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In order to increase sales Cadburys needs to undertake a range of marketing activities before deciding upon the best way to encourage the purchase of its product. When identifying the basic principals which Cadburys must apply to its marketing will be its basic objectives because all business must have objectives it allows them to increase sales and make profit. Corporate aims are the long term intentions of a business, whereas corporate objectives are the specific targets required to achieve the aims. The common aim and objectives of the corporation such as Cadbury includes the following: 1 Survival 2 Profit maximisation- which is often taken to be the reason why firms exists and to be the primary objectives in practices most firms have a hierarchy of objectives when a firms survival is threaten it may profit maximise in order to restore its financial health. 3 Growth- which includes Cadbury selling new products or expanding overseas. 4 Diversification- which is the spreading of business risks by reducing dependence on one product. 5 Sales maximisation- which is the increasing of sales 6 Improving the product image-which includes creating a new logo or launching a new brand of product and creating more attractive packaging. For example, Cadbury set out two objectives for the development of their chocolate, Fuse. These were: 1. To grow the market for chocolate confectionery
2. To increase Cadbury's share of the snacking sector When launching a product the company Cadbury’s had to make sure that any new product in the snaking sector must establish points of difference, creating a unique selling proposition (USP) i.e. a product with unique appeal which is not shared by any of its competitors. Referring back to the example of Fuse, Cadbury lost a lot of money testing out the combination of various ingredients and more than 250 were combined before the recipe of the chocolate was finalised. As the products are developed, Cadbury tests them to ensure that consumers are willing to buy them. Cadbury then promotes its products in various ways such as the use of above the line promotion, which is where a product is advertised through consumer media such as television, magazines, newspapers and radio.
The caselet discusses the marketing communications strategies followed by Cadbury India Ltd. (CIL), for its flagship brand Cadbury’s Dairy Milk (CDM) in India. The caselet describes how the marketing communications strategy for CDM evolved over the years. From the mid-nineties, the company decided to target the Indian adult through Cadbury’s Dairy Milk. The caselet also describes the efforts made by CIL to manage the ‘worm controversy’ in October 2003 to maintain the brand image of the company. Issues: » Use of emotional appeals in advertising » Customer surveys as a means to align the advertisements with evolving consideration sets of customers. » Packaging as a tool to communicate quality Introduction Cadbury India Ltd. (CIL) is the wholly-owned subsidiary of the leading global confectionery and beverages major -- Cadbury Schweppes. From a trading corporation that began operations in India in 1947, CIL has become a market leader in the confectionary segment. Cadbury has a 70 percent market share in chocolates. Some of its brands are Dairy Milk, 5 Star, Gems and Perk.
Cadbury’s Dairy Milk (CDM) is its flagship brand, having a market share of 30% and average daily sales of 1 million bars. Till the mid-nineties, CIL’s marketing communication campaigns for CDM were targeted at kids. The advertisements focused on the relationship between the parents and their children, where parents expressed their love by gifting the child a Dairy Milk. However, in 1994, CIL changed its tack and the communication campaigns were targeted at adults, to expand the chocolate market and increase sales.
The prospective customers of Cadbury diary milk have changed from kids to adults including every family member to celebrate any occasion with dairy milk.
Search This Blog Top of Form Search powered by Bottom of Form This Blog Linked From Here The Web This Blog Top of Form Bottom of Form Linked From Here The Web Tuesday. …………………. my project guide for providing me inspiration. January 26.. So I take this as a great opportunity to pen down a few lines about the people to whom my acknowledgement is due.) ACKNOWLEDGEMENT The satisfaction and euphoria that accompany the successful completion of any task is incomplete without the mention of people who made it possible. guidance. help and valuable suggestions throughout the project. .. encouragement. It is with the deepest sense of gratitude that I wish to place on record my sincere thanks …………………………………………………. I would also like to thank all my respondent for giving me their valuable time and information. 2010 CADBURY(the marketing strategies of Cadbury India Ltd.
29 Chapter 5 Servicing Analysis & Interpretation Page No. The topic given to me was: “JOURNEY TO ZENITH OF CADBURY” I have tried to put my best efforts to complete this task on the basis of skill that I have achieved during my studies in the institute. . the company should always be ready to make necessary changes according to the requirements in order to attract more customers so as to maintain a substantial growth in the market. 89 PREFACE The success of any business entity solely depends on how effectively does it utilizes its optimum resources and how soon does it make arrangements for the removal of the customer’s grievances. I have tried to put my maximum effort to get the accurate statistical data. 6 Chapter 3 Agency Profile Page No. 81 Part III Chapter 8 Appendices & Annexure Page No.TABLE OF CONTENTS Acknowledgement Page No. If there is any error or any mistake in collecting the data. 86 Chapter 9 Bibliography Page No. Moreover. 68 Chapter 7 Finding. 2 Chapter 2 Introduction Page No. Conclusion & Suggestion Page No. 34 Chapter 6 Data Analysis Page No. 1 Part I Chapter 1 Abstract Page No. please correct it in the best way as I am still learning. 19 Part II Chapter 4 Research Design Page No.
one of the most efficient in the world. the confectionary and soft drink market intech UK and becoming a major force in the international market. The Cadbury India’s no. The merge in 1969 with Schweppes and the subsequent development of the business have led to Cadbury Schweppes taking the led in both.CHAPTER-1 INTRODUCTION Introduction The Cadbury’s Inc has taken the opportunity to offer us a broader view of chocolate category. CHAPTER-2 OBJECTIVE . Cadbury Schweppes today manufactures product in 60 countries and a trade in staggering 120.1 Chocolate is able to share with their market insights based upon unparalleled breath of chocolate experience. Cadbury has grown from strength to strength with new technologies being introduced to make the Cadbury confectionary business. A story that you will remember as the story of “The taste of life”. The Cadbury story is a fascinating story of a family business that grew in one of the biggest. most loved chocolate brand in the world.
I have done few analyses:(a) SWOT Analysis (b) PEST Analysis And also 5 P’s of Marketing:• Product • Price • Physical Distribution • Promotion • Positioning CHAPTER-3 RESERCH METHODOLOGY RESEARCH METHODOLOGY Achieving accuracy in any research requires in depth study regarding the subject. the research methodology adopted is basically based on primary data via which the most recent and accurate piece of first hand information could be collected. And to arrive at my findings.OBJECTIVE OF THE PROJECT My main objective of the study on this project is to demonstrate the marketing strategies of Cadbury India Ltd. Primary data was collected using the following techniques Questionnaire Method Observation Method The main tool used was. observation method has been continuous with . the questionnaire method. As the prime objective of the project is to compare Cadbury with the existing competitors in the market and the impact of Nestle on Cadbury. Secondary data has been used to support primary data wherever needed.
# To these geographical area questionnaire was given. 21 who after 5 difficult years almost shut down the business to take up other vocation. wherever required. they didn’t. Procedure of research methodology # Target geographic area was Delhi. Cadbury and its competitor history. therefore best’. Richard. 1831 – By this year the business had changed from a grocery shop and John Cadbury had become a manufacturer of drinking chocolate and cocoa. as one continuously observes the surrounding environment he works in. 25 and George. now one of the world’s largest producer of chocolate. The essence was advertised as ‘Absolutely pure. # Finally the collected data and information was analyzed and compiled to arrive at data the conclusion and recommendations given. 1866 – Saw a turning point for the company with the introduction of a process for pressing the cocoa butter from the coca beans. but the plentiful supply of coca butter remaining was also used to make new kind of eating chocolate. A larger factory in Bridge Street Birmingham was rented in 1847. 1879 – Business prospered from this time and Cadbury Brother outgrew the Bridge Street factory. Fortunately for generation of chocolate lovers. This was the start of Cadbury manufacturing business as it is known today. John Cadbury.the questionnaire method. current issues. policies. procedures etc. This not only enabled Cadbury Brothers to produce pure coca essence. John Cadbury was joined by his brother Birmingham and the business became Cadbury Brother of Birmingham. 1861 – John Cadbury resigned his business and handed over to his sons. in Bull street Birmingham was to be the foundation of Cadbury Limited. moving in 1879 to a ‘Greenfield’ site some miles from the center of Birmingham which . Sources of secondary Used to obtain information on . NCR and Aligarh. # Internet # Magazines # Newspapers CHAPTER-4 ABOUT CADBURY THE LEGEND CALLED CADBURY 1824 – A business was opened in 1824 by a young Quaker.
Quality has been the focus of the Cadbury business from the very beginning as generations have worked to produce chocolate with that very special taste.K from continental manufactures. Cadbury today is the market leader in the U. Four years of hard work were invested in the project and in 1905 what was to be Cadbury’s top selling brand was launched. A new recipe was formulated fresh milk and new production processes were developed to produce milk – chocolate not merely as good as Swiss chocolate but better than the imported milk chocolate. By today’s standards this chocolate was not particularly good as it was very coarse and dry and was not sweet or milky enough for public tastes.came to call Bourneville. The company is the confectionary division of Cadbury Schweppes plc which is major force in the confectionary and soft drinks international market. . 1899 – In this year the business private limited company – Cadbury Brothers Limited progress since the start of the century. Led by George Cadbury junior. Highland Milk and Dairy Maid. A considerable amount of time and money was spent on research and new plant design to produce the new chocolate in much large quantities. cocoa butter and sugar. smoothness and snap.wide Cadbury is one of the pre – eminent names in confectionary with impressive range of famous brands. Dairy Maid became Dairy Milk and Cadbury’s Dairy Milk with its unique flavor and smooth creamy texture was ready to challenge the Swiss domination of the milk chocolate market.World . employing the most advanced processing technology and management information and control techniques. who were renowned for their milk chocolate. today Britain’s favorite moduled chocolate bar. so characteristics of Cadbury’s chocolate. ORGANIZATIONAL STRUCTURE Design Development Milk chocolate for eating was first made by Cadbury in 1897 by adding milk powder paste to the dark chocolate recipe of cocoa mass. Chocolate has moved being a “luxury” item to well within the financial reach of everyone.K chocolate confectionary market. 1905 – Cadbury has many famous brands with one of major success story being Cadbury’s Dairy Milk chocolate launched in 1905. At that time there was a great deal of competition in the U. not only the French with their fancy chocolates but also from the Swiss. Three names were considered Jersey. the Bourneville experts set out to meet the challenge. The opening of the Cadbury factory in a garden also heralded a new era in industrial relations and employee welfare with joint consultation being just one of the introduced by the pioneering Cadbury Brothers.
Its Hundred Percent subsidiary in India named Cadbury Schweppes Beverage India (private) Limited (CSBIL) started operation in March 1995. While advertising and label design have changed with fashion and considerable strides have been made in manufacturing technologies. Cadbury’s Dairy Milk Story Chocolate has been enjoyed by successive generation since the manufacturing process was developed in the Victorian Times. The first brand was launched was Crush which was later followed by Canada Dry. With its stylish. a position that it has held ever since. not just special occasion and it represented the best buy in the chocolate for millions of people. arranged on trays from which it was sold loose to customers.By 1913 it had become the company’s best selling line and in the mid twenties Cadbury’s Dairy Milk gained its status as the brand leader. The half pound deep – lidded box with the traditional purple background and gold script was introduced in 1916. the recipe for Cadbury’s Dairy Milk its ‘glass and a half of full cream milk in every half pound produced’ is still basically the same as when it was launched. The pack design has been regularly updated and the assortment itself has changed in line with consumers taste and preferences. Cadbury Schweppes Cadbury Schweppes plc. a global beverage and confectionary giant with annual sale of Rs 20.000 crores . Good chocolatiers is an art form depending on recipe traditions. It was the introduction of the Van Houten cocoa press from Holland that was the major break through in the chocolate production as it provided extra cocoa butter needed to make a smooth glossy chocolate. Schweppes Tonic Water. followed by one pound box in 1924. By today’s standards the first chocolate for eating would have been considered quite unpalatable. without frills presentation Milk Tray was the assortment for everyday. Today more than 250 million bars of Cadbury’s Dairy Milk are made every year and sales reach over 100 million Pound in value. Originally Milk Tray was packed in five and as half pound boxes. Chocolatiers have use their skills to make balanced recipe in which all the ingredients combine to produced chocolate with all the characteristics that enable full delicious taste to be enjoyed by the consumers. By the end mid – thirties the Cadbury’s Milk Tray assortment outsold all its competitions and today it is still one of the most popular boxes of chocolates in this country. which have grown over the years. Cadbury’s Milk Tray – 1915 Milk Tray has maintained its popularity in the changing world since the milk chocolate assortment made with the famous Cadbury’s Dairy Milk chocolate was first introduced in 1915. . Schweppes Bitter Lemon.is the worlds number one non – cola soft drink company having bottling and partnership operations in 14 countries and franchises of its brand in a further 86 countries around the world. The name ‘tray’ derived from the way in which the original assortment was delivered to the shops.
they are the hardware”. As its CEO Mr. The other aspects like machinery. It has a policy for FOBOs (Franchise owned bottling operations ) unlike Coke and Pepsi which prefer COBO. In FOBO the beverages company only supplies the concentrate and the marketing support to build brand equity. “we are the software.CSBIL with its franchise agreement with 19 bottling plants throughout India proposes to be a household name. PRODUCT PROFILE CHAPTER-5 SWOT AND PEST ANALYSIS OF CADBURY . land and distribution is the responsibility of the bottler. Ashok Jain says.s (Company owned bottling operations). bottling line.
Three sectors. 7. “Make in India” tag once the economy opens up wore and imports rush in.) 2. 3. food drinks (14% . 60 mid urban (22%) customers. no political effects are envisaged. . Chocs (70% share). etc…). Due to its 54 years presence in India – has deep penetration – 2100 distributors.. Substitute to “Mithais” with higher calories/cholesterol. E: 1) Increasing per capita income resulting in higher disposable income. Fazer. Poor technology in India compared to current international technologies (Godiva. b) Minor :Globalization will bring in better brands for upper end of the market (Liest. 6. Godiva. 3.SWOT ANALYSIS Strength 1. 4. Pest Analysis P: Since the budget range is decontrolled. Monarch. Better market penetration. Conclusion:Will lose market share with globalization but will remain brand leader. etc. Low cost of production due to economic of scale. Ltd. 2. Dint. Growing middle class and growing urban population. Increasing per capita national income resulting in higher disposable income. Key products.000 retailers. Opportunities 1. 5. 2) Growing middle class/urban population – increase in demand. it is success in India. Confec (4%). Threats a) Major :Due to low cost and highest brand equity.leader in brown segment). 3. 4. Weakness 1. Increasing gifts cultures. Mozart. Increasing departmental stores concept – impulse @ at cash counters. That means higher profits.. Pralines range totally wising in India. Very strong brand equity in India. Naushans. 3) Low cost of production – better penetration. only one central brand (CDM). Globalization: optimal use of global Cadbury Schweppes. 5. Second best manufacturing location throughout Cadbury Schweppes. 450. Tremendous scope for per capita consumption (160 gms of 8 – 10 kg) 2.
3) Lower cholesterol than “mithais” (sweet meat) subsbstitute demand. CHAPTER-6 AN INSIGHT ON 5 P’S OF MARKETING (CADBURY) 5 P’S Of Marketing 1 . delivering to his door step additional benefits which he would never have imagined . Chocolate & Confectionary 1) Dairy Milk 2) Fruit & Nut 3) 5 Star 4) Break 5) Perk 6) Gems 7) Eclairs 8) Nutties 9) Temptation 10) Milk Treat II. Beverages III.PRODUCT The average company will compete for customer by conforming to his expectation consistently. The wide variety products offered by the company include: I.S: 1) Per capita consumption expected to increase – fashion. 2) Increasing gifts culture – increase in demand . T: Will have to reinforce technology to international levels once India is a “free” economy. Food Drinks 1) Bourn vita 2) Drinking chocolate 3) Cocoa . But the winner will surpass them by constantly exceeding his expectation. Cadbury’s offer such product.
18 Bournvita (500 gm) Rs.28 million sq. Cadbury’s distribution network has expanded from 1990 distributors last year to 2100 . 10 5 Star Rs. the prospective customers can have access to the product. Own distribution network consist of clearing and forwarding (C&F) agents & distribution stockiest. Second P of marketing is not another name for blindly lowering prices and relying on this strategy alone to increase sales dramatically. 155 million household has over 4 million retail outlets in 5351 urban markets and 552725 villages. Dairy Milk Rs. India – 1 billion people. So every customer segment has different price expectation from the product. Cadbury’s distributes the product in the manner stated above. 22 Gems Rs. km. television has already primed and population for consumption. 104 Drinking chocolate Rs. spread cross 3. Buyers are paying for distribution equity not brand equity and market shares. In a product and price parity situation. 15 Perk Rs. The fundamental axiom of Indian consumer market is this: You can set up a state-of –the-art manufacturing facility. 10 Friut and Nut Rs. language. 50 3 .Pricing Make no mistake. This network of distribution can either contact wholesalers and which in turn retailers or the distributors can contact to the retailers directly. And your brand equity isn’t going to help when it comes to tackling these issues. Why does the company need distribution equity more in India? With technology and competitive pressure slash in it is becoming increasing difficult for marketers to retain a unique product differentiation for long period. 10 Break Rs.Physical Distribution – “Place” Distribution Equity:It takes much more time and effort to build. Cadbury’s has launched various products which cater to all customer segments.2 . 5 Nutties Rs. 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. life style. distribution equity is hard to erode. and the marketer who can get to the to the consumer ahead of competition will give a hard – to – overtake lead. but the end of it all. Once the stock product reaches retailers. but once built. The cardinal task before the Indian market in managing is to shoe-horn its product on retail shelves. hire the hottest strategies on the block. you should know how to sell your products. and then progressively moving through them. swamp prime television with best Ads. transport and communication network. But getting their means managing wildly different terrains-climate. Therefore maximizing the returns involves identifying right price level for each segment. the brand that sells more is the one that reaches the highest number of customers. value system.
it has installed visi colors at several outlets. Finding showed that the adults felt too conscious to be seen consuming a product actually meant for children. Éclairs has got potential for much wide distribution.wwww. 4 . that produced just the value vacuum that Cadbury was looking to fill. Beside three company website(i. Something familiar is planned for phone-book as well.000 retailers. To address the issue of product stability. Beside use of TI to improves logistics.com. the management plans to tap this new channel of marketing. 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. it had also entered into various marketing relationship with other portals. To penetrate into the inner recesses of customer memory. ad agency contract has created communication for cinemas and even ATM machines for the brand. Ad since any discussion today would be incomplete without mention ‘e’ word. It often both attracts and generates arm feelings. a distribution expansion would itself being incremental volume. which has faced problems with its taste. a successful campaign has a stronger element of the unexpected a quality that good advertising shares with much worthwhile literature. The next round of activity will include the wafer-chocolate Perk and the Picnic bar. At Cadbury.cadburyindia.com. unselfish conscious. communication must first ensure exposure. specially targeted during festivals and events such as Valentines day . The strategic response addresses the emotional appeal of the band to the child within the adult. Cadbury has a message on-screen just before the lights are dimmed to give them a chance to get their temptations. Cadbury is also attempting to improve the distribution quality.com) that the company has launched. All ICICI’s ATM a message flashes on the screen as soon as customer inserts his ATM card. Milk treat has also been launched in a module bar form.cadburygift. grab his acceptance and then extract retention competing with thousands of other units of communication trying to do the same. hostels. Thereafter it was the job of the advertising to communicate customer the wonderful feeling that he could experience by re-discoursing the careful. grab his attention evoke his comprehension. There will also be after dinner sampling in restaurants – to begin with. The company is looking to reduce this parity level. is much higher than Nestlé’s 12% or even pure sugar confectionery major Parry’s 11%. at 18% of total costs. As well as outdoor and radio ads. 30 catteries in Mumbai have been selected. in a small sweets that airlines. Cadbury’s marketing costs. It tells the customer that this would be good time to get out of his temptation since he/she is bound to be alone. 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. etc…. . they believe that selling confectionery is it like selling soft drinks. The other reason is arch rival Nestle reaches more than a million retailers.bourvita. because of the peanut it contains.e.Promotion Effective advertising is rarely hectoring or loudly explicit…. 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.www.distributors and 4. and up market retail outlet offer to guest and customers. just in time of Diwali gifting market.www. Naturally. In cinemas. 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. More often than not.50. Looking at the low penetration of the chocolate. This increase in distribution is going to be accompanied by reduction in channel costs.
Symbolizing togetherness. 5 star was originally targeted at teenagers. As a variety of competitive claims assails her senses. 2) 5 star: although positioned internationally as an energy bar. and the winner will be that super value marketers…. good items. ‘Real taste of Life’. 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. Colorful chocolate buttons appeal most to children and that is why Cadbury is re-targeting children. 4) Gems: broadcasting Gems. Éclairs was re-launched during the midnineties with a new name. the quicker becomes her search process.It’s a combination of spiffing up its key brand. 5 . But now. the company reworked the strategy for 5 star to make it a source of energy. In the 1980s. Positioning of individual product: 1) CMD: is and always remain flagship brand. 5 star was positioned on an emotional platform in India during the late 1980s.” 5) Crackle: it was the first Cadbury’s chocolate to have crunch in it. researching and improving the newer products that haven’t taken off. Cadbury decided to sell it to teenagers with the ‘Smart Very Smart’ campaign. In June 1994. . 3) Éclairs: competing in the chewable toffees segment. 5 star’s energy bar positioning made it a snacking chocolate.Positioning In the 1970s consumers were ready to pay “more for more”. as well as expand the market. and the discounting era grew strong. didn’t prove to be feasible proposition for Cadbury. The punch by the company for advertising this product life. though. Since Cadbury’s is more clearly associated with a particular set of attributes in terms of benefits and prices. before the launch of Perk. and luxury goods flourished. 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. consumers began to demand “more for same”. the company is retargeting children with its animated commercial. “Gems are the best brand to speak to children. Today’s consumer demanding “more for less”. The chocolate is meant for all age groups. In fact. supported with high ad – spends that Cadbury hopes will see it emerges stronger after the current slowdown. Dairy Milk Éclairs. It has goodness of milk. taste and appetite appeal. It was targeted as a funky chocolate to add spark to life. Targeted at children under 12 years with ‘Gems Bond’ advertising. itself defines the positioning of the product. today customer uses complicated decision making process to assess the alternative before making a purchase. enjoyment. It symbolizes fun.
Cadbury preempted the launch of Nestlé’s Kit-Kat by rushing a new brand. Impulse segment¬ – these products are often purchase on impulse. for example Cadbury’s Perk and snack range. Bournvita combined the nutritious value with taste. 1995.g. Perk into the market. such as the. Positioned much further on the functional scale of 5 star. Cadbury takes into account all these¬ factors when producing a range of products. Take home segment – this describes product that are normally purchased in supermarkets.6) Perk: in September. 7) Bournvita: positioned as tasty health drink. Consumers age groups. While its competitors concentrated only on health aspect. gender. CHAPTER-7 MARKET SEGMENT AND MARKETING STRATEGIES OF CADBURY Cadbury’s Market Segment Market place for any product is comprised of many different segments of consumers. taken home consumed at a later stage. Markets segmentation can be defined in a number of ways such as: Demographic variables (e. eating these and then. It targets different segments within the market. They include product such as Cadbury’s Dairy Milk.e. their interests and activities) the benefits which consumers look for in a product or on the occasions when the product might be consumed. each with different needs and wants. material states income etc…)¬ ¬ The lifestyle of consumers (i. Perk was meant to be light snack-product for subduing the first pangs of hunger. Break segment – products¬ which are normally consume as a snatched break and often with tea and coffee.¬ .
from boutique product – packaged raw indulgence – to a casual food”. The Real Taste of Life campaign. and CDM in particular. Cadbury’s Dairy Milk chocolate suffered stagnancy even as other consumer products boomed. Over a period of 12 months. starting February. They had to find new customers. For seven long years. and usage intensity. high recognition. In fact. . It focused firmly on its target segment. the behavioral and attitudinal patterns conveyed by the communication to build the brand were proving restrictive. trying to win away customers from competitors in this stagnant market wouldn’t help. and lack of excitement. Cadbury had. And it wasn’t so much a re-launch as it was a process of rejuvenation. it systematically dismantled the franchise that the company had built over 30 years of its flagship brand. The obvious solution. “The baggage of the past was so overpowering that people didn’t get influenced by minor shifts in the message”. “Cadbury’s Was Caught In Its Own Trap” How? The company had. Cadbury was desperately seeking growth for the brand… “With a market share of 70%. both the brand and the category were displaying symptoms of age: faltering growth. the Rs. their own. chocolate straddle a continuum.The Real Taste of Rejuvenation (transformation) It was the market – leader. with sale rising by an average 40% per annum. 314 crore confectionery makers Cadbury embarked on the most outrageous repositioning exercise in the recent history of Indian marketing. By 1993. Cadbury’s Dairy Milk (CDM)-Cadbury’s Milk chocolate until 1986-destroying the very fundamental of generic association that had made million of Indians refer to a bar of a chocolate as a “Cadbury”. Or. Cadbury whipped up a growth solution that involved associating the brand with snacking and functionally. which inevitably go together with high consumption rates in the Western markets. socio-economic groups. created a context of chocolate consumption that was now chocking growth possibilities. For. in a peculiar predicament. both quantitative and qualitative. 1994. but sales inched along. A battery of test. comparing chocolate consumption to a basket of competitive products revealed an unmistakable answer. over decades. people who’d never bought chocolate before. “In mature markets. they had to increase consumption levels”. into the consciousness of adult. The next step: identify the barriers preventing consumers from chocolate as a snack. The Diagnosis Today. has already become a classic of advertising and marketing. The market research revealed the cause of the graying: chocolate wasn’t a snack in India. positioned CDM as a product that elders – typically. but the real buyer lay beyond. using the traditional demographic variables of age. For. Despite low penetration. CDM’s market share at 25%. So. More proof of the chocolate is in the eating: two years into process. parents – bought for children – typically. Just how did the company rejuvenate an old brand to create the marketing megs-hit of the 1990s? It Stand First Among Second coming. which served up chocolate in general.
consumer rejected the idea that chocolate-eating could be equated with mechanical activities like combing one’s hair.But admittedly – enduring values of love and sharing. These elements had been ripped away from the advertising.sharing element. and the block would automatically come up”. purging the emotional element. and reward that Cadbury had labored to associate with the brand. and the craving for instant gratification. Despite their strategic intent. buying it for himself or herself. After all. in the form of a new insight. The second commercial conveyed the same message. but the family context stayed. stimulating desire. while adults were down right angry at the notion of the father depriving his children of chocolate bar. ruling out increased individual consumption. and each casually munching away on chocolates. caution prevented a big break with the past. engrossed. “Parent Are Different From Adults” Even as the ad failed. The children are shocked. however. so it made sense to change one”. children were outraged at the idea of a parent consuming chocolate. The last shot more CDM bars strew around casually. without special occasion or relationship coming into play. with an unwelcome side – effect: adults. The less than – subtle message: eating chocolate’s just an everyday affair. followed by the mother-but. the father has completed the distinctly unpaternal act of devouring the entire bar. had relegated it to being a special – occasion item. since it was these that would support the new structure”. all his cognitive preconception about the product would come to the fore. It was an impulse item. special occasion were meant to be a rare. forcing Cadbury to experiment with a combination of continuity and change. People forbid their children from having chips. After all. but gorge themselves. whether alone or socially. romance. The Prescription The crucial question that Cadbury was confronted with: what strategy should it deploy to . The Tests Despite the Need To Clear The residual memory of CDM’s former association. but they were also actively curtailing child consumption” solution? Forget children as the core consumer.and . “Not only were adults not indulging in chocolates. Universalize the product. or the parent. “Using transactional analysis on response. where upon the produces another bar for them-only to eat that up too. parental affection. It has sans emotion”. “The implication”:“The moment the adult was shown in the context of his role as a parent. which had helped it forge a relationship with customers. gnawing away at a bar of CDM. Finally. The children enter. felt distinctly guilty and embarrassed about eating chocolate. special occasion item. so why shouldn’t it be sold as one? The first of the two commercial focused on functionality. “Cadbury had two pillars. by that time. show the child. It would never. Out went the caring . After all. He’d think about the reasons why. A typical Ad would show parents bringing home chocolate for their child. depicting four member of a family doing their own thing on a Sunday afternoon. Chocolate should be eaten whenever you feel like. Cadbury’s found that adult as parents behave very differently from adults as adults. the mother brings another bar out of her bag. both ads failed on pre – airing tests. into adult behavior. chocolates were about feelings. and Nothing But The Best Will Do – reinforced the notion. The punch line – Sometimes Cadbury’s Can Say It Better Than Words. ruling out increased individual consumption. The process entailed understanding the foundation of the brand. Why for stators. Tap child-ego state within the adult. There had to be magic. The first commercial storyline. the father watches TV. they generated a valuable byproduct. targeting the parents. Just as important. ever. as research showed. love and emotion. spontaneity.
The study disclosed. “What was clear in this case was that likeability would have to include identification and feeling warmth. Cadbury decided to test the commercial being devised by O&M’s creative team not for the tire battery of likeability. without explicitly identifying adults as the target customer. they chose to create a new brand identity. you’re an adult. not what it should be Cadbury’s job was to mould his habits and behavior in a way that would increase consumption for product and brand”. “There was a definite yearning to be free child”. Nowhere did they actually say. who decrees that brand identity should establish a relationship between the brand and the customer by generating value proposition involving functional. Khabi Bhi Kahin Bhi! . Cadbury’s people insisted that the rejuvenate be enriched with compensation – and equally enduring – positive values: universal truths. Because nobody wants to be told”. a distinct shift from collectivism to individualism. borrowing a leaf from marketing guru David Aaker. young girl breaking into a spirit. they decide to simply portray occasion of childlike-but not childish-behavior from adults. the young man tossing a bar of chocolate at his sweet-heart departing in a bus-was created. comprehension.” Thodi Se Pet Puja. But why likeability and comprehension? Simple: the first was meant to be the vehicle on which the daring idea-that adults should enjoy chocolate-would ride into the consumer’s psyche. with the pre – 1990’s sacrosanct values of filial and family love being overshadowed by the manifestation of a larger need for self – expression. credibility and behavior modification – but only for the first two. To translate the brief into the commercial. interlaid. and universal moment of joy. the montage of the child in the man-the old man kicking the football. the consumer was hardly likely to consider the dramatically-different idea credible. “If asked upfront. “Impulse Drives Chocolate Sales” One of the tools Cadbury’s used was Jean – Neal Kapferer’s Brand Prism model to examine whether contemporary value systems offered a peg on which the brand could be judge. or self-expressive benefits. That the consumption had to be liked before it could penetrate the cultural resistance to chocolate consumption by adults was obvious. “They left the connection to be made by the customer” “In the process they were able to get viewer involvement and high levels of empathy. Thus it was that. The Breakthrough Having decided to barter the distinctly use selfish values of sharing and caring for the suspiciously self-centered one of self-expression. Taking a contrition stance. which is where the comprehension had to be tested. the commercial was meant to make him smile at first-and only then realize the import once of the message. “The Ads Had To Be Linkable” “The consumer will always tell what his current belief system is. emotional.rejuvenate CDM in a way that would appeal to the child lurking within the adult? To inject a modern flavor into CDM. In other words. Nor was there much chance of his announcing an immediate change in behavior”. you can eat it. Therein lay the opportunity for both unshackling consumption and creating all-new association for CDM. enduring human values. the pregnant woman carving a chocolate.
Brand usage was perceived to cut across all age groups and accessions. creamy. when ever you feel like it…you do not have to wait for an occasion. poster. The score. “Every feels like this”……. The award winning campaign. The ad shows a girl dancing with jubilation on the cricket field when her hubby hits the winning stroke. The common refrain linking them was the adult in a free child mode – spottiness. The mnemonic of 1 ½ glass reached to consumer through every magazines. 6 runs to win with 1 ball left and India wins the match. Kya Swaad Hai Zindagi Ka! The next ad featured an on going match in the field. The ad created on bringing out the child in the man . designed by O & M was intended to rid the Indian chocolates eater of that guilt complex. smooth chocolate inside the pack that children like.The Real Taste of Life Campaign The very first ad in the campaign in 94 was ‘block – Buster’. evoked a great degree of empathy and identification consumers’ response were those me…… “Feel like that…….”. the pregnant women craving chocolate. It was high on likeability. young girls breaking into a spirit. through not in so many words. The advertisement suggested. Think of a match India batting against Pakistan.” Dairy Milk had successfully enabled the free child in the consumer subsequent adverting used the same communication strategy.. It depicted the essence of one and a half glass of milk pouring in to a boy Dairy Milk unique glass and half in to a chunk icon shows the glass and a half of full cream milk flowing in to the chunk of dairy milk conveying the deliciousness and taste appeal of the gooey. . the young man tossing a bar chocolate at his sweet heart departing into a bus. You could relate the sweetness of success of chocolate. Consumers described dairy milk as “… of all ages” “Eat. The ad was protested among adult’s trough focus groups. The old man kicking the football. that it was ok to be seen including in a chocolate in public. T. The second ad was montage of vignettes from every day lives of young and old which focused on showing a series of emotions. The ad received an overwhelming response. impulsive and carefree.V. newspaper.
with the launch of the new colloquial advertising campaign ‘Khaannein Wallon Khaannein Ka Bahana Chahiya featuring MTV VJ Cyrus Broacha. The fourth in this series was the girl with on her hands.The ad draws attention to the actual eats experience. It came to be recognized as an expression of spontaneity and in pulse. The current estimated penetration level of the chocolate category is 19% in the urban market.’ The new campaign is worth noting as it clearly differ from the earlier one in terms of rectifying the consumer perception about chocolate being an up market impulse – driven product. Cadbury India aimed to ‘substantially’ increase penetration level of the chocolate category in the next few years. but most importantly chocolate is Cadbury. It embraced a wide range emotion all build around them that chocolate means different things to different people at different times. to make chocolate eating a regular habit. The objective behind tne new communication on Cadbury Dairy Milk is to make the chocolate category more socially and culturally relevant and drive penetration in the process. The attempt now is to change the image. The new campaign has been launched in tandem with the old one Winning ‘Kuch Khass Hai’ campaign and the media strategy is to let the two co – exist towards a common vision “providing a Cadbury in every pocket”. The campaign succeeded in softening attitude towards chocolate and lifting then out of the ream of kiddies / special occasion only. The New Campaign And finally. Khabi Bhi. Kahin Bhi! . The ad focused on showing how the girl relishes the Dairy Milk when she has mehandi on her hands. Dairy Milk transformed in to a young full brand full of zest. Post campaign saw a great turn around. The idea behind this advertisement was to show the nature of chocolate as an impulse – driven product. Thodi Se Pet Puja.
Company added 8 million new consumers and saw its outlets grow to 4. while other did not quite take off. chocolate are now being positioned near meal substitutes. Candico.Chocolate Market Share The Indian chocolate market is getting bigger and better. Leading national players are nutrine. Nutties. is between Cadbury and Nestle. The company attempted expanding its confectionary product portfolio. Fruit & Nut. The market itself has become broader based. though. The company is pushing the gifting segment. Net profit rose sharply by 41. Though with a much smaller portfolio. Pary’s Ravalgoan. Cadbury account for about 70% followed by Nestle. in the sense adults are an important target segment now. Malted food drinks category consists of white drink and brown drink.000 tonne chocolate market worth about Rs. GCMMF nitramul and other Smith Kline brand Boost. Crackle. Éclairs. through occasion linked gifts. Maltova and Viva Cadbury bold 14% market share in food drinks segment.8% to Rs. Gems. the MNCs such as Joyco and Perfetti have aggressively expanded their presence in the country in the last few years. thanks to the initiative taken by the Cadbury India during early nineties. with launch of sugar based confectionary goodly and fruits. Some of the strategic clicked. Cadbury’s Bourn Vita is leader in the brown drink coca based segment in the white drink segment Smith Kline’s Horlicks in the Nestle Milo . without much success. This was achieved through innovative marketing strategies and focused advertising campaign flagship brand Dairy Milk. Cadbury has 4% of the market share in this segment. The reposting of Cadbury’s Dairy Milk in 1994 as the ‘real taste of life (through the Slice of Life and Cricket commercial by Ogilvy and Mather) grew the entire milk chocolate by 20%. companies like Cadbury India are launching indigenous product made to international standards. In the food segment. it facilitated the repositioning of Cadbury’s sub brands in the basket. Chocolates contribute to 64% of Cadbury’s turnover. the premium segment (composing imported varieties) is opening up on the other. Joyoco India and Perfetti. From a treat for kids. Butterscotch & Tiffns – a new lease of life. Despite tough market condition and increased competition Cadbury managed to record a double digit (11%) top line growth in 2000.000 for market south and east are large market for drinks. White drinks accounts for almost two third market of the 82. In other words. Confectionary sales accounting for 12% of turnover is contributed largely by Éclairs. with a share of around 20%. accounting for largest proportion of all India’s sale. Cadbury also has a strong brand bornvita in the malted health drink category which account for 24% of turnover. Reduced material and energy cost and tighter control over working capital over working capital and capital expenditure enabled the company to improve the profitability. The company achieved a volume growth of 5.5 lakhs and consumer to 60 million. Amul has about 5% of the market. There exists an even larger unorganized market in the confectionary segment. Britannia is the leader brand with 21% among those who expressed an opinion saying that they like advertising for the . While on one hand. with minor player taking the rest. Of the 20. and gave the Cadbury’s range – 5 Star. The battle. Nestle is putting up a tough fight. 520 million. Parle. 400 crore.2%.
Cadbury’s Temptation Cadbury’s Health Drink Cadbury’s Creamy Bar Fruit & Nut New Launch .brand Cadbury was clearly No. Sports are clear winners. Khane Walo Lo Ko Khane Ka Bhanna and the Karwa Cauth. Parle and south based Arun Le Gram with 5% each. Tied for the brand place are Amul.2 with 18% to which CDM throw in its weight with 13% and perk with 4%. For the Chocolate Company. Disappointment among bid brands Kissan and Maggi and Kwality Walls (1%) each.
the share of chocolate in 6. higher local consumption by entering long term contract with farmer and undertaking efforts in expanding local coca area development. The company is today the second best manufacturing location of Cadbury’s Schweppes in the world. Various measures are undertaken in all areas of operation to create value for the future. The kinds formally associate with Cadbury chocolate offering. • The above are some steps being taken internally to improve future operation and profitability. 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’. 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. Lindit and Hersheys. In terms of manufacturing management focus is on optimizing manufacturing efficiencies and creating a world class manufacturing location for CDM and Éclairs.6% and Cadbury’s share in the impulse segment is 4. Future Strategy In the branded impulse market. lower barrier to trade and the advent of all global players in to the country. • Use of it to improve logistic and distribution competitiveness • Utilizing mass media to create and maintain brands.8% factor like changing attitude. • Expand the consumer base.It is a product that talks directly to the target consumer.It is aimed at the niche “international chocolate “ segment of the chocolate market a segment upgraded from brands such as Cadbury’s to premium international offering such as Tolerance. 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. 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. The product benefits have been defined as “The goodness of milk to the fun of chocolate”. it combines both good health. • Improving distribution quality by addressing issues of product stability by installation of visi coolers at several outlets. priced Rs. multinutrition value of milk along with the pinch of fun and excitement. Temptation :. This would be really effective in maintaining consumption in summer. Roughly 5%of the total domestic consumption expected to grow to some 10%. Temptation is an attempt to lug niche. 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. 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. the company has been able to increase the width of its consumer base through launch of low priced products.e. It is of the view that size of this imported premium market is small to threaten its own volumes . 30. higher disposable income. coca through forward purchase of imports. The management is not unduly concerned about the huge deluge of imported chocolate brands in the market place. Efficient sourcing of key raw material i. This segment is too good to miss out on. a large youth population. ThePreviousCadbury’s range available in India did not offer consumer an option to upgrade to international chocolate within the Cadbury’s fold. when sales usually dip due to the fact that the heat effects product quality and thereby consumption.Cadbury target kids with Milk Treat: .
where it could optimally use the global Cadbury Schweppes portfolio. which limit the opportunity to launch value for money products. the company looks at the tree important as an opportunity.or sales in fact. 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. Changing Product Mix Contributing to turnover 1994 Contributing to turnover 2000 Chocolate 59% 64% Sugar Confectionary 9% 12% Food Drink 32% 24% Current Market Share Chocolate 69.0% Food Drink 14.2% Sugar Confectionary 4.2% Expanding Distribution Reach 2001 + Distribution 450000 Retail Outlet 60 Million Consumers CHAPTER-8 CADBURY SUCCESS STORY .
the promotional back up and the right employees. with 40 chocolate confectionary brands. the right partners. The right product. and not consumers of chocolates. By1969.to create the highest quality chocolate. These are the ingredients in Cadbury’s latest recipes for success. Schweppes. Right from the stand Cadbury Dairy Milk Chocolate success has been based on these factors:Quality¬ Value for money¬ Advertising¬ Case Study Prior to deciding on the communication strategy for Cadbury Dairy Milk it was important to understand the habits and mindset towards chocolates. However. the right marketing. they exercised a strong influence on the children’s consumption behavior. John Cadbury founded U. it came as no surprise that chocolate were perceived as “kiddy” product and certainly not part of the repertoire for products consumed socially. Cadbury dominated markets as far as the U. The secret of Cadbury’s success What is the secret of Cadbury’s continuing success first there’s the careful selection of the finest coca beans from West Africa. company with one aim: . Chocolates seemed to offer virtually no significant positive and certainly no overt psychogenic .K. as for most children’s product. The research revealed that: Adults were primarily purchasers.K.The Cadbury Story Cadbury’s success story In 1984. Today Cadbury’s production are enjoyed in 120 countries. and Australia that’s why Cadbury have been dubbed “The world’s master chocolate makers”. when Cadbury merged with the soft drink giant. Considering the advertising history. Cadbury brands were already famous all around world. Finally there’s skillful marketing Cadbury always takes extreme care in selecting and marketing the right range of product in every cause. A large scale usage and attitude study was conducted among adults. Chocolate consumption among adults evoked feeling of self indulgence and guilt. as well as tasty hazel nuts from Turkey and the fine sheet and choicest natural ingredient available to us anywhere. Adults acted as gatekeepers of sorts when it came to food items.
hitherto. being responsible for obesity. And. this could translate into top line growth of 14 –15%. had always addressed adults as purchasers rather than consumers. Nutties Roast Almond Picnic The Outlook The Cadbury management has cut down on its growth target by setting a 10% average volume target for next 3 years (as against previous growth) coupled with price increases. Food and nutritive values associated with chocolates were low. The only variation was in the Rituals. For an impulse product category such as chocolates. And.benefits. enjoyment and good times. bribing and reward to gifting. Purchase was almost always planned and triggered by motives ranging from celebration. For low involvement product categories like chocolates which offer emotional and sensory benefits. in fact they were categorized as a hazard. The biggest opportunity is likely to stem from increasing the consumer base. where communication had shifted from. The radical change however was focus on bringing out the spontaneity in adults. thus imposing boundaries for the growth of the market. dental and respiratory problems. it is suggested that communication is most effective with repeated likeable ads promising unique and authentic emotional benefit a shift from portraying everyday moments as an opposed to special ones. finally CDM a symbol of manipulation was henceforth to symbolize fun. Communication had positioned chocolates for specific situations. This target also appears difficult to achieve given the consumer slowdown and the fact that company is dependent on a single category chocolates to . Emphasis on casual everyday situation could help promote core consumption opportunities. There was evidence to suggest the need for shifting focus from child as chocolates consumers to adult’s communication. repositioned chocolates from children to adult consumption. Brands images were undifferentiated and the category had low saliency. and special occasion to every moment. The mnemonic of a glass and half milk was to reinforce the goodness of milk and cue physiological benefits. A strong volume growth was witnessed in the early 90’s when Cadbury. “can do without”. this was likely to limit market growth. This conditioning and social learning about chocolates was restricting consumption among adults as well as driving them to restrict children’s consumption.
And it is going to be shared with other brands too in future.drive growth. While new launched such as milk chocolate and Perk slims have been doing well. the company has ruled out a real big chocolates launch in the current year. Few Concerns Which Come To Mind With a market share of 70% in the chocolate category and with the free availability of international brands that you see in the market today. Perk claims which have supported growth in the past. And it is too early yet to comment on the long term response to the new launch temptations. low cost packs to bigger higher priced ones. While there would be new chocolates launch towards the end of the year. They say chocolates are mostly am impulse purchase. There is additional challenge of Cadbury’s brand just aiming market share when the consumer has a wide portfolio of brand to choose from. the management expects that dairy milk would continue to be the central driving force in Cadbury’s growth and that all other brands would remain peripheral to this central brand. And whatever be the anomalies of taxation or low. the consumer is surely going to have a wider choice. The growth trend of the brands therefore clearly indicates that the only brand that has grown is the one that has received tremendous marketing and advertising support Dairy Milk withdraw support for any brand and growth loses momentum. In such scenario. The management has declared its intention to focus only on Éclairs (which forms a major position of its 4% share in the confectionary segment) for the time being in this category. Therefore consumer would prefer smaller. In chocolates too ones remain on the 2-3 key brands as CDM. Effect in expanding confection any portfolio have also not yielded desired results. for how long and how many brands can the company continuously support? POSITION OF THE VARIOUS BRANDS IN THE MARKET HAS BEEN LISTED BELOW Cadburys brands Positioning Nestle’s brands Positioning Cadbury Dairy Milk Fruit n Nut Creamy bar Roast Almond Crackle Bournvita “The Real Taste of Life” Position as adults as an impulse any time purchase – self expression values attached Classic Milk Chocolate . but it certainly won’t be easy in liberalized environment of free imports. it is only natural that Cadbury’s market share will move down from here marinating a 70% market share in a closed environment may have been easy.
any time snack. Do you eat chocolates? 2.Bar One Positioned as an affordable enriched milk chocolate Positioned as Trendy. Which brand of chocolates do you use? . Have a Kit Kat” CHAPTER-9 DATA ANALYSIS FINDINGS AND SURVEY 1. KitKat Positioned as a snacking consumption “Have a Break. Cool. 5 Star / Perk/Break Perk – Positioned as Snacking consumption “Thodi si Pet Pooja” 5 Star Energy bar Reach for the Stars.
Are you aware of any campaign of the above brands? 5. Which cadbury’s product do you usually prefer or use? 6. Where do you buy chocolates from? 4. Do you think Cadbury’s chocolate is easily available in market ? .3.
• Achieve the goal of best manufacturing location in Cadbury Schweppes world for Dairy Milk and Éclairs. • New channels such as gifting. over the next years.CHAPTER-10 RECOMMENDATIONS RECOMMENDATIONS • Maintain dominance in chocolate.a. . child connectivity and value for money offering to be the key growth drives. • One new major product launch every year. confectionery and market leadership in brown drinks. CONCLUSION This company project has demonstrated “CADBURY’S MARKETING AND COMPETITIVE STRATEGIES” that has proved to be extensive through. • Grow volume of sales at least 20% p. In this project it possible to see the success of Cadbury’s in its indorse its strong potential to continue to do well. and of great benefit to the company in furthering its competitive advantage.
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