Integrated marketing

communication
ON

SUBMITTETD TO SUBMITTED BY:

Prof.Dr.MADHAVI PANDYA P.SANDEEP(M5-50)

THOMAS DON(M5-42)

SAI SASIKANTH(M5-52)
Contents
Overview of the Company: ..................................................................................................................... 3
Cadbury’s CSR Vision and Strategy ..................................................................................................... 5
OVER ALL TURN OVER ......................................................................................................................... 6
CHALLENGES OF CADBURY ..................................................................................................................... 8
Cadbury challenges commuters with 'Eyebrow Language'..................................................................... 8
WHAT IS BRAND? .................................................................................................................................. 10
DEVELOPING A BRAND...................................................................................................................... 11
CADBURY: THE BRAND ...................................................................................................................... 12
COMPETITORS:.................................................................................................................................. 12
BUILDING A MEGABRAND: CADBURY DAIRY MILK ........................................................................... 17
SCOPE OF THE MEGABRAND ............................................................................................................ 18
Cadbury Advertising Timeline their products:- ................................................................................. 20
CADBURY AND ITS PRODUCTS .............................................................................................................. 22
Bar and a Half ................................................................................................................................ 24
INTRODUCING CADBURY AS AN AFTER DINNER SWEET ................................................................ 28
INTERSTING FACTS OF CADBURY .......................................................................................................... 29
COMMUNICATING STRATEGY ............................................................................................................... 30
Distribution and Selling strategy: .......................................................................................................... 32
SWOT ANALYSIS .................................................................................................................................... 34
BUSINESS OVERVIEW ............................................................................................................................ 35
INTEGRATED MARKETING COMMUNICATION OF CADBURY................................................................ 37
Marketing communication mix elements ......................................................................................... 37
ADVERTISING THEIR PRODUCTS IN DIFFERENT WAYS ...................................................................... 38
OTHER MARKETING MIX ELEMENTS OF CADBURY ............................................................................... 45
5 P’S Of Cadbury ................................................................................................................................... 46
Segmentation, Targeting, and Positioning ............................................................................................ 52
OVERCOMING THE WORM CRISIS USING IMC...................................................................................... 57
STEPS TAKEN TO SOLVE THE CONTROVERSY .................................................................................... 59
Future Strategy ..................................................................................................................................... 62
CORPORATE SOCIAL RESPONSIBILITY ................................................................................................... 65

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 Overview of the Company:

Cadbury India is a food product company with interests in Chocolate

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

Its heritage can be traced back in 1824 when John Cadbury opened a shop in
Birmingham selling cocoa and chocolate. Since then we have expanded our
business throughout the world by a program me of organic and acquisition led
growth. On 7 May 2008, the separation of our confectionery and Americas
Beverages businesses was completed creating Cadbury plc with a vision to be
the world's BIGGEST and BEST confectionery company.

 Make and sell three kinds of confectionery: chocolate, gum and candy

 Operate in over 60 countries

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

 Working with around 35,000 direct and indirect suppliers

 Employs around 45,000 people

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

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Cadbury is the world's largest confectionery company and its origins can be
traced back to 1783 when Jacob Schweppe perfected his process for
manufacturing carbonated mineral water in Geneva, Switzerland. In 1824, John
Cadbury opened in Birmingham selling cocoa and chocolate. Cadbury and
Schweppe merged in 1969 to form Cadbury Schweppes plc. Milk chocolate for
eating was first made by Cadbury in 1897 by adding milk powder paste to the
dark chocolate recipe of cocoa mass, cocoa butter and sugar. In 1905,
Cadbury's top selling brand, Cadbury Dairy Milk, was launched. By 1913 Dairy
Milk had become Cadbury's best selling line and in the mid twenties Cadbury's
Dairy Milk gained its status as the brand leader. Cadbury India began its
operations in 1948 by importing chocolates and then re-packing them before
distribution in the Indian market. Today, Cadbury has five company-owned
manufacturing facilities at Thane, Induri (Pune) and Malanpur (Gwalior),
Bangalore and Baddi (Himachal Pradesh) and 4 sales offices (New Delhi,
Mumbai, Kolkota and Chennai). Its corporate office is in Mumbai. Worldwide,
Cadbury employs 60,000 people in over 200 countries.

BOARD OF DIRECTORS

C Y Pal - Chairman

Matthew Cadbury - Managing

Director

Rajiv Wahi - Vice Chairman

Jaithirth Rao - Director

S N Talwar - Director

Rajeev Bakshi - Director

Harsh Mariwala - Director

N V Iyer - Director

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 David Kappler - Director

B Puri - Executive Director

P Chhaya - Executive Director

J Strydom - Executive Director

G Sridhar - Executive Director

G M Bhat - Executive Director

Cadbury’s CSR Vision and Strategy

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

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

 They see CSR as a positive contributor to their competitive strategy.

Increasingly they think of it as more about doing responsible things
profitably than just doing the profitable things responsibly.

 CSR strategy – Five Pillars of CSR: marketing, food and consumer trends;
ethical sourcing and procurement; environment; quality, health and
safety; human rights and employment standards; and community
investment.

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OVER ALL TURN OVER

The confectionary industry in India is in its growth stage. This marketing

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

The total confectionary market is valued at about 41 billion Indian

Rupees. It has a total turnover of about 223500 tones of confectionary
produced every year. This is a huge overall turnover which is equal to that of
established markets. Most the confectionary are consumed in the urban areas.
The urban market constitutes about 73 percent of the total market. This is a
skewed market share compared to the rural market which accounts for about
27% of the total market.

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

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

Cadbury with a number of products including Daily Milk, Perk, Gems, 5

Star, Celebration, Bytes, Dairy Milk Éclairs, Éclairs Crunch, Mr. Pops and Halls is
the leading player in the chocolate segment, Éclairs segment, Lollipops, and
the Mints Segment (Cadbury, 2008).

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

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CHALLENGES OF CADBURY
Cadbury challenges commuters with 'Eyebrow Language'

Cadbury is capitalizing on the success of its global "Eyebrows" campaign

with a Canadian print and OOH campaign called "Eyebrow Language."

Targeting the younger end of the adult demographic, the campaign's

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

The media buy, handled by Cossette with creative by The Hive, are
focused on Toronto and Vancouver, and include daily commuter newspapers, a
billboard at Yonge-Dundas Square in Toronto, transit ads in both cities and an

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online banner buy. Launched last week, the commuter-paper ads are running
three days a week for four weeks, changing each time, as are the OOH ads.

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

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

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WHAT IS BRAND?

A brand is a name sign symbol slogan or design or a combination of these,

intended to identify the goods and services of one seller and to distinguish
them from those of competitors". Branding helps differentiate products and
can be a powerful tool of competitive strategy. While products can come and
go over time, brands (if properly managed) can live indefinitely. Brands have
many benefits for companies and consumers. For companies; strong brands
add value, and consumers develop positive associations with the brand and are
less likely to purchase competitors’ products. This means the brand can act as a
barrier to competition. For consumers, brands help them to quickly identify
products and make shopping easier. Strong brands carry a guarantee of quality
which consumers trust and are often willing to pay more for. Consumers will
pay a premium price for a branded product if they believe they it provides a
higher value.
Building strong brand is an important marketing strategy for companies,
enabling premium pricing and making widespread distribution easier to
achieve. Brand loyalty helps create and sustain high sales and profit. Brand
equity is the value of a brand based on the extent to which its has brand
loyalty, brand name awareness, perceived quality and strong brand
association.

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DEVELOPING A BRAND

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

The Brand Pyramid

Brand Meaning

Brand core

Brand proposition

Brand style

Brand themes

A brand pyramid can help managers plan and analyze a brand’s identity. The
top tier of the pyramid consists of brand core. Brand core values are the
genetic code of the brand and remain the same overtime. Closely related to
these values is the brand proposition : the promise the brand makes to the
consumer. This proposition should be easy to understand and appeal to the
target market. The middle tier represents the brands style or elements of the
brands’ identity that represents the self image of the brand of the brand and
need to be relatively stable over time. The base of the pyramid is formed by the
brand themes which are concerned with the brand currently communicate
through its advertising, packaging, fashion, technological developments and
changing consumer tastes.

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.
The brand pyramid helps managers understand the strengths of the brand and
ensure consistency of its message. This also helps to identify the opportunities
for brand stretching and brand extensions. A brand extension is the use of a
well known brand name on a new product category. We will discuss this in
relation to the DAIRY MILK brand. Brand starching is the use of an established
brand name in unrelated markets or product categories , e.g. using a well
known designer name on cosmetics, clothes, sunglasses etc, such as “John
Rocha Waterford Crystal”.

CADBURY: THE BRAND

The brand CADBURY enjoys a high level of brand equity. Researches show 90%
of the people recognizes the brand while 74% state that when it comes to
chocolate only CADBURY will do.

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

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 Market Share

6%
9%

15% Cadbury
Nestle
70% Britannia
Glaxo Smith

Amitabh Bachchan is Cadbury brand ambassador

Cadbury India Ltd has announced that mega star Amitabh

Bachchan will be the company's new brand ambassador.

He will endorse and promote Cadbury chocolates for a period of

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

Cadbury has launched a strengthened, new 'purity sealed' packaging for

Cadbury Dairy Milk. The new packaging for 13g (Rs 5) is double wrapped for
maximum protection. The chocolate is wrapped in aluminum foil and enclosed
in a poly flow pack, which is completely sealed on all sides. In the second

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phase, the larger Cadbury Dairy Milk packs will come in poly-coated aluminium
foil, which will be heat-sealed and then wrapped in the branded outer
package. Both these steps are a 'first ever' in chocolate packaging in India.

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

Commenting on Amitabh Bachchan as brand ambassador for Cadbury

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

We believe his endorsement of Cadbury Dairy Milk will

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

Amitabh Bachchan said, "Most of you may not know this, but I have
been a brand ambassador for Cadbury for the last 55 years. Only, now it is
official. Bringing smiles, spreading happiness and joy amongst millions of
people in India is what Cadbury and I shall be continuously working towards."

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 The new 13g (Rs 5) Cadbury Dairy Milk packaging is currently available
only in Maharashtra and the national rollout will take place over the next three
weeks. New packaging for the larger bars of Cadbury Dairy Milk, Fruit & Nut,
Crackle, Bournville, Caramello, and Double Deck will be completed in six
weeks.

There are three main brand name strategies:

Family brand names: The parent brand is also known as an “umbrella” brand.
This term is given to product ranges where the family brand name is used for all
products. The advantage of this approach is the positive associations with the
parent brand will transfer to all sub brands. The risk however is that that if one
brand is unsuccessful or falls into disrepute, the reputation of the complete
family of brands can be tarnished. Cadbury is a family brand .

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

Combination brand names: This approach allows for the optional use of the
corporate brand name, while allowing an individual brand to be identified, e.g.
Cadbury Dairy Milk.

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

Recently marketers have identified particularly strong family or corporate

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

Cadbury’s core brand values include "life’s everyday pleasures that make us feel
good and never let us down. As a reward or a pick me up, we consumer s trust
Cadbury chocolate to make us feel better.

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BUILDING A MEGABRAND: CADBURY DAIRY MILK

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

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

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

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

Megabrands provide economies of scale as the fixed costs of maintaining a

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

SCOPE OF THE MEGABRAND

When developing a Megabrand, products are chosen for inclusion on the basis
of their compatibility with the brand’s identity. For Cadbury, the (blocks)
chocolate brands were included as they were perceived as variants of Dairy
Milk. The core proposition of the new Dairy Milk Megabrand could be described
as ‘delivering recipes for lives upbeat occasions - i.e. no matter what your
humor or the occasion, Cadbury Dairy Milk will provide the perfect
accompaniment.
Two products in the Cadbury range created a dilemma: Wispa and Caramel.
Both were standalone products with distinctive identities. Both had a loyal
consumer base high should not be abandoned. To incorporate these products

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into the Dairy Milk range called for a fresh strategy.
Both were blocking chocolate and provided a fit with the Dairy Milk
Megabrand. Their inclusion provided the opportunity to further leverage.
The Dairy Milk Megabrand without alienating loyal consumer s. The new Dairy
Milk Bubbly brand benefited from a new name which better conveys the
distinctive "mouth feel" of Wispa. The new aerated chocolate product now in
square form, which is also easier to break, proved popular. Test showed that
85% of Wispa consumers were likely to buy Dairy Milk showed that 85% of
Wispa consumers were likely to buy Dairy Milk, while 89% of Caramel
customers indicated their likelihood to buy the new Dairy Milk Caramel.

Other range refreshment initiatives involved deleting some products such as

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

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Cadbury Advertising Timeline their products:-

1867

Cadbury Cocoa Essence began advertising. They highlighted the purity of the
product with the slogan ‘Absolutely pure, therefore best’.

1900

Cadbury gained the help of a popular artist Cecil Aldin to create a series of
posters and press adverts to advertise their products.

1920s-30s

Cadbury promoted their products through the war by creating the ‘Chocolate
Mystery Man’ character. He gave out free gifts, but only if he could be found.

1928

Cadbury Dairy Milk poster campaigns began using the iconic ‘glass and half’
slogan and image to stress its high milk content.

1930s

Cadbury’s status as the nation’s favorite brand becomes the most important
feature of the company’s advertising.

1938

150,000 people went on the factory tour every year. It began in 1902 to link
people more closely with Cadbury.

1939

During the 2nd World War Cadbury Dairy Milk disappeared. Cocoa and
chocolate was under government restriction and only rationed chocolate was
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sold.

1951

‘The Bournville Story’, a film promoting Cadbury, was made and shown
cinemas around the country.

1955

Cadbury Drinking Chocolate was one of the very first ads on commercial
television in this year.

1957

Cadbury commissioned thirteen one-minute films shown as TV adverts. These

ads described the harvesting of the Cadbury chocolate ingredient.

1959/60

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

enjoying a bar of chocolate on her own.

1970-1974

Memorable television ads raised the sales of Cadbury Fruit & Nut and Whole
Nuts by 73% .

1983

The Wispa Bar launched including televised ad campaigns featuring comedians

and comic actors talking about the new bar.

1990

Cadbury World opened a £10 million replacement for factory tours. 350,000
people visited in the first year.

1996

Cadbury began a £10 million annual sponsorship of Coronation Street, reaching

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an audience of eighteen million people.

2007

The Cadbury ‘Gorilla’ ad premiered, immediately becoming one of the most

popular adverts in recent year.

2008

Cadbury and Schweppes demerged, splitting its confectionery and drinks

business.

2009

Kraft made a surprise proposal to take Cadbury over for £10.2bn.

CADBURY AND ITS PRODUCTS

Cadbury Boost is a chocolate bar made by Cadbury Ireland in the Republic of

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

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

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

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

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

Cadbury celebrations :

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Cadbury Celebrations was aimed at replacing traditional gifting options like
Mithai and dry- fruits during festive seasons.

Cadbury Celebrations is available in several assortments: An assortment of

chocolates like 5 Star, Perk, Gems, Dairy Milk and Nutties and rich dry fruits
enrobed in Cadbury dairy milk chocolate in 5 variants, Almond magic, raisin
magic, cashew magic, nut butterscotch and caramels.

The super premium Celebrations Rich Dry Fruit Collection which is a festive
offering is an exotic range of chocolate covered dry fruits and nuts in various
flavours and the premium dark chocolate range which is exotic dark chocolate
in luscious flavours.

Cadbury Celebrations has become a popular brand on

occasions such as Diwali, Rakhi, Dussera puja. It is also a
major success as a corporate gifting brand. The
communication is based on the emotional route and the
tag line says "rishte pakne do" which fits with the brand
purpose of strengthening your relationships with
something sweet.

Cadbury five star

Cadbury 5 Star needed to introduce an element of surprise in its eat

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

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Cadbury Perk:

A pretty teenager; a long line, and hunger! Rings a bell? That was how Cadbury
launched its new offering; Cadbury Perk in 1996. With its light chocolate and
wafer construct, Cadbury Perk targeted the casual snacking space that was
dominated primarily by chips & wafers. With a catchy jingle and tongue in
cheek advertising, this 'anytime, anywhere' snack zoomed right into the hearts
of teenagers.

Raageshwari started the trend of advertising that featured mischievous, bubbly

teenagers getting out of their 'stuck and hungry' situations by having a Cadbury
Perk. Cadbury Perk became the new mini snack in town and its proposition
"Thodi si pet pooja" went on to define its role in the category.

As the years progressed, so did the messaging, which changed with changes in
the consumers' way of life. To compliment Cadbury Perk's values, the bubbly
and vivacious Preity Zinta became the new face of Perk with the 'hunger strike'
commercial in the mid 90's.

Cadbury Gems :

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The saying "Good things come in small packets" has been proven right many a
times and it couldn't have been truer for the pretty chocolate buttons called
Gems. Who can forget the unique, brightly colored chocolate buttons with
crispy shells, encased in a pack that's as colorful as the product itself?
Unrivalled in all these years, Cadbury Gems has captured every consumer's
fantasy for almost 4 decades. Little wonder that Cadbury Gems, the brand that
came into India in 1968 is still going strong.

Cadbury Gems brings happiness to the consumer's world. With this promise in
mind, Cadbury Gems has always had 'Masti' as the key proposition in all its
communication. In fact, Cadbury Gems is always a willing ally for pranks and
fun.

Cadbury Bournvita :

Cadbury was incorporated in India on July 19th, 1948 as a private limited

company under the name of Cadbury-Fry (India). Cadbury Bournvita was
launched during the same year.
It is among the oldest brands in the Malt Based Food / Malt Food category with
a rich heritage and has always been known to provide the best nutrition to aid
growth and all round development.

Throughout it's history, Cadbury Bournvita has continuously re-invented itself

in terms of product, packaging, promotion & distribution. The Cadbury lineage
and rich brand heritage has helped the brand maintain its leadership position
and image over the last 50 years.

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INTRODUCING CADBURY AS AN AFTER DINNER SWEET

One of the biggest marketing strategy followed by Cadbury in India was

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

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

Diwali and rakhi packs are designed to give a feel of the festivities going on.
They are exclusively indianised. The chocolate packs contain special
chocoloates such as dry fruits rich chocolates as people normally serve dry
fruits during diwali.

28
INTERSTING FACTS OF CADBURY
1) Cadbury was the first company to include pictures instead of printed text on chocolate
boxes.

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

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

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

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

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

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

29
COMMUNICATING STRATEGY

To promote the new dairy milk megabrand , Cadbury implemented

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

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

The Strategy:

 The task was to get the youth audience to adopt Cadbury Dairy Milk in
the sweet eating or " muh meetha karna" moments
 The campaign of " Jab Pappu Pass Ho jaye, Kuch Meetha Ho jaye"
captured the thought of celebrating a moment of delight with Dairy Milk
 A campaign was built around the idea of how "pappu" celebrated
passing his exams with Dairy Milk
30
The Media:

 A multi-media campaign was launched on TV, Internet, Radio and

Outdoor
 The key was how do own the moment of " pappu passing his exams" in
the media space
 An innovative tie -up with Reliance webworld was executed, wherein
students across 66 examination boards across the company could access
their results on Rworld through their Reliance mobiles. If they passed a
message congratulating them on their moment of delight from Dairy
Milk was displayed.

31
Distribution and Selling strategy:

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

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

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

their cases because the nature of their brands also support this strategy as
they produce products of mass market with as low price as Rs.1 , 2 and
beyond. Because of this pricing strategy their products are equally popular in
rural and urban towns among middle and lower middle class. B.P and Hilal

32
having this advantage enjoy the benefits of a wide-spread distribution network
in 300+ towns and over 350 distributors nation wide (as they have more than
one distributors in some towns). They always try to adopt cost leadership
strategy and generate revenues through high volumes of sales. Frequent
launches, re-launches, re-introduction of old brands with slight modifications,
withdrawals, adjustments in packaging, product designing and even recipe
change are a common phenomenon in the brands of these two major
companies. Contrary to this Cadbury’s , Candyland and Mitchell’s believe on
establishing brands and brand equity and therefore protraction of quality up to
last possible extend remains their top priority.

Until mid 80’s chocolates was supposed to be the product of upper and
upper middle class segment. In 1983 Mitchell’s Jubilee was launched first time
in Pakistani market at Rs.3.50 per bar. Due to its attractive packaging, quality,
affordable price and an intact media support the brand received un-matched
reception and became a success story in Pakistani industry. The brand is still
very popular among masses and available in three different price points at
Rs.2, Rs.5 and Rs.10. In early 2000 Cadbury’s introduced quality products with
affordable price. The launch of Dairy Milk (Rs.5/-), 5 Star (Rs.5/-), Velvet (Rs.5/-
) and Perk (Rs.3) with attractive dispensing-chillers was the turning and
revolutionary point for making chocolates the choice for every one. The role of
Cadbury’s for expansion of chocolate market in Pakistan will always be written
in golden words.

33
SWOT ANALYSIS

Strengths:

 Strong brand names like Cadbury Dairy Milk, Five star and Eclairs.
 Rich product mix.
 Support from the parent Cadbury Schweppes.

Weaknesses:

 Lack of launch of new brands in Chocolates segment.

Opportunities:

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

Threats:

 Stiff competition in Confectionery segment.

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

34
 BUSINESS OVERVIEW
Cadbury India's main source of revenue is its 70% bite of the 23,000 tonnes Indian
chocolate market. It is also present in the malted food market (Bournvita enjoys a 24
percent share of the 20,000 tonnes brown drinks market). Of late, the company has
ventured into the 120,000 tonnes sugar confectionery market ('Googly') and has
gained about 5% market share there. The revenue break up of its different business
segments is as follows:

Despite the fact that Indians have strong affinity for sweets, the size of domestic
confectionery market is small on account of traditional consumer tastes and habits. The
Chocolate market in India is a niche market penetrated largely in urban areas and per capita
consumption is low as compared to those in developed countries of the West. But future
prospects of the chocolate category looks good as the company plans to move into the
arena of snack foods, as it has done in the Western markets.

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

The future mission of Cadbury India is 'A Cadbury in Every Pocket'. The company's

35
business strategy hinges on following for driving its future growth:

 Increase the width of chocolate consumption, through low price point packs and
distribution focus.
 Increase depth of consumption, targeting regular chocolate consumers through
generating impulse and a dominant presence at Point of Sale.

 Maintain image leadership through a superior marketing mix.

 Be a significant player in the gifting segment, through occasion linked gift packs.

 Build critical mass in the sugar business by introducing value-added sugar

confectionery products.

Future revenue growth will be through increasingly higher volumes rather than price
increases. The management believes that price increase can only be a short term objective.
It is volumes, which are very important to achieve the long-term goal of having a wide
consumer base.

The company sees its growth in future in market expansion and new product launches.
Increased reach, new launches, higher marketing spend and intensive promotions - the mix,
Cadbury is looking at to fuel its future growth. The company is also looking for acquisition of
brands, and its huge cash reserves might be utilized for the purpose.

36
INTEGRATED MARKETING COMMUNICATION OF CADBURY

Marketing communication mix elements

Advertising:

“Advertising is the non-personal communication of information usually

paid for and usually persuasive in nature about products, services or ideas by
identified sponsors through the various media” (Bovee, 1992). Television, the
print media and posters have been the main media of communication for
Cadbury’s advertisements. Cadbury’s TV campaign was devised illustrating the
essential consumption occasions. For example, the eight weeks campaign of
Cadbury’s TV advertising to be showed in the evening time was seen by its
target audience and it had reached 85% of the market. In addition, according
to the sources from Cadbury’s website, there are other types of advertising
form being used in Cadbury which is the trade advertising, informative
advertising and the consumer advertising. Cadbury has launched a lot of
periodic trade advertising to monitor quality checks and educate its retailers as
well as promoting sales. For the purpose of inform and remind customers,
Cadbury published an advertising regarding “the facts about Cadbury” in 55
trade publications. Cadbury never ignore the importance of consumer
advertising that people can see many Cadbury’s advertising in newspaper,
magazine, Cadbury’s website and so on. More importance, Cadbury has
launched a response cell through toll free number and an email id to
encourage its customers to give feedback.

Transition of Cadbury ads from older days to present days

1)Old Ads
 Focuses on cricket.

 Spread joy

 Focusing on different professions

37
2) New ads

More trendy

Teenage oriented

More event oriented.

ADVERTISING THEIR PRODUCTS IN DIFFERENT WAYS

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

Thus the advertisement of the same product can be seen simultaneously

at many different places. Cadbury's advertisement can be seen during the late
evening hours when different soap opera are broadcasted. Then on switching
on the laptop to check the emails received during the day, the advertisement
of Cadbury can be seen again, but of course, this time the form of
advertisement i.e. size of advertisement is small, it looks like a teaser and the
medium is different, here internet playing an important role. At weekend
while going through the shopping mall the same advertisement of Cadbury can
38
be seen highlighted in big posters and banners, giving more prominence to
brand name, the product name and in order to attract the customer's
attention, theme of the advertisement also been a part of the poster, which
also gets highlighted.

Different brand names, different products and different ways of

promoting the product.

For Example:-

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

Amongst the various different stalls in the exhibition, one stall was that
of Sun feast biscuits and there were sizable number of customers, who were
keen and eager to know more about Sun feast biscuits and some were even
purchasing the biscuits.

A few days later the same stall was seen at a shopping mall and now
the number of customers were more than before. The reason being
advertisements of Sun feast biscuits been shown on TV. Later on Shah Rukh
was roped in for the advertisement of Sun feast biscuits and now Sun feast is a
known to a large number of customers. Thus initially for any brand name it is
important to gauge and know the customer's reaction, their opinion and views,

39
and then slowly introducing the product in the market for the customers on a
regular basis.

So advertising here also plays a major role, banners and dangles must be
attractive at the time of initial launch of the product.

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

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

Thus customers are always there, each individual customer has his own
purchasing capacity, but when it comes to decision making by the customer
with respect to brand names many times advertising plays an important factor

40
in the process of purchasing the product. This happens at the time when the
customer makes a final decision.

Many brand names re-launch their products in the market depending

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

It is important that the customer knows about different brand names

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

Media Advertising- Use of available media channels, meaning cinema,

TV, radio, press and the internet. In other words the Cadbury should focus on
the media through which it reaches its primary target market-young people of
age 16- 35. During the pre launch campaign Cadbury should not address the
controversy; however it should make it clear that the product is not suitable
for age below 15 and not advisable for pregnant women. This way the
competition will keep their mouth shut and their will be no post launch
negativism in Singapore. This will be done a month before the launch.

Direct marketing:

Direct marketing defines the practice of directly provide the promotional

information to potential customers instead of through a media. Direct
marketing enable firms to build close relationship with their customers and
collect the most relevant customer information. Direct marketing is cheaper
and quick way to get in touch with your target customers and offer more
choices as firms cutout the inter-mediators. For example, telemarketing is a
fast growing form of direct marketing in the recent years. For the purpose of
boosting the awareness and stimulating sales, Cadbury Trebor Bassett had

41
launched a series of direct marketing campaign such as the dairy milk’s door
drop campaign through the leaflet firms. Mailings and inserts to house is being
frequently used in the Cadbury’s direct marketing campaign and those
campaigns have meet the objectives of Cadbury such as increasing the sales
dramatically during the campaign time and it conducted a lot of valid customer
information. For example, Cadbury’s multi-award winning campaign like the
“Real Taste of Life” to capture the child like spontaneity in every adult had
reached extreme success. Moreover, in order to extend the reach of its
popular gorilla campaign and capitalize the target customers of 18-34 years
old, Cadbury had created the Vodafone mobile marketing to deliver extra
content and take the brand awareness and brand identity to a new level
amongst the target audience.

Interactive media :

The interactive media is more effective than traditional media because it

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

42
Sales promotion :

Sales promotion is a common strategy that used to offer extra value or

incentive for the product to the sales force, distributors or ultimate consumers.
Sales promotion can be consumer oriented and trade oriented, businesses
could take one of them or combine two together if require. Samples given,
coupons given, bonus packs and price off deals are very common form of
consumer oriented sales promotion. Trade oriented promotion can be done
through trade allowances, trade shows, cooperative advertising and so on.
Cadbury has launched many sales promotion activities especially the customer
oriented promotion that customers can benefit from it such as the Cadbury
dairy milk buttons had launched the kids campaign in the city centre in April
last year, the target audience of the campaign is parents with kids and the
campaign include treasure hunts, face painting, story telling and biscuit and
button decorating. Furthermore, Cadbury has been launching the yearly
discount selling or price off sales promotion activities during Christmas time in
supermarket for a long time and it does increase sales dramatically every year.

Publicity/public relation :

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

43
chocolate and service for consumers. The Cadbury Nutritional labeling global
standard to explain about consumer health and ingredient are also indicated
on the company website which include the detailed product information and
consumer health issues.

Sponsorships:

Sponsorships is the branding marketing that businesses invest to support

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

Personal selling :

Personal selling is a two ways communication between sellers and buyers

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

44
OTHER MARKETING MIX ELEMENTS OF CADBURY

Brand name and package

Cadbury is the most popular chocolate Brand in New Zealand. Cadbury

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

45
5 P’S Of Cadbury

1 - PRODUCT

The average company will compete for customer by conforming to his

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

I. Chocolate & Confectionary

1) Dairy Milk

2) Fruit & Nut

3) 5 Star

4) Break

5) Perk

6) Gems

7) Éclairs

8) Nutties

9) Temptation

10) Milk Treat

II. Beverages

III. Food Drinks

1) Bourn vita

2) Drinking chocolate

3) Cocoa

46
2 – Pricing
Make no mistake. Second P of marketing is not another name for blindly
lowering prices and relying on this strategy alone to increase sales
dramatically. The strategy used by Cadbury’s is for matching the value that
customer pays to buy the product with the expectation they have about what
the production is worth to them.

Cadbury’s has launched various products which cater to all customer

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

Dairy Milk Rs. 15

Perk Rs. 10

5 Star Rs. 10

Fruit and Nut Rs. 22

Gems Rs. 10

Break Rs. 5

Nutties Rs. 18

Bournvita (500 gm) Rs. 104

Drinking chocolate Rs. 50.

3 - Physical Distribution – “Place”

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

47
The cardinal task before the Indian market in managing is to shoe-horn its
product on retail shelves. Buyers are paying for distribution equity not brand
equity and market shares.

India – 1 billion people, 155 million household has over 4 million retail
outlets in 5351 urban markets and 552725 villages, spread cross 3.28 million
sq. km. television has already primed and population for consumption, and the
marketer who can get to the to the consumer ahead of competition will give a
hard – to – overtake lead. But getting their means managing wildly different
terrains-climate, language, value system, life style, transport and
communication network. And your brand equity isn’t going to help when it
comes to tackling these issues.

Own distribution network consist of clearing and forwarding (C&F)

agents & distribution stockiest. This network of distribution can either contact
wholesalers and which in turn retailers or the distributors can contact to the
retailers directly.

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

Looking at the low penetration of the chocolate, a distribution expansion

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

This increase in distribution is going to be accompanied by reduction in

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

48
4 - Promotion
Effective advertising is rarely hectoring or loudly explicit…. It often both
attracts and generates arm feelings. More often than not, a successful
campaign has a stronger element of the unexpected a quality that good
advertising shares with much worthwhile literature.

To penetrate into the inner recesses of customer memory, communication

must first ensure exposure, grab his attention evoke his comprehension, grab
his acceptance and then extract retention competing with thousands of other
units of communication trying to do the same.

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

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

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

49
The next round of activity will include the wafer-chocolate Perk and the Picnic
bar, which has faced problems with its taste, because of the peanut it contains.
Milk treat has also been launched in a module bar form, just in time of Diwali
gifting market. Éclairs has got potential for much wide distribution, in a small
sweets that airlines, hostels, and up market retail outlet offer to guest and
customers.

Ad spend in 2000 was about 14% of sales and the management said that plans
to maintain as spend at this level in the current year also.

Ad since any discussion today would be incomplete without mention ‘e’ word,
the management plans to tap this new channel of marketing. Beside three
company website (i.e.www.cadburyindia.com, wwww.bourvita.com,
www.cadburygift.com) that the company has launched, it had also entered
into various marketing relationship with other portals, specially targeted
during festivals and events such as Valentines Day, etc….

It’s a combination of stiffing up its key brand, researching and improving the
newer products that haven’t taken off, supported with high ad – spends that
Cadbury hopes will see it emerges stronger after the current slowdown, as well
as expand the market.

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

Positioning is simply concentrating on an idea – or – even a word defines that

company in the mind of the consumer. It is more efficient to market one
successful concept to one large group of people than 50 product or service
ideas to 50 separate group… repositioning is a must when customer attitude
have changed and product have strayed away from the consumer’s long
standing perception of them…

50
Cadbury’s is an anchor in sea of confectionary products. As a variety of
competitive claims assails her senses, today customer uses complicated
decision making process to assess the alternative before making a purchase.
Since Cadbury’s is more clearly associated with a particular set of attributes in
terms of benefits and prices, the quicker becomes her search process.

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Segmentation, Targeting, and Positioning

Segmentation, targeting, and positioning together

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

Segmentation:-

It involves finding out what kinds of consumers with different needs

exist. In the auto market, for example, some consumers demand speed and
performance, while others are much more concerned about roominess and
safety. In general, it holds true that “You can’t be all things to all people,” and
experience has demonstrated that firms that specialize in meeting the needs of
one group of consumers over another tend to be more profitable.

Generically, there are three approaches to marketing. In the

undifferentiated strategy, all consumers are treated as the same, with firms
not making any specific efforts to satisfy particular groups. This may work
when the product is a standard one where one competitor really can’t offer
much that another one can’t. Usually, this is the case only for commodities. In
the concentrated strategy, one firm chooses to focus on one of several
segments that exist while leaving other segments to competitors. For

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example, Southwest Airlines focuses on price sensitive consumers who will
forego meals and assigned seating for low prices. In contrast, most airlines
follow the differentiated strategy: They offer high priced tickets to those who
are inflexible in that they cannot tell in advance when they need to fly and find
it impractical to stay over a Saturday. These travelers—usually business
travelers—pay high fares but can only fill the planes up partially.

Targeting:-

In the next step, we decide to target one or more segments. Our choice
should generally depend on several factors. First, how well are existing
segments served by other manufacturers? It will be more difficult to appeal to
a segment that is already well served than to one whose needs are not
currently being served well. Secondly, how large is the segment, and how can
we expect it to grow? (Note that a downside to a large, rapidly growing
segment is that it tends to attract competition). Thirdly, do we have strengths
as a company that will help us appeal particularly to one group of consumers?
Firms may already have an established reputation. While McDonald’s has a
great reputation for fast, consistent quality, family friendly food, it would be
difficult to convince consumers that McDonald’s now offers gourmet food.
Thus, McD’s would probably be better off targeting families in search of
consistent quality food in nice, clean restaurants.

Positioning:-

The term “positioning” is widely used within the marketing and

advertising communities today, and its meaning has expanded beyond the
narrow definitions of Trout and Ries. Positioning is often used nowadays as a
broad synonym for marketing strategy. However, the terms “positioning” and

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“marketing strategy” should not be used interchangeably. Rather, positioning
should be thought of as an element of strategy, a component of strategy, not
as the strategy itself.

The term “positioning” is, and should be, intimately connected to the
concept of “target market.” That is, a brand’s positioning defines the target
audience. For example, an airline might position itself against other airlines,
which defines the target audience as airline travelers. Or, it might position
itself against all modes of transportation between two destinations, which
then defines the target audience as all travelers between those two markets.
The second positioning reaches out to a much larger target audience.

Segmentation of Cadbury:

Right now Cadbury’s new advertisement campaign is doing the rounds

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

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

The story starts with “Once upon a time in 1948…” when Cadbury
entered the Indian market. It originated from a town in the United Kingdom,
Bournville (also the name of its recently launched high-end chocolate) in 1905.

As the Cadbury’s official web site suggests, its journey in India has been
an eventful one. In the early 1990s, it tried to cater to the sweet tooth of the

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children. Those days they steered the market and took control over the
company’s major market share. However, the strategy changed by letting out
the secret that “everyone has a child inside “ and thus everyone craves for the
taste of chocolate. Cadbury strategies went through a considerable change. It
now catered from children to adults and from chocolate to mithai. As the
tagline goes “Khane walon ko kahne ka bahana chahiye”.

The hole-in-one for the company was when it identified sweets to be a

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

Meetha did to Cadbury’s what thanda had done for Coco-Cola. Both
helped them crawl their ways through into hearts of the rural population of
the country, which had an untapped and astounding potential.

The advertisement campaign of Amitabh Bachchan, dressed up as a

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

Later came the campaigns of “Pappu paas ho gaya” acknowledged the

market potential for college-going youth. The treats for passing exams were
now a Cadbury instead of a mithai.With Kuch Meetha Ho Jaye, we knew
Cadbury’s was now a desert craving as well as a popular gift-item for festivals
such as Raksha Bandhan and Diwali. Cadbury’s also diversified its range of
products with Wowie(with Disney characters for kids),Crackle, Fruit and
Nut(variations of the Dairy Milk),Bournvita(health drink)Deserts,Perk(wafer
ingredient) and éclairs(toffee segment).

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Cadbury’s today holds 30 per cent markets share in the confectionaries
industry and sells around 1 million bars a day.

Targeting of Cadbury

Cadbury is looking to attract millions of new customers by shifting its strategy

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

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

Positioning of Cadbury

Cadbury India has unveiled a new campaign that continues with the
brand's 'Kucch Meetha Ho Jaye' positioning. Created by Ogilvy & Mather, the
campaign revolves around the theme of 'Pay Day', which is associated with
happiness by most people. Brand positioning is the aspect of the brand actively
communicated to the target audience, specifically, its competitive advantage,
values and imagery. It is strongly related to the perception and image of the
product. When devising a positioning strategy for a product, marketers must
establish a unique and distinctive image of that product in the mind of the
consumer. This will differentiate a company’s product from its competitors.

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OVERCOMING THE WORM CRISIS USING IMC
The discovery of worms in some samples of Cadbury’s Chocolate in early
October 2003 created one of the biggest controversies in India against a Multi
National reputed for being a benchmark of QUALITY.

The state Food and Drug Administration has ordered seizure of Cadbury's Dairy
Milk chocolates from all over Maharashtra after worms were found in two of
them in Mumbai.

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

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

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

The controversy created an deep adverse impact on the company with their
sales not only drastically dipping down, but at the same time allowing the
competitors to establish their foothold and taking maximum advantage of
Cadbury’s misfortune.

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The controversy, and the adverse publicity received in several countries, set
back its plan of outsourcing model which would have resulted in significant
revenue generation, several months back.

ROLE OF THE PUBLIC RELATIONS

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

organizations.

PUBLIC RELATIONS FORM AN INDISPENSABLE PART OF ANY ORGANISTION.

Public relations include ongoing activities to ensure the company has a strong
public image.

Public relations activities include helping the public to understand the

company and its products.

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

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

It is not a part time job for a Marketing Services Manager. If it is to work and
serve the larger objective, the PR department should be independent, servicing
others like production, personnel, marketing, finance, corporate agendas.
Therefore, the PR Head should be part of the top management team
reporting directly to the CEO. He also needs to share everyone's confidences.

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PR RESCUES CADBURY

The PR department of Cadbury’s played a very effective role in managing the

reputation and keeping up the goodwill of the company.

After being struck with the Worm Controversy it was not possible to create a
very good impact on consumers who trusted the company the most. But
through the efforts and a good PR team Cadbury’s managed to wriggle itself
out of the controversy with a clean chit.

STEPS TAKEN TO SOLVE THE CONTROVERSY

1. NOT DENYING THE FACT

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

That last November Bharat Puri, Cadbury's mild-mannered MD, went to media
offices around the country meeting reporters, answering mostly hostile queries
and patiently explaining the company's stand on the issue.

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

As a result Cadbury improved the packaging and paid more attention to the
way its chocolates were stored by nearly 6,50,000 retailers across the country.

2. TAKING PRECAUTIONS

'Project Vishwas' - “Steps to ensure quality & regain the confidence”

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Following the controversy over infestation in its chocolates, Cadbury India Ltd
unveiled 'Project Vishwas', a plan involving distribution and retail channels to
ensure the quality of its products.

The Vishwas programme was intended to build awareness among retailers on

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

"What you see now is the most over-engineered packaging for a Dairy Milk
chocolate anywhere in the world. Even our festival packs come with a tamper-
proof outer sealing and improved packaging inside," explains Purohit.

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

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

The company's team of quality control managers, along with around 300 sales
staff, checked over 50,000 retail outlets in Maharashtra and replaced all
questionable stocks with immediate effect. The company also carried out
quality checks at its facilities as well as its carrying and forwarding warehouses
and distributor warehouses and found products free of infestation.

3. GAINING BACK TRUST

The Big B promoted the Big C in the chocolate business - Cadbury in India.
Indian cine superstar Amitabh Bachchan has signed on to become the brand
ambassador of the chocolate major for two years.

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The Big „B‟ FACTOR

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

With the help of its Public Relations Dept. and advertising agency O&M, it
created a campaign which aimed for both rational and emotional appeal.

One of the ads showed Bachhan visiting a Cadbury plant, inspecting the
systems and processes and finally consuming a bar of chocolate to be
convinced that there's nothing wrong with the brand.

Addressing his audience, Mr. Bachchan says, "Mujhe aapse kuch kehna hai, jis
kaam mein manushya ki antar aatma uske saath na ho, uss kaam ko karne se
usse sab kuch mil sakta hai... man ki shaanti nahin mil sakti. Isliye jab Cadbury
walon ne mujhe kaha ki unki baat main aap tak pahunchaoon, to pachpan
saalon se Cadbury khaane wala main bhi thoda sa hitchkichaya.... ...Maine
unse ek sawaal poocha, ki kya iske baad main chain ki neend so paoonga ya
nahin, to jawaab mein voh mujhe apni factory le gaye."

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

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

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

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

It appears that company is likely to play the value game to expand the market
encouraged by the recent success of its low priced ‘value for many packs’.

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

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New channel of marketing such as gifting and child connectivity and low end
value for money product for expanding the consumer base have been
identified.

In terms of manufacturing management focus is on optimizing manufacturing

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

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

• Use of it to improve logistic and distribution competitiveness.

• Utilizing mass media to create and maintain brands.

• Expand the consumer base. The company has added 8 million new consumer
in the current year and how has consumer base of 60 million although the
growth in absolute numbers is lower than targeted, the company has been
able to increase the width of its consumer base through launch of low priced
products.

• Improving distribution quality by addressing issues of product stability by

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

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

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

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CORPORATE SOCIAL RESPONSIBILITY
Cadbury Schweppes approach to corporate social responsibility (CSR) stems
from its founders philosophy of fair treatment of employees and philanthropy
in the community. Cadburys started life in beverages, as a tea and coffee
business promoting tea and cocoa as an alternative to alcohol for workers.
When the Cadbury family established the Bourneville factory in 1879, they
believed that profitable business required healthy communities. The family
had a Quaker background and social benefit was a value they upheld. “Today
our CSR is still about this – promoting prosperous, sustainable, educated and
inclusive communities because they are good for business,” said Neil Makin,
External Affairs Director.

In 2001 the company developed a five-year programme to review, re-

articulate, update and embed its CSR commitments within the company. The
programme is based on five areas: human rights and employment standards;
ethical sourcing and procurement; marketing, food and consumer issues;
environment, health and safety; and community investment.

The company’s approach to adding value to the community centres around

three approaches:

 Money – providing specific contributions, for example sponsorship of

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

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