TAM AdEx 2023 Cross Media Advertising Recap - Auto Sector
Cadbury Fuse Case Study
1. What are the stages of NPD?
What are the stages of PLC?
What are the strategies involved in NPD?
When did the sales of Cadbury decline in the
recent past? Mention the incident
What were the objectives of fuse?
How did the name ‘Fuse’ came into
existence?
What are the top 3 countries in confectionary
market? Mention rank of the countries
Symbiosis Institute of Telecom Management 10/11/2014
2. BY
SAI PRANEETH
UDIT PANDEY
VISHRANT SHAH
VIVEK NAIR
Symbiosis Institute of Telecom Management 10/11/2014
3. A GENERAL TERM FOR THE PRODUCTS OF THE SEEDS OF THE COCOA TREE
USED FOR MAKING BEVERAGES OR CONFECTIONARY
HARVESTING:
EACH TREE GIVES 20-30 PODS. 1 YEAR OF HARVEST GIVES 450G OF
CHOCOLATE.
RIPE PODS COLLECTED IN BASKETS BY HAND.
PODS ARE SPLIT OPEN.
SEEDS REMOVED,FERMENTED (WHITE PULP),DRIED AND SOLD.
Symbiosis Institute of Telecom Management 10/11/2014
4. Each of the podgive 20-30 beans, the pods
weigh 500g and are 20cm in length.
BEANS ARE COATED WITH WHITE PULP AND
ARE 2 cm LONG.
Symbiosis Institute of Telecom Management 10/11/2014
5. COCOA BEANS IN THE FACTORY
WINNOWING
ROASTING
GRINDING
PROCESSING
Extract cocoa butter
Pulverize into powder
Ready to be made into chocolate
Symbiosis Institute of Telecom Management 10/11/2014
6. BASE- COCOA AND COCOA BUTTER
SUGAR AND CONDENSED MILK ADDED
Liquid Product
Evaporated to make crumb
REFINING (reducing the size of cocoa solid and sugar)
CONCHING(taste,texture,smell)
TEMPORING(finished and glossy look)
Symbiosis Institute of Telecom Management 10/11/2014
7. THE MARKET
GLOBAL MARKET TO BE AROUND 11O BILLION USD.
100 TONNES CONSUMED EVERY SECOND
INDIAN MARKET WORTH 5562 CRORES (400 Kgs PER
MINUTE).
TO GROW BY A CAGR OF 23%. BY 2018 WILL BE AT 341609
TONNES.
Symbiosis Institute of Telecom Management 10/11/2014
8. GLOBAL MARKET DOMINATED BY NORTH AMERICA AND WESTERN
EUROPE.
BRIC NATION ACCOUNT FOR 55% GROWTH IN CONFECTIONARY
GROWTH.
PERCEPTION OR MISCONCEPTION? 87 % MALES AND 91% FEMALES
RELISH CHOCOLATE.
Symbiosis Institute of Telecom Management 10/11/2014
9. MONDE IS DERIVED FROM THE LATIN WORD FOR WORLD AND DELEZ
IS A FANCIFUL EXPRESSION FOR DELICIOUS.
INCREASE THE WIDTH OF CHOCOLATE CONSUMPTION WITH LOW
PRICE POINT PACK
MAINTAIN MARKET AND IMAGE LEADERSHIP WITH MARKETING MIX
STRATEGIES.
BE A SIGNIFICANT PLAYER IN THE GIFTING SEGMENT.
Symbiosis Institute of Telecom Management 10/11/2014
10. PROMOTION OF BRANDS CARRYING MASS FRANCHISE WITHOUT
COMPROMISING QUALITY.
BETTER PRODUCT QUALITY AND PACKAGING
BETTER CAPITAL MANAGEMENT
INCREASE MARKETT PENETRATION ( ESPECIALLY RURAL MARKET)
Symbiosis Institute of Telecom Management 10/11/2014
11. INCOME – 3.9 MILLION USD.
Symbiosis Institute of Telecom Management 10/11/2014
12. CADBURY- History
Cadbury chocolates was started in Birmingham in 1824 by John
Cadbury.
Cadbury Dairy Milk came up with the mix of milk and chocolate tray
which is pretty much how the product still is.
No drastic change in the recipe of product but the packaging and the
representation and prominence of the ‘glass and half of milk’
logo has changed over a period of time.
1904- A new recipe is perfected by George Cadbury for milk chocolate.
1905- Cadbury launches Dairy Milk onto the market.
1913- Dairy Milk becomes Cadbury’s best selling line.
Symbiosis Institute of Telecom Management 10/11/2014
13. Cadbury India- Introduction
Began its operations in 1948 by importing
chocolates and then re-packing them
before distribution in the Indian market.
It currently has a market share of 70% in
the chocolate market and is way ahead of
its competitors.
Sales
Cadbury 70%
Others 14%
Nestle 16%
Symbiosis Institute of Telecom Management 10/11/2014
14. HEAD OFFICE:MUMBAI
FACTORIES: MALANPUR(UP), BADDI(J&K),
THANE, MUMBAI, BANGALORE
SALES OFFICES: DELHI, MUMBAI, CHENNAI,
KOLKATA
Symbiosis Institute of Telecom Management 10/11/2014
16. DEVELOPMENT
INTRODUCTION
GROWTH
MATURITY
SATURATION
DECLINE
Symbiosis Institute of Telecom Management 10/11/2014
17. Introduction
In the 1980’s CDM was positioned as the
‘perfect expression of love’, captured in
memorable memory of love.
During the early 1990’s ,communicating that
it was the real taste of chocolate.
In the 1994, came the path breaking ‘real
taste of life’ campaign.
The strategy paid off- the brand Cadbury
grew by over 40%.
Symbiosis Institute of Telecom Management 10/11/2014
18. GROWTH
1998- The new stage of growth for the brand
deals with popularizing consumption in a
social context ,especially in a more
traditional settings like weddings.
‘Khaane walo ka khaane ka bahana chhaiye’.
Cadbury Dairy Milk aimed to substantially
increase penetration levels with the award
winning ‘kuch khaas hai’ campaign.
The brand penetrated into smaller towns and
sales increase by 40%.
Symbiosis Institute of Telecom Management 10/11/2014
19. MATURITY
With Bachchan they also launched their
positioning of ‘Kuch meetha ho jaye’ bringing in
the tradition of celebrating a joyous occasion in
India with sweets and now Cadbury Dairy Milk in
particular.
The ‘Pehli Tareek Hai’ campaigns talked about
the importance of having Dairy Milk on your pay
day.
‘Shubh Arambh’ ads have brought back the old
charm of CDM with its very interesting insight of
mixing the tradition with the youth.
Symbiosis Institute of Telecom Management 10/11/2014
20. LEADING KNIGHT IN THE CADBURY PORTFOLIO
2nd LARGEST MARKET SHARE – 14%.
5STAR AND 5STARS CRUNCHYS – WERE A HIT WITH THE MASSES.
Symbiosis Institute of Telecom Management 10/11/2014
21. LAUNCHED IN 1996.
TWO VARIANTS – XL,XXL
MINI LAUNCHED IN 2003 – 2Rs.
Symbiosis Institute of Telecom Management 10/11/2014
22. AIMED AT REPLACING TRADITIONAL MITHAAIS AND DRY FRUITS.
HAS KEPT DIWALI AND RAKHI AS THE MAXIMUN SALE SEASON.
Symbiosis Institute of Telecom Management 10/11/2014
23. FOUNDED BY A LOCAL CONFECTIONARY FIRM IN LONDON IN THE
1960s.
A PART OF CADBURY BY 1971 TO BECOME THE SECOND LARGEST
BRAND IN THE COMPANY.
IN 2006, LAUNCHED A CRUNCHY ECLAIRS WITH A HARD CARAMEL.
Symbiosis Institute of Telecom Management 10/11/2014
24. ENTERED THE INDIAN MARKET IN 1968
THE SUGAR COATED COCOA CHOCOLATE HAS CAPTURED THE
CONSUMER’S MINDS AND HEARTS ( ESPECIALLY KIDS).
STILL GOING STRONG.
Symbiosis Institute of Telecom Management 10/11/2014
25. LAUNCHED IN 2004-05.
AVAILABLE IN REGULAR, COFFEE AND STRAWBERRY FLAVOURS.
IN 5 AND 10 Rs PACKS.
Symbiosis Institute of Telecom Management 10/11/2014
26. Consumer "Needs and Wants" Change
Product Reaches The End Of Its Product
Life Cycle
Competitors
All Products Experiencing Problems
Symbiosis Institute of Telecom Management 10/11/2014
27. • Idea
Generation
• Idea Screening
• Concept
• Development
and Testing
• Business
Analysis
• Prototype
Development
• Market Testing
• Commercial-ization
Symbiosis Institute of Telecom Management 10/11/2014
29. In practice, most new products
are improvements on existing products.
Generally easier and less risky than
developing completely new ideas
Better understanding of the technologies
involved and customer preferences for that
kind of product
Development process is usually less complex,
requires less investment and can be
completed more quickly.
Symbiosis Institute of Telecom Management 10/11/2014
30. Businesses like to think in terms of a 'unique
selling proposition' (USP) - a clear reason why
customers should switch to your product
Prepare a product specification listing
Effective design is wide-ranging as well as
fulfilling the product spec, it includes
considering how component and processing
costs can be minimized.
As the design progresses, you may have one
or more pre-launch stages when you test the
product.
Symbiosis Institute of Telecom Management 10/11/2014
31. After product concept/marketing strategy is
developed, company can evaluate proposal’s
business attractiveness
Estimating Total Sales
Total sales is made up of:
1. First time sales
2. Replacement sales
3. Repeat sales
Symbiosis Institute of Telecom Management 10/11/2014
32. Estimating Costs & Profits:
Costs estimated for 5 year period jointly by
1. Research & Development
2. Manufacturing
3. Marketing
4. Finance
Based on the above data maximum
investment exposure,payback period,break
even point and risk analysis are determined
Symbiosis Institute of Telecom Management 10/11/2014
33. To use a prototype to assess customer
reaction to the look and feel of a product
Test for Functionality
Test for Psychological aspects such as
color,size and taste
Test for Looks/Styles.
Test for Price Fitment.
Symbiosis Institute of Telecom Management 10/11/2014
35. • The ‘Fuse’ concept was developed after market
research identified the growth of snacking and a
definite gap in the market for a more chocolaty
snack.
• The name fuse was chosen to communicate the
fusion of snacking ingredients.
• Extensive testing was done by mixing various
ingredients and the results were multiplied into
repeat purchase and the volume of bars required
were calculated.
• 82% of people rated it as excellent, and 83% said
they would buy it again.
Symbiosis Institute of Telecom Management 10/11/2014
36. Package design and brand name.
Launched on a Tuesday, 24th September 1996
christened as the ‘Fuseday’.
Extensive advertisements.
1st time in 20 years Cadbury had a
nationwide launch.
Sales of over 40 million bars in the opening
week.
Symbiosis Institute of Telecom Management 10/11/2014
37. Important to analyse the product after
launch.
Chocolate market grew by 9% in 1996
19% of this growth is attributable to Fuse- a
brand which was there in the market for only
a quarter of a year.
Symbiosis Institute of Telecom Management 10/11/2014
38. Stopped production in 2006.
Increase in visibility of rival products
At the same time lack of advertisements of
Fuse.
Symbiosis Institute of Telecom Management 10/11/2014