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Cadbury India

Cadbury Dairy Milk
Ashok Hegde, Arun Khedwal,Sanjeev Shrivastva & Rutuja Dighe


Sr. No.


Page No.


Executive Summary


Global Market Summary & Consumption



Chocolate Market in India



Cadbury India



Financials Analysis



About Cadbury Dairy Milk Chocolate (CDM)



S.W.O.T Analysis



5 C Analysis





Impulsive Chocolate Buying Behaviour and
Product life cycle of CDM


BCG Matrix



Cadbury & the Worm Controversy



Success Factors of Cadbury India Limited



Review of Past Promotional Programs



PEST analysis of the Chocolate Segment in
Marketing plan Dairy Milk





Segmentation, Targeting, Positioning of
Cadbury Diary Milk
Marketing Strategy




The Marketing Mix of Cadbury Dairy Milk
Chocolate (CDM)
Conclusion & Recommendations







Executive Summary
- The global chocolate market is estimated to be around $106 billion.
(Retail Market Value).


- 100 tons – of chocolate are consumed every second.
- Currently, the Indian chocolate market is worth around Rs 5,562
- India chocolate industry will be growing at the CAGR 23% by
volume between the years 2013-2018 and reach at 3,41,609 Tons.

Driver &



- Increase in disposable income

- Rise in Cocoa prices

- Attractive pricing

- Lack of government initiative

- Rising income levels

- High entry barriers

- Chocolate Gifting

- Price-sensitive consumer

- Opportunity to expand

- High excise & Import duty

- Experts feel that premium chocolates are replacing traditional
Indian “mithai” and thus they are no longer a category just for
a category just for kids.



- Moulded Chocolate Segment

- Count line Segment

- Choco-Panned Segment

- Sugar-Panned Segment

Cadbury India Ltd (67%)

Ferrero Rocher (6%)

Nestle (21%)

Amul (3%)

Others (3%)

Global Market Summary
Market Growth:•

The global chocolate market is estimated to be around $106 billion.

100 tons – of chocolate are consumed every second.

Figure:2.0 Global Chocolate retail market Value (Source: Euromonitor)

Figure:2.1 Global Chocolate Region wise Market (Source: Euromonitor)


Although the global market is still dominated by Western Europe and North America,
emerging markets clearly represent the future. The BRIC countries (Brazil, Russia, India
and China) accounted for 55% of global confectionery retail growth in 2011.
According to trade analyst figures, current hotspots include India (annual growth rate
15%), China (9%), Russia (6%) and Mexico (3.8%).
Men's love of chocolate is on par with women's preference for the treat: A UK study by
research group Mintel revealed 91% of all women admit to eating chocolate – with the
men not far behind at more than 87%.
There are a number of trends within the chocolate industry that are driving growth; and
product innovation in 2010-11 brought a 16% increase in new product releases over 2009.
Increasing disposable incomes as well as changing public sentiments regarding health
and our global community is the driving forces behind this growth in innovation.
Annual Per Capita Chocolate Consumption 2012.

Figure:2.2 Annual Per Capita Chocolate Consumption-2012
In Asia, chocolate hasn't traditionally been the sweet of choice, market analysis firm Euro
monitor International reports. Right now, Indians eat only 165 grams (less than 6 ounces)
of chocolate a year. The Chinese eat only 99 grams (3.5 ounces).
The per-capita consumption in India of chocolates has increased from 40gm in 2005 to
150-165 gm now and there is a lot of scope to grow even further.

400 Kgs of chocolate consumption in India per minutes. The per capita consumption of chocolates is increasing in the country which will continue to flourish the market revenues. The dark chocolates are expected to account for the larger market share when compared to milk and white chocolates in the coming years. rising per capita income and gifting culture in the country.27 billion. the Indian chocolate industry is projected to grow at an even higher rate in the coming years Currently. The introduction of medicinal and organic ingredients in the manufacturing of chocolates had lead to a new trend and development in the country. The chocolate consumption number comes around 2.562 crore.0 Indian Chocolate Market Shares 2013 (Source: Economic times News Paper) 5|Page . The industry has a positive outlook due to phenomenal growth in the confectionery industry. Registering 15% annual growth between 2008 and 2012.Chocolate Market in India India is the world's fastest growing market for chocolates.09. Figure: 3. Low priced unit packs. which will be adapted by major manufacturers to remain active in the market.609 Tons. increased distribution reach and new product launches can be said to have fuelled this growth. It is expected that India chocolate industry will be growing at the CAGR 23% by volume between the years 2013-2018 and reach at 3. The Population of India in 2013 is 1.550 ton. the Indian chocolate market is worth around Rs 5.41.

the volume grew significantly.Dairy Milk as an anytime product rather than an occasional luxury. The national companies . The late 90’s witnessed a good chocolate market condition. Nestle has emerged by holding almost 21% of the total share.Amul and Campco are other candidates in this race. Candico and Nutrine. But as the century advanced the market stagnated. India has witnessed a slow growth rate of about 10% pa from the 70’s to the 80’s. Cadbury holds more than 67% of the total share of the market. The major target population is the children. Apart from chocolate segment. One of the oldest products of Cadbury which is still going strong is the Cadbury’s Five Star which was launched in the year 1968 in India. There is less than 25% awareness amongst the young age segment. This was the time when Cadbury launched its product. The multinational companies like the Cadbury. Indians eat chocolates as indulgence and not as snack food. According to statistics. the chocolate consumption in India is extremely low. All the advertisements of Dairy Milk paid a full attention to adults and not children. But as the new variety of chocolate was launched – the wafer and the chocolate variety with the brand name Perk. In the late 90’s new players like Nestle also introduced these wafer chocolates with the name Kit Kat resulting into the growth of the market. Observing this fact it would not be appropriate to consider the rural areas of India as it will be extremely low. In early 90’s. Cadbury’s Five Star is the most resistant chocolate to temperature and hence it is widely distributed all across the country. Nestle and Perfetti are the new entrants in the sugar confectionery market. it comes to only 160gms in the urban areas. This low consumption is owing to the notion behind consuming chocolates. the Cocoa prices became high due to which the manufacturers were forced to raise their product prices. The chocolate market in India is dominated by two multinational companies – Cadbury and Nestle. 6|Page . This amount is very low compared to the developed countries where the per capita consumption is more than 8-10 Kg. All these are leading national players. And this proved to be the major breakthrough for Cadbury as it tried to break the conventional ideas of the Indians about chocolate. there is also a big confectionery segment which is flooded by companies like Parry's. Ravalgaon. But India is still at nascent stage. (Management paradise) There are several others which have a minor share in these two segments.In India chocolate consumption was very low in the early 90’s but as the decade advanced the consumption drastically increased. If per capita consumption is considered. Dark Chocolate is growing at a rate of 13% globally.

. it today has six company-owned manufacturing facilities at Thane. Induri (Pune) and Malanpur (Gwalior). the legendary triangular Swiss chocolate. Toblerone. Halls. Gems. Bangalore and Baddi (Himachal Pradesh) Hyderabad and 4 sales offices (New Delhi. Kolkata and Chennai). respectively. Cadbury began its operations in 1948 by importing chocolates. small chocolate manufacturers. Tang and Oreo. Last year. Cadbury India enjoys a value market share of over 67 percent in the chocolate category and our brand Cadbury Dairy Milk (CDM) is considered the "gold standard" for chocolates in India. The corporate office is in Mumbai. Nestle etc. The chocolate industry in India works at different levels that include chocolate giants like Cadbury's Dairy Milk. 7|Page . Bournvita. Cadbury recently entered the biscuits category with the launch of the Worlds No 1 biscuit brand Oreo. Beverages. Perk. Similarly in the medicated candy category Halls is the undisputed leader. the $32 billion global snacking major formed in October last year after Kraft Foods decided to split its business. In India. Bournville. The pure taste of CDM defines the chocolate taste for the Indian consumer. chocolate importers and people who make chocolates at home. In the Milk Food drinks segment main product is Bournvita . Celebrations.the leading Malted Food Drink (MFD) in the country. Biscuits. Cadbury India operates in five categories – Chocolate confectionery. In the Chocolate Confectionery business. Gum and Candy. Cadbury has maintained its undisputed leadership over the years. After over 60 years of existence. Mumbai. is over a century-old brand and prides itself on being the only triangular chocolate. Bubbaloo. industry insiders said quoting data from market research agency Nielsen.562 crore chocolates segment in India.Cadbury India Cadbury India — a subsidiary of Mondelez International. The launch of Toblerone in India is in line with the business objective of growing and leading the premium gifting chocolate market with ‘Gift like no one else’ as the brand theme. sales of Ferrero India and Nestle's chocolate segment grew 30% and 6%. 5 Star. Cadbury controls over 67% share in the Rs 5. Eclairs. followed by Nestle with 21% share and Ferrero with 6% share. Some of the key brands are Cadbury Dairy Milk. chocolate retailers.

There is some element of a guarantee about the product created by the signature logo. in Australia. for example. its brand name and signature colour is always clearly visible in all marketing communications providing ease of brand recognition.The Cadbury Logo Brand names act as a simple perceptual cue that identifies a product as one people are familiar with or one they associate with particular attributes or features (Achenreiner and John 2003). 8|Page .0 Cadbury white/purple script logo (Source: Cadbury website) Cadbury is also instantly recognisable because of its iconic purple packaging. The Cadbury logo. 2008). Cadbury’s particular shade of purple has also long had associations with royalty and luxury (Bradley. Colour has emotional significance and can prompt swifter recognition to packaging than either written words or imagery (Tutssel. 2009). The famous Cadbury white/purple script logo is unique and original. Cadbury uses colour for quick brand recognition across its many forms of marketing communications. Figure: 4. 2001).0). One recent survey has found that 88 per cent of UK respondents recognised Cadbury’s purple. making it the third most recognised brand of those tested (Fitzgerald. yet simple. Cadbury is regularly voted as the most trusted brand in the country (Bradley. familiar and somehow approachable (Figure 4. 2008). in outdoor advertising and television advertising. In fact. Cadbury’s signature colour is considered so valuable to the company for brand recall and brand recognition that it has spent millions of dollars in legal fees attempting to prevent other chocolate companies such as Darrel Lea from using purple in their marketing communications. The appetising visual of two glasses pouring milk into the signature is also well known and provides a pictorial heuristic for the perceived benefit of “a glass and a half of full cream dairy milk”.

in/story/kraft-takes-over-cadburyindia-changes/1/21920. Crackle.intoday. Milk Treat). Cadbury has leading brands in all the segments viz bars (Dairy Milk.1 Cadbury India’s Market Share in different Segments 2012 (Source: Business today: http://businesstoday. Temptations). count lines (5 star. Figure: 4.html) 9|Page . Cadbury has enjoyed leadership position in the Indian chocolate market to the extent that 'Cadbury’ has become a generic name for chocolate products.Cadbury India’s Market Share in different Segments 2012 For more than six decades now.

g. The income of a person does not play any important role in it. their interests and activities) the benefits which consumers look for in a product or on the occasions when the product might be consumed. The price of Cadbury dairy milk is reasonable and affordable. they can easily buy it any time when they want to buy. Impulse segment: – These products are often purchase on impulse. gender.8% in about 5. So a person does not need to think much before purchasing it.480 towns and urban agglomerations.105 (1.270. Consumers age groups.272.(e. It targets different segments within the market. They include product such as Cadbury’s Dairy Milk. The lifestyle of consumers (i.000 villages and the rest 27. are as follows: Break segment: – Products which are normally consume as a snatched break and often with tea and coffee.53 billion people by the end of 2030.58%. Market segmentation can be defined in a number of ways such as: Demographic variables: . for example Cadbury’s Perk and Oreo Biscuits.2% of the population lives in some 638.About 72. India is predicted to have more than 1.Cadbury’s Market Segment:Market place for any product is comprised of many different segments of consumers. each with different needs and wants. More than 50% of India's current population is below the age of 25 and over 65% below the age of 35.India. Cadbury takes into account all these factors when producing a range of products. All types of peoples like to purchase the Cadbury dairy milk when they want to buy it. Geography: . With the population growth rate at 1. Cadbury dairy milk will not be much affected by the generation differences.Current Population of India . with 1. 10 | P a g e . Take home segment: – This describes product that are normally purchased from supermarkets. eating these and then. So India is the biggest market for Chocolate in terms of population.27 billion) people is the second most populous country in the world. taken home consumed at a later stage.e. material states income nb etc…).

and retailers). even though they are presumably traveling to find new experiences! This is why tourists and travelers around the world feel comfortable on eating at McDonald’s. Psychographic: .Behavioural factors: Decision: .. Rakshabandhan. Occasionally such as Diwali. feel.For purchasing the Cadbury dairy milk no special occasions are required..The decision is taken by the children and youngsters. Brands in fact influence consumer behaviour in a number of ways: Reassurance: .g. It adds value by promising ‘replicability’ and helps to establish repeat purchase patterns. They play an important role in taking the decision of when to buy the Cadbury dairy milk.g. The psychology of how the consumer is influenced by his or her environment (e. media). signs. In a foreign country. People can easily purchase it on regular basis. Here Cadbury wins the race & Cadbury become a part of lifestyle as a loyal brand.The psychology of how consumers think. products. Occasions: . family. 11 | P a g e . culture. and select between different alternatives (e. the sales of Dairy Milk increases. brands. We do this to communicate the desired signals in the highly social environment we inhabit. reason. Value Expression: We choose brands that reflect the individual values that we possess as individuals. people seek the reassurance of familiar brands.A brand is a stamp of authenticity.

Chocolate Brands of Cadbury India:High Premium Snack Indulgence Low Price Figure: 4.2 Cadbury Chocolate brand Segment Source: http://www.aspx 12 | P a g e

4 crore. when grocery and snacks giant Kraft was split into two companies. experienced the first hints of a slowdown in 2012. Kraft had acquired Cadbury in January 2010. including Oreo cookies and Cadbury. Its international business. Profit after tax increased by 2. Figure: 5.0 Cadbury India Sales & Net Profit (Source: http://www. was spun off and named Mondelez while most of the US assets remained in Kraft. Cadbury India experienced a slowdown in sales and profit in 2012. as consumers cut back on discretionary products." 13 | P a g e .4% growth recorded in 2011. many even trading pricier chocolates with lower priced candies and confectionery. despite launching legendary Swiss triangular chocolate brand Toblerone. Its revenues increased 20. and entered the biscuits segment in the past two years. This slowdown will be seen as a small setback to Mondelez International's plans to rev up growth in emerging Mondelez International came into existence in October 2012. incidentally its first year under new parent Mondelez International.1% to Rs 303. Cadbury India had launched products such as Silk and Bournville. which drove the growth.8% to Rs 4.065 crore. whose revenue growth has consistently outperformed the economy over the past few years.indiainfoline.Financials Analysis Cadbury India. the lowest growth rate since 2006 and a sharp deceleration from the 34."The availability of foreign brands such as Ferrero Rocher and Lindt in the premium segment could be hampering growth in that category.

154 179 2 177 34 143 18 2 6 118 -9 127 -2 244 17 343 7 20 35 NA 122 Figure: 5.176 3.1 Cadbury India P & L Source: India Infoline (www.293 23 17 1.051 448 4 444 67 376 84 -5 297 -0 297 624 37 884 6 20 95 NA 329 2.751 21% 163 14 | P a g e .503 30 83 2.589 25 51 1.272 21% 206 4.066 58 52 4.932 1.617 2.421 244 5 238 37 202 35 3 -2 166 1 165 343 119 390 6 20 51 NA 144 1.576 81 272 594 1.522 35% 157 3.442 21% 148 1.248 61 239 533 924 45 904 53 167 448 698 34 617 37 134 295 543 25 522 30 120 284 462 4 395 25 112 228 378 16 - - - - - - 3.Indiainfoline.Profit & Loss of last six year:Particulars INCOME : Sales Turnover Sales Growth Excise Duty Net Sales Other Income Stock Adjustments Total Income EXPENDITURE : Raw Materials Power & Fuel Cost Employee Cost Other Manufacturing Expenses Selling and Administration Expenses Miscellaneous Expenses Less: Pre-operative Expenses Capitalised Total Expenditure Operating Profit Interest Gross Profit Depreciation Profit Before Tax Tax Fringe Benefit tax Deferred Tax Reported Net Profit Extraordinary Items Adjusted Net Profit Adjst.303 314 4 310 61 249 65 -25 209 -3 211 443 28 624 6 20 67 NA 236 1.615 28% 112 2.365 123 11 3.150 6 20 97 NA 424 3.045 17% 111 1.665 1.157 44 1.725 451 6 445 79 366 116 -53 303 0 303 884 38 1.651 281 3 278 44 234 38 1 7 189 -0 189 390 135 443 6 20 60 NA 171 1.499 2.333 1. below Net Profit P & L Balance brought forward Statutory Appropriations Appropriations P & L Balance carried down Dividend Preference Dividend Equity Dividend % Earnings Per Share-Unit Curr Earnings Per Share(Adj)-Unit Curr Book Value-Unit Curr Dec-12 Dec-11 Dec-10 Dec-09 Dec-08 Dec-07 4.934 14 -16 1.

Chomp. best tasting chocolate but also because of its memorable communication. Crunchie. Cadbury Chocolate constantly creates or acquires new products to add to their range of offerings. chocolate Buttons. the name stuck. But when a customer’s daughter suggested Dairy Milk. Flake. it’s still with us today. Cadbury Dairy Milk has become a megabrand. was launched in 1897. But it did not attract a lot of interest. to the personal values of individual enjoyment. from shared values such as family togetherness.’ George Cadbury Dairy Milk was launched in June 1905. All sorts of names were suggested: Highland Milk. and since then for consumers across India. It was sold in unwrapped blocks that could be broken down into penny bars. available in many different varieties and all over the world. Boost. So in 1904 George Cadbury was tasked with developing a milk chocolate bar that was to have more milk than anything else on the market. Wispa. And of course. Gradually it became more and more successful – Cadbury’s biggest seller by the beginning of the First World War. Curly Wurly. the boxed chocolate brand Milk Tray. Picnic. Caramel.About Cadbury Dairy Milk Chocolate (CDM) Cadbury Dairy Milk encapsulates an enormous breath of emotions. made by adding milk powder paste to the dark chocolate recipe of cocoa mass. CDM remains at the top of the Indian chocolate market not only because of its most delicious. and Fudge. 15 | P a g e . Swiss manufacturers were leading the field in milk chocolate. cocoa butter and sugar. Jersey and Dairy Maid. And by the early 1920s it had taken over the UK market. with much better products than their rivals. Major chocolate brands produced by Cadbury include the bars Dairy Milk. It stands for goodness. Cadbury’s own milk chocolate bar. A moment of pure magic! Cadbury Dairy Milk (CDM) entered the Indian market in 1948. and the twist-wrapped chocolates Heroes. the word Cadbury has become synonymous with chocolate.

Sugar & Solid milk (milk powder) prices: Domestic as well as international prices of key raw material – cocoa. Good monsoon ensures adequate availability of raw materials.Competition from MNCs like Nestle as well as imported brands. however it also makes import of raw material (esp. .Tradition of gifting sweets . Some of the key growth drivers being:. as 20% of raw material are imported. .Excise duties: Changes in excise levied on malt and chocolate influences end product prices and thereby volume growth as well as margins.Cocoa bean. .Figure: 6.0 Cadbury Dairy Milk Chocolate (Source: Cadbury’s Purple Reign) Earnings sensitivity factors:. which are mainly agricultural in nature.Increasing awareness . However on the positive side.Changes in custom duties and foreign exchange fluctuations.demand for sugar-free and diet chocolates among consumers. . Sugar & Milk has significant impact on margins. it helps in expanding the market. Increasing competition puts pressure on advertisement budget and margins.Shifting in consumer preference (from traditional ‘mithai’ to chocolates) . 16 | P a g e . cocoa) expensive.Rupee depreciation improves export realizations.

the brand that sells more is the one that reaches the highest number of customers. To tap this huge potential Cadbury's distribution channels include the manufacturing warehouses where the chocolate production takes place. Due to 65 years of presence in India . 60 mid urban (22%) customers. The modern trade is handled separately.Rising income levels and rapid development in rural markets. Increasing awareness. distribution equity is hard to erode.has deep penetration. However.000 retailers. Cadbury is also focusing intensively on achieving distribution equity. Cadbury India distribution network India Cadbury’s brands are available in over a million outlets across the country.1 Cadbury India distribution network India 17 | P a g e CNF .500 distributors. shifting in Indian consumer preference and rapid development in rural markets shows there is a huge untapped market that the chocolate manufactures can capture. 550.Expansion potential due to lesser penetration . A schematic representation of the entire distribution channel is given here:CADBURYS INDIA LIMITED CNF in each district Distributors RET DIS RET CNF DIS RET CNF CNF DIS Retailers Figure: 6. there is a long way to go for the Indian chocolate industry. Though it takes much more time and effort to build. but once built.. With technology and competitive pressure slash in it is becoming increasing difficult for marketers to retain a unique product differentiation for long period. rising disposable income. In a product and price parity situation.2. This is followed by wholesaler & then followed by retailer.

e. e. Dairy Milk. 18 | P a g e . Low cost of production due to economic of scale. Cadbury India Ltd is supported by its parent company. It is almost as if Cadbury is synonymous with generic category chocolate. generating revenue in billions. Due to its presence for so many years people tend to associate chocolate with Cadbury. etc.g. It has been present for over 65 years even before competition could peep-in. malted foods etc. Cadbury India has the biggest market share at 67 per cent while Nestle is the second largest at 21 per cent. declining profitability will adversely affect the operations of the company. These products are reasonably priced to suit different economic consumer categories. That means higher profits. Also Cadbury offers a limited variety of products as opposed to other leading competitive brands. Also majority of markets in India are not Air conditioned and hence cannot store chocolates at least during hot summers. dairy products.chocolates. Mondelez International. better market penetration with the strong distribution network. Weaknesses The scenario of worms being found in Cadbury chocolates lead to a temporary decline in sales. their basic chocolate.O.W. beverages. Poor technology in India compared to current international technologies. Amul and Nestle that offer an array of products like biscuits.S. still seems to remain the all-time favourite of most people. Cocoa has to be imported leading to bunched imports and higher inventory. There is lack of penetration in the rural market where people tend to dismiss it as a high end product. are manufactured by Cadbury. In spite of innovation in the chocolate segment. Amul & other holds the rest. Celebrity endorsements have increased sales and also added glitter to the brand name. One of the major raw material i. which limits the market access.T Analysis Strength Cadbury being a reputed company has its brand name as one of its biggest strengths. A large range of products like . Cadbury is a very profitable organization. It is mainly found in urban and semi-urban areas. The operating profit of the company declined.

Cadbury can also focus on gaining profits through chewing gum market in India. Cadbury faces a serious threat in the confectionery segment from companies like Amul. Also. effective management of all the areas proves to be difficult at times. This can very well be achieved by using information technology. It first went on sale in 1905 in the United Kingdom. Customers: . Whereas some buy it as an alternative for sweet others buy it as a gift item.The prospective customer of dairy milk range from 5 to 60 years of age. dairy products and other vital ingredients. Threats As Cadbury has already faced a worm scandal. it can now narrow down to some popular products and can bring down its own individual Cadbury’s store. The consumers mostly buy the product on impulse and are influenced by taste/flavour and then by company/brand. 5C Analysis Company: . 19 | P a g e . As Cadbury produces chocolates and a few related products. its reputation has been put at stake by the competitors trying to exploit this situation. etc. Cadbury is exposed to rise in the cost of cocoa beans. Nestle. The company can easily venture into new segments individually or jointly. The aim is to strengthen the brand relationship in the current consumer’s life. The company aims at bringing efficiency in logistics and distribution.Opportunities As Cadbury has established itself very well in the Indian market. Trends of purchase may change with the ever-changing taste preference of consumers. unit of Kraft Foods and sold in several countries around the world. Changing restrictions and rules from Government quality control boards may result in pressure on the production of the company & cost increase. It has capabilities to increase the range of products manufactured. The company can focus on targeting urban areas and developing sectors by working on availability and affordability.Cadbury dairy milk is a brand of chocolate made by Cadbury Plc. Another very important opportunity that can be observed is the introduction of foreign products in India. The ranges of customers vary for diary milk. Since dairy milk has a range of product suited for every member of the family. The current parent is Mondelez International.

Hedonic personalities will focus selectively on the benefits than the cost of impulsiveness and are considerable uninfluenced by the costs.Competitors: . The high end chocolates (Bournville and silk) also face competition also face competition from the imported Swiss chocolates. 'Impulsive behaviour' is defined by 'Consumers experiencing an irresistible urge to consume'. Dairy Milk Silk) based products (associated with taste and pleasure) instead of wafer-based offerings (which serve as a snack). which forms the core of its personality. With the size of the market being so big along with encouraging category growth the prospects look very good. reach and accessibility have made it the top of mind brand in the chocolate category. Since the product is not seasonal and the margin is also good makes the climate for the industry even better. Ferrero Rocher. Impulsive Chocolate Buying Behaviour and Pricing Impulsive behaviour occurs when the consumer is looking for immediate hedonic benefits. drink. Hence. which they might even regret later. Over the years the company has partnered with various other companies like Adam Philippines in 2001 so that diary milk has a much wider distribution network in the Philippines. But one of the biggest advantages the dairy milk has over its competitors is the brand loyalty that it has got.As already said Cadbury dairy milk manages a huge range of retailers and whole sellers who make up the collaborators. Whether an individual focuses on cost or the benefit of impulsiveness depends on the chronic values of the consumer. Collaborators: . It is commonly associated with urges to smoke. overspend or overeat.The climate for the chocolate industry and dairy milk in particular seems very attractive in a country like India. The excellent advertising.g. Amul chocolates & unbranded chocolate. This shows that brands 20 | P a g e . Let us explain the growth of the market at the higher end of the spectrum in recent years in chocolate category with this argument. With new innovations coming up in terms of product and packaging the market is still on a growth curve. Climate: .The main competitors of Dairy milk in India are Nestle. such individuals become insensitive to price aspect when their hedonic urge is driving the purchase decision. The product offerings on the higher end are of rich chocolate (e.

Pan-Bidi stores. research suggests that the relative accessibility of inputs such as costs versus the benefits of impulsiveness influences impulsive behaviour. This clearly means that the three main factors like demand for products. Thus. is now considered mid-priced. Sweet Shops. Consumer Trends . as prevalent in western countries. The items like chocolates are placed near the counter. The wholesaler usually deals in all kinds of FMCG goods. that 'triggered the desire' or 'highlighted the benefits of giving in to the temptation' appealed most to the hedonic individuals.the traditional Indian sweats is getting expensive and substituted by chocolates among upwardly mobile Indians. canteens.The range and variety of chocolates available in malls seems to be growing day by day. Chocolates are consumed as indulgence and not as snack food. Cadbury was the first chocolate company that took the market by storm by repositioning brands at adults.Chocolates which use to be unaffordable. Impulsiveness is unaffected by cost highlighting arguments which explains the ineffectiveness of advertisements discouraging cigarettes. . Chocolates are bought predominantly by adults and gifted to children. alcohol. Super market etc. Traditionally. Foodstuff in addition to the chocolates. But stagnancy in growth rates made the companies re-think their strategies. people prefer to buy chocolates. Gift stores. Medical Stores. 21 | P a g e . the benefits are relatively noninfluential in judgment. .Designer chocolates have become status symbols. as opposed to children. However. advertisements that justify the cost of impulsiveness can help provoke impulsiveness in such consumers. Bakeries. Diwali. chocolates were always targeted at children.command a better premium when an impulsive urge rather than functional benefits are the prime motivators for purchase. etc. which leads to lot of impulse sales for chocolate companies .Mithai. Chocolates are primarily sold through Kirana Stores. Thus. Even though chocolate buying behaviour is impulsive. When the benefit of impulsiveness was the pleasure of yielding to temptation. Instead of buying sweets on Raksha Bandhan. the prudent personalities give more value to the cost than the benefits. Almost 75% chocolates are impulse purchases. conducive regulations and customised talent are abundant in India. the advertisements.

A strong volume growth was witnessed in the early 90's when Cadbury 22 | P a g e . It is estimated that Chocolates have a potential market of about 116mn consumers. Chocolates right now reaches about 70mn to 75mn consumers. prices will fall making these products more accessible to the wider population.The majority of consumers are buying chocolates from Super market & discounted stores.0 from where the consumers are buying Chocolates Growth Opportunities in Indian Chocolate Industry Untapped Market & Limited Consumption The fact that chocolate is not a traditional food. As these markets develop. The per capita chocolate consumption in India is still much below the East Asian standards. compared to 8-10kg in the developed countries. both geographically as well as product basket wise. Hence per capita consumption has an immense scope for improvement. Chocolates in India are consumed as indulgence and not as a snack food. it is even lower. In rural areas. The details summary from where the consumers are buying is shown in the below graph. high prices and domestic production Problems will provide the main problems to market growth. Chocolate consumption in India is extremely low. Figure: 9. However the Indian market is still untapped and provides immense scope for growth. Per capita consumption is around 160gms in the urban areas.

Leading players like Cadbury and Nestle have been attempting to do this by value for money offerings. Changing Attitudes & Consumption Pattern In the past. Chocolates and other cocoa-based snack foods were looked upon as food suitable only for elitist consumption till recently.1 Chocolates Consumption Pattern Indians now prefer chocolates over other Indian sweets because of health considerations. We also believe that the near term opportunity lies in increasing penetration rather than increasing intensity of consumption. Urban consumers now buy chocolates and confectionery for everyday consumption. We have bakery chains which have launched their own brands of chocolates as an offering 23 | P a g e . they would buy them mostly during festivals. This has also helped in opening the bakery segment to the chocolate manufacturers.repositioned chocolates from children to adult consumption. have boosted consumption. "Adult chocolate consumption is getting a fillip from modern retail. But with the launch of lower-priced. Also. which are affordable to the masses. Figure: 9. more and more Indian consumers are replacing traditional sweets with chocolates. Almost 20% of chocolate sales in at the retailer come from adult chocolates. The biggest opportunity is likely to stem from increasing the consumer base. smaller bars of chocolate in the last two years and positioning of chocolate as a substitute to traditional sweets during festivals. chocolate consumption had been restricted by low purchasing power in the market. Earlier.

Growth: This stage shows growing market acceptance and increasing profits. There are five stages to the product life cycle: introduction. Costs are high due to heavy marketing spend to create awareness. 3. Competitors begin to enter the marketplace.Rural market and small town markets are seen as the key to spurring double-digit growth. So far CDM has not reached at this stage because of extension in maturity stage. growth. Introduction: Sales are slow as the product is not yet known. The business concentrates on optimising product availability. The Cadbury Dairy milk launched by Cadbury in 1905 is an example of a brand at the introduction stage. The Cadbury Dairy milk is the market leader in chocolate market with 30 % market share example of brand at growth stage. saturation and decline. 1. New product research is critical to ensure future sales.India is being leveraged for export of finished goods. The company now focuses on creating brand extensions and promotion offers to boost sales. 2. 24 | P a g e . Products such as liquid chocolate packs from the existing portfolio are expected to enable rapid acceptance. The Cadbury Dairy Milk Silk chocolate range is an example of creating brand extensions brand at the maturity stage. Emphasis is on advertising and distribution. Decline: Sales slow down dramatically and profits fall off. as a superior destination for manufacturing best practices. The product may be dropped to make way for new products and the cycle recommences. maturity. and for BPO opportunities. All the above points bring us to a conclusion that there’s an immense scope for growth of chocolate industry in India not only in its offering pattern but also for increment in its total consumption value and size. Leverage India for Off-Shoring: . Maturity: The rate of sales growth slows down as the product has been widely distributed and sold. Rural Expansion: .Chocolates which were considered to be an elitist food hit the fancy of masses looking for a change in life style at affordable cost. 4. Product life cycle of CDM The product life cycle model helps marketers identify the different stages that the sales and profits of a product go through during the course of its lifetime.

Star: . Star products generates the high amount cash but are expensive to support. analyst plot a scattered graph to rank the product on the basis of relative market share & growth rate. The Cadbury brand has been in existence since 1824 and is still the number one brand in confectionery products. 1. In reality.Figure: 10. This matrix also shows the relationship between cash-generating products & cashcaters. However. the concept runs the danger of becoming a self-fulfilling prophecy.Products in rapidly growing markets in which the company has high relative market share.0 Product Life Cycle of Cadbury Dairy Milk Chocolate The product life cycle is very useful for managers as it can act as a guide for changes in strategy at different stages in the product’s life. harvest & divest. Others manage to live indefinitely. The BCG matrix is used in business to under where to invest. They are good investment as have high earning potentials both at present 25 | P a g e . BCG Matrix Boston Consulting Group Matrix based on product life cycle approach to use the charts. Some fad products die quickly after introduction. not all products (or brands) follow the "S" curve of the product life cycle.

Cadbury India has two dogs Toblerone & Bournville. as competitors will be trying to emulate stars.Products in this quadrant are in rapid growing market but hold a relatively low market share.Dogs are in stagnant or slow-growing markets have relatively low market Share. The company’s objective is likely to be hold this position in order to obtain maximum return on investment (ROI). Question mark: . 4. One company’s dog can become another’s cash cow or even a star if they are operating in different markets or market segments.0 BCG Matrix Cadbury Chocolate India 2. Cadbury India has two star products Cadbury Dairy Milk Chocolates with 30% market share in chocolate market & Cadbury Bournvita 16. 26 | P a g e . They require little promotion although under investment can turn them into dogs so they should not be taken for granted. Cadbury India has two cash cow products Perk & Gums. Figure: 11. market in which they have relatively high market share are called as Cash Cows. GEMS & Eclairs. Cash Cows: . That investment is likely to be needed if the company wants to retain its market positions.2 % share in malted foods category (as per Nielsen data for the quarter ending March-13).& at future time. or even static. Cadbury India has three dogs 5 Star. Dogs: .Products in slow growth. 3.

and the adverse publicity received in several countries. the sales during festival season dropped by 30 per cent. however.6 crore (Rs 456 million) as compared with a 21 per cent increase in the previous year. checked over 50. In that year. The company's team of quality control managers.000 tonnes of chocolates during Diwali. Cadbury sells almost 1. The "worms’ controversy" came at the worst time….Cadbury & the Worm Controversy The discovery of worms in some samples of Cadbury’s Chocolate in early October 2003 created one of the biggest controversies in India against a Multi-National reputed for being a benchmark of quality." Cadbury’s Fight. The controversy.Back:'Project Vishwas'-“Steps to ensure quality & regain the confidence” Following the controversy over infestation in its chocolates.the next few months were the peak season of Diwali. For the year ended December 2003. the worm controversy took a toll on Cadbury's bottom-line. set back its plan of outsourcing model which would have resulted in significant revenue generation. The controversy created an deep adverse impact on the company with their sales not only drastically dipping down. Cadbury India Ltd unveiled 'Project Vishwas'. In May.000 retail outlets in Maharashtra and replaced all questionable stocks with immediate effect. 27 | P a g e . its net profit fell 37 per cent to Rs 45. several months back. The company saw its value share melt from 73 per cent in October 2003 to 69. a plan involving distribution and retail channels to ensure the quality of its products. CDM sales volumes declined from 68 per cent in October ’03 to 64 per cent in January 2004 Clearly. Cadbury’s reiterated that all through the 55 years of leadership in India that it has remained synonymous with chocolates and has remained committed to high quality and consumer satisfaction. along with around 300 sales staff. Eid & Christmas. but at the same time allowing the competitors to establish their foothold and taking maximum advantage of Cadbury’s misfortune. it inched up to 71 per cent. However.4 per cent in January 2004.

2. These helped stockists display and sell the products "safely and hygienically" 190. which was built over a period of 50 years. the communication campaign worked effectively in giving out the central message. The packaging was changed to include a sealed plastic wrapper inside the outside foil. Responded to consumers concern over the issue rapidly. Cadbury appointed Amitabh Bachchan as its brand ambassador for a period of two years. provide assistance in improving storage conditions and strengthen packaging of the company's range of products.The Vishwas programme was intended to build awareness among retailers on storage requirements for chocolates. The company believed that the reputation he has built up over the last three decades complements their own. nothing can be sweeter than Regaining Back the Consumer Confidence. Also. And for Cadbury’s India. notably worms.000 retailers in key states were covered under this awareness programme. Cadbury Singing Sweetly Again:All is well that ends well. The packaging is in response to foreign bodies. 3. 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. It helped restore consumers' faith in the quality of the product. In early January. Incisive action taken by the company also helped. Some of which were: 1. being found in its products. the entire credit of recovery could not be attributed to the brand mascot. Yet. Over the next few weeks Cadbury will work towards introducing either a heatsealed or a flow-pack packaging that offers a high level of resistance to infestation from improper storage. Cadbury Dairy Milk. Cadbury’s launched a new 'purity-sealed' packaging for its flagship product. The BIG ‘B’ Factor The big factor that has pushed up CDM sales is the Amitabh Bachchan campaign. 28 | P a g e . Cadbury reduced the number of chocolates in its bulk packets to 22 bars from the present 60 bars.

the company tailored the chocolate formula in India to prevent melting in the country’s open-air high frequency store environment. but expecting volume share to compensate for lower margins in the long run. 3. For example. 29 | P a g e . understanding that asset utilization may be lower and returns slower to arrive. including sourcing of raw materials and packaging. Other costs (indirect expenses) like travel costs and hotels were also being studied. adopting new packaging & massive advertising with Mr.The aim was to improve efficiencies.Thanks to quick action taken to recover the damage done by the worm controversy like Operation Vishwas. Local management processes:The Cadbury India team is all-Indian and has a deep understanding of local market dynamics. Success Factors of Cadbury India Limited 1. it changed the wrappers for its Cadbury Dairy Milk brand and introduced better coolers. Among other things. Cadbury’s regained its market share. with advocates in regional and global headquarters. Customized business models:Local management has set up systems to test and develop products from the ground up with specialized interlinked cells that execute innovation and market testing hand-in-hand. 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. The business is set in a way that highlights localization across all facets – driving the belief that the only way to succeed in India is by developing localized business models. Global management processes:India occupies a high profile position in the global organization. This was partly an outcome of the worms’ controversy more than a year ago. Global management has allowed the local operation a high degree of flexibility in growing the business. Cadbury is trying to reduce the cost per stock keeping unit (SKUs. 2. or packs). In other words. Amitabh Bachchan as their brand ambassador. Cadbury India appointed management consultancy firm AT Kearney to draw up a strategy to control costs in several areas.

4. Royalty Structure:Royalty to Cadbury Schweppes is around 1 per cent of the turnover. marketing and distribution have all been tailored to local market conditions. the entire Cadbury product portfolio in India has been developed locally to suit Indian consumer tastes. It continues to be one of the biggest brands in the Cadbury portfolio and offers the lowest price point at which consumers can experience the real taste of chocolate. 5. Cadbury in India has stayed ahead thanks to their constant marketing initiatives. They can also introduce new products from the parent. 5 Star and Gems. Quality products at low price:Cadbury's Eclairs was launched in 1972.Tiffins. But as compared to other companies the price are very high because of lack of competition. that have at all points in time understood the needs of and opportunities in a changing nation but Nestle had stood firm in second position resulting from their responsibilities and providing quality products. Nut Butterscotch. 8. Caramels. Subtle reengineering of raw material mix led to cost savings:Cadbury has reduced its dependence on cocoa. Brand Building:Since its inception.Cadbury India is known as a key product innovator. Packaging. Crackle. the company gets unlimited access to latest technology. 30 | P a g e . new products and so on. It appears that they have subtly altered its recipe by using less of costlier cocoa and more of milk and sugar. It was a strategy that introduced consumers to a variety of tastes and product forms leading to a rapid increase in chocolate consumption. Cadbury's launch of Perk has also contributed significantly in reducing the proportion of cocoa in the overall raw material mix. Amul an Indian company has been able to create brand quality and thus selling their product through their name. But with that. 6. Wide variety of brands:The '60s was a decade which saw the launch of brands that are etched in the hearts of generations of Indians . 7. Besides Dairy Milk. thus lowering its exposure to volatile raw material prices as well as cutting costs. if it is suitable for Indian market.25p and was an instant hit. at the then princely sum of 0.

This has also helped in improving the infrastructure and distribution reach of the company in chocolate and confectionery segment. Introducing new products:Cadbury 5 Star with its “Energizing Bar” campaign targeted the youth.was launched.the light chocolate snack . capturing the childlike spontaneity in every adult. which with its unique. It has also introduced various new chocolates like Gollum and Fruits in recent years. Cadbury launched Truffle to hit the high ground of great tasting chocolate. This decade experienced a continuous growth in volumes as Cadbury launched a flurry of brands with different pack sizes. anywhere) and has introduced new flavours like ‘Mint Hint’.9.'The Real Taste of Life' . 11. ‘Mango Tango’. multi-ingredient construct promises to take chocolates straight into the realm of snacks. at various price points. Innovative & attractive packaging:In the years that followed. 31 | P a g e . Constant diversification:Faced with rapidly changing markets and increased competition. The multi-award winning advertising campaign . Cadbury 'universalized' the chocolate market. offering them a mind and body charge. Cadbury Perk . With the introduction of Gollum and Fruits Cadbury has taken the market by surprise. Timely expansion of market:In the 90's Cadbury realised both the scope and the need to expand the market. 10. 12. This was followed by Picnic in 1998. While pre-empting competition. Moulded chocolate and éclairs also showed satisfactory growth. Cadbury invested in technology and made an impact through innovative packaging. Hitherto perceived only as a children's product. Very Strawberry’.pushed chocolates into the wider area of snacking by promising 'Thodi Si Pet Pooja Kabhi Bhi Kahin Bhi' (anytime. The now ubiquitous Sheet Metal Dispenser seen on cash counters of thousands of shops for dispensing chocolates was an innovation that helped brand the colour purple in the minds of the Indian consumer.

an effective IT infrastructure. fizzy candy.13. . 14. Through IT investment. In order to achieve this they realised the importance of and have in place. Commitment of expansion:With the launch of Trebor Googly.Incorporate best practices in the business processes. they aim to . 15. the tangy. 32 | P a g e . Information technology:At Cadbury India they believe that effective communication n and availability of information 'at the right time and the right place' is critical for an edge in business.Arrive at uniform software and business practices globally within Cadbury Schweppes. Repositioning:Cadburys has been repositioning its products for children to adults and for celebrative occasions. The extension of Googly to a Mint flavour reinforces Cadbury's commitment to establish the Trebor name as a strong player in the value added sugar confectionery market. .Minimise working capital. .Achieve flexibility of systems to keep pace with changing environments. Cadbury took the market by surprise and marked the entry of Trebor into the fast growing Indian sugar confectionery market. A repositioning campaign was arranged for dairy milk that showed adults doing unconventional things (like a lady breaking into a jig in the middle of the overflowing Cricket (stadium) driving home the message that adults could enjoy chocolate as well. .Remain competitive in the fast changing environment. .Increase speed of response to business processes.

Print. Print. Social Media TVC.e. Hoardings TVC. Hoardings. Pappu Pass Ho Gaya Youngsters Miss Palampur Rural masses Shift to smaller packs Kuch Meetha Ho Jaaye Conversion of sweet consumers to chocolate for special occassions This was an TVC.0 Review of Past Promotional Programs Source: Cadbury India Website ( Print. Print. etc.aspx) 33 | P a g e . Cadbury went ahead Social Media with the ‘Celebrations’ packs with these ads Khane ke baad Meethe mein Kuch Meetha Ho Jaaye Targeting the habit of Indians to have desserts after meals From converting sweet consumers on special occasions Cadbury now tried to sweet consumption for dessert to chocolate as well TVC. before the start of any work TVC.Review of Past Promotional Programs The details of all the past & present promotional programs are explained below: Campaign Target Shift over the years Promo Mechanisms TVC. Hoardings. Print. Hoardings Figure: 14. Social Media Shubh Aarambh Targeting the belief of Indians that anything begun by having something sweet provides good luck Converting yet another segment of sweet consumers i. gender. innovative idea and Hoardings. Hoardings TVC. Hoardings Real Taste of Life Child in adult From just for kids to the kid in every adult Khanewalon ko khane ka bahana chahiye Wider masses Appeal to a wider mass based on age.

What was Communicated. 34 | P a g e .com/in/en/home/index. From the depiction of an old man offering his wife a Dairy Milk chocolate to the dancing girl in crowded stadium. it all reflected the impulsiveness and the spontaneity of the child in the adult.The Real Taste of Life Campaign Source: Cadbury India Website (http://www.aspx) Communication Objective: . It appealed to the child in every adult and Cadbury Dairy Milk became the perfect expression of 'spontaneity' and 'shared good feelings' In every adult there is a child let that child express itself give in to temptation and satisfy his or her desire to sink teeth into a smooth creamy delicious chocolate This approach appears to be unique to Cadbury. since children loved eating chocolates.mondelezinternational.Analysis of Communication Process Real Taste of Life Figure: 14. they wanted to convey the message that there is a child in each one of us and they wanted to appeal to that child. The ad was meant to create a particular image in the eyes of the customer and successfully communicate what the product conveyed. It was an attempt to capture the child-like spontaneity in every adult.Through the ad.1 Cadbury Dairy Milk.The Real Taste of Life was launched in the 1990 s.

Through the ad.They wanted to re-create the image of a child in the eyes of the adults. What was achieved. which showed that all people. which meant a wider market for the product. it was aimed at widening the chocolate consumption among the masses and making sure the product reached a wider group of people. young guy and a child are all seen enjoying Cadbury. Why they communicated. newly married bride. an elderly lady.A widening of audience. adults realized they could and should enjoy chocolates as well. remind them of their childhood days and create an image that Cadbury essentially stood for childhood and stimulate them to buy chocolate so as to make them remember the childhood days. Through the campaign.A change in Consumer mind-set that chocolates were mostly for kids and young people.The ad reflected the fact that Cadbury could be available and eaten by all groups of people. sex etc. based on age. irrespective of their sex and age could enjoy it. “Khanewalon ko khane ka bahana chahiye” Communication objective.mondelezinternational.Why they communicated. middle-aged man. “Kuch Meetha Ho Jaaye” Figure: What was Communicated.Kuch Meetha Ho Jaaye Campaign Source: Cadbury India Website (http://www.2 Cadbury Dairy Milk.aspx) 35 | P a g e .The ad was meant to stimulate purchase intentions and enable the reach of Cadbury to a wider audience. In the ad. What was achieved.

What was achieved. “Pappu Pass Ho Gaya” Figure: 14.The ad was meant to portray Cadbury as something which can be had on all celebratory occasions. 36 | P a g e .mondelezinternational.The ad targeted youngsters and has become part of street language.The basic depiction was that the ad showed that chocolate can be showed as being enjoyed during Diwali and any other celebratory occasions.Communication Objective. It projected chocolates as a substitute to mithai (sweets) and cheered people to have chocolate on every joyous occasion. The campaign urged people to celebrate every little moment of happiness in their life with a chocolate.The idea was mainly to develop preferences among people for chocolates to sweets and stimulate the demand for chocolates in festive and joyous occasions. It has been adopted by consumers to express joy in a moment of achievement/success. Why they communicated. The ad showed association with little joys of life.aspx) Communication Pass Ho Gaya Campaign Source: Cadbury India Website (http://www.Depiction of chocolate as a substitute to sweets and the fact that it can be enjoyed in joyous occasions too. What was communicated.3 Cadbury Dairy Milk.

who had failed repeatedly. The share of Cadbury increased by more than 20% in rural India.The ad was meant to increase the reach of the product to rural areas and develop preferences for chocolates in the rural areas. “Miss Palampur” Figure: 14. Campaigns aimed at rural India did fare well. it predominantly targeted youngsters.It shows a villager enjoying the success of his cow becoming Miss Palampur. The brand further strengthened its positions with the core audience. It focused on Adults and values.What was communicated.The ad showed the coming out of results and the passing of a person called Pappu. All youngsters were seen having chocolate to enjoy their moment of success. with all having chocolates. Thus. The brand further strengthened its positions with the core audience.The ad targeted the rural parts of India. 37 | P a g e .Miss Palampur Campaign Source: Cadbury India Website ( The entire village joins in the celebration.mondelezinternational. The share of Cadbury increased by more than 20% in rural India. Why they communicated. What was achieved. like Sacred Cow campaigns aimed at rural India did fare well.4 Cadbury Dairy Milk. Why they communicated.aspx) Communication Objective.Enabling Cadbury to be portrayed as a product which can be had by youngsters to celebrate their successes.The ad was meant to reach out to youngsters and encourage them to buy chocolates. What was communicated .

mondelezinternational. Why they communicated.Shubh Aarambh Campaign Source: Cadbury India Website (http://www. What was communicated.aspx) Communication Objective. Simultaneously. The ad was established to remind consumers about the utility of Cadbury What was achieved. and is supposed to have a balanced appeal across all tiers. “Shubh Aarambh” Figure: 14.The ad depicted the starting if friendship over having Cadbury and how a bonding developed over it. consumers in the age group of 15-35 years.Cadbury has followed a well-planned strategy of fuelling volume growth by introducing smaller unit packs at lower price points.The ad was meant for the core group. The campaign is aimed at consumers across sectors. the company seems to have astutely juggled with the larger pack sizes and raised prices to a degree higher than what appears at 38 | P a g e .Enabled Cadbury to be shown as a product which can be enjoyed in rural areas too.e. i.Enabled Cadbury to re-establish itself in the eyes of the core target customers.5 Cadbury Dairy Milk. a substitute for mithai.The ad was specifically aimed at indicating a shift from the notion of celebrating happy occasions with chocolate to the happy occasions with chocolate to the concept of anticipating concept of something good after consuming the chocolate.What was achieved.

technological and environmental factors. even confectionary ones. economical. Any changes in the laws or regulations. Confectionary market is growing at a very high rate and there are still many uncovered segments that require appropriate strategic approaches. Awareness of the Food Safety Act will help the chocolate industry for sustaining in the ever growing market. Internet is a good place to sell goods. employing children or paying under minimum wage. High consumer spending and low interest rates also encourage a new product. television and the radio enable large amount of cheap advertisement. scandals and lawsuits would greatly hurt their reputation. As a result it would support the launch of a new chocolate product or a new store. so no major concerns are there to stop consumers from buying their products. For example. especially concerning international trade and food labeling could greatly affect the chocolate industry. The chocolate manufacturers need to make sure that none of the companies are breaking laws regarding production. Public opinion of chocolates is very high. (Business studies) 39 | P a g e . social. Many people are trying to eat healthy and cut down on confectionary goods and soft drinks due to the current “skinny is beautiful” trend. For a gargantuan corporation like the Cadbury’s.PEST analysis of the Chocolate Segment in India Growth and progress of a company depends upon multifarious factors which are known to have direct and apparent effects on the overall target and functioning of that company. Inspite of the economy being relatively down at the moment. it is observed that the chocolate industry has not been affected much. Otherwise. Medias such as the internet. Production is high due to advanced technologies and well equipped factories which enables high quality mass production. it is very important to keep an eye out for the butterfly effects of the political. Provides a new consumer group with access to Cadbury and allows even larger sales due to a larger overall consumer group.

class and gender. This strategy takes into account all the factors that are essential in promoting the brand like this & it pays close attention to the market demand & customer expectation. As there is huge competition in the industry therefore the brand is marketed at low profit margin in order to win market share & to maximise profit by increase the sale volume. But on the whole the strategy is good & working nicely. It has been always marketed as a chocolate having the contemporary taste but which is affordable. The Dairy Milk Brand is marketed using market penetration strategy. In our view the marketing strategy use to market the product is fair enough because this attracts the right people at right time & probably at right place. Today. Whereas the corporate strategies are cantered towards ensuring profitable growth in the market and grow shareholder value over the long term the marketing strategies are more particular which can be stated a follows:Increase sales & profit of Cadbury diary milk. “Cadbury Dairy Milk alone holds 30% value share of the Indian chocolate market”. Crackle and Roast Almond. combine the taste of Cadbury Dairy Milk with a variety of ingredients and are very popular amongst teens & adults. In our view some more efforts are required to promote the brand like some sort of unique promotion techniques to be used in order to make marketing strategy more successful. with several variants to select from and over the time it has been trying to position itself as an alternative to the traditional Indian sweet. 40 | P a g e . Sustain market share over the year through product innovation in product development and packaging the variants Fruit & Nut. Positioning diary milk as a successful alternative to the traditional Indian sweets in order to cash in the rich tradition of Indian people associated with desserts. The expenditure on the marketing of the brand also seems to be fair enough to by comparing it with the competitors.Marketing plan Dairy Milk Marketing Objectives:Over the years Cadbury dairy milk has positioned itself as an all-time favourite chocolate that is meant for all irrespective of the age.

This is mainly due to increase in market size. The Sales projections are given in the below graphs:- Figure: 16.” The availability of foreign brands such as Ferrero Rocher and Lindt in the premium segment could be hampering growth in that category. many even trading pricier chocolates with lower priced candies and confectionery. India chocolate industry will be growing at the CAGR 23% by volume between the years 2013-2018 and reach at 3.609 Tons. which drove the growth. despite launching legendary Swiss triangular chocolate brand Toblerone. Cadbury India had launched products such as Silk and Bournville.. But in recent past Cadbury has been successful in increasing its growth rate. and entered the biscuits segment in the past two years." The growth rate of sales & PAT was decreasing in the 2012-13 period. as consumers cut back on discretionary products. This was mainly due to competition that it faced because of foreign brands entering into India.1 Cadbury India Sales & net profit projections 41 | P a g e .Financial Objective Cadbury India experienced a slowdown in sales and profit in 2012. We expect Cadbury India will be growing at the same rate.41.

Their packaging has changed. Their actual Diary Milk chocolate has not been altered over time except for when being sold to different regions –Indians like creamier chocolate than do those from England so Dairy Milk in India contains more of a milk content. Geographically. This campaign targeted 42 | P a g e . The other segment is the gift segment. Segmentation: The segmentation of the market for dairy milk is based on three things. The latest drive of dairy milk is to become the national dessert of the country. although their promotions remain somewhat constant but the positioning has evolved over the years. The first one being based geography. Dairy Milks are often stocked in convenience stores and the check-out aisles of supermarkets due to impulse purchasers who are buying the chocolate for purchase and consumption now. Targeting: Starting from 1905 the purchasers of dairy milk have changed from children to all age groups. These types of consumers form a major chunk of the consumer base that the product caters to. The tradition of having a dessert after meal is present in every civilization and this is a huge segment. Giving away chocolates as gifts is a trend that is fast catching up in India Cadbury dairy milk wants to cash in on that. This limited the market for Cadbury dairy milk. This is a reason that Cadbury came out with the campaign of (‘kuch meetha ho jaye’) to make dairy milk synonymous with sweet so that it could target all the age groups. Positioning of Cadbury Diary Milk Dairy Milk chocolate bars have been in existence since 1905. The other type of segmentation is catering to the impulse purchasers. As far as segmenting the market on income there are different variants of dairy milk (Bournville and silk) targeted towards the higher class (Premium Segment) who are ready to pay the premium for extra dark chocolate. When Cadbury started its operation in India their main buyers were children and the youth who brought chocolates to celebrate special occasion. Dairy Milk bars are segmented by consumer preferences in the area and are sold more predominantly in regions which consume more snack/junk food.Segmentation. Targeting. In India it was a mentality that chocolates are for children and the adults were more inclined towards to the conventional sweets. The latest segment that Cadbury dairy milk is catering to is the dessert segment.

Not only can the chocolate bars have many different positions based on which segment they are in. reach the audience by showing them their reflection. Positioning: . secure dominance of growth markets. & has won the Indian audience thoroughly. The objective is to earn attractive and resilient returns on its investment faster and create its monopoly in the market. It has been the market leader in the chocolate category for years.Cadbury Dairy Milk excels at positioning. and. The main objective of Cadbury’s dairy milk is very clear. but also none of the positions damper the effects of other positions! Youth see with word Cadbury as a synonym for chocolate. increase usage by existing customers. We will be using market penetration as the growth strategy where the business focuses on selling existing products into existing markets. real moments (‘Mazza aa gaya’) in the initial stage. birthday gifting through Facebook. But later it tried to position itself as brand that is synonymous with sweet (‘Kuch meetha ho jaye’). carefree. 43 | P a g e . Marketing Strategy:Cadbury India Limited is always on the lookout of attractive and growing markets. special. We are Positioning Diary milk as a successful alternative to the traditional Indian sweets in unique way in order to cash in the rich tradition of Indian people associated with desserts. others see it as synonyms for sweet and love and bliss. The most recent campaign (‘Shubh Aarambh’) tries to take forward the initial positioning of dairy milk as an alternative for the traditional sweet and positions itself as something that is as auspicious as the sweet which is generally offered as ‘bhog’ to gods. It seeks to maintain or increase the market share of current products. Cadbury’s Dairy milk always aimed for the bigger bite of the Indian market. Now the target market for dairy milk is every member of the family. It believes in creating high barriers for any new entrant to enter the market. Showing small happiness and cheerful moments that we see in our day to day life is cherished by enjoying a bite of Cadbury’s Dairy milk and by adding an emotional touch to it.them and saw a change in the target market for the brand. gifting in schools (15th August & 26th Jan-13) & on birthdays. restructure a mature market by driving out competitors. In India it positioned itself as “spontaneous. gifting in offices on birthday’s & gifting with marriages invitation card & after marriage ceremony.

36 billion) people.58%.html We will be targeting the first three groups covering 94. The figures show that India represents almost 0. with variety of gift-packaging and customisation in branding.000 villages and the rest 27.34 0.105 (1. Chocolates in the corporate gifting segment is the new trend.07 1. which means one out of six people on this planet live in India.2% of the population lives in some 638. We would like to gift Chocolates on the birthday gifting segment through facebook birthday wishing option.000-Rs 20.3% 100% Population in Billion 0. Although. Sr. India is all set to take the numero uno position by 2030.53 billion people by the end of 2030. India is predicted to have more than 1.000 crore in size and a large part of this market is unorganized. the crown of the world's most populous country is on China's head for decades.272.605 (1.480 towns and urban agglomerations. We would like to target all these segments using three different age group using the same Cadbury Dairy milk in unique way.27 Figure: 16.38 0.31% of the world's population. India.The mithai market by some estimates is almost Rs 18.270. We would like to target that segment.indiaonlinepages. with 1. More than 50% of India's current population is below the age of 25 and over 65% below the age of 35. About 72. The detail marketing strategy is given in below for all the age groups. while China is on the top with over 1.27 billion) people is the second most populous country in the world.0 Age wise grouping of Indian Population Source: http://www. 44 | P a g e .360. Hospitality is another segment that is growing at a consistent rate. No 1 2 3 4 Age Group 0-18 years 19-35 years 36-65 years 66 above Total Population Percentage 38% 27% 30% 5.8% in about 5.044. Chocolates have become a premium gifting option. With the population growth rate at 1.7 % of population.

Cadbury to tie up with bigger chain of school for distribution of Dairy Milk Chocolate (Institutional Sales) on 15th Aug & 26th Jan. Child connectivity & gifting segment also being attempted as a new growth segment for the company. 20 per unit of this age group then company can increase its sales by 48 million INR & if we consider the best case of getting 6% market share then company can increase the market share by 290 million INR. The chocolates have health benefits compared to Indian traditional sweets. We have traditions of distributing sweets to all school students after Flag hosting on 15 th August (Independence Day) & 26th January (Republic Day). We propose. so that market share in this segment will be captured at faster rate. 45 | P a g e . In future this can be extended to gifting chocolates on Birthday’s & Children's day. The below graph shows the scenario if we are able to get 1 % market share in total population at the rate of Rs. CDM has more nutritional value for children's than any other sweet. Figure 16.241 billion. We would like to target this age group by gifting the chocolates in schools. Chocolates have become a premium gifting option.Marketing Plan for Age group 0 to 18 The total population in this age group is 0.1 CDM Marketing plan for 0 to 18 Age group This target can be achieved by doing the tie-ups with bigger schools like DAV Schools (700 schools across India).483 billion & we believe that the 50% population is studying in school the numbers comes around 0.

Cadbury will take great care in delivering those Chocolate gifts across India (Through distribution network).2 CDM Marketing plan for 19 to 35 Age group In future this can be extended to gifting chocolates on Valentine's Day. Figure 16. This segment can be targeted in many ways.Most of the people wishes birthday to their friends & family member on Facebook every day. We propose. 55 per unit of this age group then company can increase its sales by 189 million INR & if we consider the best case of getting 6% market share then company can increase the market share by 1.343 billion. 46 | P a g e . Cadbury to tie up with Facebook & launch the online chocolate gifting programme on facebook. By using this application you can delight your dear one by choosing the perfect Chocolate & delivering it on Birthday with your birthday message for him or her. Mother's Day. The order will be received in district distributor system. Select the Chocolate. India has 78 million active users who access Facebook (DNA News). International Women's Day. Research shows that the best way to catch this population on internet (on Facebook). Customers can choose the best Chocolate gift they want to send it across India.Marketing Plan for Age group 19 to 35 The total population in this age group is 0. Gift wrapping & Birthday message for your friend & place the order online. we deliver the emotions and heartfelt love that you send.In the application one week before birthday Facebook will give the reminder. same will be packed & dispatched by Courier at the delivery address.132 million INR. Father's Day & Friendship Day. The below graph shows the scenario if we are able to get 1 % market share in total population at the rate of Rs. Through these gifts.

Chocolates in the corporate gifting segment (gifting on Birthday at office) is the new trend. The below graph shows the scenario if we are able to get 1 % market share in total population at the rate of Rs. The possible ways of approaching all the above strategy are new geographical markets. This segment can be targeted in many ways. Hospitality is another segment that is growing at a consistent rate.Marketing Plan for Age group 36 to 60 The total population in this age group is 0. new distribution channels.286 million INR. This population can be targeted on marriages (with wedding invitation card & after marriage gift).3 CDM Marketing plan for 36 to 65 Age group Cadbury is focusing on new channels & institutional sale as a means to growth. 100 per unit of this age group then company can increase its sales by 381 million INR & if we consider the best case of getting 6% market share then company can increase the market share by 2. on festivals. Figure 16. Chocolates have become a premium gifting option.This is majorly working population of India.381 billion. with variety of gift-packaging and customisation in branding. 47 | P a g e . special occasions & many more occasions. different pricing policies to attract different customers or create new market segments. and. new product dimensions or packaging.

The distribution structure is such that Cadbury dairy milk chocolates are sold directly to the retailers and 48 | P a g e .The product Diary Milk is a chocolate bar that is made from real dark chocolate. The components that are used in making the chocolate are sugar.2 Gram Rs. cocoa butter. The various variants of dairy milk are Wowie.The company has five company owned manufacturing capacities in Thane. Temptations (roasted almond. Crackle. 55 Super Premium Dairy Milk Silk 145 Gram Rs. 125 Super Premium Dairy Milk Silk Fruit & Nut 145 Gram Rs. 125 Super Premium Dairy Milk Orange Peel 145 Gram Rs. vegetable fats. The sale offices are located in the metros and the head office is located in Mumbai. The amount of milk content in dairy milk is the highest as compared to other competitors. 55 Premium Dairy Milk Silk Fruit & Nut 60 Gram Rs. Crunchie.6 Gram Rs. 35 Premium Dairy Milk Silk 60 Gram Rs. rum raisins and raisin apricot). Malanpur (Gwalior). 10 Value Dairy Milk 38 Gram Rs. cocoa mass and emulsifiers. Fruit and Nut.The Marketing Mix of Cadbury Dairy Milk Chocolate (CDM) Product: . Bangalore and Baddi (Himachal Pradesh). The price list is given as follows:Segments Product Pack size Rate Value Dairy Milk 9.Cadbury Dairy Milk has always adopted a competitive pricing strategy for the basic product whereas has gone for premium pricing on the other variants. Price: . The design of the chocolate is nearly same throughout the world with slight changes that are made according to the different regions. Induri (Pune). 55 Premium Dairy Milk Orange Peel 60 Gram Rs. 125 Place: . 22 Mid-Tier Dairy Milk Crackle 42 Gram Rs. Bournville and Silk. 35 Mid-Tier Dairy Milk Fruit & Nut 42 Gram Rs. 35 Mid-Tier Dairy Milk Roast Almond 42 Gram Rs. 10 Value Dairy Milk 17 Gram Rs. 5 Value Dairy Milk Shots 18.

Typically it is said that chocolates are being eaten when everyone is happy. Apart from the mass media the other strategies include making dairy milk a visible brand in the market and encouraging free samples through competitions to gain trust and familiarity among the target audience. Creation of a strong brand is very important in the confectionery industry. The advertisements are used to create and emotional bonding with the consumers and hence are high on the emotional content. Someone who is with you through the ups and downs of life.the whole sellers. radio. OOH and Internet. when happy -a whole range of emotions. A career path in Sales & Marketing can offer experiences in areas sales management. especially in the Sales & marketing environment where the success or lack of success is directly attributed to talent. it can be said chocolate is a true soul mate. Human Resource:HR’s role continues to be critical in the Chocolate industry. helping you bounce back. Condensing these views & thoughts. Cadbury’s distribution network used to encompass 2100 whole sellers and 450. Almost 80 percent of the chocolate purchases are unplanned and are on impulse.000 retailers. But it is found chocolates are eaten under diverse conditions and moods . The Cadbury Fit: Essential Requirements for Sales Force - MBAs from premier institutes with 2 to 10 years of Sales and Marketing experience preferably in an FMCG Influencing and networking skills Strategic and breakthrough thinking High energy and commercial orientation Ability to effectively analyze data 49 | P a g e . The promotions have been done keeping in mind to increase brand loyalty and to encourage repeat purchases at the same time increasing market share. when they are sad. Promotion: . print. The media mix for any campaign for diary milk comprises of TV. exposure to marketing plans.when people are anxious. brand analysis and new product development. And that's what Cadbury's Dairy Milk (CDM) positioned itself as . And this is something advertising has always portrayed. brand initiatives.a special friend. The print media is for making the consumers more knowledgeable about the brand and digital media is used for more targeted two way communication. Over the years dairy milk has concentrated heavily on TV advertising but lately there is a shift towards digital media.

child connectivity and value for money offering to be the key growth drives. over the next years. And is not effected by insects. Right pricing will make or break the product Success. even confectionary ones. beliefs. Internet is a good place to sell goods. attitudes. So we think that bringing online sales(through facebook) & increasing the institutional sales(in unique way) would bring prosperity and increase the sales of Cadbury’s as a whole again resulting in the goodwill of the company.  One new major product from International portfolio should be launch in India every year. (Business studies)  Many new players are trying to enter Indian market so it should formulate new strategies so as not to lose market share.  They need to maintain high standards and should be careful that there product remains sterile.  Grow volume sales at least 20% p.  New channels such as gifting.) and the radio enable large amount of cheap advertisement.  They should bring many more flavours of Dairy Milk.Conclusion The Indian Chocolate Industry is a unique mix with extreme consumption patterns. Pricing is the key for Cadbury’s to make their product reach to every consumer houses. 50 | P a g e .  Medias such as the internet (Facebook. There’s also an immense scope for growth of chocolate industry in India.a. Recommendations  Maintain dominance in chocolate segment. geographically as well as in the product offering. Understanding the consumer demands and maintaining the quality will be essential.  FDI will bring in many new products and competitors so Cadbury will have to maintain their strong market distribution channel so as not to lose market share. Google+ etc. Provides a new consumer group with access to Cadbury and allows even larger sales due to a larger overall consumer group. income level and spending.   www. Chocolate Science & Technology by: Emmanuel Afoakawa ---------------------------XXXX-------------------------- 51 | P a g e .com/in/en/home/index.wikipedia.thehindu.Bibliography References:   www. Cadbury’s Purple Reign-The Story Behind Chocolate’s Best-Loved Brand By: John Bradley   Books Referred:  www.