Cadbury Effect in Modern Trade !

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Here is a case Study on Issues faced under Modern trade ! what this blog describes as the Cadbury effect in Modern Trade !

India's largest listed retailer Big Bazaar has pulled Cadbury's chocolate from its shelves following a row over allegedly discriminatory pricing policies.

Big Bazaar, which runs large superstores in big cities across India, claims that other retailers operating cash-and-carry outlets in the country, such as Germany's Metro and Shoprite from the US, are being given better deals by the British confectioner.
While demanding a discount on the wholesale prices it pays for chocolate bars it has claimed that Cadbury, which has made the subcontinent a key target market, has failed to treat India's retailers with adequate respect.

He added: "Multinational companies have to respect the contribution of Indian modern retailers to their growth and treat us as equal partners in business."
The move will come as a blow to Cadbury Schweppes, which is India's largest chocolate company and has said it regards the country as a "battleground and must-win market".
Over the past three years, Cadbury's Indian business has posted a 20 per cent increase in sales and emerging markets already provide one third of the company's overall confectionery revenues.
A Cadbury spokesman said: "Negotiations are still under way and we are still trying to find a mutually agreeable set of terms."
Future Group has a record of playing tough in negotiations and some industry observers suggest the current spat may soon be resolved. During an earlier row with Pepsi, it stopped stocking the soft drink giant's products. The dispute was later resolved.

But this one is interesting , as any ammicable settlement , would mean that the other retailers would also want a relook at terms with Cadbury , so ho does Cadbury settle this issue , well one may never know the back end deals and discussions , but watch this blog for more details .

The great Modern trade face off 's have already started in India , read more on How to suceed in Modern trade post in this blog !


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