Cadbury Dairy Milk Chocolate

Company Profile
The inventor of Chocolate for eating is unknown, but in 1847, Fry &
Sons of Bristol, which merged with Cadbury Limited in 1919, sold a 'chocolate
delicieux a manger'. Many people credit this as the very first chocolate bar for
eating. John Cadbury added a similar product to his range in 1849, and by today's
standards these original chocolate bars would not be considered very palatable.
The introduction from Holland of the van Houten cocoa press to the
Cadbury Brothers Bridge Street factory in 1866 was the real breakthrough, not
only for the Cadbury business, but also for the development of eating chocolate.
Cocoa butter, extracted from the cocoa beans, is the essential ingredient for
eating chocolate. The Cadbury Brothers developed a new eating chocolate recipe,
which produced chocolate quite similar to that which we now enjoy.
At that time only plain dark chocolate could be made; this refined chocolate
was used for moulding into blocks and bars or for covering fruit-flavoured centres,
to
make
the
first
chocolate
assortments.
In 1875, a Swiss manufacturer, Daniel Peters of Vevey, produced the first milk
chocolate bar using powdered milk. The idea of combining chocolate and milk
wasn't entirely new, as the Cadbury Brothers had sold a milk chocolate drink
between 1849 and 1875 from the original recipe by Sir Hans Sloane.
Milk chocolate bars were made by Cadbury Brothers in 1897. It was a very
coarse, dry eating chocolate, made by blending milk powder with the basic
chocolate ingredients of cocoa butter, cocoa mass and sugar.
By this time Daniel Peters had perfected his recipe and was using
condensed milk rather than powdered milk to produce a chocolate with a superior
taste and texture. Swiss milk chocolate dominated the British market - a situation
the Cadbury family set out to challenge.

History of Cadbury Chocolate

INDUSTRY SCENARIO:
In confectionery, the Company has substantially grown its share of the
global confectionery market as it has extended its geographic and product
participation. This has primarily been achieved through acquisition, most notably
Wedel in Poland (1999), Hollywood in France (2000), Dandy in Scandinavia
(2002) and the acquisition of Adams (2003).

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Cadbury Dairy Milk Chocolate

At the time of acquisition, Wedel was the number one chocolate brand in Poland
and Hollywood the number two gum brand in France. Dandy was the fourth largest
gum business in the world, with strong market share positions in Scandinavia,
Switzerland and Russia.
The US$4.2bn (2.7bn) acquisition of Adams in 2003 transformed Cadbury
position in the confectionery market world-wide. With turnover of around $2
billion, a global market share of 24.7% in gum, a focus on the important
markets of North and Latin America and a strong position in the growing markets
of medicated confectionery, Adams significantly increased Cadburys
confectionery scale, product range and geographic reach.
Today, Cadbury is the second largest group in the global confectionery market
with a market share of 9.2% (source: Euromonitor 2004). This compares with a
market share of 5.3% in 2001. (Source: Euromonitor)
The Group has strong positions in many of the important confectionery
markets around the world. It has a number one or number two market share
position in 23 of the top 50 confectionery markets and a leading market share in
all of its geographic regions.
No.
1
No.
2 Total
Position
Position
Confectionery
Cadbury
17
6
23
Nestle
5
11
16
Kraft
4
5
9
Mars
2
4
6
Wrigley
3
2
5
Hershey
1
1
2

Source: Euromonitor 2004

The Companys confectionery turnover is generated from products
spanning the full range of the confectionery market - chocolate, gum and sugar. In
1997, 73% of confectionery turnover was generated by chocolate; in 2004 this
figure fell to 46%, with 28% generated by gum, and 26% by other sugar
products. In 1997, 87% of confectionery turnover was generated in EMEA and Asia
Pacific, particularly in the UK and Australia. In 2004, EMEA accounted for around
55% of confectionery turnover, Asia Pacific accounted for around 15% of
confectionery turnover and the Americas accounted for around 30% of
confectionery turnover versus just over 10% in 1997.
Today, the Company sells its confectionery products in around 190
countries. It has 71 manufacturing facilities.

MAKING OF CHOCOLATE:
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Cadbury Dairy Milk Chocolate

Cadbury makes a variety of chocolates for different purposes but
the two main types are Cadbury Dairy Milk, milk chocolate and Cadbury
Bournville plain chocolate.
The taste and texture of Cadbury chocolate are based on long
traditions of expertise in recipe and processing unique to Cadbury. Techniques are
improving all the time and new technology enables the whole process to be finely
tuned to match evolving tastes and preferences.
Production starts at the Chirk cocoa factory, where the highest
quality cocoa beans are processed to produce cocoa mass containing 55% cocoa
butter plus extracted cocoa butter, the basis for all chocolate products.
When plain chocolate is made the 'mass' goes straight to the
Bournville factory in Birmingham while the 'mass' for milk chocolate production
is taken to the Cadbury milk factory at Marlbrook, Herefordshire, in the heart of
English dairy country.
At the milk processing factory fresh liquid full cream milk is cooked with
sugar and condensed to a thick liquid. Cocoa mass is added, making a rich creamy
chocolate liquid, which is then evaporated to make milk chocolate crumb. As
these ingredients are cooked together the very special rich creamy taste of
Cadbury chocolate is produced. 95,000 tonnes of crumb a year are produced at
Marlbrook to be made into chocolate at the Cadbury chocolate factories at
Bournville, Birmingham and Somerdale, Bristol.
On arrival at the chocolate factory the crumb is pulverised by heavy
rollers and mixed with additional cocoa butter and special chocolate flavourings.
The amount of cocoa butter added depends on the consistency of the chocolate
required: thick chocolate is needed for moulded bars, while a thinner consistency
is used for assortments and covered bars.
In the UK up to 5% vegetable fat is added to
compensate for variations in cocoa butter, allowing the melting properties of
the chocolate to be controlled to a precise standard, and preserving the full taste
and texture of the chocolate. Cadbury use carefully selected vegetable oils similar
in nature to cocoa butter: African Shea, Indian Sal and Malaysian Palm oils are all
part of the recipe.
Both milk and plain chocolate, which has had sugar and cocoa butter
added to the mass before pulverising, undergo the same final special production
stages, producing the famous smoothness, gloss and snap of Cadbury chocolate.

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Cadbury Dairy Milk Chocolate

TOP MANGEMENT OF CADBURY COMPANY:

Non Executive Chairman: John Sunderland
Chief Executive Officer: Todd Stitzer
Chief Human Resource Officer: Bob Stack
Chief Financial Officer: Ken Hanna
Group Secretary: Hester Blanks
Senior Independent Non Executive (Deputy Chairman): Roger
Carr
Non Executive: Baroness Wilcox
Non Executive: Rosemary Thorne
Non Executive: Dr Wolfgang Berndt
Non Executive: Richard Braddock
Non Executive: David Thompson
Non Executive: Lord Patten

COMMITMENT OF CADBURY TOWARDS CONSUMERS:

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Cadbury Dairy Milk Chocolate

The Cadbury is totally committed towards the Consumers. It always strives
to satisfy each and every segment of the Consumers. It tries to produce the
Products which meet the needs of the Consumers.
The Cadburys products are primarily impulse products and are sold to the
consumer through many different outlets, ranging from kiosk to petrol station and
fountain equipment at leisure, food and entertainment venues.
The Company has a variety of programmes in place to ensure that
consumer insights are built into its commercial strategy. In 2004, the Group put in
place a new approach to consumer segmentation and commercial strategy
development, based on rigorous and extensive consumer research in its key
confectionery markets.

MARKET PLACE OF CADBURY:

The Company is privileged to live in what is an increasingly democratic
world with the freedom to choose the way, they live, the way they work and what
they consume. Freedom of choice is a vital factor in the fast moving and highly
competitive consumer goods industry in which Cadbury operates. The products
are purchased daily in their millions around the world and unless the Company
consistently offers quality, value and satisfaction the consumers will switch
allegiance.
The Companys confectionery offers energy, taste, rewards and gift
opportunities. Variety is important. In business freedom of choice means not only
the freedom to seek new combinations of old favourites, but also new
experiences.
The brands become old friends with whom the consumers have special
relationships. This makes protection of their reputation an essential ingredient of
the Companys long term success. The Company is also constantly seeking new
and innovative ways to satisfy the consumer's willingness to try new things.
Consequently whenever it develops a new product they have to build consumer
awareness through advertising and promotion. Consumers want to be informed,
whether to be reminded of their feelings about established favourites or to be told
of new delights available for their delectation!

RANGE OF CHOCOLATES IN CADBURYS:

Chocolate Bars:

Cherry Ripe
Crunchie
Flake
Picnic
Time Out
Twirl
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New BOOST
FRYS Turkish Delight
Boxed Chocolate:

Favourites
Milk Tray
Red Tulip

Cadbury Dairy Milk Chocolate

Roses
Blocks of Chocolate:

Breakaway
Caramello
Cherry Ripe Block
Chocolate Mousse
Dairy Milk
Dream
Fruit & Nut
Hazel Nut
Marble
Peppermint Snack
Top Deck
Kids Confectionery:

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Cadbury
Caramello
Koala
Cadbury
Freddo
Cadbury Furry Friends
Cadbury Yowie
Sugar Confectionery:

Chupa Chups
Chocolate Eclairs
Clinkers
Columbines
Jelly Babies
Marshmallows
Wine Gums
Others:

Chocolate Velvet

FINDINGS AND CONCLUSIONS:

The findings and conclusions of this research project are

Dairy Milk is most preferred chocolate.

Respondents opine that Dairy Milk is the Market Leader and this trend may
continue even in future.
Most of the Consumers are particular about brand while purchasing a
Chocolate.
Consumers of Dairy Milk are more compared to other brands of Chocolates.
Taste of Dairy Milk influence the Consumers besides, brand image, quality,
price, availability and brand ambassador.
Most of the Consumers are influenced by advertisements.
Television media is highly preferred for advertising.
Most of the respondents opine that Dairy Milks current advertisements and
package trends are excellent and satisfactory respectively.
Retail outlets play a vital role in distribution of Dairy Milk.
Maximum numbers of respondents are fully satisfied in all aspects.

SUGGESTIONS:
Most of the respondents perception is that they dont need any changes in Dairy
Milk. But few of the respondents have suggested certain changes to increase the
sales and consumption of the Chocolate.
The suggestions are

28% of the respondents feel that the price is high and they suggested
reduction of price by maintaining same quantity.
24% of the respondents have suggested the introduction of more flavors.
Addition of Dry Fruits to the Chocolate is suggested by 20% of the
respondents.
15% of the Respondents suggested making the package more attractive.
Out of 100 respondents, 5% suggest to improve the availability of the
product in all the retail outlets and remote places.
12% of the respondents have suggested an increase in quantity for same
price.
Improvement in the quality and taste is suggested by 8% of the respondents.
Respondents also suggested the Company to improve the quality of the
Chocolate to avoid its melting at room temperature.