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CADBURY DAIRY MILK

Group Presentation

Group No-12 Section-G

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Agenda o Cadbury-company overview Dairy milk-brand overview o Frameworks applied o Consumer behavior for Chocolates buying o STP & Branding o Chocolates – Product & Pricing o Recommendations Group No-12 Section-G 2 .

Company and brand overview o British confectionery co. founded in 1824 o Second largest after Mars o Began operations in 1948 in India o Dairy Milk-flagship brand started in 1905 o Contributes 10% of total sales by volume globally o 70% market share in India by Cadbury o 30% contributed by Dairy milk Group No-12 Section-G 3 .

Chocolate Industry Analysis Parameters for going for a particular Brand Cadbury 21% 16% Nestle 20% 23% Amul and others 20% TASTE PRICE Group No-12 Section-G BRAND ADVERTISEMENT PACKAGING 4 .

ice creams etc. existence of economy of scale. cookies. Group No-12 Section-G 5 . differences in products. sweets. access to distribution channels and existing regulations Supplier bargaining power moderate to high as concentrated suppliers (cocoa beans) and no substitutes of inputs present Buyer bargaining power Rivalry Rivalry between top two brands Cadbury and Nestle but market leader is Cadbury Moderate as number of large volume buyers and buyers‟ relatively low profits from the product & presence of switching costs Threat from substitutes High risk of substitutes from other chocolate and non chocolate snacks like candies.Chocolate Market Analysis using Porter‟s Framework Threat from new entrants Low as Large capital requirement.

SWOT Analysis for Cadbury S W O T • Brand Name • Market share of over 70 % • Financial strength • Pioneer in research of Cocoa Cultivation • Integrated campaigns • Quality and Value for money • Poor technology in India compared to current international technologies • Lower engagement with Rural population • Growing middle class and growing urban population. • Increasing gifts cultures • Substitute to “Mithais” with higher calories/cholesterol • Increasing departmental stores concept • Shift in Consumer buying behavior : Chocolates to Heavy Snacks • Threat from Imported chocolates Group No-12 Section-G 6 .

Competition Analysis o Main competitors are Nestle and Amul o Cadbury: Market leader & Nestle: Market Challenger o Cadbury and Nestle together own 90% of market share Group No-12 Section-G 7 .

Consumer Behavior Punch line Preferences 20% o Marketing Stimuli o Campaigns Communication 20% 16% 25% 19% SHUBH ARAMBH KUCH MEETHA HO JAAYE AAJ MEETHE MEIN KYA HAI REAL TASTE OF LIFE KHAANE WAALON KO KHANE KA BAHANA CHAHIYE Group No-12 Section-G o „Real Taste of Life‟ o „Khaane Walon ko khaane ka Bahana Chhayie‟ o „Kuch Meetha Ho Jaaye‟ o „Pappu Pass Ho Gaya‟ o „Shubh Aarambh‟ o „Khaane Ke Baad Meethe Mein Kuch Meetha Ho Jaaye‟ 8 .

sweet craving are some of the motivations o Perception o Perceived as sweet. warm & delightful o Screening mostly through „selective attention‟ o Learning o Taste largely determines whether consumer will repeat or not o Memory o Words associated with chocolates according to Associative Network Memory Model: warmth. presents. happiness. tasty.Consumer Behavior o Consumer Psychology o Motivation o Maslow‟s Hierarchy of Needs: Need for chocolates is social in India o Others‟ happiness. love. birthdays o Memory encoding attributed to taste & advertising Group No-12 Section-G 9 . hunger. light snack. sweet.

Consumer Behavior o Buying Decision Process o Relatively quick o Impulsive purchase depending on availability and taste preference o Easily switching among brands o Post Purchase Actions-largely governed by consumer‟s liking or disliking of taste Group No-12 Section-G 10 .

Targeting o Full market coverage attempts o Differentiated marketing strategy o Campaigns and products aimed at targeting different market segments o For ex: o „Khane walon ko khane ka bahana chahiye‟ o Target: widening chocolate consumption o „Kuch meetha ho jaye‟ o Target: to associate Cadbury with sweets o „Pappu pass ho gaya‟ o Target: encourage to celebrate achievements with Dairy Milk o „Aaj Pehli tarikh hai‟ o Target: To celebrate pay day/salary day with Dairy Milk Group No-12 Section-G 11 .

Positioning For kids across India. the word „Cadbury‟ is synonymous with chocolates Dairy Milk positioned as „The perfect expression of love‟ Group No-12 Section-G „Kuch Meetha ho jaye‟: The brand wants itself to be synonymous with sweets 12 .

shots Group No-12 Section-G 18% CADBURY DAIRY MILK (NORMAL) CADBURY DAIRY MILK (SILK) CADBURY DAIRY MILK (FRUIT & NUT) CADBURY DAIRY MILK (ROAST ALMOND) CADBURY DAIRY MILK (CRACKLE) CADBURY DAIRY MILK (SHOTS) 13 . silk.Branding o Brand naming o Usage of „Cadbury‟ on all confectionary products in conjunction with product brands o Brand elements Preference of Variety 16% 18% 15% 17% o Catchy slogans and campaigns 16% o Branding decisions o Brand re-positioned itself to appeal to older age-groups o Brand Line extension by introducing many variants-plain. roasted almond. fruit nuts. crackle.

Branding Strategy Points of Parity Points of Differentiation • Similarity of products make points of parity important for survival • Value differentiation • Image differentiation Group No-12 Section-G 14 .

Product Analysis o Packaging o Change in Packaging over years: Group No-12 Section-G 15 .

huge expenses on advertising.Pricing Strategy o Chocolate industry characterized by high volumes. low margins. and price sensitivity to some extent o Products priced strategically to obtain near maximum market penetration o Aimed at capturing all income groups: Offers standard as well as premium category chocolates o Convenient prices: in multiples of 5/10 Group No-12 Section-G 16 .

) Opening of its own chocolate outlet in major cities Adopt new marketing strategy to harness rural segment Adoption of e-commerce for bulk purchasers Group No-12 Section-G 17 .g.-strawberry.RECOMMENDATIONS Bring out new products for health conscious people (low calorie. etc. sugar free.) Continue to promote as substitute to mithai Special packaging and variants for occasions and festivals Introduce new flavours within the product line (e. vanilla. etc.

THANK YOU Q&A Group No-12 Section-G 18 .