Life cycle of Cadbury dairy milk

1.1 Company profile:

Cadbury chocolates was started in Birmingham in 1824 by

JohnCadbury.Chocolate in those days was a very elitist product. Cadbury Dairy
Milk came up with the mix of milk and chocolate tray which is pretty much how
the product still is. There has been no drastic change in the recipe of the product
but the packaging and the representation and prominence of the ‘glass and half of
milk’ logo has changed over a period of time.

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

1.2 A Timeline:

 1904 A new recipe is perfected by George Cadbury for milk chocolate.

 1905 Cadbury launches Dairy Milk onto the market – a new milk chocolate
that contains far more milk than anything previously tasted and with a
unique creamy taste.

 1913 Dairy Milk becomes Cadbury’s best selling line.

  Mid 1920s Dairy Milk becomes UK brand leader – a position it still enjoys
today.

 1928 Fruit & Nut is introduced as a variation of Dairy Milk. The “glass and
a half” advertising slogan is introduced.

 1933 WholeNut is added to the Dairy Milk family.

 1948 Cadbury Dairy Milk is sold in India

 1998 Dairy Milk is re-launched with the new and modern pack design, but
its recipe and unique taste are still very similar to the original recipe.

 2005 Cadbury Dairy Milk celebrates its 100th birthday.

1.3 Brand Identity :

 Kapferer’s model

1.4 Stage in the Product Life Cycle:

Cadbury Dairy Milk is in the maturity stage of the product Life cycle. It
currently has a market share of 70% in the chocolate market and is way ahead of
its competitors. There is a high degree of brand awareness. The colour purple and
the ‘glass and half full’ logo is amongst the most recognised logos and the
association of the two with Cadbury Dairy Milk is synonymous.
1.5 Market Scenario/Challenges:

According to AC Nielson study of 2007.

1.6 Facts & Figures:

The Indian Chocolate market is estimated to beat around 1500crores.It is

growing at the rate of 18-20% per annum With 72% of the market share in India,
Cadbury is the market leader.

1.7 Companies:

 The 2 main competitors in the Indian market that Cadbury faces any
competition from are Nestle and Amul.

 There are several new and local brands like Candico, Sweet World etc.
which are trying to make its presence felt.

1.8 Consumer Trends:

The Mithaai or sweet has been the tradition in India so far. Chocolates are
noow trying to break into that league and hence faces stiff competition more from
this product category than its immediate competitors.Chocolates are more of an
impulse buy.Consumers are preferring chocolates to Mithaai because of proper
packaging, longer shelf life, mid-range pricing and convenience.Consumers have
started showing interest in not just milk chocolates but other varieties like Dark
Chocolate etc.

One of the major challenges that Cadbury Dairy Milk faces is a decline in sales due
to new variants being introduced in the market by other brands which could result
in the product moving from maturity to decline stage. Another major challenge
comes from a different product category altogether which is the Indian Sweets or
Mithaai.

1.9 Taken by brand at each stage- at a communication and product

level

1.9.1 Introduction:

Cadbury Dairy Milk advertising has always depicted a rich tapestry of

human emotions and relationships. In the 1980s, it was positioned as ‘the perfect
expression of love’, captured in memorable copy: ‘sometimes Cadbury can say it
better than words’. During the early1990s, Cadbury Dairy Milk emphasised its
international identity, communicating that it was the ‘real taste of chocolate’. In
1994 came the path-breaking ‘real taste of life’ campaign. The ad featuring a
woman running on the cricket field celebrating the victory is still strongly etched in
our mind even today. This campaign created a dramatic shift in the way chocolates
were perceived. Cadbury Dairy Milk has increasingly become trapped as a reward
or bribe for children and this campaign unshackled the brand by re-positioning it to
the ‘free-child’ in every adult. Cadbury Dairy Milk redefined itself as the perfect
expression of spontaneous, shared good feelings, providing the ‘real taste of life’
experience. The strategy paid off: Brand Cadbury grew by over 50% in sales
volumes. (Super brands)

1.9.2 Growth:

Then in 1998, the next stage of growth for the brand dealt with popularising
consumption in a social context, especially in more traditional settings like
weddings. With the campaign ‘Khaanein waallon ko khaanein ka bahana chahiye’
featuring Cyrus Broacha, Cadbury Dairy Milk aimed to substantially increase
penetration levels. The campaign was launched in tandem with the award winning
‘Kuchh khaas hai…’campaign and the media strategy was to let the two co-exist
towards a common vision: ‘A Cadbury in every pocket’. The brand penetrated into
smaller towns and sales volumes grew by 40% (Source: Internal Sales Data).
(Super brands)

1.9.3 Crisis Management:

The worm controversy resulted in Cadbury’s brand image taking a beating.

They had to recall a batch of chocolates. Instead of taking any short term measures,
Cadbury used this opportunity to take action and rebuild the trust of people. They
launched a project ‘Vishwas’ which educated retailers and wholesalers on storage
and other aspects apart from educating consumers.
The other major step was to change the packaging. The company’s repackaging
exercise, which used a combination of packaging technologies, was unprecedented
in the category. With the redesigned packaging in place, the company decided to
communicate the measures it had taken to safeguard quality standards. To add
credibility to its pitch, Cadbury took recourse to Amitabh Bachchan’s deep
baritone. This was the first time that a celebrity was used to endorse Cadbury Dairy
Milk. The commercial did wonders to consumer confidence.

A series of ads with Bachchan including “Pappu Paas ho Gaya” to “Miss

Palampur” brought back the lost credibility of the people. With Bachchan they also
launched their new positioning of “Kuch Meetha Ho Jaaye” bringing in the
tradition of celebrating a joyous occasion in India with sweets and now Cadbury
Dairy Milk in particular.

1.9.4 Maturity:

The focus for a period shifted to taking the concept of “Kuch Meetha Ho
Jaaye” further. The “Pehli Tareekh Hai” campaigns talked about the importance of
having Dairy Milk and celebrating on getting your pay on pay-day. The ads had a
very retro-feel to it and did click with the audience. But, it is the recent string of
“Shubh Aarambh” ads that have brought back the old charm of Cadbury Dairy
Milk with its very interesting insight of mixing the traditional with the new age.

1.10 Summary:
 Cadbury Dairy Milk has adapted itself to the Indian market quite
impressively. From making a sweet eating nation to switch to chocolates to
becoming the market leader, Cadbury Dairy Milk has done it all because of the
emotional connect it established with the consumers. Its communication also
always focused on the emotional aspects and feelings of life apart from
spontaneity. Its communication has always showcased its values and personality. In
my opinion, the ‘Kuch Meetha Ho Jaaye” concept is a goldmine which can be used
in a variety of ways in a country like India.

1.11 Situation of current market:

Cadbury company is second more demanding company of chocolate in the

market. It has largest share price in Indian market that is near about 75 percent of
total market share, which indicate customers attraction in its product which easily
available in the market. The idea behind this situation is its affordable price of
product with more customer satisfaction as compare with other competitor like
‘AMUL, NESTLE’ etc.,

1.12 Analyse of opportunity and issue:

In the Indian market Cadbury company has following SWOT (strength, weakness,
opportunity, and threats) that analysis opportunity;

1.13 Strength:
 High market share value due to large business in Indian market as well as
international market.Strong brand reputation in the Indian market, so company has
good position in the market.Cadbury’s target market is large which is very wide in
its same field market.

1.14 Weakness:

Fears about product demand fulfil or satisfy because it has large target
market population.Less growth rate due to less production capacity that means not
able to match rate of demand of product in the market.Delay in new quality
product launch in the market due to this sometime get negative impact in the
market.

1.15 Opportunity:

Cadbury company is well stabilised company, so it has opportunity to

develop its product with less competitiveness whereas, other new company can
face more difficulty with more competitive for brand and product
establishment.Cadbury company has tremendous marketing strategy in Indian
market so by which it can use for develop new product with accreting growth rate.

1.16 Threats:

 Threat during new brand launch with same product, in the market.

 Threat with increasing market competition within same field.

 Threat with change in government rules and regulation for the company.
1.17 Objective of plan:

Cadbury company has main objective to launch successful product in the

market with specified time period. It apply effective marketing strategy to perform
target objective plan, apart from this, it also apply ecommerce strategy for
analyzing product performance growth or financial condition of the market.
Cadbury company aware about marketing condition regarding their product and
always try to give more quality product in the market and get more financial
budget.

1.18 Marketing strategy:

Marketing strategy is very much related with marketing objective.

Marketing strategy is basically describe logic (thinking) of manager by which
company create and achieve customer and relationships respectively. This is very
useful for achieving accomplish target market. Below are some marketing strategy
points which is use by the Cadbury company.

1.20 Customer satisfaction:

Cadbury Company has first motive of customer satisfaction by their product

that are related with best quality, design of product and cost (high or low) of
product depend upon consumer.
1.21 Market categories (segmentation) and targeting:

Cadbury is confectionaries company so its market segment basically realize

on children, adult and on female population due to wide consumption source of
chocolate. It has also target to expand market in rural areas. There are different
types of customer and their different need. So Cadbury Company classified the
customers need or requirement on the basis of different chocolate category like
geographic ( moulded milk, wafer category) and demographic that is given below.

1.22 Demographics:

 classify on the basis of domestic (Indian city) as well as international.

 Platinum – Tier I cities such as Delhi, Mumbai, Bangalore and also in

International market.

 Gold – Tier II cities such as Pune, Coimbatore also in international market.

 Silver – Tier III cities

 Rest of urban India

1.23 Market position:

The position based on customer need and expectations. Cadbury prefer ladder
theory for determine position in the market and identify customer need and then
they will target. The customer need is divided into three parts.

 The Base – Focus on the product attributes.

  The Middle – Focus on the functional benefits of the product.

 The Upper – Focus on the emotional benefit obtained from using the
product.

1.24 Financial condition:

Before start the new project, every organisation keep focus on budget. Now,
this time Cadbury market is very strong (market share value & customer support)
as compare with any other which has same field competitor. In order to improve
sales Cadbury is currently focusing its marketing efforts mainly on the Titanium
and Gold cities where they hold a market share of 60%-70 %.

1.25 Implementation control of Cadbury market:

During implementation of project Cadbury company recommend some

control to achieve successful market and keep company more demanding. It take 4
to 5 months time duration for monitoring performance of its product in the market.
It always keep focus on profits and effective solution of it. Cadbury company has
wide range of distribution centre so it is able to increase its efficiency during new
product launch or any other occasions. It modified and control its product and
product manufacturing process as per demand by market and end customers.

1.26 Distribution / Logistics:

Cadbury also has one of the largest logistic networks distribution set up in
India covering each and every state. Cadbury distributes its products through 20
depots and 4 C & F agents and a network of 5500 stockists. Cadbury covers almost
40% of retail chocolate in India. One of the largest chocolate distribution setup in
India. Covering the entire geography of the country.

1.27 Competition/ competitors:

In India Cadbury has many comparator like Nestle, Amul, Parle etc. they are
also good in the market and give fight competition in the market. Cadbury industry
has advantage in brand vale, valuable market share and well developed products.
Cadbury competition can happen at different “levels.” At the brand level, two firms
compete in providing a very similar product or service.

1.28 Political & Legal support:

Cadbury industry have vital link with leaders and politician to get more
advantage in business market environment, they have a strong economic rate in
domestic market due to government reorganisation. for this sometime get more
benefits that the industry get more enhance profits.Cadbury firm always follow the
rules of government and maintain, all requirement like plantation in campus and
many more and implement new law by the courts.

1.29 Conclusion:
 Cadbury dairy milk has adapted itself to the indian market quite
impressively. Different promotional strategies in different stage. With its latest
product dairy milk silk , it is holding more than 70% of the market share in india .
Cadbury dairy milk has done it all because of the emotional connect it established
with the consumers . its communication has always showcased its values and
personality.

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