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Submitted to:- Submitted by:-



This is to certify that the Research Report entitled “MARKETING

STRATEGIES OF CADBURY” being submitted by “Shubham
Gupta” fulfillment of the requirement of University is a record of an
independent work done by his under my guidance and supervision.

Prof. Mr.
Director- Concerned Faculty

(Management Institute)-Code:


I, “ Shubham Gupta” to declare that the Research report entitled

the G.G.S.I.P. UNIVERSITY for the partial fulfillment of the
requirement for the degree of Bachelor of Business Administration is
my own endeavors and it has not been submitted earlier to any
institution/university for any degree.

(Shubham Gupta)


One of the most pleasant aspects of writing an acknowledgement is the opportunity

to thank all those who have contributed to it. Unfortunately, the list of expression of
gratitude- no matter how extensive – is always incomplete and inadequate. This
acknowledgement is no exception.
First of all, I wish to express my sincere gratitude to Mr. Gaurav sir, , for giving
me opportunity to do research under her profound guidance. Because of her
inspiring guidance, motivation, positive criticism, continuous encouragement and
untiring supervision this work could be brought to its present shape.

I would like to thank all of them who in one way or the other have helped me.

Shubham Gupta

The success of any business entity solely depends on how effectively does it
utilizes its optimum resources and how soon does it make arrangements for
the removal of the customer’s grievances. Moreover, the company should
always be ready to make necessary changes according to the requirement
in order to attract more customers so as to maintain a substantial growth in
the market. The topic given to me was:


I have tried to put my best efforts to complete this task on the

basis of skill that I have achieved during my studies in the institute.

I have tried to put my maximum effort to get the accurate statistical data. If
there is any error or any mistake in collecting the data, please ignore it.



1. Executive Summary

2. Introduction

3. Company Profile

4. Objective

5. Research Methodology

6. Data analysis and Findings

7. Conclusion

8. Suggestion

9. Bibliography


The Cadbury’s India’s number one chocolate is able to share with their market

insights based upon unparalled breath of chocolate experience.

The merge in 1969 with Schweppes and the subsequent development of the business

have led to Cadbury Schweppes taking the led in both, the confectionery and soft

drink market intech UK and becoming a major force in the international market.

Cadbury Schweppes today manufactures product in 60 countries and a trade in

staggering 120.

This project is a sincere effort to look for the market potential in chocolate and

confectionery industry. A descriptive research procedure had been applied to come

to the conclusions of the project. A detailed questionnaire had been prepared and the

responses of the concerned people had been collected for the analysis. The project

later concluded in recommending the market potential of the chocolate and



The Cadbury’s Inc has taken the opportunity to offer us a broader view of chocolate

category. The Cadbury’s India’s no.1 Chocolate is able to share with their market

insights based upon unparalleled breath of chocolate experience.

Cadbury has grown from strength to strength with new technologies being

introduced to make the Cadbury confectionary business, one of the most efficient in

the world. The merge in 1969 with Schweppes and the subsequent development of

the business have led to Cadbury Schweppes taking the led in both, the

confectionary and soft drink market intech UK and becoming a major force in the

international market. Cadbury Schweppes today manufactures product in 60

countries and a trade in staggering 120. The Cadbury story is a fascinating story of a

family business that grew in one of the biggest, most loved chocolate brand in the

world. A story that you will remember as the story of “The taste of life”.


My main objective of the study on this project is to demonstrate

the marketing strategies of Cadbury India Ltd.

And to arrive at my findings, I have done few analysis:-

(a) SWOT Analysis

(b) PEST Analysis

And also 5 P’s of Marketing:-

• Product

• Price

• Physical Distribution

• Promotion

• Positioning


Achieving accuracy in any research requires in depth study regarding the subject. As

the prime objective of the project is to compare Cadbury with the existing

competitors in the market and the impact of Nestle on Cadbury, the research

methodology adopted is basically based on primary data via which the most recent

and accurate piece of first hand information could be collected. Secondary data has

been used to support primary data wherever needed.

Primary data was collected using the following techniques

Questionnaire Method

Direct Interview Method and

Observation Method

The main tool used was, the questionnaire method. Further direct interview method,

where a face to face formal interview was taken. Lastly observation method has

been continuous with the questionnaire method, as one continuously observes the

surrounding environment he works in.

Procedure of research methodology

# Target geographic area was Delhi. NCR.

# To these geographical area questionnaire was given, the questionnaire was a

combination of both open ended and closed ended questions.

# The date during which questionnaires were filled was between six week.

# Some dealers were also interviewed to know their prospective. Interviews with the

honour of retailer of Cadbury were also conducted.

# Finally the collected data and information was analysed and compiled to arrive at

the conclusion and recommendations given.

Sources of secondary data

Used to obtain information on, Cadbury and its competitor history, current issues,

policies, procedures etc, wherever required.

# Internet

# Magazines

# Newspapers

The legend called Cadbury

1824 – A once business was opened in 1824 by a young Quaker, John Cadbury, in

Bull street Birmingham was to be the foundation of Cadbury Limited, now one of

the world’s largest producer of chocolate.

1831 – By this year the business had changed from a grocery shop and John

Cadbury had become a manufacturer of drinking chocolate and cocoa. This was the

start of Cadbury manufacturing business as it is known today. A larger factory in

Bridge Street Birmingham was rented in 1847, John Cadbury was joined by his

brother Birmingham and the business became Cadbury Brother of Birmingham.

1861 – John Cadbury resigned his business and handed over to his sons, Richard, 25

and George, 21 who after 5 difficult years almost shut down the business to take up

other vocation. Fortunately for generation of chocolate lovers, they didn’t.

1866 – Saw a turning point for the company with the introduction of a process for

pressing the cocoa butter from the coca beans. This not only enabled Cadbury

Brothers to produce pure coca essence, but the plentiful supply of coca butter

remaining was also used to make new kind of eating chocolate. The essence was

advertised as ‘Absolutely pure, therefore best’.

1879 – Business prospered from this time and Cadbury Brother outgrew the Bridge

Street factory, moving in 1879 to a ‘Greenfield’ site some miles from the center of

Birmingham which came to call Bourneville. The opening of the Cadbury factory in

a garden also heralded a new era in industrial relations and employee welfare with

joint consultation being just one of the introduced by the pioneering Cadbury


1899 – In this year the business private limited company – Cadbury Brothers

Limited. Progress since the start of the century through the inter – war years onward

ahs been rapid. Chocolate has moved being a “luxury” item to well within the

financial reach of everyone.

1905 – Cadbury has many famous brands with one of major success story being

Cadbury’s Dairy Milk chocolate launched in 1905, today Britain’s favorite moduled

chocolate bar.

Cadbury today is the market leader in the U.K chocolate confectionary market,

employing the most advanced processing technology and management information

and control techniques. The company is the confectionary division of Cadbury

Schweppes plc which is major force in the confectionary and soft drinks

international market.

World - wide Cadbury is one of the pre – eminent names in confectionary with

impressive range of famous brands.

Quality has been the focus of the Cadbury business from the very beginning as

generations have worked to produce chocolate with that very special taste,

smoothness and snap, so characteristics of Cadbury’s chocolate.







Design Development

Milk chocolate for eating was first made by Cadbury in 1897 by adding milk powder

paste to the dark chocolate recipe of cocoa mass, cocoa butter and sugar. By today’s

standards this chocolate was not particularly good as it was very coarse and dry and

was not sweet or milky enough for public tastes.

At that time there was a great deal of competition in the U.K from continental

manufactures, not only the French with their fancy chocolates but also from the

Swiss, who were renowned for their milk chocolate. Led by George Cadbury junior,

the Bourneville experts set out to meet the challenge. A considerable amount of time

and money was spent on research and new plant design to produce the new

chocolate in much large quantities.

A new recipe was formulated fresh milk and new production processes were

developed to produce milk – chocolate not as merely as good as but better than the

imported milk chocolate.

Four years of hard work were invested in the project and in 1905 what was to be

Cadbury’s top selling brand was launched. Three names were considered Jersey

Highland Milk and Dairy Maid. Dairy Maid became Dairy Milk and Cadbury’s

Dairy Milk with its unique flavor and smooth creamy texture was ready to challenge

the Swiss domination of the milk chocolate market.

By 1913 it had become the company’s best selling line and in the mid twenties

Cadbury’s Dairy Milk gained its status as the brand leader, a position that it has held

ever since. Today more than 250 million bars of Cadbury’s Dairy Milk are made

every year and sales reach over 100 million Pound in value.

While advertising and label design g-have changed with fashion and considerable

strides have been made in manufacturing technologies, the recipe for Cadbury’s

Dairy Milk its ‘glass and a half of full cream milk in every half pound produced’ is

still basically the same as when it was launched.

Cadbury’s Dairy Milk Story

Chocolate has been enjoyed by successive generation since the manufacturing

process was developed in the Victorian Times. Good chocolatiers is an art form

depending on recipe traditions, which have grown over the years. Chocolatiers have

use their skills to make balanced recipe in which all the ingredients combine to

produced chocolate with all the characteristics that enable full delicious taste to be

enjoyed by the consumers.

By today’s standards the first chocolate for eating would have been considered quite

unpalatable. It was the introduction of the Van Houten cocoa press from Holland

that was the major break through in the chocolate production as it provided extra

cocoa butter needed to make a smooth glossy chocolate.

Cadbury’s Milk Tray – 1915

Milk Tray has maintained its popularity in the changing world since the milk

chocolate assortment made with the famous Cadbury’s Dairy Milk chocolate was

first introduced in 1915.

The name ‘tray’ derived from the way in which the original assortment was

delivered to the shops. Originally Milk Tray was packed in five and as half pound

boxes, arranged on trays from which it was sold loose o customers. The half pound

deep – lidded box with the traditional purple background and gold script was

introduced in 1916, followed by one pound box in 1924.

With its stylish, without frills presentation Milk Tray was the assortment for

everyday, not just special occasion and it represented the best buy in the chocolate

for millions of people. The pack design has been regularly updated and the

assortment itself has changed in line with consumers taste and preferences.

By the end mid – thirties the Cadbury’s Milk Tray assortment outsold all its

competitions and today it is still one of the most popular boxes of chocolates in this


Cadbury Schweppes

Cadbury Schweppes plc, a global beverage and confectionary giant with annual sale

of Rs 20,ooo crores,is the worlds number one non – cola soft drink company having

bottling and partnership operations in 14 countries and franchises of its brand in a

further 86 countries around the world. Its Hundred Percent subsidiary in India

named Cadbury Schweppes Beverage India (private) Limited (CSBIL) started

operation in March 1995. The first brand was launched was crush which was later

followed by Canada Dry, Schweppes Tonic Water, Schweppes Bitter Lemon.

CSBIL with its franchise agreement with 19 bottles throughout India proposes to be

a household name. It has a policy for FOBOs (Franchise owned bottling operations

unlike Coke and Pepsi which prefer COBO,s (Company owned bottling operations).

In FOBO the beverages company only supplies the concentrate and the marketing

support to build brand equity. The other aspects like machinery, bottling line, land

and distribution is the responsibility of the bottler. As its CEO Mr. Ashok Jain says,

“we are the software, they are the hardware”.



Dairy Milk

Fruit & Nut









Drinking chocolate





1. Very strong brand equity in India.

2. Due to its 54 years presence in India – has deep penetration – 2100

distributors; 450,000 retailers, 60 mid urban (22%) customers.

3. Three sectors; Chocs (70% share), Confec (4%), food drinks (14% -

leader in brown segment).

4. Low cost of production due to economic of scale. That means higher

profits and / or more competitioners. Better market penetration.

5. Second best manufacturing location throughout Cadbury Schweppes.


1. Poor technology in India compared to current international technologies

(Godiva, Mozart, Fazer, Dint, Naushans, etc...)

2. Ltd. Key products, only one central brand (CDM). Pralines range totally

wising in India.

3. “Make in India” tag once the economy opens up wore and imports rush in.


1. Tremendous scope for per capita consumption (160 gms of 8 – 10 kg)

2. Increasing per capita national income resulting in higher disposable


3. Growing middle class and growing urban population.

4. Increasing gifts cultures.

5. Substitute to “Mithais” with higher calories/cholesterol.

6. Increasing departmental stores concept – impulse @ at cash counters.

7. Globalisation: optimal use of global Cadbury Schweppes.


a) Major :-

None. Due to low cost and highest brand equity, it is today in India.

b) Minor :-

Globalization will being in better brands for upper end of the market (Liest,

Monarch, Godiva, etc…).


Will lose market share with globalization (a la Maruti) but will remain brand leader.

Pest Analysis

P: since the budget range is decontrolled, no political effects are envisaged.

E: 1) increasing per capita income resulting in higher

disposable income

2) Growing middle class/urban population – increase in


3) Low cost of production – better penetration

S: 1) Per capita consumption expected to increase – fashion

2) Increasing gifts culture – increase in demand

3) Lower cholesterol than “mithais” (sweet meat) –

substitute demand

T: Will have to reinforce technology to international levels

once India is a “free” economy

4 P’S Of Marketing


Satisfaction suffices. But delight dazzles the average company will compete for

customer by conforming to her expectation consistently. But the winner will surpass

them by constantly exceeding her expectation, delivering to her door step additional

benefits which she would never have imagined possible. 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) Eclairs

8) Nutties

9) Temptation

10) Milk Treat

II. Beverages

III. Food Drinks

1) Bournvita

2) Drinking chocolate

3) Cocoa


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

Friut and Nut Rs. 22

Gems Rs. 10

Break Rs. 5

Nutties Rs. 18

Bournvita (500 gm) Rs. 104

Drinking chocolate Rs. 50

Physical Distribution – “Place”

BRAND ISN’T THE ONLY ANY MORE. Marketers and finance manager need a

new term to evaluate their business:

Distribution Equity. It takes much more time and effort to build, but once built,

distribution equity is much together 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 would

be know of selling your products. The cardinal task before the Indian market is

managing is to shoe-horn its product on retail shelves. Buyers are paying for

distribution equity not brand equity and market shares.

Why does the company need distribution equity more anything in India? With

technology and competitive pressure slash in it is becoming increasing difficult for

marketers to retain a unique product

differentiation for ling period. In a

product and price parity situation,

the brand that sells more is the one

that reaches the highest number of


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 tom improves logistics,

Cadbury is also attempting to improve the distribution quality. To address the issue

of product stability, it has installed visi colors at several outlets. This helps in

maintaining consumption in summer when sales usually drops due to the fact that

the heal effects 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.


If an advertisement is to communicate effectively, the receiver must at least half

want it to, and be prepared too take step toward the sender. 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 her memory, communication must first ensure

exposure, grab her attention evoke her comprehension, grab her 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 address 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, unself conscious, pleasure – seeking child within himself – a

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 insert his

ATM card. It tells the customer that this would be good time to get out of her

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.

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,,

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 spiffing 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



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…

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.

Positioning of individual product:

1) CMD: is and always remain flagship brand. The punch by the company for

advertising this product life. ‘Real taste of Life’, itself defines the positioning

of the product. The chocolate is meant for all age groups. It symbolizes fun,

enjoyment, good items. It has goodness of milk, taste and appetite appeal.

2) 5 star: although positioned internationally as an energy bar, 5 star was

positioned on an emotional platform in India during the late 1980s.

Symbolizing togetherness, 5 star was originally targeted at teenagers. In June

1994, the company reworked the strategy for 5 star to make it a source of

energy. In fact, before the launch of Perk, 5 star’s energy bar positioning

made it a snacking chocolate.

3) Éclairs: competing in the chewable toffees segment. Éclairs was re-launched

during the mid-nineties with a new name, Dairy Milk Éclairs.

4) Gems: broadcasting Gems, though, didn’t prove to be feasible proposition

for Cadbury. Targeted at children under 12 years with ‘Gems Bond’


Cadbury decided

to too teenagers

with the ‘Smart

Very Smart’

campaign. But

now, the company is retargeting children with its animated commercial.

“Gems are the best brand to speak to children. Colorful chocolate buttons

appeal most to children and that is why Cadbury is re-targeting children.”

5) Crackle: it was the first Cadbury’s chocolate to have crunch in it. It was

targeted as a funky chocolate to add spark to life.

6) Perk: in September, 1995, Cadbury preempted the launch of Nestlé’s Kit-Kat

by rushing a new brand, Perk into the market. Positioned much further on the

functional scale than 5 star, Perk was meant to be light snack-product for

subduing the first pangs of hunger.

7) Bournvita: positioned as tasty health drink. While its competitors

concentrated only on health aspect, Bournvita combined the nutritious value

with taste.

Cadbury’s Market Segment

Market place for any product is comprised of many different segments of

consumers, each with different needs and wants. Markets segmentation can be

defined in a number of ways such as:

 Demographic variables (e.g. Consumers are groups, gender, material states

income etc…)

 The lifestyle of consumers (i.e. their interests and activities) the benefits

which consumers look for in a product or on the occasions when the product

might be consumed.

 Cadbury takes into account all these factors when producing a range of

products. It targets different segments within the market, such as the.

 Break segment – products which are normally consume as a snatched break

and often with tea and coffee, for example Cadbury’s Perk and snack range.

 Impulse segment – these products are often purchase on impulse, eating

these and then. They include product such as Cadbury’s Dairy Milk.

 Take home segment – this describes product that are normally purchased in

supermarkets, taken home consumed at a later stage.

The Real Taste of Rejuvenation

It was the market – leader, but sales inched along. It focused firmly on its target

segment, but the real buyer lay beyond. For seven long years, Cadbury’s Dairy Milk

chocolate suffered stagnancy even as other consumer products boomed. Just how

did the company rejuvenate an old brand to create the marketing megs-hit of the


It Stand First Among Second coming. And it wasn’t so much a re-launch as it was

a process of rejuvenation. Over a period of 12 months, starting February, 1994, the

Rs. 314 crore confectionery makers Cadbury embarked on the most outrageous

repositioning exercise in the recent history of Indian marketing. For, it

systematically dismantled the franchise that the company had built over 30 years of

its flagship brand, Cadbury’s Dairy Milk (CDM)-Cadbury’s Milk chocolate until

1986-destroying the very fundamental of generic association that had made million

of Indians refer to a bar of a chocolate as a “Cadbury”.

More proof of the chocolate is in the eating: two years into process, CDM’s market

share at 25%, with sale rising by an average 40% per annum.

The Diagnosis

Today, The Real Taste of Life campaign, which served

Up chocolate in general, and COM in particular, into the consciousness of adult, has

already become a classic of advertising and marketing. By 1993, Cadbury was

desperately seeking growth for the brand… “With a market share of 70%, trying to

win away customers from competitors in this stagnant market wouldn’t help. They

had to find new customers, people who’d never bought chocolate before. Or, they

had to increase consumption levels”. The obvious solution, in a peculiar

predicament. Despite low penetration, both the brand and the category were

displaying symptoms of age: faltering growth, high recognition, and lack of

excitement. The market research revealed the cause of the graying: chocolate wasn’t

a snack in India. “In mature markets, chocolate straddle a continuum, from boutique

product – packaged raw indulgence – to a casual food”. So, Cadbury whipped up a

growth solution that involved associating the brand with snacking and functionally,

which inevitably go together with high consumption rates in the Western markets.

The next step: identify the barriers preventing consumers from chocolate as a snack.

A battery of test, both quantitative and qualitative, comparing chocolate

consumption to a basket of competitive products revealed an unmistakable answer.

“Cadbury’s Was Caught In Its Own Trap”

How? The company had, over decades, created a context of chocolate consumption

that was now chocking growth possibilities. “The baggage of the past was so

overpowering that people didn’t get influenced by minor shifts in the message”.

In fact, the behavioral and attitudinal patterns conveyed by the communication to

build the brand were proving restrictive. For, Cadbury had, using the traditional

demographic variables of age, socio-economic groups, and usage intensity,

positioned COM as a product that elders – typically, parents – bought for children –

typically, their own.

But admittedly – enduring values of love and sharing, parental affection, and reward

that Cadbury had labored to associate with the brand, which had helped it forge a

relationship with customers, had relegated it to being a special – occasion item,

ruling out increased individual consumption. After all, special occasion item, ruling

out increased individual consumption. After all, special occasion were meant to be a


A typical Ad would show parents bringing home chocolate for their child. It would

never, ever, show the child, or the parent, buying it for himself or herself. The punch

line – Sometimes Cadbury’s Can Say It Better Than Words, and Nothing But

The Best Will Do – reinforced the notion, with an unwelcome side – effect: adults,

as research showed, felt distinctly guilty and embarrassed about eating chocolate,

whether alone or socially.

“Not only were adults not indulging in chocolates, but they were also actively

curtailing child consumption” solution? Forget children as the core consumer.

Universalize the product, targeting the parents.

The Tests

Despite the Need To Clear The residual memory of CDM’s former association,

caution prevented a big break with the past, forcing Cadbury to experiment with a

combination of continuity and change. The process entailed understanding the

foundation of the brand, since it was these that would support the new structure”.

Out went the caring - and - sharing element, but the family context stayed. “Cadbury

had two pillars, so it made sense to change one”.

Chocolate should be eaten whenever you feel like. It was an impulse item, so why

shouldn’t it be sold as one?”. The first of the two commercial focused on

functionality, purging the emotional element.

Is the storyline, The father watches TV, engrossed, gnawing away at a bar of CDM.

The children enter, followed by the mother-but, by that time, the father has

completed the distinctly un paternal act of devouring the entire bar. The children are

shocked, where upon the produces another bar for them-only to eat that up too.

Finally, the mother brings another bar out of her bag. The last shot more CDM bars

strew around casually.

The second commercial conveyed the same message, depicting four member of a

family doing their own thing on a Sunday afternoon, each casually munching away

on chocolates. The less than – subtle message: eating chocolate’s just an everyday

affair, without special occasion or relationship coming into play. Despite their

strategic intent, both ads failed on pre – airing tests.

Why for stators, children were outraged at the idea of a parent consuming chocolate,

while adults were down right angry at the notion of the father depriving his children

of chocolate bar. Just as important, consumer rejected the idea that chocolate-eating

could be equated with mechanical activities like combing one’s hair. After all,

chocolates were about feelings. There had to be magic, romance, love and emotion.

These elements had been ripped away from the advertising. It was sans emotion”.

“Parent Are Different From Adults”

Even as the ad failed, however, they generated a valuable byproduct, in the form of a

new insight, into adult behavior. “Using transactional analysis on response,

Cadbury’s found that adult as parents behave very differently from adults as adults.

People forbid their children from having chips, but gorge themselves. “The


“The moment the adult was shown in the context of his role as a parent, all his

cognitive preconception about the product would come to the fore. He’d think about

the reasons why, and the block would automatically come up”. Tap child-ego state

within the adult, stimulating desire, spontaneity, and the craving for instant


The Prescription

The crucial question that Cadbury was confronted with: what strategy should it

deploy to rejuvenate COM in a way that would appeal to the child lurking within the

adult? To inject a modern flavor into COM, they chose to create a new brand

identity, borrowing a leaf from marketing guru David Aaker, who decrees that brand

identity should establish a relationship between the brand and the customer by

generating value proposition involving functional, emotional, or self-expressive


“The Ads Had To Be Linkable”

“The consumer will always tell what his current belief system is, not what it should

be Cadbury’s job to mould has habits and behavior in a way that would increase

consumption for product and brand”.

“Impulse Drives Chocolate Sales”

One of the tools Cadbury’s used was Jean – Neal Kapferer’s Brand Prism model to

examine whether contemporary value systems offered a peg on which the brand

could be judge. The study disclosed, interlaid, a distinct shift from collectivism to

individualism, with the pre – 1990’s sacrosanct values of filial and family love being

overshadowed by the manifestation of a larger need for self – expression. “There

was a definite yearning to be free child”. Therein lay the opportunity for both

unshackling consumption and creating all-new association for CDM.

The Elixir

Having decided to barter the distinctly use selfish values of sharing and caring for

the suspiciously self-centered one of self-expression, Cadbury’s people insisted that

the rejuvenate be enriched with compensation – and equally enduring – positive

values: universal truths, enduring human values, and universal moment of joy. To

translate the brief into the commercial, they decide to simply portray occasion of

childlike-but not childish-behavior from adults, without explicitly identifying adults

as the target customer.

“They left the connection to be made by the customer” “In the process they were

able to get viewer involvement and high levels of empathy. Nowhere did they

actually say, you’re an adult, you can eat it. Because nobody wants to be told”. Thus

it was that, the montage of the child in the man-the old man kicking the football; the

pregnant woman carving a chocolate; young girl breaking into a spirit; the young

man tossing a bar of chocolate at his sweet-heart departing in a bus-was created.

That the consumption had to be liked before it could penetrate the cultural resistance

to chocolate consumption by adults was obvious. Taking a contrition stance,

Cadbury decided to test the commercial being devised by O&M’s creative team not

for the tire battery of likeability, comprehension, credibility and behavior

modification – but only for the first two. “If asked upfront, the consumer was hardly

likely to consider the dramatically-different idea credible. Nor was there much

chance of her announcing an immediate change in behavior”. But why likeability

and comprehension? Simple: the first was meant to be the vehicle on which the

daring idea-that adults should enjoy chocolate-would ride into the consumer’s


In other words, the commercial was meant to make him smile at first-and only then

realize the import once of the message, which is where the comprehension had to be

tested. “What was clear in this case was that likeability would have to include

identification and feeling warmth.”

Thodi Se Pet Puja, Khabi Bhi Kahin Bhi!

The Real Taste of Life Campaign

The very first ad in the campaign in 94 was ‘block – Buster’. It depicted the essence

of one and a half glass of milk pouring in to a boy Dairy Milk unique glass and half

in to a chunk icon shows the glass and a half of full cream milk flowing in to the

chunk of dairy milk conveying the deliciousness and taste appeal of the gooey,

creamy, smooth chocolate inside the pack that children like. The mnemonic of 1 ½

glass reached to consumer through every magazines, poster, T.V, newspaper.

The second ad was montage of vignettes from every day lives of young and old

which focused on showing a series of emotions. The ad created a being out the child

in the man created to bring out the child in the. The old man kicking the football, the

pregnant women craving chocolate, young girls breaking into a spirit, the young

man tossing a bar chocolate at his sweet heart departing into a bus. The common

refrain linking them was the adult in a free child mode – spottiness, impulsive and


The ad was protested among adult’s trough focus groups. The ad received an

overwhelming response. It was high on likeability, evoked a great degree of

empathy and identification consumers’ response were those me…… “Feel like

that…….”. “Every feels like this”…….. Brand usage was perceived to cut across all

age groups and accessions. Consumers described dairy milk as “… of all ages”

“Eat, when ever you feel like it…you do not have to wait for an occasion.”

Dairy Milk had successfully enabled the free child in the consumer subsequent

adverting used the same communication strategy.

Kya Swaad Hai Zindagi Ka!

The next ad featured an on going match in the field. Think of a match India batting

against Pakistan. The score, 6 runs to win with 1 ball left and India wins the match.

The ad shows a girl dancing with jubilation on the cricket field when her hubby hits

the winning stroke. The award winning campaign, designed by ogilvy and matter,

were intended to rid the Indian chocolates eater of that guilt complex. The

advertisement suggested, through not in so many words, that it was ok to be seen

including in a chocolate in public. You could relate the sweetness of success of

chocolate. The ad draws attention to the actual eats experience.

The fourth in this series was the girl with on her hands. The ad focused on showing

how the girl relishes the Dairy Milk when she has mehandi on her hands. The idea

behind this advertisement was to show the nature of chocolate as an impulse –

driven product. Post campaign saw a great turn around. Dairy Milk transformed in to

a young full brand full of zest. It came to be recognized as an expression of

spontaneity and in pulse. The campaign succeeded I softening attitude towards

chocolate and lifting then out of the ream of kiddies / special occasion only. It

embraced a wide range emotion all build around them that chocolate means different

things to different people at different times, but most importantly chocolate is


The New Campaign

And finally, with the launch of the new colloquial advertising campaign ‘Khaannein

Wallon Khaannein Ka Bahana Chahiya featuring MTV VJ Cyrus Broacha, Cadbury

India aimed to ‘substantially’ increase penetration level of the chocolate category in

the next few years.’

The new campaign is worth noting as it clearly differ from the earlier one in terms of

rectifying the consumer perception about chocolate being an up market impulse –

driven product. The attempt now is to change the image, to make chocolate eating a

regular habit.

The current estimated penetration level of the chocolate category is 19% in the

urban market. The objective behind tne new communication on Cadbury Dairy Milk

is to make the chocolate category more socially and culturally relevant and drive

penetration in the process.

The new campaign has been launched in tandem with the old ar@@ Winning ‘Kuch

Khass Hai’ campaign and the media strategy is to let the two co – exist towards a

common vision “providing a Cadbury in every pocket”.

Thodi Se Pet Puja, Khabi Bhi, Kahin Bhi!

Chocolate Market Share

The Indian chocolate market is getting bigger and better. While on one hand, the

premium segment (composing imported varieties) is opening up on the other,

companies like Cadbury India are launching indigenous product made to

international standards. Of the 20,000 tonne chocolate market worth about

Rs. 400 crore, Cadbury account for about 70% followed by Nestle, with a share of

around 20%. Amul has about 5% of the market, with minor player taking the rest.

The battle, though, is between Cadbury and Nestle. Though with a much smaller

portfolio, Nestle is putting up a tough fight.

From a treat for kids, chocolate are now being positioned near meal substitutes,

thanks to the initiative taken by the Cadbury India during early nineties. The market

itself has become more broad based, in the sense adults are an important target

segment now. The reposting of Cadbury’s Dairy Milk in 1994 as the ‘real taste of

life (through the Slice of Life and Cricket commercial by Ogilvy and Mather) grew

the entire milk chocolate by 20%, and gave the Cadbury’s range – 5 Star, Gems,

Éclairs, Fruit & Nut, Crackle, Nutties, Butterscotch & Tiffns – a new lease of life. In

other words, it facilitated the repositioning of Cadbury’s sub brands in the basket.

Some o the strategic clicked, while other did not quite take off.

The company is pushing the gifting segment, through occasion linked gifts.

Chocolates contribute to 64% of Cadbury’s turnover. Confectionary sales

accounting for 12% of turnover is contributed largely by Éclairs. The company

attempted expanding its confectionary product portfolio, with launch of sugar based

confectionary goodly and fruits, without much success. Cadbury also has a strong

brand vita in the malted health drink category which account for 24% of turnover.

There exists an even larger unorganized market in the confectionary segment.

Cadbury has 4% of the market share in this segment. Leading national players are

nutrine, Pary’s Ravalgoan, Candico, Parle, Joyoco India and Perfetti, the MNCs

such as Joyco and Perfetti have aggressively expanded their presence in the country

in the last few years.

Malted food drinks category consists of white drink and down drink. White drinks

accounts for almost two third market of the 82,000 for market south and east are

large market for drinks, accounting for largest proportion of all India’s sale.

Cadbury’s Bourn Vita is leader in the down drink coca based segment in the white

drink segment Smith Kline’s Horlicks in the Nestle Milo , GCMMF nitramul and

other Smith Kline brand Boost, Maltova and Viva Cadbury bold 14% market share

in food drinks segment.

Despite tough market condition and increased competition Cadbury managed to

record a double digit (11%) top line growth in 2000. The company achieved a

volume growth of 5.2%. This was achieved through innovative marketing strategies

and focused advertising campaign foe flagship brand Dairy Milk. Net profit rose

sharply by 41.8% to Rs. 520 million. Reduced material and energy cost and tioter

control over working capital over working capital and capital expenditure enabled

the company to improve the profitability. Company added 8 million new consumers

and saw its outlets grow to 4.5 lakhs and consumer to 60 million.In the food

segment, Britannia is the leader brand with 21% among those who expressed an

opinion saying that they like advertising for the brand Cadbury was clearly No.2

with 18% to which CDM throw in its weight with 13% and pork with 4%. For the

Chowlate company, Khane Walo Lo, Khane Ka Bhanna and the Karwa Cauth,

Sports are clear winners.

Tied for the brand place are Amul, Parle and south based Arun Le Gram with 5%

each. Disappointment among bid brands Kissan and Maggi and Kwality Walls (1%)


Cadbury’s Temptation

Cadbury’s Health Drink

Cadbury’s Creamy Bar

Cadbury’s Fruit & Nut

New Launch

Cadbury target kids with Milk Treat: - It is a product that talks directly to the

target consumer. The product benefits have

been defined as “The goodness of milk to the

fun of chocolate”. it combines both good

health, multinational value of milk along with

the values of fun and excitement. The kinds

formally associate with Cadbury chocolate offering.

Temptation :- It is aimed at the niche “international chocolate “ segment of the

chocolate market a segment how upgrade from brands such as Cadbury’s to

premium international offering such as Tolerance, Lindit and Hersheys. Roughly

5%of the total domestic consumption expected to

grow to some 10%. This segment is too good to

miss out on. The


Cadbury’s range available in India did not offer

consumer an option to upgrade to international

chocolate within the Cadbury’s fold. Temptation

is an attempt to lug niche, priced Rs. 30.

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


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 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 developing. 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 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


• 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 look 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.

Changing Product Mix

Contributing to turnover Contributing to turnover

1995 2010

Chocolate 59% 64%

Sugar Confecting 9% 12%

Food Drink 32% 24%

Current Market Share

Chocolate 69.2%

Sugar Confectionary 4.0%

Food Drink 14.2%

Expanding Distribution Reach

2001 + Distribution

450000 Retail Outlet

60 Million Consumers


• Maintain dominance in chocolate, confectionery and market leadership in

blown drinks.

• New channels such as gifting, child connectivity and value for money

offering to be the key growth drives.

• Grow volume sales at least 20% p.a. over the next years.

• Achieve the goal of best manufacturing location in Cadbury Schweppes

world for Dairy Milk and Éclairs.

• One new major product launch every year.

The Cadbury Story

Cadbury’s success story

In 1984, John Cadbury founded U.K. company with one aim:- to create the highest

quality chocolate. By1969, when Cadbury merged with the soft drink giant.

Schweppes, Cadbury brands were already famous all around world.

Today Cadbury’s production are enjoyed in 120 countries, with 40 chocolate

confectionary brands, Cadbury dominated markets as far as the U.K. and Australia

that’s why Cadbury have been dubbed “The world’s master chocolate makers”.

The secret of Cadbury’s success

What is the secret of Cadbury’s continuing success first there’s the careful selection

of the finest coca beans from west Africa, as well as tasty hazel nuts from Turkey

and the fine sheet and choicest natural ingredient available to us anywhere.

Finally there’s skillful marketing Cadbury always takes extreme care in selecting

and marketing the right range of product in every cause.

The right product, the right partners, the right marketing, the promotional back up and

the right employees. These are the ingredients in Cadbury’s latest recipes for success.

Right from the stand Cadbury Dairy Milk Chocolate success has been based on 4


 Quality

 Value for money

 Advertising

Case Study

Prior to deciding on the communication strategy for Cadbury Dairy Milk it was

important to understand the habits and mindset towards chocolates. A large scale

usage and attitude study was conducted among adults. The research revealed that:

Adults were primarily purchasers, and not consumers of chocolates. However, as for

most children’s product, they exercised a strong influence on the children’s

consumption behavior. Adults acted as gatekeepers of sorts when it came to food

items. Considering the advertising history, it came as no surprise that chocolate were

perceived as “kiddy” product and certainly not part of the repertoire for products

consumed socially. Chocolate consumption among adults evoked feeling of self

indulgence and guilt.

Chocolates seemed to offer virtually no significant positive and certainly no overt

psychogenic benefits. Food and nutritive values associated with chocolates were

low. And, in fact they were categorized as a

hazard, being responsible for obesity, dental

and respiratory problems.

Brands images were undifferentiated and the

category had low saliency, “can do without”.

Purchase was almost always planned and

triggered by motives ranging from celebration,

bribing and reward to gifting. For an impulse

product category such as chocolates, this was

likely to limit market growth. This conditioning and social learning about chocolates

was restricting consumption among adults as well as driving them to restrict

children’s consumption.

There was evidence to suggest the need for shifting focus from child as chocolates

consumers to adult’s communication, hitherto, had always addressed adults as

purchasers rather than consumers. Communication had positioned chocolates for

specific situations, thus imposing boundaries for the growth of the market. Emphasis

on casual everyday situation could help promote core consumption opportunities.

For low involvement product categories like chocolates which offer emotional and

sensory benefits, it is suggested that communication is most effective with repeated

likeable ads promising unique and authentic emotional benefit a shift from

portraying everyday moments as an opposed to special ones.

The radical change however was focus on bringing out the spontaneity in adults.

And, finally CDM a symbol of manipulation was henceforth to symbolize fun,

enjoyment and good times.

The mnemonic of a glass and half milk was to reinforce the goodness of milk and

cue physiological benefits.

The only variation was in the Rituals, where communication had shifted from, and

special occasion to every moment. A strong volume growth was witnessed in the

early 90’s when Cadbury, repositioned chocolates from children to adult

consumption. The biggest opportunity is likely to stem from increasing the

consumer base.


Roast Almond


The Outlook

The Cadbury management has cut down on its growth target by setting a 10%

average volume target for next 3 years (as against previous growth) coupled with in

factionary price increases, this could translate into top line growth of 14 –15%. This

target also appears difficult to achieve given the consumer slowdown and the fact

that the company’s consumer slow down and the fact that company is dependent on

a single category chocolates to drive growth. Effect it expanding confection any

portfolio have also not yielded desired results. The management has declared its

intention to focus only in Éclairs (which forms a major position of its 4% share in

the confectionary segment) for the time being in this category.

In chocolates too ones remain on the 2-3 key brands as CDM, perk in E claims

which have supported growth in the past. While new launched such as milk @ and

Perk slims have been doing will, the management expects that dairy milk would

continue to be the central driving force in Cadbury’s growth and that all other brands

would remain peripheral to this central brand.

Few Concerns Come To Mind

With a market share of 70% in the chocolate category and with the free availability

of international brands that you see in the market today, it is only natural that

Cadbury’s market share will move down from here marinating a 70% market share

in a closed environment may have been easy, but it certainly won’t be easy in

liberalized environment of free imports. And whatever be the anomalies of taxation

or low, the consumer is surely going to have a wider choice. And it is going to be

shared with other brands too in future. There is additional challenge of Cadbury’s

brand just aiming market share when the consumer has a wide portfolio of brand to

choose from.

While there would be new chocolates launch towards the end of the year, the

company has ruled out a real big chocolates launch in the current year. And it is too

early yet to comment on the long term response to the new launch temptations. They

say chocolates are mostly am impulse purchase. Therefore consumer would prefer

smaller, low cost packs to bigger higher priced ones.

The growth trend of the brands therefore clearly indicates that the only brand that

has grown is the one that gas received tremendous marketing and advertising

support Dairy Milk withdraw support for any brand and growth loses momentum. In

such scenario, for how long and how many brands can the company continuously




Cadburys Positioning Nestle’s brands Positioning


Cadbury Dairy “The Real Taste Classic Milk Positioned as an

Milk of Life” Chocolate affordable

enriched milk


Positioned as
Fruit n Nut Position as Bar One
Trendy, Cool,
adults as an
Creamy bar
any time snack.
impulse any
Roast Almond
time purchase –

Crackle self expression

values attached

5 Star / Perk – KitKat Positioned as a

Perk/Break Positioned as snacking

Snacking consumption

consumption “Have a Break,

“Thodi si Pet Have a Kit Kat”


5 Star Energy

bar Reach for

the Stars.


Data was tabulated manually and was also analysed manually.

Excel was used to make graphs had pie charts.

Main technique used were :

Modal value was used to analyse the questions, which has 2 or

more choices as their answers.

Simple average were used to get answer to questions


1. Do you eat chocolates?



2. Which brand of chocolates do you use?
70 60
Cadbury's Nestle Amul Others

3. Where do you buy chocolates from?

Movie Halls Super stores
17% 32%

Retail stores

4. Are you aware of any campaign of the above brands?


5. Which cadbury’s product do you usually prefer or use?


60 40
24 35


Dairy Milk 5 Star Fruit & Nut Perk Temptation

6. Do you think Cadbury’s chocolate is easily available in market ?




This company project has demonstrated “CADBURY’S


proved to be extensive through, and of great benefit to the company in

furthering its competitive advantage.

In this project it possible to see the success of Cadbury’s in its indorse

its strong potential to continue to do well.


• A L Ries (1996), “Focus” Harper Collins Publishers Ltd.

• David A. Aaker (1991), “Managing Brand Equity”, The Free Press.

• David A. Aaker (1996) “Building Strong Brands”, The Free Press.

• Philip Kotler (Eighth Edition) “Marketing Management”, Prentice Hall

of India Ltd.

• Advertising and marketing Magazine

• The Economic Times – “Brand Equity”

• Company Literature

• Market survey and questionnaires

• Web site:

• Web site:

• Business World

• Business Today