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Cadbury

This document discusses Cadbury, a British confectionery company. It provides details about Cadbury's history, locations, brands, and operations in India. Cadbury India operates in five categories and has manufacturing facilities across India. The document also discusses Cadbury's salesforce management practices like recruitment, sales hierarchy, training, motivation, and evaluation of salespeople. It describes Cadbury's distribution network and channels, including direct and indirect retailers as well as distributors and intermediaries. The document outlines some potential conflicts between distribution channels and how Cadbury resolves them.

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0% found this document useful (0 votes)
615 views10 pages

Cadbury

This document discusses Cadbury, a British confectionery company. It provides details about Cadbury's history, locations, brands, and operations in India. Cadbury India operates in five categories and has manufacturing facilities across India. The document also discusses Cadbury's salesforce management practices like recruitment, sales hierarchy, training, motivation, and evaluation of salespeople. It describes Cadbury's distribution network and channels, including direct and indirect retailers as well as distributors and intermediaries. The document outlines some potential conflicts between distribution channels and how Cadbury resolves them.

Uploaded by

mickey singh
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Cadbury, formerly Cadbury's and Cadbury Schweppes, is a British multinational confectionery

company wholly owned by Mondelez International (originally Kraft Foods) since 2010. It is the
second largest confectionery brand in the world after Mars. Cadbury is internationally
headquartered in Uxbridge, west London, and operates in more than 50 countries worldwide.
Cadbury was established in Birmingham, England in 1824, by John Cadbury, a Quaker who sold
tea, coffee and drinking chocolate.
In 1948, Cadbury India began its operations in India by importing chocolates. On 19 July 1948,
Cadbury was incorporated in India. It now has manufacturing facilities in Thane, Induri (Pune)
and Malanpur (Gwalior), Hyderabad, Bangalore and Baddi (Himachal Pradesh) and sales offices
in New Delhi, Mumbai, Kolkata and Chennai. The corporate head office is in Mumbai.
Currently, Cadbury India operates in five categories – Chocolate confectionery, Beverages,
Biscuits, Gum and Candy. Its products include Cadbury Dairy Milk, Dairy Milk Silk, Bournville,
5-Star, Temptations, Perk, Eclairs, Bournvita, Celebrations, Gems, Bubbaloo, Cadbury Dairy
Milk Shots, Toblerone, Halls, Bilkul, Tang, and Oreo.
SALESFORCE MANAGEMENT
Sales management is the process of developing a sales force, coordinating sales operations, and
implementing sales techniques that allow a business to consistently hit, and even surpass, its
sales targets.
It starts with helping develop the right products, setting the right prices and distributing in the
right places, and continues with marketing messaging, customer service and other selling
efforts, according to Reference for Business.
RECRUIYMENT AT CADBURY
Recruitment in CADBURY is a very fair and transparent process with adequate opportunities to
look for suitable candidates internally as well as from outside. Applicants are generally invited
on the basis of specific advertisements in newspapers and websites. A Committee of officers
called the Central Recruitment Committee handles the entire recruitment process comprising
screening of applications, preliminary short-listing, interviews and final selection.
Every attempt is made to the selection process as objective as possible by incorporating tests of
competence. In some cases, outside consultants are retained- All decisions of the recruitment committee
are recorded in respect of each candidate. Candidates are informed of their short- listing and selection
immediately after the interview or at the earliest thereafter.

THE PROCESS OF RECRUITMENT IN CADBURY LTD.


1. Identify vacancy
2. Prepare job description and person specification
3. Advertising the vacancy
4. Managing the response
5. Short- listing
6. Arrange interview
Sales Hierarchy of the Company:
DIRECTOR
BRANCH MANAGER
Branch sales manager
Area Sales Manager
Sales officer/senior sales officer
Remote device sales manager
SALESFORCE TRAINING
Cadbury Performance Management system incorporates a process called competency
Assessment and Training and Developmental needs where in appraisers are specifically called
upon to identify and assess training needs of employees at specific intervals that do not coincide
with performance Appraisals. This is so that training needs can be assessed objectively.
SalesForce motivation
Cadburys motivate their sales force by opportunities' for employees to grow within the business,
Such as promotions into management and higher. They also like to make their employees feel
involved in the running of the business by allowing them contribute their ideas in how they think
the business and achieve more.
Employee welfare receives prime attention at CADBURY. We have several schemes for general
welfare of sale force and their families. These schemes are :

❖ Education

❖ Healthcare

❖ Retirement benefits

❖ Loans facilities (financial assistance)

❖ Recreation facilities

❖ Sale force satisfaction survey


Salesforce size

❖ Cadbury empowers people to snack right in over 150 countries around the world. We're
leading the future of chocolate and beverage with iconic global and local brands.
❖ We are one of the largest snack companies in the world with global net revenues of $25.9
billion and net earnings of $3.4 billion in 2018.

❖ We have operations in more than 80 countries and employ around 80,000 in our factories,
offices, research & development facilities and distribution activities around the world.
Salesforce evaluation
Cadbury evaluation process:-
● Objective setting - this would be the area where long term objectives would be set for the
employee and are normally stated in a formal Key Performance Indicator/Index (KPI)
and is normally set by the immediate manager or by the management team.
● Ongoing review of objectives - this would be the area where KPI's are reviewed
periodically either every 3 months or quarterly to ensure that the employee would be able
to meet the said long term objectives.
● The development of personal improvement plans linked to training and development -
this area is to ascertain the targeted development that the employees wish to go through
and to allow personal development to takes place to help improve productivity of the
employee.
● Formal appraisal with feedback - this area is to review the progress of the employee
against personal skills development and personal experimentation in trying out new
tutoring systems or skills. Also to ascertain the level of self improvement the employee
had managed to gain throughout the period of the objective setting.
● Pay review - this area would allow the management to see how best fit the employee
would be rewarded for the effort that they had shown over the period of the appraisal.
● A competence-based organizational capability review - this area would be more to
organizational strategies where the organization would be able to place resources where
they are more suitable to able productivity to be increased.
SELECTION OF CHANNEL PARTNER
BUSINESS CAPACITY AND SALESMANSHIP
CREDITWORTHINESS, FINANCIAL AND SOCIAL STATUS
EXPERTISE AND EXPERIENCE
RELATION WITH CUSTOMERS
MARKET SEGMENT
PRODUCT CHANNEL FIT
QUALIFICATION
TRAINING AND SUPPORT REQUIRED

Direct vs indirect
direct retailers: covered by the distributor or super stockist of the company
are visited directly by the representative for the distributor
get benefits and are eligible for the schemes undertaken by the companies including cash
discounts CD as all the sales to them are on cash basis.
Indirect retailers: ones which are not on the coverage list of the distributor
created by the wholesaler
for the base business category the number of such outlets is very low but for mass market
products the number is very high.
exit more in class d and class E places
benefits that are these retail outlet get is that they do not need to pay in cash always. can always
get sales in credit
Intermediary
Distributor and super stockiest:
 point of primary sales
 have their own sales people
retailers:
 come in direct contact with customer
 Responsible for converting secondary sales to tertiary sales.
 more than 30 lakh retail stores being covered throughout the country
Cadbury distribution network

❖ Cadbury are sold directly to wholesaler and retailer. Cadbury distributor network used to
encompass 2100 distributors and 450,000 retailers.

❖ Cadbury follows diverse distribution channel in its distribution network. The more
diverse distribution channel become the less bargaining power of a single distributor will
have.

❖ This positively affect Cadbury diverse distribution channel has a significant impact, so an
analyst should put more weight into it. Divers distribution channel is a difficult
qualitative factor to defend, so competing Institute will have an easy time overcoming it.
Distributor supply chain

Channel conflict
 at best, channel conflict can result in tension among trading partners
 at worst, retail wholesalers and even the internal Salesforce can retaliate using such
tactics
 as reducing the manufacturer's retail shelf space decreasing marketing support for a
manufacturer's product
 providing additional shelf space of marketing support for a competing brand
 promoting the retailers or wholesalers own private label brand
 dropping the manufacturer's product line
CONFLICTS
no major contracts in Cadbury India
lack of multi-channel in case of Indian subsidiary
no sales through electronic means in India
minor tussle exists between two retail types organised vs unorganised retail stores
reasons
benefit given to organise store is term of better margin and bargaining power of those diamond
store.
resolving conflict
proper measures by compensating traditional partner by providing benefit in terms of
 visi-coolers
 discounts
 competition and
 repurchase cash discount
Cadbury has a far been very successful in striking the equilibrium and keeping the interest of
both the types of partners
Motivation
monetary margins / profit
 visi-coolers: retail outlets are given Cadbury visi-cooler to stocks the chocolates.
Available to the shopkeepers on various schemes and agreement like EMI cost sharing
 discounts: at different times of the year the company gives discount to the outlet on
purchase. Retailers get cash discount of around 2% for cash sales.
 Competition: various contest are run for the retailers in for decorating the shop with the
banners hangers or other below the line promotion the company gets exposure for its
product and the opportunity to satisfy the retailers.
 Repurchase: expired a spot goods by no fault of the partners there is provision to replace
the goods. this value proposition had been introduced by the company only after the
incident of worn infestation as a part of project vishwa .this is yet another way of
establishment trust among the intermediaries
Monetary Benefits
General Trade distributor margin is around 4.75% and 1% is actively based(completion of
monthly sales target)
Modern Trade distributor margin is around 4.5% and 0.5%
Super stockist margin is around 2% and 1% of market value
Non-Monetary Benefits
UDAAN: Foreign trips to super stockists based on performance

Distributor / super stockist


Analysis of distributor and super stockiest:
 exclusive partner: Cadbury India tries to look for distributors
The operational decisions in Distribution Management include;
·       Distribution system: Inbound Logistics and Outbound logistics
·       Geographical distribution
·       Distribution Channel
·       Selection of Distributors / criteria to be a channel member
·       Distribution Margin
·       Compensation and Incentives
·       Channel Evaluation
·       Channel conflicts
Inbound and Outbound logistics (Cadbury): Inbound means internal and outbound means
external logistic. In Cadbury inbound is transferring raw material to different station for making
finished product and Outbound is transporting the finished goods to warehouse and factories and
to retailer and store and finally to customers.
Geographical Distribution of Cadbury:  Cadbury India began its operations in India by
importing chocolates. Cadbury was incorporated in India. It now has manufacturing facilities
in Thane, Indri (Pune) and Malanpur (Gwalior), Hyderabad, Bangalore and Baddi (Himachal
Pradesh) and sales offices in New Delhi, Mumbai, Kolkata and Chennai. The corporate head
office is in Mumbai.
Distribution channel Cadbury:  
The distribution channel of Cadbury starts with factory from there the stocks are sent to the
carrying & forwarding agent and then it get distributed to distributors and super – stockiest.
From the distributor it goes to wholesaler and then to retailers and from retailers to customers.
From super – stockiest it goes to re-distributors and then to retailers and then finally to
customers.
Selection of Distributors / criteria to be a channel member at Cadbury: Cadbury are sold
directly to wholesaler and retailer. Cadbury distributor network used to encompass 2100
distributors and 450,000 retailers.
❖    Cadbury follows  diverse distribution channel in its distribution network. The more
diverse distribution channel become the less bargaining power of a single distributor will
have.
❖    This positively affect Cadbury diverse distribution channel has a significant impact, so
an analyst should put more weight into it. Diver’s distribution channel is a difficult
qualitative factor to defend, so competing Institute will have an easy time overcoming it.
Ø  Distribution Margin at : general trade distribution margin is around 4.75%, and 1% is
activity based (completion of monthly sales target)
                      Modern trade distribution margin is around 4.5% and 0.5%
                      Super stock margin is around 2% and 1% of market value.
Motivation
 monetary margins / profit
·      visi-coolers: retail outlets are given Cadbury  visi-cooler to stocks the chocolates.  Available to
the shopkeepers on various schemes and agreement like EMI cost sharing
·     discounts: at different times of the year the company gives discount to the outlet on purchase.
Retailers get cash discount of around 2% for cash sales.
·      Competition: various contest are run for the retailers in for decorating the shop with the
banners hangers or other below the line promotion the company gets exposure for its product and
the opportunity to satisfy the retailers.
·        Repurchase: expired a spot goods by no fault of the partners there is provision to replace the
goods. this value proposition had been introduced by the company only after the incident of worn
infestation as a part of project vishwa .this is yet another way of establishment trust among the
intermediaries

 Ø  Compensation & Incentive at Cadbury: The distributors are given monetary benefits such
as extra margin of 2-3 %. Free gifts are also provided on achieving targets with monetary benefit.
Along with this certificate of acknowledgement are also provided.
Ø  Channel Evaluation at Cadbury: At Cadbury the channel evaluation is done and it is being
assured that there is simplified and effective distribution network, each product is available at
right cost and right time and accurate quantity.
Ø  Channel Conflict at Cadbury: At Cadbury the channel conflict arises due to Distributor
supplying goods directly to the retailer without the intervention of wholesaler and also due to
Account of invasion of another’s sales area by a company’s sales officer under pressure of sales
target.
 

 
 
 that are exclusive to it .The company officials feel that if that does not happen then the
partner might not be in position to do justice to Cadbury .But in a small places, especially
rural areas it is not possible so the super stockist appointed there are the ones that do not
carry brand of competitors.
 proper storing capacity: after the one infestation incident, the company has made a point
to go in for the partners that can provide proper hygienic storing to the product.
 well defined territory : the area of the distributor are geographically well-defined so that
no clash of interest take place.
 Cadbury the chocolate leader aims to target kids between the age group of 5 to 10 who
consume chocolate the most. Though it does not have any specific segmentation targets
therefore Cadbury chocolates are eaten by people of all ages, sexes, cultures, educational
backgrounds, regions and on all occasions.
 Moving beyond 360‐degree feedback, as part of its leadership development programme,
Cadbury introduced an additional round of feedback i.e. – “720-degree” which includes
input from a leader’s family and friends, as well as business colleagues including direct
reports. It proved an integral part of Cadbury’s transformational leadership programme,
which also saw leaders getting involved in long-term charity projects.

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