Chocolate market: The size of the chocolate market in India is about 4,000 tonnes and is valued at Rupees 6500 million (US$ 130 million). Cadbury India has the biggest market share at 70 per cent while Nestle is the second largest at 20 per cent. 1 Cadbury’s reaches 0.6 million retail outlets. Recently there was a crisis that Cadbury’s had had to resolve when it was reported that worms were found in a few of the Cadbury’s chocolates. Since then the company has invested in upgrading packaging facilities and in making sure that the product’s quality and integrity is maintained. Given that not all retailers have cold storage facilities, the firm has to continue to try and educate channel members regarding proper storage facilities.

CADBURY(the marketing strategies of Cadbury India Ltd.)

The satisfaction and euphoria that accompany the successful completion of any task is incomplete without the mention of people who made it possible. So I take this as a great opportunity to pen down a few lines about the people to whom my acknowledgement is due. It is with the deepest sense of gratitude that I wish to place on record my sincere thanks …………………………………………………., my project guide for providing me inspiration, encouragement, guidance, help and valuable suggestions throughout the project. I would also like to thank all my respondent for giving me their valuable time and information.



Acknowledgement Page No. 1 Part I Chapter 1 Abstract Page No. 2 Chapter 2 Introduction Page No. 6 Chapter 3 Agency Profile Page No. 19 Part II Chapter 4 Research Design Page No. 29 Chapter 5 Servicing Analysis & Interpretation Page No. 34 Chapter 6 Data Analysis Page No. 68 Chapter 7 Finding, Conclusion & Suggestion Page No. 81 Part III Chapter 8 Appendices & Annexure Page No. 86 Chapter 9 Bibliography Page No. 89


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. Moreover, 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. 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.

I have tried to put my maximum effort to get the accurate statistical data. If there is any error or any mistake in collecting the data, please correct it in the best way as I am still learning.


Introduction The Cadbury‟s Inc has taken the opportunity to offer us a broader view of chocolate category. The Cadbury India‟s no.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, one of the most efficient in the world. The merge in 1969 with Schweppes and the subsequent development of the business have led to Cadbury Schweppes taking the

CHAPTER-2 OBJECTIVE OBJECTIVE OF THE PROJECT My main objective of the study on this project is to demonstrate the marketing strategies of Cadbury India Ltd.led in both. the confectionary and soft drink market intech UK and becoming a major force in the international market. most loved chocolate brand in the world. 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. I have done few analyses:(a) SWOT Analysis (b) PEST Analysis And also 5 P‟s of Marketing:• Product • Price • Physical Distribution . And to arrive at my findings. Cadbury Schweppes today manufactures product in 60 countries and a trade in staggering 120.

# To these geographical area questionnaire was given. as one continuously observes the surrounding environment he works in. 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. the questionnaire method. Sources of secondary . Procedure of research methodology # Target geographic area was Delhi. 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. observation method has been continuous with the questionnaire method. Primary data was collected using the following techniques Questionnaire Method Observation Method The main tool used was. # Finally the collected data and information was analyzed and compiled to arrive at data the conclusion and recommendations given.• Promotion • Positioning CHAPTER-3 RESERCH METHODOLOGY RESEARCH METHODOLOGY Achieving accuracy in any research requires in depth study regarding the subject. Secondary data has been used to support primary data wherever needed. NCR and Aligarh.

Richard. 1861 – John Cadbury resigned his business and handed over to his sons. Fortunately for generation of chocolate lovers. policies. 1866 – Saw a turning point for the company with the introduction of a process for pressing the cocoa butter from the coca beans. A larger factory in Bridge Street Birmingham was rented in 1847. therefore best‟. This was the start of Cadbury manufacturing business as it is known today. Cadbury and its competitor history. John Cadbury was joined by his brother Birmingham and the business became Cadbury Brother of Birmingham. 25 and George. procedures etc. in Bull street Birmingham was to be the foundation of Cadbury Limited. John Cadbury. wherever required. now one of the world‟s largest producer of chocolate. This not only enabled Cadbury Brothers to produce pure coca essence. The essence was advertised as „Absolutely pure. # Internet # Magazines # Newspapers CHAPTER-4 ABOUT CADBURY THE LEGEND CALLED CADBURY 1824 – A business was opened in 1824 by a young Quaker. but the plentiful supply of coca butter remaining was also used to make new kind of eating chocolate.Used to obtain information on . current issues. . they didn‟t. 1831 – By this year the business had changed from a grocery shop and John Cadbury had become a manufacturer of drinking chocolate and cocoa. 21 who after 5 difficult years almost shut down the business to take up other vocation.

1899 – In this year the business private limited company – Cadbury Brothers Limited progress since the start of the century. Chocolate has moved being a “luxury” item to well within the financial reach of everyone. today Britain‟s favorite moduled chocolate bar. employing the most advanced processing technology and management information and control techniques. cocoa butter and sugar. moving in 1879 to a „Greenfield‟ site some miles from the center of Birmingham which came to call Bourneville. 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. Cadbury today is the market leader in the U. .K chocolate confectionary market.wide Cadbury is one of the pre – eminent names in confectionary with impressive range of famous brands. 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. so characteristics of Cadbury‟s chocolate. 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. The company is the confectionary division of Cadbury Schweppes plc which is major force in the confectionary and soft drinks international market.1879 – Business prospered from this time and Cadbury Brother outgrew the Bridge Street factory. 1905 – Cadbury has many famous brands with one of major success story being Cadbury‟s Dairy Milk chocolate launched in 1905. 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.World . smoothness and snap.

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. Three names were considered Jersey. The half pound deep – lidded box with the traditional purple background and gold script was introduced in 1916. who were renowned for their milk chocolate. 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.At that time there was a great deal of competition in the U. Good chocolatiers is an art form depending on recipe traditions. While advertising and label design have changed with fashion and considerable strides have been made in manufacturing technologies. 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. Today more than 250 million bars of Cadbury‟s Dairy Milk are made every year and sales reach over 100 million Pound in value. which have grown over the years. Highland Milk and Dairy Maid. the Bourneville experts set out to meet the challenge. The name „tray‟ derived from the way in which the original assortment was delivered to the shops. Led by George Cadbury junior. not only the French with their fancy chocolates but also from the Swiss. arranged on trays from which it was sold loose to customers. Cadbury‟s Dairy Milk Story Chocolate has been enjoyed by successive generation since the manufacturing process was developed in the Victorian Times. 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. a position that it has held ever since. 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. not just special . without frills presentation Milk Tray was the assortment for everyday. By today‟s standards the first chocolate for eating would have been considered quite unpalatable. followed by one pound box in 1924.K from continental manufactures. 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. A considerable amount of time and money was spent on research and new plant design to produce the new chocolate in much large quantities. With its stylish. Originally Milk Tray was packed in five and as half pound boxes. Four years of hard work were invested in the project and in 1905 what was to be Cadbury‟s top selling brand was launched. 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.

It has a policy for FOBOs (Franchise owned bottling operations ) unlike Coke and Pepsi which prefer COBO.s (Company owned bottling operations). The first brand was launched was Crush which was later followed by Canada Dry. The other aspects like machinery. Schweppes Tonic Water. bottling line. Its Hundred Percent subsidiary in India named Cadbury Schweppes Beverage India (private) Limited (CSBIL) started operation in March 1995. Cadbury Schweppes Cadbury Schweppes plc. Schweppes Bitter Lemon. CSBIL with its franchise agreement with 19 bottling plants throughout India proposes to be a household name. As its CEO Mr.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. land and distribution is the responsibility of the bottler. 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. PRODUCT PROFILE . Ashok Jain says. they are the hardware”. The pack design has been regularly updated and the assortment itself has changed in line with consumers taste and preferences. a global beverage and confectionary giant with annual sale of Rs 20.occasion and it represented the best buy in the chocolate for millions of people. In FOBO the beverages company only supplies the concentrate and the marketing support to build brand equity. “we are the software.000 crores .

2. .CHAPTER-5 SWOT AND PEST ANALYSIS OF CADBURY SWOT ANALYSIS Strength 1. 450. Due to its 54 years presence in India – has deep penetration – 2100 distributors. Very strong brand equity in India.000 retailers.

Conclusion:Will lose market share with globalization but will remain brand leader. Naushans. 7. Opportunities 1. Confec (4%). Tremendous scope for per capita consumption (160 gms of 8 – 10 kg) 2. Growing middle class and growing urban population. etc…). Weakness 1. Threats a) Major :Due to low cost and highest brand equity. 6. Increasing gifts cultures. Three sectors. Increasing departmental stores concept – impulse @ at cash counters. Better market penetration. Second best manufacturing location throughout Cadbury Schweppes. 4. That means higher profits. 5. Low cost of production due to economic of scale. b) Minor :Globalization will bring in better brands for upper end of the market (Liest. Ltd. Poor technology in India compared to current international technologies (Godiva.leader in brown segment). etc. 3. 5. 3.60 mid urban (22%) customers.. Dint. Monarch. Godiva. it is success in India. Chocs (70% share). Increasing per capita national income resulting in higher disposable income. 3. Mozart. Key products. Pest Analysis .. “Make in India” tag once the economy opens up wore and imports rush in. 4.) 2. food drinks (14% . Pralines range totally wising in India. Substitute to “Mithais” with higher calories/cholesterol. only one central brand (CDM). Fazer. Globalization: optimal use of global Cadbury Schweppes.

2) Increasing gifts culture – increase in demand .PRODUCT The average company will compete for customer by conforming to his expectation consistently. delivering to his door step additional benefits which he would never have imagined . CHAPTER-6 AN INSIGHT ON 5 P‟S OF MARKETING (CADBURY) 5 P‟S Of Marketing 1 . S: 1) Per capita consumption expected to increase – fashion. Cadbury‟s offer such product. The wide variety products offered by the company include: I. But the winner will surpass them by constantly exceeding his expectation. no political effects are envisaged. 2) Growing middle class/urban population – increase in demand. Chocolate & Confectionary . 3) Lower cholesterol than “mithais” (sweet meat) subsbstitute demand.P: Since the budget range is decontrolled. E: 1) Increasing per capita income resulting in higher disposable income. T: Will have to reinforce technology to international levels once India is a “free” economy. 3) Low cost of production – better penetration.

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. Beverages III. 18 Bournvita (500 gm) Rs. 10 5 Star Rs. 15 Perk Rs. Food Drinks 1) Bourn vita 2) Drinking chocolate 3) Cocoa 2 .Pricing Make no mistake.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. Therefore maximizing the returns involves identifying right price level for each segment. Dairy Milk Rs. 10 Friut and Nut Rs. Second P of marketing is not another name for blindly lowering prices and relying on this strategy alone to increase sales dramatically. So every customer segment has different price expectation from the product. and then progressively moving through them. 10 Break Rs. 22 Gems Rs. 50 . Cadbury‟s has launched various products which cater to all customer segments. 104 Drinking chocolate Rs.

swamp prime television with best Ads. Beside use of TI to improves logistics. the prospective customers can have access to the product. This network of distribution can either contact wholesalers and which in turn retailers or the distributors can contact to the retailers directly. The cardinal task before the Indian market in managing is to shoe-horn its product on retail shelves. language. Buyers are paying for distribution equity not brand equity and market shares. transport and communication network. 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. Cadbury‟s distributes the product in the manner stated above.3 . hire the hottest strategies on the block. Looking at the low penetration of the chocolate. India – 1 billion people. 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. km. Cadbury‟s . The other reason is arch rival Nestle reaches more than a million retailers. but once built. This increase in distribution is going to be accompanied by reduction in channel costs. Cadbury is also attempting to improve the distribution quality. And your brand equity isn‟t going to help when it comes to tackling these issues.Physical Distribution – “Place” Distribution Equity:It takes much more time and effort to build. a distribution expansion would itself being incremental volume. but the end of it all.000 retailers. you should know how to sell your products. it has installed visi colors at several outlets. To address the issue of product stability. 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. But getting their means managing wildly different terrains-climate. Once the stock product reaches retailers.28 million sq. 155 million household has over 4 million retail outlets in 5351 urban markets and 552725 villages. value system. Own distribution network consist of clearing and forwarding (C&F) agents & distribution stockiest. life style. Cadbury‟s distribution network has expanded from 1990 distributors last year to 2100 distributors and 4. and the marketer who can get to the to the consumer ahead of competition will give a hard – to – overtake lead. television has already primed and population for consumption. spread cross 3. the brand that sells more is the one that reaches the highest number of customers. In a product and price parity situation.50.

Naturally. just in time of Diwali gifting market. communication must first ensure exposure. 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.e. ad agency contract has created communication for cinemas and even ATM machines for the brand. which has faced problems with its taste.www. 4 . Thereafter it was the job of the advertising to communicate customer the wonderful feeling that he could experience by re-discoursing the careful. The company is looking to reduce this parity level.Promotion Effective advertising is rarely hectoring or loudly explicit…. Ad since any discussion today would be incomplete without mention „e‟ word. unselfish conscious. that produced just the value vacuum that Cadbury was looking to fill. In cinemas. As well as outdoor and radio ads. they believe that selling confectionery is it like selling soft drinks. All ICICI‟s ATM a message flashes on the screen as soon as customer inserts his ATM card. because of the peanut it contains. at 18% of total costs. Cadbury has a message on-screen just before the lights are dimmed to give them a chance to get their temptations. is much higher than Nestlé‟s 12% or even pure sugar confectionery major Parry‟s 11%. To penetrate into the inner recesses of customer memory.wwww. a successful campaign has a stronger element of the unexpected a quality that good advertising shares with much worthwhile literature.com) that the company has .marketing costs.www. Éclairs has got potential for much wide distribution.cadburyindia. Something familiar is planned for phone-book as well. More often than not. There will also be after dinner sampling in restaurants – to begin with. 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. 30 catteries in Mumbai have been selected. grab his attention evoke his comprehension. hostels. the management plans to tap this new channel of marketing. The next round of activity will include the wafer-chocolate Perk and the Picnic bar. Beside three company website(i.cadburygift. in a small sweets that airlines.com. Milk treat has also been launched in a module bar form. It tells the customer that this would be good time to get out of his temptation since he/she is bound to be alone. Finding showed that the adults felt too conscious to be seen consuming a product actually meant for children. grab his acceptance and then extract retention competing with thousands of other units of communication trying to do the same. It often both attracts and generates arm feelings. At Cadbury. 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.com. The strategic response addresses the emotional appeal of the band to the child within the adult.bourvita.

In June 1994. itself defines the positioning of the product. and the winner will be that super value marketers…. and luxury goods flourished. supported with high ad – spends that Cadbury hopes will see it emerges stronger after the current slowdown. 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. Symbolizing togetherness. taste and appetite appeal. 5 star was positioned on an emotional platform in India during the late 1980s. It‟s a combination of spiffing up its key brand. the company reworked the strategy for 5 star to make it a source of energy. 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. In . today customer uses complicated decision making process to assess the alternative before making a purchase.launched. Since Cadbury‟s is more clearly associated with a particular set of attributes in terms of benefits and prices. „Real taste of Life‟. As a variety of competitive claims assails her senses. researching and improving the newer products that haven‟t taken off. 5 . Today‟s consumer demanding “more for less”. It has goodness of milk. the quicker becomes her search process. In the 1980s. consumers began to demand “more for same”. The chocolate is meant for all age groups. Positioning of individual product: 1) CMD: is and always remain flagship brand. it had also entered into various marketing relationship with other portals. as well as expand the market. 5 star was originally targeted at teenagers. good items.Positioning In the 1970s consumers were ready to pay “more for more”. etc…. It symbolizes fun. The punch by the company for advertising this product life. 2) 5 star: although positioned internationally as an energy bar. specially targeted during festivals and events such as Valentines day . enjoyment. and the discounting era grew strong.

“Gems are the best brand to speak to children. 1995. before the launch of Perk. Perk into the market. 4) Gems: broadcasting Gems. Cadbury decided to sell it to teenagers with the „Smart Very Smart‟ campaign. Positioned much further on the functional scale of 5 star. Bournvita combined the nutritious value with taste.fact. the company is retargeting children with its animated commercial. though. Colorful chocolate buttons appeal most to children and that is why Cadbury is re-targeting children. Targeted at children under 12 years with „Gems Bond‟ advertising. 5 star‟s energy bar positioning made it a snacking chocolate. 3) Éclairs: competing in the chewable toffees segment. Dairy Milk Éclairs. 6) Perk: in September. While its competitors concentrated only on health aspect. didn‟t prove to be feasible proposition for Cadbury. Cadbury preempted the launch of Nestlé‟s Kit-Kat by rushing a new brand. CHAPTER-7 MARKET SEGMENT AND MARKETING STRATEGIES OF CADBURY . Éclairs was re-launched during the mid-nineties with a new name. 7) Bournvita: positioned as tasty health drink.” 5) Crackle: it was the first Cadbury‟s chocolate to have crunch in it. But now. Perk was meant to be light snack-product for subduing the first pangs of hunger. It was targeted as a funky chocolate to add spark to life.

Cadbury‟s Market Segment Market place for any product is comprised of many different segments of consumers.  Cadbury takes into account all these factors when producing a range of products.e. but the real buyer lay beyond. It focused firmly on its target segment.g. gender. material states income etc…)  The lifestyle of consumers (i. their interests and activities) the benefits which consumers look for in a product or on the occasions when the product might be consumed. eating these and then. It targets different segments within the market.  Impulse segment – these products are often purchase on impulse. but sales inched along. for example Cadbury‟s Perk and snack range.  Break segment – products which are normally consume as a snatched break and often with tea and coffee. Markets segmentation can be defined in a number of ways such as:  Demographic variables (e. For seven long years. Consumers age groups. And it wasn‟t so much a re-launch as it was a process of .  Take home segment – this describes product that are normally purchased in supermarkets. The Real Taste of Rejuvenation (transformation) It was the market – leader. Just how did the company rejuvenate an old brand to create the marketing megs-hit of the 1990s? It Stand First Among Second coming. Cadbury‟s Dairy Milk chocolate suffered stagnancy even as other consumer products boomed. taken home consumed at a later stage. They include product such as Cadbury‟s Dairy Milk. such as the. each with different needs and wants.

The obvious solution. “Cadbury‟s Was Caught In Its Own Trap” How? The company had. For. But admittedly – enduring values of love and sharing.rejuvenation. More proof of the chocolate is in the eating: two years into process. people who‟d never bought chocolate before. and reward that Cadbury had labored to associate with the brand. in a peculiar predicament. positioned CDM as a product that elders – typically. The next step: identify the barriers preventing consumers from chocolate as a snack. the Rs. Cadbury had. After all. parental affection. and lack of excitement. 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”. Over a period of 12 months. For. both quantitative and qualitative. In fact. . it systematically dismantled the franchise that the company had built over 30 years of its flagship brand. socio-economic groups. CDM‟s market share at 25%. they had to increase consumption levels”. 1994. So. starting February. both the brand and the category were displaying symptoms of age: faltering growth. into the consciousness of adult. which inevitably go together with high consumption rates in the Western markets. The Real Taste of Life campaign. trying to win away customers from competitors in this stagnant market wouldn‟t help. The Diagnosis Today. which served up chocolate in general. “The baggage of the past was so overpowering that people didn‟t get influenced by minor shifts in the message”. parents – bought for children – typically. had relegated it to being a special – occasion item. which had helped it forge a relationship with customers. “In mature markets. Cadbury was desperately seeking growth for the brand… “With a market share of 70%. 314 crore confectionery makers Cadbury embarked on the most outrageous repositioning exercise in the recent history of Indian marketing. the behavioral and attitudinal patterns conveyed by the communication to build the brand were proving restrictive. created a context of chocolate consumption that was now chocking growth possibilities. ruling out increased individual consumption. and CDM in particular. high recognition. comparing chocolate consumption to a basket of competitive products revealed an unmistakable answer. Despite low penetration. has already become a classic of advertising and marketing. and usage intensity. They had to find new customers. using the traditional demographic variables of age. A battery of test. their own. Cadbury whipped up a growth solution that involved associating the brand with snacking and functionally. chocolate straddle a continuum. The market research revealed the cause of the graying: chocolate wasn‟t a snack in India. over decades. from boutique product – packaged raw indulgence – to a casual food”. By 1993. Or. with sale rising by an average 40% per annum.

ruling out increased individual consumption. ever. Cadbury‟s found that adult as parents behave very differently from adults as adults. Universalize the product. forcing Cadbury to experiment with a combination of continuity and change. and each casually munching away on chocolates. Why for stators. caution prevented a big break with the past. Out went the caring . It was an impulse item. while adults were down right angry at the notion of the father depriving his children of chocolate bar. whether alone or socially. love and emotion. by that time. however. targeting the parents. consumer rejected the idea that chocolate-eating could be equated with mechanical activities like combing one‟s hair. Just as important.and . the father watches TV. both ads failed on pre – airing tests. People forbid their children from having chips. The children enter. The punch line – Sometimes Cadbury‟s Can Say It Better Than Words. Chocolate should be eaten whenever you feel like. The children are shocked. depicting four member of a family doing their own thing on a Sunday afternoon. “Parent Are Different From Adults” Even as the ad failed.special occasion item. but they were also actively curtailing child consumption” solution? Forget children as the core consumer. so why shouldn‟t it be sold as one? The first of the two commercial focused on functionality. and Nothing But The Best Will Do – reinforced the notion. The Tests Despite the Need To Clear The residual memory of CDM‟s former association. The first commercial storyline. followed by the mother-but. chocolates were about feelings. The second commercial conveyed the same message. or the parent. felt distinctly guilty and embarrassed about eating chocolate. It has sans emotion”. “Not only were adults not indulging in chocolates. It would never. The process entailed understanding the foundation of the brand.sharing element. buying it for himself or herself. with an unwelcome side – effect: adults. A typical Ad would show parents bringing home chocolate for their child. special occasion were meant to be a rare. in the form of a new insight. so it made sense to change one”. the mother brings another bar out of her bag. After all. as research showed. There had to be magic. engrossed. The less than – subtle message: eating chocolate‟s just an everyday affair. Despite their strategic intent. the father has completed the distinctly unpaternal act of devouring the entire bar. The last shot more CDM bars strew around casually. but the family context stayed. since it was these that would support the new structure”. “Cadbury had two pillars. children were outraged at the idea of a parent consuming chocolate. but gorge . romance. Finally. where upon the produces another bar for them-only to eat that up too. into adult behavior. After all. purging the emotional element. “Using transactional analysis on response. without special occasion or relationship coming into play. they generated a valuable byproduct. These elements had been ripped away from the advertising. gnawing away at a bar of CDM. show the child.

and the craving for instant gratification. the montage of the child in the man-the old man kicking the football. without explicitly identifying adults as the target customer. “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. you can eat it. who decrees that brand identity should establish a relationship between the brand and the customer by generating value proposition involving functional. and universal moment of joy. He‟d think about the reasons why. all his cognitive preconception about the product would come to the fore. they decide to simply portray occasion of childlike-but not childish-behavior from adults. young girl breaking into a spirit. stimulating desire. “There was a definite yearning to be free child”. the pregnant woman carving a chocolate.themselves. Thus it was that. Because nobody wants to be told”. Tap child-ego state within the adult. enduring human values. the young man tossing a bar of chocolate at his sweet-heart departing in a bus-was created. or self-expressive benefits. a distinct shift from collectivism to individualism. Cadbury‟s people insisted that the rejuvenate be enriched with compensation – and equally enduring – positive values: universal truths. That the consumption had to be liked before it could penetrate the cultural resistance to chocolate . “The Ads Had To Be Linkable” “The consumer will always tell what his current belief system is. Nowhere did they actually say. with the pre – 1990‟s sacrosanct values of filial and family love being overshadowed by the manifestation of a larger need for self – expression. “The implication”:“The moment the adult was shown in the context of his role as a parent. interlaid. The Breakthrough Having decided to barter the distinctly use selfish values of sharing and caring for the suspiciously selfcentered one of self-expression. emotional. 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”. To translate the brief into the commercial. borrowing a leaf from marketing guru David Aaker. and the block would automatically come up”. The study disclosed. spontaneity. they chose to create a new brand identity. The Prescription The crucial question that Cadbury was confronted with: what strategy should it deploy to rejuvenate CDM in a way that would appeal to the child lurking within the adult? To inject a modern flavor into CDM. you‟re an adult. Therein lay the opportunity for both unshackling consumption and creating all-new association for CDM. “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.

creamy. young girls breaking into a spirit. 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. T. poster. Brand usage was perceived to cut across all age groups and accessions.consumption by adults was obvious. impulsive and carefree. the pregnant women craving chocolate. The ad received an overwhelming response. the consumer was hardly likely to consider the dramatically-different idea credible.” Thodi Se Pet Puja. Taking a contrition stance. newspaper. the young man tossing a bar chocolate at his sweet heart departing into a bus. It was high on likeability.. The second ad was montage of vignettes from every day lives of young and old which focused on showing a series of emotions. Consumers described dairy milk as “… of all ages” “Eat. smooth chocolate inside the pack that children like.”. credibility and behavior modification – but only for the first two. The ad created on bringing out the child in the man . In other words. The common refrain linking them was the adult in a free child mode – spottiness.V. Cadbury decided to test the commercial being devised by O&M‟s creative team not for the tire battery of likeability. 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. which is where the comprehension had to be tested. comprehension. The old man kicking the football. Nor was there much chance of his announcing an immediate change in behavior”. the commercial was meant to make him smile at first-and only then realize the import once of the message. . Khabi Bhi Kahin Bhi! The Real Taste of Life Campaign The very first ad in the campaign in 94 was „block – Buster‟. when ever you feel like it…you do not have to wait for an occasion.” Dairy Milk had successfully enabled the free child in the consumer subsequent adverting used the same communication strategy. “Every feels like this”……. “What was clear in this case was that likeability would have to include identification and feeling warmth. evoked a great degree of empathy and identification consumers‟ response were those me…… “Feel like that……. The ad was protested among adult‟s trough focus groups. The mnemonic of 1 ½ glass reached to consumer through every magazines. “If asked upfront.

The fourth in this series was the girl with on her hands. The advertisement suggested. The ad shows a girl dancing with jubilation on the cricket field when her hubby hits the winning stroke. Post campaign saw a great turn around. Think of a match India batting against Pakistan. It came to be recognized as an expression of spontaneity and in pulse. but most importantly chocolate is Cadbury. through not in so many words. The award winning campaign. . The score. The ad focused on showing how the girl relishes the Dairy Milk when she has mehandi on her hands. The ad draws attention to the actual eats experience. 6 runs to win with 1 ball left and India wins the match. The campaign succeeded in softening attitude towards chocolate and lifting then out of the ream of kiddies / special occasion only. Dairy Milk transformed in to a young full brand full of zest. that it was ok to be seen including in a chocolate in public. It embraced a wide range emotion all build around them that chocolate means different things to different people at different times. The idea behind this advertisement was to show the nature of chocolate as an impulse – driven product. You could relate the sweetness of success of chocolate. designed by O & M was intended to rid the Indian chocolates eater of that guilt complex.Kya Swaad Hai Zindagi Ka! The next ad featured an on going match in the field.

‟ 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. to make chocolate eating a regular habit. 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 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. Khabi Bhi. The attempt now is to change the image. with the launch of the new colloquial advertising campaign „Khaannein Wallon Khaannein Ka Bahana Chahiya featuring MTV VJ Cyrus Broacha. Cadbury India aimed to „substantially‟ increase penetration level of the chocolate category in the next few years. The current estimated penetration level of the chocolate category is 19% in the urban market. Thodi Se Pet Puja. Kahin Bhi! .The New Campaign And finally.

with launch of sugar based confectionary goodly and fruits. In other words. The company is pushing the gifting segment. There exists an even larger unorganized market in the confectionary segment. Cadbury account for about 70% followed by Nestle. GCMMF nitramul and other Smith Kline brand Boost. companies like Cadbury India are launching indigenous product made to international standards. it facilitated the repositioning of Cadbury‟s sub brands in the basket. Confectionary sales accounting for 12% of turnover is contributed largely by Éclairs. Maltova and Viva Cadbury bold 14% market share in food drinks segment. chocolate are now being positioned near meal substitutes. Of the 20. The battle. Chocolates contribute to 64% of Cadbury‟s turnover. thanks to the initiative taken by the Cadbury India during early nineties. White drinks accounts for almost two third market of the 82. without much success. though. Nestle is putting up a tough fight. Parle. Some of the strategic clicked. While on one hand. the MNCs such as Joyco and Perfetti have aggressively expanded their presence in the country in the last few years.000 for market south and east are large market for drinks. Amul has about 5% of the market. Gems. in the sense adults are an important target segment now. with minor player taking the rest.000 tonne chocolate market worth about Rs. through occasion linked gifts. 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 . Cadbury has 4% of the market share in this segment. 400 crore. while other did not quite take off. Fruit & Nut.Chocolate Market Share The Indian chocolate market is getting bigger and better. Malted food drinks category consists of white drink and brown drink. is between Cadbury and Nestle. Though with a much smaller portfolio. with a share of around 20%. Butterscotch & Tiffns – a new lease of life. Cadbury also has a strong brand bornvita in the malted health drink category which account for 24% of turnover. the premium segment (composing imported varieties) is opening up on the other. 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%. and gave the Cadbury‟s range – 5 Star. Éclairs. The market itself has become broader based. From a treat for kids. accounting for largest proportion of all India‟s sale. The company attempted expanding its confectionary product portfolio. Crackle. Nutties. Joyoco India and Perfetti. Despite tough market condition and increased competition Cadbury managed to record a double digit . Pary‟s Ravalgoan. Leading national players are nutrine. Candico.

Tied for the brand place are Amul. Khane Walo Lo Ko Khane Ka Bhanna and the Karwa Cauth.(11%) top line growth in 2000.2%. Britannia is the leader brand with 21% among those who expressed an opinion saying that they like advertising for the brand Cadbury was clearly No. This was achieved through innovative marketing strategies and focused advertising campaign flagship brand Dairy Milk. Parle and south based Arun Le Gram with 5% each.8% to Rs. Company added 8 million new consumers and saw its outlets grow to 4. Net profit rose sharply by 41.2 with 18% to which CDM throw in its weight with 13% and perk with 4%. Reduced material and energy cost and tighter control over working capital over working capital and capital expenditure enabled the company to improve the profitability. For the Chocolate Company. Sports are clear winners.5 lakhs and consumer to 60 million. The company achieved a volume growth of 5. 520 million. Cadbury‟s Temptation Cadbury‟s Health Drink . Disappointment among bid brands Kissan and Maggi and Kwality Walls (1%) each. In the food segment.

The product benefits have been defined as “The goodness of milk to the fun of chocolate”. multinutrition value of milk along with the pinch of fun and excitement.8% factor like changing attitude. This segment is too good to miss out on. priced Rs. 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‟.Cadbury‟s Creamy Bar Fruit & Nut New Launch Cadbury target kids with Milk Treat: . Temptation is an attempt to lug niche. higher disposable income. it combines both good health. 30. a large youth population. Temptation :.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.6% and Cadbury‟s share in the impulse segment is 4. . the share of chocolate in 6. The kinds formally associate with Cadbury chocolate offering. Lindit and Hersheys.It is a product that talks directly to the target consumer. Roughly 5%of the total domestic consumption expected to grow to some 10%. Future Strategy In the branded impulse market. 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. ThePreviousCadbury‟s range available in India did not offer consumer an option to upgrade to international chocolate within the Cadbury‟s fold.

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. 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 above are some steps being taken internally to improve future operation and profitability. coca through forward purchase of imports. This would be really effective in maintaining consumption in summer. which limit the opportunity to launch value for money products. 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. when sales usually dip due to the fact that the heat effects product quality and thereby consumption. • Expand the consumer base. The only concerns that the company has in this regard is the current high level of duties. 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. Efficient sourcing of key raw material i.e. . the company looks at the tree important as an opportunity. the company has been able to increase the width of its consumer base through launch of low priced products. lower barrier to trade and the advent of all global players in to the country. 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. In terms of manufacturing management focus is on optimizing manufacturing efficiencies and creating a world class manufacturing location for CDM and Éclairs. • Improving distribution quality by addressing issues of product stability by installation of visi coolers at several outlets. • Use of it to improve logistic and distribution competitiveness • Utilizing mass media to create and maintain brands. 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 is today the second best manufacturing location of Cadbury‟s Schweppes in the world. The company would be able to not only provide greater variety.Various measures are undertaken in all areas of operation to create value for the future. where it could optimally use the global Cadbury Schweppes portfolio.

2% Sugar Confectionary 4.2% Expanding Distribution Reach 2001 + Distribution 450000 Retail Outlet 60 Million Consumers CHAPTER-8 CADBURY SUCCESS STORY .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.

the right partners. the right marketing.K. as well as tasty hazel nuts from Turkey and the fine sheet and choicest natural ingredient available to us anywhere. The right product.to create the highest quality chocolate. These are the ingredients in Cadbury‟s latest recipes for success. Cadbury brands were already famous all around world. the promotional back up and the right employees. and Australia that‟s why Cadbury have been dubbed “The world‟s master chocolate makers”. 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. Cadbury dominated markets as far as the U.K. with 40 chocolate confectionary brands. Schweppes. Right from the stand Cadbury Dairy Milk Chocolate success has been based on these factors: Quality  Value for money  Advertising . when Cadbury merged with the soft drink giant.The Cadbury Story Cadbury‟s success story In 1984. John Cadbury founded U. By1969. Today Cadbury‟s production are enjoyed in 120 countries. Finally there‟s skillful marketing Cadbury always takes extreme care in selecting and marketing the right range of product in every cause. company with one aim: .

Purchase was almost always planned and triggered by motives ranging from celebration. The radical change however was focus on bringing out the spontaneity in adults. as for most children‟s product. 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. dental and respiratory problems. A large scale usage and attitude study was conducted among adults. and not consumers of chocolates. this was likely to limit market growth. it came as no surprise that chocolate were perceived as “kiddy” product and certainly not part of the repertoire for products consumed socially. finally CDM a symbol of manipulation was henceforth to symbolize fun. Chocolates seemed to offer virtually no significant positive and certainly no overt psychogenic benefits. However. Chocolate consumption among adults evoked feeling of self indulgence and guilt. enjoyment and good times. bribing and reward to gifting. And. Considering the advertising history. repositioned chocolates from children to adult consumption. Food and nutritive values associated with chocolates were low. A strong volume growth was witnessed in the early 90‟s when Cadbury. The research revealed that: Adults were primarily purchasers. “can do without”. .Case Study Prior to deciding on the communication strategy for Cadbury Dairy Milk it was important to understand the habits and mindset towards chocolates. For low involvement product categories like chocolates which offer emotional and sensory benefits. Brands images were undifferentiated and the category had low saliency. Adults acted as gatekeepers of sorts when it came to food items. The mnemonic of a glass and half milk was to reinforce the goodness of milk and cue physiological benefits. hitherto. Communication had positioned chocolates for specific situations. had always addressed adults as purchasers rather than consumers. in fact they were categorized as a hazard. they exercised a strong influence on the children‟s consumption behavior. and special occasion to every moment. There was evidence to suggest the need for shifting focus from child as chocolates consumers to adult‟s communication. The biggest opportunity is likely to stem from increasing the consumer base. where communication had shifted from. The only variation was in the Rituals. Emphasis on casual everyday situation could help promote core consumption opportunities. thus imposing boundaries for the growth of the market. For an impulse product category such as chocolates. And. being responsible for obesity. This conditioning and social learning about chocolates was restricting consumption among adults as well as driving them to restrict children‟s consumption.

While new launched such as milk chocolate and Perk slims have been doing well. 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. 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. Effect in expanding confection any portfolio have also not yielded desired results. Perk claims which have supported growth in the past. This target also appears difficult to achieve given the consumer slowdown and the fact that company is dependent on a single category chocolates to drive growth. .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. this could translate into top line growth of 14 –15%. In chocolates too ones remain on the 2-3 key brands as CDM.

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. 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 Bar One Positioned as an affordable enriched milk chocolate . low cost packs to bigger higher priced ones. Therefore consumer would prefer smaller. And it is too early yet to comment on the long term response to the new launch temptations. the company has ruled out a real big chocolates launch in the current year. 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.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. There is additional challenge of Cadbury‟s brand just aiming market share when the consumer has a wide portfolio of brand to choose from. but it certainly won‟t be easy in liberalized environment of free imports. And it is going to be shared with other brands too in future. And whatever be the anomalies of taxation or low. They say chocolates are mostly am impulse purchase. the consumer is surely going to have a wider choice. In such scenario. While there would be new chocolates launch towards the end of the year.

5 Star / Perk/Break Perk – Positioned as Snacking consumption “Thodi si Pet Pooja” 5 Star Energy bar Reach for the Stars. Have a Kit Kat” CHAPTER-9 DATA ANALYSIS FINDINGS AND SURVEY 1. any time snack. KitKat Positioned as a snacking consumption “Have a Break. Cool.Positioned as Trendy. Do you eat chocolates? .

Where do you buy chocolates from? 4.2. Which brand of chocolates do you use? 3. Are you aware of any campaign of the above brands? .

child connectivity and value for money offering to be the key growth drives.a. Which cadbury‟s product do you usually prefer or use? 6. over the next years.5. . Do you think Cadbury‟s chocolate is easily available in market ? CHAPTER-10 RECOMMENDATIONS RECOMMENDATIONS • Maintain dominance in chocolate. • New channels such as gifting. • Grow volume of sales at least 20% p. confectionery and market leadership in brown drinks.

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.• Achieve the goal of best manufacturing location in Cadbury Schweppes world for Dairy Milk and Éclairs. • One new major product launch every year. CONCLUSION This company project has demonstrated “CADBURY‟S MARKETING AND COMPETITIVE STRATEGIES” that has proved to be extensive through. CHAPTER-11 .

cadburyindia. “Managing Brand Equity”.uk. “Focus” Harper Collins Publishers Ltd.com • Web site: www. • David A. • Advertising and marketing Magazine • The Economic Times – “Brand Equity” • Company Literature • Market survey and questionnaires • Web site: www.com • Business World • Business Today . Aaker (1996) “Building Strong Brands”. Aaker (1991). • David A. The Free Press. Prentice Hall of India Ltd. The Free Press. • Philip Kotler (Eighth Edition) “Marketing Management”.BIBLIOGRAPHY Bibliography • A L Ries (1996).Cadbury.

Are you aware of any campaign of the above brands?  Yes  No 5. Do you think Cadbury‟s chocolate is easily available in market ?  Yes  No . Where do you buy chocolates from?  Super stores  Retail Stores  Restaurants  Movie Halls  Others 4.ANNEXURE QUESTIONNAIRE 1. Which brand of chocolates do you use?  Cadbury‟s  Nestle  Amul  Others 3. Do you eat chocolates?  Yes  No 2. Which cadbury‟s product do you usually prefer or use?  Dairy Milk  5 Star  Fruit & Nut  Perk  Temptation 6.

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