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    Marketing Management Project. Marketing Management Project. Presentation Transcript

    • GROUP MEMBERS  Anuja Agrawal 1  Candida D‟Souza 2  Roomana Kazi 3  Priyanka Mansukh 4  Vishal Shirke 5  Sakina Motiwalla 7
    • HISTORY•Cadbury is a confectionery •Founded in 1866 by Henricompany owned by Kraft Nestle. •Headquarters is in Switzerland.Foods. •Company operates in 86•Founded in the year 1824. countries around the world,•Founder was John Cadbury.•Founded in India on 19 July •Employees over 2,80,000 people. •Nestle India Ltd1948 • First factory was set up in the•Head office is in Mumbai, India year 1961•Products - Cadbury dairy milk, •At Moga Punjab5-star, Perk, Gems, Éclairs• Employees around 2000.
    • TOP COMPETITORSThe chocolate market in India has only three big players.
    • PRODUCTS
    • MARKET SEGMENTATIONGEOGRAPHIC :•URBAN AREAS: GROWTH WILL MAINLY COME THROUGH AN INCREASE INPENETRATION AS INCOME LEVELS IMPROVE.DEMOGRAPHIC :Age Group –(3 years to 18 years) (18 years to 25 years) (25 + years)BEHAVIOURAL:Purchase Occasions- Diwali, Rakhsha Bandhan etc.
    • STRENGTHS WEAKNESSDistribution Network Little penetration in the rural sector.Market Share Poor technology in India comparedAggressive Marketing to current international technologies.Very strong brand equity in India. Limited Key products, only oneBetter market penetration. central brand (CDM). OPPORTUNITIES SWOT THREATSIncreasing per capita national income Rise in the cost of chocolate and dairyresulting in higher disposable income. products.Growing middle class and growing Entry of many foreign players in theurban population. Indian Confectionary market, which areIncreasing gifts cultures. giving higher margins to the retailers.Substitute to “Mithais” Changing consumer trends.
    • STRENGTHS WEAKNESSStrong distribution network. Raw material supply – volatile prices.Strong R&D Chocolates - comparatively small business unit Lack of penetration of chocolates in the rural market. OPPORTUNITIES SWOT THREATSLow penetration, consumption. Foreign imports.Launch of brands from international There exists no brand loyalty in theportfolio. chocolate market and consumersGrowth in international & emerging frequently shift their brands.markets Changing consumer trends.
    • MARKETING MIXPRODUCT : PRODUCT :•Cadbury India Limited (CIL) confectionaryproducts include Dairy Milk, 5 Star, Eclairs, •Nestle products are Kit-Kat, Munch,Perk, Halls, Bytes and Gems which are the Milky-bar, Charge, Classic, Polo. Kit-Kat islargest selling brands in their segments. their premium brand in chocolates.PRICING :•Cadbury‟s has launched various products PRICING :which cater to all customer segments. Nestle sets prices of their products•So every customer segment has different according to the market demand as low asprice expectation from the product. possible because nestle is the trend setter•Therefore maximizing the returns involves in the market.identifying right price level for each •In line with Cadbury‟s offerings Incentivesegment, and then progressively moving schemes – eg. Maha munch give morethrough them. value for the same price Priced at key• e.g. : Dairy Milk Rs.5, Perk Rs. 10, 5 Star price points like Rs.5Rs. 5 & Rs. 10, Fruit and Nut Rs. 22, GemsRs. 5 & 10, Break Rs. 5, Nutties Rs. 18.
    • MARKETING MIX.Physical Distribution – “Place” Physical Distribution – “Place”•Cadburys distribution network •General FMCG distribution structure.used to encompasses 2100 Strong coverage in urban areas, developing indistributors and 450,000 retailers. rural. •New Regional Sales Offices to increase widthPROMOTION : and penetration and focus in rural areas.•Celebrities endorsements.•The big factor that has pushed up PROMOTION :cdm sales is the Amitabh •Brand ambassador- Rani Mukherjee forBachchan campaign. Cadbury munch ( targeting youth) •ADVERTISING - Decreased dependence onappointed Amitabh Bachchan as its children‟s TV channels over recent years 33%brand ambassador. of total industry spend but near equal spend on•Cadbury product are marketed each brand with rival offerings from Cadbury.aggressively in the market.
    • MARKET SHARE Market Share 3% 1% 24% Cadbury (72%) Nestle (24%) 72% Amul (3%) Others (1%)
    • MARKET SHAREChocolate market is estimated to be around 1700 to 1900 crores growing at 18-20%per annum and is dominated mainly by listed players Cadbury India and Nestle India.Cadbury is the market leader with Nestle Indias chocolate portfolio commands72% market share. a total market share of 24%.Cadbury dominated the market .The Then Nestle made an entry by introducing itscompanys various brands such as famous brands like Kit Kat , Munch and MilkyDairy Milk, Five Star, Éclairs, Gems and Bar in the process ending Cadbury‟s monopoly.Perk are leaders in their segments.Until the middle of 90‟s, Cadbury hada monopoly among the chocolatemanufacturers.Competition in this segment is going to increase as big international heavyweights likeHersheys and Mars are entering the Indian market.
    • COMPETATIVE ASSESMENT Food feuds keep share markets as well as consumers perennially interested. At first, it was the cola giants that attacked each other using their ad campaigns as daggers, and now the battlefield is fast becoming accustomed to the chocolate giants – Cadbury and Nestle. These are both global brands which have been competing neck and neck over market share for decades. However, their approach to advertising was never as direct as it has become in the last three years. Taking a lesson out of the cola giants‟ battlebook, Nestle is waging nothing short of a public war against Cadbury through its ad campaigns. Cadbury has, without a doubt, always been seen as the market leader. It leads the pack in the Rs. 4,000-crore branded chocolate sector in India Even though several brands such as Amul and Campco tried to break into the market, none of them succeeded in shaking Cadbury‟s grip Nestle is the only real competition Cadbury has had in its long run as market leader.
    • Direct Competition  Cadbury captures 70% of market  Nestle captures 25% of market share share.  In Cadbury Dairy Milk accounts  In Nestle Munch accounts for for maximum share maximum share  Five star come at 2nd place  Kit Kat comes at 2nd place
    • INDIRECT COMPETITION Since the target audience includes, consumers of not only chocolates but also of biscuits and confectionary products like toffees, candies etc have proved to be indirect competition (however would be limited since we are targeting small segment)
    • Marketing programs :advertisingTag line: Khao Bina Taarikh DekheClient: Nestle IndiaBrand: MunchCreative Director: Anuja ChauhanDuration: 20 secsYear: 2009Story : After the popular ambush marketing by PepsiCo & Coca-Cola India, chocolate majors CadburyIndia & Nestle India can be seen at loggerheads in the ad mad world. In most cases it is the smallbrother taking on the big brother. Likewise, in this spoof, Nestle Munch has challenged CDM‟s(Cadbury Dairy Milk) campaign „Aaj pehli tarikh hai‟ with its tagline „Sirf pehli tarikh ko nahin, kabhi bhikha sakte hai‟.Message: With the tag line „Khao Bina Tarikh Dekhe‟, Nestlés „combative advertising‟ campaign directlymocks Cadbury‟s brand proposition. With this ad, Nestle India wants to dilute the brand proposition ofCadbury, tickling its viewers & stealing the sweetness from Dairy Milk. Munch is a vibrant brand with apersonality that is clearly associated with fun. Its advertising has always highlighted the „fun inconsumption‟. This ad is to take that message further down.
    •  Insight: Consumers are still fairly basic & in today‟s world of complicated lives we all like to witness some free action sequences. Going by its popularity, it‟s clear that consumers enjoy collisions, thrive on simple skirmishes & thus absolutely love the war between brands or celebrities. Goof In The Spoof: The easiest thing to do is to criticize intelligent ideas (seriously). But Munch‟s attempt has fallen flat & there isn‟t really much to counter the Cadbury campaign, which has proved to be clutter breaking. So before taking head on Punga with CDM‟s high-voltage campaign, Munch should have considered that spoofs are about puncturing any pretence, but then the brand character has to be such. That‟s certainly not the case with Nestlé Munch. Unlike Sprite, it‟s not in the brand‟s natural scheme. In other words, this ad war is unlikely to go on forever. Freshness: The Pehli Tarikh campaign is an easy prey, having focused too sharply on the pay day insight makes it vulnerable. But Munch has wasted a big opportunity to counter it by producing a sloppy spoof. The Munch ad, in this case, looks like a poor mimic of something that stands strong already. Actually the ad language is very edgy-buzzy that excites the youth but the script is poor & the cast even poorer. How could this ad dent the buzz that the Cadbury campaign created amongst consumers? Verdict: Spoofing, if not executed well, runs the risk of reminding the consumer of the original brand. In this case, it seems to have done just that. But spoofs do make brands come alive which haven‟t been able to make much of an impact; they make the whole category much more alive & bring more consumers to it. This advert has certainly livened up the chocolate category.
    • Challenges for future growthGovernment policies in terms of licensing, duties, movement of agriculturalcommodities etc. Also affect the introduction of products, time lag for a productlaunches, taxes, excise, etc all influence the business.Rupee depreciation improves export realizations, however it also makes import ofraw material (esp. Cocoa) expensive.Threat from foreign brands.Inflationary pressures on raw material pricesLack of government initiative – high excise and import dutiesHigh entry barriers due to duopolistic marketPrice-sensitive consumer.
    • Research MethodologyThe project is based on information collected from primary sources. After thedetailed study, an attempt has been made to present comprehensive analysis ofconsumption of Cadbury and nestle chocolates consumed by the people. The datahas been use to cover various aspects like consumption, consumer‟s preferenceand customer satisfaction regarding Cadbury and nestle chocolates.TYPE OF RESEARCH DESCRIPTIVE EXPLORATORYSAMPLINGCONVIENCE SAMPLING
    • AWARENESSAware Of Cadbury Aware Of Nestle98% Yes 90% approx2% No 10% NoSource Of Source Of Awareness Awareness70% AD’s 60% AD’s18% W,O,M 30% Saw in Shops12% Saw in shop 10% Suggestions
    • ConsumptionCADBURY NESTLE Dairy milk 56%  KIT KAT 40% 5 Star 18%  MUNCH 33% Gems 8%  MILKYBAR 11% Perk 6%  Bar One 9% Bournville 4%  Milk Chocolates 7% Dairy Milk Silk 4% Temptations 2% Celebrations 2%
    • Source of Data  Primary Data : Questionnaire  Secondary Data : Articles  Data Analysis
    • DATA ANALYSIS 17%Q1) Do you eat chocolate? Yeso Yes 83% No 83%o No 17%Q2) which chocolate brand you like the most? 10%o Cadbury 64% Cadburyo Nestle 26% Nestle 26%o Others 10% Others 64%Q3) Which sub-brand do you like most from Cadbury?o Dairy Milk 62%o 5 Star 17% 2% 5% 14%o Perk 14% Dairy Milk 5 Staro Celebrations 2% 17% Perko Temptation 5% 62% Celebrations Temptation
    • Q4) Which sub-brand do you like most from Nestle?o Kitkat 33% 3%5% 3% Kitkato Munch 56% Munch 33%o Milky bar 3% Milky baro Bar One 5% 56% Bar Oneo Milk Chocolate 3% Milk ChocolateQ5) Which media of advertisement influence your purchase?o Television 66% 4% 6% Televisiono Display 24% Displayo Newspapers 4% 24% Newspaperso Hoardings 6% 66% HoardingsQ6) How frequently do you buy chocolates? 12% Once everydayo Once everyday 12% Once a weeko Once a week 25% 36% 25%o 2-3 times a week 27% 2-3 times a weeko On special occasions only 36% 27% on special occations
    • Q.7) Do you want that Chocolate manufacturers should launch some sugar free products?o Yes 70%o No 30% 30% Yes 70% NoQ.8) Would you change your brand if they launch such products?o Yes 82% 18%o No 18% Yes 82% NoQ.9 Which Tag Line of Cadbury attracted you the most ?o Kuch Meetha Ho Jaye 50% Kuch Meethao Rishto Ki Mithaas 20% ho jayeo Shubh Arambh 30% 30% 50% Rishto Ki Mithaas 20% Shub Arambh
    • CONCLUSIONThe Cadbury Dairy Milk brand has evolved into a Megabrand incorporating arrange ofproducts each with their own identity.The strategy involved a packaging and range refreshment strategy which has resulted in aunified innovative Dairy Milk brand, Having exceeded initial sales targets by a considerablemargin, the strategy can be considered a success!There is an immense scope for chocolate industry in India. Indian chocolate industry is unique mix with extreme consumptionpatterns, attitudes, beliefs, income level and spending. Understanding consumer preferences and demands is the key to growth.Economical distribution using proper supply chain management is necessary. The Indian Chocolate Industry is destined to grow and will do so in the future.