c



  

The chocolate industry in India as it stands today is dominated by two companies, both
multinationals. The market leader is Cadbury with a lion's share of 70 percent. The company's
brands (Five Star, Gems, Eclairs, Perk, Dairy Milk) are leaders their segments. Till the early 90s,
Cadbury had a market share of over 80 percent, but its party was spoiled whenNestle appeared
on
the scene. The latter has introduced its international brands in the country (Kit Kat, Lions), and
now
commands approximately 15 percent market share. The Gujarat Co-operative Milk Marketing
Federation (GCMMF) and Central Arecanut and Cocoa Manufactures and Processors Co-
operative
(CAMPCO) are the other companies operating in this segment. Competition in the segment will
get
keener as overseas chocolate giants Hershey's and Mars consolidate to grab a bite of the Indian
chocolate pie.

Per Capita Chocolate Consumption (in lb) of first 15 countries of the world
Rank Countries Per Capita
Consumption (in lb)
1 Switzerland 22.36

2 Austria 20.13
3 Ireland 19.47
4 Germany 18.04
5 Norway 17.93
6 Denmark 17.66
7 United Kingdom 17.49
8 Belgium 13.16
9 Australia 12.99

10 Sweden 12.90
11 United States 11.64

12 France 11.38
13 Netherlands 10.56
14 Finland 10.45
15 Italy 6.13

INDIA, stands nowhere even near to these countries when compared in terms of Per Capita
Chocolate Consumption. The Indian chocolate industry is extremely fragmented with a
range of
products catering to a variety of consumers. We have the bars/slabs, jellies, lollipops, toffees
and
sugar candies.
Given India's mammoth population, it comes as a surprise that per capita chocolate consumption
in
the country is dismally low - a mere 20 gms per Indian. Compare this to over 7 kgs in most

developed nations.
However, Indians swallowed 22,000 tonnes of chocolate last year and consumption is
growing
at 10-12 percent annually.

The market size of chocolates was estimated to be around 16,000 tonnes, valued around Rs.
4.16 billion in 1998. Volume growth which was over 20% pa in the 3 years preceding 1998,
slowed
down thereafter.
Both chocolate and sugar confectioneries have abysmally low penetration levels, in fact, even
lower than biscuits, which reach 56 per cent of the households. Market growth in the chocolate
segment has hovered between 10 to 20%. In the last five years, the category has grown by 14-
15%
on an average and will expect it to continue growing at a similar rate in the next five years.

The market presently has close to 60mn consumers and they are mainly located in the
urban areas. Growth will mainly come through an increase in penetration as income levels
improve.
However, almost all of this consumption is in the cities, and rural India is nearly
µchocolate-free¶. But the fact is that three quarters of Indians live in Rural Areas.³ Av e r a g e

summertime temperatures reach 43 degrees Celsius in India. Chocolate melts at body

temperature of
36 degrees.´

Per capita consumption of chocolates in India is minuscule at 20gms in India as compared

to around 5-8 kgs and 8-10 kgs respectively in most European countries. ... Awareness
about
chocolates is very high in urban areas at over 95%

Growth of other lifestyle foods such as malted beverages and milk food have actually
declined by 3.7 per cent and 11.7 per cent, however the CHOCOLATES continue to grow at
the rate of 12.6%.
Low priced unit packs, increased distribution reach and new product launches can be
said to have fuelled this growth.
The launch of lower-priced, smaller bars of chocolate in the last two years and
positioning of chocolate as a substitute to traditional sweets during festivals, have boosted
consumption. This is also because chocolate, which was considered to be an elitist food, has
caught
the fancy of buyers looking for a lifestyle item at affordable cost.
Till recently, chocolate consumption had been restricted by low purchasing power in the
market. Chocolates and other cocoa-based snack foods were looked upon as food suitable only
for
the well-off.
After economic liberalization in 1991, major changes have occurred in food habits, partly on
account of rise in gross domestic product (GDP) growth and higher purchasing power in the
hands of
the middle-class representing a third of the total population. Availability of chocolate products
has
also exploded.
A study had projected that sales of the Indian chocolate industry would rise from $125/$130
million in 1998 to $175/$180 million by the year 2000 and to $450 million by the year 2005
which
ACTUALLY happened irrespective of various negative factors.

Per capita chocolate consumption continues to be low at about 200g per person, being

mainly consumed in urban areas. In the middle and higher income groups, 70 per cent of
children, 43
per cent of young adults and 16 per cent of adults consume chocolate.

Chocolate Consumption Structure - 2004

Children
55%
Adults
12%

Young Adults
33%
Chocolate & Confectionery Market of India - 2004
Chocolate Counts
Rs. 250 Cr.
10%
Chocolate Bar
Rs. 350 Cr.

14%
Mints & Chew ing
gums

Rs. 325 Cr.

13%
Sugar Boiled
Confectionery

Rs. 1600 Cr.

63%
AC Nielsen ORG Marg report estimates the Indian Chocolate Industry¶ worth at Rs
2,000-crore (Rs 20 billion)
Types of Chocolates

Depending on what is added to (or removed from) the chocolate liquor, different flavors and
varieties of chocolate are produced. Each has a different chemical make-up, the differences are
not solely in the taste.
1. Unsweetened or Baking chocolate is simply cooled, hardened chocolate liquor. It is used
primarily as an ingredient in recipes, or as a garnish.
2. Semi-sweet chocolate is also used primarily in recipes. It has extra cocoa butter and sugar
added. Sweet cooking chocolate is basically the same, with more sugar for taste.
3. Milk chocolate is chocolate liquor with extra cocoa butter, sugar, milk and vanilla added.
This is the most popular form for chocolate. It is primarily an eating chocolate.

Cocoa is chocolate liquor with much of the cocoa butter removed, creating a fine powder. It can
pick up moisture and odors from other products, so you should keep cocoa in a cool, dry place,
tightly covered.
There are several kinds of cocoa Low-fat cocoa has the most fat removed. It typically has less
than ten percent cocoa butter remaining. Medium-fat cocoa has anywhere from ten to twenty-
two percent cocoa butter in it. Drinking or Breakfast cocoa has over twenty-two percent left in it.
This is the cocoa used in chocolate milk powders like Nestle's Quik. Dutch process cocoa is
cocoa which has been specially processed to neutralize the natural acids in the chocolate. It is
slightly darker and has a much different taste than regular cocoa. Decorator's chocolate or
confectioner's chocolate isn't really chocolate at all, but a sort of chocolate
flavored candy used for things such as covering strawberries. It was created to melt easily and
harden quickly, but it isn't chocolate.
Categories of Chocolates

Commercial Chocolates are available in the following forms:

1. Bars or Moulded Chocolates
2. Counts
3. Panned Chocolates (Gems)
4. Éclairs

5. Assorted Chocolates

Bars or moulded chocolates (like Dairy Milk, Truffle, Amul Milk Chocolate, Nestle Premium,
and Nestle Milky Bar) comprise the largest segment, accounting for 37% of the total chocolate
market in volume terms. ... Wafer chocolates such as Kit-Kat and Perk also belong to this
segment. Panned chocolates accounts for 10% of the total chocolate market. ... Wafer chocolates
such as Kit-Kat and Perk also belong to this segment. ..

Form of Consumption
a. Pure Chocolates
b. Toffees

c. Cakes & Pastries

d. Malted Beverages
e. Wafer Biscuits & Baked Biscuits

f. Chocolate Desserts

Chocolate Manufacturing Process

Workers cut the fruit of the cacao tree, or pods open and scoop out the beans. These beans are
allowed to ferment and then dry. Then they are cleaned, roasted and hulled. Once the shells have
been removed they are called nibs. Nibs are blended much like coffee beans, to produce different
colors and flavors. Then they are ground up and the cocoa butter is released. The heat from the
grinding process causes this mixture of cocoa butter and finely ground nibs to melt and form a
free flowing substance known as chocolate liquor. From there, different varieties of chocolate are
produced.

What is conching?

Raw unprocessed chocolate is gritty, grainy and really not suitable for eating. Swiss
chocolate manufacturer Rudolph Lindt discovered a process of rolling and kneading chocolate
that gives it the smoother and richer quality that eating chocolate is known for today. The name
'conching' comes from the shell-like shape of the rollers used. The longer chocolate is conched,
the more luxurious it will feel on your tongue.

Market Size (by value & by volume)

The Indian chocolate market is valued at Rs. 650 crores (i.e. Rs. 6.50 billion) a year. The
Indian chocolate bazaar is estimated to be in the region of 22,000-24,000 tonnes per annum, and
is
valued in excess of US$ 80 million.
Chocolate penetration in the country is a little over 4 percent, with India's metros proving to
be the big draw clocking penetration in excess of 15 percent. Next, comes the relatively smaller
cities/towns where consumption lags at about 8 percent. Chocolates are a luxury in the rural
segment,
which explains the mere 2 percent penetration in villages.

The market presently has close to 60mn consumers and they are mainly located in the
urban areas.
Major Players & their Market Share

The major players in the Indian Chocolate Industry are:

1. Cadbury¶s India Limited
2. Nestle India
3. The Gujarat Co-operative Milk Marketing Federation (GCMMF) ± AMUL
4. Cocoa Manufactures and Processors Co-operative (CAMPCO)

Bars Count
Lines Wafer Panned Premium
Cadbury¶s Dairy Milk &

Variants
5-Star, Milk
Treat Perk Gems,
Tiffins
Temptation &
Celebrations

Nestle Milky Bar Bar One

Crunch
Kit Kat,
Munch Nutties

Amul
Milk Chocolate
Fruit µn¶ Nut

FUNDOO
Bindaaz
Almond Bar

Campco Campco Bar,

Cream
Krust,
Turbo Treat
Cadbury¶s India Limited ± A Study
CADBURY¶S INTERNATIONAL

Cadbury is a very old trusted name. It all started in Birmingham in England when John
Cadbury started his family grocery shop with side business of cocoa and chocolate products in
around 1824. His two sons, Richard and George, expanded their family business of cocoa and
chocolate. Bournville, a town near Birmingham, was build by them as a part of expansion of
their business. Cadbury family is also known for their contribution in social reforms and
considered as liberals. This family was in the forefront of adult education movement in England.
CADBURY¶S INDIA LIMITED

Cadbury was originally incorporated as a wholly owned subsidiary of Cadbury Schweppes

Overseas Ltd (CSOL) in 1948. The company¶s original name was Cadbury Fry (India) Ltd. In
1978,
CSOL diluted its equity stake to 40% to comply with FERA guidelines. In 1982, the name was
changed to Hindustan Cocoa Products. CSOL¶s shareholding was increased to 51% in Jan ¶83
through a preferential rights issue of Rs700mm. The current name was restored in Dec ¶89. In
2001,
Cadbury Schweppes made an open offer to acquire the 49% public holding in the company. The
parent holds over 90% of the equity capital after the first open offer. A second open offer has
been
made to buyback the balance shareholding, after which the company would operate as a 100%
subsidiary of Cadbury Schweppes Plc
Ever since the Cadbury is in India in 1947, Cadbury chocolates have ruled the hearts of
Indians with their fabulous taste. The company today employs nearly 2000 people across India.
Its one of the oldest and strongest players in the Indian confectionary industry with an
estimated 68 per cent value share and 62 per cent volume share of the total chocolate market. It
has
exhibited continuously strong revenue growth of 34 per cent and net profit growth of 24 per cent
throughout the 1990¶s. Cadbury is known for its exceptional capabilities in product innovation,
distribution and marketing.
With brands like Dairy Milk, Gems, 5 Star, Bournvita, Perk, Celebrations, Bytes, Chocki,
Delite and Temptations, there is a Cadbury offering to suit all occasions and moods.

Today, the company reaches millions of loyal customers through a distribution network
of 5.5 lakhs outlets across the country and this number is increasing everyday
OBJECTIVES AND VALUES
Our objective is to
Grow shareholder value«over the long term
Cadbury in every pocket

Our marketing strategy is aimed at achieving this vision by growing the market, by appropriate
pricing strategy that will create a mass market and to have offerings in every category to widen
the market

Our Managing For Value Process incorporates

Setting stretched financial objectives.

Adopting Value Based Management for major strategic and operational decisions and business
systems. Creating an outstanding leadership capability within our management.
Sharpening our company culture to reflect accountability, aggressiveness and adaptability.
Aligning our management rewards structure with the interests of our shareowners.

VISION
Life Full Of Cadbury
Cadbury is an organisation which impacts and interacts with the consumers.

Cadbury is present in most happy occasions in the life of our consumer.

Our brands excite our consumer.
Cadbury is an expression of a consumer's life.

Cadbury Full Of Life

Cadbury as a company is vibrant.

Cadbury ia a fun and energising workplace.
Cadbury is robust and alive.

Business

Cadbury dominates the Indian chocolate market with above 65 ± 70 % market share. Besides, it
has a
4% market share in the organized sugar confectionery market and a 15% market share in milk/
malted foods segment.

Changing product mix

Contribution to turnover
1994
Contribution to turnover
2001

Chocolate 59% 65%

Sugar Confectionery 9% 10%
Food Drinks 32% 24%
Categories/ Brands
Chocolate Bars , Count lines , Panned confectionery ,
Wafer chocolates, Assorted Chocolates & Gift Chocolates
Sugar Confectionery Googly , Mocka, Gollum, Frutus & Nice Cream
Food Drinks Bournvita, Delite & Drinking Chocolate

Cadbury's Indian operations are not just the largest in Asia but also the cheapest. In India,
Cadbury has the largest market share anywhere in the world and has been the fastest
growing FMCG Company in the last three years with a compound annual growth rate of 12.5 per
cent.
Plant locations

Cadbury¶s manufacturing operations started in Mumbai in 1946, which was subsequently

transferred to Thane. In 1964, Induri Farm at Talegaon, near Pune was set up with a view to
promote modern methods as well as improve milk yield. In 1981-82, a new chocolate
manufacturing unit was set up at the same location in Talegaon. The company, way back in
1964,pioneered cocoa farming in India to reduce dependence on imported cocoa beans. The
parent company provided cocoa seeds
and clonal materials free of cost for the first 8 years of operations. Cocoa farming is done in
Karnataka, Kerala and Tamil Nadu. In 1977, the company also took steps to promote higher
production of milk by setting up a subsidiary Induri Farms Ltd near Pune. In 1989, the company
setup a new plant at Malanpur, MP, to derive benefits available to the backward area. In 1995,
Cadbury expanded Malanpur plant in a major way. The Malanpur plant has modernized facilities
for Gems, Eclairs, Perk etc. Cadbury also operates third party operations at Phalton, Warana and
Nashik in Maharashtra.

These factories churn out close to 8,000 tonnes of chocolate annually.

Raw Material Composition in 2004

Product Name Quantity

(in Kgs)
Cost
(Rs) / Ut
Total Cost
(in Rs.)

Milk Powder / Liquid Milk / Cream 26232610 15.79 414212911.9

Dry Fruits 432340 162.6 70298484
Edible Oil 2167450 51.72 112100514
Glucose-Liquid 27061090 13.17 356394555.3
Cocoa Beans / Butter/ Powder 8478460 109.95 932206677
Malt Extract 8679690 20.39 176978879.1

Total 2062192021

Cadbury's India Limited

Raw Material Composition in 2004
(in Rs.)

Malt Extract
9%
Cocoa Beans/
Butter/Powder
46%

Edible Oil
5%
Dry Fruits
3%
Milk Powder/
Liquid Milk/
Cream 20%
Glucose-Liquid
17%

FINISHED PRODUCTS DETAILS (as on 2004)

Product Name Stock

(%)
Production
(units)
Sales Qnty
(units)
Sales

(Rs. Cr.)

Chocolates / Coated Wafer & Confectionery 58.57 23810373 22064912 518.51

Malt Foods (Jar/Refill/Tin) 22.02 3206253 3030579 194.97
Excise duty 13.69 - - 121.23
Confectionery- Hard Boiled 4.04 4425758 4023276 35.79
Cocoa powder (Tin/Bags) 1.67 33312 29904 14.78

Total 99.99 31475696 29148671 885.28

Cadbury's India Limited

Finished Products - Sales Revenue - 2004
(in Rs. Crores)

Cocoa powder
(Tin/Bags)

2%
Confectionery-
Hard Boiled
4%
Excise duty
14%
Chocolates/
Coated Wafer/
Confectionery
58%
Malt Foods
(Jar/Refill/Tin)
22%
Cadbury¶s India Limited
Sales in Rs. Million
Years 1998 1999 2000 2001
Sales 3354 3892 4324 4716

Sales

3354 3892 4324 4716

1000 2000 3000 4000 5000

98 99 00 01
Years
Rs. Million
PRODUCT MIX - CHOCOLATES
PRODUCT BASKET
Category Brand Variants

Bars Dairy Milk

Plain
Fruit n Nuts
Double Decker
Roasted Almond
Chunky
5-Star
5 Star
Count Lines 5 Star Chrunchie
Milk Treat Chocolate
Orange
Wafer Chocolate Perk Perk
Perk XL
Other Chocki Mint, Strawberry & Chocolate
Premium/ Gift Chocolates Temptation Rum, Cashew, Almond & Orange
Celebrations Various Gift Packs

Cadbury¶s Dairy Milk (CDM):

Cadbury¶s Dairy Milk is the flagship brand of Cadbury¶s not only in India but world wide. CDM
is the single largest selling unit in India. It has annual sales to the tune of Rs 200 crore. CDM not
only accounts for 30 per cent of the total chocolate market in value, but commands nearly 26 per
cent in volume terms and close to 30 per cent of Cadbury¶s annual turnover.
Moving from a predominantly adult positioning in the days of the legendary dancing girl ad, to
the teens and the tweens, when the Cyrus Broacha ads hit the airwaves, CDM has made a long
sweet journey. In spite of the new categories being explored by Cadbury, its star brand remains
Cadbury Dairy Milk (CDM) which continues to corner almost 30 per cent of the chocolate
market.

Cadbury¶s Temptation:
Cadbury¶s Temptation is premium chocolate brand aimed for high value consumption. Various
variants available are Almond, Rum, Cashew & Orange. Cadbury¶s temptation is priced at Rs. 40
Cadbury¶s Celebration Cadbury India launched its premiumCelebrations range, which contains
traditional Indian dry fruits wrapped in Dairy Milk chocolate. This gifting option combines the
pleasure of giving away dry fruits ² which Indians traditionally consider a premium, healthy
gift ² with chocolate. Cadbury now has 90 per cent market share in this profitable segment.

PRODUCT REVAMPING & INNOVATIONS

Cadbury¶s chocolate brands registered double-digit growth in 2002, touching an astounding

19 per cent in the second half of that calendar year. Getting the power brands right was the first
priority, so genuine re-launches of the products were made.
However, the growth rate was declining after that. The growth went down from 19 per cent
in 1999 to 12 per cent in 2000 to single-digits, with seven per cent in 2001. If it staged a smart
recovery to nearly 10 per cent in 2002, it was largely on the back of Chocki and the revamped
power
brands.

PRODUCT INNOVATIONS:
5 STAR:
Consumer feedback suggested that the old 5 Star was too chewy, and people complained of it
sticking to their teeth. It was made softer and melted easily in the mouth & introduced as 5 Star
Crunchy
PERK:

Perk was made much lighter and the size of the bar increased to match Nestle¶s Munch. Perk had
been under fire from Nestle¶s deadly duo of KitKat and Munch, but after the relaunch, its
marketshare is two per cent more than KitKat¶s. And, the five-year-old brand is now almost as
big as the decades-old 5 Star in size, both in the region of Rs 50-55 crore.

HEROES:
Packaging innovation has played a vital role in revamping of various Cadbury¶s brands.
Heroes brand is simply a multi-pack with miniatures of all its most popular brands in a single
outer case.
NEW PRODUCT LAUNCHES
Rich Dry Fruit Collection
For Gifting Festive Season
Cadbury Celebrations¶ Rich Dry Fruit

Collection ± a range of premium

chocolate gift boxes.
Available in attractive packs, the Collection caters to a premium gifting consumer and is an ideal
festive gift. It is a unique combination of the best Cadbury chocolate and premium dry fruits and
comes in four different formats each of which is a mix of select premium dry fruits enrobed in
rich
Cadbury Dairy Milk chocolate.

Cadbury's Creative Launch

A new µafter dinner' segment
Cadbury Desserts
³for sweet moments after dinner´
³Khaane Ke baad Kuch Meetha Ho Jaye´.
Rs. 20/- per packet of 44 gms
Cadbury Dairy Milk (CDM) Desserts ± with rich indulgent crème center, in exotic & traditional
flavors of Tiramisu and Kalakand. CDM Desserts offer the perfect rounding off taste, after meal
that adds special µMeetha' moments to the family. The rich tastes of CDM combined with the
unique

crème center in exotic flavors provide a special chocolate experience. CDM Desserts add delight

to
the after-meal moments, especially with the consumers whose current choice of sweets range
from
home made delicacies to fruits to meethai.

PRICING

After the roaring success of Nestle¶s Munch and Chocostick, Cadbury¶s empire struck back hard.
The Rs 5 price point accounts for more than half of all chocolate sales. Nestle had seized the
initiative at this price point, with its launch of Munch, now a roaring success (and the largest
selling
product at that price point). Today, Cadbury has four products at this price point: CDM, Perk, 5
star
and Gems ² and the five-rupee CDM bar is its single largest-selling SKU.

³This is a potent price point in India, because the average purchasing power is abysmally
low,´ is what industry analyst have to say.

Nestle kicked off one of the biggest success ² the liquid chocolate category with its brand
Chocostick priced at Rs.2 ² three months ahead of competition. Cadbury did react with Chocki,
priced at Rs 2, expanding the concept of sachetisation to new frontiers. Chocki has been the

single
biggest growth driver for Cadbury as well as the entire chocolate category. The novelty of

the
format endeared itself to the existing customer. In less than one year, it constituted nearly 10 per
cent
of the total chocolate market, split equally between Cadbury and Nestle.

Volume led growth strategy

Cadbury has followed a well-planned strategy of fuelling volume growth by introducing smaller
unit
packs at lower price points. Simultaneously, the company seems to have astutely juggled with
the
larger pack sizes and raised prices to a degree higher than what appears at face. The strategy has
driven volumes in the last two years and we expect the volume growth to continue in the next
two
years.

PRICE WOES

Chocki, selling at a potent price point of Rs 2, was ideal for smaller towns, especially since it did
not
need refrigeration. But Chocki started to cannibalise other higher-priced chocolates in larger
markets.

The students of Bombay Scottish (an upmarket school in Mumbai) are not supposed to eat
Chocki, they should not have even heard of the product.
Distribution

Chocolate needs to be distributed directly, unlike other FMCG products like soaps and
detergents, which can be sold through a wholesale network. 90% of chocolate products are
sold
directly to retailers.

Distribution, in the case of chocolates, is a major deterrent to new entrants as the product has
to be kept cool in summer and also has to be adapted to suit local tropical conditions.

Cadbury's distribution network used to encompasses 2100 distributors and 450,000 retailers.
The company has a total consumer base of over 65 million. Besides use of IT to improve
distribution
logistics, Cadbury is also attempting to improve distribution quality. To address the issues of
product
stability, it has installed VISI coolers at several outlets. This helps in maintaining consumption
in
summer, when sales usually dip due to the fact that the heat affects product quality and thereby
offtake.
To avoid cannibalization of its higher priced products from lower priced ones, Cadbury is
setting up two separate distribution channels ± one forCORE business & other forMASS
markets,
with different stockists, wholesalers and retailers. One set will be dedicated to Cadbury¶s high-
end
products and traditional chocolates. The other will cater to the mass market brands namely
Chocki,
Halls, Eclairs et al ² all products priced below Rs 3.
But today, Cadbury's distribution network reaches out to six lakh outlets each for its
chocolate & confectionery brands (i.e. total reaching12 lakh outlets).

Promotion

Typically it is said that chocolates are being eaten when everyone is happy. And this is
something advertising has always portrayed. But it is found chocolates are eaten under diverse
conditions and moods - when people are anxious, when they are sad, when happy - a whole
range of
emotions. Condensing these views & thoughts, it can be said chocolate is a true soul mate.
Someone
who is with you through the ups and downs of life, helping you bounce back. And that's what
Cadbury's Dairy Milk (CDM) positioned itself as - a special friend.

% Share of various Brands Ad spending of Cadbury

Here, the 6 Cadbury brands shown in the graph comprise 85% of the advertising pie, whereas,
rest of
the 9 brands advertised by Cadbury comprise 15% of the advertising. Cadbury Dairy Milk
Chocolate
is the most advertised brand (with 22%).

RE-INVENTING CABDURY
³Kya Swad Hai Zindagi Mein´ redefined the way Indians looked at Cadbury

Chocolates. (The commercial showed a beautiful young lady overcoming all obstacles on the
cricket
ground, crossing boundary, watchman, securities and embracing her lover who won the game by
hitting a six). This theme introduced in around mid 90¶s bought instant growth to Cadbury¶s
Dairy
Milk. The Ad campaign ran successful for about four years and immersed deeper inside hearts of
Indians.
In March 2002, Cadbury launched its next advertisement campaign for its flagship chocolate
brand, Cadbury's Dairy Milk (CDM). The campaign featured a television (TV) commercial that
was
significantly different from the company's earlier commercials for the brand. It featured Cyrus

Broacha interviewing college students and asking why they liked to eat CDM. This was followed
by
college students 'singing' their excuses for eating CDM. Just as the commercial seems all set to
end
with the students and Cyrus singing the famous CDM theme, 'Khane Walon Ko Khane Ka

Bahaana Chaahiye' (those who want to eat, will find excuses), a student comes up and
questions
Cyrus,

The advertisement aimed at conveying the idea that no specific occasion is required for
consuming CDM. This was a significant departure from CIL's strategy of appealing to
adults
in India, who sought a rational justification for indulging in chocolate consumption.
Cadbury roped in Preity Zinta for its PERK brand. Preity Zinta¶s angelic dimples laid the

foundation for what would become the Indian teenager¶s favorite snack. After this campaign,
PERK¶S sale surged
Cadbury¶s advertising has, over the past few years, aptly reflected India¶s passion for
chocolates.
CADBURY ADVERTISEMENTS

Dil ko jab kushi choo jaye..."...kuch meetha jo jaye.."

Akhir barvi pass ho hi gaya." kuch meetha jo jaye..
Log Cadbury Kyon Khate Hai«.Khaane waalon ko khaane ka bahaana."
Cadbury¶s Dairy Milk«..Asli swad zindagi ka

CADBURY DESERTS
³khaane ke baad kuch meetha ho jaaye.´
CADBURY CELEBRATIONS

Looking wistfully at a photograph, Mr. Bachchan thinks, he recollects the photo-shoot when he
had thrown the cap off his friend's head.

Aaj dil ne socha yun, kissi apne ko kya doon?

Jo usse kahe tum apne ho,
.jo apne aap mein khaas ho,
jo sirf taufa nahin ehsaas ho
Jisme rishto ki mithas ho«.
Cadbury¶s Celebrations
Rishto ki Mithas
Cadbury And The Worm Controversy

The discovery of worms in some samples of Cadbury¶s Chocolate in early October 2003
created one of the biggest controversies in India against a Multi National reputed for being a
benchmark of QUALITY.
The controversy created an deep adverse impact on the company with their sales not only
drastically dipping down, but at the same time allowing the competitors to establish their
foothold
and taking maximum advantage of Cadbury¶s misfortune.
The controversy, and the adverse publicity received in several countries, set back its plan of
outsourcing model which would have resulted in significant revenue generation, several months
back.

The "worms¶ controversy" came at the worst time«.the next few months were the peak

season of Diwali, Eid & Christmas. Cadbury sells almost 1,000 tonnes of chocolates during
Diwali. In that year, the sales during festival season dropped by 30 per cent. The company
saw
its value share melt from 73 per cent in October 2003 to 69.4 per cent in January 2004. In

May,

however, it inched up to 71 per cent. CDM sales volumes declined from 68 per cent in
October
¶03 to 64 per cent in January 2004
Clearly, the worm controversy took a toll on Cadbury's bottom-line. For the year ended
December 2003, its net profit fell 37 per cent to Rs 45.6 crore (Rs 456 million) as compared
with a 21 per cent increase in the previous year.

However, Cadbury¶s reiterated that all through the 55 years of leadership in India, that it has
remained synonymous with chocolates and have remained committed to high quality and
consumer
satisfaction."

CABDBURY¶S FIGHT-BACK
'Project Vishwas'
³Steps to ensure quality & regain the confidence´