Product life cycle of cadbury dairy milk.

1. Presented by:
Malvika
M.E.(FT) 1 year
1955

2. CONTENTS
• Introduction
• Product introduction
• Growth phase
• The Worm Controversy
• Maturity Phase
• Decline Phase
• Current Scenario

3. INTRODUCTION
• Cadbury chocolates started in Birmingham(England) in 1824 by John
Cadbury.
• Dairy Milk chocolate was introduced in 1905. A higher proportion of milk
was used within the recipe. In 1914 it became the company's best-selling
product.
• Cadbury India began its operations in 1948 by importing chocolates and
then re-packing them before distribution in the Indian market.
• Cadbury is a segment of Mondelez Intenational.

4. Manufac-
tring
plants
1. Thane
2.
Hyderabad
3. Induri
(Pune)
4.Malanp-
ur
(Gwalior)
5.
Bangalore
6. Baddi

5. Sales Offices
1. New Delhi
2. Mumbai
3. Kolkata
4. Chennai
Corporate Office
• Mumbai

7. PRODUCT INTRODUCTION
• Entry in India: 1948
• High failure rates as in the land of gulabjamun and rasgulla chocolate was
an alien and expensive.
• High importing and marketing cost.
• Limited distribution.
• With the introduction of Dairy Milk other products were also introduced
like dairy milk fruit and nut, dairy milk bubbly, dairy milk silk, dairy milk
oreo and many more.
• In 80s cadbury decided to manufacture Dairy milk in India to reduce
importing cost.

8. Growth Phase
• Increasing sale
• Competition with other companies
• Promotion emphasize brand ads.
• Manufacturing dairy milk in India could reduce the cost but other
companies were already selling at lower price. So cadbury made a
communication strategy in order to target the children. So in 1991 they
released there first advertisement.

19. October :2003
• A month before Diwali, the FDA Commissioner recieved complaints about
infestation in two bars of cadbury dairy milk(Market of Cadbury was 70%
at that time.)
• Adverse media coverage.
• Sale descreased in the first 10 weeks(festival season) along with the
employee morale.
• The challenge was to restore confidence of the consumers,employees
etc.

20. Defence
• Cadbury issued a statement that the infestation was not possible at the
manufacturing stage but poor storage at the retailers was most likely cause
of the reported case of worms.
• FDA Commissioner told ““It was presumed that worms got into it at the
storage level, but then what about the packing – packaging was not proper
or airtight, either ways it’s a manufacturing defect with unhygienic
conditions or improper packaging.”
The heat of negative publicity melted Cadbury’s sales by 30 per cent, at a time
when it sees a festive spike of 15 per cent.

21. Remedy for the Worm Controversy
A focused and intense communication program was implemented over the next
six months to rebuild credibility and restore confidence among the key
stakeholders.
1. In media, the key message that infestation was a storage-linked problem,
not manufacturing related, found widespread acceptance.
2. Sales volumes climbed back to almost to pre-crisis levels eight weeks after
the launch of new packaging – a concrete step taken by the company to
minimize the incidence of infestation. This reflected consumer confidence in
the brand and the company.

22. MATURITY PHASE
• Sales decline.
• Market become saturated.
• Line extension occurs.
• Stylistic product changes.
• Heavy promotion to dealers and consumers.
• Prices and profit fall.
• Cadbury has adopted numerous extension strategies on its core dairy milk
brand and its due to competitive nature of the chocolate confectionery
market. These tensions are necessary in order to extend the life of a brand
and drive growth in this sector.

25. Product Weight(gm)
Dairy milk 23, 52
Dairy milk Fruit & Nut 36
Dairy milk Crackle 36
Dairy milk Silk 137
Dairy milk Silk Bubbly 120
Dairy milk silk oreo 130
Dairy milk Lickables 20
Dairy milk shots 19.8

26. DECLINE PHASE
• Large drop in sales.
• High price policy is used.
• Large inventories of unsold items.

28. CURRENT SCENARIO
• In India its approx revenue is $1 billion.
• Mondelez has highest market share of Indian cadbury dairy milk
globally.
• 2 Lakh outlets along with 70,000 mini fridges has been installed in
India.
• Cadbury chocolates share 70% of
market share in India.