You are on page 1of 81

Integrated marketing communication

ON

SUBMITTETD TO
SUBMITTED BY:
Prof.Dr.MADHAVI PANDYA
P.SANDEEP(M5-50)

THOMAS DON(M5-42)

SAI SASIKANTH(M5-52)
Contents
Overview of the Company:....................................................................................3
Cadbury’s CSR Vision and Strategy....................................................................5
OVER ALL TURN OVER........................................................................................6
CHALLENGES OF CADBURY....................................................................................8
Cadbury challenges commuters with 'Eyebrow Language'......................................................8
WHAT IS BRAND?.................................................................................................10
DEVELOPING A BRAND.....................................................................................11
CADBURY: THE BRAND.....................................................................................12
COMPETITORS:.................................................................................................12
BUILDING A MEGABRAND: CADBURY DAIRY MILK.............................................17
SCOPE OF THE MEGABRAND.............................................................................18
Cadbury Advertising Timeline their products:-.................................................20
CADBURY AND ITS PRODUCTS.............................................................................22
Bar and a Half................................................................................................24
INTRODUCING CADBURY AS AN AFTER DINNER SWEET................................28
INTERSTING FACTS OF CADBURY.........................................................................29
COMMUNICATING STRATEGY...............................................................................30
Distribution and Selling strategy:........................................................................32
SWOT ANALYSIS...................................................................................................34
BUSINESS OVERVIEW...........................................................................................35
INTEGRATED MARKETING COMMUNICATION OF CADBURY..................................37
Marketing communication mix elements..........................................................37
ADVERTISING THEIR PRODUCTS IN DIFFERENT WAYS......................................38
OTHER MARKETING MIX ELEMENTS OF CADBURY................................................45
5 P’S Of Cadbury..................................................................................................46
Segmentation, Targeting, and Positioning...........................................................52
OVERCOMING THE WORM CRISIS USING IMC.......................................................57
STEPS TAKEN TO SOLVE THE CONTROVERSY...................................................59

2
Future Strategy....................................................................................................62
CORPORATE SOCIAL RESPONSIBILITY..................................................................64
Error: Reference source not found

Overview of the Company:

Cadbury India is a food product company with interests in


Chocolate Confectionery, Milk Food Drinks, Snacks, and Candy.
Cadbury is the market leader in Chocolate Confectionery
business with a market share of over 70%. Some of the key
brands of Cadbury are Cadbury Dairy Milk, 5 Star, Perk, Eclairs,
Celebrations, Temptations, and Gems. In Milk Food drinks
segment, Cadbury's main product - Bournvita is the leading
Malted Food Drink in the country.

Its heritage can be traced back in 1824 when John Cadbury


opened a shop in Birmingham selling cocoa and chocolate.
Since then we have expanded our business throughout the
world by a program me of organic and acquisition led growth.
On 7 May 2008, the separation of our confectionery and
Americas Beverages businesses was completed creating
Cadbury plc with a vision to be the world's BIGGEST and BEST
confectionery company.

• Make and sell three kinds of confectionery: chocolate, gum


and candy

• Operate in over 60 countries

3
• John Cadbury opened for business in 1824 - making us nearly
200 years young

• Working with around 35,000 direct and indirect suppliers

• Employs around 45,000 people

• Every day millions of people around the world enjoy our brand

Cadbury is the world's largest confectionery company and its


origins can be traced back to 1783 when Jacob Schweppe
perfected his process for manufacturing carbonated mineral
water in Geneva, Switzerland. In 1824, John Cadbury opened in
Birmingham selling cocoa and chocolate. Cadbury and
Schweppe merged in 1969 to form Cadbury Schweppes plc.
Milk chocolate for eating was first made by Cadbury in 1897 by
adding milk powder paste to the dark chocolate recipe of cocoa
mass, cocoa butter and sugar. In 1905, Cadbury's top selling
brand, Cadbury Dairy Milk, was launched. By 1913 Dairy Milk
had become Cadbury's best selling line and in the mid twenties
Cadbury's Dairy Milk gained its status as the brand leader.
Cadbury India began its operations in 1948 by importing
chocolates and then re-packing them before distribution in the
Indian market. Today, Cadbury has five company-owned
manufacturing facilities at Thane, Induri (Pune) and Malanpur

4
(Gwalior), Bangalore and Baddi (Himachal Pradesh) and 4 sales
offices (New Delhi, Mumbai, Kolkota and Chennai). Its corporate
office is in Mumbai. Worldwide, Cadbury employs 60,000
people in over 200 countries.

BOARD OF DIRECTORS

C Y Pal - Chairman

Matthew Cadbury - Managing


Director

Rajiv Wahi - Vice Chairman

Jaithirth Rao - Director

S N Talwar - Director

Rajeev Bakshi - Director

Harsh Mariwala - Director

N V Iyer - Director

David Kappler - Director

B Puri - Executive Director

P Chhaya - Executive Director

J Strydom - Executive Director

G Sridhar - Executive Director

G M Bhat - Executive Director

Cadbury’s CSR Vision and Strategy


 Cadbury is committed to growing responsibly. They
believe responsible business comes from listening and
learning, and having in place a clear CSR vision and
strategy.

 Vision – ‘Working together to create brands people love.

5
 They see CSR as a positive contributor to their
competitive strategy. Increasingly they think of it as more
about doing responsible things profitably than just doing
the profitable things responsibly.

 CSR strategy – Five Pillars of CSR: marketing, food and


consumer trends; ethical sourcing and procurement;
environment; quality, health and safety; human rights and
employment standards; and community investment.

OVER ALL TURN OVER

The confectionary industry in India is in its growth stage.


This marketing Research data from the industry shows that the
industry has been making impressive growth in the Indian
economy. The confectionary industry is divided into the flowing
specific industrial sectors: Chocolate, Hard-boiled candies,
Éclairs and toffees, Chewing gums, Lollipops, Bubble gums, and
Mints and lozenges (Laura, 2008).

The total confectionary market is valued at about 41


billion Indian Rupees. It has a total turnover of about 223500

6
tones of confectionary produced every year. This is a huge
overall turnover which is equal to that of established markets.
Most the confectionary are consumed in the urban areas. The
urban market constitutes about 73 percent of the total market.
This is a skewed market share compared to the rural market
which accounts for about 27% of the total market.

This market data shows that the rural market has not
been well tapped into. With more than 50 percent of the
Indians living in the rural areas, it means that there is a high
potential in the rural market (Cadbury, 2008).On the product
share of the market, hard boiled candy accounts for about 18%
of the market, Éclairs and Toffees has about 18% of the market
share, while gums and mints and lozenges are at par
accounting for 13 percent of the market share each.

However chocolate has recorded the highest market


growth rate recording about 23 percent growth rate. This is a
higher growth rate compared to other markets in the world.
However the overall sugar confectionary segment in the Indian
market has been declining with a total decline of about 19
percent recorded in 2007 (Laura, 2008).

Cadbury with a number of products including Daily Milk,


Perk, Gems, 5 Star, Celebration, Bytes, Dairy Milk Éclairs,

7
Éclairs Crunch, Mr. Pops and Halls is the leading player in the
chocolate segment, Éclairs segment, Lollipops, and the Mints
Segment (Cadbury, 2008).

Cadbury is also the leading player in the milk beverage


segment which is valued at 16.1 billion Rupees. This segment
has an annual turnover of about 63,000 tones and has been
growing at a rate of 10.1 percent. Here Cadbury is the main
player with Cadbury Bournvitta and Cadbury Bournvitta 5 Star
Magic (Cadbury, 2008).

CHALLENGES OF CADBURY
Cadbury challenges commuters with 'Eyebrow Language'

8
Cadbury is capitalizing on the success of its global
"Eyebrows" campaign with a Canadian print and OOH campaign
called "Eyebrow Language."

Targeting the younger end of the adult demographic, the


campaign's creative is based on the "Eyebrows" TV spot, in
which two kids with crazy eyebrows pose for a photo. The
"Eyebrow Language" creative, made exclusively for the
Canadian market, features ‘brows in different shapes that
readers can translate into letters and words. Depending on the
medium, the message either offers the reader a chance to win
a prize or, in the print ads, to participate in a stunt executed at
a specific time and location. On Monday, the decoded
newspaper ad invited readers, hundreds of whom showed up,
to a sidewalk at College Park in Toronto, where they were to
twirl, clap and yell "chocolate" to win a prize.

The media buy, handled by Cossette with creative by The


Hive, are focused on Toronto and Vancouver, and include daily
commuter newspapers, a billboard at Yonge-Dundas Square in

9
Toronto, transit ads in both cities and an online banner buy.
Launched last week, the commuter-paper ads are running three
days a week for four weeks, changing each time, as are the
OOH ads.

"We really wanted to make sure this had high impact with
the consumer," Nina Purewal, brand manager, Cadbury Dairy
Milk, tells MiC. "This is a very engaging promotion and, as you
can see as you go through the elements, once [people] have
committed to the promotion and decoding the messages,
they're really committed. It's really all about high
engagement."

The campaign has also taken over the Dairy Milk website,
which opens to a secret eyebrow message and Eyebrow
Language decoder overlay. The site also includes extra phrases
to decode and a ringtone of the song from the ad to download.
Visitors can also watch the original "Eyebrows" ad that first
aired in Canada Sept. 14.

10
WHAT IS BRAND?

A brand is a name sign symbol slogan or design or a


combination of these, intended to identify the goods and
services of one seller and to distinguish them from those of
competitors". Branding helps differentiate products and can be
a powerful tool of competitive strategy. While products can
come and go over time, brands (if properly managed) can live
indefinitely. Brands have many benefits for companies and
consumers. For companies; strong brands add value, and
consumers develop positive associations with the brand and are
less likely to purchase competitors’ products. This means the
brand can act as a barrier to competition. For consumers,
brands help them to quickly identify products and make
shopping easier. Strong brands carry a guarantee of quality
which consumers trust and are often willing to pay more for.
Consumers will pay a premium price for a branded product if

11
they believe they it provides a higher value.
Building strong brand is an important marketing strategy for
companies, enabling premium pricing and making widespread
distribution easier to achieve. Brand loyalty helps create and
sustain high sales and profit. Brand equity is the value of a
brand based on the extent to which its has brand loyalty, brand
name awareness, perceived quality and strong brand
association.

DEVELOPING A BRAND

A brand identity is the message sent out by the brand through


its name, product shape and design, visual symbols (such as
logos), advertising etc. This identity needs to be planned by
brand management, as this is key to gaining market acceptance
and leadership.

The Brand Pyramid

Brand Meaning

Brand core

Brand proposition

Brand style

Brand themes

The top tier of the pyramid consists of the br and core.


Brand core

12
physical appear ance etc. Brand themes are flexible and change
with
physical appear ance etc. Brand themes are flexible and change
with
A brand pyramid can help managers plan and analyze a brand’s
identity. The top tier of the pyramid consists of brand core.
Brand core values are the genetic code of the brand and
remain the same overtime. Closely related to these values is
the brand proposition : the promise the brand makes to the
consumer. This proposition should be easy to understand and
appeal to the target market. The middle tier represents the
brands style or elements of the brands’ identity that represents
the self image of the brand of the brand and need to be
relatively stable over time. The base of the pyramid is formed
by the brand themes which are concerned with the brand
currently communicate through its advertising, packaging,
fashion, technological developments and changing consumer
tastes.
physical appear ance etc. Brand themes are flexible and change
with
.
The brand pyramid helps managers understand the strengths of
the brand and ensure consistency of its message. This also
helps to identify the opportunities for brand stretching and
brand extensions. A brand extension is the use of a well known
brand name on a new product category. We will discuss this in

13
relation to the DAIRY MILK brand. Brand starching is the use of
an established brand name in unrelated markets or product
categories , e.g. using a well known designer name on
cosmetics, clothes, sunglasses etc, such as “John Rocha
Waterford Crystal”.

CADBURY: THE BRAND

The brand CADBURY enjoys a high level of brand equity.


Researches show 90% of the people recognizes the brand while
74% state that when it comes to chocolate only CADBURY will
do.

COMPETITORS:
1.Nestle
2.GlaxoSmith Con
3. Britannia
4. Kwality Dairy

Amitabh Bachchan is Cadbury brand ambassador

14
Cadbury India Ltd has announced that mega star Amitabh
Bachchan will be the company's new brand ambassador.

He will endorse and promote Cadbury chocolates for a period of


two years. As brand ambassador, he will play a key role in
brand and product communication on television, in print and
outdoor media.

Cadbury has launched a strengthened, new 'purity sealed'


packaging for Cadbury Dairy Milk. The new packaging for 13g
(Rs 5) is double wrapped for maximum protection. The
chocolate is wrapped in aluminum foil and enclosed in a poly
flow pack, which is completely sealed on all sides. In the
second phase, the larger Cadbury Dairy Milk packs will come in
poly-coated aluminium foil, which will be heat-sealed and then
wrapped in the branded outer package. Both these steps are a
'first ever' in chocolate packaging in India.

"Over the last few months, we have had some cases of


infestation due to improper storage conditions. As a company
committed to ensuring that our consumers enjoy a pristine bar
of chocolate each time, we decided to take steps to reduce
dependency on storage conditions to the extent possible," said
Bharat Puri, managing director, Cadbury India Ltd. "Cadbury
will do everything it can to ensure that every bar of chocolate
that a consumer buys comes full of goodness and rich taste."

Commenting on Amitabh Bachchan as brand ambassador


for Cadbury chocolates, Puri said, "There is a perfect fit

15
between Amitabh Bachchan and Cadbury chocolates - their
timelessness, and the love and trust they both
share with the people across India, makes this an
ideal partnership. Moreover, Mr Bachchan has a
universal appeal that extends to everyone from 6
to 60, just as our chocolates do.

We believe his endorsement of Cadbury Dairy Milk will go


a long way towards our objective of increasing chocolate
consumption among all ages of consumers."

Amitabh Bachchan said, "Most of you may not know this,


but I have been a brand ambassador for Cadbury for the last 55
years. Only, now it is official. Bringing smiles, spreading
happiness and joy amongst millions of people in India is what
Cadbury and I shall be continuously working towards."

The new 13g (Rs 5) Cadbury Dairy Milk packaging is


currently available only in Maharashtra and the national rollout
will take place over the next three weeks. New packaging for
the larger bars of Cadbury Dairy Milk, Fruit & Nut, Crackle,
Bournville, Caramello, and Double Deck will be completed in six
weeks.

There are three main brand name strategies:

Family brand names: The parent brand is also known as an


“umbrella” brand. This term is given to product ranges where

16
the family brand name is used for all products. The advantage
of this approach is the positive associations with the parent
brand will transfer to all sub brands. The risk however is that
that if one brand is unsuccessful or falls into disrepute, the
reputation of the complete family of brands can be tarnished.
Cadbury is a family brand .

Individual brand names (or multibrands):


In this case each
Individual brand names (or multibrands):
In this case each
Individual brand names (multi brands): in this case each
brand is created and named separately and has separate
identity. Using a family brand may not be that suitable as brand
values may be far apart.

Combination brand names: This approach allows for the


optional use of the corporate brand name, while allowing an
individual brand to be identified, e.g. Cadbury Dairy Milk.

17
Cadbury uses a combination of brand strategies. The family
brand ,Cadbury is linked with its famous sub brands , i.e.
Cadbury Crème Egg, Cadbury Roses and Cadbury Flake to name
a few. The family brand identity is style communicated by
packaging with the Cadbury corporate purple color and the
distinctive Cadbury script logo. The sub brand is then
distinguished by its own individual livery.

Recently marketers have identified particularly strong family or


corporate brands as MASTERBRANDS. Cadbury is such a brand.
However, a true Masterbrand is more than name of the
company – it incorporates the company’s mission, vision and
values, representing them in a way that is easily understood by
consumers. IBM is another example of MASTERBRAND.

Cadbury’s core brand values include "life’s everyday pleasures


that make us feel good and never let us down. As a reward or a
pick me up, we consumer s trust Cadbury chocolate to make us
feel better.
18
BUILDING A MEGABRAND: CADBURY DAIRY MILK

19
20
21
22
Family brand names
:
The parent brand is also known as an
In the last year there has been a major development in brand
strategy at Cadbury Ireland. The Cadbury Dairy Milk brand has
been stretched to become a family brand in its own right. Of all
the successful Cadbury brands, the one with the greatest
loyalty is Cadbury Dairy Milk. In 2002 more than 19 million
Dairy Milk products were sold. Cadbury made a strategic
marketing decision to leverage the value of the Dairy Milk brand
(i.e. optimize the market potential of the brand ) by elevating it
23
to a Megabrand or range brand.

A Megabrand or range brand spans an entire range of products,


creating, relationships with products which may have been
previously unseen by customers.

The rationale for a mega brand:


1. The Megabrand concept can help provide structure and unity
to a strategy.
2. A Megabrand strategy can add visibility to products and
provide greater credibility to consumer s for a variety of offers
under the brand. In addition, it is easier for consumer to try new
offers from their trusted brand.

Megabrands provide economies of scale as the fixed costs of


maintaining a brand name can be spread across the sales of
numerous product lines. Creating and maintaining brands has
become very expensive. Stand alone it increasingly difficult to
compete with Megabrands.
Other factor s leading to the emergence of the Megabrand
include growing
Pressures and greater global competition. Megabrands are
better resourced and have a greater chance of success than
standalone brands.

24
SCOPE OF THE MEGABRAND

When developing a Megabrand, products are chosen for


inclusion on the basis of their compatibility with the brand’s
identity. For Cadbury, the (blocks) chocolate brands were
included as they were perceived as variants of Dairy Milk. The
core proposition of the new Dairy Milk Megabrand could be
described as ‘delivering recipes for lives upbeat occasions - i.e.
no matter what your humor or the occasion, Cadbury Dairy Milk
will provide the perfect accompaniment.
Two products in the Cadbury range created a dilemma: Wispa
and Caramel. Both were standalone products with distinctive
identities. Both had a loyal consumer base high should not be
abandoned. To incorporate these products into the Dairy Milk
range called for a fresh strategy.
Both were blocking chocolate and provided a fit with the Dairy
Milk Megabrand. Their inclusion provided the opportunity to
further leverage.
The Dairy Milk Megabrand without alienating loyal consumer s.
The new Dairy Milk Bubbly brand benefited from a new name
which better conveys the distinctive "mouth feel" of Wispa. The
new aerated chocolate product now in square form, which is
also easier to break, proved popular. Test showed that 85% of
Wispa consumers were likely to buy Dairy Milk showed that 85%
of Wispa consumers were likely to buy Dairy Milk, while 89% of
Caramel customers indicated their likelihood to buy the new

25
Dairy Milk Caramel.

Other range refreshment initiatives involved deleting some


products such as Banoffi while incorporating new variants like
Cadbury Dairy Milk Orange Shots. This approach will keep the
range fresh.

Cadbury Advertising Timeline their products:-

1867

Cadbury Cocoa Essence began advertising. They highlighted


the purity of the product with the slogan ‘Absolutely pure,
therefore best’.

26
1900

Cadbury gained the help of a popular artist Cecil Aldin to create


a series of posters and press adverts to advertise their
products.

1920s-30s

Cadbury promoted their products through the war by creating


the ‘Chocolate Mystery Man’ character. He gave out free gifts,
but only if he could be found.

1928

Cadbury Dairy Milk poster campaigns began using the iconic


‘glass and half’ slogan and image to stress its high milk
content.

1930s

Cadbury’s status as the nation’s favorite brand becomes the


most important feature of the company’s advertising.

1938

150,000 people went on the factory tour every year. It began in


1902 to link people more closely with Cadbury.

1939

During the 2nd World War Cadbury Dairy Milk disappeared.


Cocoa and chocolate was under government restriction and
only rationed chocolate was sold.

1951

‘The Bournville Story’, a film promoting Cadbury, was made


27
and shown cinemas around the country.

1955

Cadbury Drinking Chocolate was one of the very first ads on


commercial television in this year.

1957

Cadbury commissioned thirteen one-minute films shown as TV


adverts. These ads described the harvesting of the Cadbury
chocolate ingredient.

1959/60

Flake TV advertising began; it used the iconic theme of a


woman sensually enjoying a bar of chocolate on her own.

1970-1974

Memorable television ads raised the sales of Cadbury Fruit &


Nut and Whole Nuts by 73% .

1983

The Wispa Bar launched including televised ad campaigns


featuring comedians and comic actors talking about the new
bar.

1990

Cadbury World opened a £10 million replacement for factory


tours. 350,000 people visited in the first year.

1996

Cadbury began a £10 million annual sponsorship of Coronation

28
Street, reaching an audience of eighteen million people.

2007

The Cadbury ‘Gorilla’ ad premiered, immediately becoming one


of the most popular adverts in recent year.

2008

Cadbury and Schweppes demerged, splitting its confectionery


and drinks business.

2009

Kraft made a surprise proposal to take Cadbury over for


£10.2bn.

CADBURY AND ITS PRODUCTS

Cadbury Boost is a chocolate bar made by Cadbury Ireland in


the Republic of Ireland, and sold in the UK by Cadbury UK and
also sold in Australia and South Africa. Its wrapper says that it
consists of milk chocolate with caramel and biscuit filling. The
wrapper also states that Boost is "Charged with glucose."

29
Cadbury Brunch Bar is a bar of cereals (oats, bran flakes and
crispies) bound with honey and half covered in milk chocolate.
They come in a variety of flavours: Raisin, Hazelnut, Apricot &
Almond, Cranberry & Orange, Fruit & Nut, Mixed Berry,
Chocolate Chip and Toasted Coconut and is made by Cadbury
UK.
They are breakfast type bars that are quick to eat in, and
ideally as a slightly healthier and more wholesome snack option
to chocolate bars.
Cadbury Caramilk is a caramel-filled chocolate bar made
by Cadbury Adams in Canada. It was first sold in 1968.[1]
Variations available, some of them limited editions, include
Caramilk made with dark chocolate maple, chocolate, or
cappuccino. "Chunky" (thicker) versions called Caramilk "Thick"
and cylindrical versions called "Caramilk Rolls" (similar to Rolo)
have also been introduced.

Crispy Crunch is a hard chocolate bar with


a crispy peanut flake inside that is made by Cadbury. Crispy
Crunch is sold in Canada. Crispy Crunches were sold in
the United States for a brief time in the 1990s by the food
distribution arm of Pro Set, the collectible card company. Pro
Set went bankrupt, resulting in Crispy Crunch no longer being
available in the United States. A lower-calorie version of Crispy
Crunch was available for a limited time in the mid-1990s. The
original manufacturers, Neilson, sold all their chocolate brands
30
to Cadbury in 1996, though packaging continued to feature the
Neilson logo for a few years. Since Cadbury began
manufacturing of the chocolate bar, the recipe has changed in
that it is less salty and more sweet as it has a more of the
crunchytopaz coloured candy coating around the centre.

Bar and a Half


In June 2009 Cadbury launched the "Cadbury Dairy Milk Bar
and a Half" range as a replacement to the Cadbury Dairy Milk
"8 chunk" across several Dairy Milk variants. The concept is
that the bar is to be more "portionable", so parts of the bar can
be "saved for later" although the bar is the same as the old 8
chunk but in Fruit and Nut, Whole Nut and Standard. This bar
has the new logo and packaging.
A similar technique has been introduced with Cadbury Double
Decker and Cadbury Boost bars. However instead of larger
bars, two separate bars are packaged together and are called
"Duo". Both brands received a packaging refresh at the same
time.

Cadbury Dairy Milk Caramel is a chocolate bar that is part of


the Cadbury Dairy Milk brand and is made by Cadbury
UK and Cadbury Ireland. The bar is sold in the United

31
Kingdom and Ireland. The bar was first launched in 1976,
originally called Cadbury Caramel until 2003, when it was
renamed. In early 2009 it was relaunched, with
the Caramel name re-emphasised as the main on-pack brand,
and the Dairy Milk brand reduced in size. he product is
a Cadbury Dairy Milk chocolate bar semi-divided into blocks
each of which has a caramel filling. The blocks vary in shape
and number according to the size of the bar, but on all bars,
the blocks are stamped with the word Cadbury on the top.

Cadbury celebrations :
Cadbury Celebrations was aimed at replacing traditional gifting
options like Mithai and dry- fruits during festive seasons.
Cadbury Celebrations is available in several assortments: An
assortment of chocolates like 5 Star, Perk, Gems, Dairy Milk
and Nutties and rich dry fruits enrobed in Cadbury dairy milk
chocolate in 5 variants, Almond magic, raisin magic, cashew
magic, nut butterscotch and caramels.
The super premium Celebrations Rich Dry Fruit Collection which
is a festive offering is an exotic range of chocolate covered dry
fruits and nuts in various flavours and the premium dark
chocolate range which is exotic dark chocolate in luscious
flavours.
Cadbury Celebrations has become a popular
brand on occasions such as Diwali, Rakhi,
Dussera puja. It is also a major success as a
corporate gifting brand. The communication is
based on the emotional route and the tag line
says "rishte pakne do" which fits with the brand

32
purpose of strengthening your relationships with something
sweet.

Cadbury five star


Cadbury 5 Star needed to introduce an element of surprise in
its eat experience to gain share among lapsed consumers. To
do this the variant Cadbury 5 Star Crunchy was launched-
which still had the richness of caramel, chewiness of nougat but
also contained rice crispies. In o rder to engage youth the
campaign was executed acrossTV, radio, internet, outdoor and
print media.

Cadbury Perk:
A pretty teenager; a long line, and hunger! Rings a bell? That
was how Cadbury launched its new offering; Cadbury Perk in
1996. With its light chocolate and wafer construct, Cadbury
Perk targeted the casual snacking space that was dominated
primarily by chips & wafers. With a catchy jingle and tongue in

33
cheek advertising, this 'anytime, anywhere' snack zoomed right
into the hearts of teenagers.
Raageshwari started the trend of advertising that featured
mischievous, bubbly teenagers getting out of their 'stuck and
hungry' situations by having a Cadbury Perk. Cadbury Perk
became the new mini snack in town and its proposition "Thodi
si pet pooja" went on to define its role in the category.
As the years progressed, so did the messaging, which changed
with changes in the consumers' way of life. To compliment
Cadbury Perk's values, the bubbly and vivacious Preity Zinta
became the new face of Perk with the 'hunger strike'
commercial in the mid 90's.
Cadbury Gems :

The saying "Good things come in small packets" has been


proven right many a times and it couldn't have been truer for
the pretty chocolate buttons called Gems. Who can forget the
unique, brightly colored chocolate buttons with crispy shells,
encased in a pack that's as colorful as the product itself?
Unrivalled in all these years, Cadbury Gems has captured every
consumer's fantasy for almost 4 decades. Little wonder that
Cadbury Gems, the brand that came into India in 1968 is still
going strong.
Cadbury Gems brings happiness to the consumer's world. With
this promise in mind, Cadbury Gems has always had 'Masti' as
the key proposition in all its communication. In fact, Cadbury
Gems is always a willing ally for pranks and fun.

34
Cadbury Bournvita :
Cadbury was incorporated in India on July 19th, 1948 as a
private limited company under the name of Cadbury-Fry
(India). Cadbury Bournvita was launched during the same year.
It is among the oldest brands in the Malt Based Food / Malt
Food category with a rich heritage and has always been known
to provide the best nutrition to aid growth and all round
development.
Throughout it's history, Cadbury Bournvita has continuously re-
invented itself in terms of product, packaging, promotion &
distribution. The Cadbury lineage and rich brand heritage has
helped the brand maintain its leadership position and image
over the last 50 years.

INTRODUCING CADBURY AS AN AFTER DINNER


SWEET
One of the biggest marketing strategy followed by Cadbury in
India was introducing Cadbury as an after dinner sweet. Indians
are fond of having dessert after their dinner. Cadbury aimed at
35
replacing the traditional sweets. Apart from its after dinner
advertisement Cadbury targeted adults rather than children. In
most of its advertisements, the brand is endorsed and
advertised by adults rather than by children even though it
basically sells chocolate. Such type of advertisements have
created a very wide range of consumers for Cadbury. Its
products are not limited to children alone. Adults like the
products of Cadbury as much as children do.

Another reason for Cadbury being such a successful brand was


that it aimed at replacing the traditional sweet custom so
prevalent in India. Indians have the habit of carrying sweets as
gifts when they visit a friend or relatives. Cadbury items
became the new sweets. It was not only considered better but
also superior to carry Cadbury instead of the normal sweets.
Cadbury also aimed at selling in bulk during festive seasons
such as diwali and rakhi.

Diwali and rakhi packs are designed to give a feel of the


festivities going on. They are exclusively indianised. The
chocolate packs contain special chocoloates such as dry fruits
rich chocolates as people normally serve dry fruits during
diwali.

INTERSTING FACTS OF CADBURY


1) Cadbury was the first company to include pictures instead of printed text on chocolate
boxes.

36
2) George Cadbury didn’t want to take mothers away from their children, so he developed a
company rule that women had to leave work when they got married. Each married woman
was given a bible and a carnation as wedding gifts.

3) In 1886 Cadbury became one of the first firms to have dining rooms with kitchens and
food for sale.

4) A miniature metal animal (elephant, penguin, owl, fox, duck, squirrel, rabbit or turtle) was
given away with specially designed cocoa tins in 1934. In the same year, Cadbury's tokens,
which came with packs of cocoa, could be redeemed for lamps, kettles and saucepans.

5) So many children joined Cadbury’s Coco cub Club that it had 300,000 members in 1936.

6) Cadbury’s World Visitor Center opened in 1990, welcoming 400,000 visitors in its first
year.

7) Cadbury launched a Get Active program in 2003, helping 10,000 teachers get in shape.

COMMUNICATING STRATEGY

To promote the new Dairy Milk


Brand core:
This is the creed or genetic code of the brand;

37
campaign. This involved a highly Megabrand, Cadbury
implemented a
To promote the new Dairy Milk
Brand core:
This is the creed or genetic code of the brand;

Megabrand, Cadbury implemented a


To promote the new dairy milk megabrand , Cadbury
implemented comprehensive “360 degree support” campaign.
This involved a highly coordinated set of promotional activities
across various communications channel each activity bearing
the same message . This approach is known as integrated
marketing communications and ensures that consumers
receive a clear and consistent message about a brand.

38
The 360 degree support campaign include a point of sale
competition to win a new look , new display units , a buy-two-
get-one free promotion on 100g bars, PR and advertisements
in the trade press. The result was that sales of the new
Megabrand products exceeded targets by 12 % !!

The Strategy:
• The task was to get the youth audience to adopt Cadbury
Dairy Milk in the sweet eating or " muh meetha karna"
moments
• The campaign of " Jab Pappu Pass Ho jaye, Kuch Meetha
Ho jaye" captured the thought of celebrating a moment of
delight with Dairy Milk
• A campaign was built around the idea of how "pappu"
celebrated passing his exams with Dairy Milk
The Media:
• A multi-media campaign was launched on TV, Internet,
Radio and Outdoor
• The key was how do own the moment of " pappu passing
his exams" in the media space
• An innovative tie -up with Reliance webworld was
executed, wherein students across 66 examination boards
across the company could access their results on Rworld

39
through their Reliance mobiles. If they passed a message
congratulating them on their moment of delight from
Dairy Milk was displayed.

Distribution and Selling strategy:

About (70-80) % sugar confectionery and chocolate sales


generate through wholesale channel depending upon the
nature of product and strategies of manufacturing companies.
Almost all but precisely Hilal and B.P rely much on wholesale

40
channel to generate bulk chunk of their total sales. To support
their sales through this channel they advertise heavily on
electronic media to create brand pull for their brands and
subsequently it force retailers to buy these brands from whole
sale. The underlying reason behind limited coverage in retail
sector by these two companies is they do not have premium
priced items that could yield sufficient revenues to make retail
distribution viable for their distribution partners so they do a
limited coverage in retail sector. Since these companies
themselves do not emphasize on retail penetration so their
distributors also take an escape route and adopt the way of
easy selling through WS. However there are companies like
Cadbury, Candyland, Mitchell’s and Mayfair that are fully aware
of the importance of retail penetration .Hence these companies
pay due importance and attention to retail coverage and
subsequently allocate resources for retail sector. As stated
earlier the emphasis of Hilal and B.P has always been on
building consumer pull through mass media advertising (mostly
through television) and pushing their brands through wide-
spread network of distributors and wholesalers throughout the
nation.

This combination of “Push & Pull “ has proved to be a


successful tool in their cases because the nature of their brands
also support this strategy as they produce products of mass
market with as low price as Rs.1 , 2 and beyond. Because of
this pricing strategy their products are equally popular in rural

41
and urban towns among middle and lower middle class. B.P and
Hilal having this advantage enjoy the benefits of a wide-spread
distribution network in 300+ towns and over 350 distributors
nation wide (as they have more than one distributors in some
towns). They always try to adopt cost leadership strategy and
generate revenues through high volumes of sales. Frequent
launches, re-launches, re-introduction of old brands with slight
modifications, withdrawals, adjustments in packaging, product
designing and even recipe change are a common phenomenon
in the brands of these two major companies. Contrary to this
Cadbury’s , Candyland and Mitchell’s believe on establishing
brands and brand equity and therefore protraction of quality up
to last possible extend remains their top priority.

Until mid 80’s chocolates was supposed to be the product


of upper and upper middle class segment. In 1983 Mitchell’s
Jubilee was launched first time in Pakistani market at Rs.3.50
per bar. Due to its attractive packaging, quality, affordable
price and an intact media support the brand received un-
matched reception and became a success story in Pakistani
industry. The brand is still very popular among masses and
available in three different price points at Rs.2, Rs.5 and Rs.10.
In early 2000 Cadbury’s introduced quality products with
affordable price. The launch of Dairy Milk (Rs.5/-), 5 Star
(Rs.5/-), Velvet (Rs.5/-) and Perk (Rs.3) with attractive

42
dispensing-chillers was the turning and revolutionary point for
making chocolates the choice for every one. The role of
Cadbury’s for expansion of chocolate market in Pakistan will
always be written in golden words.

SWOT ANALYSIS
Strengths:
• Strong brand names like Cadbury Dairy Milk, Five
star and Eclairs.
• Rich product mix.
• Support from the parent Cadbury Schweppes.

Weaknesses:
• Lack of launch of new brands in Chocolates segment.

Opportunities:
• The Indian market and more specifically the urban
areas where the penetration of Chocolates is low can
be developed as a future market through
affordability and availability.
• Using information and technology to bring efficiency
in logistics and distribution.

Threats:
• Stiff competition in Confectionery segment.

43
• The company has large exposure to foreign currency
exchange rate risk, mainly on account of imported
cocoa beans and cocoa butter in US Dollar and Pound
Sterling.

BUSINESS OVERVIEW
Cadbury India's main source of revenue is its 70% bite of the 23,000
tonnes Indian chocolate market. It is also present in the malted food
market (Bournvita enjoys a 24 percent share of the 20,000 tonnes
brown drinks market). Of late, the company has ventured into the
120,000 tonnes sugar confectionery market ('Googly') and has
gained about 5% market share there. The revenue break up of its
different business segments is as follows:

Despite the fact that Indians have strong affinity for sweets, the size of
domestic confectionery market is small on account of traditional
consumer tastes and habits. The Chocolate market in India is a niche
market penetrated largely in urban areas and per capita consumption is

44
low as compared to those in developed countries of the West. But future
prospects of the chocolate category looks good as the company plans to
move into the arena of snack foods, as it has done in the Western
markets.

The market for Malted food drinks is large and is characterized by a few
large players. The market can be broadly segmented into white malted
food drinks which dominates in the Southern and the Eastern parts of the
country and Brown Malted food drinks which dominate in the North and
the West. Large brands like Bournvita and Horlicks dominate in Malted
food drinks sector and the growth has been steady in the last five years.

The future mission of Cadbury India is 'A Cadbury in Every


Pocket'. The company's business strategy hinges on following for driving
its future growth:
• Increase the width of chocolate consumption, through low price
point packs and distribution focus.
• Increase depth of consumption, targeting regular chocolate
consumers through generating impulse and a dominant presence at
Point of Sale.
• Maintain image leadership through a superior marketing mix.
• Be a significant player in the gifting segment, through occasion
linked gift packs.
• Build critical mass in the sugar business by introducing value-added
sugar confectionery products.
Future revenue growth will be through increasingly higher volumes rather
than price increases. The management believes that price increase can
only be a short term objective. It is volumes, which are very important to
achieve the long-term goal of having a wide consumer base.
The company sees its growth in future in market expansion and new
product launches. Increased reach, new launches, higher marketing
spend and intensive promotions - the mix, Cadbury is looking at to fuel its
future growth. The company is also looking for acquisition of brands, and
its huge cash reserves might be utilized for the purpose.

45
INTEGRATED MARKETING COMMUNICATION OF CADBURY
  
  
Marketing communication mix elements

Advertising:
    “ Advertising is the non-personal communication of
information usually paid for and usually persuasive in nature
about products, services or ideas by identified sponsors
through the various media” (Bovee, 1992). Television, the print
media and posters have been the main media of
communication for Cadbury’s advertisements. Cadbury’s TV
campaign was devised illustrating the essential consumption
occasions. For example, the eight weeks campaign of
Cadbury’s TV advertising to be showed in the evening time was
seen by its target audience and it had reached 85% of the
market. In addition, according to the sources from Cadbury’s

46
website, there are other types of advertising form being used in
Cadbury which is the trade advertising, informative advertising
and the consumer advertising. Cadbury has launched a lot of
periodic trade advertising to monitor quality checks and
educate its retailers as well as promoting sales. For the purpose
of inform and remind customers, Cadbury published an
advertising regarding “the facts about Cadbury” in 55 trade
publications. Cadbury never ignore the importance of consumer
advertising that people can see many Cadbury’s advertising in
newspaper, magazine, Cadbury’s website and so on. More
importance, Cadbury has launched a response cell through toll
free number and an email id to encourage its customers to give
feedback.  

Transition of Cadbury ads from older days to present


days

1)Old Ads
• Focuses on cricket.

• Spread joy

• Focusing on different professions

2) New ads

More trendy

Teenage oriented

More event oriented.

  ADVERTISING THEIR PRODUCTS IN DIFFERENT WAYS


The sales of product in the market depend upon
advertising which is one of the factors that boosts the sales of

47
the product in the market. Advertising can be in the form of
print advertising, banner advertising, advertising on Television,
radio advertising and of course advertisement on Internet.
Over the last several years internet has emerged as a strong
and successful platform for advertising a product by using
different ways and methods to attract the attention of the
customers. There are various ways to capture the thought
process, which runs in the minds of the customers, and it is
done on a regular basis through the medium of advertising.
The purpose of running an advertising campaign is to generate
the interest of new customers into the product, and to sustain
the interest of regular customers in the product, so that there
mind remains focused on the brand name and image of the
product.

Thus the advertisement of the same product can be seen


simultaneously at many different places. Cadbury's
advertisement can be seen during the late evening hours when
different soap opera are broadcasted. Then on switching on
the laptop to check the emails received during the day, the
advertisement of Cadbury can be seen again, but of course,
this time the form of advertisement i.e. size of advertisement is
small, it looks like a teaser and the medium is different, here
internet playing an important role. At weekend while going
through the shopping mall the same advertisement of Cadbury
can be seen highlighted in big posters and banners, giving
more prominence to brand name, the product name and in

48
order to attract the customer's attention, theme of the
advertisement also been a part of the poster, which also gets
highlighted.

Different brand names, different products and different


ways of promoting the product.

For Example:-

When Sun feast biscuits were initially launched, there was


an aggressive advertisement campaign that was been done for
the Sun feast biscuits by putting stalls at different places,
where maximum number of customers come regularly, like for
instance there was a stall of Sun feast biscuit at an exhibition
which was been held on a ground, where there were number of
different stalls and at the end when the customers are about to
leave the exhibition there are different food stalls and
refreshment stalls.

Amongst the various different stalls in the exhibition, one


stall was that of Sun feast biscuits and there were sizable
number of customers, who were keen and eager to know more
about Sun feast biscuits and some were even purchasing the
biscuits.

A few days later the same stall was seen at a shopping


mall and now the number of customers were more than before.
The reason being advertisements of Sun feast biscuits been
shown on TV. Later on Shah Rukh was roped in for the

49
advertisement of Sun feast biscuits and now Sun feast is a
known to a large number of customers. Thus initially for any
brand name it is important to gauge and know the customer's
reaction, their opinion and views, and then slowly introducing
the product in the market for the customers on a regular basis.

So advertising here also plays a major role, banners and


dangles must be attractive at the time of initial launch of the
product.

While advertising on the internet there are many


customers, who visit the Cybercafe and obviously they also
comes across the advertisements. So there are different ways
to grab the attention of these customers. Many times
prominent websites like MSN, Yahoo and other big names
related to websites are roped in and then there is a different
format which is used to make sure that the customers make a
note of the advertisement and pay attention to the product
details. Like for instance there is a Contest which is been
conducted wherein the customer will have to fill in the small
form which requires his Full Name, mobile number, Address
and email ID. Once these details are filled in the customer has
to make sure that he has given the correct answer to the
question and then submit the form. This is where Cybercafe
customers are concerned.

Many a times during movies and during cricket matches


there are online contests, which are conducted where the

50
customer has to select the right answer by clicking on one of
the four different options provided to him i.e. A, B,C and D and
then SMS the right answer on the given mobile number. There
are mobile compaines who have conducted these kind of
contests, recently MicroMax has done this contest during
cricket matches.

Thus customers are always there, each individual


customer has his own purchasing capacity, but when it comes
to decision making by the customer with respect to brand
names many times advertising plays an important factor in the
process of purchasing the product. This happens at the time
when the customer makes a final decision.

Many brand names re-launch their products in the market


depending upon the previous reaction received and upon the
fact that what were the additional features that were required
in the product because of which sales dropped.

It is important that the customer knows about different


brand names irrespective of the fact, which product, he buys at
the end of the day. This is where advertising and promoting a
product in the market plays a dominant role.

Media Advertising- Use of available media channels,


meaning cinema, TV, radio, press and the internet. In other
words the Cadbury should focus on the media through which it
reaches its primary target market-young people of age 16- 35.
During the pre launch campaign Cadbury should not address

51
the controversy; however it should make it clear that the
product is not suitable for age below 15 and not advisable for
pregnant women. This way the competition will keep their
mouth shut and their will be no post launch negativism in
Singapore. This will be done a month before the launch.

Direct marketing:

  Direct marketing defines the practice of directly provide the


promotional information to potential customers instead of
through a media. Direct marketing enable firms to build close
relationship with their customers and collect the most relevant
customer information. Direct marketing is cheaper and quick
way to get in touch with your target customers and offer more
choices as firms cutout the inter-mediators. For example,
telemarketing is a fast growing form of direct marketing in the
recent years. For the purpose of boosting the awareness and
stimulating sales, Cadbury Trebor Bassett had launched a
series of direct marketing campaign such as the dairy milk’s
door drop campaign through the leaflet firms. Mailings and
inserts to house is being frequently used in the Cadbury’s
direct marketing campaign and those campaigns have meet
the objectives of Cadbury such as increasing the sales
dramatically during the campaign time and it conducted a lot of
valid customer information. For example, Cadbury’s multi-
award winning campaign like the “Real Taste of Life” to capture
the child like spontaneity in every adult had reached extreme
success. Moreover, in order to extend the reach of its popular
gorilla campaign and capitalize the target customers of 18-34
years old, Cadbury had created the Vodafone mobile marketing
to deliver extra content and take the brand awareness and
brand identity to a new level amongst the target audience.   

  

52
Interactive media :

    The interactive media is more effective than traditional


media because it allows customers to participate and give
feedback throughout the process of purchase and consumption.
Interactive media can take many forms such as the company
website, mail box and virtual reality mall kiosks. The frequently
asked questions on Cadbury’s website are being used
effectively at all time for customers. For example, the FAQ has
provided information as “we were listened and fixed” as New
Zealand customers complain the palm oil in Cadbury dairy milk
chocolate. And now the cocoa butter only Cadbury dairy milk
chocolates are back in the New Zealand market. In addition,
Cadbury likes its customers to engage in the operations so as
to offer the desired taste of chocolate for its target customers.
Moreover, customers can chat on the Cadbury’s community
website to obtain more product information and provide
feedback to the Cadbury management team. For example,
customers are encouraged to joint the promotions of Cadbury’s
Online Community competition, Great Picnic Challenge and the
Top Gear Live Promotion.  

  

Sales promotion :

    Sales promotion is a common strategy that used to offer


extra value or incentive for the product to the sales force,
distributors or ultimate consumers. Sales promotion can be
consumer oriented and trade oriented, businesses could take
one of them or combine two together if require. Samples given,
coupons given, bonus packs and price off deals are very
common form of consumer oriented sales promotion. Trade

53
oriented promotion can be done through trade allowances,
trade shows, cooperative advertising and so on. Cadbury has
launched many sales promotion activities especially the
customer oriented promotion that customers can benefit from it
such as the Cadbury dairy milk buttons had launched the kids
campaign in the city centre in April last year, the target
audience of the campaign is parents with kids and the
campaign include treasure hunts, face painting, story telling
and biscuit and button decorating. Furthermore, Cadbury has
been launching the yearly discount selling or price off sales
promotion activities during Christmas time in supermarket for a
long time and it does increase sales dramatically every year.

  

Publicity/public relation :

  Business trend to use the news or business press to create


and carry positive images or stories about their business and
products for the purpose of stimulate their sales and
operations. Therefore, building a good relationship with local
press representatives to support good reputation in the public
is significantly important for firms because people like to
support firms with positive image and good reputation.
However, public relation is a risky way of communication due to
firms cannot control the infection in negative aspects. Cadbury
utilizes variety of tactics for the public relation such as the
activities of sponsorship of screenclick.com, the radio
promotion, media gift, product placement and point of sales.
Cadbury has put much attention to the concern of publicity
such as the company always inform to consumers about its
changes. For instance, consumers can see the business
evolution information on Cadbury website like the “NZ Product
Changes Q & A” The most distinctive form of building public
relation for Cadbury is its Trading Terms that declare the
Cadbury conditions of purchase for detailers to offer the best
54
quality of chocolate and service for consumers. The Cadbury
Nutritional labeling global standard to explain about consumer
health and ingredient are also indicated on the company
website which include the detailed product information and
consumer health issues.   

Sponsorships:

    Sponsorships is the branding marketing that businesses


invest to support a particular event, program or project so as to
gain the commercial advantages and showing their
advertisement. For example, firms involve coordinated beyond
the banner placements in special event in order to broadening
its competitive edge by improving the company’s awareness,
image, prestige and credibility. Sport sponsorships is a popular
trend that many firms used to foster their brand loyalty
program in the modern time. Cadbury has a long tradition of
sports sponsorship, both in its original country and of
supporting major international events. Cadbury New Zealand
had announced to be the official treat provider of the New
Zealand Olympic Teams for Vancouver 2010 and London 2012.
In addition, it’s easy to find out the information about
Cadbury’s international sponsorships promotions such as the
Coronation Street and Cadbury's Chocolate and the Cadbury
sweeten London 2012 sponsorship.   

Personal selling :

    Personal selling is a two ways communication between


sellers and buyers and it can be done through face to face, via
the internet or telephone. From personal selling, firms can gain
the feedback quickly from customers, demonstrate the benefits
of particular products and adjust their message immediately to
capture customers’ concern and desire needs. Personal selling
had been used long time ago by Cadbury and it is not being
55
used anymore as brand awareness and brand identity of the
Cadbury was increased dramatically.

OTHER MARKETING MIX ELEMENTS OF CADBURY

Brand name and package

    Cadbury is the most popular chocolate Brand in New


Zealand. Cadbury dairy milk chocolate, Cadbury Jaffas, Cadbury
Moro and Cadbury Pinky and so on are all famous symbols of
Cadbury series that well-known in New Zealand market. When
customers say something about chocolate, Cadbury is the
major brand that will appear to customers’ mind. Therefore, the
brand name of Cadbury is vital to all its promotion activities
and campaigns. In addition, the package of Cadbury dairy milk
chocolate also creates the brand image to communicate the
Cadbury brand with consumers. The package of Cadbury’s
products always packed with different colors and pictures
according to different tastes. For instance, the strawberry taste
of Cadbury dairy milk chocolate is packaged with red-pink color
and Strawberry pictures. More important, the labeling on
Cadbury’s products are provided responsible consumption
messages and nutrition information to help educate consumers
about the role of treats in the diet.

56
5 P’S Of Cadbury

1 - PRODUCT
The average company will compete for customer by
conforming to his expectation consistently. But the winner will
surpass them by constantly exceeding his expectation,
delivering to his door step additional benefits which he would
never have imagined. Cadbury’s offer such product. The wide
variety products offered by the company include:

I. Chocolate & Confectionary


1) Dairy Milk

2) Fruit & Nut

3) 5 Star

4) Break

5) Perk

6) Gems

7) Éclairs

57
8) Nutties

9) Temptation

10) Milk Treat

II. Beverages
III. Food Drinks

1) Bourn vita

2) Drinking chocolate

3) Cocoa

2 – Pricing
Make no mistake. Second P of marketing is not another
name for blindly lowering prices and relying on this strategy
alone to increase sales dramatically. The strategy used by
Cadbury’s is for matching the value that customer pays to buy
the product with the expectation they have about what the
production is worth to them.

Cadbury’s has launched various products which cater to all


customer segments. So every customer segment has different
price expectation from the product. Therefore maximizing the
returns involves identifying right price level for each segment,
and then progressively moving through them.

Dairy Milk Rs. 15

Perk Rs. 10

5 Star Rs. 10

Fruit and Nut Rs. 22

58
Gems Rs. 10

Break Rs. 5

Nutties Rs. 18

Bournvita (500 gm) Rs. 104

Drinking chocolate Rs. 50.

3 - Physical Distribution – “Place”


Distribution Equity: It takes much more time and effort to
build, but once built, distribution equity is hard to erode. The
fundamental axiom of Indian consumer market is this: You can
set up a state-of –the-art manufacturing facility, hire the hottest
strategies on the block, swamp prime television with best Ads,
but the end of it all, you should know how to sell your products.

The cardinal task before the Indian market in managing is to


shoe-horn its product on retail shelves. Buyers are paying for
distribution equity not brand equity and market shares.

India – 1 billion people, 155 million household has over


4 million retail outlets in 5351 urban markets and 552725
villages, spread cross 3.28 million sq. km. television has
already primed and population for consumption, and the
marketer who can get to the to the consumer ahead of
competition will give a hard – to – overtake lead. But getting
their means managing wildly different terrains-climate,
language, value system, life style, transport and
communication network. And your brand equity isn’t going to
help when it comes to tackling these issues.

Own distribution network consist of clearing and


forwarding (C&F) agents & distribution stockiest. This network

59
of distribution can either contact wholesalers and which in turn
retailers or the distributors can contact to the retailers directly.

Once the stock product reaches retailers, the prospective


customers can have access to the product. Cadbury’s
distributes the product in the manner stated above. Cadbury’s
distribution network has expanded from 1990 distributors last
year to 2100 distributors and 4,50,000 retailers. Beside use of
TI to improve logistics, Cadbury is also attempting to improve
the distribution quality. To address the issue of product
stability, it has installed visit colors at several outlets. This
helps in maintaining consumption in summer when sales
usually drops due to the fact that the heat affects product
quality and thereby off takes.

Looking at the low penetration of the chocolate, a distribution


expansion would itself being incremental volume. The other
reason is arch rival Nestle reaches more than a million retailers.

This increase in distribution is going to be accompanied by


reduction in channel costs. Cadbury’s marketing costs, at 18%
of total costs, is much higher than Nestlé’s 12% or even pure
sugar confectionery major Parry’s 11%. The company is looking
to reduce this parity level. At Cadbury, they believe that selling
confectionery is it like selling soft drinks.

4 - Promotion
Effective advertising is rarely hectoring or loudly explicit…. It
often both attracts and generates arm feelings. More often than
not, a successful campaign has a stronger element of the
unexpected a quality that good advertising shares with much
worthwhile literature.

60
To penetrate into the inner recesses of customer memory,
communication must first ensure exposure, grab his attention
evoke his comprehension, grab his acceptance and then
extract retention competing with thousands of other units of
communication trying to do the same.

Finding showed that the adults felt too conscious to be seen


consuming a product actually meant for children. The strategic
response addresses the emotional appeal of the band to the
child within the adult. Naturally, that produced just the value
vacuum that Cadbury was looking to fill. Thereafter it was the
job of the advertising to communicate customer the wonderful
feeling that he could experience by re-discoursing the careful,
unselfish conscious, pleasure – seeking child within him – and
graft these feeling onto the Ad campaign like “Khane Walon Ko
Khane Ka Bahana Chahiye” for CMD and “Thodi Si Pet Pooja –
Kabhi Bhi Kahin Bhi” for Perk have been sure shot winner with
the audience.

Whirl with the new launched temptations with the slogan “Too
To Share” the communication resolves around the reluctance of
a person who’s got their hand on a bar of temptation to let
anyone else to have a bite. As well as outdoor and radio ads, ad
agency contract has created communication for cinemas and
even ATM machines for the brand.

All ICICI’s ATM a message flashes on the screen as soon as


customer inserts his ATM card. It tells the customer that this
would be good time to get out of his temptation since he/she is
bound to be alone. Something familiar is planned for phone-
book as well. In cinemas, Cadbury has a message on-screen
just before the lights are dimmed to give them a chance to get
their temptations. There will also be after dinner sampling in
restaurants – to begin with, 30 catteries in Mumbai have been
selected.

61
The next round of activity will include the wafer-chocolate Perk
and the Picnic bar, which has faced problems with its taste,
because of the peanut it contains. Milk treat has also been
launched in a module bar form, just in time of Diwali gifting
market. Éclairs has got potential for much wide distribution, in
a small sweets that airlines, hostels, and up market retail outlet
offer to guest and customers.

Ad spend in 2000 was about 14% of sales and the management


said that plans to maintain as spend at this level in the current
year also.

Ad since any discussion today would be incomplete without


mention ‘e’ word, the management plans to tap this new
channel of marketing. Beside three company website
(i.e.www.cadburyindia.com, wwww.bourvita.com,
www.cadburygift.com) that the company has launched, it had
also entered into various marketing relationship with other
portals, specially targeted during festivals and events such as
Valentines Day, etc….

It’s a combination of stiffing up its key brand, researching and


improving the newer products that haven’t taken off, supported
with high ad – spends that Cadbury hopes will see it emerges
stronger after the current slowdown, as well as expand the
market.

5 – Positioning
In the 1970s consumers were ready to pay “more for more”,
and luxury goods flourished. In the 1980s, consumers began to
demand “more for same”, and the discounting era grew strong.
Today’s consumer demanding “more for less”, and the winner
will be that super value marketers…. Some of today’s most
successful companies recognize those customers are more
educated and able to recognize true customer value…

62
Positioning is simply concentrating on an idea – or – even a
word defines that company in the mind of the consumer. It is
more efficient to market one successful concept to one large
group of people than 50 product or service ideas to 50 separate
group… repositioning is a must when customer attitude have
changed and product have strayed away from the consumer’s
long standing perception of them…

Cadbury’s is an anchor in sea of confectionary products. As a


variety of competitive claims assails her senses, today
customer uses complicated decision making process to assess
the alternative before making a purchase. Since Cadbury’s is
more clearly associated with a particular set of attributes in
terms of benefits and prices, the quicker becomes her search
process.

63
Segmentation, Targeting, and Positioning

Segmentation, targeting, and positioning


together comprise a three stage process. We first (1)
determine which kinds of customers exist, then (2) select which
ones we are best off trying to serve and, finally, (3) implement
our segmentation by optimizing our products/services for that
segment and communicating that we have made the choice to
distinguish ourselves that way.

Segmentation:-

It involves finding out what kinds of consumers with


different needs exist. In the auto market, for example, some
consumers demand speed and performance, while others are

64
much more concerned about roominess and safety. In general,
it holds true that “You can’t be all things to all people,” and
experience has demonstrated that firms that specialize in
meeting the needs of one group of consumers over another
tend to be more profitable.

Generically, there are three approaches to marketing. In


the undifferentiated strategy, all consumers are treated as the
same, with firms not making any specific efforts to satisfy
particular groups. This may work when the product is a
standard one where one competitor really can’t offer much that
another one can’t. Usually, this is the case only for
commodities. In the concentrated strategy, one firm chooses
to focus on one of several segments that exist while leaving
other segments to competitors. For example, Southwest
Airlines focuses on price sensitive consumers who will forego
meals and assigned seating for low prices. In contrast, most
airlines follow the differentiated strategy: They offer high
priced tickets to those who are inflexible in that they cannot tell
in advance when they need to fly and find it impractical to stay
over a Saturday. These travelers—usually business travelers—
pay high fares but can only fill the planes up partially.

Targeting:-

In the next step, we decide to target one or more


segments. Our choice should generally depend on several
factors. First, how well are existing segments served by other
manufacturers? It will be more difficult to appeal to a segment

65
that is already well served than to one whose needs are not
currently being served well. Secondly, how large is the
segment, and how can we expect it to grow? (Note that a
downside to a large, rapidly growing segment is that it tends to
attract competition). Thirdly, do we have strengths as a
company that will help us appeal particularly to one group of
consumers? Firms may already have an established
reputation. While McDonald’s has a great reputation for fast,
consistent quality, family friendly food, it would be difficult to
convince consumers that McDonald’s now offers gourmet food.
Thus, McD’s would probably be better off targeting families in
search of consistent quality food in nice, clean restaurants.

Positioning:-

The term “positioning” is widely used within the marketing


and advertising communities today, and its meaning has
expanded beyond the narrow definitions of Trout and Ries.
Positioning is often used nowadays as a broad synonym for
marketing strategy. However, the terms “positioning” and
“marketing strategy” should not be used interchangeably.
Rather, positioning should be thought of as an element of
strategy, a component of strategy, not as the strategy itself.

The term “positioning” is, and should be, intimately


connected to the concept of “target market.” That is, a brand’s
positioning defines the target audience. For example, an airline
might position itself against other airlines, which defines the
target audience as airline travelers. Or, it might position itself

66
against all modes of transportation between two destinations,
which then defines the target audience as all travelers between
those two markets. The second positioning reaches out to a
much larger target audience.

Segmentation of Cadbury:

Right now Cadbury’s new advertisement campaign is


doing the rounds over the television. “Meetha hai khana,aaj
pehli tareek hai” is the tagline that the chocolate-giant has
come out with. It tries to bring forth the excitement, which lies
in the minds of the general public as they wait for the first date
of each month on the calendar. The monthly salary stashed in
their hands enables them to celebrate and rejoice by spending
it on Cadbury’s Dairy Milk.

Cadbury’s Dairy Milk has come out with such memorable ad-
campaigns, which settled into the hearts of everyone.

The story starts with “Once upon a time in 1948…” when


Cadbury entered the Indian market. It originated from a town in
the United Kingdom, Bournville (also the name of its recently
launched high-end chocolate) in 1905.

As the Cadbury’s official web site suggests, its journey in


India has been an eventful one. In the early 1990s, it tried to
cater to the sweet tooth of the children. Those days they
steered the market and took control over the company’s major
market share. However, the strategy changed by letting out the
secret that “everyone has a child inside “ and thus everyone

67
craves for the taste of chocolate. Cadbury strategies went
through a considerable change. It now catered from children to
adults and from chocolate to mithai. As the tagline goes “Khane
walon ko kahne ka bahana chahiye”.

The hole-in-one for the company was when it identified


sweets to be a very integral part of the Indian culture. It made
sure that the festive and jubilant moods of the society that had
paved the way for kilos and kilos of mithai, now made way for a
large number of Cadbury’s.

Meetha did to Cadbury’s what thanda had done for Coco-


Cola. Both helped them crawl their ways through into hearts of
the rural population of the country, which had an untapped and
astounding potential.

The advertisement campaign of Amitabh Bachchan,


dressed up as a villager, proudly announcing that his
“daughter-figure” won beauty contests for cattle, brought out
the laughs and struck a chord with the same segment of
people.

Later came the campaigns of “Pappu paas ho gaya”


acknowledged the market potential for college-going youth.
The treats for passing exams were now a Cadbury instead of a
mithai.With Kuch Meetha Ho Jaye, we knew Cadbury’s was now
a desert craving as well as a popular gift-item for festivals such
as Raksha Bandhan and Diwali. Cadbury’s also diversified its
range of products with Wowie(with Disney characters for

68
kids),Crackle, Fruit and Nut(variations of the Dairy
Milk),Bournvita(health drink)Deserts,Perk(wafer ingredient) and
éclairs(toffee segment).

Cadbury’s today holds 30 per cent markets share in the


confectionaries industry and sells around 1 million bars a day.

Targeting of Cadbury

Cadbury is looking to attract millions of new customers by


shifting its strategy to focus on low-income consumers. The
British candy maker, which has been in India for more than 60
years and dominates the chocolate market, is making candy
affordable to this massive untapped segment with products
such as Cadbury Dairy Milk Shots--pea-sized chocolates, sold
two to a package, for two rupees, or about four U.S. cents.
These chocolates are encased in a sugar shell to protect them
from the heat.

"We seek to reach out to all of those consumers that are away
from the cities and to sell [small] piece products at low price
points," stated Cadbury chief executive Todd Stitzer.

Positioning of Cadbury

Cadbury India has unveiled a new campaign that


continues with the brand's 'Kucch Meetha Ho Jaye' positioning.
Created by Ogilvy & Mather, the campaign revolves around the
theme of 'Pay Day', which is associated with happiness by most
people. Brand positioning is the aspect of the brand actively

69
communicated to the target audience, specifically, its
competitive advantage, values and imagery. It is strongly
related to the perception and image of the product. When
devising a positioning strategy for a product, marketers must
establish a unique and distinctive image of that product in the
mind of the consumer. This will differentiate a company’s
product from its competitors.

OVERCOMING THE WORM CRISIS USING IMC


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.

The state Food and Drug Administration has ordered seizure of


Cadbury's Dairy Milk chocolates from all over Maharashtra after
worms were found in two of them in Mumbai.

Cadbury India, whose chocolates had ridden into controversy


late last year during the festival season because worms were
discovered in some stocks of its Dairy Milk chocolates is
probably hoping the association with Bachchan will help
consumers forget the bad press the company got on account
of the discovery.

The Food and Drug Administration had then seized the


company's stocks and the Cadbury India management had
explained it was bad storage practices by retailers and
distributors that had led to the worms. Cadbury India's sales fell
following the discovery. And even the government got into the
act with the central health ministry asking for a report on the
controversy.

70
The "worms‟ controversy" came at the worst time. The next
few months were the peak season of Diwali, Eid & Christmas.
Cadbury sells almost 1,000 tonnes of chocolates during Diwali.
In that year, the sales during festival season dropped by 30
per cent. The company saw its value share melt from 73 per
cent in October 2003 to 69.4 per cent in January 2004. In May,
however, it inched up to 71 per cent. CDM sales volumes
declined from 68 per cent in October’03 to 64 per cent in
January 2004 Clearly, the worm controversy took a toll on
Cadbury's bottom-line. For the year ended December 2003, its
net profit fell 37 per cent to Rs 45.6 crore (Rs 456 million) as
compared with a 21 per cent increase in the previous year.

The controversy created an deep adverse impact on the


company with their sales not only drastically dipping down, but
at the same time allowing the competitors to establish their
foothold and taking maximum advantage of Cadbury’s
misfortune.

The controversy, and the adverse publicity received in several


countries, set back its plan of outsourcing model which would
have resulted in significant revenue generation, several months
back.

ROLE OF THE PUBLIC RELATIONS


PR concerns the total communications of your total
organization/group of organizations.

PUBLIC RELATIONS FORM AN INDISPENSABLE PART OF ANY


ORGANISTION.

Public relations include ongoing activities to ensure the


company has a strong public image.

71
Public relations activities include helping the public to
understand the company and its products.

Often, public relations are conducted through the media that is,
newspapers, television, magazines, etc.

It is unlike advertising, where you are sharing skills of planning,


creative and media buying teams with an out-sourced agency.
PR calls for a very intimate understanding of the total inner
workings of your organisation at all levels workers to Board
levels. It requires the integration of knowledge and
communications. PR if used properly can have an impact 10
times higher than Advertising. And at times, especially during
crisis advertising doesn‟t work but only PR works.

It is not a part time job for a Marketing Services Manager. If it is


to work and serve the larger objective, the PR department
should be independent, servicing others like production,
personnel, marketing, finance, corporate agendas. Therefore,
the PR Head should be part of the top management team
reporting directly to the CEO. He also needs to share
everyone's confidences.

PR RESCUES CADBURY
The PR department of Cadbury’s played a very effective role in
managing the reputation and keeping up the goodwill of the
company.

After being struck with the Worm Controversy it was not


possible to create a very good impact on consumers who
trusted the company the most. But through the efforts and a

72
good PR team Cadbury’s managed to wriggle itself out of the
controversy with a clean chit.

STEPS TAKEN TO SOLVE THE CONTROVERSY


1. NOT DENYING THE FACT

It helped that the Maharashtra Food and Drug Administration


had given a clean chit to the company's two plants in the state.
Cadbury went into overdrive to tell consumers that improper
storage of what is essentially a perishable commodity might
lead to worm infestation.

That last November Bharat Puri, Cadbury's mild-mannered MD,


went to media offices around the country meeting reporters,
answering mostly hostile queries and patiently explaining the
company's stand on the issue.

"Unlike the cola companies which were caught in a controversy


just a month earlier and displayed an ostrich-like attitude,
Cadbury did not go into denial mode. It accepted that there
was a problem, which may not have been of its own making,
and made a commitment to the consumer that it would plug all
possible safety loopholes," says a Mumbai-based brand
consultant.

As a result Cadbury improved the packaging and paid more


attention to the way its chocolates were stored by nearly
6,50,000 retailers across the country.

2. TAKING PRECAUTIONS
'Project Vishwas' - “Steps to ensure quality & regain the
confidence”

Following the controversy over infestation in its chocolates,


Cadbury India Ltd unveiled 'Project Vishwas', a plan involving

73
distribution and retail channels to ensure the quality of its
products.

The Vishwas programme was intended to build awareness


among retailers on storage requirements for chocolates,
provide assistance in improving storage conditions and
strengthen packaging of the company's range of products.
Cadbury reduced the number of chocolates in its bulk packets
to 22 bars from the present 60 bars. These helped stockists
display and sell the products "safely and hygienically".
1,90,000 retailers in key states were covered under this
awareness programme.

"What you see now is the most over-engineered packaging for


a Dairy Milk chocolate anywhere in the world. Even our festival
packs come with a tamper-proof outer sealing and improved
packaging inside," explains Purohit.

The new double packaging even for the smallest offering, the
13 gm Rs 5 Cadbury Dairy Milk, had the bar wrapped in
aluminium foil and enclosed in a polyflow pack, which was
sealed on all sides.

The larger Cadbury Dairy Milk packs came in poly-coated


aluminium foil, which was heat-sealed and then wrapped in the
branded outer package. Both these initiatives are country
specific and Cadbury invested nearly Rs 25 crore (Rs 250
million) this year on new machinery for the improved
packaging.

The company's team of quality control managers, along with


around 300 sales staff, checked over 50,000 retail outlets in
Maharashtra and replaced all questionable stocks with
immediate effect. The company also carried out quality checks
at its facilities as well as its carrying and forwarding
warehouses and distributor warehouses and found products
free of infestation.
74
3. GAINING BACK TRUST
The Big B promoted the Big C in the chocolate business -
Cadbury in India. Indian cine superstar Amitabh Bachchan has
signed on to become the brand ambassador of the chocolate
major for two years.

The Big „B‟ FACTOR

The big factor that has pushed up CDM sales is the Amitabh
Bachchan campaign. It helped restore consumers' faith in the
quality of the product. In early January that year, Cadbury
appointed Amitabh Bachchan as its brand ambassador for a
period of two years. The company believed that the reputation
he has built up over the last three decades complements their
own, which was built over a period of 50 years. AB played a
pivotal role in all communication relating to Cadbury's products
and brands, be it in print, on television or the great outdoors,
the company's managing director Bharat Puri has been quoted
as saying in media reports.

With the help of its Public Relations Dept. and advertising


agency O&M, it created a campaign which aimed for both
rational and emotional appeal.

One of the ads showed Bachhan visiting a Cadbury plant,


inspecting the systems and processes and finally consuming a
bar of chocolate to be convinced that there's nothing wrong
with the brand.

Addressing his audience, Mr. Bachchan says, "Mujhe aapse


kuch kehna hai, jis kaam mein manushya ki antar aatma uske
saath na ho, uss kaam ko karne se usse sab kuch mil sakta
hai... man ki shaanti nahin mil sakti. Isliye jab Cadbury walon
ne mujhe kaha ki unki baat main aap tak pahunchaoon, to

75
pachpan saalon se Cadbury khaane wala main bhi thoda sa
hitchkichaya.... ...Maine unse ek sawaal poocha, ki kya iske
baad main chain ki neend so paoonga ya nahin, to jawaab mein
voh mujhe apni factory le gaye."

Walking into the Cadbury factory, he takes a look at their


complete manufacturing process and continues, "Aur mujhe
apni international technology.... apne kade quality controls aur
double protection... ...packaging dikhayi." Saying which he
takes a bite of the chocolate. Finally giving his personal
assurance and approval he says, "Aaj kal mein badi chain ki
neend so

raha hoon." "Ab aapki favourite Cadbury Dairy Milk naye purity
seal pack mein."

76
Future Strategy
In the branded impulse market, the share of chocolate in 6.6%
and Cadbury’s share in the impulse segment is 4.8% factor like
changing attitude, higher disposable income, a large youth
population, and low penetration of chocolate (22% of urban
population) point towards a big opportunity of increasing the
share of chocolate in the branded impulse among the costly
alternative in the branded impulse market.

It appears that company is likely to play the value game to


expand the market encouraged by the recent success of its low
priced ‘value for many packs’.

77
Various measures are undertaken in all areas of operation to
create value for the future.

New channel of marketing such as gifting and child connectivity


and low end value for money product for expanding the
consumer base have been identified.

In terms of manufacturing management focus is on optimizing


manufacturing efficiencies and creating a world class
manufacturing location for CDM (Cadbury Dairy Milk) and
Éclairs. The company is today the second best manufacturing
location of Cadbury’s Schweppes in the world.

Efficient sourcing of key raw material i.e. coca through forward


purchase of imports, higher local consumption by entering long
term contract with farmer and undertaking efforts in expanding
local coca area development. The initiatives in the terms of
development a long term domestic coca a sourcing base would
field maximum gains when commodity prices start moving up.

• Use of it to improve logistic and distribution competitiveness.

• Utilizing mass media to create and maintain brands.

• Expand the consumer base. The company has added 8 million


new consumer in the current year and how has consumer base
of 60 million although the growth in absolute numbers is lower
than targeted, the company has been able to increase the
width of its consumer base through launch of low priced
products.

78
• Improving distribution quality by addressing issues of product
stability by installation of visit coolers at several outlets. This
would be really effective in maintaining consumption in
summer, when sales usually dip due to the fact that the heat
effects product quality and thereby consumption.

• The above are some steps being taken internally to improve


future operation and profitability. At the same time the
management is also aware of external changes taking place in
the competitive environment and is taking steps to remain
competitive in the future environment of free imports, lower
barrier to trade and the advent of all global players in to the
country. The management is not unduly concerned about the
huge deluge of imported chocolate brands in the market place.

It is of the view that size of this imported premium market is


small to threaten its own volumes or sales in fact, the company
looks at the tree important as an opportunity, where it could
optimally use the global Cadbury Schweppes portfolio. The
company would be able to not only provide greater variety, but
it would also be more cost effective to test market new product
as well as improve speed of response to change in consumer
preference through imports. The only concerns that the
company has in this regard is the current high level of duties,
which limit the opportunity to launch value for money products.

79
CORPORATE SOCIAL RESPONSIBILITY
Cadbury Schweppes approach to corporate social
responsibility (CSR) stems from its founders philosophy of fair
treatment of employees and philanthropy in the community.
Cadburys started life in beverages, as a tea and coffee business
promoting tea and cocoa as an alternative to alcohol for
workers. When the Cadbury family established the Bourneville
factory in 1879, they believed that profitable business required
healthy communities. The family had a Quaker background and
social benefit was a value they upheld. “Today our CSR is still
about this – promoting prosperous, sustainable, educated and
inclusive communities because they are good for business,”
said Neil Makin, External Affairs Director.
In 2001 the company developed a five-year programme to
review, re-articulate, update and embed its CSR commitments
within the company. The programme is based on five
areas: human rights and employment standards; ethical
sourcing and procurement; marketing, food and
consumer issues; environment, health and safety; and
community investment.
The company’s approach to adding value to the community
centres around three approaches:
• Money – providing specific contributions, for example
sponsorship of community-focused events or activities;

80
• Time and skills - making a greater contribution to the
community through its people, for example by using
company skills for community organisations; and
• Gifts-in-kind – for example donation of materials, products,
promotional materials, equipment and furniture.

81