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Understanding the emotional association between cadbury & youth of Mumbai.

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A beautiful KRAFTED project on Cadbury. …

A beautiful KRAFTED project on Cadbury.
200 marks. A complete in and out of the Cadbury world.

Published in: Education, Technology, Business

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  • Hey.. i really liked your work.... could you mail me this project at ashishkhemka@rediffmail.com
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  • Hey nishit ! can yu pls mail me dis project ?
    my email id is virgoteju@gmail.com.. I need it urgently ! plss rply asap !
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  • Hey mail this project as this is really a nice one ... @ mrpiyush_gupta7@yahoo.com
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  • hey... i m a mba student and i desperately need ur stuff !!! plzz mail me at aniket555007@gmail.com
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  • Hey, can i please have this project report? Im a marketing student and this could really help me with my research work !
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  • 1. Nagindas Khandwala College of Commerce, Arts, Science andManagement Studies. Submitted By: Nishit Mehta TY BMS Semester V Project Report On: Understanding the Emotional Association between Cadbury and the Youth of Mumbai. Project Guide: Prof. Mona Bhatia University of Mumbai Academic Year 2010-2011 Cadbury | Kraft Food INC. | The Merger | Emotional Association | Youth | Mumbai 1
  • 2. A cknowledgmentAt the outset of this project I would like to thank P M Bhatiafor her moral support for making me go through the completion of thisproject without any stressful method.I would like to thank my college Nagindas Khandwala College and eventhe Mumbai University for giving me this opportunity. Nishit Mehta T.Y. B.M.S Nagindas Khandwala College Cadbury | Kraft Food INC. | The Merger | Emotional Association | Youth | Mumbai 2
  • 3. Table of ContentsSummary............................................................................................................... 5Chapter 1: Research Methodology ......................................................................... 6Chapter 2: History ............................................................................................... 142.1 Chocolate2.2 Chocology2.3 Body of evidence2.4 Myths and facts about chocolate2.5 Cadbury – History2.6 Kraft food INC. - History2.7 Some important datesChapter 3: Brand Prism – Cadbury ....................................................................... 30Chapter 4: Company Overview ............................................................................ 324.1 Cadbury world wide4.2 Corporate Social Responsibility AwardsChapter 5: Brands ................................................................................................ 375.1 Cadbury Dairy Milk5.2 Perk5.3 5 star5.4 Celebration5.5 Temptaions5.6 Eclair5.7 Gems5.8 HallChapter 6: Advertisements .................................................................................. 476.1 Shubh aarambh6.2 5 star6.3 Perk6.4 Fruit and nuts6.5 Silk6.6 BournvilleChapter 7: Case Study (worms) ............................................................................ 597.1 Winning the battle7.2 Repackaging for INDIAChapter 8: Kraft - Cadbury Merger ....................................................................... 638.1 The legacy dies Cadbury | Kraft Food INC. | The Merger | Emotional Association | Youth | Mumbai 3
  • 4. 8.2 A heritage sold, a tradition killed8.3 Impact on the brands – A cultural changeChapter 9: SWOT ................................................................................................. 70Chapter 10: Emotions .......................................................................................... 7310.1 Positive emotions10.2 Negative emotions10.3 List of few emotions with their meaningChapter 11: Youth ............................................................................................... 7811.1 The youth of India11.2 The connectivity – CadburyChapter 12: Mumbai............................................................................................ 8212.1 Introduction12.2 Climate12.3 Economy12.4 Regions12.5 Demographics12.6 CultureChapter 13: Questionnaire | Analysis | Findings .................................................. 84Chapter 14: Conclusion – Recommendation ......................................................... 9614.1 General conclusion14.2 Conclusion about mergerChapter 15: Bibliography ..................................................................................... 99 Cadbury | Kraft Food INC. | The Merger | Emotional Association | Youth | Mumbai 4
  • 5. Summary‘Understanding The Emotional Association Between Cadbury & Youth Of Mumbai’This project gives an inside about how the youth of Mumbai, can easily connectCadbury with their lives. The project gives the information about the various moods/emotions/ temperaments that the youth associates with Cadbury.The project also represents data of how often the youth consumes Cadbury and thereasons why Cadbury has such a strong impact on the minds and hearts of theyouth.This project also covers brief information of Cadbury –worldwide, the problemsfaced by Cadbury and the recent takeover of Cadbury by KRAFT food INC. and itsimpacts all over the world.This project also contains the Strengths, Weaknesses, Threats and Opportunities ofCadbury.Finally the project gives a brief idea about what the youth feels about Cadbury andwhere it should improve so that the youth connects with Cadbury with a strongerBEAT.The project also captures the various emotions of today’s youth and also thecharacteristics of the youth of Mumbai.The recent merger of Cadbury and Kraft food Inc. have made waves world wide. It’snot only the youth that fears loosing Cadbury but also the employees of Cadbury.‘British flags fluttered outside chocolate-maker Cadburys sprawling Bournville site asemployees lamented the news that a beloved national brand had falling intoAmerican hands’It’s not only about the chocolate but about the lives of people linked with Cadburysince the World War II.There’s no doubt that Cadbury has become synonymous to chocolate, but they say‘It’s not the capacity but consistency that matters in the end’Now there’s a strong doubt in the minds and hearts of the youth, that whetherKRAFT food INC. would be able to maintain such a strong image of CADBURYWORLD WIDE.‘Let’s hope it does’ – The YOUTH Cadbury | Kraft Food INC. | The Merger | Emotional Association | Youth | Mumbai 5
  • 6. Chapter 1: Research Methodology‘If we knew what it was we were doing, it would not be calledRESEARCH, would it?’ – ALBERT EINSTEIN Cadbury | Kraft Food INC. | The Merger | Emotional Association | Youth | Mumbai 6
  • 7. R esearch Methodology:9 steps of research. Formulating Preparing the Collection of Research Research Design Data Problem Objectives of Determining Execution of Research sample Design Project (2) Extensive Sources of Data Analysis of Data Literature Survey (6) Cadbury | Kraft Food INC. | The Merger | Emotional Association | Youth | Mumbai 7
  • 8. Formulating Research ProblemUnderstanding The Emotional Association Between Cadbury & Youth Of MumbaiUnit OfAnalysis Youth is the period between childhood and adulthood,Youth {AGE: 18 described as the period of physical and psychologicalto 24} development from the onset of teens to maturity and early adulthood.Characteristic ofAnalysis Emotion is subjective experience, associated with mood,Emotional temperament, personality, and disposition.Association Emotional association is the association of the experiences with something we like.Time & SpaceBoundariesTime August, September, OctoberSpace Only the YouthEnvironmentalConditionsEnvironment Mumbai city Cadbury | Kraft Food INC. | The Merger | Emotional Association | Youth | Mumbai 8
  • 9. Examples of Emotional Association: Love, PassionateGrateful Compassion Excited Depressed Relaxed Confused Cadbury | Kraft Food INC. | The Merger | Emotional Association | Youth | Mumbai 9
  • 10. Objectives of ResearchThe objective: Is to understand the emotions of youth attached with Cadbury To understand why Cadbury is synonymous to Chocolate To know why Cadbury has such a strong impact on the minds and hearts of the youth Extensive Literature Survey Articles Related to Cadbury Marketing Research – GC BERI Preparing the Research DesignThe research design is conclusive and is descriptive in nature. Research Design Explorative Conclusive Descriptive Causal Cadbury | Kraft Food INC. | The Merger | Emotional Association | Youth | Mumbai 10
  • 11.  D escriptive Research Design The major objective of this research is to describe something.  It is useful to collect demographic information of consumers (YOUTH) of a product under study (CADBURY).  It is Useful to find out views and attitudes(EMOTIONS) of customers(YOUTH)  It helps to discover the relationship between customer (YOUTH) and product (CADBURY)  The data collected can be used directly for marketing decision making. Determining sample Design  Sample design is the way of selecting the sample  Exact number of youth not known  Therefore, Non-Probability sampling will suit the best Sources of Data Primary Data Questionnaire Secondary Data Articles Collection of Data SurveyObservation Telephonic PI Schedule Interview E mail Questionnaire Cadbury | Kraft Food INC. | The Merger | Emotional Association | Youth | Mumbai 11
  • 12. 80 Analysis of Data 60 40 20 0 Pyramids A B C D Pie Chart A, Radar 33 D, 80 A B, 45 80 Radar 60 40 33 C, 67 20 D 0 45 B 80 67 C 100 50Lines 0 A B C D Serie 33 45 67 80 Doughnut A s1 15% D 35% B 20% Factors Percentages A 80% C 30% B 45% C 32% D 55% Tabulation Cadbury | Kraft Food INC. | The Merger | Emotional Association | Youth | Mumbai 12
  • 13. L  Imitations Sample size is very small i.e. only 100 youths Therefore convenience sampling is taken into account  The project has been done in span of 3 months onlyCadbury | Kraft Food INC. | The Merger | Emotional Association | Youth | Mumbai 13
  • 14. Chapter 2: History‘Copy from one, its plagiarism; copy from two, its research.’– Wilson Mizner. Cadbury | Kraft Food INC. | The Merger | Emotional Association | Youth | Mumbai 14
  • 15. HistoryC hocolate The origins of chocolatecan be traced back to the ancient Maya and Aztec civilisations in Central America, who first enjoyedchocolatl; a much-prized spicy drink made from roasted cocoa beans.Throughout its history, whether as cocoa or drinking chocolate beverage orconfectionery treat, chocolate has been a much sought after food.Because cocoa beans were valuable, they were given as gifts on occasionssuch as a child coming of age and at religious ceremonies. Merchants oftentraded cocoa beans for other commodities such as cloth, jade and ceremonialfeathers.The Aztec EmpireChocolate (in the form of a luxury drink) was consumed in large quantitiesby the Aztecs: the drink was described as finely ground, soft, foamy,reddish, bitter with chilli water, aromatic flowers, vanilla and wild beehoney.The dry climate meant the Aztecs were unable to grow cocoa trees, and hadto obtain supplies of cocoa beans from tribute or trade.Don CortesThe Spanish invaded Mexico in the 16th century, by this time the Aztecs hadcreated a powerful empire, and the Spanish armies conquered Mexico. DonCortes was made Captain General and Governor of Mexico. When hereturned to Spain in 1528 he loaded his galleons with cocoa beans andequipment for making the chocolate drink. Soon chocolate became afashionable drink enjoyed by the rich in Spain..Chocolate across EuropeAn Italian traveller, Francesco Carletti, was the first to break the Spanishmonopoly. He had visited Central America and seen how the Indiansprepared the cocoa beans and how they made the drink, and by 1606chocolate was well established in Italy.Drinking ChocolateThe secret of chocolate was taken to France in 1615, when Anne, daughter of PhilipII of Spain, married King Louis XIII of France.The French court enthusiastically adopted this new exotic drink, which wasconsidered to have medicinal benefits as well as being a nourishing food.Gradually the custom of drinking chocolate spread across Europe, reaching Englandin the 1650s. Cadbury | Kraft Food INC. | The Merger | Emotional Association | Youth | Mumbai 15
  • 16. First Eating ChocolateUp until this point all chocolate recipes were based on plain chocolate.It was an English doctor, Sir Hans Sloane, who - after travelling in South America -focused on cocoa and food values, bringing a milk chocolate recipe back to England.The original Cadbury Milk Chocolate was prepared to his recipe.C hocology People around the world have grown up enjoying chocolate asa favourite treat for countless generations. But just how muchdoes the average person really know about the potential benefits,beyond the great taste, that chocolate and its key ingredient -cocoa - provides? We all know that a bit of chocolate tends tomake you feel good, but a wealth of research suggests thatpeople can now have even more reasons to enjoy it. The lastdecade has seen a significant increase in our research andunderstanding of cocoa and chocolate. But understanding the properties ofchocolate is not just a recent development. For centuries, civilizations from Mexicoto Europe have recognised the benefits of cocoa and chocolate for medicinal andtherapeutic uses as well as a food, beverage or treat. It has even been hailed as anaphrodisiac!Of course, we all need to ensure we dont over indulge and that we see chocolate asa treat but researchers are continuing to uncover more reasons to enjoy cocoa andcocoa products. "Chocology", the science behind chocolate, opens up that researchand presents the facts in an easy to use report that we hope will be a useful resourcewhen talking about the benefits that chocolate can offer. Cadbury | Kraft Food INC. | The Merger | Emotional Association | Youth | Mumbai 16
  • 17. CocoaLong before the current trend towards organic ingredients, cocoawas one of the best known natural foods. In its purest form cocoa isa natural food. The cocoa tree produces cocoa pods that grow fromthe trunk or branch of the tree. These pods contain the beanswhich characterise the finished chocolate. The cocoa beans arefermented under banana leaves to bring out the chocolate flavourand then dried under the tropical sun. They are then shelled andground to produce chocolate liquor, an essential ingredient formaking chocolate. The liquor can also be pressed to remove the fatand is cooled and ground to produce pure cocoa powder.AntioxidantPowerCocoa contains high levels of naturally occurring compounds called flavones and arange of other polyphenols that have been shown to reduce blood pressure helpingto improve heart health. Polyphenols have antioxidant properties and work byfighting the free radicals which attack cells causing disease and accelerated ageing.They are believed to impact on arteries and blood qualities, helping to reduce therisk factors for cardio-vascular disease, through lowering blood pressure andimproved blood platelet function. Scientists have found that the polyphenols relaxvessels by increasing the chemical nitric oxide. This has been shown in new studies atmany universities around the World1.Dark chocolate contains especially high levels of flavones and other polyphenols -this helped to boost sales of dark chocolate by over 15% in the UK last year.Its not just bars of chocolate that have these high levels of antioxidants - a recentstudy revealed that hot chocolate beverages, high in cocoa content, can containconcentrations of antioxidants similar to those in red wine or tea.Deliciously NutritiousChocolate and cocoa containing products are often criticised as being low innutritional value and "empty calories". On the contrary, milk chocolate for instancecontains many vitamins including B1, B2, and E as well as minerals includingpotassium, sodium, magnesium, phosphorus, zinc, copper, manganese and by far themost important, calcium, providing over 15% of the recommended dailyrequirement in a 49g bar of Cadburys Dairy Milk, all of which help to keep ushealthy. In light of recent research which suggests taking supplements may bedetrimental to your health, its good to know that chocolate and cocoa contain somany nutrients! Cadbury | Kraft Food INC. | The Merger | Emotional Association | Youth | Mumbai 17
  • 18. B ody of Evidence –Where can you feel the benefits?TeethWhile you should always brush teeth, naturally occurringsubstances in cocoa, such as tannins, may play a role in inhibiting plaque formationby coating the teeth to protect them6.BrainEating chocolate releases endorphins, hormone-like natural substances, whichproduce a feeling of pleasure and reduce sensitivity to pain. Chocolate containsmany substances that act as stimulants, such as theobromine, phenyl ethylamine,and caffeine. Research has found that consuming chocolate can lead to increasedmental performance.ThroatA study carried out by Imperial College, London in 2004 claimed that high doses oftheobromine contained in chocolate are a third more effective at stopping persistentcoughs than codeine.HeartResearch by Professor Carl Keen at the University of California in 2000 has shownthat a bar of milk chocolate (45g) contains the same quantity of antioxidants as a150ml glass of red wine. Dark chocolates with higher levels of cocoa contain evenmore, as presented in February 2006 at the American Association for theAdvancement of Sciences (AAAS) annual meeting in Boston.CirculationA number of studies, including one at the University of Cologne revealed that darkchocolate helps lower blood pressure10. The study focused on adults with untreatedmild hypertension, some of whom had white chocolate, some dark. Blood pressureremained fairly unchanged in the group that ate white chocolate, which does notcontain flavours. But after two weeks, blood pressure readings had droppedsignificantly in the group who consumed dark chocolate.BonesMilk and milk products have been part of our diet for thousands of years and themilk in chocolate - particularly milk chocolate - provides useful quantities of a widerange of nutrients including calcium. A 49g bar of milk chocolate provides over 15%of the adult Reference Nutrient Intake (RNI) of calcium. Drinking chocolate madewith milk contains even more calciumBoosting Brain PowerA recent study in the United States at Wheeling Jesuit University, West Virginia (May2006) has suggested that eating chocolate may improve the way our brains work. Cadbury | Kraft Food INC. | The Merger | Emotional Association | Youth | Mumbai 18
  • 19. The theobromine and phenylethylamine, as well as the caffeine in chocolate appearto increase alertness and mental performance4. The team found that scores forverbal and visual memory were significantly higher for those people who had eatenmilk chocolate, and the consumption of milk and dark chocolate was associated withimproved impulse control and reaction time.Similar work at the University of Nottingham has shown that the consumption ofdark chocolate can increase blood flow to the brain leading to improved cognitivefunctionIn the MoodChocolate is said to contain at least 300 natural chemical compounds, resulting in acomplex range of tastes and odours that connect with the human brain as it runsover the taste buds of the tongue. The slowly released energy and feelings of fullnessand satisfaction induced by its sugar and fat content refuel the bodys energy levelsand create feelings of wellbeing. Eating chocolate triggers the release of endorphins,mood enhancing chemicals produced by the brain. These produce feelings ofpleasure.Chocolate has such a luscious texture and aroma that all the bodys taste andolfactory sensors are fully exploited, heightening the pleasure of the experience. Somuch so that a recent survey by Cadbury has found that 52% of women prefer eatingchocolate to having sex! Over the years, psychiatrists and researchers have pointedout substances in chocolate that they think may make us like it so much - however,theyre in such small amounts they cant really be the reason we crave chocolate.The simple pleasure of chocolate melting in the mouth adds to the pleasure of eatingit - chocolate has the property of melting at body temperature, cooling the mouthslightly as it does so. Most interestingly, one expert has pointed out that "chocolatesa blend of flavours and aromas so complex that food chemists have never been ableto duplicate it in the lab 5 ." We may never understand why chocolate makes us feelgood, adding to its mystery. A standard 45g bar of dark chocolate contains 12% ofthe Recommended Dietary Allowance (RDA) of iron. Iron is essential in transportingoxygen in the blood to all parts of the body, and an iron deficiency can causeanaemia.When cocoa is combined with ingredients such as milk, sugar, fruit and nutssignificant quantities of nutrients are provided- giving nutrition and energy as well asgreat taste. But as the products are often high in fats and sugars it is important thatconsumption is in moderation and that such products are consumed infrequently as"treats" - but are certainly not "empty calories" Cadbury | Kraft Food INC. | The Merger | Emotional Association | Youth | Mumbai 19
  • 20. M yths and Facts Eating Chocolate Is Inconsistent With A Healthy DietWith so much going for it, its unfortunate that chocolate is often surrounded bymyths and misconceptions that result in its unjustified reputation as an unhealthyfood. Scientists are beginning to dispel common myths about the concerns of eatingchocolate, demonstrating the ways in which chocolate can make us feel good whenenjoyed in moderation. One example of this would be the high levels ofcardiovascular friendly antioxidants contained in chocolate - in fact, dark chocolatein particular contains more antioxidants by volume than red wine. There is no needto exclude chocolate from a healthy diet as long as it is consumed responsibly and inthe context of the dietary needs of the individual and their energy balance.Chocolate causes Tooth DecayChocolate has sometimes been blamed for tooth decay but there is researchshowing that chocolate isnt as bad for your teeth as people think. Research hasindicated that naturally occurring substances in cocoa, such as tannins, may play arole in inhibiting plaque formation.Eating Chocolate gives you spotsDespite the persistence of this myth, research by the Pennsylvania School ofMedicine and also by the U.S. Naval academy13 found no link between acne andchocolate consumption.Chocolate has no nutritional valueFew people know that chocolate actually contains a number of important nutrients.Milk chocolate is a source of potassium, calcium and magnesium, while being low insodium. It also provides us with vitamins - including B1, B2 and E.Chocolate is AphrodisiacThough not definitively proven, recent research has indicated that this might not bea myth after all! A study conducted by San Raffaele hospital, Milan has found greaterlevels of sexual desire in the group that reported daily chocolate intake as opposedto those who did not eat chocolate. Cadbury | Kraft Food INC. | The Merger | Emotional Association | Youth | Mumbai 20
  • 21. H istory Of CadburyThe history of Cadbury as manufacturers of chocolate products in Birmingham datesback to the early part of the 19th century, when John Cadbury opened a shop in thecentre of the city, trading as a coffee and tea dealer. Soon a new side-line wasintroduced - cocoa and drinking chocolate, which he prepared himself using a mortarand pestle.The founding of the Cadbury business dates back to 1831 when John Cadbury firstmade cocoa products on a factory scale in an old malt house in Crooked Lane,Birmingham.In 1847 the business moved to larger premises in Bridge Street, which had its ownprivate canal spur linking the factory via the Birmingham Navigation Canal to themajor ports of Britain.Business continued at the Bridge Street site for 32 years and by 1878 the workforcehad expanded to 200, so more space was needed. This heralded the move toBournville and the building of what is now one of the largest chocolate factories inthe world. John Cadbury retired in 1861 handing over the business to his eldest sonsRichard and George. It is to their leadership that the success of the enterprise isowed as the company prospered.The origin of the group goes back over two centuries. Some of the most lovedinternational brands are from the stable of Cadbury Schweppes – Cadbury DairyMilk, Dr Pepper, Flake, Trebor Basset, Snapple, Motts and with the acquisition ofAdams, brands like - Halls, Clorets, Trident, Dentyne and Bubbas bubble gum rangewill now be part of the Group’s portfolio. 55,000 people populate the hummingoffices of Cadbury Schweppes across the globe.Cadbury Schweppes is the No.1 confectionery and third largest soft drinks companyin the world. They manufacture, market and distribute branded chocolates,confectionery and beverages that bring smiles to millions of consumers across 180countries.The Core purpose of Cadbury Schweppes is “Working better together to createbrands people love”.They are respectful of the social and natural environment in which they operate;supportive of our consumers, customers and colleagues; proud of our heritage, andpassionate about success.This passion for success led to the company expanding its business overseas andthus bringing the flavour of chocolate to people and tickling their taste buds. Cadbury | Kraft Food INC. | The Merger | Emotional Association | Youth | Mumbai 21
  • 22. Cadbury’s expanded their business to many countries like Australia, America,Canada, India etc.When Cadbury Dairy Milk chocolate was first introduced in the early 1900s it madean immediate impact quickly becoming the market leader. The success story hascontinued. It is still the top selling chocolate brand in the country and the CadburyMega Brands broad family of products today has an international retail valueapproaching US$1billion.Did You Know? As an international brand Cadbury Dairy Milk carries the same distinctive image all over the world. Wherever you buy a bar of Cadbury Dairy Milk the pack design will be exactly the same, only the language will be different. The famous slogan "glass and a half of full cream milk in every half pound" with the picture of milk pouring into the chocolate bar, is one of the all-time greats of British advertising. Cadbury | Kraft Food INC. | The Merger | Emotional Association | Youth | Mumbai 22
  • 23. H istory of Kraft food INC.All About Kraft Kraft Foods Inc. is a company with many different roots andfounders, all sharing a commitment to quality, a willingness to take risks and a spiritof innovation. Among the products now sold by Kraft Foods Inc. are so many “firsts”and innovations that a history of the company is almost a history of the foodindustry. Kraft traces its history to three of the most successful food entrepreneursof the late 19th and early 20th centuries —J.L. Kraft, who started his cheese business in 1903;C.W. Post, who founded Postum Cereal Company (later renamed General FoodsCorporation) in 1895; andOscar Mayer, who began his meat business in 1883.The Story of J.L. KraftThe history of KRAFT goes back to 1903, when, with $65 in capital, a rented wagonand a horse named Paddy, J.L. Kraft started purchasing cheese at Chicago’s WaterStreet wholesale market and reselling it to local merchants. Within a short time, fourof J.L. Kraft’s brothers joined him in the business, and, in 1909, they incorporated asJ.L. Kraft & Bros. Co. In 1914, J.L. Kraft and his brothers purchased their first cheesefactory in Stockton, Illinois. In 1915, they began producing processed cheese. J.L.Kraft’s method of producing processed cheese was so revolutionary, in 1916 heobtained a patent for it and in 1917 the company started supplying cheese in tins tothe U.S. Government for the armed forces in World War I.J.L. Kraft followed up on his success with processed cheese in tins by introducing oracquiring many additional products, including processed cheese in loaves, VELVEETAProcess Cheese, PHILADELPHIA Cream Cheese, MIRACLE WHIP Salad Dressing andKRAFT DINNER Macaroni and Cheese. Cadbury | Kraft Food INC. | The Merger | Emotional Association | Youth | Mumbai 23
  • 24. The success of J.L. Kraft and his company was noted by Thomas McInnerney,founder of National Dairy Products Corporation. In 1930, Kraft-Phenix CheeseCorporation (as it was then called) was acquired by National Dairy ProductsCorporation. Kraft continued to operate as an independent subsidiary of NationalDairy Products Corporation for many years, but eventually was absorbed into theoperating structure of the parent company, which changed its name to KraftcoCorporation in 1969 and again to Kraft, Inc. in 1976.The Story of C. W. PostIn 1895, C.W. Post made his first batch of POSTUM Cereal Beverage in a little whitebarn in Battle Creek, Michigan. With that step he entered the brand new retail cerealindustry. In 1897, he introduced POST GRAPE-NUTS Cereal, one of the first ready-to-eat cold cereals. He followed that success with a corn flakes product in 1904 whichhe called ELIJAH’S MANNA (renamed POST TOASTIES in 1908). In 1911, Postintroduced a refinement of his original product, POSTUM Instant Cereal Beverage.Post used marketing techniques that are now considered industry standards, butwhich were innovative for their time.Post died in 1914, but Postum Cereal Company continued to follow the formula forsuccess which he had established: selling high-quality, nutritious cereal productsthrough marketing and advertising techniques that appealed to the common manand woman. Then, in 1925, the company acquired the Jell-O Company, marking thestart of an aggressive acquisition effort. Over the next four years, Postum acquiredover a dozen companies and expanded its product line to more than 60 products.Some of the products acquired at that time included MINUTE Tapioca, BAKER’SChocolate, BAKER’S Coconut, LOG CABIN Syrup, MAXWELL HOUSE Coffee andCALUMET Baking Powder.By the time Postum purchased the rights to Clarence Birdseye’s new method forproducing quick-frozen foods in 1929, a change of name seemed appropriate. Sothe name of Birdseye’s company was changed from General Foods Company toFrosted Foods Company and the name of the parent corporation was changed toGeneral Foods Corporation. (The BIRDSEYE business was sold to Dean FoodsCompany in 1993.)Through the years, the management at General Foods refined and improved itsproduct line in part through acquisitions and divestitures and, in part, throughresearch and development. Internally-developed products included JELL-O Pudding Cadbury | Kraft Food INC. | The Merger | Emotional Association | Youth | Mumbai 24
  • 25. and Pie Fillings (1936), MAXWELL HOUSE Instant Coffee (1945), TANG FlavourCrystals (1957), DREAM WHIP Topping Mix (1957) and COOL WHIP WhippedTopping (1966).In 1981, General Foods expanded into a new product category by acquiring OscarMayer & Co., a leader in the processed meats industry. Four years later, GeneralFoods Corporation was acquired by Philip Morris Companies, Inc.After Philip Morris acquired Kraft, Inc. in 1988, the two food subsidiaries werecombined to form Kraft General Foods, Inc. in 1989.The Story of Oscar MayerOscar F. Mayer was a Bavarian immigrant who started his career in 1873 at the ageof 14 as a “butcher’s boy” in a Detroit meat market. By 1883 he had saved upenough money to lease a failing Chicago meat market.With the help of his brothers Gottfried and Max, he made the business such asuccess that the landlord refused to renew the lease when it came up for renewalin 1888. So that year Oscar Mayer and his brothers started again from scratch, thistime building their own meat market just down the street from the original leasedmarket.As a result of the Mayer brothers’ attention to quality and customer service, theiroriginal landlord was soon out of business.Extended product shelf life enabled Oscar Mayer to expand the distribution of itsproducts across the country.For nearly a century, Oscar Mayer remained an independent company ownedprimarily by descendants of the Mayer brothers who started it all. Then in 1981,Oscar Mayer stockholders elected to sell their company to General FoodsCorporation, which had the resources to stimulate even further growth for thebusiness. Four years later, Philip Morris Companies, Inc. acquired General FoodsCorporation, and in 1989 merged General Foods with the newly acquired Kraft, Inc.The Story of NabiscoThe history of Nabisco starts in 1792, when Pearson & Sons Bakery opened inMassachusetts to make “pilot bread,” a tough and durable biscuit to sustain sailorson long journeys. Then, in 1801, the Josiah Bent Bakery baked their first biscuitother than pilot bread. They were called crackers because of the sound they madewhen someone bit into them. In 1889, believing he could improve quality and Cadbury | Kraft Food INC. | The Merger | Emotional Association | Youth | Mumbai 25
  • 26. efficiency through combination, William Moore united Pearson, Bent and six othereastern bakeries into the New York Biscuit Company.For several decades National Biscuit Company, often referred to by the abbreviationN.B.C., grew by acquiring companies such as the F.H. Bennett Company, maker ofMILK-BONE Pet Products, and the Shredded Wheat Company, maker of TRISCUITWafers and SHREDDED WHEAT Cereal.During this time, the company was also busy developing numerous cookies andcrackers, many of which continue to be family favorites in the 21st century, such asOREO Cookies, RITZ Crackers, and HONEY MAID Graham Crackers.National Biscuit Company also expanded outside the United States with theacquisition of Christie Brown & Company in Canada.The name Nabisco first appeared on a new sugar wafer product in 1901, but thecorporate name did not change until 1971. In 1981 Nabisco merged with StandardBrands, maker of PLANTERS Nuts, LIFESAVERS Candies and other successfulbusinesses.About four years later, Nabisco Brands merged with R.J. Reynolds and added GREYPOUPON andA.1. brands to its portfolio. Philip Morris Companies, Inc. acquired Nabisco inDecember of 2000 and merged it with Kraft Foods, Inc.The Story of W.M. ChristieWilliam Mellis Christie — a man who changed the course of the Baking Industry —came to Canada from Huntley, Aberdeenshire, Scotland at the age of 19 in the year1848. He had apprenticed to the baking business in Turriff, Aberdeenshire for fouryears and, finding the prospects of the economy too limited, decided to move toToronto where he worked as a baker. In September of 1849 a partnership wasformed by James Mathers and Alexander Brown with William Christie as an assistantBaker and Traveling Salesman.When Mr. Mathers retired in 1850, Alexander Brown took William Christie into thepartnership. In 1853, Alexander Brown retired to the country and left the businesswith William Christie. In 1861, Christie suffered financial setbacks and Brownreturned to the business which then adopted the name Christie, Brown & Company.As of January, 1986 Christie Brown & Co. and Associated Biscuits of Canadaintegrated. Christie Brown & Co. now operates five Biscuit Bakeries in Toronto andMontreal, producing such well known products as Oreo Cookies, Premium Plus Cadbury | Kraft Food INC. | The Merger | Emotional Association | Youth | Mumbai 26
  • 27. Crackers and Ritz Crackers; Peek Frean Fruit Creme Cookies; Dad’s OatmealCookies, David Strawberry Tarts and Harnois Winsor Cookies.Kraft Foods Inc. todayIn January 1995, Kraft General Foods became Kraft Foods, Inc. and was reorganizedinto a single operating company. Kraft Foods continues to grow and change to meetchanging consumer needs, in part by building on its history — the legacy of its well-known brands, the character of its founders and the dedication of its employees.The company has continued to build on the innovative spirit of its past, with newproducts such as low-fat and fat-free products in a variety of categories.It has also grown through acquisitions, including BOCA BURGER and BALANCE BARin early 2000, and the family of Nabisco brands in December of 2000. Kraft FoodsInc.’s product portfolio is one of the finest in the world, including more than70 major brands such as KRAFT Cheeses, MAXWELL HOUSE and NABOB Coffees,POST ready-to-eat Cereals, OREO Cookies, RITZ Crackers, LIFESAVERS Candies,PLANTERS Nuts and Snacks, JELL-O Desserts, KOOL-AID Beverages, PHILADELPHIACream Cheese, TOMBSTONE Pizza, STOVE TOP Stuffing Mixes and MIRACLE WHIPSalad Dressing.And on 2nd February, 2010 Kraft food INC. acquired its single most giant competitor, Cadbury | Kraft Food INC. | The Merger | Emotional Association | Youth | Mumbai 27
  • 28. I mportant Dates1765: A Dorchester, Massachusetts, physician, Dr. James Baker, went intopartnership with a Irish chocolate-maker, John Hannon and made Americas firstchocolate mill.1780: The mill made the famous BAKERS chocolate.1831: John Cadbury first made cocoa products on a factory scale in an old malthouse in Crooked Lane, Birmingham.1847: The business moved to larger premises in Bridge Street, which had its ownprivate canal spur linking the factory via the Birmingham Navigation Canal to themajor ports of Britain.1861: John Cadbury retires, handing over the business to his eldest sons Richardand George1903: J.L. Kraft started a wholesale cheese business in Chicago.1905: YUBAN coffee blend was created by John Arbuckle.1906: Oscar Mayer is one of the first meatpackers to obtain the Federal MeatInspection stamp of approval.1907: Legend claims that when President Theodore Roosevelt was served a cup ofMAXWELL HOUSE coffee and he proclaimed that it was "GOOD TO THE LAST DROP."1914: J.L. Kraft & Bros. Co. opened their first cheese factory in Stockton, Illinois,within a year they begin producing process cheese in tins. The U.S. governmentprovided cheese in tins for the armed forces during World War I.1921: Louis Rich bought a truck and started his business in Rock Island, Illinois.1927: Edwin Perkins created a powered fruit drink called KOOL-ADE, later calledKOOL-AID. Perkins created KOOL-AID from his first product the popular soft drinksyrup called Fruit Smack.1928: Kraft introduced VELVEETA process cheese.1933: Kraft introduced MIRACLE WHIP salad dressing at Chicagos Century ofProgressWorlds Fair. Cadbury | Kraft Food INC. | The Merger | Emotional Association | Youth | Mumbai 28
  • 29. 1937: KRAFT Macaroni and Cheese Dinner was introduced with the advertisingslogan of "Make a meal for 4 in 9 minutes."1946: MAXWELL HOUSE instant coffee was introduced to the American public after itwas used by the armed forces in World War II.1950: KRAFT Deluxe process cheese slices, the first commercially packaged slicedprocess cheese was introduced.1952: CHEEZ WHIZ pasteurized process cheese spread was introduced.1954: Kraft introduced CRACKER BARREL brand natural cheese.1957: The General Foods Corporation introduced TANG, breakfast beverage crystals.1981: General Foods Corp. bought Oscar Mayer & Co.1983: Kraft introduced LIGHT N LIVELY lowfat yogurt, the first US yogurt in a six-pack.1989: Philip Morris Companies combined Kraft, Inc. and General Foods Corporationto form Kraft General Foods, the largest food company in the U.S.1989: DI GIORNO brand refrigerated pastas and sauces were introduced.1990: Cadbury Dairy Milk was introduced.1993: Kraft General Foods acquired NABISCO ready-to-eat cold cereals from RJRNabisco.1995: Kraft General Foods was renamed Kraft Foods, Inc. DI GIORNO RISING CRUSTpizza was introduced.[1997: Sparkling White Grape flavored JELL-O gelatin was introduced in celebration ofthe brands 100th anniversary.2010: Cadbury was acquired by Kraft food INC. Cadbury | Kraft Food INC. | The Merger | Emotional Association | Youth | Mumbai 29
  • 30. Chapter 3: Brand Prism – Cadbury‘In much of society, research means to investigate something you donot know or understand.’– Neil Armstrong Cadbury | Kraft Food INC. | The Merger | Emotional Association | Youth | Mumbai 30
  • 31. B rand Prism – Cadbury  Purple  Young  White  Beautiful  Brown color  Slim & sleek Relationship Culture  Friendly  Chocolate that suits  Caring the taste of all the  Loyal ages  Continues innovation to provide different flavors and taste to the customers Cadbury has created a I Feel Young And Alive 360O Ad Campaigns for people across all the age groupsCadbury | Kraft Food INC. | The Merger | Emotional Association | Youth | Mumbai 31
  • 32. Chapter 4: Company Overview‘Research is what Im doing when I dont know what Im doing.’– Wernher von BraunCadbury | Kraft Food INC. | The Merger | Emotional Association | Youth | Mumbai 32
  • 33. C ompany OverviewCadbury India is a fully owned subsidy of Kraft Foods Inc. The combination of KraftFoods and Cadbury creates a global powerhouse in snacks, confectionery and quickmeals.With annual revenues of approximately $50 billion, the combined company is theworlds second largest food company, making delicious products for billions ofconsumers in more than 160 countries. We employ approximately 140,000 peopleand have operations in more than 70 countries.In India, Cadbury began its operations in 1948 by importing chocolates. After 60years of existence, it today has five company-owned manufacturing facilities atThane, Induri (Pune) and Malanpur (Gwalior), Bangalore and Baddi (HimachalPradesh) and 4 sales offices (New Delhi, Mumbai, Kolkota and Chennai). Thecorporate office is in Mumbai.Our core purpose "make today delicious" captures the spirit of what we are trying toachieve as a business. We make delicious foods you can feel good about. Whetherwatching your weight or preparing to celebrate, grabbing a quick bite or sitting downto family night, we pour our hearts into creating foods that are wholesome anddelicious.Currently, Cadbury India operates in four categories viz. Chocolate Confectionery,Milk Food Drinks, Candy and Gum category. In the Chocolate Confectionery business,Cadbury has maintained its undisputed leadership over the years. Some of the keybrands in India are Cadbury Dairy Milk, 5 Star, Perk, Éclairs and Celebrations.Cadbury enjoys a value market share of over 70% - the highest Cadbury brand sharein the world! Our billion-dollar brand Cadbury Dairy Milk is considered the "goldstandard" for chocolates in India. The pure taste of CDM defines the chocolate tastefor the Indian consumer.In the Milk Food drinks segment our main product is Bournvita - the leading MaltedFood Drink (MFD) in the country. Similarly in the medicated candy category Halls is Cadbury | Kraft Food INC. | The Merger | Emotional Association | Youth | Mumbai 33
  • 34. the undisputed leader. We recently entered the gums category with the launch ofour worldwide dominant bubble gum brand Bubbaloo. Bubbaloo is sold in 25countries worldwide.Since 1965 Cadbury has also pioneered the development of cocoa cultivation inIndia. For over two decades, we have worked with the Kerala Agriculture Universityto undertake cocoa research and released clones, hybrids that improve the cocoayield. Our Cocoa team visits farmers and advise them on the cultivation aspects fromplanting to harvesting. We also conduct farmers meetings & seminars to educatethem on Cocoa cultivation aspects. Our efforts have increased cocoa productivityand touched the lives of thousands of farmers. Hardly surprising then that the Cocoatree is called the Cadbury tree!Today, as a combined company with an unmatched portfolio in confectionery,snacking and quick meals, we are poised in our leap towards quantum growth. Weare the worlds No.1 Confectionery Company. And we will continue to “make todaydelicious”!C adbury World Wide Cadbury India is a fully owned subsidy of Kraft Foods Inc. The combination ofKraft Foods and Cadbury creates a global powerhouse in snacks, confectionery andquick meals. They are currently the worlds No.1 confectionery and biscuit company.They are also the world’s second-largest food company with sales in approximately160 countries. They employ approximately 140,000 people.With an incredible brand portfolio, they contrive to make a delicious difference,today and everyday.Heritage: They have come a long way since J.L Kraft started selling cheese from ahorse drawn wagon in 1903. Hard work, imagination and commitment to bring theworld its favorite foods has helped them grow into a company that touches morethan a billion people in 160 countries. Everyday. One at a time.Some fast facts on the combined company:Global ReachApproximately $50 billion in revenues25%+ of global revenue from emerging markets1 in global confectionery1 in global biscuits More than 50% of global revenue from snacks and confectioneryBrand Portfolio11 brands with more than $1 billion in revenue70+ brands with more than $100 million in revenue40+ brands over 100 years old Cadbury | Kraft Food INC. | The Merger | Emotional Association | Youth | Mumbai 34
  • 35. C orporate Social ResponsibilityMigratory birds stop over at our Bangalore factoryWater is a precious resource. As part of Cadbury Indias effortsto continuously increase water conservation our Bangalorefactory has constructed a check dam to store the rainwater.This dam not only acts as a major ground water replenishingsource for the bore wells in the factories and surroundingcommunity, but is also a stopover location for some of the migratory birds!Dam at Bangalore factoryPioneering cocoa cultivation in IndiaSince 1974 Cadbury has pioneered the development of cocoacultivation in India. For over two decades, we have workedwith the Kerala Agriculture University to undertake cocoaresearch and released hybrids that improve the cocoa yield.Our efforts have increased cocoa productivity and touched thelives of thousands of farmers. Hardly surprising then that theCocoa tree is called the Cadbury tree.A Wards Asian Marketing Effectiveness Awards 08Asian Marketing Effectiveness Awards 2008 for BournvitaFolk/Fusion campaign - GOLD award for the "Best Insights andStrategic Thinking" and SILVER award for the Most Effective Use of Advertising.The Asian Marketing Effectiveness Awards are the regions most prestigious awardsthat celebrate resourceful Asian marketing. They are designed to set the standardfor effective marketing within the region, and aim to uncover the campaigns thatshow results through innovative spirit and combining creativity with effectiveness tobuild world class brands.Cadbury India has been ranked as the 7th Great Place to Work and theNo. 1 FMCG company in India in 2008, by the Great Place to WorkInstitute. Cadbury | Kraft Food INC. | The Merger | Emotional Association | Youth | Mumbai 35
  • 36. This study, in its fifth year in India , has a presence in 30 countries and is the oldest,most comprehensive and respected workplace study worldwide. Over two hundredcompanies throughout India participated in the survey, which measured the degreeof satisfaction of employees with their place of work and picked out the bestworking environments. This is the fourth time we have featured amongst the GreatPlaces to Work in India . We were ranked 10th in 2003, and were among the top 25in 2004 and 2005The prestigious ABBY awards, held in March, recognise creativeexcellence in the Indian Advertising Industry. The Ulta Perk campaignwon four Silver Awards in total and the Cadbury Dairy Milk Campaign,Miss Palampur, also won a Silver Award. This year Cadbury alsosponsored the new Young ABBY Award.Cadbury India has been ranked 5th in the FMCG sector, in a survey on Indiasmost respected companies by sector conducted by Business World magazinein 2007.The Great Place to Work Institute study listed Cadbury India as a Great Place towork in 2005 for the third time in a row. Incidentally, Cadbury was in the Top 25 in2003, 2004 and 2005 too. Cadbury | Kraft Food INC. | The Merger | Emotional Association | Youth | Mumbai 36
  • 37. Chapter 5: Brands‘All my knowledge comes from research.’– Stan Sakai Cadbury | Kraft Food INC. | The Merger | Emotional Association | Youth | Mumbai 37
  • 38. C adbury Dairy MilkThe story of Cadbury Dairy Milk started way back in 1905 at Bournville, U.K.,but the journey with chocolate lovers in India began in 1948.The pure taste of Cadbury Dairy Milk is the taste most Indians crave forwhen they think of Cadbury Dairy Milk.The variants Fruit & Nut, Crackle and Roast Almond, combine the classictaste of Cadbury Dairy Milk with a variety of ingredients and are very popularamongst teens & adults.Recently, Cadbury Dairy Milk Desserts was launched, specifically to cater tothe urge for something sweet after meals.Cadbury Dairy Milk has exciting products on offer - Cadbury Dairy Milk Wowie,chocolate with Disney characters embossed in it, and Cadbury Dairy Milk 2 in 1, adelightful combination of milk chocolate and white chocolate. Giving consumers anexciting reason to keep coming back into the fun filled world of Cadbury.JourneyCadbury Dairy Milk has been the market leader in the chocolate category for years.And has participated and been a part of every Indians moments of happiness, joyand celebration. Today, Cadbury Dairy Milk alone holds 30% value share of theIndian chocolate market.In the early 90s, chocolates were seen as meant for kids, usually a reward or abribe for children. In the Mid 90s the category was re-defined by the very popular`Real Taste of Life campaign, shifting the focus from `just for kids to the `kid in all ofus. It appealed to the child in every adult. And Cadbury Dairy Milk became theperfect expression of spontaneity and shared good feelings.The Real Taste of Life campaign had many memorable executions, which people stillfondly remember. However, the one with the "girl dancing on the cricket field" hasremained etched in everyones memory, as the most spontaneous & un-inhibitedexpression of happiness.This campaign went on to be awarded The Campaign of the Century, in India at theAbby (Ad Club, Mumbai) awards.In the late 90s, to further expand the category, the focus shifted towards wideningchocolate consumption amongst the masses, through the Khanewalon Ko Khane KaBahana Chahiye campaign. This campaign built social acceptance for chocolateconsumption amongst adults, by showcasingcollective and shared moments.More recently, the Kuch Meetha Ho Jaayecampaign associated Cadbury Dairy Milk withcelebratory occasions and the phrase "PappuPass Ho Gaya" became part of street language.It has been adopted by consumers and today isused extensively to express joy in a moment ofachievement / success. Cadbury | Kraft Food INC. | The Merger | Emotional Association | Youth | Mumbai 38
  • 39. The interactive campaign for "Pappu Pass Ho Gaya" bagged a Bronze Lion at theprestigious Cannes Advertising Festival 2006 for Best use of internet and newmedia. The idea involved a tie-up with Reliance India Mobile service and allowedstudents to check their exam results using their mobile service and encouragedthose who passed their examinations to celebrate with Cadbury Dairy Milk.The Pappu Pass Ho Gaya campaign also went on to win Silver for The BestIntegrated Marketing Campaign and Gold in the Consumer Products category at theEFFIES 2006 (global benchmark for effective advertising campaigns) awards.Did You Know?Cadbury Dairy Milk emerged as the No. 1 most trusted brand in Mumbai forthe 2005 edition of Brand Equitys Most Trusted Brands survey.During the 1st World War, Cadbury Dairy Milk supported the war effort. Over2,000 male employees joined the armed forces and Cadbury sent books,warm clothes and chocolates to the front. Cadbury | Kraft Food INC. | The Merger | Emotional Association | Youth | Mumbai 39
  • 40. P erk A pretty teenager; a long line, and hunger! Rings a bell? That was howCadbury launched its new offering; Cadbury Perk in 1996. With its light chocolateand wafer construct, Cadbury Perk targeted the casual snacking space that wasdominated primarily by chips & wafers. With a catchy jingle and tongue in cheekadvertising, this anytime, anywhere snack zoomed right into the hearts ofteenagers.Raageshwari started the trend of advertising that featured mischievous, bubblyteenagers getting out of their stuck and hungry situations by having a CadburyPerk. Cadbury Perk became the new mini snack in town and its proposition "Thodi sipet pooja" went on to define its role in the category.As the years progressed, so did the messaging, which changed with changes in theconsumers way of life. To compliment Cadbury Perks values, the bubbly andvivacious Preity Zinta became the new face of Perk with the hunger strikecommercial in the mid 90s.In the new millennium, Cadbury Perk moved beyond just owning hunger to a"Kabhi bhi kaise bhi" position, because the urge for Cadbury Perk could strikeanytime and anywhere.With the rise of more value-for-money brands in the wafer chocolate segment,Cadbury Perk unveiled two new offerings - Perk XL and XXL.The temptation to have more of Cadbury Perk was made even greater with thelaunch of Cadbury Perk Minis in 2003 for just Rs. 2/-In 2004, with an added dose of Real Cadbury Dairy Milk and an improved wafer,Perk became even more irresistible. The product was supported in the market with anew look and a new campaign. The advertisement spoke of the irresistible aspect ofthe brand, with Baaki sab Bhoola de becoming the new mantra for Cadbury Perk.Did you know? Cadbury Perk advertising has been a launch pad for Bollywood stars - PreityZinta, Raageshwari, Gayatri Joshi and Amrita Rao, were all Perk models before they made it big on cinema screens. Cadbury | Kraft Food INC. | The Merger | Emotional Association | Youth | Mumbai 40
  • 41. 5 Star Chocolate lovers for a quarter of a century have indulged their taste buds witha Cadbury 5 Star. A leading knight in the Cadbury portfolio and the second largestafter Cadbury Dairy Milk with a market share of 14%, Cadbury 5 Star moves fromstrength to strength every year by increasing its user base.Launched in 1969 as a bar of chocolate that was hard outside with soft caramelnougat inside, Cadbury 5 Star has re-invented itself over the years to keep satisfyingthe consumers taste for a high quality & different chocolate eating experience.One of the key properties that Cadbury 5 Star was associated with was its classicGold colour. And through the passage of time, this was one property that both, thebrand and the consumer stuck to as a valuable association.Cadbury 5 Star was always unique because of its format and any communicationhighlighting this uniqueness, went down well with the audiences. From deliciouslyrich, youd hate to share it in the 70s, to the lingering taste of togetherness&Softand Chewy 5 Star in the late 80s, the communication always paid homage to theproduct format.More recently, to give consumers another reason to come into the Cadbury 5 Starfold, Cadbury 5 Star Crunchy was launched. The same delicious Cadbury 5 Star wasnow available with a dash of rice crispies.Cadbury 5 Star & Cadbury 5 Star Crunchy now aim to continue the upward trend.This different and delightfully tasty chocolate is well poised to rule the market as anextremely successful brand.Did you know? Cadbury 5 Star played an adept cupid for young couples in love in the 70s. In fact, Cadbury 5 Star was a way of professing undying love for the significant other. Cadbury | Kraft Food INC. | The Merger | Emotional Association | Youth | Mumbai 41
  • 42. C elebration Cadbury Celebrations was aimed at replacing traditionalgifting options like Mithai and dry- fruits during festive seasons.Cadbury Celebrations is available in several assortments: Anassortment of chocolates like 5 Star, Perk, Gems, Dairy Milk andNutties and rich dry fruits enrobed in Cadbury dairy milk chocolatein 5 variants, Almond magic, raisin magic, cashew magic, nutbutterscotch and caramels.The super premium Celebrations Rich Dry Fruit Collection which is afestive offering is an exotic range of chocolate covered dry fruits andnuts in various flavours and the premium dark chocolate range which is exotic darkchocolate in luscious flavours.Cadbury Celebrations has become a popular brand on occasions such as Diwali,Rakhi, Dussera puja. It is also a major success as a corporate gifting brand. Thecommunication is based on the emotional route and the tag line says "rishte paknedo" which fits with the brand purpose of strengthening your relationships withsomething sweetDid you know? The "Rishte Pakne do" jingle was penned by noted writer Gulzar. Cadbury | Kraft Food INC. | The Merger | Emotional Association | Youth | Mumbai 42
  • 43. T emptations Ever see people hide away theirchocolate since they don’t want to shareit! If you have, then it’s likely to be a barof Cadbury Temptations! CadburyTemptations is a range of deliciouspremium chocolate in fiveflavours.Research revealed a niche segment of“ chocoholics” - those exposed tointernational chocolates and those wholove a variety of chocolates but possiblyfind the price of international chocolates too high. Cadbury Temptations is a rangetargeted at this segment of discerning chocolate lovers.The Cadbury Temptations range is available in 5 delicious flavour variants - RoastAlmond Coffee, Honey Apricot, Mint Crunch, Black Forest and Old Jamaica. With itsinternational quality chocolate Temptations soon became a popular brand for"chocoholics"The advertising positioned Cadbury Temptations as a chocolate range so deliciousthat it was "too good to share”Did you know? Cadbury Temptations advertising won an advertising effectiveness - EFFIE award in 2001 Cadbury | Kraft Food INC. | The Merger | Emotional Association | Youth | Mumbai 43
  • 44. clairÉ Eclairs was first discovered by a local confectionery firm in London,England inthe 1960s. The firm then became part of Cadbury in 1971makingCadbury Eclairs thesecond largest brand in the company.The experience of eating a Cadbury Dairy MilkEclair is truly uniquebecause of its creamy caramel exterior and rich Cadbury DairyMilkchocolate at the center. In 2006 Cadbury Dairy Milk Eclairs launcheda crunchyEclair with a hard caramel outside and delicious Cadbury Dairy Milk chocolate insidecalled Cadbury Dairy Milk Eclairs Crunch.Journey:In India, Cadbury Dairy Milk Eclairs has been themost preferred brand inthe Eclairs category foryears and has always been a favourite withconsumers.Eclairs advertising over the years have talkedabout the mesmerizing taste of Eclairs because of the Cadbury Dairy Milk chocolateit contains at its center. The Kar De Dil Pe Jadoo campaign illustrated this in ayouthful college context. The Eclairs Crunch variant has also had an encouragingresponse from both teens and pre-teens. Currently, the chewy and the crunchyvariants are both enjoyed by the Eclair consumer.Did you know? A sign in front of Nigeria factory describes Choclairs as "the sweet with heart on the inside”. Cadbury | Kraft Food INC. | The Merger | Emotional Association | Youth | Mumbai 44
  • 45. G ems Cadbury Gems occupies a veryspecial place in the hearts of kids; presentand past. Its unique shape, size, coloursand format instantly set it apart. Thesetasty, colourful, chocolate buttons havebecome an integral part of the lives ofboth children and adults.Launched in 1968, Cadbury Gems hascaptured the fancy of children for morethan 4 decades now. Supported by a number of popular TVCs since the Eighties,Gems is uniquely positioned because of its chocolate taste, colourful buttons andmultiplicity. The taste and fun associated with eating Cadbury Gems and the joy ofsharing it with friends has also made the brand a source of nostalgia for olderconsumers. Simply put, eating Gems brings happiness, fun and mischief to a kidsworld. Which is why, Cadbury Gems has always had Fun and Masti as the propositionin all its communication.Gems, available in a Pouch and a Carton, is also available in a Re. 1 pouch.Do you know? The colourful world of Cadbury Gems has six colours – Red, Green, Pink, Yellow, Orange and Blue. Cadbury | Kraft Food INC. | The Merger | Emotional Association | Youth | Mumbai 45
  • 46. H alls Halls accounts for 50% of international cough drop sales and is the leadingsugar confectionery brand in the world. In 1930’s, the Hall brothers invented itsMentho-Lyptus formula, using a combination of menthol and eucalyptus, and beganproducing cough drops. The cough drops were introduced into the US during themid-1950s. Warner-Lambert recognised the potential of the product and acquiredHalls in 1964. In 1971, Warner Lambert began selling Halls under the Adams family,and the first national television campaign was aired in the US & the results were aresounding success.Our Journey:Halls was first launched in India in 1968 & soon established itselfasa ‘therapeutic’ candy competing in the cough lozenge market.Halls has been sold in India as part of the Pfizer & Warner Lambert networks beforeit came into the Cadbury fold in 2003 as part of a global merger with AdamsConfectionery.Halls has had a colourful advertising history in India & was infact, one of the earliestbrands to advertise on television in India. In the 1980’s, Ad’s featuring MeenakshiSheshadri and later, Vijeta Pandit on its unique ‘vapour action’ formula with a classicHalls Jingle were aired which established the brand firmly in the market. In the 90’s,Halls advertising adopted a different take with its ‘Traffic Jam’ Ad where Hallsrestores order to a situation of chaos & the early 2000’s saw Halls advertising on the‘refreshment’ platform. Over the years Halls has been strongly positioned on the`soothes sore throat ’ benefit in the consumers mind.Halls continues to be one of the leading mint brands in India even in the changedcompetitive context.Did You Know? Halls is marketed in 24 different countries around the world & is offered in over 26 flavours. Halls produced the largest sweet in the world in 1964. Weighing 76kilos, the sweet was put on exhibition in New York. Halls accounts for more than 50% of international cough drop sales. In 2002, people consumed 100,000 tons of Halls! Cadbury | Kraft Food INC. | The Merger | Emotional Association | Youth | Mumbai 46
  • 47. Chapter 6: Advertisements‘Advertising people who ignore research are as dangerous as generalswho ignore decodes of enemy signals.’– David Ogilvy Cadbury | Kraft Food INC. | The Merger | Emotional Association | Youth | Mumbai 47
  • 48. A dvertisementsCadbury Dairy Milk launches a newcampaign Shubh AarambhCadbury India, launched a new campaign,“Shubh Aarambh”. This campaign is basedon the concept of the Indian tradition ofhavingsomething sweet before every auspiciousoccasion, with the belief that it leads to afavourable outcome. Over the years, CDMhas been a special part of every Indiansmoments of happiness, joy andcelebration. This year, for the first timeever, CDM urges consumers to also enjoytheir much loved chocolate before embarking on an important task, in anticipationof a successful outcome.Over the last six decades, CDM has always given its consumers numerous reasons tocelebrate every joyous occasion. Its campaigns right from, “The real taste of life’ to‘Kuch meetha ho jaye’ have been instrumental in bringing CDM closer to the heartof every Indian chocolate aficionado. With the more recent “Pappu pass ho gaya”and “Miss Palampur” campaigns, CDM created a special space for itself duringmoments of celebration amongst large communities. The latest “Payday” campaigngave CDM lovers another moment of happiness that life has to offer. This year,“Shubh Aarambh” extends within the "Kuch Meetha Ho Jaye" space, urgingconsumers to enjoy a bar of CDM stating, “Koi bhi shubh kaam karne se pehle kuchmeetha khalena chahiye. Kaam acha hota hai”.The new commercial opens with a young girl standing at a bus stop relishing a bar ofCDM, as a young boy comes up to her and requests her for a cube of the chocolate.Astonished, the girl asks if she knows him, to which the he nods in negation. To this,the girl nonchalantly then asks him for a reason for her to share her CDM. The boythen explains to the girl that his mother tells him that before starting anythingauspicious, it is a must to have something sweet which then leads to success. The girlponders over this, only to then reluctantly give him a cube of CDM. After the boyrelishes the chocolate, the girl inquisitively questions him as to what auspicious workwas he planning to do. To this, with eyes of hope, the boy promptly tells her that hewas thinking of dropping her back home. Amazed, the girl looks at him, and the boysmiles sweetly at her. The film closes with the coy girl blushing and the boy smilinghaving silently understood her reciprocation. The VO then states, “Shubh Aarambh.Kuch Meetha Ho Jaye Cadbury | Kraft Food INC. | The Merger | Emotional Association | Youth | Mumbai 48
  • 49. Cadbury 5 Star launches its new television commercialTo further build on the strong connect that patrons share with Cadbury 5 Star, thebrand recently launched its new television commercial. In line with its “Jo khaye,kho jaaye” advertising campaign, the commercial takes the brand proposition onestep forward, of losing one self in every bite of the delicious Cadbury 5 Star. Withhumour as the trademark of all its communication, the film uses friendship as aplatform to reinforce the brand’s appeal amongst teenagers.Speaking of the campaign, a Cadbury official said, “Cadbury 5 Star is the secondlargest brand in the Indian chocolate market after Cadbury Dairy Milk and its uniqueinvolving taste with Chocolate, Caramel and Nougat makes for sheer indulgence.Getting lost in the taste of 5 Star has been a successful platform for the brand for last3 years, and over several varied creative executions on this platform, the brand hasposted high double digit growths consistently year after year."This TVC follows the ‘thief’ commercial, which urged consumers to be good citizenswith its tagline “Ek acche nagrik bane, 5 Star khane walo ki madat karein!”. Takingthe theme “Jo khaye, kho jaaye” forward, the new commercial showcases how twolong lost friends Ramesh and Suresh are ecstatic to meet each other, only to keepforgetting their meeting after getting lost in every bite of Cadbury 5 Star.Speaking on the creative thought of the commercial, Abhijit Avasthi, NationalCreative Director, Ogilvy & Mather India said, “The Lost in the taste of 5 Starproposition and the quirky brand of humour has been highly appreciated in the past.So we wanted to continue the theme with yet another interesting rendition.”The TVC opens with Ramesh and Suresh who happen to visit the same local stall tobuy a Cadbury 5 Star. As the two unwrap their bars of Cadbury 5 Star, theycoincidently look at each other. Just then, they realize that they are long lost friendsand excitedly embrace each other. As they begin to chat, they take a bite of their barof Cadbury 5 Star. Instantly, they get lost in the taste of the chewy chocolate. Thishappens for the second time. And it happens for the third time too. The two friendsare ecstatic to meet each other, after getting lost in the taste of the Cadbury 5 Star.And they embrace each other again. The commercial closes with the stall ownerbaffled, with the VO stating “Cadbury 5 Star ki har bite mein hai Chocolate, Caramelaur Nougat. Toh bus khaiye, aur sab….bhool jaiye!” Cadbury | Kraft Food INC. | The Merger | Emotional Association | Youth | Mumbai 49
  • 50. Sapno se tu race laga le with Perk with Glucose EnergyCadbury India’s iconic youth brand Perk - packed with Glucose Energy has launched anew TVC targeting the Youth on the run.Teens today lead a hectic life that requires them to be on the go, chasing theirdreams – moving from one activity to another nonstop through the day and they doencounter moments when they crave for an instant recharge.The new Perk TVC with the tag line ‘Sapno se tu race laga le’ targeted at 14-18 yearolds beautifully captures a typical low moment in a busy day spent chasing one’sdreams and shows how Perk with glucose energy fulfills the need for an instantenergy recharge.V. Chandramouli, Executive Director, HR & Strategy, Cadbury commenting on thecampaign said, “Perk with Glucose Energy is the result of an extensive in-houseresearch program that is aimed to appeal to consumers taste buds and provide anenergy benefit as well. Through this new communication we aiming to drive homethe message of tasty re-charge of energy"The new TVC for Perk opens with a boy waking up early in the morning and rushingto his college. He moves from one activity to another through the entire day. Later, Cadbury | Kraft Food INC. | The Merger | Emotional Association | Youth | Mumbai 50
  • 51. in the evening he arrives at a rock show but as he sits on the drummer’s seat toperform, he feels totally exhausted. A band member asks him if he will be able toperform. At this moment, the boy takes out the new Perk from his drum sticks kitand after consuming the bar feels energised and gives a power packed performancein front of a huge crowd. The film ends with the bass drums electrified with CadburyPerk written on it.Cadbury Perk is among the leading brands from the Cadbury stable and since itslaunch in 1996 has been a preferred taste of casual snacking with its wafer construct. Cadbury | Kraft Food INC. | The Merger | Emotional Association | Youth | Mumbai 51
  • 52. Cadbury 5 Star launches a new TVC for its Fruit & Nut variantCadbury 5 Star, the second largest chocolate brand in the Cadbury portfolio, haslaunched a new TVC for its variant 5 Star Fruit & Nut to strengthen the indulgent 5Star chocolate experience.Launched in 1969 as a bar of chocolate that was hard outside with soft caramelnougat inside, Cadbury 5 star has re-invented itself over the years to keep satisfyingthe consumers taste for a high quality and different chocolate eating experience.The new TVC which revolves around the theme “Jo Khaye, Kho Jaaye” combines thegreat taste indulgence of 5 Star Fruit & Nut and enhances credence to the brandUSP.The TVC opens with a teacher taking class attendance. She calls out names ofstudents which are actually the ingredients of the product. After calling out the lastname she puts her pen down and looks at the class. She sees a bar of 5 Star Fruit &Nut seated on one of the benches with the rest of the class empty. The teacher yellsat the class asking “Where are you all?” Again the bar of 5 Star Fruit & Nut is shownsitting on the bench with the teacher looking at it totally surprised! A VO informs herthat she won’t be able to see chocolate, nougat, caramel, raisins, almonds andcashew nuts as they all are inside 5 Star Fruit & Nut. The teacher eats the chocolateand gets completely involved in its taste. The film ends with the teacher slapping thebar of 5 Star Fruit & Nut. Cadbury | Kraft Food INC. | The Merger | Emotional Association | Youth | Mumbai 52
  • 53. Commenting on the campaign, Sanjay Purohit, Executive Director – Marketing,Cadbury India said, “The new TVC seeks to marry a consumer insight with theproduct USP in a fun & humorous manner. The TVC will play a momentous role inenhancing the brand connects with both brand loyalists and inquisitive potentialcustomers.” Cadbury | Kraft Food INC. | The Merger | Emotional Association | Youth | Mumbai 53
  • 54. Cadbury launches CDM SilkSmoother, Creamier and more curvy for thedivine melt-in-mouth experienceMumbai, January 27, 2009: Cadbury India Ltd. recently announced the launch ofCadbury Dairy Milk Silk its premium offering under the Cadbury Dairy Milk brand(CDM). Smoother, creamier and chunkier the new CDM Silk chocolate has beenformulated to provide superior ‘eat’ experience.Developed specially for the Indian consumer, the new CDM Silkprovides the most divine ‘Melt in the Mouth’ feel. CDM Silk is finer than the finestchocolates and comes in a premium, internationally developed packaging.Attractively priced at Rs. 49 for 69 gms and Rs. 99 for 160 gms bar the new CDM Silkwill be available in Milk chocolate, Roast Almond and Fruit & Nut variants.Since its launch in 1948, CDM has been Cadbury’s flagship brand in India. CDM is thegold standard for chocolates and stands for the best tasting chocolate amongst allconsumers. Over the years, CDM has successfully built a unique relationship withconsumers across age groups.Sanjay Purohit, Executive Director - Marketing, Cadbury India Ltd. commenting onthe launch, said, “Our newest offering, CDM Silk has been specially formulated tocater to the Indian consumers craving for smoother, creamier and finer chocolateavailable internationally. Infact, the initial consumer feedback during the testmarketing has been very encouraging and many perceive CDM Silk to be superior toother international chocolate brands available in the country.”CDM Silk will be promoted extensively through a 3600 campaign created by Ogilvy &Mather Advertising. The marketing communication will encompass TV, print,outdoor and internet Cadbury | Kraft Food INC. | The Merger | Emotional Association | Youth | Mumbai 54
  • 55. Cadbury Dairy Milk in an all new premium, international packCadbury’s much loved flag-ship brand Cadbury Dairy Milk now comes to its loyalconsumers’ in a brand new, premium packaging. The change into a premium,international packaging is the first in 7 years for the biggest chocolate brand in India!The fine purple and gold packaging portrays the rich and creamy taste of Cadburychocolate. The smooth and sophisticated eating experience of India’s most lovedchocolate brand is creatively conveyed in the new international pack with the goldCadbury logo.“The new international packaging while retaining the color purple, a color that hasbecome synonymous with Cadbury, creatively works the other graphic elements. Thegold Cadbury Logo embodies the premium and sophisticated eating experience ofDairy Milk , while the real chocolate chunk on the pack enhances its chocolateappeal. The new Dairy Milk logo against the all purple backdrop helps reinstates thegoodness of milk in CDM”, said Sanjay Purohit, Executive Director- Marketing ,Cadbury India .The chocolate that has a huge fan base across many countries will now also have amore integrated look and feel. The new design is the international pack sold acrossthe world Cadbury | Kraft Food INC. | The Merger | Emotional Association | Youth | Mumbai 55
  • 56. Cadbury Spreads Mithas and brings people closer this DiwaliOver the last six decades, Cadbury Dairy Milk (CDM) has always been a part of everyIndians moments of happiness, joy and celebration. It’s many successful campaigns– right from ‘Sometimes Cadbury can say it better than words’ to ‘Kuch meetha hojaye’ - have not just been instrumental in building the brand but have also helpedachieve phenomenal penetration into various markets. This festival season Cadburyis embarking on a journey to encourage people to multiply their joy by makingothers happy. This message is being conveyed through the new CDM Diwalicommercial which revolves around the theme “Iss Diwali Kyun na kuch Mithas hojaye”The concept of Cadbury’s new Diwali campaign is to seed the thought of sharing andbringing happiness to people’s lives, through the message “Iss Diwali Kyun ka kuchMithas ho jaye”. So be it a simple act of kindness or taking the effort to fulfillcherished wishes, Cadbury hopes to motivate thoughts and behaviour that bring asmile. The main focus of the TVC is to awaken & inspire people to appreciate thosepeople around them who contribute a lot to their lives but whose efforts they rarelyrecognize and reciprocate.Sanjay Purohit, Executive Director - Marketing, Cadbury India Ltd said, “This newcampaign gives a different and altruistic twist to Diwali celebrations. While keepingthe core promise of spreading happiness intact, the commercial encourages peopleto spread happiness in a larger sphere- the community, thus creating “Mithass”! Thecommunication also gives the Indian tradition a refreshing new approach by bringingthe lives of the people closer and thus spreading cheerfulness and delight in eachones hearts”.The commercial begins with two postmen entering a quiet and dull neighborhood.One of the postmen observes that the society is too silent for the festive season ofDiwali. Hence they decide to intentionally interchange the letters of the residents ofthe society. As each resident start reading the letters, they are stunned to read thegood news, but soon realize that the letters belong to their neighbours. Theytherefore come out to congratulate each other. Cadbury | Kraft Food INC. | The Merger | Emotional Association | Youth | Mumbai 56
  • 57. According to Indian tradition good news is shared by distributing sweets. One of theresidents therefore insists that they should share good news with their neighbourwith Cadbury Dairy Milk chocolates. This results in people coming out of their homesand sharing each other’s good news and happy moments with Cadbury Dairy Milkchocolate.The creative approach has taken the strategy forward beautifully. The commercialcaptures the infectious happy mood of the residents of the society, and in thatcontext, pitches the brand in a compelling manner Cadbury | Kraft Food INC. | The Merger | Emotional Association | Youth | Mumbai 57
  • 58. CADBURY Bournville Fine Dark ChocolateAs India’s taste for indulgence grows, Cadbury today unveils an exciting productinnovation… offering consumers the sheer luxury and goodness of dark chocolate totreat themselves.Cadbury India Ltd. today announced the launch ofCADBURY BOURNVILLE FINE DARK CHOCOLATE,the first dark chocolate product from the much-loved Cadbury India basket.Globally, dark chocolate is the fastest growingsegment within the confectionary category. It isloved by millions of consumers because of the richtaste and intrinsic health and well-being benefits(please refer to the Chocology Report in yourpress kit). The launch of CADBURY BOURNVILLEFINE DARK CHOCOLATE in India is timely, as it willcater to the evolving consumer preferences andserve as a treat for consumers looking for amoment of sheer indulgence.Made from the finest ingredients, eachindividually presented CADBURY BOURNVILLEFINE DARK CHOCOLATE is an irresistible in-the-mouth delight specially created to savour theIndian palate. And with 44% cocoa from theworld’s finest Ghana beans and an ever so smoothtexture, each little chunk is dark and undeniably good.A natural source of anti-oxidants, CADBURY BOUNRVILLE FINE DARK CHOCOLATE justmakes you feel good about giving in to your chocolate cravings. Dark Chocolate actsas a mood-booster; by boosting serotonin and endorphin levels that generate thefeel-good factor. This more than a perfect bar of dark chocolate turns the simple actof eating it into a form of art. It demands a certain ritual, where, in a way, each of itssteps offers a tribute to every stage of your journey.Speaking on the launch, Anand Kripalu, Managing Director – Indian Sub-Continent,Cadbury Ltd. said “This launch is our commitment to innovation and to meet theever-changing consumer needs in our market. The dark chocolate category will growstrongly in the coming years because of its sophisticated taste and health benefits,and Bournville is our special offering to capture this opportunity.”Beginning this month, the CADBURY BOURNVILLE FINE DARK CHOCOLATE will appearon shelves in modern retail outlets across major cities in the country. CADBURYBOURNVILLE FINE DARK CHOCOLATES will be available in four different variants RichCocoa (80g), Almond, Hazelnut and Raisin & Nut (90g each) and will retail at Rs. 75. Cadbury | Kraft Food INC. | The Merger | Emotional Association | Youth | Mumbai 58
  • 59. Chapter 7: Case Study (worms)‘Academic success depends on research and publications.’– Philip Zimbardo Cadbury | Kraft Food INC. | The Merger | Emotional Association | Youth | Mumbai 59
  • 60. How Cadburys won the battle of wormsThree years back, Cadburys found itself in the eye of a storm, when a few instancesof worms in its Dairy Milk bars were reported in Maharashtra. In less than twoweeks, the company launched a PR campaign for the trade. And three months later,came an ad campaign featuring Big B and a revamped poly-flow packaging.Marketing and communications experts brought together by AICAR and the SubhashGhoshal Foundation say that Cadbury moved quickly to bear the cost of damage.And thanks to its equity with the consumers, Cadburys won back consumerconfidence, with hit on sales notwithstanding.In October 2003, just a month before Diwali, customers in Mumbai complainedabout finding worms in Cadbury Dairy Milk chocolates. Quick to respond, theMaharashtra Food and Drug Administration seized the chocolate stocksmanufactured at Cadburys Pune plant.In defense, Cadbury issued a statement that the infestation was not possible at themanufacturing stage and poor storage at the retailers was the most likely cause ofthe reported case of worms.But the FDA didnt buy that. FDA commisioner, Uttam Khobragade told CNBC-TV18,"It was presumed that worms got into it at the storage level, but then what aboutthe packing - packaging was not proper or airtight, either ways its a manufacturingdefect with unhygienic conditions or improper packaging."That was followed by allegations and counter-allegations between Cadbury and FDA.The heat of negative publicity melted Cadburys sales by 30 per cent, at a time whenit sees a festive spike of 15 per cent.For the first time, Cadburys advertising went off air for a month and a half afterDiwali, following the controversy. Consumers seemed to ignore their chocolatecravings.As a brand under fire, in October itself, Cadburys launched project Vishwas - aeducation initiative covering 190,000 retailers in key states. But what the companydid in January 2004 is what really helped de-worm the brand.By investing up to Rs 15 crore (Rs 150 million) on imported machinery, Cadburysrevamped the packaging of Dairy Milk. The metallic poly-flow, was costlier by 10-15per cent, but Cadbury didnt hike the pack price.Bharat Puri, managing director, Cadburys India says, "While were talking abouta few bars of the 30 million we sell every month - we believe that to be a responsiblecompany, consumers need to have complete faith in products. So even if it calls forsubstantial investment and change, one must not let the consumers confidenceerodes."Simultaneously, Cadburys roped in brand ambassador Amitabh Bachchan to dosome heavy duty endorsement putting his personal equity on the line for the brand.The company upped ad spends for the Jan-March quarter by over 15 per cent. Therecovery began in May 2004, and by June, Cadburys claimed that consumerconfidence was back.These experts believe that the reason for Cadburys success was that it tookcrisis head-on. And the consumers were more forgiving, because the brand enjoyedan emotional equity in India. Cadbury | Kraft Food INC. | The Merger | Emotional Association | Youth | Mumbai 60
  • 61. Santosh Desai, former president, McCann-Erickson says, "The nature of therelationship that Cadburys has built with the consumer is responsible for latitudethe consumers are giving it."They are seeing it as a lapse, not a breach of trust - this difference is key. WhatCadburys set out to deliver, it goofed up once but it seemed to be very sincere inits intent to get things right."Even so, other experts felt Cadburys was itself to blame for the worm crisis.Mahnaz Curmally, PR counsel, explains, "Cadburys had known for a long time thatpackaging needed change, so in a sense, they waited for something to happenbefore they made that change and perhaps in hindsight, they could have made thatchange voluntarily."Cadburys could be case study of a sweet recovery from a crisis. It continues to leadthe Indian chocolate market with over 70 per cent market share. However, theexperts feel that todays constantly changing environment should keep the companyon guard. Cadbury | Kraft Food INC. | The Merger | Emotional Association | Youth | Mumbai 61
  • 62. Cadbury repackages for IndiaCadbury India has announced that it is to change the packaging for its Dairy Milkchocolate bar following last months allegations that a batch had been infested withinsects. The consumer scare is believed to have seriously impacted sales of thenations leading chocolate bar.As of January 2004, the packaging for Cadburys Dairy Milk bars will be completelychanged, creating what the company says is an impenetrable wrapper.Although the move is in direct response to the allegations of infestation, thecompany continues to deny that its production methods at the Indian facilities are ofanything but the highest standards and that there is "absolutely" no way that suchan infestation could occur. The company has pointed the finger of blame todistributors, saying that unhygienic storage methods were the likely source of theinfestations.Cadbury India has even posted a public notice on its website, refuting all allegationsof the infestation during manufacture.The statement states that "the manufacture of chocolates involves conching processthat takes place at high temperatures (up to 55 C), making it impossible for anyinfestation to take place during the process."Our factory-control samples of each batch of Cadbury Dairy Milk produced over thepast few months have been checked and found to be free of any infestation".Media reports were widespread throughout India on the subject, focusing on aBombay suburban store where consumers are thought to have purchased a series ofcontaminated chocolate bars."While our current packaging of Cadbury Dairy Milk has proved us in good stead forthe past 30 years, we believe that this change will strengthen protection to the barthrough complete sealing," Cadbury India managing director Bharat Puri told theFinancial Express.Indian consumers are known to be particularly reactionary to any allegations of foulplay by large corporate players. Back in August, a huge furore blew up when anindependent consumer organisation tested Pepsi Cola soft drinks, finding them tohave dangerously high levels of pesticide.As with the problems faced by Cadbury India, the allegations were vehementlydenied. Government-backed tests that were later carried out proved that a randomselection of Pepsi soft drinks were in fact well within Indian standards for pesticideresidues. Cadbury | Kraft Food INC. | The Merger | Emotional Association | Youth | Mumbai 62
  • 63. Chapter 8: Kraft - Cadbury Merger‘It’s a MISTAKE’– Warren Buffett Cadbury | Kraft Food INC. | The Merger | Emotional Association | Youth | Mumbai 63
  • 64. Kraft - Cadbury merger: A British icon loses its IndependenceCadbury & Kraft: The legacyCadbury’s acceptance of a multi-billion-dollar takeover by US giant Kraft Foods endsalmost two centuries of independence for the British chocolate maker born out ofhumble beginnings.Cadbury, which began as a small grocer’s shop in Birmingham, central England, in1824, has agreed to an £11.5-billion ($18.9-billion) takeover by Kraft Foods, famousfor its snack products. The British company’s founder John Cadbury began hisbusiness by selling cocoa and drinking chocolate from a small shop in 1824. Being aQuaker, he wanted to provide an alternative to alcohol.In 1831, John Cadbury began manufacturing on a commercial scale and laterhanded over the business to his sons, who moved the business to Bournville, nearBirmingham, where the group still has a chocolate factory. As Quakers, the familyworked hard at improving the social conditions of Cadbury workers, creating anentire village in Bournville.Cadbury had launched its first solid milk chocolate for eating in 1897 and a few yearslater the company’s famous Dairy Milk bar was born. The company quickly expandedand began making chocolate boxes before buying out smaller confectionery brands.After the Second World War, Cadbury joined with US drinks giant Schweppes in the1960s as it looked to expand overseas, but the firms split in 2008.Kraft Foods (KFT.N) sealed a friendly deal to buy British candy maker Cadbury CBRY.Lfor about $19.6 billion (11.9 billion pounds).It marks the largest European food and beverage deal on record."Kraft has acquired a great asset at a great price and should be given credit for this,"said Sanford C. Bernstein analyst Andrew Wood.Impact of the Merger: A HERITAGE SOLD, A TRADITION KILLED.British flags fluttered outside chocolate-maker Cadburys sprawling Bournville site asemployees lamented the news that a beloved national brand was falling intoAmerican hands."Hang your heads in shame," read one banner, capturing a feeling at thecompanys home in Birmingham in central England that patriotic pride as well asfuture prospects for employees were at stake in the takeover by U.S. giant Kraft."It is history, and what is England without its history?" asked Janet Wright, a 59-year-old machine operator, who started work at the Cadbury factory at the age of 15. Cadbury | Kraft Food INC. | The Merger | Emotional Association | Youth | Mumbai 64
  • 65. British Prime Minister Gordon Brown said he wanted to protect British investmentand jobs at Cadbury, illustrating the political sensitivity of the deal in an electionyear.Cadbury has been in Bournville since 1879 and the sense of community remainsstrong there, compounding the fears and disappointment felt by the workforce.The site, which employs about 2,500, consists of a mix of sturdy 19th-century brickbuildings, monolithic structures in the style of the 1930s, and square blocksreminiscent of the 1960s, stretching as far as the eye can see and reflecting thecompanys long history."Its not just about jobs, its also about being British. Its the end of a great Britishcompany," said one woman, 51, who did not wish to give her name but said she hadworked at the factory for 31 years and had met her husband there.Impact of the Merger: IT’S SAD, VERY SADFelicity Loudon, a member of the fourth generation of Cadburys founding family,said the deal was a tragedy."I think my grandfather and great grandfather and great, great grandfather wouldall be turning in their graves. I think the idea that Cadbury could be anything butBritish would be just a horror story to them,"The companys Quaker-inspired tradition of caring for staff, established by itsfounders, is still in evidence despite the family retreating from the day-to-dayrunning of the business. Cadbury | Kraft Food INC. | The Merger | Emotional Association | Youth | Mumbai 65
  • 66. The site has a dentist, chiropodist, swimming pool and pensioners club, and aclocktower stands over a war memorial decorated with poppies paying tribute todozens of Cadbury workers who died in the two World Wars.Some workers live in company houses at discounted rents, and when thesupermarket chain Tesco opened a store at the site it was barred for a time fromselling alcohol.Myriam Jordan, 82, who worked for Cadbury for 15 years, as did her father-in-lawfor 46 years, still receives a free Cadbury parcel at Christmas and a free trip everyyear."It adds a bitter taste having an American company buy Cadburys,"The uncertainty over job security has angered the workers."Everybody, from the lollipop lady to the people in the school playground, saidthey would stop buying chocolate bars if Cadbury is taken over by the Americancompany," said a 54-year-old woman who had worked at the firm for more than 20years and did not wish to give her name.But some felt the great Quaker traditions had disappeared over the years, withdiminishing pension and pay packages."They set up a great legacy but all that has gone," said Pete, 48, who declined togive his second name. He had worked in production for 17 years. However, even hewas downhearted about the likely takeover. Cadbury’s Employees and people of England are not happy with the merger. Cadbury | Kraft Food INC. | The Merger | Emotional Association | Youth | Mumbai 66
  • 67. I mpact on the brands – A cultural changeKraft foodsIt is the world’s second largest food company, with sales in approximately 160countries.Some of the brands include Philadelphia cheese, Oreo biscuits and Trident gumbringing in $50 billion in revenues (Kraft, 2010).TakeoverKraft acquired Cadbury on the 2nd February 2010. It acquired Cadbury with an aimof increasing its global presence and revenue.Reasons behind the takeover (Planned or emergent)Its ‘planned strategy’ was to acquire Cadbury Plc (one of its top competitors) toincrease market share and gain access to emerging markets.“Cadbury has been in Krafts sights for a while, but the merger took on new urgencyafter last years $23-billion purchase of Wm. Wrigley Jr. Co. by Mars Inc.” (Waldie,2009)Comparison of Kraft’s and Cadbury’s culture Types of Characteristic Traits Cadbury Kraft CultureNetworked  Participation    Friendship & Networking    Networking throughout the organization  Helping othersMercenary  Performance and effectiveness    Hard work    Material reward   Destroying competition Fragmented  People working alone  Few links with colleagues  Aiming for goals outside organizationCommunal  Deep friendships    Shared values of sociability    Family atmosphere   A passion for the business    Sense of value in work Cadbury | Kraft Food INC. | The Merger | Emotional Association | Youth | Mumbai 67
  • 68. Implications of cultural change on Kraft and Cadbury Implications on Kraft Implications on CadburyStrengthened Brand Damaged HeritageDrives higher performance leading to Lower moral and performancehigher revenueBetter control of the organisation Staff burn-outBetter reputation Risk of losing benefits schemes to American proceduresEfficiencies through alignment of Trust Issuesprocedures and processesAlignment of goals Weakened BrandThe impact of cultural change on CadburyThe staff would be de-motivated leading to low morale, reduced of productivity andloss of revenue. There is Risk of resignation resulting from change of process, e.g.technology. The lack of trust leads to weak loyalty, and reduced opencommunication. The conflicts cloud lead to stress and increased emotion. There canbe feelings of insecurity and uncertainty of the future. There’s also a risk ofdiminishing Cadbury’s brand. Cadbury | Kraft Food INC. | The Merger | Emotional Association | Youth | Mumbai 68
  • 69. The factors needed to implement and sustain cultural change Drivers for change Drivers against Change Strong leadership Government Interventions Good support Bad press by the media Empathy and respect for acquired company Employee resistance: Good Cultural Unionscommunication Changes of change Good strategy and plan Brand Loyalty, e.g. Consumer boycotting brand Resources e.g. human and financial *Adapted from Kurt L Cadbury | Kraft Food INC. | The Merger | Emotional Association | Youth | Mumbai 69
  • 70. Chapter 9: SWOT‘What is research but a blind date with knowledge?’– Will Harvey Cadbury | Kraft Food INC. | The Merger | Emotional Association | Youth | Mumbai 70
  • 71. SWOT:StrengthsCadbury would realize several possible advantages in going abroad. By penetrating aforeign market the company could:• Maintain a stable growth of a company by maximizing the use of its productioncapacity and thus increase economies of scale and scope.• With its brand name, Cadbury could counterattack the competitors it faces in thedomestic market by attacking their domestic market.• Keep up with the financial strength by increasing its sales and profit, indeed theforeign market could present higher profit opportunities than the domesticproducts.• Acquisition rules in UK, reduce its dependence on the UK market and thereforediversify its market specific risks.• Overall, Cadbury has been successful through the new products (development) ithas to offer.WeaknessesGenerally, as Cadbury has a weak position in the US market, thus, need to change itstarget to a different location. Besides its lack of distribution network, it also has asmall total of market share altogether. Therefore in order to market the product inFrance successfully, Cadbury would have to find out on how it can improve in orderto have great performance. It is also good to find out what are the situations thatthey could avoid in order to be successful. In order to market products the followingissues should be considered:• Total French production of chocolate bars and confectionary, which has increasedby 24.5 per cent between 1988 and 1991, has slowed down in more recent years,partly due to the economic slump.• Consumption of chocolate products, which has been growing until 1991, remainedfairly static in 1992, reflecting a fall in demand due to the gloomy economicsituation.• Sales of milk chocolate bars, which account for 24 per cent by volume of total salesof chocolate bars, decreased by 3.7 per cent.OpportunitiesThrough its confectionary product line, least to mention is to build viable positions inprioritized markets through organic growth and acquisition. Besides what is mentionabove, Cadbury has other opportunities to have market development in Russia andChina. The Timeout Candy Bar market is growing worldwide. This company is also atthe same time distributing its products via the internet – Develop Gourmet Line.Besides developing the “Low Calorie” line of chocolates and sweets, they also offerthe “Sugar Free” sweets line. This has thus opened a completely Cadbury world inUS.Therefore in order to get the product into a new foreign market, France, Cadbury Cadbury | Kraft Food INC. | The Merger | Emotional Association | Youth | Mumbai 71
  • 72. would have good opportunities in store for them. Opportunities are as follows:• In terms of political issues, France is an advanced parliamentary democracy andpolitically is highly stable. The political power is centralized in the parliament, thePrime Minister and the President. The country specific risk is negligible. France is amember of the European Community and has excellent relations with the UK.• Economically, France has the fourth largest Gross Domestic Product in the world. Itis a first-world advanced market based economy. Despite a recent recession, itseconomy is very strong and also highly deregulated in line with European Unionpolicies. France represents a very large potential market with a high standard ofliving and purchasing power. The economy is highly open internationally andconducts a high percentage of trade within its European partners.• With regards to its social situation, France has a broadly central/southernEuropean culture which has many similarities with the UK. However culturaldifferences do exist and these must be considered when planning for the market.• France has a high technological level and a lot of industries are based in thetechnological sector. This technological base constitutes one of France’s competitiveadvantages.ThreatsDue to its confectionary products, it is very important for Cadbury to be aware of anypresent or upcoming threats. The company should take note of the changes in theconsumer’s buying trend. It is perceived that consumers might shift from chocolatesto “Healthy” snacks. If this were to happen, there might be a poor productdevelopment which would tarnish the Cadbury’s name. Needless to say price warswould occur between its competitors like Mars, Hershey and Nestle. Due to theabovementioned, there would be seasonal sales slumps all year round which willreflect to an increase in cost of the raw materials needed. Cadbury would then haveto be prepared for growth of small local gourmet chocolates and regional candymanufacturers.However if Cadbury were to market its products in France, the company has to beaware of the risks it could encounter. It might:• Not understand foreign customer preferences and fail to offer a competitivelyattractive product;• Not understand the foreign country’s business culture or know how to dealeffectively with foreign nationals;• Underestimate foreign regulations and incur unexpected costs.• Threat of entry due to the competition growing through acquisition. Cadbury | Kraft Food INC. | The Merger | Emotional Association | Youth | Mumbai 72
  • 73. Chapter 10: Emotions‘The trouble with research is that it tells you what people werethinking about yesterday, not tomorrow. Its like driving a car using arear-view mirror.’– Bernard Loomis Cadbury | Kraft Food INC. | The Merger | Emotional Association | Youth | Mumbai 73
  • 74. E MOTIONSEmotion is the complex psychophysiological experience of an individuals state ofmind as interacting with biochemical (internal) and environmental (external)influences. In humans, emotion fundamentally involves "physiological arousal,expressive behaviours, and conscious experience”. Emotion is associated with mood,temperament, personality and disposition, and motivation. The English wordemotion is derived from the French word émouvoir. This is based on the Latinemovere, where e- (variant of ex-) means out and movere means move’. Therelated term "motivation" is also derived from the word movere.E - motions are the Energy in Motion.List of human EMOTIONS we can experienceThere is a huge list of human emotions that we are capable of experiencing.However often times we only experience a very limited number of emotions.It is always the same few; happiness, anger, love, confidence, anxiety, stress,relaxed. Ask people what emotions do they experience in a week and they’llinvariably say those common emotions.The more type of emotions we feel, the more colourful our life experience will be. Itis not that we can’t experience a wide array of emotions; rather it is because weoften label different emotions into a common group like happy or sad that we forgetto experience that emotion for what it is.Take happy. There is happy, ecstatic, cheerful, relax,exited, exhilarated etc. All those emotions areunique in their own way but we usually label it ashappy. By doing that we unintentionally take awayit’s characteristics and thus take away ourexperience.Below is a list of human emotions that we humansare capable of experiencing. Positive Human Emotions Adequate Awe Assured Able Capable Certain Charmed Cheerful Comfortable Compassion Courageous Confidence Determined Delighted Eager Energetic Enthusiastic Excited Exhilarated Expectant Cadbury | Kraft Food INC. | The Merger | Emotional Association | Youth | Mumbai 74
  • 75. Elation Empathy Excellent Fascinated Glad Good Great Grateful Glorious Glamorous Graceful Happy Hopeful Humorous Inspired Interested Joyful Magnificent Lust Love Pleasure Playfulness Peaceful Pleasant Powerful Pride Positive Relaxed Relieved Satisfied Surprised Sympathy Stable Sublime Superior Thrilled Negative Human Emotions Annoyed Anxious Apprehensive Agonize Anger Anxiety Apathy Bored Burdened Cautious Competitive Concerned Confused Contempt Depressed Destructive Disgusted Distracted Doubtful Disappointed Exasperated Exhausted Embarrassment Envy Frustrated Fear Guilty Greed Grief Harassed Hesitant Hostile Ignored Impatient Indifferent Intimidated Isolated Irritated Jealous Jumpy Lonely Mad Manipulated Miserable Obnoxious Overwhelmed Panic Pressured Remorse Revenge Shame Sad Scared Shocked Suspicious Stress Tired Uncomfortable Uneasy Used Wary Weary WastefulCadbury | Kraft Food INC. | The Merger | Emotional Association | Youth | Mumbai 75
  • 76. The following are the list of few Emotions that humans are capable ofexperiencing.Positive EmotionsCheerfulCheering is the uttering or making of sounds encouraging, stimulating or exciting toaction, indicating approval or acclaiming or welcoming persons, announcements ofevents and the like.HappyHappiness is a state of mind or feeling characterized by contentment, love,satisfaction, pleasure, or joy.ExcitedExcitation is an elevation in energy level above an arbitrary baseline energy state. Inphysics there is a specific technical definition for energy level which is oftenassociated with an atom being excited to an excited state.ConfidenceConfidence is generally described as a state of being certain either that a hypothesisor prediction is correct or that a chosen course of action is the best or mosteffective. Self-confidence is having confidence in oneself.PridePride is either a high sense of ones personal status or ego (i.e., leading to judgmentsof personality and character) or the specific mostly positive emotion that is aproduct of praise or independent self-reflection.Negative EmotionsAngerAnger is an emotion related to ones perception of having been offended or wrongedand a tendency to undo that wrongdoing by retaliation.DepressionDepression is a state of low mood and aversion to activity that can affect a personsthoughts, behaviour, feelings and physical well-being.ConfusionConfusion (from Latin confusio, -onis, noun of action from confundere "to pourtogether", also "to confuse") of a pathological degree usually refers to loss oforientation (ability to place oneself correctly in the world.) Cadbury | Kraft Food INC. | The Merger | Emotional Association | Youth | Mumbai 76
  • 77. GreedGreed is an excessive desire to possess wealth or goods with the intention to keep itfor yourself; Greed (Latin, avaritia), also known as avarice or covetousness, is, likelust and gluttony, a sin of excess. Greed is inappropriate expectationEnvyEnvy (also called invidiousness) is best defined as an emotion that "occurs when aperson lacks anothers (perceived) superior quality, achievement, or possession andeither desires it or wishes that the other lacked it." Cadbury | Kraft Food INC. | The Merger | Emotional Association | Youth | Mumbai 77
  • 78. Chapter 11: Youth‘Thats the nature of research - you dont know what in hell youredoing.’– Will Roger Cadbury | Kraft Food INC. | The Merger | Emotional Association | Youth | Mumbai 78
  • 79. Y outhYouth is the time of life between childhood and adulthood (maturity).Definitions of the specific age range that constitutes youth vary. An individualsactual maturity may not correspond to their chronological age, as immatureindividuals could exist at all ages.Around the world, the terms "youth", "adolescent", "teenager", and "young person"are interchanged, often meaning the same thing, occasionally differentiated. Youthgenerally refers to a time of life that is neither childhood nor adulthood, but rathersomewhere in-between. Youth also identifies a particular mind-set of attitude, as in"He is very youthful". The term youth is also related to being young."This world demands the qualities of youth: not a time of life but a state of mind, atemper of the will, a quality of imagination, a predominance of courage overtimidity, of the appetite for adventure over the life of ease." - Robert Kennedy.Youth is an alternative word to the scientifically-oriented adolescent and thecommon terms of teen and teenager. Another common title for youth is youngperson or young people.The youth of IndiaIndia is a very young country. The following data shows the demographic of theIndian Youth. Cadbury | Kraft Food INC. | The Merger | Emotional Association | Youth | Mumbai 79
  • 80. YOUTH HAVE some responsibility towards their country. We need to learn fromyesterday and live with hope for a better tomorrow. We can learn from our past howthe young warriors shed their blood for the country."Hesitating to act because the whole vision might not be achieved, Or becauseothers do not yet share it, is an attitude that hinders progress."It was with these words that Ashutosh Gowarikar made Swadesh, India’s firstmainstream commercial film with its heart in the right place, when it talks aboutserving the nation. Yes, we have heard about Shahrukh Khan’s realistic portrayal ofMohan Bhargava, the project manager working with NASA who comes back to India,only to face ground realities.Shahrukh’s was just a role, a performance. But, there are many inspiringperformances and roles played by real life heroes - Indians who served the nation tomake it what it is today.It takes just a minute or few seconds to expose intelligent humans to the mostinevitable and powerful truth in life but it takes years to prove the same.The Connectivity – The Youth And Cadbury1The youth can easily connect themselves with Cadbury because Cadbury beautifullyplaces itself among the youth.The youth today is able to connect itself with Cadbury because Cadbury is able to tabthose emotions that the youth experiences during this age.The advertisement campaigns by Cadbury have done it all.The real taste of life camping was introduced in late 80s. “A great tasting chocolatefrom UK, that’s the branding we are aiming at,” says Nikhil Rao.“The tagline was a rage in India. You think chocolate and you drool. Mouth watering,that’s what the cloud on the top of your head reads,. The nick signifies the purity ofthat chocolate.” Say Abhijit Avasthi, national creative director, O&M.‘Kya Swaad Hai Zindagi Ka’, this tag line made waves among the youth in 1990s“It appealed to the child in every adult. And CDM became perfect expression of‘spontaneity’ and ‘shared good feelings’”, said Rao.“However the one with the girl dancing on the cricket field after her cricketerboyfriend hits ball out of the boundary has remained etched in everyone’s memoryas the most spontaneous and uninhibited expression of happiness,” adds Avasthi.1 The connectivity – the youth and Cadbury is taken from an article in DNA Money – Saturday,September 26, 2009. Cadbury | Kraft Food INC. | The Merger | Emotional Association | Youth | Mumbai 80
  • 81. “This campaign was a run away success,” he recalls. This ad was rewarded ‘thecampaign of the century’.Khaane Waalon Ko Khaane Ka Bahana Chahiye…Rao says, real taste of life had already made waves and tapped the upper classpeople and now they were ready to tap the middle and lower class youth.Hence the ad campaign starring VJ Cyrus Brocha, Khaane Waalon Ko Khaane KaBahana Chahiye… helped in tapping them.He also adds, the youth and adults were not comfortable in eating chocolates inpublic. But this ad changed their mentality.Kuch meetha ho jaaye…The worm problem came in and it was time to calm the controversies and repositionthe brand image.This is where Mr. Big B came in with the ad campaigns ‘Kuch meetha ho jaaye…’ and‘Paapu pass ho gaya’.‘Paapu pass ho gaya’ became part of the street language. It has been adopted by thepeople and have become and extensive tool to express happiness and joy.Before Kuch meetha ho jaaye… campaign no one would have a Cadbury if theyscored less marks or if India would loose a match.But this campaign egged people to have Cadbury to celebrate every little happinessin their life.While ‘Paapu pass ho gaya’ was targeted to the youth. ‘Aaj Pheli tarik hai’ wastargeted to the adult class people.‘Iss Diwali aap Kise Khush Karenge?’, again made waves. This ad campaign was acomplete 3600 campaign which targeted all the age groups. Cadbury | Kraft Food INC. | The Merger | Emotional Association | Youth | Mumbai 81
  • 82. Chapter 12: Mumbai‘Facts are stubborn, but statistics are more pliable.’– Mark Twain Cadbury | Kraft Food INC. | The Merger | Emotional Association | Youth | Mumbai 82
  • 83. IntroductionMumbai, formerly known as Bombay, is the capital of the Indian state ofMaharashtra. It is the most populous city in India, and the second most populous cityin the world, with a population of approximately 14 million.ClimateMumbai has a tropical climate, specifically a tropical wet and dry climate under theKöppen climate classification, with seven months of dryness and peak of rains in July.The cold season from December to February is followed by the summer season fromMarch to June. The period from June to about the end of September constitutes thesouth-west monsoon season, and October and November form the post-monsoonseason.And hence due to these Climatic conditions Mumbaikars do not enjoy all the flavoursof Cadbury.EconomyMumbai is Indias largest city(by population) and is the financial and commercialcapital of the country as it generates 6.16% of the total GDP. It serves as aneconomic hub of India, contributing 10% of factory employment, 25% of industrialoutput, 33% of income tax collections, 60% of customs duty collections, 20% ofcentral excise tax collections, 40% of Indias foreign trade and 4,000 crore (US$884million) in corporate taxes.RegionMumbai, extending from Colaba in the south, to Mulund and Dahisar in the north,and Mankhurd in the east, is administered by the Brihanmumbai MunicipalCorporation (BMC).DemographicAccording to the 2001 census, the population of Mumbai was 11,914,398, accordingto extrapolations carried out by the World Gazetteer in 2010, Mumbai has apopulation of 13,830,884 and the Mumbai Metropolitan Area has a population of21,347,412.The population density is estimated to be about 22,000 persons persquare kilometre. Per 2001 census, Greater Mumbai, the area under theadministration of the BMC, has a literacy rate of 77.45%, higher than the nationalaverage of 64.8%.CultureMumbais culture is a blend of traditional festivals, food, music and theatres. The cityoffers a cosmopolitan and diverse lifestyle with a variety of food, entertainment andnight life, available in a form and abundance comparable to that in other worldcapitals. Mumbais history as a major trading centre has led to a diverse range ofcultures, religions and cuisines coexisting in the city. This unique blend of cultures isdue to the migration of people from all over India since the British period. Cadbury | Kraft Food INC. | The Merger | Emotional Association | Youth | Mumbai 83
  • 84. Chapter 13: Questionnaire | Analysis | Findings‘The way to do research is to attack the facts at the point of greatestastonishment’– Celia Green Cadbury | Kraft Food INC. | The Merger | Emotional Association | Youth | Mumbai 84
  • 85. QuestionnairePhone Number: 98708*****E mail Id: ***@.comAge: 18 – 24 yearsGender: M F 1. Which chocolate brand you like the most? (Tick the appropriate, any 1) Cadbury: Nestle: 100 50 0 Cadbury NestleFrom the survey conducted of 100 youth, we conclude that Cadbury is the mostpopular brand among the youth. 2. Do you often relate Cadbury to chocolate? (Tick the appropriate) Yes: No: Can’t say: If yes, why? Because of its: (Tick the appropriate, any 1) Brand Image: Ad Campaigns: Flavours: Other Factors: __ (Name it) Cant say Hence, we can conclude 8% that majority of the youth (63%) do relate Cadbury No to chocolate. 29% 29% say NO & 8% say Yes CAN’T SAY. 63% Cadbury | Kraft Food INC. | The Merger | Emotional Association | Youth | Mumbai 85
  • 86. Majority of the youth often relate Cadbury to chocolate because Flavors of Cadbury’s BRAND IMAGE then its Ad campaigns and alsoAd campaings because it has variety of flavours to offer. Brand Image 0 5 10 15 20 25 30 3. To me a Cadbury means… (Tick the appropriate) An expression of Love: A way to spread happiness: A feeling of togetherness: Excitement: To majority of the youth (39%) An expression of Cadbury means a way to 11% love spread happiness. 27% 27% buy Cadbury to express A way to spread their love. 23% say Cadbury is 23% happiness a felling of togetherness and A feeling of 11% feel excited. togetherness Excitement 39% 4. I have a Cadbury when I am with my… (Tick the appropriate, any 1) Friends: Family: Lonely: Anytime: Friends 42% of youth have Cadbury when they are 60 42 with their friends. 40 10% have when they are with their family. 20 12% have when they are lonely.Anytime 38 0 10 Family 38% have Cadbury anytime. 12 LonelyCadbury | Kraft Food INC. | The Merger | Emotional Association | Youth | Mumbai 86
  • 87. 5. I look at Cadbury as… (Tick the appropriate, any 1) My best friend: A stranger: A foe: A A foe 78% look at Cadbury as their best stranger 7% friend. 15% look at Cadbury as a 15% stranger. 7% of the youth hate Cadbury. My best Friend 78% 6. When Cadbury DIES I will… (Tick the appropriate, any 1) Shout & Scream: Oouch: Cry: Its okay, I’m fine: (Feel Bad) (Be Hurt) 43 45 40 35 30 25 21 19 20 17 15 10 5 I 0 Shout and Oouch Cry its okay,Im fine Scream If Cadbury dies, it will not make a difference to 43% of youth. 21% of the youth will be hurt. 19% will feel bad and 17% of youth will cry.Cadbury | Kraft Food INC. | The Merger | Emotional Association | Youth | Mumbai 87
  • 88. 7. I have Cadbury when I am… (Tick any 4) Frustrated: lonely: Happy: Enthusiastic: Sad: Bored: Excited: Playful: Relaxed: Frustrated 5% Relaxed 15% Lonely 14% Playful 13% Happy Excited 24% 11% Bored Sad Enthusiastic 6% 4% 8%24% of the youth have Cadbury when they are happy.15% of the youth have Cadbury when they are relaxed.14% of the youth have Cadbury when they are lonely.13% of the youth have Cadbury when they are playful.11% of the youth have Cadbury when they are excited.8% of the youth have Cadbury when they are enthusiastic.6% of the youth have Cadbury when they are bored.5% of the youth have Cadbury when they are frustrated.4% of the youth have Cadbury when they are sad.8. Why does Cadbury, have a strong impact on minds and hearts of the youth (tick thefollowing parameters. {1 being the lowest & 5 being the highest}) Excellent Good Average Below Average BadSr. No. Parameters (5) (4) (3) (2) (1) 1 Ad Campaigns 2 Availability 3 Variety of flavors 4 Flavor satisfaction 5 Value for money 6 Product packaging 7 Overall quality Other factors: _______________________________________________________ Cadbury | Kraft Food INC. | The Merger | Emotional Association | Youth | Mumbai 88
  • 89. 61% of the youth Below Ad Campaigns average Bad feel that Ad Average 0% Campaigns of 0% 9% Cadbury are excellent. Good 30% Excellent 61% Below 62% of the youth Average Availability Bad average feel that Availability 5% 0% of Cadbury is 0% Good excellent. 33% Excellent 62% Below 41% of the youth average Variety of flavours Bad feel good about the 5% Flavours that 0% Cadbury offers. Average Excellent 21% 33% Good 41% Below 48% of the youth are average Flavour satisfaction Bad highly satisfied with 1% 0% Average the flavours that 24% Cadbury offers. Excellent 48% Good 27%Cadbury | Kraft Food INC. | The Merger | Emotional Association | Youth | Mumbai 89
  • 90. Bad Only 26% of the youth feel 2% Value for money that Cadbury is Value for Below money. average Excellent 13% 26% Average Good 41% 18% Below average Product packaging 44% of the youth feels 0% Cadbury’s packaging is Average excellent. 23% Excellent 44% Good 33% Below Overall quality average 50% of the youth feels Average 0% Cadbury has an excellent 10% overall quality. Good 50% 40%Cadbury | Kraft Food INC. | The Merger | Emotional Association | Youth | Mumbai 90
  • 91. Fill the box with the letters in the box. Always A Sometimes S Occasionally O Never N 9. I have a Cadbury when I pass out with flying colours 47% of the youth always 15% have Cadbury when they are very happy i.e. pass Always with flying colours. Sometimes 47% 23% Never Occasionally 15% 10. I have a Cadbury when I score less 37% of the youth don’t have Cadbury when they 13% are very sad i.e. when Always they score less. 35% 15% Sometimes Never Occasionally 37% 11. I have a Cadbury when I’m with my girl/boy friend 46% of the youth always have Cadbury when they 21% are with their loved once Always i.e. Boy/Girl friend. 46% Sometimes Never 25% Occasionally 8%Cadbury | Kraft Food INC. | The Merger | Emotional Association | Youth | Mumbai 91
  • 92. 12. I take a Cadbury after a fight with my girl/boy friend. 31% of the youth always take a Cadbury after they 28% Always 31% have a fight with their Sometimes loved once to pacify them Never i.e. fight with Boy/Girl 21% 20% Occasionally friend. 13. I have a Cadbury when I win Half of the youth always 6% Always has Cadbury when they WIN 23% Sometimes 50% Never Occasionally 21% 14. I have a Cadbury when I loose Only 9% of the youth has Cadbury after they loose. 9% Always 37% 21% Sometimes Never Occasionally 33%Cadbury | Kraft Food INC. | The Merger | Emotional Association | Youth | Mumbai 92
  • 93. 15. I have a Cadbury when there’s a celebration 45% of the youth occasionally have Cadbury 17% when there’s a Always celebration. 45% Sometimes 16% Never Occasionally 22% 16. I have a Cadbury when I’m frustrated 45% of the youth always 21% have Cadbury to release Always their stress 45% Sometimes 13% Never Occasionally 21% 17. I have a Cadbury when I’m cheerful 38% of the youth always have Cadbury when they are 15% cheerful. Always 38% Sometimes 27% Never Occasionally 20%Cadbury | Kraft Food INC. | The Merger | Emotional Association | Youth | Mumbai 93
  • 94. 18. I have a Cadbury to bring my spirits high 38% of the youth occasionally have Cadbury 21% Always to bring their spirits high. 38% Sometimes 18% Never Occasionally 23% 19. I have a Cadbury when I’m low 31% of the youth always have Cadbury when they 29% 31% Always are low on energy. Sometimes Never 17% Occasionally 23% 20. I have a Cadbury when I’m surprised 39% of the youth 23% Always occasionally have Cadbury 39% when they are surprised. Sometimes Never 23% Occasionally 15%Cadbury | Kraft Food INC. | The Merger | Emotional Association | Youth | Mumbai 94
  • 95. 21. I have a Cadbury when I’m hurt by someone 39% of the youth have 25% Cadbury when they are Always 39% hurt by some one Sometimes Never 19% Occasionally 17%Cadbury | Kraft Food INC. | The Merger | Emotional Association | Youth | Mumbai 95
  • 96. Chapter 14: Conclusion – Recommendation‘If men liked shopping, theyd call it research.’– Cynthia Nelms Cadbury | Kraft Food INC. | The Merger | Emotional Association | Youth | Mumbai 96
  • 97. C onclusion After the survey of 100 youths it was found that Cadbury is the most popular brand among the youth in CHOCOLATE market. Over the years Cadbury has become synonymous to CHOCOLATE because of its brand image and also due to its 360o ad campaigns. The youth says there’s a Cadbury for every moment. To the youth Cadbury stands out to be a medium of expressing their love, happiness and joy. It did not make a difference to majority of the youth when KRAFT food INC. took over Cadbury, but yes they do believe that Cadbury’s image will fade over a period of time. The youth can easily associate Cadbury with their day to day lives because Cadbury connects itself with the various emotions of today’s youth. There’s always a Cadbury for all the different moods/emotions/ temperaments of today’s youth. The various ad campaigns and flavours have created a strong impact on the minds and hearts of the youth. Majority of the youth feel that Cadbury has started loosing the tag ‘VALUE FOR MONEY’ Finally, As they say, NOTHING LASTS FOREVER. We think it’s the beginning towards the end of Cadbury’s beautiful journey from small grocer’s shop in Birmingham, central England, 1824 to KRAFT food INC. America, 2010.The new poster ofKRAFT food INC. ibliography Cadbury | Kraft Food INC. | The Merger | Emotional Association | Youth | Mumbai 97
  • 98. C onclusion of the MergerThe primary driver for mergers and acquisitions is revenue gain; however thisapproach rarely takes account of cultural differences which may inhibit successfuladaption.Kraft needs to change the culture of Cadbury to take better control of theorganization and strengthen its brand.However, to achieve this it will require strong leadership, good communication anda well thought out strategy and plan.One of the most complex and difficult hurdles to overcome will be ‘staff resistance’,however a long term impact of the change could be more profound to consumerbrand loyalty.R ecommendationsIt would be advisable to do a culture assessment of the organisation prior topurchase.Cultivate cultural change, do not forcefully exert a new culture, rather allow it groworganically over time.Constant communication and feedback is key, this cannot be over emphasised! Cadbury | Kraft Food INC. | The Merger | Emotional Association | Youth | Mumbai 98
  • 99. Chapter 15: Bibliography‘Research tells us fourteen out of any ten individuals likes chocolate.’– Sandra Boynton Cadbury | Kraft Food INC. | The Merger | Emotional Association | Youth | Mumbai 99
  • 100. B ibliography Books/ Articles o Marketing Research – GC Beri o Articles on Cadbury, Kraft food INC., merger of Cadbury and Kraft food INC. and its impacts world wide o This assessment of the company’s culture has been derived from their websites o Newspaper articles related to Cadbury , advertisements and their impacts on youth  Internet o Cadbury.com o Google Images o Kraft food.com o Brainy Quotes.com o Wikipedia.com o The Indian Youth.comCadbury | Kraft Food INC. | The Merger | Emotional Association | Youth | Mumbai 100