4. This project gave me a clear insight into real world business
situations and gave me ample opportunities to apply my theoretical
Knowledge to practical situations.
I would also like to thank my classmates for their suggestions and
support in completing this project.
5. Certificate
This is to certify that Miss Rama
Student of class BBA of Priyanka Rani
College successfully completed his/her project under my guidance.
Teacher’s signature…………….
6. EXECUTIVE SUMMARY
The Cadbury’s India’s number one chocolate is able to share
with their market insights based upon unparallel breath of
chocolate experience. The merge in 1969 with Schweppes
and the subsequent development of the business have led to
Cadbury Schweppes taking the lead in both, the
confectionery and soft drink market Intec UK and becoming
a major force in the international market. Cadbury
Schweppes today manufactures product in 60 countries and
a trade in staggering 120.This project is a sincere effort to
look for the market potential in chocolate and confectionery
industry. A descriptive research procedure had been applied
to come to the conclusions of the project. A detailed
questionnaire had been prepared and there sponsors of the
concerned people had been collected for the analysis. The
project later concluded in recommending the market
potential of the chocolate and confectioneries.
7. INTRODUCTION
The Cadbury’s Inc has taken the opportunity to offer us a
broader view of chocolate category. The Cadbury’s India’s no.1
Chocolate is able to share with their market insights based
upon unparalleled breath of chocolate experience. Cadbury has
grown from strength to strength with new technologies being
introduced to make the Cadbury confectionary business, one of
the most efficient in the world. The merge in 1969 with
Schweppes and the subsequent development of the business
have led to Cadbury Schweppes taking the lead in both, the
confectionary and soft drink market Intech UK and becoming a
major force in the international market. Cadbury Schweppes
today manufactures product in 60 countries and a trade in
staggering 120. The Cadbury story is a fascinating story of a
family business that grew in one of the biggest, most loved
chocolate brand in the world. A story that you will remember
as the story of “The taste of life”.
8. OBJECTIVE OF THE PROJECT
My main objective of the study on this project is to
demonstrate the marketing strategies of Cadbury India Ltd.
And to arrive at my findings, I have done few analysis :-
(a) SWOT Analysis
(B) PEST Analysis
And also 5 P’s of Marketing:-
• Product
• Price
• Physical Distribution
• Promotion
• Positioning
9. RESEARCH METHODOLOGY
Achieving accuracy in any research requires in depth study
regarding the subject. As the prime objective of the project
is to compare Cadbury with the existing competitors in the
market and the impact of Nestle on Cadbury, the research
methodology adopted is basically based on primary data via
which the most recent and accurate piece of first hand
information could be collected. Secondary data has been
used to support primary data wherever needed.
Primary data was collected using the following techniques
Questionnaire Method
Direct Interview Method and
Observation Method
The main tool used was, the questionnaire method. Further
direct interview method, where a face to face formal
interview was taken. Lastly observation method has been
continuous with the questionnaire method, as one
10. continuously observes the surrounding environment he
works in.
Procedure of research methodology:
# Target geographic area was Delhi. NCR.
# To these geographical area questionnaire was given, the
questionnaire was a combination of both open ended and
closed ended questions.
# The date during which questionnaires were filled was
between six week.
# Some dealers were also interviewed to know their
prospective. Interviews with the honor of retailer of
Cadbury were also conducted.
# Finally the collected data and information was analyzed
and compiled to arrive at the conclusion and
recommendations given.
11. Sources of secondary data:
Used to obtain information on, Cadbury and its competitor
history, current issues, policies, procedures etc, wherever
required.
# Internet
# Magazines
# Newspapers
12.
13. The legend called Cadbury
1824 – A once business was opened in 1824 by a young
Quaker, John Cadbury, in Bull street Birmingham was to be
the foundation of Cadbury Limited, now one of the world’s
largest producers of chocolate.
1831 – By this year the business had changed from a
grocery shop and John Cadbury had become a manufacturer
of drinking chocolate and cocoa. This was the start of
Cadbury manufacturing business as it is known today. A
larger factory in Bridge Street Birmingham was rented in
1847, John Cadbury was joined by his brother Birmingham
and the business became Cadbury Brother of Birmingham.
1861 – John Cadbury resigned his business and handed
over to his sons, Richard, 25and George, 21 who after 5
difficult years almost shut down the business to take up
other vocation. Fortunately for generation of chocolate
lovers, they didn’t.
1866 – Saw a turning point for the company with the
introduction of a process for pressing the cocoa butter from
14. the coca beans. This not only enabled Cadbury Brothers to
produce pure coca essence, but the plentiful supply of coca
butter remaining was also used to make new kind of eating
chocolate. The essence was advertised as ‘Absolutely pure,
therefore best’.
1879 – Business prospered from this time and Cadbury
Brother outgrew the Bridge Street factory, moving in 1879
to a ‘Greenfield’ site some miles from the center of
Birmingham which came to call Bourneville. The opening of
the Cadbury factory in
a garden also heralded a new era in industrial relations and
employee welfare with joint consultation being just one of
the introduced by the pioneering Cadbury Brothers.
1899 – In this year the business private limited
company – Cadbury Brothers Limited. Progress since the
start of the century through the inter – war years nowadays
been rapid. Chocolate has moved being a “luxury” item to
well within the financial reach of everyone.
15. 1905 – Cadbury has many famous brands with one of
major success story being Cadbury’s Dairy Milk chocolate
launched in 1905, today Britain’s favorite module chocolate
bar.
Cadbury today is the market leader in the U.K chocolate
confectionary market, employing the most advanced
processing technology and management information and
control techniques. The company is the confectionary
division of Cadbury Schweppes plc which is major force in
the confectionary and soft drinks international market.
World - wide Cadbury is one of the pre – eminent names in
confectionary with impressive range of famous brands.
Quality has been the focus of the Cadbury business from
the very beginning as generations have worked to produce
chocolate with that very special taste, smoothness and snap,
so characteristics of Cadbury’s chocolate.
17. Design Development
Milk chocolate for eating was first made by Cadbury in
1897 by adding milk powder paste to the dark chocolate recipe
of cocoa mass, cocoa butter and sugar. By today’s standards
this chocolate was not particularly good as it was very coarse
and dry andwas not sweet or milky enough for public tastes.
At that time there was a great deal of competition in the
U.K from continental manufactures, not only the French with
their fancy chocolates but also from the Swiss, who were
renowned for their milk chocolate. Led by George Cadbury
junior, the Bourneville experts set out to meet the challenge. A
considerable amount of time and money was spent on research
and new plant design to produce the new chocolate in much
large quantities.
A new recipe was formulated fresh milk and new
production processes were developed to produce milk –
chocolate not as merely as good as but better than the
imported milk chocolate.
18. Four years of hard work were invested in the project and
in 1905 what was to be Cadbury’s top selling brand was
launched. Three names were considered Jersey Highland Milk
and Dairy Maid. Dairy Maid became Dairy Milk and Cadbury’s
Dairy Milk with its unique flavor and smooth creamy texture
was ready to challenge the Swiss domination of the milk
chocolate market.
By 1913 it had become the company’s bestselling line and
in the mid twenties Cadbury’s Dairy Milk gained its status as
the brand leader, a position that it has held ever since. Today
more than 250 million bars of Cadbury’s Dairy Milk are made
every year and sales reach over 100 million Pound in value.
While advertising and label design g-have changed with
fashion and considerable strides have been made in
manufacturing technologies, the recipe for Cadbury’s Dairy
Milk its ‘glass and a half of full cream milk in every half pound
produced’ is still basically the same as when it was launched.
19. Cadbury’s Dairy Milk Story
Chocolate has been enjoyed by successive generation
since the manufacturing process was developed in the
Victorian Times. Good chocolates are an art form depending
on recipe traditions, which have grown over the years.
Chocolates have use their skills to make balanced recipe in
which all the ingredients combine to produced chocolate
with all the characteristics that enable full delicious taste to
be enjoyed by the consumers.
By today’s standards the first chocolate for eating
would have been considered quite unpalatable. It was the
introduction of the Van Hutten cocoa press from
Hollandthat was the major breakthrough in the chocolate
production as it provided extra cocoa butter needed to
make a smooth glossy chocolate.
20. Cadbury’s Milk Tray – 1915
Milk Tray has maintained its popularity in the changing world
since the milk chocolate assortment made with the famous
Cadbury’s Dairy Milk chocolate was first introduced in 1915.
The name ‘tray’ derived from the way in which the original
assortment was delivered to the shops. Originally Milk Tray
was packed in five and as half pound boxes, arranged on
trays from which it was sold loose o customers.
The half pound deep – lidded box with the traditional purple
background and gold script was introduced in 1916,
followed by one pound box in 1924.
With its stylish, without frills presentation Milk Tray was
the assortment for everyday, not just special occasion and it
represented the best buy in the chocolate for millions of
people. The pack design has been regularly updated and the
assortment itself has changed in line with consumers taste
and preferences. By the end mid – thirties the Cadbury’s
Milk Tray assortment outsold all its competitions and today
21. it is still one of the most popular boxes of chocolates in this
country.
Cadbury Schweppes
Cadbury Schweppes plc, a global beverage and confectionary
giant with annual sale of Rs 20,000 crores ,is the worlds number
one non – cola soft drink company having bottling and
partnership operations in 14 countries and franchises of its
brand in a further 86 countries around the world. Its Hundred
Percent subsidiary in India named Cadbury Schweppes Beverage
India (private) Limited (CSBIL) started operation in March 1995.
The first brand was launched was crush which was later followed
by Canada Dry, Schweppes Tonic Water, Schweppes Bitter
Lemon.
22. CSBIL with its franchise agreement with 19 bottles
throughout India proposes to be a household name. It has a
policy for FOBOs (Franchise owned bottling operations
unlike Coke and Pepsi which prefer COBO,s (Company
owned bottling operations).In FOBO the beverages company
only supplies the concentrate and the marketing support to
build brand equity. The other aspects like machinery,
bottling line, land and distribution is the responsibility of
the bottler. As its CEO Mr. Ashok Jain says, “we are the
software, they are the hardware”.
25. SWOT
Strength
1. Very strong brand equity in India.
2. Due to its 54 years presence in India – has deep penetration
– 2100 distributors; 450,000 retailers, 60 mid urban (22%)
customers.
3. Three sectors; Chocs (70% share), Confec (4%), food drinks
(14% - leader in brown segment).
4. Low cost of production due to economic of scale. That means
higher profits and / or more co petitioners. Better market
penetration.
5. Second best manufacturing location throughout Cadbury
Schweppes.
26. Weakness
1. Poor technology in India compared to current international
technologies (Godiva, Mozart, Frazer, Dint, Nauseas, etc...)
2. Ltd. Key products, only one central brand (CDM). Pralines
range totally wising in India.
3. “Make in India” tag once the economy opens up wore and
imports rush in.
Opportunities
1. Tremendous scope for per capita consumption (160 gms of 8
– 10 kg)
2. Increasing per capita national income resulting in higher
disposable income.
3. Growing middle class and growing urban population.
4. Increasing gifts cultures.
5. Substitute to “Mithais” with higher calories/cholesterol.
27. Threats
a. Major
None. Due to low cost and highest brand equity, it is today in
India.
b. Minor
Globalization will being in better brands for upper end of the
market (Liest, Monarch, Godiva, etc…).
Conclusion
Will lose market share with globalization (a la Maruti) but will
remain brand leader.
Pest Analysis
P: since the budget range is decontrolled, no political effects
are envisaged.
28. E: 1) increasing per capita income resulting in higher
disposable income
2) Growing middle class/urban population –
increase in demand
3) Low cost of production – better penetration
S: 1) Per capita consumption expected to increase –
fashion
2) Increasing gifts culture – increase in deman
3) Lower cholesterol than “mithais” (sweet meat) –
substitute demand
T: Will have to reinforce technology to international
levels once India is a “free” economy
29. PRODUCT
Satisfaction suffices. But delight dazzles the average company
will compete for customer by conforming to her expectation
consistently. But the winner will surpass them by constantly
exceeding her expectation, delivering to her door step
additional benefits which she would never have imagined
possible. Cadbury’s offer such product. The wide variety
products offered by the company include:
I. Chocolate & Confectionary
1) Dairy Milk
2) Fruit & Nut
3) 5 Star
4) Break
5) Perk
6) Gems
7) Eclairs
8) Nutties
9) Temptation
10) Milk Treat
31. Pricing
Make no mistake. Second P of marketing is not another name
for blindly lowering prices and relying on this strategy alone to
increase sales dramatically. The strategy used by Cadbury’s is
for matching the value that customer pays to buy the product
with the expectation they have about what the production is
worth to them.
Cadbury’s has launched various products which cater to all
customer segments. So every customer segment has different
price expectation from the product. Therefore maximizing the
returns involves identifying right price level for each segment,
and then progressively moving through them.
33. BRAND ISN’T THE ONLY ANY MORE. Marketers and finance
manager need a new term to evaluate their business:
Distribution Equity. It takes much more time and effort to
build, but once built, distribution equity is much together to
erode.
The fundamental axiom of Indian consumer market is this:
You can set up a state-of –the-art manufacturing facility, hire
the hottest strategies on the block, swamp prime television
with best Ads, but the end of it all, you would be know of
selling your products. The cardinal task before the Indian
market is managing is to shoe-horn its product on retail
shelves. Buyers are paying for distribution equity not brand
equity and market shares. Why does the company need
distribution equity more anything in India? With technology
and competitive pressure slash in it is becoming increasing
difficult for marketers to retain a unique product
differentiation for ling period. In a product and price parity
34. situation, the brand that sells more is the one that reaches the
highest number of customers. India –
1 billion people, 155 million household has over 4 million retail
outlets in5351 urban markets and 552725 villages, spread
cross 3.28 million sq. km.
Television has already primed and population for
consumption, and the marketer who can get to the to the
consumer ahead of competition will give a hard – to – overtake
lead. But getting their means managing wildly different
terrains-climate, language, value system, life style, transport
and communication network. And your brand equity isn’t
going to help when it comes to tackling these issues.
Own distribution network consist of clearing and
forwarding (C&F) agents &distribution stockiest. This network
35. of distribution can either contact wholesalers and which in
turn retailers or the distributors can contact to the retailers
directly.
Once the stock product reaches retailers, the prospective
customers can have access to the product.
Cadbury’s distributes the product in the manner stated
above.
Cadbury’s distribution network has expanded from 1990
distributors last year to2100 distributors and 4,50,000
retailers. Beside use of TI tom improves logistics, Cadbury is
also attempting to improve the distribution quality. To address
the issue of product stability, it has installed vise colors at
several outlets. This helps in maintaining consumption in
summer when sales usually drops due to the fact thatthe heal
effects product quality and thereby off takes.
Looking at the low penetration of the chocolate, a
distribution expansion would itself being incremental volume.
The other reason is arch rival Nestle reaches more than a
million retailers.
36. This increase in distribution is going to be accompanied
by reduction in channel costs. Cadbury’s marketing costs, at
18% of total costs, is much higher than Nestlé’s12% or even
pure sugar confectionery major Parry’s 11%. The company is
looking to reduce this parity level. At Cadbury, they believe
that selling confectionery is it like selling soft drinks.
37. Promotion
If an advertisement is to communicate effectively, the
receiver must at least half want it to, and be prepared too take
step toward the sender. Effective advertising is rarely
hectoring or loudly explicit…. It often both attracts and
generates arm feelings. More often than not, a successful
campaign has a stronger element of the unexpected a quality
that good advertising shares with much worthwhile literature.
To penetrate into the inner recesses of her memory,
communication must first ensure exposure, grab her attention
evoke her comprehension, grab her acceptance and then
extract retention competing with thousands of other units of
communication trying to do the same.
Finding showed that the adults felt too conscious to be
seen consuming a product actually meant for children. The
strategic response addresses the emotional appeal of the band
to the child within the adult. Naturally, that produced just the
value vacuum that Cadbury was looking to fill. Thereafter it
was the job of the advertising to communicate customer the
38. wonderful feeling that he could experience by re-discoursing
the careful, unself conscious, pleasure – seeking child within
himself – a graft these feeling onto the Ad campaign like
“Khane Walon Ko Khane KaBahana Chahiye” for CMD and
“Thodi Si Pet Pooja – Kabhi Bhi Kahin Bhi” for Perk have
been sure shot winner with the audience.
Whirl with the new launched temptations with the slogan
“Too To Share” the communication resolves around the
reluctance of a person who’s got their hand on a bar of
temptation to let anyone else to have a bite. As well as outdoor
and radio ads,
Ad agency contract has created communication for cinemas
and even ATM machines for the brand.
All ICICI’ s ATM a message flashes on the screen as soon as
customer insert his ATM card. It tells the customer that this
would be good time to get out of her temptation since he/she is
bound to be alone. Something familiar is planned for phone-book
as well. In cinemas, Cadbury has a message on-screen just before
the lights are dimmed to give them a chance to get their
39. temptations. There will also be after dinner sampling in
restaurants – to begin with, 30 catteries in Mumbai have been
selected.
The next round of activity will include the wafer-chocolate
Perk and the Picnic bar, which has faced problems with its taste,
because of the peanut it contains. Milk treat has also been
launched in a module bar form, just in time of Diwali gifting
market. Éclairs has got potential for much wide distribution, in a
small sweets that airlines, hostels, and up market retail outlet
offer to guest and customers.
Ad spend in 2000 was about 14% of sales and the
management said that plans to maintain as spend at this
level in the current year also.
Ad since any discussion today would be incomplete
without mention ‘e’ word, the management plans to tap this
new channel of marketing. Beside three company website
(i.e. www.cadburyindia .com, wwww.bourvita.com,
www.cadburygift.comthat the company has launched, it had
also entered into various marketing relationship with other
40. portals, specially targeted during festivals and events such
as Valentines day , etc….
It’s a combination of stiffing up its key brand,
researching and improving the newer products that haven’t
taken off, supported with high ad – spends that Cadbury
hopes will see it emerges stronger after the current
slowdown, as well as expand the market.
41. Positioning
In the 1970s consumers were ready to pay “more for
more”, and luxury goods flourished. In the 1980s, consumers
began to demand “more for same”, and the discounting era
grew strong. Today’s consumer demanding “more for less”, and
the winner will be that super value marketers…. Some of
today’s most successful companies recognize those customers
are more educated and able to recognize true customer value…
Positioning is simply concentrating on an idea – or – even
a word defines that company in the mind of the consumer. It is
more efficient to market one successful concept to one large
group of people than 50 product or service ideas to 50
separate group… repositioning is a must when customer
attitude have changed and product have strayed away from the
consumer’s long standing perception of them…
Cadbury’s is an anchor in sea of confectionary products.
As a variety of competitive claims assails her senses, today
customer uses complicated decision making process to assess
the alternative before making a purchase. Since Cadbury’s is
42. more clearly associated with a particular set of attributes in
terms of benefits and prices, the quicker becomes her search
process. Positioning of individual product:
1) CMD: is and always remain flagship brand. The punch by
the company for advertising this product life. ‘Real taste of
Life’, itself defines the positioning of the product. The chocolate
is meant for all age groups. It symbolizes fun, enjoyment, good
items. It has goodness of milk, taste and appetite appeal.
2) 5 star: although positioned internationally as an energy
bar, 5 star was positioned on an emotional platform in India
during the late 1980s. Symbolizing togetherness, 5 star was
originally targeted at teenagers. In June 1994, the company
reworked the strategy for 5 star to make it a source of energy.
In fact, before the launch of Perk, 5 star’s energy bar
positioning made it a snacking chocolate.
3) Éclairs: competing in the chewable toffees segment. Éclairs
was re-launched during the mid-nineties with a new name,
Dairy Milk Éclairs.
43. 4) Gems: broadcasting Gems, though, didn’t prove to be
feasible proposition for Cadbury. Targeted at children under
12 years with ‘Gems Bond’ advertising. Cadbury decided to too
teenagers with the ‘Smart Very Smart’ campaign. But now, the
company is retargeting children with its animated commercial.
“Gems are the best brand to speak to children. Colorful
chocolate buttons appeal most to children and that is why
Cadbury is re-targeting children.”
5) Crackle: it was the first Cadbury’s chocolate to have
crunch in it. It was targeted as a funky chocolate to add spark
to life.
6) Perk: in September, 1995, Cadbury preempted the launch
of Nestlé’s Kit-Kat by rushing a new brand, Perk into the
market. Positioned much further on the functional scale than 5
44. star, Perk was meant to be light snack-product for subduing
the first pangs of hunger.
7) Bournvita: positioned as tasty health drink. While its
competitors concentrated only on health aspect, Bournvita
combined the nutritious value with taste.
Cadbury’s Market Segment
Market place for any product is comprised of many different
segments of consumers, each with different needs and wants.
Markets segmentation can be defined in a number of ways such
as:
Demographic variables (e.g. Consumers are groups,
gender, material states income etc…)
The lifestyle of consumers (i.e. their interests and
activities) the benefits which consumers look for in a
45. product or on the occasions when the product might be
consumed.
Cadbury takes into account all these factors when
producing a range of products. It targets different
segments within the market,
such as the.
Break segment – products
which are normally consume as
a snatched break and often with
tea and coffee, for example
Cadbury’s Perk and snack range.
Impulse segment – these products are often purchase on
impulse, eating these and then. They include product
such as Cadbury’s Dairy Milk.
Take home segment – this describes product that are
normally purchased in supermarkets, taken home
consumed at a later stage.
46. The Real Taste of Rejuvenation
It was the market – leader, but sales inched along. It focused
firmly on its target segment, but the real buyer lay beyond. For
seven long years, Cadbury’s Dairy Milk chocolate suffered
stagnancy even as other consumer products boomed. Just how
did the company rejuvenate an old brand to create the
marketing megs-hit of the199s?
It Stand First Among Second coming. And it wasn’t so much a
re-launch as it was a process of rejuvenation. Over a period of
12 months, starting February, 1994, the Rs. 314 crore
confectionery makers Cadbury embarked on the most
outrageous repositioning exercise in the recent history of
Indian marketing. For, it systematically dismantled the
franchise that the company had built over 30 years of its
flagship brand, Cadbury’s Dairy Milk (CDM)-Cadbury’s Milk
chocolate until1986-destroying the very fundamental of
47. generic association that had made million of Indians refer to a
bar of a chocolate as a “Cadbury”.
More proof of the chocolate is in the eating: two years into
process, CDM’s market share at 25%, with sale rising by an
average 40% per annum.
The Diagnosis
Today, The Real Taste of Life campaign, which served
Up chocolate in general, and COM in particular, into the
consciousness of adult, has already become a classic of
advertising and marketing. By 1993, Cadbury was desperately
seeking growth for the brand… “With a market share of 70%,
trying to win away customers from competitors in this
stagnant market wouldn’t help. They had to find new
customers, people who’d never bought chocolate before. Or,
they had to increase consumption levels”.
The obvious solution, in a peculiar predicament. Despite low
penetration, both the brand and the category were displaying
symptoms of age: faltering growth, high recognition, and lack
48. of excitement. The market research revealed the cause of the
graying: chocolate wasn’t
a snack in India. “In mature markets, chocolate straddle a
continuum, from boutique product – packaged raw indulgence –
to a casual food”. So, Cadbury whipped up a growth solution that
involved associating the brand with snacking and functionally,
which inevitably go together with high consumption rates in the
Western markets. The next step: identify the barriers preventing
consumers from chocolate as a snack.
A battery of test, both quantitative and qualitative, comparing
chocolate consumption to a basket of competitive products
revealed an unmistakable answer.
49. ‘’Cadbury’s Was Caught In Its Own Trap”
How? The company had, over decades, created a context
of chocolate consumption that was now chocking growth
possibilities. “The baggage of the past was so overpowering
that people didn’t get influenced by minor shifts in the
message”. In fact, the behavioral and attitudinal patterns
conveyed by the communication tobuild the brand were
proving restrictive. For, Cadbury had, using the traditional
demographic variables of age, socio-economic groups, and
usage intensity, positioned COM as a product that elders –
typically, parents – bought for children –typically, their own.
But admittedly – enduring values of love and sharing, parental
affection, and reward that Cadbury had labored to associate
with the brand, which had helped it forge a relationship with
customers, had relegated it to being a special – occasion item,
ruling out increased individual consumption. After all, special
occasion item, ruling out increased individual consumption.
After all, special occasion were meant to be a rare. A typical Ad
would show parents bringing home chocolate for their child. It
would never, ever, show the child, or the parent, buying it for
50. himself or herself. The punch line – Sometimes Cadbury’s Can
Say It Better Than Words, and Nothing But The Best Will
Do – reinforced the notion, with an unwelcome side – effect:
adults, as research showed, felt distinctly guilty and
embarrassed about eating chocolate, whether alone or socially.
“Not only were adults not indulging in chocolates, but they
were also actively curtailing child consumption” solution?
Forget children as the core consumer. Universalize the
product, targeting the parents.
The Tests
Despite the Need To Clear The residual memory of CDM’s
former association, caution prevented a big break with the
past, forcing Cadbury to experiment with a combination of
continuity and change. The process entailed understanding the
foundation of the brand, since it was these that would support
the new structure”. Out went the caring - and - sharing
element, but the family context stayed. “Cadbury had two
51. pillars, so it made sense to change one”. Chocolate should be
eaten whenever you feel like. It was an impulse item, so why
shouldn’t it be sold as one?”. The first of the two commercial
focused on functionality, purging the emotional element. Is the
storyline, The father watches TV, engrossed, gnawing away at a
bar of CDM. The children enter, followed by the mother-but, by
that time, the father has completed the distinctly un paternal
act of devouring the entire bar. The children are shocked,
where upon the produces another bar for them-only to eat that
up too. Finally, the mother brings another bar out of her bag.
The last shot more CDM bars strew around casually. The
second commercial conveyed the same message, depicting four
member of a family doing their own thing on a Sunday
afternoon, each casually munching away on chocolates. The
less than – subtle message: eating chocolate’s just an everyday
affair, without special occasion or relationship coming into
play. Despite their strategic intent, both ads failed on pre –
airing tests. Why for stators, children were outraged at the idea
of a parent consuming chocolate, while adults were downright
angry at the notion of the father depriving his children of
52. chocolate bar. Just as important, consumer rejected the idea
that chocolate-eating could be equated with mechanical
activities like combing one’s hair. After all, chocolates were
about feelings. There had to be magic, romance, love and
emotion. These elements had been ripped away from the
advertising. It was sans emotion”.
“Parent Are Different From Adults”
Even as the ad failed, however, they generated a valuable
byproduct, in the form of a new insight, into adult behavior.
“Using transactional analysis on response, Cadbury’s found
that adult as parents behave very differently from adults as
adults. People forbid their children from having chips, but
gorge themselves. “The implication”:-“The moment the adult
was shown in the context of his role as a parent, all his
cognitive preconception about the product would come to the
fore. He’d think about the reasons why, and the block would
automatically come up”. Tap child-ego state within the adult,
stimulating desire, spontaneity, and the craving for instant
gratification.
53. The Prescription
The crucial question that Cadbury was confronted with: what
strategy should it deploy to rejuvenate COM in a way that
would appeal to the child lurking within the adult? To inject a
modern flavor into COM, they chose to create a new brand
identity, borrowing a leaf from marketing guru David Aaker,
who decrees that brand identity should establish a relationship
between the brand and the customer by generating value
proposition involving functional, emotional, or self-expressive
benefits.
“The Ads Had To Be Linkable”
“The consumer will always tell what his current belief system
is, not what it should be Cadbury’s job to mould has habits and
behavior in a way that would increase consumption for
product and brand”.
54. “Impulse Drives Chocolate Sales”
One of the tools Cadbury’s used was Jean – Neal Kapferer’s
Brand Prism model to examine whether contemporary value
systems offered a peg on which the brand could be judge. The
study disclosed, interlaid, a distinct shift from collectivism to
individualism, with the pre – 1990’s sacrosanct values of filial
and family love being overshadowed by the manifestation of a
larger need for self – expression. “There was a definite
yearning to be free child”. Therein lay the opportunity for both
unshackling consumption and creating all-new association for
CDM.
The Elixir
Having decided to barter the distinctly use selfish values
of sharing and caring for the suspiciously self-centered one of
self-expression, Cadbury’s people insisted that the rejuvenate
be enriched with compensation – and equally enduring –
positive values: universal truths, enduring human values, and
universal moment of joy. To translate the brief into the
55. commercial, they decide to simply portray occasion of
childlike-but not childish-behavior from adults, without
explicitly identifying adults as the target customer.
“They left the connection to be made by the customer” “In
the process they were able to get viewer involvement and high
levels of empathy. Nowhere did they actually say, you’re an
adult, you can eat it. Because nobody wants to be told”. Thus it
was that, the montage of the child in the man-the old man
kicking the football; the pregnant woman carving a chocolate;
young girl breaking into a spirit; the Young man tossing a bar
of chocolate at his sweet-heart departing in a bus-was created.
That the consumption had to be liked before it could penetrate
the cultural resistance to chocolate consumption by adults was
obvious. Taking a contrition stance, Cadbury decided to test
the commercial being devised by O&M’s creative team notfor
the tire battery of likeability, comprehension, credibility and
behavior modification – but only for the first two. “If asked
upfront, the consumer was hardly likely to consider the
dramatically-different idea credible. Nor was there much
56. chance of her announcing an immediate change in behavior”.
But why like ability and comprehension?
Simple: the first was meant to be the vehicle on which the
daring idea-that adults should enjoy chocolate-would ride
into the consumer’s psyche. In other words, the commercial
was meant to make him smile at first-and only then realize the
import once of the message, which is where the
comprehension had to be tested. “What was clear in this case
was that likeability would have to include identification and
feeling warmth.”
Thodi Se Pet Puja, Khabi Bhi Kahin Bhi!
57.
58. The Real Taste of Life Campaign
The very first ad in the campaign in 94 was ‘block –
Buster’. It depicted the essence of one and a half glass of milk
pouring in to a boy Dairy Milk unique glass and half in to a
chunk icon shows the glass and a half of full cream milk flowing
in to the chunk of dairy milk conveying the deliciousness and
taste appeal of the gooey, creamy, smooth chocolate inside the
pack that children like. The mnemonic of 1 ½glass reached to
consumer through every magazine, poster, T.V, newspaper.
The second ad was montage of vignettes from everyday
lives of young and old which focused on showing a series of
emotions. The ad created a being out the child in the man
created to bring out the child in the. The old man kicking the
football, the pregnant women craving chocolate, young girls
breaking into a spirit, the young man tossing a bar chocolate at
his sweet heart departing into a bus. The common refrain
linking them was the adult in a free child mode – spottiness,
impulsive and care free. The ad was protested among adult’s
trough focus groups.
59. The ad received an overwhelming response. It was high on
likeability, evoked a great degree of empathy and identification
consumers’ response were those me…… “Feel like that…….”.
“Every feels like this”…….. Brand usage was perceived to cut
across all age groups and accessions. Consumers described
dairy milk as “… of all ages”“Eat, whenever you feel like it…you
do not have to wait for an occasion.”Dairy Milk had
successfully enabled the free child in the consumer subsequent
adverting used the same communication strategy.
Kya Swaad Hai Zindagi Ka!
The next ad featured an ongoing match in the field. Think
of a match India batting against Pakistan. The score, 6 runs to
win with 1 ball left and India wins the match. The ad shows a
girl dancing with jubilation on the cricket field when her hubby
hits the winning stroke. The award winning campaign,
designed by Ogilvy and matter, were intended to rid the Indian
chocolates eater of that guilt complex. The advertisement
suggested, through not in so many words, that it was ok to be
seen including in a chocolate in public. You could relate the
60.
61. sweetness of success of chocolate. The ad draws attention to
the actual eats experience. The fourth in this series was the girl
with on her hands. The ad focused on showing how the girl
relishes the Dairy Milk when she has Mahanadi on her hands.
The idea behind this advertisement was to show the nature of
chocolate as an impulse –driven product.
Post campaign saw a great turn around. Dairy Milk
transformed in toa young full brand full of zest. It came to be
recognized as an expression of spontaneity and in pulse. The
campaign succeeded I softening attitude towards chocolate
and lifting then out of the realm of kiddies / special occasion
only. It embraced a wide range emotion all build around them
that chocolate means different things to different people at
different times, but most importantly chocolate is Cadbury.
The New Campaign
And finally, with the launch of the new colloquial advertising
campaign ‘KhaanneinWallon Khaannein Ka Bahana Chahiya
featuring MTV VJ Cyrus Broach, Cadbury
62. India aimed to ‘substantially’ increase penetration level of the
chocolate category in the next few years.’ The new campaign is
worth noting as it clearly differs from the earlier one in terms
of rectifying the consumer perception about chocolate being an
up market impulse –driven product. The attempt now is to
change the image, to make chocolate eating a regular habit. The
current estimated penetration level of the chocolate category is
19% in the urban market. The objective behind the new
communication on Cadbury Dairy Milk is to make the chocolate
category more socially and culturally relevant and drive
penetration in the process. The new campaign has been
launched in tandem with the old ar@@ Winning ‘KuchKhass
Hai’ campaign and the media strategy is to let the two co – exist
towards a common vision “providing a Cadbury in every
pocket”.
Thodi Se Pet Puja, Khabi Bhi, Kahin Bhi!
63. Chocolate Market Share
The Indian chocolate market is getting bigger and better.
While on one hand, the premium segment (composing
imported varieties) is opening up on the other, companies like
Cadbury India are launching indigenous product made to
international standards. Of the 20,000 tonne chocolate market
worth about. 400 crore, Cadbury account for about 70%
followed by Nestle, with a share of around 20%. Amul has
about 5% of the market, with minor player taking the rest. The
battle, though, is between Cadbury and Nestle.
Though with a much smaller portfolio, Nestle is putting up
a tough fight. From a treat for kids, chocolate are now being
positioned near meal substitutes, thanks to the initiative taken
by the Cadbury India during early nineties.
64. The market itself has become broader based, in the sense
adults are an important target segment now. The reposting of
Cadbury’s Dairy Milk in 1994 as the ‘real taste of life (through
the Slice of Life and Cricket commercial by Ogilvy and Mather)
grew the entire milk chocolate by 20%, and gave the Cadbury’s
range – 5 Star, Gems,
Éclairs, Fruit & Nut, Crackle, Nutties, Butterscotch & Tiffns
–a new lease of life. In other words, it facilitated the
repositioning of Cadbury’s sub brands in the basket. Some o
the strategic clicked, while other did not quite take off. The
company is pushing the gifting segment, through occasion
linked gifts. Chocolates contribute to 64% of Cadbury’s
turnover. Confectionary sales accounting for 12% of turnover
is contributed largely by Éclairs.
The company attempted expanding its confectionary
product portfolio, with launch of sugar based confectionary
goodly and fruits, without much success. Cadbury also has a
strong brand vita in the malted health drink category which
account for 24% of turnover. There exists an even larger
65. unorganized market in the confectionary segment. Cadbury
has 4% of the market share in this segment. Leading national
players are nutrient, Pary’s Ravalgoan, Candico, Parle, Joyoco
India and Perfetti, the MNCs such as Joyco and Perfetti have
aggressively expanded their presence in the country in the last
few years.
Malted food drinks category consists of white drink and
down drink. White drinks accounts for almost two third
market of the 82,000 for market south and east are large
market for drinks, accounting for largest proportion of all
India’s sale. Cadbury’s Bourn Vita is leader in the down drink
coca based segment in the white drink segment Smith Kline’s
Horlicks in the Nestle Milo, GCMMF nitramul and other Smith
Kline brand Boost, Maltova and Viva Cadbury bold 14% market
share in food drinks segment.
Despite tough market condition and increased
competition Cadbury managed to record a double digit (11%)
top line growth in 2000. The company achieved a volume
growth of 5.2%. This was achieved through innovative
66. marketing strategies and focused advertising campaign foe
flagship brand Dairy Milk. Net profit rose sharply by 41.8% to
Rs. 520 million. Reduced material and energy cost and tioter
control over working capital over working capital and capital
expenditure enabled the company to improve the profitability.
Company added 8 million new consumers and saw its outlets
grow to 4.5 lakhs and consumer to 60 million. In the food
segment, Britannia is the leader brand with 21% among those
who expressed an opinion saying that they like advertising for
the brand Cadbury was clearly No.2with 18% to which CDM
throw in its weight with 13% and pork with 4%. For the
Chocolate company, Khane Walo Lo, Khane Ka Bhanna and the
KarwaCauth, Sports are clear winners. Tied for the brand place
are Amul, Parle and south based Arun Le Gram with 5%each.
Disappointment among bid brands Kissan and Maggi and
Kwality Walls (1%) each.
67.
68.
69. Cadbury’s Fruit & Nut
New Launch
Cadbury target kids with Milk Treat: - It is a product
that talks directly to the target consumer. The product benefits
have been defined as “The goodness of milk to the fun of
chocolate”. it combines both good health, multinational value
of milk along with the values of fun and excitement. The kinds
formally associate with Cadbury chocolate offering
.Temptation:-
It is aimed at the niche “international chocolate “ segment
of the chocolate market a segment how upgrade from brands
such as Cadbury’s to premium international offering such as
Tolerance, Lindit and Hershey. Roughly 5%of the total
domestic consumption expected to grow to some 10%. This
segment is too good to miss out on. The Previous Cadbury’s
70. range available in India did not offer consumer an option to
upgrade to
international chocolate within the Cadbury’s fold.
Temptation is an attempt to lug niche, priced Rs. 30.
Future Strategy
In the branded impulse market, the share of chocolate in
6.6% and Cadbury’s share
in the impulse segment is 4.8% factor like changing attitude,
higher disposable income, a large youth population, and low
penetration of chocolate (22% of urban population) point
towards a big opportunity of increasing the share of chocolate
in the branded impulse among the costly alternative in the
branded impulse market.
It appears that company is likely to play the value game to
expand the market encouraged by the recent success of its low
priced ‘value for many packs’. Various measures are
undertaken in all areas of operation to create value for the
future.
71. New channel of marketing such as gifting and child
connectivity and low end value for money product for
expanding the consumer base have been identified. In terms of
manufacturing management focus is on optimizing
manufacturing efficiencies and creating a world class
manufacturing location for CDM and Éclairs.
The company is today the second best manufacturing
location of Cadbury’s Schweppes in the world. Efficient
sourcing of key raw material i.e. coca through forward
purchase of imports, higher local consumption by entering
long term contract with farmer and
Undertaking efforts in expanding local coca area
developing. The initiatives in the terms of development a long
term domestic coca a sourcing base would field maximum
gains when commodity prices start moving up.
• Use of it to improve logistics and distribution
competitiveness
• Utilizing mass media to create and maintain brands.
72. • Expand the consumer base. The company has added 8
million new consumer in the current year and how has
consumer base of 60 million although the growth in absolute
numbers is lower than targeted, the company has been able to
increase the width of its consumer base through launch of low
priced products.
• Improving distribution quality by addressing issues of
product stability by installation of vise coolers at several
outlets. This would be really effective in maintaining
consumption in summer, when sales usually dip due to the fact
that the heat effects product quality and thereby consumption.
• The above are some steps being taken internally to
improve future operation and profitability. At the same time
the management is also aware of external changes taking place
in the competitive environment and is taking steps to remain
competitive in the future environment of free imports, lower
barrier to trade and the advent of all global players
In to the country. The management is not unduly
concerned about the huge deluge of imported chocolate brands
73. in the market place. It is of the view that size of this imported
premium market is look small to threaten its own volumes or
sales in fact, the company looks at the tree important as an
opportunity, where it could optimally use the global Cadbury
Schweppes portfolio. The company would be able to not only
provide greater variety, but it would also be more cost effective
to test market new product as well as improve speed of
response to change in consumer preference through imports.
The only concerns that the company has in this regard is the
current high level of duties, which limit the opportunity to
launch value for money products.
Changing Product Mix
Contributing to turnover1994 Contributing to turnover 2000
Chocolate 59% 64%
Sugar Confecting 9% 12%
Food Drink 32% 24%
74. Current Market Share
Chocolate 69.2%
Sugar Confectionary 4.0%
Food Drink 14.2%
Expanding Distribution Reach
2001 + Distribution
450000 Retail Outlet
60 Million Consumers
75. RECOMMENDATIONS
• Maintain dominance in chocolate, confectionery and market
leadership in blown drinks.
• New channels such as gifting, child connectivity and value for
money offering to be the key growth drives.
• Grow volume sales at least 20% p.a. over the next years.
• Achieve the goal of best manufacturing location in Cadbury
Schweppes world for Dairy Milk and Éclairs.
• One new major product launch every year.
76. The Cadbury Story
Cadbury’s success story
In 1984, John Cadbury founded U.K. company with one aim:- to
create the highest quality chocolate. By1969, when Cadbury
merged with the soft drink giant. Schweppes, Cadbury brands
were already famous all around world. Today Cadbury’s
production are enjoyed in 120 countries, with 40 chocolate
confectionary brands, Cadbury dominated markets as far as
the U.K. and Australia that’s why Cadbury have been dubbed
“The world’s master chocolate makers”.
The secret of Cadbury’s success
What is the secret of Cadbury’s continuing success first there’s
the careful selection of the finest cocoa beans from west Africa,
as well as tasty hazel nuts from Turkey and the fine sheet and
choicest natural ingredient available to us anywhere. Finally
there’s skillful marketing Cadbury always takes extreme care
in selecting and marketing the right range of product in every
cause.
77. Right from the stand Cadbury Dairy Milk Chocolate success has
been based on 4factors:-
Quality
Advertising
Value for money
The right product, the right partners, the right marketing, the
promotional back up and the right employees. These are the
ingredients in Cadbury’s latest recipes for success.
78. Case Study
Prior to deciding on the communication strategy for Cadbury
Dairy Milk it was important to understand the habits and
mindset towards chocolates. A large scale usage and attitude
study was conducted among adults.
The research revealed that: Adults were primarily purchasers,
and not consumers of chocolates. However, as foremost
children’s product, they exercised a strong influence on the
children’s consumption behavior. Adults acted as gatekeepers
of sorts when it came to food items. Considering the
advertising history, it came as no surprise that chocolate were
perceived as “kiddy” product and certainly not part of the
repertoire for products consumed socially. Chocolate
consumption among adults evoked feeling of self indulgence
and guilt. Chocolates seemed to offer virtually no significant
positive and certainly no overt psychogenic benefits.
Food and nutritive values associated with chocolates were low.
And, in fact they were categorized as hazard, being responsible
79. for obesity, dental and respiratory
problems. Brands images were undifferentiated and the
category had low saliency, “can do without”.
Purchase was almost always planned and triggered by motives
ranging from celebration, bribing and reward to gifting. For an
impulse product category such as chocolates, this was
likely to limit market growth. This conditioning and social
learning about chocolates was restricting consumption among
adults as well as driving them to restrict children’s
consumption. There was evidence to suggest the need for
shifting focus from child as chocolates consumers to adult’s
communication, hitherto, had always addressed adults as
purchasers rather than consumers. Communication had
positioned chocolates for specific situations, thus imposing
boundaries for the growth of the market. Emphasis on casual
80. everyday situation could help promote core consumption
opportunities. For low involvement product categories like
chocolates which offer emotional and sensory benefits, it is
suggested that communication is most effective with repeated
likeable ads promising unique and authentic emotional benefit
a shift from portraying everyday moments as an opposed to
special ones. The radical change however was focus on
bringing out the spontaneity in adults. And, finally CDM a
symbol of manipulation was henceforth to symbolize fun,
enjoyment and good times.
The mnemonic of a glass and half milk was to reinforce the
goodness of milk and cue physiological benefits. The only
variation was in the Rituals, where communication had shifted
81. from, and special occasion to every moment. A strong volume
growth was witnessed in the early 90’s when Cadbury,
repositioned chocolates from children to adult consumption.
The biggest opportunity is likely to stem from increasing the
consumer base.
82.
83. The Outlook
The Cadbury
management has cut down on its growth target by setting a
10%average volume target for next 3 years (as against
previous growth) coupled with in factionary price increases,
this could translate into top line growth of 14 –15%. This
target also appears difficult to achieve given the consumer
slowdown and the fact that the company’s consumer slow
down and the fact that company is dependent on single
category chocolates to drive growth.
Effect it expanding confection any portfolio have also not
yielded desired results. The management has declared its
intention to focus only in Éclairs (which forms a major position
84. of its 4% share in the confectionary segment) for the time
being in this category. In chocolates too ones remain on the 2-3
key brands as CDM, perk in E claims which have supported
growth in the past.
While new launched such as milk @ and Perk slims have been
doing will, the management expects that dairy milk would
continue to be the central driving force in Cadbury’s growth
and that all other brands would remain peripheral to this
central brand. Few Concerns Come To Mind With a market
share of 70% in the chocolate category and with the free
availability of international brands that you see in the market
today, it is only natural that
85. Cadbury’s market share will move down from here marinating
a 70% market share in a closed environment may have been
easy, but it certainly won’t be easy in liberalized environment
of free imports. And whatever be the anomalies of taxation or
low, the consumer is surely going to have a wider choice. And it
is going to be shared with other brands too in future. There is
additional challenge of Cadbury’s brand just aiming market
share when the consumer has a wide portfolio of brand to
choose from. While there would be new chocolates launch
towards the end of the year, the company has ruled out a real
big chocolates launch in the current year.
And it is too early yet to comment on the long term response to
the new launch temptations. They say chocolates are mostly
86. am impulse purchase. Therefore consumer would prefer
smaller, low cost packs to bigger higher priced ones. The
growth trend of the brands therefore clearly indicates that the
only brand that has grown is the one that gas received
tremendous marketing and advertising support Dairy Milk
withdraw support for any brand and growth loses momentum.
In such scenario, for how long and how many brands can the
company continuously support?
87.
88. DATA ANALYSIS AND FINDINGS
Data was tabulated manually and was also analysed manually.
Excel was used to make graphs had pie charts.
Main technique used were:
Modal value was used to analyze the questions, which has 2 or
more choices as their answers.
Simple average were used to get answer to questions
89.
90.
91.
92.
93.
94.
95. CONCLUSION
This company project has demonstrated
“CADBURY’SMARKETING AND COMPETITIVE STRATEGIES”
that has proved to be extensive through, and of great benefit to
the company in furthering its competitive advantage.
In this project it possible to see the success of Cadbury’s in its
indorse its strong potential to continue to do well.
96. BIBLIOGRAPHY
• A L Ries (1996), “Focus” Harper Collins Publishers Ltd.
• David A. Aaker (1991), “Managing Brand Equity”, The Free Press.
• David A. Aaker (1996) “Building Strong Brands”, The Free Press.
• Philip Kotler (Eighth Edition) “Marketing Management”, Prentice Hall
of India Ltd.
• Advertising and marketing Magazine
• The Economic Times – “Brand Equity”
• Company Literature
• Market survey and questionnaires
• Web site: www.cadburyindia.com
• Web site: www.Cadbury.uk.com
• Business World
• Business Today
97. QUESTIONNAIRE
1. Do you eat chocolates?
o Yes
o No
2. Which brand ofchocolates do you use?
o Cadbury’s
o Nestle
o Amul
o Others
3. Where do you buy chocolates from?
o Super stores
o Retail Stores
o Restaurants
o Movie Halls
o Others
98. 4. Are you aware of any campaign of the above
brands?
o Yes
o No
5.Which Cadbury’s product do you usually prefer
or use?
o Dairy Milk
o 5 Star
o Fruit & Nut
o Perk
o Temptation
6. Do you think Cadbury’s chocolate is easily
available in market?
o Yes
99. o No
7. Describe Cadbury’s Chocolate in one word?
____________________________________________
8. Your comments on Cadbury’s products?
____________________________________________
