Marketing Plan

For

Cadbury Dairy Milk

TEAM
Work Distribution:

1) Executive Summary – Lourdes Soares

2) Situation Analysis – Ajay Kumar , Dilip Mathew & Srikanth Erraballi
3) Market Opportunity - Ajay Kumar, Dilip Mathew & Srikanth Erraballi
4) Objectives – Harmanpreet Kaur
5) Marketing Strategy – Zoeb Eisa
6) Segmentation &Target Markets – Zoeb Eisa
7) Positioning – Zoeb Eisa
8) Marketing Mix – Nikhil Chitalia
9) Review and Control – Lourdes Soares
10) Marketing Organization – Lourdes Soares
11) Contingency Plan – Rabisankar Mahali
Contents:

1) Executive Summary
2) Situation Analysis
3) Market Opportunity
4) Objectives
5) Marketing Strategy
6) Target Markets
7) Positioning
8) Marketing Mix
9) Review and Control
10)Marketing Organization
11)Contingency Plan
1. Executive Summary
Chocolate has been around right from 1100 BC where the Aztecs used it as a beverage and
were consumed only by the elite. Now-a-days it‟s purchased and consumed by all sections of
the society especially children. The chocolate market is the second largest in the
confectionary market contributing to 43.9% of the total confectionary market.

Cadbury is a confectionery company started by John Cadbury in 1824 who developed an

emulsification process to make solid chocolate, creating the modern chocolate bar. Cadbury
is now owned by Kraft Foods and is the industry's second-largest globally after Mars,
Incorporated. With its headquarters in Uxbridge, London, England, the company operates in
more than 50 countries worldwide.
The company was known as Cadbury Schweppes plc from 1969–2008 until its demerger, in
which its global confectionery business was separated from its US beverage unit (now called
"Dr Pepper Snapple Group").

Cadbury India was established in 1948 and is India‟s leading chocolate manufacturer.
Cadbury India is a subsidiary of Cadbury Schweppes a global confectionary and beverage
company. The company enjoys a market share in India of close to 60% in terms of value of
which close to half is contributed by the company‟s leading brand „Dairy Milk‟.

The objective of our marketing plan is to summarize what we have learned about Cadbury in
the marketplace and also give tactical guidelines and financial allocations for the company‟s
success. The plan contains not only the marketing mix and the strategy but also in detail the
various tactics the company has adopted to develop the market.

An analysis done by looking at the market trends showed that Cadbury Dairy Milk was the
most preferred brand amongst the consumers for both, gifting and self-consumption purposes.
Since the nature of the purchase is still largely impulse based the company must focus on
effective in-store promotion and must also have attractive packaging to attract children.
However, we recommend launching additional variants to cater to different tastes of the
consumer. With health coming into major focus in recent times the calorie content of each bar
should be highlighted and research and development should be done in order to cater to these
needs without compromising on quality and taste due.

In order to protect its brand image as a high quality chocolate manufacturer the company
should introduce its premium range of chocolates with the same recipe of the original „Dairy
Milk‟ but with a slight deviation maybe texture to packaging, so that it can maintain its brand
image in the face of foreign competition especially for gifting purposes.
2. Situation Analysis
Cadbury is the market leader in the Indian market. Cadbury is the fourth largest supplier of
chocolate and other sugar confectionaries in the market. In India it has the largest share of the
market with more than 70 percent of the market share.

The following is the SWOT analysis for the company in the Indian market:

 Strengths

The company has an already large established business in the Indian market. Since 1824, the
company has established itself as a world leader in the confectionary market. It has operated
in India since 1948. In India it has about 70% of the confectionary market. In line with its
vision, the company has been striving to be the world leader in the confectionary industry.
Through innovation and strategic marketing, the company has acquired about 10% of the
world confectionary market.

The company has good market reputation. With strong brands in the market, the company is
well positioned in the market. In the Indian market Cadburys has strived to build a good
market reputation. This has worked positively for its products. It is on this good reputation
that the market can embark on introducing the new brand in the market. Cadbury India was
ranked the 5th most respected Indian company by Business world magazine in 2007.

The target market is also quite large. With the female population marketing more than 56
percent of the Indian population, there is a wide target market for the product. The Indian
chocolate market has been recording growth in the recent past and there are future prospects
of growth. Therefore the target market is slowly expanding.

 Weakness

The target population is quiet large and there are fears the demand for the product may outdo
the capacity of the company to satisfy the demands of the market. It is still not clearly
established the rate of growth of the product in the market but there are expectation that the
product will record a high growth rate. This means that the company will need to increase its
production capacity in order to match the rate of growth of the market.

The company has not been able to establish a distribution network in the country that matches
the demands of the market. In this case the company has not established a distribution
network to the interior due to infrastructural development issues.

Banking on the success of the other brands in the market may have negative effects on the
introduction of the new brand in the market since the products will be targeting different
markets.
  Opportunities

There company is introducing the brand in a less competitive market. This is a unique
opportunity for the company. A more competitive market becomes difficult to introduce a
new brand because there are already other companies which are likely to bring in
competition. The company can introduce the product in the market in unique way. With the
growing importance of beauty shows, the company can host beauty competition in order to
help the target market identify with the product. This will introduce the product in the market
in unique way. The company can also host other events like ports or engage in corporate
social responsibility activities like girl child education to help the target market identify with
the product more.

The company can use a wide range of marketing strategies which will lead to the overall
growth of the product in the market. The Indian advertising market has been growing at a
rapid rate which means there will be an array of opportunities for the growth of the market.
There are many advertising strategies for the company in the Indian market.

 Threats

There is threat of entry of other products in the market. In this case there are threats of entry
of new products in the market which will increase the level of competition in the market.
There are other companies which are likely to introduce the same products in the market once
there is success of the initial product

There is a threat of change of the current external environment which is likely to alter the
nature of the market. For example change in the taxing regime, government laws regulating
the industry, and other factors which are likely to impact negatively on the industry.

Company analysis
(i) Strengths

Cadburys India is the market leader in the confectionary market. For more that six decade,
the company has established a market portfolio that has positioned it well in the
confectionary industry. Currently the company has a market share of more than 70 percent of
the chocolate market.

The company has a worldwide operation. This gives the company a chance to transfer
products which have been successful in one market to the other emerging market. The
company operates in more than 200 countries in the world with the main markets in USA,
UK, Ireland, South African and with other operator in emerging market like India, China,
Thailand, and others. Cadbury India has five companies owned manufacturing plants in
locate at Thane, Induri ad Malanpur, Bangalore and Baddi. It has four sales offices in New
Delhi, Mumbai, Kolkota, and in Chennai.

Cadbury India has good human resource policies which have ensured the growth of the
company in a recent 2006 survey Cadbury India was ranked the 7th overall greatest place to
work and was also ranked number 1 in FMCG Company in India by the Great Place to Work
Institute. The company has been improving its ranking in the recent past for the last 10 years.
All over the world the company employs more than 60,000 employees operating in more than
200 countries.

One of the most important factors in the overall growth of the company has been heavy
investment in technology. Through innovation the company has placed new recipes in the
market which ensures reduced cost of production. Investment in the new technology has
ensured the growth of the company in the market. With a worldwide operation the company
has been investing in technology which is first tried in its main market and then deployed to
the emerging markets like India.

The company has a strong management team with a strong centralized management structure.
His ensure that there is standardization of operations procedures in all its plants. The
company also has put in place effective corporate management structures which ensure
timely disclosure of information on the performance of the company. This is important for
the overall financial management of the company.

(ii) Weakness

The company has not been able to standardize its operation in all the countries where it
operates. For example while the company has a strong market share in India and other
emerging market, its market share in the established market like US market has been
declining. Its US market share is not strong enough to guarantee its market leadership.

There has been declining market demand for chocolates with the emerging health concerns.
The company has not done enough to defend its products in the market or put in the market
other products which take care of the health concerns of the customers.

Technology competency
As has been listed one of the most important growth factor behind the company success n the
emerging market has been the use of modern technology which gives it an upper hand
compared to other companies. The company has been testing new technology in the
established or in its main market and then transferring the most appropriate technology to the
emerging market. This has been an important growth factor in the overall performance of the
company. In line with the growth of e-commerce, the company has been built its site from
which customer can access all the needed information about t operation of the company. The
company site it the main communication centre between the company and other stakeholders.

Macro level market (Industry) analysis

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.

The total confectionary market is valued at about 41 billion Indian Rupees. It has a total
turnover of about 223500 tons 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.

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 lozenes are
at par accounting for 13 percent of the market share each. 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.

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 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.

Product analysis
Cadbury India specializes in production of confectionaries. In this category the company
produces a number of products including Dairy Milk, Perk, Gems, 5 Star, Celebrations,
Bytes, Dairy Milk Éclairs, Éclairs Crunch, Mr. Pops, and Halls brands. In the milk beverage
section, the company produces Cadbury‟s Bournvitta and Cadbury Bournvitta 5 star Magic.
This marketing plan is planning to market Cadbury white chocolate in the market. It is in the
category of chocolates and it is expected to target the adult population. The product is made
in the same process as dark chocolate but the colour is modified so it has the same natural
taste as dark chocolate although it has been described creamier and tasty compared to other
chocolates.

Major competitors
There are no many competitors in the confectionary industry that Cadbury is competing with.
Cadbury is a market leader in the industry. The other competitors are small compared to
Cadbury and therefore the level of competition is expected to be a bit low.
3. Market Opportunities and Issues

Current opportunities
In the confectionary market, there are a lot of opportunities that currently exist. There is a
large female market segment that has not been tapped. Market data shows a high
consumption of chocolate in the urban market it still remains low in the rural market. There is
a large rural market that has not been catered for. These marketing strategies will therefore
look on tapping into the urban and rural female market. Internet usage in India has been
growing at a very high rate and majority of the urban population is connected to the interest.
Since there is not company that is currently using online sales, the company will look into
using this strategy to boosts its sales. Improving distribution quality by addressing the issues
of product stability by installation of visi coolers at several outlets.

Potential future opportunities

In the future the company expects the chocolate and the general confectionary market to grow
in India. Therefore it is looking at introducing other confectionary products targeting the
same market. In the future the company will offer its other products online to the specifically
targeted market.

ISSUES

Kraft‟s recent acquisition of Cadbury poses a major marketing issue as Kraft looks to
immigrate some of the UK based confectioners‟ products into the U.S. market to improve its
market share. Over the past few months there have been several strong, harsh attempts by
both Kraft and Hershey to acquire Cadbury which has caused negative publicity and protests
by loyal Cadbury fans. Bringing Cadbury and its brands into the U.S. while maintaining the
company‟s presence overseas will need to be done carefully to preserve the global brand and
its image. Aside from making Kraft the world‟s largest confectioner, Cadbury will give Kraft
strength through vast product expansion (for instance in the chewing-gum market in which
Cadbury currently has a stronghold). Should Kraft bring in and actively market other
Cadbury products such as its chocolate bars and various novelty candies, the company will
undoubtedly face intense competition from major U.S. brands such as Hershey, Mars and
Nestle. Some of the direct marketing problems that will need to be addressed are:

• How Cadbury will compete with other brands in the market given that consumers are used
to and typically associate with American brands.

• Which segment of the market to appeal to as well as what kind of image Cadbury should
portray in the US market(such as one of Celebration & Joy, Everyday Chocolate, Indulgence
and so on)
• How Cadbury products will be advertised and what kinds of promotions will be used to
build brand recognition

• How to prevent cannibalization of Kraft‟s current brands, for instance its SwissMilka
Chocolate Although many marketing issues exist, we have chosen to focus on how Kraft
should introduce Cadbury products into the U.S. marketplace.

HEALTH ISSUES

Consumers have recently become more health conscious, which could pose a major challenge
for Kraft when bringing in more Cadbury products (or trying to improve the market share of
its existing products). When going through the problem recognition stage, consumers often
notice a discrepancy between their actual and ideal states.

Additionally, consumers often believe they weigh more than they should and would ideally
like to be more fit. By advertising how Cadbury products would help them achieve their ideal
states, Kraft would be able to successfully appeal to this health-conscious market. Products
like Green & Black's Organic Chocolate) have high potential for success as they have
nutritional benefit and could be popular with health-conscious consumers and children.
Western Values In introducing Cadbury products into the United States, the company must be
mindful and aware of key Western values: Materialism, Home, Work and Play,
Individualism, Family and Children, Health, Hedonism, Youth, Authenticity, Environment,
and Technology. More specifically, in paying attention to values like Health and
Authenticity, Cadbury maybe be able to position their offerings so that Americans will form
positive consumer attitudes towards their products. The hope is that this will ultimately
increase adoption rates of their new offerings.

CONSUMER BEHAVIOR ISSUES

Some of the consumer behavioural issues we managed to analyse are

• Brand recognition in a competitive marketplace

• Changing knowledge content and knowledge structure of existing brands and products
• Potential miscategorization of new offerings
• Achieving and maintaining positive consumer attitudes relative to new products
• Understanding how consumers use certain cognitive decision making models when making
their purchases
4. Objectives

In order to increase sales Cadburys needs to undertake a range of marketing activities before
deciding upon the best way to encourage the purchase of its product. When identifying the
basic principals which Cadburys must apply to its marketing will be its basic objectives
because all business must have objectives it allows them to increase sales and make profit.
Corporate aims are the long term intentions of a business, where as corporate objectives are
the specific targets required to achieve the aims. The common aim and objectives of the
corporation such as Cadbury includes the following:

1. Survival- Sustain market share over the year through product innovations in product
development, packaging.

2. Profit maximisation- Grow shareholder value over the long term and which is often taken
to be the reason why firm exists.

3. Growth-Includes Cadbury selling new products or expanding overseas.

4. Diversification- Spreading of business risks by reducing dependence on one product.

5. Sales maximisation- Increasing of sales.

6. Improving the product image-Includes creating a new logo or launching a new brand of
product and creating more attractive packaging.
5. Marketing Strategy
Cadbury‟s strategy to attract consumers is unique. Instead of focusing on the product, it seeks
to tap into emotions normally associated with chocolates. The strategy has clearly proved
successful, as they have been able to build and maintain a leadership position in the market
with many loyal customers. In the Chocolate Confectionery business, Cadbury has
maintained its undisputed leadership over the years. Some of the key brands are Cadbury
Dairy Milk, 5 Star, Perk, Éclairs and Celebrations. Cadbury enjoys a value market share of
over 70% - the highest Cadbury brand share in the world. The flagship brand Cadbury Dairy
Milk is considered the "gold standard" for chocolates in India.
One of the marketing strategies used by Cadbury in India was introducing Cadbury as an
after dinner sweet. Indians are fond of having dessert after their dinner. Apart from its after
dinner advertisement, Cadbury targeted everyone adults and children. Advertisements as well
as the correct Target Market were the reason of successfully portraying Cadbury as an after
Dinner sweet.

In most of its advertisements, the brand is endorsed and advertised by adults rather than by
children even though it basically sells chocolate. 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 in
special gift boxes.

Marketing Challenge: To expand the consumer base by making Cadbury Dairy Milk
desirable to the adult segment as well as the younger segment.

Dairy Milk chocolate was always perceived to be meant for „kids‟. This led to stagnation of
the „Cadbury Dairy Milk‟ brand in the eighties. With communication continuously addressing
kids, consumption got resulted with the same segment resulting in stagnation.
KUCH KHAAS HAI ZINDA GI MEIN, KYA SWAAD H AI ZINDAGI KA

Cadbury was associated with joyous and carefree moments, and what was required was to
blend these moments with those in the real life.

It is in this background that in the early 90‟s, the “real taste of India” ads were created for
Cadbury. The ad showed a cricket match in action with a boundary required of the last
ball to win the match and for the batsman to get his century. The batsman hits the last ball
in the air as the crowd watches with bated breath, the fielder gets underneath the ball, a
young lady in the galleries prays frantically for him to miss the ball. Much to the delight of
the fans and the lady the balls sails over the boundary rope. As soon as that happens she
jumps out on the ground and starts jiving to the tune kuch khaas hai zindagi mein, kya
swaad hai zindagi ka. The ad launched Cadbury Dairy Milk as a brand for both the kids
and the adults, something that could be savored by people across age barriers. This
campaign went on to be awarded 'The Campaign of the Century', in India at the Abby (Ad
Club, Mumbai) awards.

KHANEWALON KO KHANE KA BAHANA

In 1997, need was to further expand the category. Also with the launch of Kit Kat which
was considered as young, trendy, future, exciting and smart, it had to overcome hurdles at a
competitive level. So the focus shifted towards widening chocolate consumption amongst
the masses. In this stage of growth the brand dealt with popularizing consumption in a social
context, especially in more traditional settings like weddings. Through the 'Khanewalon Ko
Khane Ka Bahana Chahiye' & with the award winning ‘Kuchh khaas hai…’ campaign,
Cadbury built social acceptance for chocolate consumption amongst adults, by showcasing
collective and shared moments. These ads were a major hit with the urban suave crowd but
the middle and the rural masses were still not targeted.

Marketing Challenge – Cadbury Dairy Milk to be the Real Taste of Everyone's Life.

PAPPU PASS HO GAYA

In India joyous occasions are always celebrated and commemorated with the sharing of
sweets. The marketing vision was what prompted the company to engage megastar
Amitabh Bachchan for the hugely successful commercial ‘Jab Pappu pass ho jaye kuchh
meetha ho jaye’ - the addition of another joyous occasion to be celebrated with Dairy Milk.

‘Aaj Pehli Tarikh’

Cadburys has come up with this bold concept with the commercial „Aaj Pehli Tarikh
Hai‟. Never mind the slowdown and the salary cuts; the payday is always a reason to
celebrate.

It‟s a brilliant idea of associating Cadburys Dairy Milk Chocolate with the payday
celebration. The ad achieved universal appeal.

Analysis:

Cadbury in the early 1980‟s targeted only children through advertisements which lead to their
product becoming stagnant. According to the Product Life Cycle, Cadbury Dairy Milk
completed the stage of Maturity and was declining. The only way to recover was to change the
marketing strategy and apart from targeting children even adults were targeted. The
advertisements and the message they were giving to the audience clearly supported this
marketing strategy. From targeting only Kids, even a dults were targeted and were part of the
Marketing Strategy. Each and every advertisements above shows their different Market
Strategies.
6. Segmentation & Target Markets
Segmentation:
It means divide the market into group of potential customers. It means all marketing process
depends on marketing segmentation and it is the foundation of all the marketing processes.

 Demographic Segmentation
Age: Under this type of segmentation the buyers who mostly prefer the Cadbury dairy milk
comes under the age group of 4-40 years.

Gender: For purchasing Cadbury dairy milk gender doesn‟t matter. Cadbury dairy milk is for
everyone whether a male or female.

Income: The price of Cadbury dairy milk is reasonable and affordable. A person does not
need to think much before purchasing it. The income of a person does not play any important
role.

Generation: Cadbury dairy milk will not be much affected by the generation differences. All
types of peoples like to purchase the Cadbury dairy milk when they want to buy it. The focus
was shifted from just for Kids to Kids in all of us which clearly states that there is a wide
target Market.

 Behavioral Segmentation
Decision: The decision is taken by the children and youngsters. They play an important role
in taking the decision of when to buy the Cadbury dairy milk.

Occasions: For purchasing the Cadbury dairy milk no special occasions are required. People
can easily purchase it on regular basis. Occasionally such as Diwali, Rakshabandhan, etc are
times when the sales of Dairy Milk increases.

 Geographic segmentation
The maximum part of the revenue generated from urban and semi-urban area.

Target Market:

The targeted customers of Diary Milk have been changing from time to time and
advertisement to advertisement.
In the early 90's, it was seen as meant for kids, usually rewards or a bribe for children.In the
Mid 90's the category was re- defined by the very popular Real Taste of Life´ campaign,
shifting the focus from just for kids´ to the kid in all of us´.
It appealed to the child in every adult. Cadbury dairy milk commonly targets all types of
customers whether they are young and old, male or female. The main target of it mainly is
children and youths that are in the segments of occupation and in the age group.

The target market which is selected and targeted by is according to age, gender, occupation
and income of potential customers. The potential market in rural area was targeted.

Every family member celebrates any occasion with Dairy Milk.

Analysis:

Segmentation was done to know the potential customers and they were segmented on the
basis of Demographic, behavioral and Geographic Segmentation. Once the segmentation
groups were done the target Market was done. The target Market changed from Kids to
everyone but still children and Youth are the main Target Markets.
7. Positioning
Cadbury Dairy Milk is considered to be the perfect expression of love, family, friends, etc.
A cross the various campaigns and advertisements, CDM is positioned as a spontaneous
brand that is being consumed for special as well as real moments in life. The positioning has
always been to connect with consumer on a personal. In fact Cadburys marketing program
always focuses on the positioning in order to be a part of the consumers regular consumption
at any given time to include as many occasions as possible. Positioning Dairy Milk as a
dessert allowed it to portray Dairy Milk as a chocolate which can be consumed daily. It also
differentiated Dairy Milk from other chocolates in terms of the target customer as a dessert
for the whole family and not only for the kids.

Cadbury India with its products Gems, Five Star, Celebrations and Dairy Milk come in the
Star Category. The chocolate market in India is pegged at approximately Rs. 2,000 crores and
growing at 18-20% per annum with Cadbury having a 70% share and Nestlé India Ltd around
20%, according to a December 2011 report by Technopak Advisors Pvt. Ltd. With high
growth rate and High Market share, Cadbury India Ltd is the leader in the Chocolate
Segment.

Analysis:

Cadbury India Ltd is positioned according to the BCG Matrix as a Star as well as Cadbury
due to the high Market Share and High Market Growth.
8. Marketing Mix
Product:
Chocolates is one product that doesn‟t need any introduction. It‟s got a huge array of target
audience. It ranges from Kids to Retired People. It‟s a general notion that “Chocolates make
us happy”. Chocolate is one of those many goodies that are consumed during special
occasions or whenever one feels like.

Cadbury a popular chocolate maker has banked on the appealing factor of chocolates.
Cadbury‟s Dairy Milk has been a huge success and it‟s been a legend in the chocolate
industry since centuries. Dairy Milk is the flagship brand of the company.

Something about Dairy Milk:

The main ingredient of a chocolate is cocoa – the heart of the sweetest delicacy in the world –
is bitter! Amazing! Practically all varieties of cocoa is classified under

Ingredients:

The quality of the product is good enough for an Indian to accept. Its quality and the “feel
good” factor of the product is far higher than the rest of the chocolate products in the market.
The utility of Dairy Milk has generally been higher than the rest of its competitor‟s products.

Cadbury‟s Dairy Milk has become so popular over the time that the people have started
equating chocolate to Cadbury‟s Dairy Milk.
Packaging and Design:
The color “Purple” is the 1st thing one notices on a Cadbury Dairy Milk Wrapper. The color
looks so impressive and bright that it ends up developing an urge or temptation in the minds
of the people. Cadbury underwent a major Repackaging Operation when a worm was found
out in one of the chocolate bars sold in the country.

Cadbury has used a consistent packing for Dairy Milk over the years with color, label and
title.

Cadbury‟s world famous packaging is comprised of four key elements:

a) Distinctive Packaging Design

b) The Cadbury Corporate Purple Color
c) The Glass and a half of full cream milk
d) Logo – Cadbury Script Logo

Sizes:

Cadbury Dairy Milk comes in a variety of sizes to serve all age groups, income segments and
also for different eating occasions.

Large bars/Gift Packs - 200g, 400g, and 600g, even larger for special occasions, bought
forsharing or as a gift.

Smaller bars - 100g and chunky bars to share or enjoy as a 'big eat'.

Treat size - Small individual bars of 20gm to enjoy as a small treat.

Price:

India is a price sensitive market considering the income levels of the consumers and the
demographics. Cadbury has priced its products in such a way that even a person from the
low income group could afford a Dairy Milk. Dairy Milk is widely accepted across all
income groups.

Cadburys dairy milk has the strategic vision of “One Cadbury in every pocket”. The company
aims at offering Dairy Milk at affordable prices to increase sales and achieve a greater market
share. Hence, Cadbury is the market leader.

Dairy Milk is available in the price range of Rs.5 to Rs.60 and the price varies with the pack
size.

The different packets of Dairy Milk that are available at different prices are Rs.5, Rs.10,
Rs.16, Rs.30, Rs.40 and Rs.60.
Promotion:
Cadbury has always been in the forefront when it came to promoting its brand value. It
understood the changing mindsets and trends going on in India. Mentioned below are a few
commercials by which Cadbury promoted its brand value.

"Kuch Meetha Ho Jaye".

There was a time when Cadbury was a product solely promoted for Kids and off late Cadbury
is being promoted as a sweet one feels like having post dinner.

"ShubhAarambh"

Cadbury has tapped the Indian Tradition of having something sweet before accomplishing an
auspicious task or deed. ShubhAarambh means a Fortunate beginning.

“ Aaj Pehli Tarikh Hai”

It indicates that 1st day of the month is the pay day. Majority of the Indian Population resides
in the rural areas. The perception of money for a Rural Indian is far higher than an Urban
Indian. Hence the pay day of every month is indeed a big day for the Villagers. So its time to
have something sweet when wealth ushers in every month. That‟s where Cadbury comes in
and offers inexpensive and quality sweets to the Rural Indians.

Place:
Cadbury‟s products are available in over a million outlets across the country. Cadbury
Products are sold to Small Grocery shops, General Stores, Chemists, Departmental Stores,
Malls, Airports amusement parks etc.

Cadbury's distribution network encompasses 2100 distributors and 450,000 retailers. The
company has a total consumer base of over 65mn.

A Wide Area Network comprising of 31 VSATs across the country connect the branch
offices, factories, depots and the corporate office. This is used for e-mail and accessing
SAP/R3, which is the application package, used across the Cadbury Group. The
implementation of SAP gives them up-to-date information in terms of stocks at factories and
depots, sales across the country, and the financial impact of all the above transactions at any
given moment of time.

Cadbury has improvised the quality of its products sold at several points by installing
refrigerators at several outlets.
9. Review and Control
Revenue that Cadbury has seen at the end of the year in India was $400million. In 2009, they
targeted $500million and felt that resources for advertising and distribution would not be a
problem. Cadbury India pulled out all the stops, rose to the challenge and surpassed it. Sales
grew by 30 per cent in 2010. A delighted Kraft pumped in more funds, which saw sales
increase by another 40 per cent between January and September 2011.

There are other advantages of being part of a $50-billion corporation like Kraft. Slowdown or
not, advertising spends will not be reduced. "We have almost locked consumer-and customer-
facing investments, and that will not be touched," says Anand Kripalu (President, South Asia
and Indo-China, and MD, Cadbury India). The company increased its direct reach by 25 per
cent in 2011 to more than 700,000 stores and added 5,000 sub-stockists to penetrate deeper
into smaller towns. It is building refrigeration in its entire supply chain and investing heavily
in sales infrastructure like visi coolers and chocolate dispensers. "It feels good to be part of a
really large company," says Narayan Sundararaman, Director, Powdered Beverages, Candy
and Gum, at Cadbury India. "The resources, and, therefore, the horizons are much bigger and
wider than they were before."

Still, the Rs 3,000-crore chocolate market, growing at a compound annual growth rate of 15
to 20 per cent, will remain Cadbury India's mainstay for some time to come. But there is
competition, with global brands like Ferrero Rocher making inroads, while Amul and Nestle,
too, remain in the fray

Cadbury has in place a world recognised review system which monitors the employees and
not only does consistency but identifies areas to develop and train in. Also the employee
satisfaction is high and they themselves have reported that the level of training available and
the opportunities to develop and grow are immense. The employees also attend specialist
training courses within the field of CSR (corporate social responsibility) to enhance and
update their knowledge and skills. Every employee also has regular one-to-one meeting with
their line manager as well as half-year and end-of-year reviews. This process of continuous
assessment enables them to reflect upon their own style and continuously grow and improve
your skills set.

At Cadbury there is a 360 feedback appraisal system. Customers, peer colleagues and
managers are asked for feed back on the employee‟s performance and their perceptions of
him. This was incredibly useful, as it‟s a way of gaining an honest understanding of how
people view you so that you can know how to develop communication and people skills.
There are many development opportunities at Cadbury for those who want them – in training,
secondments and CSR.
10. Marketing Organisation
Structure

Cadbury follows functional structure of organization and has been very succesful in engaging
its employess. C Y Pal is the chairman while Anand Kripalu Managing Director for South
Asia region and other non-executive directors. The Middle level department is divided into
funtional areas like Finance, Operations, Human Resource and Sales. It has built up a strong
structure with its experience and beliefs .

Systems

Cadburry makes every effort to adhere to the most stringent control norms, ensuring that their
customers get the most deliciously consistent chocolate each and every time. As part of their
global quality control procedure, Cadbury has installed Metal Detection Systems on each
line, to ensure that every product being packed was safe, and free from stainless steel, copper,
or any other kind of metal.

Style

Over th e last thre e years , th e best par t of m strategy ha s bee n mainly people . Of my top
50 leaders , two-thirds are new to th e job. Man y came from within Kraft, some from Danon
e biscuits an d man y from outside an now man y mor e from Cadbury. Wha t is hugely
exciting is tha t thes e leader s wil l bring a whol e lot of competitive advantag e to the table.
The Cadbury team in India just seem to wor k very wel l together . Ther e is a feelin of
winnin g an d opportunities . Stay of th e way and give them ambitious target s bu t ensure
tha t you provide them the resources , scale and expertise of a global company to achieve that
. Our turnaround emergin g markets has bee n due to total empowermen t of th e right leaders
. By unleashin g talent , yo u can transform business .

Staff

Standout HR Policy: “Have fun. Cadbury has an annual celebration .”

Work and fun can co-exist. At Cadbury India, they take this philosophy very seriously. “We
celebrate at the drop of a hat,” says Radhakrishnan B. Menon, director (HR). It perhaps helps
that the brand is also about celebrating life‟s little moments. Beyond the happy coexistence
between work and play, the other thinking Cadbury nurtures is the importance of teamwork.
A good team player is more valuable than an individual, with rewards and recognition for a
job well done. For every new recruit, a „buddy‟ is nominated who guides the fresher for a
month and helps adjust to the job. “There is a strong sense of kinship, and the feeling that
they, too, own the brand. So, there is greater involvement and loyalty,” says managing
director Bharat Puri. Cadbury believes its work culture is also conducive to innovations. In
2005, it launched Bilkul, a saunf-flavoured chewing gum-cum-mouth freshener. Bilkul was
entirely a Cadbury India innovation and the company‟s first entry into the chewing gum
market.

Skills

At Cadbury, people are highly committed to their work and because Cadbury always looks
for the same level of commitment in their people. People who do well at Cadbury tend to
share the qualities and spirit of good entrepreneurs: lots of drive to make things happen,
ability to influence people, a habit of making sound decisions, a knack for turning ideas into
action.Cadbury‟s commitment to training and development is a core value. As they grow, so
their people grow with them, developing new capabilities to take their business
forward. Helping people reach their potential means that they in turn help them succeed as a
business.They offer support not only in the way of training for career skills and capabilities
but in the opportunity to study. Their strong belief in community involvement encourages
their people to take part in local projects as a way of developing valuable skills. They also
offer a continual programme of encouragement and development to advance employees
career.

Shared Values

Cadbury encapsultes an enormous breath of emotions,from shared values such as family

togetherness (fun, wholesome, reliable), to the personal values of individual enjoyment. It
stands for Goodness among all its stake holders whether employees or customers.
11. Contingency Plan
The prospective customers of Cadbury Dairy Milk have changed from kids to adults
including every family member to celebrate any occasion with Dairy Milk. The first priority
should be maintaining the trust of its consumers by concentrating more on the quality,
improving the packaging and paying more attention to the way in which it is stored by the
retailers across the country.

Concentrating more on TV advertisements. Right advertising campaigns can be used to

achieve the company objectives and bring about the desired change in the behavior of the
target audience.

The Indian chocolate market is getting bigger and better. To expand its share various
measures are undertaken in all areas of operation to create value for future.

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 segment focus is on optimizing manufacturing efficiencies and

creating a world class manufacturing location.

Efficient sourcing of key raw material i.e. cocoa through forward purchase of imports ,higher
local consumption by entering long term contract with farmer and undertaking efforts in
expanding local area developing .The initiatives in 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 logistics and distribution competitiveness.

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 addressing issues

of product stability by installation of visi 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.
Bibliography

Kapferer, Jean-Noel. "Strategic Brand Management". The Free Press. A division of

Macmillan, Inc. 1992 Edition

Kotler, Philip. "Marketing Management" Analysis, Planning, Implementation, and Control

Prentice-Hall, Inc. Eighth Edition

Aaker, David, et al, "Advertising Management"

Prentice-Hall, Inc. Fourth Edition

Business Line 'Catalyst' – Thu. Feb 19,1998.

Financial express 'Brand Wagon' – Fri, Oct. 27, 1995

Internet Sources:

 www.business-standard.com

 www.financialexpress.com

 www.economictimes.com

 www.hinduonline.com

 www.indiaserver.com

 www.expressindia.com

 www.indiainformer.com

 www.cadbury.co.uk

 www.india-today.com/btoday

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