3-Product Cadbury India-Product Life Cycle Management

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MKTG-1-0035 | October 15th 2014
Cadbury India: Product Life Cycle Management
“We have stayed ahead of competition by growing the category. This category growth has come through behaviour-changing
advertising, innovation and growing width and depth of distribution.”
Mondelez India Foods Limited
Authorised for educator review use only by Farhan Mustafa, Indian Institute of Technology Roorkee. Expiry date 7-Jan-2020
S
ince 2012, Cadbury India (Cadbury) had been trying to extend its market into rural markets. Cadbury,
which made its entry into the Indian market in July 1948, had been reinventing over the last seven
Usage permitted only within these parameters otherwise contact info@thecasecentre.org

decades by making itself relevant through the expansion of its distribution network with innovative
product lines like – Perk, Shots, Silk, etc. It had also been trying to reach out to varied groups of customers
through its innovative advertising and repositioning its existing product lines. The Indian consumer is fond
of sweets and consumed them as a dessert after meals and also to celebrate success and occasions like festivals,
weddings, etc. Cadbury tried to reposition its products as a gift item and as a sweet for celebrations. It also
Educational material supplied by The Case Centre
switched the perceptions of the consumers that chocolates were just for the kids and repositioned its products
Copyright encoded A76HM-JUJ9K-PJMN9I
not only for teenagers but for all the age groups.
AIDed (Advertising, Innovation and Distribution) by its multi-pronged approach of changing consumption
behavior of Indians in general and rural Indians in particular, would it be able to stay ahead of the pack?
Would its AID formula succeed in increasing the chocolate consumption levels of the Indian consumers and
the market size, and in turn keep rechristening its PLC? Would it be able to extend its Product Life Cycle
(PLC) and stay relevant in terms of its product value chain in the Indian chocolate market?
Chocolate Market in India

India was among the fastest growing markets in the world in terms of chocolate consumption. Growing at
a Compounded Annual Growth Rate (CAGR) of 25%, India’s confectionery market was worth about
`5,000 crore in October 2013 and was expected to cross `7,500 crore by 2015.1 Nearly, 70% of revenues
are contributed by sugar confectionery and the remaining 30%2 are accounted for by the chocolate confectionery
1
“Chocolate demand soars by 40% amid growing concerns of adulterated sweets & abnormally high dry-fruit prices this festive season:
Survey”, http://www.assocham.org/prels/shownews-archive.php?id=4216, October 18th 2013
2
Nargis Namazi, “A Sweet look into the world of Indian Confectionery”, http://www.businessreviewindia.in/lifestyle/travel-food/a-
sweet-look-into-the-world-of-indian-confectionery, July 27th 2011
This Case Study was written by Syed Abdul Samad and Dr. Nagendra V. Chowdary, ET CASES. It is intended to be used as the basis for classroom
discussion rather than to illustrate either effective or ineffective handling of a management situation. The case study was compiled from published sources.
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MKTG-1-0035 | Cadbury India: Product Life Cycle Management
market, which is worth `2000 crore3 (organized market). However, the per capita consumption among
Indians is very low at 75gm-100gm per year, while the British and French consume 6 kg per capita per year.4
The confectionery industry is broadly divided into – chocolate confectionery, sugar confectionery and gums.
In India, this industry is divided into – chocolates (5 Star, Eclairs, Munch), hard-boiled sugar candies (Mango
Bite, Mint-O, Mentos), lollipops (Nutrine Lollipop, Alpenliebe), lozenges (Poppins), and gums (Big Babol,
Boomer).
The chocolate market in India was witnessing a change in consumption patterns due to the growing middle
class, their increased affordability and availability of a broader range of brands (Exhibit I). Chocolates were
increasingly being bought by Indians for everyday consumption as a snack rather than occasional luxuries
and even replacing traditional sweets, snacks and savouries with chocolates for in-home consumption and
gifting during celebratory occasions.

Exhibit I: Chocolate Consumption Pattern in India
Source: Writankar Mukherjee and Ratna Bhushan, “India is the fastest growing market for adult consumption of chocolates and candies”, http://
articles.economictimes.indiatimes.com/2013-08-01/news/40963259_1_chocolate-consumption-chocolate-market-indian-consumers, August 1st 2013
The market witnessed a trend of increasing consumption of chocolate among adults with per capita
consumption increasing from 40gm in 2005 to 120gm in 2013.5 With an estimated 20%6 of sales coming
3
Writankar Mukherjee and Ratna Bhushan, “India is the fastest growing market for adult consumption of chocolates and candies”, http:/
/articles.economictimes.indiatimes.com/2013-08-01/news/40963259_1_chocolate-consumption-chocolate-market-indian-consumers,
August 1st 2013
4
“India emerges as fastest growing market for chocolate”, http://www.timeslive.co.za/lifestyle/2012/11/09/india-emerges-as-fastest-
growing-market-for-chocolate, November 9th 2012
5
“India is the fastest growing market for adult consumption of chocolates and candies”, op.cit.
2 © www.etcases.com
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Cadbury India: Product Life Cycle Management | MKTG-1-0035
from chocolate consumption by adults, manufacturers are targeting this group with new products such as
low calorie bars, energy bars and vegetarian chocolates. Even the rural market in India, which contributed
about 16%–17% of the total chocolate market, was growing at a CAGR of 19% for chocolate and 10% for
creams7, thus giving ample room for chocolate companies for their growth (Exhibit II).
Exhibit II: Chocolate Demand in Rural India
Source: Namrata Singh, “India Inc eyes villagers’ growing sweet tooth”, http://timesofindia.indiatimes.com/business/india-business/India-Inc-eyes-
villagersgrowing-sweet-tooth/articleshow/24678941.cms, October 25th 2013
The organized chocolate market in India is dominated by the multinational companies. However, domestic
players are gradually increasing their foothold in the market. Cadbury, Amul, Nestle and Perfetti Van Melle
India, Ltd., were the major players followed by other important players like Lotte India Ltd., Nutrine
Confectionery Co. Pvt. Ltd., Candico India Ltd., Parle Products Pvt. Ltd., Wrigley India Pvt. Ltd., ITC
Foods, Hindustan Lever Ltd., and CAMPCO Ltd. However, Cadbury leads the pack with a market share of
about 67% in the Indian chocolate market, followed by Nestle at 21% and Ferrero at 6% in the year 20148
(Annexure I).
Cadbury: Company Profile

Cadbury was the world’s second largest confectionery company headquartered in Uxbridge, London. The
company which was best known for its products like Dairy Milk, Bournville, etc., was established in 1824,
by John Cadbury (John). To start with, the company sold tea, coffee and drinking chocolate (Exhibit III).
But with Benjamin Cadbury, John’s brother (in 1847) and later John’s sons, Richard and George, joining (in
1861) the company, Cadbury was on the growth trajectory with many product innovations. It also received
the Royal Warrant, in 1854, as manufacturers of chocolate and cocoa to Queen Victoria. The company also
6
7
Namrata Singh, “India Inc eyes villagers’ growing sweet tooth”, http://timesofindia.indiatimes.com/business/india-business/India-Inc-
eyes-villagersgrowing-sweet-tooth/articleshow/24678941.cms, October 25th 2013
8
Sagar Malviya, “Cadbury investing heavily in sales to expand market in India as sales slip”, http://jobbuzz.timesjobs.com/news-detail/
mode=newsFromSource&id=530, February 20th 2014
© www.etcases.com 3
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Exhibit III: An 1885 Advertisement for Cadbury’s

took the growth path through organic route,
Cocoa acquisitions, mergers (J. S. Fry & Sons in 1919, and
Schweppes in 1969) and takeovers (by Kraft Foods
in 2010) over a time span of almost 190 years. As of
2014, Cadbury was a subsidiary of Mondelez
International with net revenues of $35 billion9
(Annexure II).
Cadbury operated in more than fifty countries
covering Europe/Central Europe (UK, Ukraine,
Russia, etc.), the Americas (US, Canada, Brazil,
Mexico, etc.), Africa and Asia Pacific (Nigeria,
Australia, China, Malaysia, India, etc.).

Cadbury India began its operations in India on July
19th 1948, with its corporate headquarters at ‘Cadbury
House’, Peddar road, Mumbai. It started its business
in India by importing chocolates. But during the
Source: “The Sweet Success of Cadbury’s”, http://virtualvictorian.blogspot.in/ 1950s it started manufacturing in India and now has
2010/01/sweet-success-of-cadburys.html, January 20th 2010
6 manufacturing facilities in Thane, Induri (Pune),

Malanpur (Gwalior), Hyderabad, Bangalore and

Baddi (Himachal Pradesh) and sales offices in New
Exhibit IV: Cadbury India: Segment-wise Market
Delhi, Mumbai, Kolkata and Chennai. Since 1965, Share
it has also taken up cocoa cultivation and research in
India in collaboration with the Kerala Agricultural
University. On April 21st 2014, Cadbury India
changed its name to Mondelez India Foods Limited.
Cadbury, in India, operated mainly in five categories
– chocolate confectionery, beverages, biscuits, gum
and candy (Exhibit IV). With 70% of market share
and sales turnover of `4,271.61 lakh10 during 2012
(Annexure III), it is the market leader in the chocolate
confectionery business in India. Cadbury Dairy Milk,
Bournvita, 5 Star, Perk, Bournville, Celebrations,
Gems, Halls, Éclairs, Bubbaloo, Tang and Oreo are
some of its major products/brands across the five
categories, which helped it in maintaining undisputed
leadership over the years. In addition to maintaining
the quality of products, Cadbury had focused on
product innovations (like Perk, Silk, etc.), product Source: Geetanjali Shukla and Anusha Subramanian, “Change at the
chocolate factory”, http://businesstoday.intoday.in/story/kraft-takes-over-
distribution (by improving its network in tier-II and cadbury-india-changes/1/21920.html, February 19th 2012
9
“Mondelez International, Inc.”, http://ir.mondelezinternational.com/secfiling.cfm?filingID=1193125-14-79175&CIK=1103982,
December 31st 2013
10
http://www.indiainfoline.com/Markets/Company/Fundamentals/Profit-Loss/Cadbury-India-Ltd/500793
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tier-III cities) and advertising (positioning its products for various occasions and people) to stay relevant in
the Indian market.
Cadbury India: Staying Relevant

Cadbury, in India, had a well appreciated portfolio of chocolate, gum and candy brands. It manufactured
and sold chocolate blocks, slabs or bars; coated wafer biscuits; malted food; and sugar confectionery. In the
chocolate confectionery business, the company has maintained their undisputed leadership over the years,
through some of its key brands, namely Cadbury Dairy Milk, 5 Star, Perk, Gems, Eclairs and Celebrations.
Bournvita was the company’s product in the malted milk food drinks segment, Halls was offered in the
medicated candy category and Bubbaloo was recently launched in the bubble gum category. The company
and its products stayed relevant through the changing times to become the leaders in each of the categories.
Several experts attribute its fairly long-standing success in Indian market to the innovations brought in its
product offerings, the innovative advertisements through which it grabbed the attention of the Indian

consumers and the ever growing width and depth of its distribution network through which it reached the
consumers across the country.
Innovation
Cadbury entered India, in 1948, and operated by importing chocolates and introduced Milk Chocolate and
Bournvita in the country. But within a few years, during 1950s, the company set up its first plant at Thane
in Maharashtra and started manufacturing chocolate and Bournvita. During the 1960s, the company set up
a Cocoa Research Centre in Kerala in association with the Kerala Agricultural University to initiate research
on standardization of cocoa farm practices, development of management strategies for major pests and
diseases of cocoa, production of hybrid seeds for area expansion programme in South India, etc. Later the
company went on to establish five more manufacturing plants across the country.
Cadbury, which started in 1948 with the introduction of Milk Chocolate and Bournvita in India, innovated
in terms of its product offerings suited to the Indian palate and grew to operate in multiple segments of the
confectionery market in the country by 2014.
Cadbury Milk Chocolate, marked by its higher milk content had become the celebrated brand from Cadbury
and is benchmarked for quality of chocolates in India. Cadbury Dairy Milk (CDM) was launched in India,
in 1984. However, it was just a progression of the Cadbury Milk Chocolate initially brought into India, in
1948. In the next 3 years, the company brought innovations in the product and introduced variants of
Cadbury Dairy Milk such as Fruit & Nut, Crackle and Roast Almond.
Similarly, Bournvita was one of the first products offered by the company in India. It was also known to be
one of the earliest brands in the malt-based health food category in the country. In more than 60 years of its
presence in the Indian market, it had gained consumer confidence as a symbol of quality providing best
nutrition. Even in this category the company experimented and extended its product offerings with various
flavours like chocolate and caramel under the brand name Bournvita 5 Star Magic. It also introduced
Bournvita++ with additional nutritional levels for physical strength and mental agility. Bournvita Li’l Champs
was introduced with scientifically proven ingredients like Docosahexaenoic Acid11 (DHA) and whey protein,
11
Docosahexaenoic Acid is an Omega-3 fatty acid that is essential for the growth and functional development of the brain in infants and
maintenance of normal brain function in adults.
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targeted at children in their formative years (between ages 2 and 5). With such innovations, it had become
the challenger brand to GlaxoSmithKline’s12 Horlicks which occupied more than 50% share of the malted
health food drink category in India, which is valued at `3,000 crore in 2013.13 For the quarter ended March
2013, Bournvita ranked second with a market share of 16.2%.14
After Bournvita, Cadbury introduced many other chocolate variants like Gems in 1968, 5-Star in 1969,
Eclairs in 1971, etc. (Annexure IV), but kept improving each of the introduced products with the changing
times. While 5-star was introduced in variants like fruit & nut, crunchy and chomp (rough-chew segment),
Gems collection had the fruity variant (Gems Jungli) and Eclairs had Rich Brownies flavor and liquid
chocolate (encased in its soft caramel) variants. However, in 2013 a notable innovation was made in its
Eclairs. The company made a non-sticky version of Eclairs (which does not stick in the teeth) and introduced
it as Chocolairs.
In 2003, Cadbury launched Highlights (Exhibit V) a health food drink in the southern markets of the

country. This health drink, the company claimed, came with independent value propositions and in no way
cannibalised it’s Bournvita. In 2004, the company launched Cadbury Bytes which were chocolates in smaller
size specifically made for the Indian market and were made available in caramel, coffee and strawberry
flavors at the price points of `5 and `10. It was marketed with the tagline ‘Snacking Ka Naya Funda’. In
2008, Cadbury introduced Cadbury Dairy Milk Lite for diabetic patients.
Exhibit V: Cadbury’s Innovations
Dairy Milk Shots Lite Cadbury Heroes Cadbury Celebrations
Gems Highlights Cadbury Bytes Bournvita Lil Champs
Compiled by the authors
Other products like, Cadbury Dairy Milk Shots (balls of chocolate similar to Laddu, an Indian sweet),
Oreo Biscuit, Tang – a fruit flavored ready-to-mix powdered beverage, Toblerone (a triangle-shaped premium
chocolate), Bournville, Temptations (premium dark chocolates), Bubbaloo (gum) and Perk (a snack having
chocolate and wafer) were also introduced in the Indian market. All these products had quite a few variants
in terms of flavors and price points.
12
GlaxoSmithKline PLC is the world’s sixth-largest pharmaceutical company headquartered in London.
13
Viveat Susan Pinto, “Bournvita Outruns Complan”, http://www.business-standard.com/article/management/bournvita-outruns-complan-
113060200401_1.html, June 2nd 2013
14
Ibid.
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The company also tweaked the packaging of some of its products to innovate. Gems, for instance, had two
price points at `2 and `5. Another type of packaging used for gems was a ball-shaped container having
‘Panda’ toys as gifts in it, but was offered at a higher price point. It was mainly targeted as a playing item for
kids. Cadbury Heroes was introduced in September 1999. It was a brand of boxed/tinned confectionery
from Cadbury and contained miniature versions of various Cadbury chocolate bars.
Another successful packaging story from Cadbury was of Cadbury Celebrations offered since 1997. It served
a tantalizing mix of chocolates in all shapes, sizes and flavors. It was positioned as a fitting replacement for
the traditional mithai (sweet) in the traditional festivals of India. Since 2000, it specifically focused on
festivals like Raksha Bandhan, Diwali and important occasions such as engagements, etc. It went further
ahead to celebrate special relationships such as friendship and annual days like Father’s Day, Mother’s Day,
Teacher’s Day, etc. Cadbury pegged the branded food gifting market to be worth `500 crore15, half of which
comprised only of chocolates. Rohit Srivastava, EVP, Contract India, the agency which works with Cadbury

said, “The Celebrations’ brand is around `200 crore, which is incredible for a home grown brand created and
conceived in India.”16
Though Cadbury’s long presence in the Indian market and its product innovations – in terms of product
categories, product variants, varying price points and packaging – gave it an edge over its competitors in the
Indian market, the company’s captivating advertising
Exhibit VI: Cadbury's Kashmir Ad
campaigns were the ones that connected the consumer

emotionally with the company’s products and placed it

in the top.
Advertising
Cadbury Dairy Milk (CDM), the most sought after
brand from the Cadbury stable, entered the Indian
market in 1948. Since then ‘Cadbury’ had become
synonymous with chocolate in the country. CDM
remained at the top in terms of consumption and market
share not just because of its taste and quality but also
because of the company’s effective and memorable
communication/advertising campaigns.
In 2002, Cadbury had made a gaffe of epic proportions
Source: Claire Cozens, "Cadbury's ad upsets India", http://
through one of its product advertisements. It had www.theguardian.com/media/2002/aug/20/advertising.india, August
20 2002 th
compared one of its brand – Cadbury Temptations – to

the disputed territory of Kashmir (Exhibit VI) with the catchline – “I’m good. I’m tempting. I’m too good
to share. What am I? Cadbury’s Temptations or Kashmir?”17 This incident caused a national outcry and the
company had to apologize.
However, this was the only incident when Cadbury’s advertisement attracted negative publicity. Else, the
15
Preeti Chamikutty, “Can Cadbury, Parle, Britannia replace mithai with chocolates, confectionery and biscuits”, http://
m.economictimes.com/features/brand-equity/can-cadbury-parle-britannia-replace-mithai-with-chocolates-confectionery-and-biscuits/
articleshow/17478056.cms, December 5th 2012
16
Ibid.
17
Claire Cozens, “Cadbury’s ad upsets India”, http://www.theguardian.com/media/2002/aug/20/advertising.india, August 20th 2002
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company had always captured hearts with its funny/emotional ads that established an instant connect with
its consumers. Its ads had always tried to make the brand culturally relevant to Indian consumers.
One of the earliest-recalled ads of Cadbury in India was that of Cadbury Dairy Milk in 1994. A Girl
(Shimona) runs on to the cricket field and breaks into a joyous dance celebrating victory with the tagline Kya
swad hai zindagi ka - The Real Taste of Life. Through this ad, the company, for the first time, was able to
connect chocolate consumption to adults and reminded that there is child in everyone. Cadbury attempted
to increase the consumption of its product (thereby sales) by targeting the up-aging consumers through its
behavior-changing advertisements. Spencer’s Retail President and CEO, Mohit Kampani said, “Almost 20%
of chocolate sales in at the retailer come from adult chocolates.”18
Since then, Cadbury had reinvented itself in terms of advertising its products (Annexure V), which enabled
it to reach a new set of consumers, created occasions to have chocolate and reposition its products to serve
new purposes. Its advertisements also weathered away a storm in 2003. With the news of worms in CDM

bars due to faulty packaging, the company had lost nearly 30%19 of sales during the festive season. The
company then imported the machinery, changed the packaging and roped in the Bollywood actor Amitabh
Bachchan to endorse the brand, which helped in rejuvenating the brand sales.
Another major shift came when Cadbury tried to bridge the gap between Indian sweets and chocolates.
With Kuch Meetha Ho Jaye (Lets Have Something Sweet) campaign, it tried to equate the traditional sweet
consuming occasions as those fit for CDM consumption. The ads highlighted occasions like success in an
exam or love, pay day, festivals, etc., to convey the shift. The thought was extended through the Shubh
Aarambh (Auspicious Beginning) campaign in 2010, where CDM was pitched as a sweet to be consumed
before starting something new/good – like starting a new relationship/friendship, trying out a new outfit,
etc. Kraft Foods had taken over Cadbury (just before the Shubh aarambh campaign) giving more resources
for advertising and distribution. As a result of the campaign, sales grew by 30% in 2010 and with more
funds pumped in from Kraft the company saw sales increase by another 40% between January and September
2011.20
During festivals, CDM was also promoted as gifting item. Ankur Bisen, VP-Retail, of Technopak said,
“There has definitely been a drop in sale of Indian mithai (sweets). Some media reports peg a 30% drop in
sale of dairy-based Indian sweets, which has a `2,500 crore annual market.”21
In 2011, a whole campaign was crafted to sell the new packaging of 5-Star. “To maintain differentiation
across variants, we have a distinct colour code, where 5-Star Crunchy will get a brown swirl and likewise
5-Star Fruit and Nut will have a purple swirl,”22 said V Chandramouli, Director (Strategy & Snacking),
Cadbury India. However, industry experts opined that the change in 5-Star’s packaging was not drastic and
dedicating a whole campaign to it was a wasted effort by the company.
18
19
Sayantani Kar, “Cadbury’s sweet stint”, http://www.business-standard.com/article/management/cadbury-s-sweet-stint-
113082601020_1.html, August 26th 2013
20
Geetanjali Shukla and Anusha Subramanian, “Change at the chocolate factory”, http://businesstoday.intoday.in/story/kraft-takes-over-
cadbury-india-changes/1/21920.html, February 19th 2012
21
“Can Cadbury, Parle, Britannia replace mithai with chocolates, confectionery and biscuits”, op.cit.
22
Preeti Khicha, “Old Wine New Bottle - Cadbury Five Star”, http://www.business-standard.com/article/management/old-wine-new-
bottle-111072900069_1.html, July 29th 2011
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Gems’ Raho Umarless (Stay Age-less) campaign in 2012 Exhibit VII: Gems' TTaglines aglines Over The Y ears
Years
was the result of its stagnating sales growth. The brand
went on to reposition Gems to target adults (tweens,
teenagers and senior citizens), telling them they are never
too old to love Gems. One of the ads showed senior
citizens sharing Gems or exchanging ‘Panda’ gifts
accompanied with the Gems pack or craving for Gems
of their favorite color. The earlier ads of this product
positioned the brand along the lines of non-stop
excitement and also talked about creating pictures using
Gems, which clearly conveyed that Gems were targeted
only at kids (Exhibit VII). It also had ‘Gems Bond’ as a
brand mascot. However, now it is positioned as a product

for people of all ages supported with tag lines like No
Source: Devina Joshi, "When the going gets tough", http://www.business-
Umar For Masti (No age limit for excitement), No Umar standard.com/article/management/when-the-going-gets-tough-
114010500644_1.html, January 6 2014 th
For Toys (There’s no age for toys), No Umar For Favorite

Color (There’s no age for favorite color), No Umar For Lalach (There’s no age for greed), etc.
In January 2012, in an attempt to impress Bengalis (people of the state of West Bengal), Cadbury launched
Cadbury Mishti Shera Srishti (‘Cadbury plus Mishti is the best creation’) campaign, where the company tied-
up with nine of Kolkata’s Mishti (traditional sweet) shops that prepared over 100 innovative Cadbury
Mishtis (sweets using CDM), and invited people to vote for the most innovative creation. A million votes
were being cast. In January 2013, during the wedding season, it launched its campaign ‘Cadbury Weds
Mishti’, – where Cadbury weds local girl Mishti – claiming it to be the season’s biggest wedding. It invited
people to bless the couple. The company tied-up with 20 local sweet shops and chains (summing upto
around 60 outlets), to participate with their Cadbury innovations. In addition, it tied up with Zip-dial
(a call-to-action platform using missed calls). Each chain was allotted a unique number to which customers
could dial. The call would get disconnected automatically after recording the caller’s number. The chain that
received maximum number of calls was declared the winner. It further planned to organize Mishti eating
competition in malls and chains to reach a larger audience.
Bournvita, the company’s health food drink, on the other hand, started a trend of thematic ads side-lining
the functional benefits. The mother and son (to become an athlete) and the mother and daughter (to be a
boxing champion) ads for the brand were hard to miss. Here the mothers goad their kids to carry on despite
repeated failures. The lasting theme of the ads and their tagline Tayyari Jeet Ki (Preparing to win) conveys the
need of the product as a complement in the growing-up years.
However, these ads are subtle and do not go over-board to highlight only the nutritional aspects. Narayan
Sundararaman, Executive Director, Powdered Beverages, Mondelez International, hitting out at competitors
tall claims said, “We want to take the fight to the market leader. In the past three years Bournvita’s equity has
been built by being a partner to the parent in bringing up children, which has been communicated through
a series of campaigns. The brand has forged an emotional connect with consumers through its ads in the
category rather than claiming it can make kids taller, sharper and smarter.”23
23
Purvita Chatterjee, “Bournvita Prepares to Win”, http://www.thehindubusinessline.com/features/weekend-life/bournvita-prepares-to-
win/article4696184.ece , May 9th 2013
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Cadbury’s other product ads like that of 5-Star (Jo Khaaye Kho Jaaye – Dreamy surrender), Perk (Thodi Si
Pet Pooja – little something for the stomach), Bubbaloo, Oreo (togetherness theme – dad with daughter/
son/families), etc., had fun-filled and humorous themes. Through such themes and ads, Cadbury was able
to highlight the importance of culture, relationships, role of mother in a child’s growth, etc., and brought in
a feel good factor about buying the product and an emotional connect between the consumer and its products.
The brand also won awards for its advertising campaigns – two Emvies Gold in 2013 for Best Ongoing
Media Campaign and Best Integrated Campaign and Yahoo Big Idea Chair Award in the same year for Best
Use of Sponsorship.
Distribution
The Indian market is very vastly spread across 3.2 million square kilometres inhabited with more than 1.2
billion people and more than 240 million households.24 The retail network in the country is spread across
7,935 towns and 640,867 villages25 with 14 million retail outlets serving the Indian customers – of which

only 4% have space larger than 500 square feet.26 The larger outlets include hypermarkets, apparel stores,
electronics stores, restaurants and fast food outlets, multiplexes and gaming, departmental stores, footwear
stores, mobile stores, super markets, Jewellery and watches, pharmacies and other speciality stores. Managing
the retail network across these widely different terrains, climates, languages, value systems, life styles,
transportation and communications networks happens to be a daunting task for any company.
A total of 7.8 million27 retail outlets sell

FMCGs in India of which grocers are the Exhibit VIII: FMCG India - Sales Channel Breakdown
dominant format (Exhibit VIII). Other

formats include general stores, paan/beedi
shops, food/convenience stores, modern
trade, chemists, and others like hand cart
and pavement vendors, etc. In a country like
India, it becomes more important for
companies to shoe-horn their products on
retail shelves than to produce or advertise.
With the logistical constraints, it becomes
all the more difficult for companies to build
distribution equity. However, once built
over a period of time, it is hard to erode. Source: "FMCG", http://www.slideshare.net/IBEFIndia/fmcg-august-2013, August
2013
Cadbury, to make its product reach to the
consumers across the Indian sub-continent, built a huge distribution network system over the years. Its
distribution network included manufacturing facilities, warehouses, wholesalers and retailers (Exhibit IX).
As of early 2010, Cadbury’s distribution network had 2,100 distributors (1,990 in 2009) and reached
24
Dr. C. Chandramouli, “Census of India 2011 – A Story of Innovations”, http://pib.nic.in/newsite/efeatures.aspx?relid=74556
25
Ibid.
26
Kamal and Ashish Kumar, “Retail Sector: Growth and challenges perspective in India”, http://researchtrend.net/ijet31/13%20KAMAL.pdf,
March 19th 2014
27
“FMCG”, http://www.slideshare.net/IBEFIndia/fmcg-august-2013, August 2013
515-012-1
450,000 retailers28, but by March 2011, Cadbury had access to 1.8 million29 stores in the country. Though
much less than Hindustan Unilever (7 million stores30), analysts opine that for a confectionery major,
Cadbury’s reach is significant.
Exhibit IX: Cadbury Distribution Structure
Source: “Copy of Sales & Distribution @ Cadbury”, http://prezi.com/zhof3gjd2azj/copy-of-sales-distribution-cadburys/
With diversification of income, rise in land prices, shift of government funding, development schemes,
income-transfer schemes, etc., there was a sharp growth in the Indian rural markets while the urban market
were witnessing a decline in growth (Exhibit X). Thus, rural population became the next major target
segment of Cadbury to expand its presence in the country.
In 2012, executives from a Mumbai-based rural marketing agency, RW Promotions, representing the company,
were sent to households in rural Gujarat and Punjab. They carried a 9" TV, knocked on each door in the
village, showed them the Cadbury commercial to hard-sell the company’s products offering spot discounts.
S.Venkatesh, Director, RW Promotions, said that, “The response to the campaign has been good. The idea
of personally showing the commercials has worked. Our executives get a chance to interact one-on-one with
potential consumers, clear their doubts and highlight the benefits of the product. The attempt is to try and
close a sale right there and then.”31
With the slump in sales growth during 2013, Mondelez International was investing heavily in sales promotion
and market expansion in to rural India. The sales growth of Cadbury India was 21% in 2012 and over 30%
in the preceding year, it had lowered to low-teens in 2013 (Exhibit XI). Cadbury was also investing on
28
“Marketing Report on Cadbury India ltd”, http://www.ukessays.com/essays/marketing/marketing-report-on-cadbury-india-ltd-marketing-
essay.php
29
Viveat Susan Pinto, “‘Kraft’ of wooing India”, http://www.business-standard.com/article/management/-kraft-of-wooing-india-
111031400005_1.htm, March 14th 2011
30
Ibid.
31
Viveat Susan Pinto, “Cracking the Rural Code”, http://www.business-standard.com/article/companies/cracking-the-rural-code-
112032000092_1.html, March 20th 2012
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Exhibit X: Changing Dynamics of Rural Consumption in India
Source: “Five Trends That Will Drive FMCG Growth in 2013”, http://www.livemint.com/Industry/LyNBizkuOMdmThw6iaoGbN/Five-trends-that-will-drive-FMCG-
growth-in-2013.html, January 31st 2013

improving the distribution quality with the use of Exhibit XI: Cadbury India Sales Growth (%)
IT to improve logistics and establishing an end-to-
end cold-chain as the product quality got affected
during summers. To address this issue the company
started installing visi-coolers at several outlets. “We
increased our sales infrastructure with one lakh
visicoolers in the market and the company took big
strides by expanding into rural India and reaching
seven states in 2013,”32 a spokeswoman for Cadbury
India said. The company expanded its distribution
to cities, small towns and villages with a population
of 5,000-10,000 in nine states. It had planned to
establish a scalable distribution model in these
markets by 2015, with an aim of tapping at least Source: Sagar Malviya, "Cadbury investing heavily in sales to expand market
in India as sales slip", http://jobbuzz.timesjobs.com/news-detail/
75%33 of the rural market in the next three years. mode=newsFromSource&id=530, February 20th 2014
Cadbury’s Product Life Cycle Extension Challenges

Over the years, Cadbury had been extending its product life cycle in India, through various means like
product category innovations and product line extensions, captivating advertisements, and expanding
32
“Cadbury investing heavily in sales to expand market in India as sales slip”, op.cit.
33
Viveat Susan Pinto, “With cities in the bag, Cadbury to unlock rural demand”, http://www.business-standard.com/article/management/
with-cities-in-the-bag-cadbury-to-unlock-rural-demand-113122900681_1.html, December 29th 2013
515-012-1
distribution network. It had been able to weather the negative effects of ‘worms in CDM’ and ‘the Kashmir-
Temptations ad’. It had extended its chocolate market to adults and created occasions to consume chocolate.
It left no stone unturned to woo and retain customers. It was again attempting to extend its PLC by
expanding into the Indian rural market.
But, factors like India’s slowing GDP growth, high inflation, the weakening rupee, high commodity prices,
were contributing to the slowing demand in the chocolate market. Apart from these, increasing competition
from other big players and local players offering products at cheaper price, were also posing some threat to
Cadbury’s growth. In addition, the company was slapped with a show-cause notice from the Directorate
General of Central Excise Intelligence for misusing ‘area-based exemption’ for its new unit in Baddi, Himachal
Pradesh even before it came into existence. The company had evaded about $46 million34 in taxes. Its parent
company, Kraft, was also facing investigation in India regarding its taxes arising out of its takeover of Cadbury.
However, the company was confident of its successful rural expansion and was bracing for the situations

ahead. In a move to secure its supplies it invested $400 million (`2,200 crore)35 into cocoa production in
India, Ghana and Dominican Republic in 2012. To extend and sustain business in India, in November
2013, the company inked a Memorandum of Understanding with the Government of Andhra Pradesh to
set up Asia-Pacific’s largest manufacturing facility. The 134 acre, 250,000 tonne capacity per annum plant
was being planned in 4 phases, Phase-I involving an investment of `1,000 crore.36 The plant was expected
to serve 50% of the Indian market’s needs and create employment to 1,600 individuals.37
Manu Anand, Managing Director, Cadbury India, elaborating on the companies strategies for future growth,
said, “India is one of the top 10 markets for Mondelez; not just today but even well before the future. We
are looking at India with a much longer-term perspective because there will be ups and downs in any
economic cycle.” He added, “What we are going to do during this period is really focus on the basics. We
have got very strong brands and we are going to continue to build those brands. The second is going to be
around innovation, provide consumers with new products, new innovations, new things to try out at affordable
price points. The third is going to be around expanding our distribution not just numeric reach but also
what we do in store at the point of sale.”38
Though India was among the fastest growing chocolate markets, the Indian per capita chocolate consumption
level was at `80 per year, compared to the UK’s (`10,000 per year) and US’ (`5,000 per year) chocolate
consumption levels.39 Despite having a market share of about 70% in the fast growing Indian chocolate
market as of early 2014, Cadbury still needs to go a long way in terms of market penetration and expansion.
Hence, few questions arise like whether Cadbury India would be able to maintain its lead and its market
34
“Cadbury used non-existent factory in India to avoid taxes – Report”, http://www.hindustantimes.com/business-news/cadbury-used-
nonexistent-factory-in-india-to-avoid-taxes-report/article1-1021931.aspx, March 6th 2013
35
Viveat Susan Pinto, “Cadbury-Kraft new avatar to begin Rs 2,200-cr cocoa pivot”, http://www.business-standard.com/article/companies/
cadbury-kraft-new-avatar-to-begin-rs-2-200-cr-cocoa-pivot-112112100054_1.html, November 21st 2012
36
“Cadbury comes calling at SriCity”, http://www.business-standard.com/article/companies/cadbury-comes-calling-at-sricity-
113112700486_1.html, November 27th 2013
37
Ibid.
38
“Finding its sweet spot: How Cadbury India looks at future”, http://www.moneycontrol.com/news/business/finding-its-sweet-spot-
how-cadbury-india-looks-at-future_1031201.html, January 29th 2014
39
Viveat Susan Pinto, “With cities in the bag, Cadbury to unlock rural demand”, http://www.business-standard.com/article/management/
with-cities-in-the-bag-cadbury-to-unlock-rural-demand-113122900681_1.html, December 29th 2013
515-012-1
share intact? With its multi-pronged approach of AID, would it be able to stay relevant and extend its PLC
in the competitive market place with its market extension into rural India?
Assignment Questions
I. What do you mean by product life cycle? What does ‘Product’ in product life cycle mean?
II. How do you think Cadbury India has been AIDed by Advertising, Innovation and Distribution channels
to manage/extend its product life cycle across its product value chain?
III. How do you think, Cadbury India used competitive strategies (especially to do with expanding market,
protecting its market share and increasing its market share) to manage its PLC?
IV. What would it take for Cadbury India to increase average per capita consumption in India from `80
per year to either `10,000 a year or `5,000 a year?

V. Cadbury’s advertisements, of late, have been targeted to change the consumption behaviour. Would it
be successful?
Annexure I: Major Brand’s Market Shares in India

S l . Company Brands Market

No. Share
1 Cadbury India Cadbury Dairy Milk; 5Star; Perk; Celebrations; Eclairs; Gems; Bournvita; Halls; Oreo; Bubbaloo 67%
2 Nestle India Ltd. Alpino; Kit Kat; Eclairs; MilkyBar; BarOne; Munch; Classic; Eclairs; Polo 21%
3 Ferrero India Pvt. Ltd. Tic Tac; Kinder Joy; Ferrero Rocher; Nutella Hazelnut Cocoa Spread 6%
4 Perfetti Van Melle India Pvt. Ltd. Alpenliebe; Mentos; Center Fresh; Big Babol
5 Amul Chocozoo; Fundoo; Amul Fruit ‘n’ Nut Chocolate; Amul Dark Choco Slab; Rejoice; Bindaaz;
Chocolate Syrup
6 Lotte India Ltd. BooProo; Spout; Coffy Bite; Eclairs; Caramilk; Lacto King; Choco Pie
7 Nutrine Confectionery Co. Pvt. Ltd. Jumpin; Sofit; Hershey’s Syrup; Maha Lacto, Maha Choco, Nutrine Eclairs, Nutrine Lollipop,
Nutrine Santra Goli, Aasay, Kokanaka, Honeyfab
8 Candico India Ltd. Big Bubble; Elaichi Roll; Koffi Toffi; Eclairs; Lacto Plus 6%
9 Parle Products Pvt. Ltd. Parle G; Monaco; Hide n Seek; Krack Jack; Parle Marie; Happy Happy; Milk Shakti; Milano; 20-20;
Orange Bite; LondonDerry; Melody; Mango Bite; Kachcha Mango Bite; Poppins; Mazelo
10 Wrigley India Pvt. Ltd. Boomer; Double Mint; Juicy Fruit; Orbit; PimPom; Solano; Spearmint
11 ITC Foods Mint-O; Candyman; Sunfeast Dark Fantasy; Marie Light; Delishus; Farmlite; Dream Cream; Snacky;
Nice; Milky Magic; Sweet n Salt; Special Cookies; Sunfeast Glucose
12 Hindustan Unilever Ltd. Kwality and Magnum ice creams
13 Campco Ltd. Melto; Cream; Funtan; Eclairs Red/Green/White; Krunchos; Melto Chocmass Eclairs; Turbo; Treat;
Campco Minibar; Krust; Megabite; Winner; Dairy Dream; Milk n Milk
14 Others Local brands
Compiled by the authors
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Annexure II: Mondelez International, Inc. Selected Financial Data
2013 2012 2011 2010 2009

(in million, except per share and employee data)
Continuing Operations
Net revenues $35,299 $35,015 $35,810 $31,489 $21,559
Earnings from continuing operations, net of taxes 2,332 1,606 1,764 677 838
Net earnings attributable to Mondelçz International:
Per share, basic 1.30 0.90 0.99 0.38 0.57
Per share, diluted 1.29 0.88 0.99 0.38 0.56

Cash Flow and Financial Position
Net cash provided by operating activities 6,410 3,923 4,520 3,748 5,084
Capital expenditures 1,622 1,610 1,771 1,661 1,330
Property, plant and equipment, net 10,247 10,010 13,813 13,792 10,693
Total assets 72,557 75,477 93,785 95,228 66,718

Long-term debt 14,482 15,574 23,095 26,859 18,024
Total Mondelçz International shareholders equity 32,373 32,276 35,271 35,859 25,896
Shares outstanding at year end 1,705 1,778 1,768 1,748 1,478

Per Share and Other Data
Book value per shares outstanding 18.99 18.15 19.95 20.51 17.52
Dividends declared per share 0.54 1.00 1.16 1.16 1.16

Common Stock closing price at year end 35.30 25.45 37.36 31.51 27.18
Number of employees 107,000 110,000 126,000 127,000 97,000
Source: “Mondelez International, Inc. – Form 10-K”, http://ir.mondelezinternational.com/secfiling.cfm?filingID=1193125-14-79175&CIK=1103982, December

31st 2013
515-012-1
Annexure III: Cadbury India – Financial Highlights
Particulars Dec-12 Dec-11 Dec-10 Dec-09 Dec-08 Dec-07

INCOME : (in ` Lakh, except per share data)
Sales Turnover 4,271.61 3,521.89 2,614.90 2,045.08 1,751.24 1,441.92

Excise Duty 205.63 157.24 111.66 110.70 162.65 148.45
Net Sales 4,065.98 3,364.65 2,503.24 1,934.38 1,588.59 1,293.47
Other Income 58.07 123.38 30.27 14.23 25.07 22.52
Stock Adjustments 51.90 10.60 83.41 -16.28 51.32 17.29

Total Income 4,175.95 3,498.63 2,616.92 1,932.33 1,664.98 1,333.28
EXPENDITURE :
Raw Materials 1,576.33 1,247.80 903.81 617.29 522.06 394.55
Power & Fuel Cost 81.27 60.70 52.61 37.25 29.70 25.30
Employee Cost 271.93 239.19 166.72 133.59 119.62 111.94
Other Manufacturing Expenses 593.77 533.36 447.62 295.09 283.97 228.23

Selling and Administration Expenses 1,156.98 924.11 698.49 542.82 462.23 377.55
Miscellaneous Expenses 44.41 45.37 33.81 24.87 3.83 16.33

Less: Pre-operative Expenses Capitalised 0.00 0.00 0.00 0.00 0.00 0.00
Total Expenditure 3,724.69 3,050.53 2,303.06 1,650.91 1,421.41 1,153.90
Operating Profit 451.26 448.10 313.86 281.42 243.57 179.38
Interest 6.01 4.36 3.90 3.28 5.20 2.03

Gross Profit 445.25 443.74 309.96 278.14 238.37 177.35
Depreciation 79.24 67.41 60.76 43.83 36.52 34.32

Profit Before TTax
ax 366.01 376.33 249.20 234.31 201.85 143.03
Tax 115.50 84.23 65.26 38.12 35.06 17.65
Fringe Benefit tax 0.00 0.00 0.00 1.05 3.44 2.16
Deferred Tax -52.95 -4.96 -24.84 6.51 -2.43 5.57

Reported Net Profit 303.46 297.06 208.78 188.63 165.78 117.65
Extraordinary Items 0.21 -0.10 -2.67 -0.26 0.66 -9.30

Adjusted Net Profit 303.25 297.16 211.45 188.89 165.12 126.95
Adjst. below Net Profit 0.00 0.00 0.00 0.00 0.00 -1.84
P & L Balance brought forward 884.03 623.90 443.22 389.91 343.13 243.91
Statutory Appropriations 0.00 0.00 0.00 0.00 0.00 0.00
Appropriations 37.61 36.93 28.10 135.32 119.00 16.59
P & L Balance carried down 1,149.88 884.03 623.90 443.22 389.91 343.13
Dividend 6.21 6.21 6.21 6.21 6.44 6.64
Preference Dividend 0.00 0.00 0.00 0.00 0.00 0.00
Equity Dividend % 20.00 20.00 20.00 20.00 20.00 20.00
Dividend Per Share(Rs) 2.00 2.00 2.00 2.00 2.00 0.00
Earnings Per Share-Unit Curr 97.33 95.28 66.87 60.37 51.18 35.10
Earnings Per Share(Adj)-Unit Curr 0.00 0.00 0.00 0.00 0.00 0.00
Book Value-Unit Curr 424.32 329.00 235.71 170.84 144.31 122.33
Book Value(Adj)-Unit Curr 0.00 0.00 0.00 0.00 0.00 0.00
Source: http://www.indiainfoline.com/Markets/Company/Fundamentals/Profit-Loss/Cadbury-India-Ltd/500793
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Annexure IV: Cadbury India’s Notable Product Introductions

Chocolate Beverages
• Dairy Milk (1948) • Bournvita (1948)

o Dairy Milk Crackle o Bournvita 5 Star Magic
o Dairy Milk Fruit & Nut • Bournvita l’il Champs
o Dairy Milk Roast Almond • Highlights (2003)
o Dairy Milk Lite (2008) • Tang (2011)
• Gems (1968) Biscuits
• 5 Star (1969) • Oreo (2011)

o 5 Star Chomp (2014) o Oreo Choco Crème (2012)
o 5 Star Crunchy (2005) o Oreo Orange Crème
o 5 Star Fruit & Nut (2008) o Oreo Strawberry Crème
• Perk (1996) Candy
o Perk with Glucose Energy • Halls (1968, though acquired by Cadbury only in 2003)

• Celebrations (1997) • Choclairs (1971 as Eclairs; 2013 re-introduced as Choclairs)
o Celebrations Rich Dry Fruit o Choclairs Rich Brownie
• Heroes (1999) Gum
• Cadbury Bytes (2004-2005) • Bubbaloo (2007)

• Bournville Rich Cocoa (2008)
o Bournville Almond
o Bournville Hazelnut
o Bournville Raisin & Nut
• Dairy Milk Shots (2008)
o Dairy Milk Shots with Friends
• Dairy Milk Silk (Milk Chocolate) (2010)
o Dairy Milk Silk Fruit & Nut
o Dairy Milk Silk Orange Peel
o Dairy Milk Silk Roast Almond
• Temptation
• Toblerone (2012)
Compiled by the authors from “Our Brands”, http://www.mondelezindiafoods.com/in/en/Brands/index.aspx
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Annexure V : Cadbury Ads in India

S l . Product Advertisement Ye a r Sl. Product Advertisement Ye a r
No. Concept/Theme No. Concept/Theme
1 Cadbury Dairy Milk The real taste of life 1994 34 5 Star Ramesh & Suresh 2010
2 Cadbury Dairy Milk Better than words - 35 5 Star Horse TVC 2011
3 Cadbury Dairy Milk Cadbury Cyrus Shaadi 1998 36 Cadbury Gems Parrot - Masti Ke Rang 2004
4 Cadbury Dairy Milk Meetha School 2004 37 Cadbury Gems Fruity Gems - Phal Khao Masti Manao 2006
5 Cadbury Dairy Milk Meetha Neighbour 2004 38 Cadbury Gems Chote Cadbury(LUP) 2007
6 Cadbury Dairy Milk Pappu Pass Ho Gaya - Love 2005 39 Cadbury Gems Fruity 2007
7 Cadbury Dairy Milk Pappu Pass Ho Gaya - Exam 2005 40 Cadbury Gems Planet Shubru 2008
8 Cadbury Dairy Milk Radha Miss Palampur 2006 41 Cadbury Gems Gems Flying Crash 2009
9 Cadbury Dairy Milk Paanch Rupiya - Dukaan 2006 42 Cadbury Gems Chocolaty Inside 2009
10 Cadbury Dairy Milk Paanch Rupiya - CoinToss 2006 43 Cadbury Gems Ben 10 Toys 2009
11 Cadbury Dairy Milk Amitabh’s Ghost 2007 44 Cadbury Gems Surprise 2010

12 Cadbury Dairy Milk Kenya 2008 45 Cadbury Gems Raho Umarless 2012
13 Cadbury Dairy Milk CDM Shots 2008 46 Cadbury Celebrations Diwali 2004
14 Cadbury Dairy Milk Cadbury Thief 2009 47 Cadbury Celebrations Bandhan 1 2006
15 Cadbury Dairy Milk Kuch Meetha Ho Jaye - 2009 48 Cadbury Celebrations Tohfa 1 2007
16 Cadbury Dairy Milk Kuch Meetha Ho Jaye – Pay day 2009 49 Cadbury Celebrations Tohfa 2 2007
17 Cadbury Dairy Milk Kuch Meetha Ho Jaye – Postman 2009 50 Cadbury Celebrations Bandhan 2 2007
18 Cadbury Dairy Milk Shubh Aarambh – Family 2010 51 Cadbury Celebrations Kuch Mithaa Ho Jaaye 1 2009
19 Cadbury Dairy Milk Shubh Aarambh – Jeans 2010 52 Cadbury Celebrations Rakhi 2010
20 Cadbury Dairy Milk Shubh Aarambh - Bus Stop 2010 53 Cadbury Perk Trisha - Railway 2004
21 CDM Silk Conference Room 2010 54 Cadbury Perk Traffic 2004
22 CDM Silk Dance Troupe 2010 55 Cadbury Perk Qawali 2004
23 CDM Silk Staircase boy & girl 2011 56 Cadbury Perk Lecture 2004
24 Cadbury Dairy Milk In Home 1 to 5 (a series of 5 ads) 2011 57 Cadbury Perk Aerobics 2004
25 CDM Silk Cinema 2011 58 Cadbury Perk Yumraj 2005
26 Cadbury Dairy Milk Shubh Aarambh - Hostel 2011 59 Cadbury Perk Take it Lightly 2008
27 Cadbury Dairy Milk Shubh Aarambh - Child'sPlay 2011 60 Cadbury Perk Poppers 2009
28 5 Star Johnny Johnny 2004 61 Cadbury Perk Glucose Energy 2010
29 5 Star Crunchy 2006 62 Cadbury Perk Tired Son 2010
30 5 Star Jo Khaye Kho Jaye 1 2007 63 Cadbury Perk Cricket: Run Out 2011
31 5 Star Jo Khaye Kho Jaye 2 2008 64 Cadbury Perk Cricket: Not Out 2011
32 5 Star Jo Khaye Kho Jaye 3 2009 65 Cadbury Perk Cricket: Misfielding 2011
33 5 Star Fruit & Nut - Class Room 2010 66 Cadbury Perk Cricket: Half Century 2011
Source: “Downloads”, http://www.mondelezindiafoods.com/in/en/downloads/index.aspx

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MKTG-1-0035 | October 15th 2014

Cadbury India: Product Life Cycle Management

Usage permitted only within these parameters otherwise contact info@thecasecentre.org

Chocolate Market in India

Distributed by The Case Centre North America Rest of the world

Usage permitted only within these parameters otherwise contact info@thecasecentre.org

Exhibit II: Chocolate Demand in Rural India

Cadbury: Company Profile

Exhibit III: An 1885 Advertisement for Cadbury’s

Usage permitted only within these parameters otherwise contact info@thecasecentre.org

6 manufacturing facilities in Thane, Induri (Pune),

Malanpur (Gwalior), Hyderabad, Bangalore and

Cadbury India: Staying Relevant

Usage permitted only within these parameters otherwise contact info@thecasecentre.org

Usage permitted only within these parameters otherwise contact info@thecasecentre.org

Exhibit V: Cadbury’s Innovations

Dairy Milk Shots Lite Cadbury Heroes Cadbury Celebrations

Gems Highlights Cadbury Bytes Bournvita Lil Champs

Compiled by the authors

Usage permitted only within these parameters otherwise contact info@thecasecentre.org

campaigns were the ones that connected the consumer

emotionally with the company’s products and placed it

compared one of its brand – Cadbury Temptations – to

Usage permitted only within these parameters otherwise contact info@thecasecentre.org

Usage permitted only within these parameters otherwise contact info@thecasecentre.org

For Toys (There’s no age for toys), No Umar For Favorite

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A total of 7.8 million27 retail outlets sell

dominant format (Exhibit VIII). Other

Exhibit IX: Cadbury Distribution Structure

Source: “Copy of Sales & Distribution @ Cadbury”, http://prezi.com/zhof3gjd2azj/copy-of-sales-distribution-cadburys/

Exhibit X: Changing Dynamics of Rural Consumption in India

growth-in-2013.html, January 31st 2013

Cadbury’s Product Life Cycle Extension Challenges

Usage permitted only within these parameters otherwise contact info@thecasecentre.org

Usage permitted only within these parameters otherwise contact info@thecasecentre.org

Annexure I: Major Brand’s Market Shares in India

S l . Company Brands Market

12 Hindustan Unilever Ltd. Kwality and Magnum ice creams

14 Others Local brands

Compiled by the authors

Annexure II: Mondelez International, Inc. Selected Financial Data

2013 2012 2011 2010 2009

Net revenues $35,299 $35,015 $35,810 $31,489 $21,559

Net earnings attributable to Mondelçz International:

Per share, basic 1.30 0.90 0.99 0.38 0.57

Per share, diluted 1.29 0.88 0.99 0.38 0.56

Capital expenditures 1,622 1,610 1,771 1,661 1,330

Total assets 72,557 75,477 93,785 95,228 66,718

Usage permitted only within these parameters otherwise contact info@thecasecentre.org

Shares outstanding at year end 1,705 1,778 1,768 1,748 1,478

Dividends declared per share 0.54 1.00 1.16 1.16 1.16

Number of employees 107,000 110,000 126,000 127,000 97,000

Source: “Mondelez International, Inc. – Form 10-K”, http://ir.mondelezinternational.com/secfiling.cfm?filingID=1193125-14-79175&CIK=1103982, December

Annexure III: Cadbury India – Financial Highlights

Particulars Dec-12 Dec-11 Dec-10 Dec-09 Dec-08 Dec-07

Sales Turnover 4,271.61 3,521.89 2,614.90 2,045.08 1,751.24 1,441.92

Other Income 58.07 123.38 30.27 14.23 25.07 22.52