99 Cadbury
99 Cadbury
RESEARCH REPORT
ON
MARKETING STRATEGIES OF
CADBURY
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CERTIFICATE
Prof. Mr.
Director- Concerned Faculty
(Management Institute)-Code:
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DECLARATION
Place:
(Shubham Gupta)
Date:
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ACKNOWLEDGEMENT
I would like to thank all of them who in one way or the other have helped me.
Shubham Gupta
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PREFACE
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 maximum effort to get the accurate statistical data. If
there is any error or any mistake in collecting the data, please ignore it.
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INDEX
S. NO. CONTENTS
1. Executive Summary
2. Introduction
3. Company Profile
4. Objective
5. Research Methodology
7. Conclusion
8. Suggestion
9. Bibliography
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EXECUTIVE SUMMARY
The Cadbury’s India’s number one chocolate is able to share with their market
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.
staggering 120.
This project is a sincere effort to look for the market potential in chocolate and
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
confectioneries.
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INTRODUCTION
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
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
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”.
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OBJECTIVE OF THE PROJECT
• Product
• Price
• Physical Distribution
• Promotion
• Positioning
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RESEARCH METHODOLOGY
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
Questionnaire Method
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
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# The date during which questionnaires were filled was between six week.
# Some dealers were also interviewed to know their prospective. Interviews with the
# Finally the collected data and information was analysed and compiled to arrive at
Used to obtain information on, Cadbury and its competitor history, current issues,
# Internet
# Magazines
# Newspapers
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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
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
Bridge Street Birmingham was rented in 1847, John Cadbury was joined by his
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
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
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
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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
Brothers.
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
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,
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
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,
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ORGANIZATIONAL STRUCTURE
MANAGING
DIRE
CTO
GENERAL
MAN
AGER
VICE PRESIDENT
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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
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
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
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
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
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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
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
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
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
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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
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
country.
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
further 86 countries around the world. Its Hundred Percent subsidiary in India
operation in March 1995. The first brand was launched was crush which was later
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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,
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PRODUCT PROFILE
Dairy Milk
Picnic
Perk
Gems
Éclairs
Nutties
Temptation
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FOOD DRINKS
Ovaltine
Drinking chocolate
Bournvita
Horlicks
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SWOT
Strength
3. Three sectors; Chocs (70% share), Confec (4%), food drinks (14% -
Weakness
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.
Opportunities
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2. Increasing per capita national income resulting in higher disposable
income.
Threats
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,
Conclusion:-
Will lose market share with globalization (a la Maruti) but will remain brand leader.
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Pest Analysis
disposable income
demand
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2) Increasing gifts culture – increase in demand
substitute demand
4 P’S Of Marketing
PRODUCT
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
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I. Chocolate & Confectionary
1) Dairy Milk
3) 5 Star
4) Break
5) Perk
6) Gems
7) Eclairs
8) Nutties
9) Temptation
II. Beverages
1) Bournvita
2) Drinking chocolate
3) Cocoa
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Pricing
Make no mistake. Second P of marketing is not another name for blindly lowering
prices and relying on this strategy alone to increase sales dramatically. The strategy
used by Cadbury’s is for matching the value that customer pays to buy the product
with the expectation they have about what the production is worth to them.
Cadbury’s has launched various products which cater to all customer segments. So
every customer segment has different price expectation from the product. Therefore
maximizing the returns involves identifying right price level for each segment, and
Perk Rs. 10
5 Star Rs. 10
Gems Rs. 10
Break Rs. 5
Nutties Rs. 18
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BRAND ISN’T THE ONLY ANY MORE. Marketers and finance manager need a
Distribution Equity. It takes much more time and effort to build, but once built,
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
Why does the company need distribution equity more anything in India? With
customers.
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.
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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
Own distribution network consist of clearing and forwarding (C&F) agents &
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 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
itself being incremental volume. The other reason is arch rival Nestle reaches more
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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
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Promotion
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
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
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
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,
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ad agency contract has created communication for cinemas and even ATM machines
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
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
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,
Ad spend in 2000 was about 14% of sales and the management said that plans to
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
that the company has launched, it had also entered into various marketing
relationship with other portals, specially targeted during festivals and events such as
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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
market.
Positioning
In the 1970s consumers were ready to pay “more for more”, and luxury goods
flourished. In the 1980s, consumers began to demand “more for same”, and the
discounting era grew strong. Today’s consumer demanding “more for less”, and the
winner will be that super value marketers…. Some of today’s most successful
companies recognize those customers are more educated and able to recognize true
customer value…
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…
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
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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.
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
advertising.
Cadbury decided
to too teenagers
Very Smart’
campaign. But
“Gems are the best brand to speak to children. Colorful chocolate buttons
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5) Crackle: it was the first Cadbury’s chocolate to have crunch in it. It was
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
with taste.
consumers, each with different needs and wants. Markets segmentation can be
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
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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.
these and then. They include product such as Cadbury’s Dairy Milk.
Take home segment – this describes product that are normally purchased in
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
199s?
It Stand First Among Second coming. And it wasn’t so much a re-launch as it was
Rs. 314 crore confectionery makers Cadbury embarked on the most outrageous
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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
More proof of the chocolate is in the eating: two years into process, CDM’s market
The Diagnosis
Up chocolate in general, and COM in particular, into the consciousness of adult, has
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
predicament. Despite low penetration, both the brand and the category were
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
growth solution that involved associating the brand with snacking and functionally,
which inevitably go together with high consumption rates in the Western markets.
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The next step: identify the barriers preventing consumers from chocolate as a snack.
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“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”.
build the brand were proving restrictive. For, Cadbury had, using the traditional
positioned COM as a product that elders – typically, parents – bought for children –
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
ruling out increased individual consumption. After all, special occasion item, ruling
out increased individual consumption. After all, special occasion were meant to be a
rare.
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,
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“Not only were adults not indulging in chocolates, but they were also actively
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
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
Chocolate should be eaten whenever you feel like. It was an impulse item, so why
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
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
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affair, without special occasion or relationship coming into play. Despite their
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”.
Even as the ad failed, however, they generated a valuable byproduct, in the form of a
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
implication”:-
“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
gratification.
The Prescription
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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
benefits.
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“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
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
was a definite yearning to be free child”. Therein lay the opportunity for both
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The Elixir
Having decided to barter the distinctly use selfish values of sharing and caring for
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
“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
That the consumption had to be liked before it could penetrate the cultural resistance
Cadbury decided to test the commercial being devised by O&M’s creative team not
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
and comprehension? Simple: the first was meant to be the vehicle on which the
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daring idea-that adults should enjoy chocolate-would ride into the consumer’s
psyche.
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
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
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
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refrain linking them was the adult in a free child mode – spottiness, impulsive and
carefree.
The ad was protested among adult’s trough focus groups. The ad received an
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
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Kya Swaad Hai Zindagi Ka!
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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
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
driven product. Post campaign saw a great turn around. Dairy Milk transformed in to
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
Cadbury.
And finally, with the launch of the new colloquial advertising campaign ‘Khaannein
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India aimed to ‘substantially’ increase penetration level of the chocolate category in
The new campaign is worth noting as it clearly differ from the earlier one in terms of
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
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
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Chocolate Market Share
The Indian chocolate market is getting bigger and better. While on one hand, the
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
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,
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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.
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.
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
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
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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,
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%)
each.
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Cadbury’s Temptation
54
Cadbury’s Health Drink
55
Cadbury’s Fruit & Nut
56
57
New Launch
Cadbury target kids with Milk Treat: - It is a product that talks directly to the
Previous
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Future Strategy
In the branded impulse market, the share of chocolate in 6.6% and Cadbury’s share
in the impulse segment is 4.8% factor like changing attitude, higher disposable
income, a large youth population, and low penetration of chocolate (22% of urban
the branded impulse among the costly alternative in the branded impulse market.
It appears that company is likely to play the value game to expand the market
encouraged by the recent success of its low priced ‘value for many packs’.
Various measures are undertaken in all areas of operation to create value for the
future.
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.
efficiencies and creating a world class manufacturing location for CDM and Éclairs.
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
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• Use of it to improve logistic and distribution competitiveness
• Expand the consumer base. The company has added 8 million new
consumer in the current year and how has consumer base of 60 million
company has been able to increase the width of its consumer base
dip due to the fact that the heat effects product quality and thereby
consumption.
• The above are some steps being taken internally to improve future
free imports, lower barrier to trade and the advent of all global players
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.
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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
1995 2010
Chocolate 69.2%
2001 + Distribution
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450000 Retail Outlet
60 Million Consumers
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RECOMMENDATIONS
blown drinks.
• New channels such as gifting, child connectivity and value for money
• Grow volume sales at least 20% p.a. over the next years.
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The Cadbury 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.
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”.
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
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
factors:-
Quality
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Value for money
Advertising
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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
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
psychogenic benefits. Food and nutritive values associated with chocolates were
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likely to limit market growth. This conditioning and social learning about chocolates
children’s consumption.
There was evidence to suggest the need for shifting focus from child as chocolates
specific situations, thus imposing boundaries for the growth of the market. Emphasis
For low involvement product categories like chocolates which offer emotional and
likeable ads promising unique and authentic emotional benefit a shift from
The radical change however was focus on bringing out the spontaneity in adults.
The mnemonic of a glass and half milk was to reinforce the goodness of milk and
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
consumer base.
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Nutties
Roast Almond
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Picnic
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
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
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
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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
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
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
support?
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POSITION OF THE VARIOUS BRANDS IN THE
brands
enriched milk
chocolate
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 –
values attached
Bournvita
Snacking consumption
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consumption “Have a Break,
Pooja”
5 Star Energy
the Stars.
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DATA ANALYSIS AND FINDINGS
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FINDINGS AND SURVEY
Yes
26%
No
74%
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2. Which brand of chocolates do you use?
80
75
65
70 60
60
50
40
30
30
20
10
0
Cadbury's Nestle Amul Others
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3. Where do you buy chocolates from?
Others
6%
Movie Halls Super stores
17% 32%
Restaurants
10%
Retail stores
35%
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4. Are you aware of any campaign of the above brands?
Yes
46%
No
54%
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5. Which cadbury’s product do you usually prefer or use?
80
70
80
60 40
24 35
40
20
0
Dairy Milk 5 Star Fruit & Nut Perk Temptation
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6. Do you think Cadbury’s chocolate is easily available in market ?
No
9%
Yes
91%
80
CONCLUSION
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Bibliography
of India Ltd.
• Company Literature
82
• Web site: www.Cadbury.uk.com
• Business World
• Business Today
83