Cadbury India: Vision, Mission, Values And Organizational Targets

Introduction to Cadbury India

The speculation to widen new brands and achieving ownership for recognized products are on the vein. The continuous focus on cost and efficiency with the divergent interest to reconfigure the circulation and manufacturing is exactly revealed in their operations

Cadbury was originated before 200 years when John Cadbury has opened his shop in Birmingham selling cocoa and chocolates with other glossary. It started its operation in India in 1948 by importing chocolates and distributing in the Indian market. Cadbury Indiais a company of food products which produces chocolates, beverages, confectionery, candy and snacks. Cadbury is the market leader in India in chocolate industry with 70% of market share. The well-known Cadbury products are Dairy Milk, 5 Star, Perk, Gems, Bournvita and Temptations.

1.1 Vision:

The vision statement of Cadbury is “Our vision is to be the biggest and the best confectionary company in the world”.

1.2 Mission:

The mission statement is “To deliver superior shareholder returns”. The top priority shows to capability, growth and efficiency. The concentration of organizational procedure is delivered on premium global and regional brands. The speculation to widen new brands and achieving ownership for recognized products are on the vein. The continuous focus on cost and efficiency with the divergent interest to reconfigure the circulation and manufacturing is exactly revealed in their operations. The organizational objective reveals their efficiency on guarantee providedto investors and customers. It has reinforced them to a pure-play confectionary business.

The business operations of Cadbury’s are highly value oriented which concentrates on their performance, responsibility, integrity, respect and quality. The local and global legal and cultural standards of Cadbury are revealed in their basic business principles and code of ethics conduct. They are more considerable on their demographic locations. Their leadership style is aggressive which focuses on competitive domination over competitors and there are more passionate at the best. The leadership style concentrates on developing human resources, accountability, values, flexibility, innovation, motivation and collaboration which help to develop their business.

The Cadbury’s research and development concentrates on innovative ideas through insights and foresights of customers and trends. The millions of customer’s feedback are considered as an input for innovations. They tend to apprehend the similarities of various market operations. During innovation their operations are always science centered. The implementation of brand new communication techniques helps to interact to customers with their favorite brands. The incorporation of applying everything in innovative formats, new recipe using new technology are pursue in the growth. The innovative communication campaigns are performed to organize sponsorship and marketing programs.

1.3 Purpose and Value:

The core purpose of Cadbury is to “Create brands that people love”. The values of Cadbury are performance, quality, respect, integrity and responsibility.

• Performance – they are obsessive about winning. They compete in a tough way but follow ethical values. They are organized to take risks and perform faster.
• Quality – safety and quality are ensured at the heart of their all activities.
• Respect – they act genuinely for their businesses and colleagues. They listen, understand and respond. They are friendly, open and welcoming.
• Integrity – they have their own principles which are clear and they do it what they say.
• Responsibility – they are socially, economically and environmentally responsible for the impact.

This is the core purpose and value of Cadbury India to make business, partners and communities better for the future.

Organizational Directions:

Cadbury India has a strong belief in endorsing cultural diversity and equality along with the employees and it is followed throughout the organization. It has effectively broken down the barriers existed in communication between the employees and the management and thereby opens up two way communication channel which flows in both the directions. Managers are always approachable by the employees and they offer their complete support and motivation to employees in order to complete their job. The work culture at Cadbury India is not only performance driven but also integrates workplace fun. People are proud to be a part of globally admired company and to be connected with one of the most popular brands in India.

Vision and Mission Statement

“Passion for People” concept in Cadbury India is a prearranged program which assists to prepare line managers to be efficient and impactful people managers. It focuses on confining the nature of work culture which helps to create right climate, retains what is unique, team motivation and achieving greater results. “Purple star program” is an entry level leaders program which assists in training fresh people in organization. The rising competition in the fast moving consumer goods market has resulted in a mandatory committed workforce. Cadbury India believes that employees have the enthusiasm, commitment and force to achieve the goal.

1.4 Organizational Targets:

The current market size of Indian chocolate industry is more than a billion dollars. Cadbury India Limited holds almost two-third (70%) of market share – far ahead of its competitors Nestle and Amul in chocolate segment.

The gross profit was up 21.3% to Rs. 42.7 billion from Rs. 35.2 billion previously. The net profit at Rs. 40.6 billion were up 20.8%. The gross profits are largely due to the pickup of sales in chocolates and wafer biscuits of Rs. 32.4 billion, malted foods of Rs. 6.42 billion, biscuits of Rs. 2.12 billion and hard boiled confectionary and gums comes into balance.

The initial market value of Cadbury India was Rs. 1743 per equity share and later it was revised upwards to Rs. 2014.50 per equity share.

1.5 Marketing Objectives:

Short Term:

• To position itself as an all-time favorite chocolate for all groups of people irrespective of age, gender and class.
• To make the sweets affordable with several variants.

Long Term:

• Increasing the sales profit of Cadbury Diary Milk (CDM)
• Positioning the Cadbury Diary Milk as an alternative for traditional Indian sweets in order to grasp the rich tradition of Indian people linked with desserts.
• Retaining the market share throughout the years by product innovation in the areas of product development and packaging.

2.1 Competitive Analysis:

Nowadays, the Indian chocolate market is getting larger and better. Though there are imported varieties on one hand, companies like Cadbury establish their own products in the Indian market with international standards. In the early 90’s the market share of Cadbury was 80% but after the entry of Nestle into Indian chocolate market the market share of Cadbury has been reduced to 70%. Nestle holds 15% of market share and the other 15% by Amul and other companies. There always exist a high competition between Cadbury and Nestle where Nestle is trying to have tough fight with Cadbury (Indian Mirror, 2011).

Nestle has been linked with India since 1912. They started their first manufacturing unit in India in 1961 and they opened up 7 manufacturing units in India till 2006. Initially their products were beverages, nutrition, milk products and cooking aids. Later, they launched premium products such Bar One, Crunch, Milky Bar and other Milk Chocolates against Cadbury’s 5 star and Diary Milk (Nestle India Ltd, 2012).

Kit Kat was established in India in 1995 and within the short period of its launching time it became popular and it was based on Nestlé’s target. Cadbury has launched its Perk against the competition of Kit Kat in order to retain its brand. Kit Kat and Perk was a new product segment in wafer chocolates as anytime snacks.

Amul’s milk chocolate, crunch, Fruits N Nuts and Badam Bar were launched by Gujarat Cooperative Milk Marketing Federation (GCMMF, 1974). But it failed to concentrate on international market and was not able to increase its market shares (GCMMF, 2001).

Purpose and Value

3.1 Codes of Practice:

Codes of practice are recognized as set of recommended or ideal procedures, accomplishment or organizational structures to be applied in a specified situation. It endow with the details on how to attain the standards essential for work health and safety (WHS).

Codes of practice of Cadbury India Limited addresses the financial aspects of corporate governance, boards of director’s rights and their roles, review the structure, efficiency and accountability of shareholders and auditors. Itaddresses the various aspects of accountancy profession and provides reliable recommendations.

3.2 Cultural Expectations and Influences:

Cultural expectations are defined as the clients or a group of clients trying to find out assistance from the organization, both the employees and clients embrace few expectations of what is needed in the future and what will be provided. Misunderstandings might occur when the employees or clients are not clarified. The expectations might be based on demographics, socio-economic, psychographic and stages of life cycle.

Cultural influences are defined as historical, geographical and domestic factors that impacts evaluation and interference processes. Cultural influences that are significant to the client might include the client’s racial identification, cultural bias, immigration history and status.

Cadbury India has a strong belief in enhancing the cultural diversity and equality among the employees and it is followed throughout the organization.

3.3 Environmental Issues:

It is defined as any change or modification to the environment, whether unfavorable or favorable, resulting from the activities of company, products or services.

Cadbury India faced a media attack and sales decline due to the reports of worms in chocolate bars. Though the problem was on retail merchants, the company was in a position to solve the crisis, and fast. Company faced a great challenge to deal with the public opinion crisis due to their lack of experience. In order to rebuild the consumer trust and confidence in product quality, Cadbury took immediate step to improve their packaging to prevent from further infestation. They underwent a comprehensive media campaign which promoted trust and transparency (Epa.gov, 2011).

3.4 Ethical Principles:

Ethics are defined as a set of moral principles that directs the behavior of an individual. It reflects on the belief about right, wrong, fair, unfair, good and bad in terms of human behavior.

Cadbury India has a strong belief that good ethics and business go together naturally to produce long term results for the stakeholders. It does business in ethical way to safeguard and promote the company and also it does business with the people and communities that have good reputation. The programs such as “Cadbury Cocoa Partnership” and “Purple Goes Green” are their ethical standard programs (Hardeep & Bikram, 2012).

3.5 Health and Safety – the rules and procedures proposed to inhibit any accidents or injuries in workplaces or public environments.

Each and every employeeis made to work under healthy and safety environment by providing necessary precautions such as gloves, face masks and other health and safety accessories.

3.6 Legislation – it is defined as the process of generating or endorsing laws.

Organizational Directions

The legislation at Cadbury India is endorsed by the Food Safety Legislation and it is followed as per the legislation without any violations.

3.7 Policies and Guidelines – a set of policies are principles, rules and guidelines formed or implemented by the company to attain its long term goals or objectives and naturally announced in a booklet which is accessible widely by everyone.

Cadbury’s policies and guidelines are published every year and it is revised whenever the additional changes are implemented in the policies and guidelines.

3.8 Regulations –it is defined as a rule or instruction made and maintained by the authorities. It is also an action or progression of regulation.

The activities at Cadbury India are ensured that it is followed by the rules and regulations that are compiled by food safety legislation and no harm is applicable to any of the individuals, public and communities.

3.9 Security and Privacy Issues – it is defined as the principle of maintaining secure and secret from other individuals, information provided by or about an individual in the course of a professional relationship.

At Cadbury India they respect the security and privacy of personal information about individuals. They are more secured in collecting, using, disclosing and managing personal information about the individuals (Grant & Bruce, 2002).

3.10 Social Responsibility –it is defined as an obligation of company to be responsible to all of its stakeholders in all of its functions and operations.

Cadbury India has taken several initiatives for the benefits of society. There are various activities involved by Cadbury India and one of the most important corporate social responsibilities was addressing some of the problems in Baddi Sandholi Village. Their activities have benefited 400 families in Sandholi village and about 70 school going children.

3.11 Societal Expectations – it is defined as an adopted social norm for organizations and individuals, and for society as a whole, about what people have to do.

Cadbury India is economically, legally, ethically and philanthropically responsible to society. Cadbury India is profitable every year, maximizes sales, minimizes costs, obey laws and regulations, do what is right and fair and act as good corporate company. They have developed a practice of public conversation and joint action for meaningful activities.

Marketing objectives are important within a marketing strategy that creates attention among clients and also helps to grasp the attention of public to keep the business surviving. It helps to set out what a firm wants to achieve from the activities of marketing. The marketing objectives for Cadbury India have been developed and they are as follows:

• Survival of Brand–it is one of the important objectives for any businesses. Lack of survival means no today and no future. The business circumstances should be considered important for survival of brand. The circumstances can be of early stage, difficult stage and take-over stage.
• Maximization of profit – it is often considered to be the reason for the existence of firm and to be the significant objective in practices. According to the hierarchy of objectives when the firm’s survival is threatened, profit maximization restores the financial health of the firm.
• Sales Growth – it refers the business goal to become larger, stronger and more competitive. Sales growth is important for survival, launch of new products, to reduce businesses risk and to have low costs.
• Diversification –it is often considered as a protection against downturns in a single industry or method used to grow the business. It does not eliminate risks; however it is just a tool which minimizes the risk in the investments. It reduces the dependence on one product and eliminates the business risks.
• Improving Brand Image –Branding touches and interconnect with all the business operations such as marketing, production and sales. The ideal customers identifies that they are being persuaded and they know what to expect from the products or services. It creates positive thought in the minds of customers.

These are the primary marketing objectives which are capable, ethical, legal, measurable, observable and attainable for the firm to achieve.

5.1 Identifying Risks:

A strong marketing objective is a core component for the success of an organization. But communicating a message to customers becomes more mystifying and difficult due to the barriers that occur behind the scenes during planning and implementation of marketing objectives. Following are the barriers that affect the marketing objective of an organization:

• Dilemma between strategy and business tactics
• Quarantining the functions of marketing from operations
• Dilemma between functions and concepts of marketing
• Organizational barriers
• Absence of exhaustive analysis
• Dilemma between procedure and input
• Absence of knowledge and skills
• Absence of efficient approach to marketing planning
• Failure to prioritize the marketing objectives
• Aggressive corporate cultures

5.2 Managing Contingencies:

It is essential to overcome the barriers and implement the marketing objectives. Following methods helps to overcome the barriers and manages to run the process efficiently.

• Applying rational approach to execution – it is essential for the managers to use logical model to direct the execution decisions and actions. Logical model assist the managers what steps to take and when to take.
• Need for integration – integration are absolutely important for the efficiency or market-related goals of the organization. People in various functions frequently view the world differently: R&D, Production and sales. Coordinating all these functions to achieve common goal is difficult. Still, it is important to overcome the barriers.
• Explaining responsibilities – it is difficult for the managers to coordinate the team unless their responsibilities and accountabilities are clear. Applying responsibility matrix or simple tool can help to define the tasks and activities and people responsible for the tasks.
• Creating incentives and controls efficiently –incentives and controls are important for the successful implementation of marketing objectives. Motivation and valid feedback control play an important part in the implementation effort
• Managing the change – making the changes that are essential for process execution and overcoming the resistance is the final step in the process. Managing change is a complex process, but successful execution depends on it.

These are the significant considerations in risk management strategy. Though it’s challenging, it is important to focus on these strategies for successful implementation.

6.1 Strength:

• Dairy milk is the major strength of Cadbury and it is the most consumed chocolate in India irrespective of age, gender and class.
• Dairy milk has well-adjusted itself to Indian custom
• Popular Indian models like Cyrus Brocha, Preety Zinta and Amitabh Bachan has managed to portray a young and sporty image which has ended in converting buyers from other brands
• Customers have a positive perception about the quality of product
• Dairy milk has repositioned itself in all the categories.

6.2 Weaknesses:

• Lack of penetration in the rural market has made people to ignore it as a high end product
• It has been relatively priced high product which is turning the price conscious customers away
• People avoid having the chocolate thinking about the ingredients such as egg.

6.3 Opportunities:

• The rise of chocolate market has seen a greatest increase (almost 30%) in the recent times
• There exist a more growth potential for the chocolates since the huge population in India even today does not consume chocolates can be converted as new users

6.4 Threats:

• There exist no brand loyalty in the chocolate market and consumers might shift to a new product since there is availability of more chocolates in the Indian market
• New chocolates are launched and existing brands also introduces new variant to add up to an already overcrowded market.
• Increase in the fuel cost has led to the increase in transportation and distribution cost. Similarly, cost of procurement and distribution is high as well. Constant rise in the cost has led to increase in price of product which creates a gap for other companies to enter.
• Rise of health consciousness prefer people to avoid chocolates. Similarly, parents avoid chocolates to children due to the adverse effects
• Decline in the importance of festivals has reduced the purchase of chocolates during festivals
• Increased demand and growing purchasing power has reduced the value of chocolates

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