases

Chocolate needs to be distributed directly, unlike other FMCG products like soaps and detergents, which can be sold through a wholesale network. 90% of chocolate products are sold directly to retailers. Distribution, in the case of chocolates, is a major deterrent to new entrants as the product has to be kept cool in summer and also has to be adapted to suit local tropical conditions.

Customer Target:
The Chocolate market presently is close to 60mn consumers and they are mainly located in urban areas. Cadbury's has successfully played the role of market leader and market maker by building brands that have a large base of loyal consumers. Cadbury had its tryst with India when it kick-started operations in 1947. Today the brand claims a 70% share of the Indian chocolate market, despite heavy weight competitors like Nestle and domestic giants like Amul.

Thus we understood better the chocolate market in India. Cadbury’s has a very good market share currently but will have to constantly revamp their strategies in order to compete with the foreign brands.

Last edited by bhautik.kawa; April 12th, 2015 at 08:09 PM..
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bihtermert is an unknown quantity at this point
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Re: cadbury V/s nestle - January 30th, 2010

Well done really it helped me a lot. thank you very much. cheers.
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Harry Hai
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Student of BBM at M.G.M.s J.N.COL.OF ENGG.
Aurangabad, Bihar
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Re: cadbury V/s nestle - March 5th, 2010

plzzzzzzzzzzzzz............any one help me with Nestle Chocolates 4p's marketing mix, cadbury 4p's marketing mix and Ansoff's Strategy for nestle chocolates....................................any one there who can help me...............help is much appreciated. thanks
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Hasheen Arora
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New Delhi, Delhi
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Re: cadbury V/s nestle - April 3rd, 2011

plz mail the project
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Business Education
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Re: cadbury V/s nestle - May 30th, 2015

Cadbury is dominating the market but it has been closely followed by Nestle. The difference between these two giant company is minuscule.It is very interesting to see their advertising strategy. Cadbury usually use all types of appeal and that is why they are ahead because they connect with their target audience and build brand recall.
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