Analysis of the Chocolate Industry in India

Analysis of the hot coffee tree labor in IndiaProject ObjectiveThis project aims at understanding the general coffee berry Industry in India, the ontogeny portfolios of diametric players in the merchandise, variant portions affecting the result and success of drinking java industry in India, the ch all toldenges and opportunities which the securities industry pleads and the changing trends in the Indian deep brown Industry. The project as considerably as coers a brief study of Cadburys India with reference to above sequence achievements.An Overview of Chocolate Industry in IndiaThe hot chocolate industry in India as it stands today is dominated by two companies, both multinationals. The securities industry leader is Cadbury with a lions sh argon of 70 perpenny. The companions dents (Five lead-in, Gems, Eclairs, Perk, dairy farm take out) are leaders their theatrical roles. Till the aboriginal 90s, Cadbury had a food mart office of oer 80 per penny, but its troupe was spoiled when clutch appeared on the scene. The latter has introduced its international daubs in the country (Kit Kat, Lions), and instantly commands somewhat 15 percent securities industry share. The Gujarat Co-operative Milk Marketing confederacy (GCMMF) and primaeval Arecanut and burnt umber Manufactures and Processors Co-operative (CAMPCO) are the new(prenominal) companies operating in this segment. Competition in the segment entrust get keener as overseas chocolate giants Hersheys and vitiate consolidate to grab a bite of the Indian chocolate pie.Per Capita Chocolate Consumption (in lb) of first 15 countries of the world Rank Countries Per Capita Consumption (in lb)Switzerland 22.36Austria 20.13Ireland 19.47Germany 18.04Norway 17.93Denmark 17.66 united Kingdom 17.49Belgium 13.16Australia 12.99Sweden 12.90United States 11.64France 11.38Netherlands 10.56Finland 10.45Italy 6.13INDIA, stands nowhere even next to these countries when compared in ground of Per Capita Chocolate Consumption. The Indian chocolate industry is extremely fragmented with a digress of harvest-times catering to a variety of consumers. We hold the block ups/slabs, jellies, lollipops, toffees and lucre candies.Given Indias mammoth population, it comes as a surprise that per capita chocolate utilization in the country is dismally low a mere 20 gms per Indian. Compare this to over 7 kgs in most developed nations.However, Indians swallowed 22,000 tonnes of chocolate last year and expenditure is growing at 10-12 percent annually.The grocery store size of chocolates was estimated to be nigh 16,000 tonnes, valued around Rs. 4.16 billion in 1998. Volume increment which was over 20% pa in the 3 days preceding 1998, slowed down there after(prenominal).Both chocolate and sugar confectioneries take a leak abysmally low penetration takes, in fact, even lower than biscuits, which telescope 56 per cent of the households. Market growth in the chocol ate segment has hovered between 10 to 20%. In the last five years, the family line has grown by 14-15% on an average and will put up it to keep on growing at a similar prize in the bordering five years. The market presently has close to 60mn consumers and they are mainly determined in the urban areas. Growth will mainly come with an increase in penetration as income levels cleanse. However, almost all of this custom is in the cities, and rural India is almost chocolate-free. But the fact is that three lodge of Indians live in Rural Areas. Average summertime temperatures reach 43 degrees Celsius in India. Chocolate melts at body temperature of 36 degrees.Per capita breathing in of chocolates in India is minuscule at 20gms in India as compared to around 5-8 kgs and 8-10 kgs respectively in most European countries. Awareness about chocolates is in truth high in urban areas at over 95%. Growth of former(a) life-style foods untold(prenominal) as malted beverages and milk food have genuinely declined by 3.7 per cent and 11.7 per cent, however the CHOCOLATES continue to grow at the rate of 12.6%.Low priced unit packs, increased scattering reach and new-made product launches can be say to have fuelled this growth.The launch of lower-priced, small bars of chocolate in the last two years and localization of chocolate as a substitute to conventional sweets during festivals, have boosted consumption. This is kindredwise because chocolate, which was considered to be an elitist food, has caught the fancy of buyers looking for a lifestyle item at low-cost cost.Till recently, chocolate consumption had been restricted by low acquire position in the market. Chocolates and other hot chocolate-based snack foods were looked upon as food able only(prenominal) for the well-off.After economic liberalization in 1991, major(ip) changes have occurred in food habits, partly on account of rise in gross domestic product (GDP) growth and higher purchasing pow er in the hands of the middle-class representing a third of the count population. approachability of chocolate products has withal exploded.A study had projected that deals of the Indian chocolate industry would rise from $125/$130 million in 1998 to $175/$180 million by the year 2000 and to $450 million by the year 2005 which ACTUALLY happened irrespective of various negative factors.Per capita chocolate consumption continues to be low at about 200g per person, creation mainly consumed in urban areas. In the middle and higher income groups, 70 per cent of children, 43 per cent of green adults and 16 per cent of adults consume chocolate.AC Nielsen ORG Marg topic estimates the Indian Chocolate Industry worth at Rs 2,000-crore (Rs 20 billion)Types of ChocolatesDepending on what is added to (or removed from) the chocolate liquor, divers(prenominal) flavors and varieties of chocolate are produced. Each has a unlike chemical make-up, the differences are non solely in the mouthf ul.1. nonsweet or Baking chocolate is simply cooled, hardened chocolate liquor. It is use primarily as an ingredient in recipes, or as a garnish.2. Semi-sweet chocolate is also used primarily in recipes. It has extra burnt umber butter and sugar added. Sweet cooking chocolate is basically the same, with more sugar for taste.3. Milk chocolate is chocolate liquor with extra cocoa butter, sugar, milk and vanilla added. This is the most popular cultivate for chocolate. It is primarily an eat chocolate.Cocoa is chocolate liquor with much of the cocoa butter removed, creating a fine powder. It can pick up moisture and odors from other products, so you should keep cocoa in a cool, dry place, tightly cover. there are several kinds of cocoaLow-fat cocoa has the most fat removed. It typically has less than ten percent cocoa butter remaining.Medium-fat cocoa has anyplace from ten to twenty-two percent cocoa butter in it. inebriety or Breakfast cocoa has over twenty-two percent left fiel d in it. This is the cocoa used in chocolate milk powders resembling Nestles Quik.Dutch surgical procedure cocoa is cocoa which has been finically serveed to languish the natural acids in the chocolate. It is slightly darker and has a much different taste than regular cocoa. Decorators chocolate or confectioners chocolate isnt really chocolate at all, but a sort of chocolate flavored candy used for things such as covering strawberries. It was created to melt easily and harden quickly, but it isnt chocolate.Categories of Chocolates moneymaking(prenominal) Chocolates are purchasable in the following formsBars or Moulded ChocolatesCountsPanned Chocolates (Gems)clairs various(a) ChocolatesBars or moulded chocolates (like Dairy Milk, Truffle, Amul Milk Chocolate, Nestle Premium, and Nestle off-white Bar) integrate the largest segment, accounting for 37% of the total chocolate market in volume terms. Wafer chocolates such as Kit-Kat and Perk also endure to this segment. Panned c hocolates accounts for 10% of the total chocolate market. Wafer chocolates such as Kit-Kat and Perk also belong to this segment. ..Form of ConsumptionPure ChocolatesToffeesCakes PastriesMalted BeveragesWafer Biscuits Baked BiscuitsChocolate DessertsChocolate Manufacturing ProcessWorkers cut the fruit of the cacao tree, or pods open and sac out the beans. These beans are allowed to ferment and then dry. Then they are cleaned, roasted and hulled. Once the shells have been removed they are called nibs. Nibs are blended much like coffee beans, to produce different colors and flavors. Then they are ground up and the cocoa butter is released. The heat from the grinding process causes this mixture of cocoa butter and finely ground nibs to melt and form a freeflowing substance cognise as chocolate liquor. From there, different varieties of chocolate are produced.What is conching?Raw unprocessed chocolate is gritty, grainy and really not effortable for eating. Swiss chocolate manufactu rer Rudolph Lindt discovered a process of rolling and kneading chocolate that gives it the smoother and richer prime(prenominal) that eating chocolate is known for today. The name conching comes from the shell-like shape of the rollers used. The longer chocolate is conched, the more luxurious it will feel on your tongue.Market Size (by value by volume)The Indian chocolate market is valued at Rs. 650 crores (i.e. Rs. 6.50 billion) a year. The Indian chocolate bazaar is estimated to be in the region of 22,000-24,000 tonnes per annum, and is valued in repletion of US$ 80 million.Chocolate penetration in the country is a little over 4 percent, with Indias metros proving to be the big draw time penetration in excess of 15 percent. Next, comes the relatively smaller cities/towns where consumption lags at about 8 percent. Chocolates are a luxury in the rural segment, which explains the mere 2 percent penetration in villages.The market presently has close to 60mn consumers and they are mainly located in the urban areas.Major Players their Market deal outThe major players in the Indian Chocolate Industry areCadburys India LimitedNestle IndiaThe Gujarat Co-operative Milk Marketing Federation (GCMMF) AMULCocoa Manufactures and Processors Co-operative (CAMPCO)Cadburys India Limited A StudyCADBURYS INTERNATIONALCadbury is a very old trusted name. It all started in Birmingham in England when John Cadbury started his family grocery shop with side business of cocoa and chocolate products in around 1824. His two sons, Richard and George, expanded their family business of cocoa and chocolate. Bournville, a town near Birmingham, was build by them as a part of expansion of their business.Cadbury family is also known for their contribution in social reforms and considered as liberals. This family was in the capitulum of adult education movement in England.CADBURYS INDIA LIMITEDCadbury was originally incarnate as a wholly owned subsidiary of Cadbury Schweppes Overseas Ltd (CSOL) in 1948. The follows original name was Cadbury Fry (India) Ltd. In 1978, CSOL diluted its equity interestingness to 40% to comply with FERA guidelines. In 1982, the name was changed to Hindustan Cocoa Products. CSOLs shareholding was increased to 51% in Jan 83 through a preferential rights issue of Rs700mm. The legitimate name was restored in Dec 89. In 2001, Cadbury Schweppes make an open offer to acquire the 49% public holding in the company. The parent holds over 90% of the equity capital after the first open offer. A second open offer has been do to buy hold the balance shareholding, after which the company would operate as a 100% subsidiary of Cadbury Schweppes Plc constantly since the Cadbury is in India in 1947, Cadbury chocolates have ruled the hearts of Indians with their fabulous taste. The company today employs closely 2000 people across India. Its one of the oldest and strongest players in the Indian confectionary industry with an estimated 68 per cent value share and 62 per cent volume share of the total chocolate market. It has exhibited continuously strong tax growth of 34 per cent and net arrive at growth of 24 per cent throughout the 1990s. Cadbury is known for its exceptional capabilities in product innovation, scattering and marketing.With brands like Dairy Milk, Gems, 5 Star, Bournvita, Perk, Celebrations, Bytes, Chocki, Delite and Temptations, there is a Cadbury offering to font all occasions and moods. Today, the company reaches millions of loyal customers through a diffusion network of 5.5 lakhs outlets across the country and this number is increasing everyday.OBJECTIVES AND VALUESOur mark is toGrow shareholder valueover the long termCadbury in every max Our marketing strategy is aimed at achieving this vision by growing the market, by appropriate pricing strategy that will create a majority market and to have offerings in every category to widen the marketOur Managing For Value Process incorporatesSetting stretched financial objectives.Adopting Value Based steering for major strategic and ope reasonable decisions and business systems.Creating an outstanding leadership electrical capacity within our wariness.Sharpening our company culture to reflect accountability, aggressiveness and adaptability.Aligning our counselling rewards structure with the interests of our shareowners.VISIONLife Full Of CadburyCadbury is an organisation which impacts and interacts with the consumers.Cadbury is present in most laughing(prenominal) occasions in the life of our consumer.Our brands excite our consumer.Cadbury is an facial gesture of a consumers life.Cadbury Full Of LifeCadbury as a company is vibrant.Cadbury ia a fun and energising workplace.Cadbury is robust and alive.BusinessCadbury dominates the Indian chocolate market with above 65 70 % market share. Besides, it has a 4% market share in the organized sugar confectionery market and a 15% market share in milk/ malted foods segment.Cadburys Indian operations are not just the largest in Asia but also the cheapest. In India, Cadbury has the largest market share anywhere in the world and has been the windy growing FMCG Company in the last three years with a compound annual growth rate of 12.5 per cent.Plant locationsCadburys manufacturing operations started in Mumbai in 1946, which was subsequently transferred to Thane. In 1964, Induri Farm at Talegaon, near Pune was redact up with a view to promote modern methods as well as improve milk yield. In 1981-82, a new chocolate manufacturing unit was sight up at the same location in Talegaon. The company, way blanket in 1964, pioneered cocoa farming in India to cut back dependence on imported cocoa beans. The parent company provided cocoa seeds and clonal sensibles free of cost for the first 8 years of operations. Cocoa farming is done in Karnataka, Kerala and Tamil Nadu. In 1977, the company also took steps to promote higher production of milk by background signal up a subsidi ary Induri Farms Ltd near Pune. In 1989, the company hatful up a new plant at Malanpur, MP, to derive benefits available to the backward area. In 1995, Cadbury expanded Malanpur plant in a major way. The Malanpur plant has modernized facilities for Gems, Eclairs, Perk etc. Cadbury also operates third party operations at Phalton, Warana and Nashik in Maharashtra.These factories churn out close to 8,000 tonnes of chocolate annually.Cadburys Dairy Milk (CDM)Cadburys Dairy Milk is the flagship brand of Cadburys not only in India but world wide. CDM is the single largest selling unit in India. It has annual gross revenue to the tune of Rs 200 crore. CDM not only accounts for 30 per cent of the total chocolate market in value, but commands nearly 26 per cent in volume terms and close to 30 per cent of Cadburys annual turnover.Moving from a predominantly adult positioning in the days of the legendary dancing girl ad, to the teens and the tweens, when the Cyrus Broacha ads hit the airwaves , CDM has made a long sweet journey. In spite of the new categories being explored by Cadbury, its star brand remains Cadbury Dairy Milk (CDM) which continues to recessional almost 30 per cent of the chocolate market.Cadburys TemptationCadburys Temptation is bountifulness chocolate brand aimed for high value consumption. Various variants available are Almond, Rum, Cashew O throw away. Cadburys temptation is priced at Rs. 40Cadburys CelebrationCadbury India launched its premium Celebrations range, which contains traditional Indian dry fruits wrapped in Dairy Milk chocolate. This gifting pick combines the pleasure of great(p) away dry fruits which Indians traditionally consider a premium, healthy gift with chocolate. Cadbury now has 90 per cent market share in this profitable segment.PRODUCT REVAMPING INNOVATIONSCadburys chocolate brands registered double-digit growth in 2002, piteous an astounding 19 per cent in the second half of that schedule year. Getting the power brand s right was the first priority, so genuine re-launches of the products were made.However, the growth rate was declining after that. The growth went down from 19 per cent in 1999 to 12 per cent in 2000 to single-digits, with seven per cent in 2001. If it present a smart recovery to nearly 10 per cent in 2002, it was largely on the back of Chocki and the revamped power brands.PRODUCT INNOVATIONS5 aceConsumer feedback suggested that the old 5 Star was too chewy, and people complained of it sticking to their teeth. It was made softer and melted easily in the mouth introduced as 5 Star CrunchyPERKPerk was made much lighter and the size of the bar increased to match Nestles munch. Perk had been under fire from Nestles deadly match of KitKat and Munch, but after the relaunch, its marketshare is two per cent more than KitKats. And, the five-year-old brand is now almost as big as the decades-old 5 Star in size, both in the region of Rs 50-55 crore.HEROESPackaging innovation has played a vital role in revamping of various Cadburys brands. Heroes brand is simply a multi-pack with miniatures of all its most popular brands in a single outermost case.NEW PRODUCT LAUNCHESRich Dry Fruit battle arrayFor Gifting joyous SeasonCadbury Celebrations Rich Dry FruitCollection a range of premium chocolate gift boxes.Available in attractive packs, the Collection caters to a premium gifting consumer and is an beliefl festive gift. It is a anomalous gang of the best Cadbury chocolate and premium dry fruits and comes in four different formats each of which is a mix of select premium dry fruits enrobed in rich Cadbury Dairy Milk chocolate.Cadburys Creative LaunchA new after dinner segmentCadbury Dessertsfor sweet moments after dinnerKhaane Ke baad Kuch Meetha Ho Jaye.Rs. 20/- per packet of 44 gmsCadbury Dairy Milk (CDM) Desserts with rich hard crme center, in exotic traditional flavors of Tiramisu and Kalakand. CDM Desserts offer the perfect locomote off taste, after meal t hat adds special Meetha moments to the family. The rich tastes of CDM combined with the unique crme center in exotic flavors provide a special chocolate experience. CDM Desserts add delight to the after-meal moments, especially with the consumers whose current choice of sweets range from home made delicacies to fruits to meethai.PRICINGAfter the roaring success of Nestles Munch and Chocostick, Cadburys empire struck back hard. The Rs 5 price point accounts for more than half of all chocolate sales. Nestle had seized the initiative at this price point, with its launch of Munch, now a roaring success (and the largest selling product at that price point). Today, Cadbury has four products at this price point CDM, Perk, 5 star and Gems and the five-rupee CDM bar is its single largest-selling SKU. This is a potent price point in India, because the average purchasing power is abysmally low, is what industry analyst have to say.Nestle kicked off one of the biggest success the liquid choc olate category with its brand Chocostick priced at Rs.2 three months ahead of competition. Cadbury did react with Chocki, priced at Rs 2, expanding the concept of sachetisation to new frontiers. Chocki has been the single biggest growth driver for Cadbury as well as the entire chocolate category. The novelty of the format endeared itself to the existing customer. In less than one year, it constituted nearly 10 per cent of the total chocolate market, split equally between Cadbury and Nestle.Volume led growth strategyCadbury has followed a well-planned strategy of fuelling volume growth by introducing smaller unit packs at lower price points. Simultaneously, the company seems to have sapiently juggled with the larger pack sizes and raised prices to a degree higher than what appears at face. The strategy has driven volumes in the last two years and we expect the volume growth to continue in the next two years. aggrieve WOESChocki, selling at a potent price point of Rs 2, was ideal f or smaller towns, especially since it did not need refrigeration. But Chocki started to cannibalise other higher-priced chocolates in larger markets. The students of Bombay Scottish (an upmarket school in Mumbai) are not supposed to eat Chocki, they should not have even hear of the product.DistributionChocolate needs to be distributed fillly, unlike other FMCG products like soaps and detergents, which can be sold through a wholesale network. 90% of chocolate products are sold directly to retailers.Distribution, in the case of chocolates, is a major deterrent to new entrants as the product has to be unbroken cool in summer and also has to be adapted to suit local tropical conditions. Cadburys distribution network used to encompasses 2100 distributors and 450,000 retailers. The company has a total consumer base of over 65 million. Besides use of IT to improve distribution logistics, Cadbury is also attempting to improve distribution quality. To address the issues of product stabilit y, it has installed VISI coolers at several outlets. This helps in maintaining consumption in summer, when sales usually angle of inclination due to the fact that the heat affects product quality and thereby offtake.To empty cannibalization of its higher priced products from lower priced ones, Cadbury is setting up two separate distribution channels one for CORE business other for MASS markets, with different stockists, wholesalers and retailers. One set will be dedicated to Cadburys high-end products and traditional chocolates. The other will cater to the mass market brands namely Chocki, Halls, Eclairs et al all products priced below Rs 3.But today, Cadburys distribution network reaches out to six lakh outlets each for its chocolate confectionery brands (i.e. total reaching12 lakh outlets).Promotiontypically it is said that chocolates are being eaten when everyone is happy. And this is something advertising has always portrayed. But it is order chocolates are eaten under di verse conditions and moods when people are anxious, when they are sad, when happy a whole range of emotions. Condensing these views thoughts, it can be said chocolate is a true soul mate. Someone who is with you through the ups and downs of life, luck you bounce back. And thats what Cadburys Dairy Milk (CDM) positioned itself as a special friend.% Share of various Brands Ad spending of CadburyHere, the 6 Cadbury brands shown in the graph exemplify 85% of the advertising pie, whereas, rest of the 9 brands advertised by Cadbury comprise 15% of the advertising. Cadbury Dairy Milk Chocolate is the most advertised brand (with 22%).RE-INVENTING CABDURYKya Swad Hai Zindagi Mein redefined the way Indians looked at Cadbury Chocolates. (The commercial showed a beautiful young lady overcoming all obstacles on the cricket ground, crossing boundary, watchman, securities and embracing her buffer who won the game by hitting a six). This theme introduced in around mid 90s bought instant grow th to Cadburys Dairy Milk. The Ad bid ran successful for about four years and immersed deeper inside hearts of Indians.In March 2002, Cadbury launched its next advertisement campaign for its flagship chocolate brand, Cadburys Dairy Milk (CDM). The campaign featured a television (TV) commercial that was portentously different from the companys earlier commercials for the brand. It featured Cyrus Broacha interviewing college students and asking why they liked to eat CDM. This was followed by college students singing their excuses for eating CDM. Just as the commercial seems all set to end with the students and Cyrus singing the famous CDM theme, Khane Walon Ko Khane Ka Bahaana Chaahiye (those who want to eat, will settle excuses), a student comes up and questions Cyrus, The advertisement aimed at conveying the idea that no specific occasion is required for consuming CDM. This was a significant departure from CILs strategy of appealing to adults in India, who sought a rational justi fication for indulging in chocolate consumption. Cadbury roped in Preity Zinta for its PERK brand. Preity Zintas sugared dimples laid the groundation for what would become the Indian teenagers favorite snack. After this campaign, PERKS sale surged Cadburys advertising has, over the past few years, aptly reflected Indias passion for chocolates.Cadbury And The convolute ControversyThe discovery of worms in some samples of Cadburys Chocolate in early October 2003 created one of the biggest controversies in India against a Multi National reputed for being a bench mark of QUALITY.The logical argument created an deep adverse impact on the company with their sales not only drastically dipping down, but at the same time allowing the competitors to establish their foothold and taking maximum advantage of Cadburys misfortune.The controversy, and the adverse publicity received in several countries, set back its plan of outsourcing bewilder which would have resulted in significant revenue generation, several months back.The worms controversy came at the worst time.the next few months were the peak season of Diwali, Eid Christmas. Cadbury sells almost 1,000 tonnes of chocolates during Diwali. In that year, the sales during festival season dropped by 30 per cent. The company saying its value share melt from 73 per cent in October 2003 to 69.4 per cent in January 2004. In May, however, it inched up to 71 per cent. CDM sales volumes declined from 68 per cent in October 03 to 64 per cent in January 2004 Clearly, the worm controversy took a toll on Cadburys bottom-line. For the year ended December 2003, its net profit fell 37 per cent to Rs 45.6 crore (Rs 456 million) as compared with a 21 per cent increase in the previous year.However, Cadburys reiterated that all through the 55 years of leadership in India, that it has remained synonymous with chocolates and have remained committed to high quality and consumer satisfaction.CABDBURYS FIGHT-BACKProject Vishwas Steps to e nsure quality regain the confidence pursuit the controversy over infestation in its chocolates, Cadbury India Ltd unveiled Project Vishwas, a plan involving distribution and retail channels to ensure the quality of its products.The companys team of quality defend managers, along with around 300 sales staff, go over over 50,000 retail outlets in Maharashtra and replaced all questionable stocks with immediate effect. The Vishwas computer program was intended to build awareness among retailers on storage requirements for chocolates, provide assistant in improving storage conditions and strengthen package of the companys range of products.Cadbury reduce the number of chocolates in its bulk packets to 22 bars from the present 60 bars. These helped stockists display and sell the products safely and hygienically 190,000 retailers in key states were covered under this awareness programme.The Big B FACTORThe big factor that has pushed up CDM sales is the Amitabh Bachchan campaign. It helped restore consumers faith in the quality of the product. In early January, Cadbury appointed Amitabh Bachchan as its brand ambassador for a period of two years.The company believed that the reputation he has built up over the last three decades complements their own, which was built over a period of 50 years. Yet, the entire credit of recovery could not be attributed to the brand mascot. piercing action taken by the company also helped. Some of which wereResponded to consumers reside over the issue rapidly. Also, the communication campaign worked effectively in giving out the central message.The packaging was changed to include a sealed bendable wrapper inside the outside foil. Cadburys launched a new purity-sealed packaging for its flagship product, Cadbury Dairy Milk. The packaging is in response to foreign bodies, notably worms, being found in its products. Over the next few weeks Cadbury will work towards introducing any a heatsealed or a flow-pack packaging that offer s a high level of resistance to infestation from improper storage.New advertising promotion campaigns were in place which accounted for an Ad spend of nearly Rs 40 crore (Rs 400 million) Cadbury invested nearly Rs 25 crore (Rs 250 million) this year on new machinery for the improved packaging.CADBURYS SINGING sweetly AGAINAll is well that ends well. And for Cadburys India, nothing can be sweeter than take Back the Consumer Confidence.Thanks to quick action taken to recover the damage done by the worm controversy like Operaion Vishwas, adopting new packaging massive advertising with Mr. Amitabh Bachchan as their brand ambassador, Cadburys regained its market share.The survey conducted by the company says that consumers have long forgotten the controversy and are back to their merry chocolate-chomping ways. Sales were back to the precontroversy levels. Consumer confidence in the product was back and there was a steady progression in sales .The company posted a high double digit sa les growth in that year end. The recovery began in May 2004 when Cadburys value share went up to 71 per cent.Hires AT Kearney to curb beCadbury India appointed management consultancy firm AT Kearney to draw up a strategy to control costs in several areas, including sourcing of raw materials and packaging. This was partly an outcome of the worms controversy more than a year ago. Among other things, it changed the wrappers for its Cadbury Dairy Milk brand and introduced better coolers.The consultancy firm will also look at the sourcing of direct and indirect materials like renegotiating with suppliers for longer term contracts and vendor management. Other costs (indirect expenses) like travel costs and hotels were also being studied.In other words, Cadbury is trying to reduce the cost per stock keeping unit (SKUs, or packs).The aim is to improve efficiencies.Earnings sensitivity factorsCocoa bean prices internal as well as international prices of key raw material cocoa have signifi cant impact on margins.Excise duties Changes in excise levied on malt and chocolate influences end product prices and thereby volume growth as well as margins.Changes in