A Product analysis of Cadbury Dairy Milk

Desk Report Submitted by Tanushree, MM2022122, BIMM PUNE
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DESK PROJECT
Cadbury Dairy Milk
TOPIC
“A Product analysis of Cadbury Dairy Milk”
DURATION – MAY’21 – JUNE’21
BALAJI INSTITUTE OF MODERN MANAGEMENT,
PUNE
(Academic Batch- 2020-2022)
Submitted By:
TANUSHREE
(MM2022122)

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ACKNOWLEDGEMENT
A successful project can never be prepared by the single effort or the person to whom
project is assigned, but it also demands the help and guardianship of some conversant
person who helps in the undersigned actively or passively in the completion of
successful project.
I would like to take this opportunity to first and foremost thank God for the good health
and wellbeing that was necessary to complete the summer internship and the report
successfully.
Thereby, I take this opportunity to express my deepest gratitude and special thanks to
my mentor and my faculty mentor for their continuous guidance, support, suggestions,
feedback, encouragement, and valuable inputs, without which it would have not been
possible to complete the project.
I would also like to thank my family friend, who provided their valuable contribution
which have been certainly indispensable for my project work.
I hope that I can build upon the experience and knowledge that I have gained and make
appropriate use of it in my career and in my life.
Tanushree

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TABLE OF CONTENTS
CHAPTER
NO
CHAPTER NAME PAGE NO.
1. Introduction 4-5
2. Segmentation, Targeting and Positioning 5-9
3. 4 Ps of Marketing 9- 15
4. Competitive Advantage 15-18
5. Channel Management 18-21
6. Major Competing Products/Services 21-23
7. Competitive advantages of
competing brands
23-24
8. Strategies to overcome
competitive challenges
25
9. Ethical issues involved in the
marketing of the product/service
25-27
10. Conclusion 28

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1. Introduction:
1.1 About Cadbury
Cadbury is a very popular brand in India and globally as well. Even after completion of
more than 100 years, the brand is into hearts of many people & it also leaves a significant
mark amidst all the competition. Cadbury, formerly Cadbury's and Cadbury Schweppes,
is a British multinational confectionery company wholly owned by Mondelez
International (originally Kraft Foods) since 2010. It is the second largest confectionery
brand in the world after Mars. Cadbury was established in Birmingham, England in
1824, by John Cadbury who sold tea, coffee and drinking chocolate. Cadbury developed
the business with his brother Benjamin, followed by his sons Richard and George. Dairy
Milk chocolate, introduced in 1905, used a higher proportion of milk within the recipe
compared with rival products.
Cadbury India began its operations in India by importing chocolates. On 19th July 1948
Cadbury was incorporated in India. Cadbury now has 6 manufacturing units all over
India. Cadbury operates in India in following categories of products: Chocolate,
Confectionery, Beverages, Biscuits and Candy.
1.2 Mission:
To create and sustain flourishing communities where people choose to live-
• By promoting new social housing of good quality which enhances the environment.
• By managing housing stock and estates to the highest standard for all residents.
• By encouraging residents to share in decisions affecting their communities.
1.3 Vision:
• Promotion of brands carrying mass franchise without compromise on quality or
margins.
• Increasing the market depth including rural India’s coverage. (So far in case of
chocolates, rural areas are not covered)
• Better product quality and packaging.
• All round efficient utilization of tangible as well as intangible assets such as brands
and people.
• Efficient working capital management.
• Depreciation charge to meet the CAPEX needs every year.
• Surplus cash so generated to be either gainfully and meaningfully reinvested in
business or return to stakeholders.

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1.4 Profile of Cadbury:
2. Segmentation, Targeting and Positioning:
2.1 Segmentation-
Cadbury Dairy Milk has been able to segment the market quite impressively. The brand
had a tailored approach to meet each customer group's needs cost-effectively, and this
gave a huge advantage over competitors who used to follow a "one product fits all"
approach.
There are many different ways to segment the target markets and Cadbury Dairy Milk
(CDM) brand did it using the following approaches:
➢ Demographic-
• Age: Chocolate is a universally loved flavor and can be used as an addition to almost
any snack. Therefore, be it a child of 13 years of age or an adult of 40 years of age
or more are potential segments for the brand. When it comes to CDM it does not
Type Confectionery
Founder George Cadbury
Current owner
Cadbury plc
Country of origin United Kingdom
Introduced 1905
Related brands
Cadbury products
Markets World
Website
www.cadbury.co.uk

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disappoint any age group of customers due to its variety of offerings attracting all
the age groups. According to an article from The Economic Times the age profile of
chocolate eaters is-
i. 13-19 Years- 29%
ii. 20-25 Years- 23%
iii. 26-30 Years- 19%
iv. 30-40 Years- 30%
CDM too segments its customers based on the above-mentioned age groups.
• Gender: For Cadbury Dairy Milk gender is not a segmentation. CDM products are
for all type of genders whether male or female.
• Education: There is no specific segmentation on the basis of education.
• Price Level: In this CDM has created different level of segments based on the
quality and premium-ness of the CDM product. Be it in terms of taste or packaging.
For example: In the premium segment CDM has Silk, in the medium range it has
Fruit&Nuts and in the general range it has its simple chocolate bar the Dairy Milk.
So based on the above categories people prefer to buy their choice.
➢ Geographic-
CDM does segment the market based on geographic locations. CDM has its offerings in
smaller packets at less price mostly in the rural and semi urban areas, whereas these
small packet offerings are not available in tier 1 cities (or available at very selected
stores). Premium CDM products are rarely found in rural area stores.
➢ Behavioral-
These products are often purchased through impulsive behavior. For purchasing the
Cadbury Dairy Milk brand products there is no specific occasion required (the ad
campaign assigned to communicate this had the tagline “Khane walon ko khane ka
bahana chahiye”) but then as an upgrade the company has created new segments for
festive occasions. Cadbury Dairy Milk chocolate is made with fresh liquid milk – a glass
and a half for every half pound of chocolate to be precise. CDM keep customers fitness
in mind this is because the brand has chocolates which are coated with nuts which have
low calorie count. Customer loyalty is higher with reference to CDM.

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➢ Psychographic-
Nowadays CDM has found a new segment under traditional Indian sweets. Its
segmentation is done on the basis of ‘Size’ as chocolate bars, small blocks, large blocks.
CDM products are mostly for segmented towards people with an enthusiastic type of
attitude.
2.2 Targeting-
Cadbury Dairy Milk has distinguished its product offerings to specific class of consumer
groups. For example, Cadbury Temptations and Bourneville are meant for higher end
consumer groups who are willing to pay more for the dark chocolates.
Cadbury Dairy Milk Bubbly, Silk is also targeted towards higher end consumer groups.
Other than this Cadbury Dairy Milk has its products for everyone who loves chocolate.
The following ad campaigns will highlight the fact about how CDM went about
targeting the mass crowd:
• Pappu Pass Ho Gaya Campaign- Targeted towards students. Representing as a
product that can be a part of happy moments.
• Mitha Hai Khana Aaj Pehli Taarik Hai- Targeted towards family members and
salaried people. Representing as a product that can be a part of happy family
moments.
• Kiss Me, Miss Me- Targeted towards the youth and middle age group people.
Representing as a product that can be a part of love moments.
• Miss PalamPur- Targeted towards the rural market. Representing as a product that
can be a part of any happy moments for the people of rural areas too. And post this
ad, ₹5 Dairy Milk bar was introduced in the market.
2.3 Positioning-
Over the years Cadbury Dairy Milk has positioned itself as an all-time favorite chocolate
that is meant for all irrespective of the age, class and gender. Young or old, everyone
has a favorite tale to narrate about their favorite Dairy Milk. There’s hardly a child that
doesn’t remember their first traumatic day in nursery being sweetened with a packet of
Dairy Milk, a teenager that has not consumed an entire box with milk all the better to
deal with exam nerves, or a young woman who has been not been wooed with a range
of Dairy Milk chocolate. The positioning of CDM has been executed so aggressively
and skillfully that people often use Dairy Milk as a synonym for chocolate.
It has been always marketed as a chocolate having the contemporary taste but which is
affordable, with several variants to select from and over the time it has been trying to
position itself as an alternative to the traditional Indian sweet. The campaign which was
assigned for this positioning had the tagline “Meethe mein kuch meetha ho jaaye” with
different stories involved.

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Next is where CDM tries to position itself as an alternative to the Indian traditional norm
of having curd before the beginning of any special or important event. The campaign
which was assigned for this positioning had the tagline “Shubh Aarambh” with different
stories involved.
In every ad campaign of CDM it tries to position the product as a part of cherishing
moments in life.
2.4 Suggestions for improvement related to the STP employed:
Cadbury, with its effective marketing and an accurate STP strategy has ruled over
consumer's taste buds since generations.
➢ People pay more attention to health and sugar reduction now. The demand for
organic, vegan, sugar-free, and gluten-free in chocolates is growing. CDM can create
a new target group consisting of fitness enthusiastic people and diabetic people, so
that people from this group can also enjoy having chocolate without much worrying
about affecting their health. Eg: Some new product to compete with Snickers by
Mars brand.

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➢ With the fact that per-capita income is increasing1 (this fact has been considered
excluding the impact of covid-19) and the India chocolate market is growing appetite
for premium chocolate and the availability of dark chocolate (witnessing a CAGR
12.8% over the forecast period2) CDM can create a new segment of more premium
chocolate to compete with competitors like Ferrero Rocher, Hershey, Mars, etc.
➢ CDM with the help of collaboration or by its self can explore the fitness segment. It
can introduce chocolate flavor supplements. It will be an extensive step from the
brand and would attract consumers as well due to its popularity in the chocolate
segment. Cadbury has the expertise of health drinks from the Bournvita brand (it is
a brand of malt drink mixes) and popularity in the chocolate market, and therefore a
combination of both expertise can be introduced in a new product in fitness
supplements category.
3. 4 Ps of Marketing:
3.1 Product-
Dairy Milk offers chocolate from small cubes like Dairy Milk Minis up to big blocks
like Dairy Milk Silk to suit all occasions. Dairy Milk is branded in a range of products
rather than one product, as this will give consumers a wider variety of choices, keeping
the traditional brand quality untouched. The products under the brand Dairy Milk of
Cadbury are classified according to the seasons and they are also varied according to the
sales in various geographic locations.
Cadbury’s is a market-orientated firm. They study the market well to understand what
consumers want before planning to launch a product. This ensures a positive response
from the market for the product.
Dairy milk is a mass-market product, aiming at a large number of consumers. Basically,
a volume driver brand for the company.
Cadbury’s uses brand names such as Dairy Milk to attract consumers to their new
products for their well-known and trusted brand name.
Cadbury’s Dairy Milk was first launched in 1905. Today Dairy Milk is still at the
‘maturity’ stage in terms of the product life cycle. The growth in terms of market share
for Cadbury Dairy Milk has only been increasing. Cadbury boasts of 66 per cent
chocolate market share in India, Dairy Milk brand alone accounts for 40 per cent of the
market3 and the company has made it sure that it does not reach the saturation stage.
To extend the life cycle of Dairy milk brand, Cadbury’s have launched new products
under the Dairy Milk brand and re-launched various Dairy Milk products by changing

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the appearance of the packaging to make the product ‘newer’, ‘improved’ and more
appealing, to persuade consumers to continue to buy its products.
The Unique Selling Point (USP) is important because it makes the product different
from the competition. Cadbury’s is well known and is a “world-wide favourite
chocolate.” This gives it an advantage over other competitors, as it is popular and well
known.
3.2 Price-
Cadbury uses comparative pricing as their pricing strategy, that is the company has
adopted a competitive pricing policy through which it keeps the prices at par with its
competitors.
Cadbury Dairy Milk costs between ₹5 for a 6.6g bar to ₹520 for 432g. Cadbury Dairy
Milk chocolates are present in all priced segment. Dairy Milk has enjoyed the trust of
millions and it is reflected in the company’s growing sales. The CDM brand products
are so skillfully priced that it can be considered to have somewhat inelastic demand.
This is because it is a brand name product. This means if Cadbury’s increased their price
by a certain percentage, e.g., 10%. The demand will fall by less than 10%.
Cadbury often uses product bundling strategy to control the prices. Product bundling
helps to drive volume in sales and which in turn helps CDM to offer customers with
discounted prices. This is mostly practiced during festive seasons and during clearance
of stocks.
3.3 Place-
Cadbury Dairy Milk brand products are available throughout the globe. The crucial
factor due to which Cadbury has been able to make a huge impact in the global market
is just because of the effective and responsive distribution channel it has. The company
has made sure that their products are available all over the world and are able cater to
the huge customer base. The products are available both in the urban and rural areas.
The well penetrated distribution channel has made the products available timely to the
customers and this in turn has created a gain for the company both in terms of customer
base and the revenue.
Dairy Milk is a worldwide brand name and has established its recognition very well in
India and in almost more than 200 countries. This shows the effectiveness of the supply
chain because it helps the brand to still be able to provide the products at an effective
price be it in any part of the country or globally.
3.4 Promotion-
Cadbury has its known diverse ways of promoting the brands. The promotion strategy
is done through the television, posters, newspaper, online, radio. The company has made
great efforts to make its product reach the people and make the people aware of its

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brands and products. Its traditional iconic purple packaging makes it easily
distinguishable.
There are various kinds of taglines which are attached with various brands of Cadbury.
In India, Cadbury has “kuch meeta ho jai” for its Dairy Milk brand which shows that the
brand is trying to promote itself in the market of sweets. The brand Dairy Milk has
evolved itself in terms of the advertisements being scripted to target specific customer
segments. The brand has an eye for detail and majorly uses the Emotional factor in their
advertising campaigns to connect with its user base and this has been a unique success
point for the CDM brand.
The company also has various brand ambassadors for various types of products so that
each of them is used to make an impression in the minds of the people. This globally
renowned confectionary company has touched the Indian hearts as per its traditional and
cultural beliefs and meanings as well. The same has been found when the advertisements
depict the rich emotional bonding during marriage ceremony, anniversary or any other
domestic functions practiced in the Indian society (Dr. Sen S. (2017). Changing Trend
of Product Advertising: A Study on Cadbury Dairy Milk. Journal of Content,
Community & Communication [Internet], Vol 5, pg. 29-31.) [cited on 2021 Jan 22].
Studies show that people are driven more by emotions as when compared to ad
information content, to make brand decisions while purchasing.
The brand also depends heavily on promotions that uses vernacular communication for
promoting themselves in different states and regions of the country. The intention to use
vernacular language and regional dialects is to challenge the small regional competitors
and as well as to connect and engage with the audience in a much better way. Anil
Viswanathan, director of marketing (chocolates), at Mondelez India, said:
“On the brand’s 70th year in India, the new ‘Kuch Accha Ho Jaaye, Kuch Meetha Ho
Jaaye’ campaign, had aimed to recapture the Cadbury Dairy Milk spirit, strengthen
connections with consumers and shine a spotlight on people that go the extra mile for
others.".
The “glass and a half of full cream milk in every half pound” slogan with the picture of
milk pouring into the chocolate bar, is one of the all-time ‘greats’ of advertising by
Cadbury Dairy Milk. Cadbury's advertising has always been incredibly powerful, which
in turn made Cadbury win many awards.
Chocolates were not part of our Indian food culture, so when Cadbury’s entered India
the task was to ensure that the category is adopted and Cadbury made it possible through
ads with the help of only ad agency that has worked on Cadbury’s advertising in India,
Ogilvy. Cadbury from the very beginning of its journey in India has not left any stones
unturned to promote itself.
The popular advertisements from Cadbury directed towards the Dairy Milk brand are:

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➢ Cadbury Dairy Milk and cricket are back (1993): The brand launched its first TVC
in India in 1993 showcasing a teenage girl watching cricket in the stadium and then
jumps into the ground, eating a Cadbury chocolate as soon as the cricketer hits a
century.
➢ Cadbury Dairy Milk - Kuch Khaas Hai Zindagi Mein (1994): Another
advertisement showed a to-be bride with henna on her hands, trying hard to open the
wrapping of Cadbury chocolate with her elbows. The ad showed that teenagers too
can enjoy a treat.
➢ Cadbury Dairy Milk - Khane Walo Ko Khaane Ka Bahana Chahiye (1999): With
the tagline ‘khane walo ko khaane ka bahana chahiye’, the ad featuring popular video
jockey Cyrus Brocha became an instant hit among viewers. The objective behind the
communication was to make the chocolate category more socially and culturally
relevant and drive penetration in the process as the penetration level of the chocolate
category in 1999 was 19 per cent in the urban market at the time.
➢ Cadbury Dairy Milk (2002): This was when Cadbury changed its strategy. Having
tapped all age-groups, it wanted to project Cadbury chocolates as a meetha – thereby
trying to eat into the market of traditional Indian sweets. Advertisements were doled
out showing Cadbury chocolate being enjoyed at every possible instance- before a
good task (Shubh kaam ke aarambh se pehle), after dinner (Khaane ke baad meethe
mein kya hai), on payday (Khush hai zamaana aaj pehli taariq hai), after passing exams
(Pappu pass ho gaya) or while just having a good day (Main khush hun aaj khamakha).
Apart from this, Cadbury always comes out with special advertisements before
important festivals like Diwali (toh iss Diwali aap kise khush karenge) and
Rakshabandhan (Cadbury Celebrations- Pyar ka shagun). Cadbury was projected as
the chocolate to eat on important as well as happy occasions.
➢ Cadbury Dairy Milk - Khush Hoon Khamakha (2003): With this ad, the company
aimed to position the brand as not just an occasion-based chocolate but as more of a
casual consumption habit with the ‘khush hoon khamakha’.
➢ Cadbury Dairy Milk - Pappu Pass Ho Gaya (2005): Passing an exam always calls
for a celebration and when Pappu finally does finally clear his 12th standard exams, it
calls for a sweeter celebration. The new communication from Cadbury's Dairy Milk
extended the core promise of happiness to yet another 'moment of joy' in one's life.
The brand signed actor Amitabh Bachchan as a brand ambassador.
➢ Cadbury Dairy Milk - Meetha Hai Khana Aaj Pahali Tarikh Hai (2008): In this
ad, Cadbury vouches that pay day is always a reason to celebrate. The brand pays a
tribute to the salaried employees by giving them another reason to celebrate the
payday.
➢ Cadbury Dairy Milk (2009): The campaign showcased people living a fast life in the
cities spreading happiness during the festival of lights among neighbours, the postman,
the pizza delivery boy and many others who, though significant, are never valued for
their little contributions that bring joy to one’s life. The core thought behind the new
campaign is to surprise those who work unconditionally on Diwali day and at least
expect their little gestures to be appreciated.
➢ Cadbury Dairy Milk - Shubh Aarambh (2010-12): Cadbury by now had launched
its campaign 'shubh aarambh’ that was based on the concept of the Indian tradition of

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having something sweet before every auspicious occasion, with the belief that it leads
to a favourable outcome.
➢ Cadbury Dairy Milk - Dil Jo Keh Raha Hai Suno (2014): In a significant move,
Cadbury decided to move away from its occasion-related brand positioning and to
make chocolate consumption a casual habit with its tagline – ‘dil jo keh raha hai suno’.
The campaign was in sync with Cadbury’s global proposition of 'Free the Joy’.
➢ Cadbury Dairy Milk - Badhti Dosti Ke Naam, Kuch Meetha Ho Jaaye (2015):
With an aim to change its communication, Cadbury launched this campaign showing
the bonding between a saas and bahu (mother-in-law and daughter-in-law) duo. The
ad shows a small-town mother-in-law and daughter-in-law strengthening their bond of
friendship with a piece of chocolate.
➢ Cadbury Dairy Milk - Aliens (2016): Mondelez International created animated ads
as early as 1980’s in the United States and other markets but the concept came to India
only in 2004 when Mondelez India (then known as, Cadbury India) decided to have
an animation film to promote its new product. Cadbury introduced an animated alien
series in 2016 to promote its product with #InterstellarParty where the aliens were
thoroughly enticed by the chocolate. The song became an instant hit among viewers.
➢ Cadbury Dairy Milk - How Far Will You Go For Love (2020): Known for its
heartwarming advertising and classic ‘kiss me close your eyes’ jingle, Cadbury Dairy
Milk Silk’s new campaign which urges young consumers to celebrate intimate
romantic moments in everyday life to keep the relationship healthy. The brand believes
its new proposition of 'how far will you go for love', launched earlier in the year, will
help connect with today’s youth better.
Cadbury has reduced the amount of advertising they used to do on television because of
the increasing fragmentation of television channels. With the increasing number of
channels available, it is difficult to get the exposure to a large percentage of the
population. Over the years CDM had concentrated heavily on TV ads but lately there is
a shift towards digital media more.
3.5 Suggestions for improvement related to the marketing mix
employed:
Cadbury Dairy Milk is the market leader in the chocolate segment in India and the
reasons are because of its distribution channel, varied price range, well scripted ads and
for maintaining the traditional Dairy Milk taste.
➢ Among the many factors stated above the company did not much concentrate on
extending the brand outside the boundaries of mini chocolate cubes or normal
chocolate bars. The CDM brand can leverage its popularity to introduce new category
of products under the same brand name. For example: the chocolate syrup category
to compete with Hershey’s and then work forward to introduce more varieties.
➢ It has been observed that CDM has not tried experimenting on any flavor other than
its traditional chocolate essence sometimes with added dry fruits. CDM can come up
with more new and unique localized chocolate flavors. As an example, to this would
be the new product from Nestle, the Kit-Kat Strawberry Duo. Local Indian flavours
are popular in overseas markets with many more small firms producing these, such

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as in the United Kingdom where brands like Duke of Delhi has a whole range of
chocolate variants containing various ‘Indian’ ingredients from coconut to lime to
cinnamon, as does Rococo Chocolates with jasmine, chilli and even a cardamom dark
chocolate. This shows that localised chocolate flavors are not complex to be
developed, but as of yet, it needs to be experimented with local Indian consumers as
compared to Western countries where these can be considered exotic and unique.
More essentially, if CDM can make this work out well and create that appeal to local
Indian consumers, this could give rise to a whole range of innovative flavors.
➢ The company can introduce a new product category like chocolate tea leaves/dust for
a niche market or selected segment of customers who prefer to have something other
than normal taste of tea. This product can also be distributed to restaurants and cafes
for a new addition to their menu and therefore can serve as a B2B product.
➢ The company can introduce varieties of chocolate milk shake under the same brand.
This will also pose a competition to Hershey’s as this is one of most popular products
sold in the market.
➢ Based on a study done on customer preference towards Cadbury Chocolate with
special reference to Coimbatore city (R. Jayasathya & S. Hemasri, 2019) reveals that
out of 200 respondents 84 are male and 116 are female, who buys Cadbury Dairy
Milk from:
➢
Place of Buying Frequency Percent
Departmental stores 44 22.0
Super market 116 58
Retail shop 35 17.5
Others 5 2.5
Total 200 100
It can be observed that a high percent of people buys from super markets and then
followed by departmental stores, this is so because:
Offers Frequency Percent
Free gifts 20 10
Price offer 92 46
Buy1 get1 68 34
Size offer 20 10
Total 200 100

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Therefore, 46 per cent of people are attracted by price offers and then by buy one get
one offers from super market and departmental stores only. These offers are unavailable
at the retail shop levels (the mom&pop stores), which may lead to lower sales from these
retail level and in turn might discourage such retailers from keeping stocks from
Cadbury’s. So, the suggestion here would be to take care of such issues before it takes
a big shape and balance out offers at all levels accordingly to keep all the channels
satisfied.
4. Competitive Advantage:
Despite challenges along the way, Cadbury Dairy Milk remained to be the market leader.
CDM commands 66 per cent of the Indian chocolate market. This was potentially
achieved with the support of product consistency and new products, sustainable
distribution network and a marketing ecosystem that has provided various popular ads
and helped the brand occupy key occasions of consumption. The advantages for CDM
vis-à-vis its competitors can be stated as:
➢ A big focus is on the distribution channel: These are impulsive buying products so
wide distribution makes a lot of difference. Therefore, availability of these products at
the right time, at the right place, in the right quantity and quality makes a huge
difference. And CDM has proved its efficiency in the same.
➢ The second is focus on customer service and product freshness: The question that
arises is that- from the time the product is manufactured, to the time the consumer eats
it, how to reduce this time gap? How to ensure that people consume fresher products?
These questions are answered from the fact that its manufacturing plants are located
strategically (two in Himachal Pradesh, one each in Madhya Pradesh and Andhra
Pradesh, two in Maharashtra) to fulfill the demands throughout the country accurately
and with a robust logistic and warehousing infrastructures (Cadbury has 27+
warehouses in India in which 17+ are the major warehouses and 10+ are minors. Thus,
it has one warehouse in every state called as the carry and forwarding agents).
To solve the issue of product stability at the retailer level, CDM has provided visi-
coolers at several outlets to make sure that the product retains the freshness and essence.
These coolers become a necessity during the summers when sales usually drop due to
the fact that the external temperature affects product quality. Cadbury Dairy Milk brand
imprinted visi-coolers are found in abundance in the market and every store be it a mom
& pop store or a hypermarket has this installed.
➢ Cocoa farming is another sustainability area that Cadbury focuses on: Cocoa
farming in the country was introduced by Cadbury. It has a distinct team of trained
people actively working towards ensuring the quality of the cocoa that the farmers grow
meets the set standards. The team also ensures the payment to these farmers.
The remaining requirement of cocoa is fulfilled by imports from Africa and Middle
Eastern countries. Therefore, the standard quality control that Cadbury has over the raw

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materials used to make Dairy Milk products makes it sure that the traditional CDM taste
and essence is retained.
➢ Cadbury Dairy Milk Shots (priced at ₹2) is a new addition to the brand and has turned
out to be a very successful product. Cadbury has confirmed to continue the product. It
will boost the growth in future in India as Indian people prefer to buy small pack of
chocolates more frequently. A research report by Mintel Press Office highlights that
one-sixth of consumers in India says they would prefer chocolates in smaller portions.
“An increase in the share of individually wrapped chocolate products is indicative of
increasing health consciousness among Indian consumers who are trying to control
portion size. Brands need to keep in mind that bite-sized portions are gaining popularity
in India and, therefore, new product innovation should do the same.”
15 per cent of CDM brand is contributed by the CDM Shots product. It is one of the
most successful new products in the history of the chocolate category. Its speed of
response was great!4 The point to be noted here is the aspect of innovation that Cadbury
is capable of doing and which gives the brand a competitive edge.
➢ Adapting to Omni-Channel retailing: The Mondelez India owned brand leveraged
artificial intelligence (AI) and technology to create a hyper-personalized ad to reach out
to over 1,800 local retailers, across 260 pin codes, whose businesses was being promoted
locally through the campaign. Every time the ad was seen by a user in cities such as
Mumbai, Delhi, Pune, Indore, Ahmedabad and Lucknow, it showed local stores around
that specific pincode against the product category, prompting the viewer to buy from a
local store. The ad ends on a celebratory note and a thought-provoking message – ‘When
all of us support our local stores, all of us can have a Happy Diwali’ -- it puts the spotlight
on the act of generosity by the brand. The brand also focuses on providing online gifting
packs as an increasing number of consumers prefer to order products online. The
company has introduced e-commerce exclusive premium packs including Cadbury
Celebration, etc.
➢ Advertisements: Cadbury is well-known for its ads. It has been observed that
consumers have a high brand recall related to CDM. There are many popular ads from
Cadbury’s and most of them are mentioned earlier in this report. The background song
of the ad “kiss me, miss me” had become immense popular and was downloaded by
people a number of times. The advertisements from Cadbury’s have been so strongly
positioned in customers mind that Cadbury has become synonymous to chocolate in
India. Advertisements from the brand CDM always have this emotional flavor added to
it, be it related to young people or a family and this emotional aspect is a strong driving
force for Indian consumers to pursue them to buy a CDM product. This is one of the
competitive advantages that CDM is known for.

17 | P a g e
➢ Personalization:
i. Cadbury Dairy Milk’s ‘Madbury’ campaign had let consumers create their own
Cadbury Dairy Milk bar with a unique name to it. This initiative highlights the
company’s commitment to stay consumer-obsessed and in-turn strengthening the
customer relations. Customers were encouraged to visit the website madbury.in and
participating in the challenge. From black forest jelly, coconut, wheat crispies,
popcorn, salted caramel to desi ingredients like paan, thandai, khajoor, kaju katli and
masala chai, there were plenty of options to browse from. One can submit up to two
of their favorite flavors for the chance to be one of five finalists.
Apart from taste and creativity, every bar should have a unique name and an inspiring
tale that would have the judges fascinated. This new idea was to empower consumers to
prepare their own dairy milk recipes and the best voted dairy milk recipe will be mass
produced for all consumers with the picture of the winner on individual packets.
ii. Cadbury Dairy Milk now allows to choose the contents of gift pack (celebrations)
online including customized messages.

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These types of customization options are not provided by any of its competitors and this
is where Cadbury understands its customer sentiments and leverages it. Cadbury Dairy
Milk has time and again been associated in delivering joy, sweetness and happiness and
not just as a company selling chocolate products.
4.1 Suggestions for improvement related to competitive advantage:
Cadbury Dairy Milk is the market leader as already mentioned previously and with a
high margin. The only suggestion would be regarding the packaging factor. Cadbury
Dairy Milk in its low range chocolate products provides only one wrap of plastic cover
whereas its competitors provide in a very presentable dual layer packaging. This can be
an important factor for Cadbury because of the worm crisis that had blamed Cadbury
for poor packaging and Cadbury had to bear huge losses. Though Cadbury is a market
leader in this segment, its competitors are no less competitive and therefore a similar
mistake or complaint can attract more losses for Cadbury.
Left- Cadbury Dairy Milk Packaging || Right- Amul Milk Chocolate Packaging
5. Channel Management:
Cadbury is known for its strong and widespread distribution channel capacity. Cadbury
has segmented the distribution channel very strategically. Cadbury makes it sure that in
the process of supplying its products to the market it keeps the channel partners happy
and satisfied, both in terms of benefits (monetary or schemes like gifts or travel
opportunities) and after sales support. The distribution channel is shown below: (Negi,
2008)

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Further to this the company has divided the market into different categories and have
been classified on the basis of Market Potential and Population. (Negi, 2008).
➢ Market Potential- It is based on 19 parameters:
- Prosperity of market – 25% weightage – under this there are 3 parameters.
- Consumption Patterns – 25% weightage – under this there are 6 parameters.
- Awareness (Media Exposure) – 20% weightage – under this there are 5 parameters.
- Market Support (Infrastructure that facilitates marketing activities) -10% weightage –
under this there are 4 parameters.
- Population (Size of the Market) – 20% weightage – under this there is 1 parameter.
➢ Market Potential Value Index (MPV), It is defined for each town:
- It measures the overall purchasing power of the town.
- Town-wise MPV is indexed to the MPV of Mumbai (Mumbai has MPV of
1000).
On the basis of these factors, Cadbury has segmented the towns as –
➢ Titanium Towns – These are the cities with population greater than 10 lakh and MPV
greater than 30.
➢ Gold Towns – These are the cities with population between 5 lakh & 10 lakh and
MPV between 10 & 30.
➢ Silver Towns – These are the cities with population between 1 lakh & 5 lakh and MPV
between 3 & 10.
➢ Rest of Urban (RoU) – All other urban towns.
Further it has been classified on the basis of shopper needs and the perception that
shoppers have for different types of outlets. (Negi, 2008)
➢ High-End Grocers (HEGs):
All Grocers and General Stores dealing in branded FMCG products can become HEGs
if they fulfill any 3 of the following parameters-

20 | P a g e
- Area of shop greater than 300 sq. ft.
- Number of Counter salesman greater than 1(including owner).
- Typically, average monthly Cadbury value sale greater than ₹ 6000 per month.
➢ Low-End Grocers (LEGs):
All Grocers and General Stores which deal in branded and un-branded FMCG products
can be classified as LEGs. Typical parameters for classification are –
- Area of shop less than 300 sq. ft.
- Number of counter salesman (including owner) = 1.
- Average monthly Cadbury sales less than ₹ 6000 per month.
➢ Food Stores:
- These are the outlets whose main business comes from food products like baked
products, ice cream etc.
- It includes ice-cream shops, bakeries (which sell cakes/pastries), dry fruit stores.
- It does not include outlets which stock FMCG groceries like soaps, detergents etc.
➢ Modern Trade:
It includes two – Supermarkets & Hypermarkets-
➢ Wholesalers:
Any outlet which sells more than 50 % of his Cadbury stocks to other retailers can be
classified as a Wholesaler.
➢ Chemists:
An outlet which sells ethical allopathic medicines and also stocks FMCG products.
➢ Pan Kiosks:
These are the outlets which sell Betel Leaf/Cigarettes/Tobacco and also stock FMCG
products.
Based on the above categorizations Cadbury decides which segment of Dairy Milk
products (and other Cadbury products) are to be made available where, when, at what
cost and what quantity.
The next challenge that arises for Cadbury Dairy Milk brand is to get available shelves
in stores for product display. Some retailers also sell imported chocolates which provide
more profit margins vis-à-vis Indian companies. Chocolate is an impulsive buying
product and therefore its visibility becomes crucial for it to be sold. So, to convince such
retailers from making their shelf space available to Cadbury Dairy Milk products,
Cadbury has introduced visibility programs. The shopkeepers will get monetary benefits
if they are able to fulfill the program requirements. These benefits are an extra monetary
benefit in addition to the normal profits earned from selling Cadbury chocolates. There
are 2 such visibility programs launched focusing towards CDM brand (Negi, 2008):
➢ Cadbury’s Purple King - A retailer or a food mart can become a "Purple King" if he
keeps Cadbury's chocolates in a visi-cooler or in at least 3 sq. ft. of pure horizontal or
vertical space (pure space means only Cadbury chocolates are kept in that space). The
Payouts in this scheme are –
- 2.5 per cent of total purchase by the retailer, and
- 1 per cent on value target achieved by the store.

21 | P a g e
The payouts are made in the name of the retailers through cheques on a quarterly basis.
➢ Cadbury’s Purple Prince – This is the second visibility program for chocolates. For
this a store should have a visi-cooler placed in a proper noticeable place within the
store premises. The payout is 2 per cent on value target achieved.
So, this is how Cadbury manages its channel members with sheer focus at all levels of
the channel. Making sure that the performing members are recognized for their extra
mile efforts and adding up to the company’s profit.
5.1 Suggestions for regarding the channel management:
From the above explained scenario it is visible that Cadbury has well set plans regarding
the channel management and as a suggestion for the brand would be effectively sustain
it. There are many individual factors mentioned above that if not taken care effectively
might disrupt the effective channel and thus impacting the brand’s image. Issues that
should be taken care of are:
➢ The company sales personnel / distributor sales man is visiting the retailers on a timely
basis and collecting or delivering the orders. Any issues that come up should be
addressed on priority basis so that not letting it affect the sales.
➢ The retailer should be well informed about the distributor who is providing stocks to
the particular area and ordering policies to avoid any sort of confusion.
➢ Goods are stuck in the store and sales is not happening as normal or competitor
products selling more. Such issues should be taken care and sorted at the distributor
level. If necessary, can be discussed further with the management.
➢ Swiftly and effectively solving concerns where the retailer may have had a bad
experience relating to damages/expiry/salesman behavior etc. For this the company
can provide feedback portals to the retailers.
➢ To ensure that extra benefit schemes are reaching the appropriate retailers timely and
safely.
6. Major competing products/services:
Cadbury Dairy Milk is a brand of milk chocolate manufactured by Cadbury. It consists
of several products. Every product in the Dairy Milk line is made with exclusively milk
chocolate. There are over 85 products of dairy milk in the market, and it faces
competition generally in the bars and blocks category with its products like 5-star, Dairy
milk (crackle, fruit & nut, forest, Oreo variants). There are three major competing
brands-
6.1 Mars:
Mars is considered a top manufacturer of confectionery products; Mars was founded in
the year 1911 and headquartered in the United States. Apart from confectionery
products, it is also into the production of pet food and other products related to food.
Mars confectionary products include Mars bars, M&M’s, Skittles, Snickers, Milky Way
bars, and Twix gives competition to dairy milk more in the foreign market.

22 | P a g e
Some of their non-confectionery products include Uncle Ben’s rice, pasta sauce, etc.
and pet foods include Whiskas, pedigree, and Nutra brands. Mars chocolate production
is considered as one of the tops in the world along with producing mints, chewing gums,
and fruity confections.
Mars food is devoted to providing better food quality for the buyers. Their production
concentrates on quality, taste, and at affordable rates. Mars production runs across 12
manufacturing sites and has about 2,000 employees. Mars produces about 13 food
brands that are available in more than 30 countries. Due to the enormous product brand
and its quality Mars is considered one of the top Cadbury competitors.
6.2 Hershey’s:
It is the most popular chocolate and liked by many, Hershey’s is an American company
that has been in the chocolate factory since 1894. It is headquartered in Pennsylvania
and considered one of the largest manufacturing companies in chocolate. Hershey’s
chocolate is available across the United States. Hershey’s production of chocolate
mainly focuses on four main flavors which are milk, white, dark, and gold.

23 | P a g e
Hershey’s chocolate productions are span eight factories across the United States. They
have a huge number of products like dark cocoa, spread snacksters, Licorice candy, dark
chocolate peanut butter cups, cookie layer crunch bar, soft crèmes candy, raspberry
mints, snack mix, candy bar, and many more to give competition to dairy milk reign in
the chocolate industry. Hershey’s chocolates are manufactured using 100% farm-fresh
milk which makes the milk chocolate so well. The Cocoa that is used in the production
is sourced from various growing regions of the world. Due to their huge products and
their taste, Hershey’s is considered as one of the top Cadbury competitors.
6.3 Nestle:
Nestle is a food and drink company which is headquartered in Switzerland. Nestle is
considered one of the largest food companies in the world. It has around 2000 brands
and its main products include medical food, baby food, bottled water, breakfast cereals,
confectionery products, coffee, tea, and many more.
Nestle serves its operations in around 189 countries across the globe. Nestle milk
chocolate produced by Nestle is a chocolate bar that is produced by Nestle. Nest milk
chocolate is being sold in many countries. It mainly focuses on increasing the quality of
their food products which can contribute to a healthier life. Due to their wide reach and
focus on quality for their food products, nestle is considered as one of the top Cadburys
competitors.
Nestle products like KitKat, Milky bar, and munch give competition to dairy milk in
various markets.
7. Competitive advantages of competing brands:
Cadbury Dairy Milk faces fierce competition in every aspect of the business. Whether
it be the price, quality of the product, range of product, technology use, marketing,
customer service, and cost of manufacturing. Dairy milk’s two main competitors are
Mars Incorporated and Nestle, which are two of the largest confectionery companies in
the world. They are both very successful due to the value for money they offer their
consumers, and they propose a huge threat to Cadbury. Cadbury has successfully

24 | P a g e
established their own identity of the purple theme and an effective slogan of “a glass
and a half-full”. This, however, still does not place Cadbury at the top of the market and
the business must work diligently to keep up with the increasing standard of the
confectionery industry.
Mars Corporation possesses a competitive edge over the other competitors. The
strengths that the company has made it have the upper hand when it comes to the market.
The company is known globally, and its product portfolio is robust. The great supply
chain that the company has as well as a well-established network makes it reach most
of its customers quickly than its clients. Due to this, the quantity of materials being
supplied to the company is also large, and the firm also has brands that are favored by
many people like Bounty, Pedigree, Mars, and Double Mint.
The competitive advantage which provided Nestle an opportunity to be more
competitive in the industry is Research and Development, partnership deals with big
companies (like Starbucks coffee), and product availability in the market.
Hershey’s large market share gives them a competitive advantage. They hold the largest
share in the Chocolate Production, Candy Production, and Confectionery Wholesaling
industries. Hershey's commitment to corporate responsibility is also another strength for
the company.
According to the understandings of the group, the above-mentioned brands are not
affecting the sales of the “Dairy Milk” products. The net sales of Dairy Milk are much
higher than its competitors. There are a lot of factors, like brand awareness, brand image,
customer-centric products, and advertising, customers prefer Dairy Milk products over
others.
Dairy Milk’s “Silk”, Nestle’s “Nestle Extra Smooth”, Hershey’s “Kisses” and Mars’s
“Grupo Turin” all belong to the premium range, with almost similar attributes, but
somehow Dairy Milk is having a strong competitive advantage and customer base.
Company Name M.Cap
(Rs. in Crores)
Net Profit (cash)
(Rs. in Crores)
Sales
(Rs. in Crores)
Dairy Milk (Mondelez India Foods
Ltd.)
1528.19 Cr. 684.77 61154.3
Nestle India 142604.70 2285.91 12368.90
Hershey NA (-81.09) 375.40
The above figures clearly explain that considering all the segments, strong competition
exists between Nestle, Hershey, and Mars, and it will be difficult for them to compete
with Dairy Milk and reach that position. The difference between the sales of the above
companies clearly shows the moat which dairy milk has made in the market. These three
top players might affect the sales of the market leader, but that will be considered as
negligible.

25 | P a g e
8. Strategies to overcome competitive challenges:
Cadbury should develop new products and promote them domestically as well as
internationally. Such a product/market growth approach will ensure that the company
has a diversified range of products that are available and well-recognizable in many
countries of the world. Such strategic choice will provide the company with enormous
comparative advantages over its competitors and will help it to better cope with the
hurdles of the global economic crisis.
Most importantly, such a strategic step will erase the common stereotype claiming that
consumers mostly associate Cadbury with chocolate. The ‘Chocolate is Cadbury’
marketing approach much facilitated the company’s success over the last decade.
However, considering the challenges of the global competitive markets, this strategy
will not be suitable any longer. Hence Cadbury should transform it into a more powerful
and innovative global image.
The variety of new high-quality and reasonably priced products will add value to the
business activity of Cadbury and will win new overseas markets for the company. This
task would require the company to carefully design and develop innovative brands of its
products that are not yet present on any of the foreign markets, and which will be
potentially demanded by the consumers (i.e., target markets).
While developing innovative products and penetrating overseas markets, Cadbury
should initially consider the demand-side of its target markets. Among the most
important criteria are Average income; Average spending amount on one-time
purchasing; Average amount consumers are ready to spend on chocolates, candies,
cookies, and/or sweets.
9. Ethical issues involved in the marketing of the product/service:
9.1 CADBURY AND THE WORM CONTROVERSY:
The discovery of worms in some samples of Cadbury’s Chocolate in early October 2003
created one of the biggest controversies in India against a Multi-National reputed for
being a benchmark of QUALITY. The controversy created a deep adverse impact on the
company with their sales not only drastically dipping down, but at the same time
allowing the competitors to establish their foothold and taking maximum advantage of
Cadbury’s misfortune. The controversy and the adverse publicity received in several
countries, set back its plan of outsourcing model which would have resulted in
significant revenue generation, several months back.

26 | P a g e
The "worms’ controversy" came at the worst time…. the next few months were the peak
season of Diwali, Eid & Christmas. Cadbury sells almost 1,000 tons of chocolates during
Diwali. In that year, the sales during festival season dropped by 30 percent. The
company saw its value share melt from 73 percent in October 2003 to 69.4 percent in
January 2004. In May, however, it inched up to 71 percent. CDM sales volumes declined
from 68 percent in October ’03 to 64 percent in January 2004 Clearly, the worm
controversy took a toll on Cadbury's bottom-line. For the year ended December 2003,
its net profit fell 37 percent to Rs 45.6 crore (Rs 456 million) as compared with a 21
percent increase in the previous year.
However, Cadbury’s reiterated that all through the 55 years of leadership in India that it
has remained synonymous with chocolates and has remained committed to high quality
and consumer satisfaction."
9.2 CADBURY'S FIGHT-BACK
'Project Vishwas' - “Steps to ensure quality & regain the confidence.”
Following the controversy over infestation in its chocolates, Cadbury India Ltd unveiled
'Project Vishwas', a plan involving distribution and retail channels to ensure the quality
of its products.
The company's team of quality control managers, along with around 300 sales staff,
checked over 50,000 retail outlets in Maharashtra and replaced all questionable stocks
with immediate effect.
The Vishwas program was intended to build awareness among retailers on storage
requirements for chocolates, aid in improving storage conditions, and strengthen the
packaging of the company's range of products.

27 | P a g e
Cadbury reduced the number of chocolates in its bulk packets to 22 bars from the present
60 bars. These helped the stockiest display and sell the products "safely and
hygienically" 190,000 retailers in key states were covered under this awareness program.
9.3 THE BIG ‘B’ FACTOR
The big factor that has pushed up CDM sales is the Amitabh Bachchan campaign. It
helped restore consumers' faith in the quality of the product. In early January, Cadbury
appointed Amitabh Bachchan as its brand ambassador for two years.
The company believed that the reputation he has built up over the last three decades
complements their own, which was built over 50 years. Yet, the entire credit of recovery
could not be attributed to the brand mascot.
9.4 TAX EVASION CASES IN CADBURY
Tax evasion is the illegal evasion of taxes by individuals, corporations, and trusts. Tax
evasion often entails taxpayers deliberately misrepresenting the true state of their affairs
to the tax authorities to reduce their tax liability and includes dishonest tax reporting,
such as declaring less income, profits, or gains than the amounts earned, or overstating
deductions. It can be done in different ways like Smuggling of good, submitting false
tax returns, failing to pay the due on time, giving Bribery to officials, or giving
Inaccurate Financial Statements.
There were two cases of tax evasion on Cadbury, the first was on service tax for the year
2009-10 and the second was on excise duty for the year 2011-2013.
9.5 SERVICE TAX
The case is related to an evasion of service tax of Rs 13.43 crore by Cadbury India,
Mumbai. It has been adjudicated and rs11.75 crore was confirmed along with a penalty
of an equal amount to be paid by the company.
9.6 EXCISE DUTY
In the year 2011, the DGCEI (Directorate General of Central Excise Intelligence)
initiated a probe against the Cadbury dairy milk for allegedly misusing area-based
exemption for its new unit in Baddi, Himachal Pradesh, even before the industrial unit
came into existence. According to the norm, new industrial units in Himachal Pradesh
can get full exemption from excise duty for production of specified goods for 10 years,
but the unit should have been established before March 2010 to avail of this exemption.
During the investigation, it was found that Cadbury claimed excise duty exemption for
its new unit relating to a period even before it came into existence.
The demand of 580 crores was raised against Mondelez India Foods Pvt Ltd, for
allegedly evading excise duty by fraudulently taking exemption for a “ghost” production
unit in Baddi. In 2017 the case has been handed over to CBI for further investigation.

28 | P a g e
10. Conclusion:
In the field of concept selling by using the ideas and by inventions/
imagination/psychological and cultural fields. Cadbury have mixed up various human
sentiments and created an altogether mixed market where they are able to promote and
in cash benefits for themselves as well for building different human/socio relations.
This is a very clear-cut picture where a team of hard-core professionals are using every
opportunity directly touching the emotions of the masses but spending minimum money
possible on advertisement.
It is a sort of monopolistic area where by spending very low, using easiest and
economical method, products are developed and sold, giving, the customers no chance
or alternative.

A Product analysis of Cadbury Dairy Milk

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