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SUBMITTETD TO SUBMITTED BY: Prof.Dr.MADHAVI PANDYA
P.SANDEEP(M5-50) THOMAS DON(M5-42) SAI SASIKANTH(M5-52)
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
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
(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.
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
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,
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'
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
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.
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
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
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
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.
1.Nestle 2.GlaxoSmith Con 3. Britannia 4. Kwality Dairy
Amitabh Bachchan is Cadbury brand ambassador
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
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
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.
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.
BUILDING A MEGABRAND: CADBURY DAIRY MILK
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 Dairy Milk. In 2002 more than 19 million 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
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.
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
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’.
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
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
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."
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. 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
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
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
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 launchedwhich 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
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.
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 reinvented 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
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.
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.
To promote the new Dairy Milk Brand core: This is the creed or genetic code of the brand;
campaign. This involved a highly Megabrand, 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.
The 360 degree support campaign include a point of sale competition to win a new look , new display units , a buy-twoget-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
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
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 widespread 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
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 unmatched 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
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.
• Lack of launch of new brands in Chocolates segment.
• 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.
• Stiff competition in Confectionery segment.
• 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.
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
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.
INTEGRATED MARKETING COMMUNICATION OF CADBURY
Marketing communication mix elements
“ 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
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
• Focuses on cricket. • Spread joy • Focusing on different professions 2) New ads More trendy Teenage oriented More event oriented.
THEIR PRODUCTS IN DIFFERENT WAYS
in the market depend upon
The sales of product
advertising which is one of the factors that boosts the sales of
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
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
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
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
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 multiaward 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.
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
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
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
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.
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
8) Nutties 9) Temptation 10) Milk Treat
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
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
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.
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 phonebook 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.
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…
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.
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
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. another one This may work when the product is a Usually, this is the case only for standard one where one competitor really can’t offer much that can’t. 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
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). consumers? Firms Thirdly, do we have strengths as a may already have an established company that will help us appeal particularly to one group of 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
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 adcampaigns, 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
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 CocoCola. Both helped them crawl their ways through into hearts of the rural population of the country, which had an untapped and astounding potential. The dressed advertisement up as a campaign of Amitabh announcing Bachchan, 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
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
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.
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 organization/group of organizations. of your total
PUBLIC RELATIONS FORM AN INDISPENSABLE PART OF ANY ORGANISTION. Public relations include ongoing activities to ensure the company has a strong public image.
Public relations activities include helping 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
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
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.
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
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."
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’.
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.
• 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.
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;
• 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.