Introduction Cadbury plc, formerly known as Cadbury-Schweppes plc, before it demerged from its Americas Beverages manufacturing
business in 2008 (Peston, 2008), is the world¶s leading confectionery manufacturer and distributor. Cadbury plc ³operates in over 60 countries, works with over 35,000 direct and indirect suppliers and employs around 50,000 people´ (Cadbury India Ltd., 2008). (i) Cadbury¶s Vision Statement According to CEO Todd Stitzer, Cadbury¶s vision statement is outlined in its Vision In Action (VIA) plan (refer to Appendix A), that covers the company¶s plans for the next 4 years. Our objective is to deliver superior shareholder returns by realizing our vision to the be the world¶s biggest and best confectionery company. We are currently the biggest, and we have an enduring commitment to become the undisputed best. At the heart of our plan is our performance scorecard, delivered through our priorities, sustainability commitments and culture (Cadbury plc, 2008). Cadbury plans to ³deliver superior shareholder returns´ (Cadbury plc, 2008) by measuring its financial progress in the areas of growth, efficiency, capabilities and sustainability from 2008 to 2011 (Cadbury plc, 2008). (ii) Cadbury¶s Mission Statement Cadbury¶s mission statement outlines its overall business objective and its commitment to its customers. Our core purpose ³Working together to create brands people love´ captures the spirit of what we are trying to achieve as a business. We collaborate and work as teams to convert products into brands. Simply put, we spread happiness! (Cadbury plc, 2008) Furthermore, Cadbury stresses the importance that it places on quality. Apart from its mission statement, it also references the slogan, ³Cadbury means quality´ as an integral part of its business¶s activities (Superbrands, 2008). Lastly, Cadbury also aims to put ³A Cadbury in every pocket´ (Karvy Research, n.d.) by targeting current consumers and encouraging them to make impulse purchases and by maintaining a superior marketing mix (Karvy Research, n.d.).
candy and gums categories (Cadbury India Ltd. 3) segment of the market (Chatterjee.. Rs.Cadbury India Ltd. albeit with different business strategies and approaches. 2000). milk food drinks. 2008). 5 (about 0. income.6 billion CAD) chocolate market (Gupta. Its history of operating in the country and its average level pricing of chocolate bars. Cadbury plc manufactures and sells three different kinds of confectionery: chocolate. (ii) Consumer segments served and advertising/promotional strategies used Cadbury India Ltd continuously markets Dairy Milk as a relatively inexpensive treat. also utilizes the same mission and vision statements of its parent firm when operating in the Indian market.. one year after the country was made independent from the British Empire) (Cadbury Dairy Milk. 2006). but not affordable for those who buy from the less-then-3-rupee (Rs. towards market segments divided by age. 2008) but also in the fact that it is priced relatively cheaply (Chatterjee. in an attempt to appeal to adults as well as children (Cadbury Dairy Milk. 2008). affordable pure milk chocolate for many Indian customers (Cadbury Dairy Milk.50 billion (around 1. 2008. Even its smallest Dairy Milk bar. 2008). Since Cadbury¶s activities vary from country to country. this report will simply examine the activities of Cadbury India Ltd in the Indian market. of which 30% is directly due to the success of its Dairy Milk product. technological knowledge and health-consciousness. the 13 gram version. 2003). as the Indian subsidiary of this confectionery giant. This report will examine two different products offered to the Indian market by Cadbury India: Cadbury Dairy Milk (chocolate category) and Cadbury Bournvita (milk drinks category). has been designated its flagship brand (Cadbury India Ltd. the company stated promoting the chocolate for ³the kid in everyone´.
. Chatterjee. affordable by many middle-class Indians as an occasional treat. 2008). which averages sales of around 1 million bars per day (Cadbury Dairy Milk. Products offered by Cadbury India Ltd. (a) Cadbury Dairy Milk (i) Pricing Cadbury India enjoys controlling 70% of the confectionery market in India. 2008). candy and chewing gum (Cadbury India Ltd.13 CAD). 2008. has made the Cadbury dairy Milk bar synonymous with high quality. Marketing Communications. its product line is split up into the chocolate confectionery. 2006) and is relatively affordable by the Indian masses. Part of Cadbury Dairy Milk¶s success lies in its shared history with India¶s identity (it was first sold in 1948. but in the Indian market. is priced at Rs. 6. as such.. Cadbury Dairy Milk bars are Cadbury India¶s cash cow in the country¶s 4000 tonne. one of the fastest growing confectioneries markets in the world (Financial Express. In the 1990¶s. 2008).
Cadbury will need to address the needs of this market segment in order to boost its sales of Dairy Milk. 2008).In order to appeal to potential lower-income customers in the villages of India. Cadbury India continuously develops new versions of its Dairy Milk brand in order to keep its adult and children consumers satisfied and interested. 2008). lower income consumers who buy from the less-than-3-rupee range of chocolate cannot afford to buy Cadbury Dairy Milk regularly. 2008) which are meant for snacking. who wish to enjoy the taste of dark chocolate but also its health benefits (Financial Express. Cadbury Dairy Milk was voted one of the India¶s most trusted brands in a poll conducted in 2005 (Cadbury Dairy Milk. Cadbury managed to capture the attention of the nation and cement its market share superiority in India (Cadbury Dairy Milk. Variations include the Fruit & Nut and Crackle & Roast Almond variations (Cadbury Dairy Milk. In fact. Lastly. Analysts Meet. Indian consumers seem to be satisfied with Cadbury Dairy Milk as its marketing promotes it as an occasional indulgence. 2007). which allowed students across the country to check their examination grades online and celebrate with Cadbury¶s Dairy Milk if they did well (Cadbury Dairy Milk. as Cadbury Dairy Milk is their ³Gold Standard´ for chocolate. 2008) attempted to absorb these customers into its market share. 1999). further marketing in the form of the ³Real taste of life´ campaign (Cadbury Dairy Milk. 2008). similar to the Dairy Milk bar. 2008) clearly targets the child segment of its market. 2008). 2008). The Cadbury Bournville Dark Chocolate bar. Nowadays. a branch of India¶s largest network service provider. Cadbury Dairy Milk Wowie. as well as the Cadbury Dairy Milk Desserts. 2008). 2008. adults and technologically-savvy consumers. the most notable being its ³Pappu Pass Ho Gaya´ (Pappu Passed!) joint venture operation with Reliance India Mobile. but it does not serve those segments of the market that have been divided by income levels. Furthermore. with Disney characters embossed on each chocolate square (Cadbury Dairy Milk. television. despite popular opinion that it is a relatively expensive luxury product (Cadbury India Ltd. ³to cater to the urge for µsomething sweet¶ after meals´ (Cadbury Dairy Milk. (iii) Product Positioning
. targets the healthconscious market segment of the chocolate market. By using opinion leaders from Bollywood and using extensive advertising in newspapers. where the ³pure taste of Cadbury Dairy Milk defines the chocolate taste for the Indian consumer´ (Cadbury India Ltd. This restrained marketing has allowed the chocolate to slowly become a measure of quality for many Indians. Although Dairy Milk is affordable to the upper and middle-income consumers who view it as a mid-priced item (Kochhar. Marketing Communications.. magazines and massive billboards across the country. Cadbury¶s market segmentation is quite effective because it allows them to target all three major market segments: children. Cadbury¶s is trying to tap into the potential market of younger generation Internet users by offering contests and hosting competitions online.
Cadbury India controls around 70% (Cadbury India Ltd. so by at least promoting the fact that it has been operating in India for almost as long as Amul.Cadbury India Ltd¶s main sources of competition come from Amul. The new extra-layer packaging of chocolate that is now being used in the manufacture of Dairy Milk is a good first step to take in reclaiming some of the public¶s trust (Vivek. Although this has allowed it to control more of the market than its closest competitors. whereas Amul controls around 2% (Dobhal. 2008) was no longer gold. safety and consumer satisfaction was only reinforced when Cadbury India¶s Chinese-made products were found to be contaminated with worms and melamine (Sinn and Karimi. In order to position its products as safe and affordable treats once again. Cadbury India must maintain its current marketing strategy but slowly start to promote Dairy Milk as a household good so that consumers spend their rising disposable incomes on it and boost its sales (Rai. Cadbury India may have misinterpreted the popularity of Dairy Milk as a sign that the Indian public has accepted it as a household product. Nestle¶s subsidiary in India. This.. Amul¶s reputation for credibility.d. its chocolates are viewed as being local and not luxurious.
. where the regular consumption of so-called luxury chocolates such as Cadbury Dairy Milk is viewed as fashionable (Kochhar. Cadbury simply cannot match this kind of national endorsement. In fact. 1999) and not as household goods. 2008). 2004) has promoted the use of status symbols. Amul¶s origins as a community welfare program in Gujarat. 2008). As mentioned earlier.d. n. justifying a lower price tag (Chansarkar et al. in combination with the longest running advertising campaign that Amul is famous for gives it a brand awareness boost. it can try to be ³Indian´ too. one of India¶s most industrialized states. even if the company has to run at a loss for a few months.). As seen in Appendix B. the reasons for its success may also lie in the fact that many Indians still view its chocolates as luxury products (Cadbury India Ltd Analysts Meet. 2008) spanned the decades during which newly-independent India forged its identity. as this will eventually allow it to negate some of the extensive damage that this negative publicity has to the firm¶s reputation. 1999).) and Nestle India around 27% (Nestle to expand. 2004). This contradicts Cadbury¶s assertion that its leadership is maintained by a ³superior marketing mix´ (Karvy Research. Cadbury¶s main strength comes from it ability to market Dairy Milk products ³through altering the theme and functionality of the product as the time demands´ (Cadbury India Ltd Analysts Meet. to becoming a national enterprise (Amul. Moreover. India¶s own dairy company and Nestle India. as people¶s confidence in its safety was shattered.. The ³Gold Standard´ (Cadbury Dairy Milk. 2006). the booming economy and the increasing affluence of the burgeoning middle class (Basu. Cadbury India should make attempts to be even more sensitive to consumer demands. thus becoming an integral part of India¶s identity and giving its marketing strategy a new source of authority. 2008) of the chocolate market. Customer satisfaction must be given the utmost importance. 2006). n. 2007). nor was it a standard anymore. Despite Amul¶s longer history in India.
This accounts for their soaring annual market growth rates of 18% annually (Indian Express.Lastly. concepts that Cadbury India has yet to explore. Amul¶s innovative ideas will be the bane of Cadbury. and it uses this extensively to promote Cadbury Dairy Milk all over the country.
. 1999). In comparison to Nestle India however. Cadbury India¶s longer track history gives it a competitive edge. Nestle still has to break into the Indian market. Cadbury has more of a brand recognition power than Nestle has. Cadbury will be able to position its chocolates as chocolate specifically designed for India. 2007) as well as chocolates for festive seasons allow them to rapidly sway consumers over to their products. Their release of diabetic friendly chocolate and chocolates catering to different ethnic flavours (Janve and Dogra. such as chocolates for Diwali and Rakshabandan (two different Indian festivals) (Kochhar. endearing it to the consumers and boosting its sales. the production of chocolates specifically for the festive seasons of India. one way to do this would be to follow Amul¶s lead and develop and market products that meet specific ethnic needs. By doing so. Cadbury India must counter this threat that Nestle and Amul pose. 2007) . namely.