Building the image of CADBURY: A case study By VISHAL


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Building the image of CADBURY: A case study By VISHAL

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  4. 4. INTRODUCTION: The Indian market has lot of potential to expand; it is very hard to survive in this kind of market. The Indian market has cut throat competition may it be in FMCG sector or consumer durables. Increasing growth can be achieved at the expense of competitors. This results in companies trying to gain competitive edge through increasing differentiation in their brands emphasizing how they meet the needs of customer. A brand is a name, term, sign, symbol or design, or a combination of them, intended to identify the goods or services of one seller or group of sellers and to differentiate them from those of the competitors”. In other words we can say that, a brand is a distinguishing identity and promise which benefits the customer Brand Image is a set of feelings, emotions and experiences that are linked to the brand. It is developed over time through advertising campaigns with a consistent theme, and is authenticated through the consumers' direct experience. Brand image can deviate from the brand identity due to different perceptions, unexpected events, and different interpretation of communicated messages. COMPANY OVERVIEW Cadbury India is a food product company with interests in Chocolate Confectionery, Milk Food Drinks, Snacks, and Candy. Cadbury is the market 4|P ag e
  5. 5. leader in Chocolate Confectionery business with a market share of over 70%. Some of the key brands of Cadbury are Cadbury Dairy Milk, 5 Star, Perk, Éclairs, Celebrations, Temptations, and Gems. In Milk Food drinks segment, Cadbury's main product - Bournvita is the leading Malted Food Drink in the country. HISTORY (CADBURY) In 1824, John Cadbury opened a shop in Birmingham. This one-man business, trading mainly in Tea & Coffee was to be the foundation of Cadbury Limited. For over 100 years Cadbury was a family business. In 1943 non family directors were appointed. In 1847, the enterprise had prospered to a large factory in Bridge Street, Birmingham. John Cadbury took his brother Benjamin into partnership and the family business became Cadbury Brothers Birmingham. The business moved to Bourneville after outgrowing the Bridge Street Factory. The Workforce had risen up to 200 after 32 years at Bridge Street. After the death of two brothers in 1899, the company was privatized. It entered the era of scientific management; it introduced new ideas for their department like: Advertisement & Cost Analytical Laboratories Sales Department Offices Education & Training for Works Committee Medical Department employees on 2nd February, Kraft Foods took over 71% shares of Cadbury. They acquired it totally. But still Cadbury was on top in the market. This acquisition did not changed people’s mind and their craze for Cadbury Dairy Milk. Cadbury began its operation in 1948 by importing chocolates and then re-packing them before distributing it in the Indian market. After 62 years, it is having five companies at Thane, Induri (Pune), Malanpur (Gwalior), Bangalore, Baddi (Himachal Pradesh) and 4 sales offices in (New Delhi, Mumbai, Kolkata and 5|P ag e
  6. 6. Chennai). The corporate office is in Mumbai. Worldwide, Cadbury employs 60,000 people in over 200 countries. Cadbury's distribution network used to encompasses 2100 distributors and 450,000 retailers. To avoid cannibalization of its higher priced products from lower priced ones, Cadbury is setting up two separate distribution channels – one for Core business & other for Mass markets, with different stockists, wholesalers and retailers. But today, Cadbury's distribution network reaches out to six lakh outlets each for its chocolate & confectionery brands (i.e. total reaching12 lakh outlets). The total confectionery market is valued at Rupees 41 billion with a volume turnover of about 223500 tonnes per annum. The category is largely consumed in urban areas with a 73% skew to urban markets and a 27% to rural markets. Hard boiled candy accounts for 18%, Éclairs and Toffees accounts for 18%, Gums and Mints and lozenges are at par and account for 13%. Digestive Candies and Lollipops account for 2.0% share respectively. Overall industry growth is estimated at 23% in the chocolates segment and sugar confectionery segment has declined by 19%. The Milk Beverages industry is valued at Rupees 16.1 billion with an annual turnover of approx 63,000 tonnes. As per Nielsen estimates the industry is growing at 10.1%. The company’s main purpose is “Working together to create brands people love" capture the spirit of what we are trying to achieve as a business. We collaborate and work as team to convert products into brand. Simply, “we spread happiness”! Currently Cadbury India operates in three sectors viz. Chocolate Confectionery, Milk Food Drinks and in the Candy category. 6|P ag e
  7. 7. In the Chocolate Confectionery business, Cadbury has maintained its undisputed leadership over the years. Some of the key brands are Cadbury Dairy Milk, 5 Star, Perk, Éclairs and Celebrations. Cadbury enjoys a value market share of over 70% the highest Cadbury brand share in the world! Cadbury is the "gold standard" for chocolates in India. The pure taste of CDM defines the chocolate taste for the Indian consumer. In the Milk Food drinks segment Cadbury’s main product is Bourn vita - the leading Malted Food Drink (MFD) in the country. Similarly in the medicated candy category Halls is the undisputed leader. The Cadbury India Brand Strategy has received consistent support through simple but imaginative extensions to product categories and distribution. A good example of this is the development of Bytes. Crispy wafers filled with coca cream in the form of a bagged snack, Bytes is positioned as "The new concept of sweet snacking". It delivers the taste of chocolate in the form of a light snack, and thus heralds the entry of Cadbury India into the growing bagged Snack Market, which has been dominated until now by Salted Bagged Snack Brands. Byte was first launched in South India in 2003. Since 1965 Cadbury has also pioneered the development of cocoa cultivation in India. For over two decades, Cadbury have worked with the Kerala Agriculture University to undertake cocoa research and released clones, hybrids that improve the cocoa yield. Cadbury Cocoa team visits farmers and advises them on the cultivation aspects from planting to harvesting. Cadbury also conduct farmers meetings & seminars to educate them on Cocoa cultivation aspects. Cadbury efforts have increased cocoa productivity and touched the lives of thousands of farmers. 7|P ag e
  8. 8. CADBURY PRODUCTS: Chocolate • Cadbury Dairy Milk • Cadbury Celebrations • Bournville • 5 Star • Perk • Gems • Toblerone The Cadbury brand has a profound impact on individual product brands. Brands have individual personalities aimed at specific target markets for specific needs e.g. Timeout, for example, is an ideal snack to have with a cup of tea. These brands derive benefit from the Cadbury parentage, including quality and taste credentials. To ensure the success of product brands every aspect of the parent brand is focused on. A Flake, Crunchy or Timeout are clearly different and are manufactured to appeal to a variety of consumer segments. However the strength of the umbrella brand supports the brand value of each chocolate bar. Consumers know they can trust a chocolate bar that carries Cadbury branding. The relationship between Cadbury and individual brands is symbiotic with some brands benefiting more from the Cadbury relationship, i.e. pure chocolate brands such as Dairy Milk. Other brands have a more distant relationship, as the consumer motivation to purchase is ingredients other than chocolate, e.g. Crunchy. Similarly issues such as specific advertising or product quality of a packet of Cadbury biscuits or a single Crème Egg will, in turn, impact on the perception of the parent brand. Similarly the 8|P ag e
  9. 9. umbrella brand has a strong brand value and a reputation that must be supported by its individual brands AIM: The aim of this study is to analyze the brand building strategies adopted by Cadbury OBJECTIVES: The objectives of this study are to: • Identify the communication strategies adopted by Cadbury for image building • Find out the innovative advertising campaigns of Cadbury • Identify the brand positioning strategies of Cadbury LIMITATIONS: The research is carried out on secondary data so the degree of validity and reliability is completely depends upon the data used from different sources. 9|P ag e
  10. 10. CHAPTER- II METHODOLOGY 10 | P a g e
  11. 11. DESIGN: The design would be descriptive research design because this study focuses on image building of the Cadbury. The research relies on the secondary source of information. Descriptive Research Major Objective: the description of something - usually market characteristics or functions. It includes studies on the market, market share, sales analysis, image, product usage, distribution, pricing, advertising VARIABLES & MEASURES: a) Communications methods b) Advertising Campaigns c) Brand positioning strategies DATA GATHERING: For the purpose of this study, secondary data is collected and analyzed from various sources such as websites, annual reports, books, journals, articles, newspapers, magazines, case studies etc. The data gathering is aimed at extracting the information regarding image building strategies/ communications strategies adopted by Cadbury to become a successful brand. Methods of Descriptive Research: 11 | P a g e
  12. 12. • Secondary data • Surveys • Panels • Observational and other data • Internet CHAPTER- III FINDINGS & DISCUSSIONS 12 | P a g e
  13. 13. FINDINGS Total Confectionery Market holds share of Rs 41 Billion Urban Consumption: 73% Rural Consumption: 27% Source: Source: The respondents feed-back provided the insight that chocolate purchase behavior is impulsive or event-based. The consumers do watch advertisements and get influenced to buy for sometime but the impulse purchase is more often than the 13 | P a g e
  14. 14. advertisement trigger for chocolate. The brands known or perceived as better quality are more often bought based on the events. Habitual chocolate consumers do buy same chocolates where the brands play an important role. Cadbury brands have more visibility and advertisements that influence the consumers to buy chocolates. Dairy milk is the most common brand purchased by the respondents. Source: Chocolate taste, quality and availability were the major factors influencing the buying behavior of the chocolates. Consumers mostly go for the chocolates that have sweet cocoa taste that is mostly in the Dairy Milk. Bourville is a dark chocolate and mostly preferred by females during particular occasions. Bournville is also used to present as gift for some well-achieved occasion in schools and colleges. 50% respondents agreed that flavor do influence their purchase behavior of chocolate. Kitkat having crunchy wafer inside is also preferred by many respondents as it is perceived as just a treat product that can be consumed for fun. 14 | P a g e
  15. 15. Source: Total 35 blogs and online portals were used to collect data and infer the corporate insights on the chocolate market and the consumer perception. The reviews inferred Cadbury as undoubted market leader in Indian chocolate industry. Nestle is perceived to be as an alternative to Cadbury and not as a separate brand. The consumers were well informed on the Cadbury chocolates and brand that Cadbury is perceived as the only chocolate available. Cadbury has become acronym for chocolates in India. The brand communication and image of Cadbury in India is much stronger than Nestle. Nestle is slowly building its brand presence and communicating by advertisement that has achieved much success but still it’s a long way for Nestle to truly become a competitor of Cadbury in India. Consumers perceive that the chocolates should be creative but have taste that is familiar. This was one major reason for the success of Dairy Milk or Silk brand in the market. Cadbury brand Dairy Milk has maximum visibility on the counter that influences the purchase. Loyal consumers in chocolates however are rare as consumers do buy new chocolates but not as frequently as their earlier brands. 15 | P a g e
  16. 16. Chocolate taste, quality and availability were the major factors influencing the buying behavior of the chocolates. Bourville is a dark chocolate and mostly preferred by females during particular occasions. Bournville is also used to present as gift for some well-achieved occasion in schools and colleges. Kitkat having crunchy wafer inside is also preferred by many respondents as it is perceived as just a treat product that can be consumed for fun. Table No. 2: Awareness about Cadbury Product Awareness No. of Respondent Percentage Yes 100 100% No 0 0% Total 100 100% 100% 80% AWARENESS OF CADBURY 60% 40% 20% 0% Yes No Source: Interpretation:• 100% are aware about the Cadbury. It means the entire consumers are aware about the Cadbury product. 16 | P a g e
  17. 17. Table No. 3: Consumption of chocolate Consumption No of respondent Percentage Nestle 17 17% Cadbury 64 64% Other 12 12% Foreign Brand 7 7% Total 100 100% CONSUMPTION OF CHOCOLATE 12% 7% 17% Nestle Cadbury 64% Other Foreign Brand Source: Interpretation:- • 64 % consumes Cadbury chocolate. • 17% consumes Nestle. • 12% consumes other brands. • 7% consumes foreign brands. 17 | P a g e
  18. 18. It means consumption of Cadbury is more, and then comes Nestle, then other brands and foreign brands. Table No.4: Discovery of Cadbury Discover No of respondent Percentage Advertisement 67 67% Mouth publicity 6 6% Saw in the shop 17 17% Other 10 10% Total 100 100% DISCOVERY OF CADBURY 10% Advertisement 17% 6% Mouth Publicity Saw in the Shop 67% Other Source: Interpretation:• 67% consumer gets to know by Advertisement. 18 | P a g e
  19. 19. • 17% consumer gets to know by seeing them in shop. It means most of the consumers come to know about Cadbury from Advertisement, then by window display in shops, then by the other sources. • On an average more than 90% People Like Cadbury Products , moreover 60%of the people like Dairy Milk, 20% like Gems, 15% like Eclairs and only 5%like Bytes. • Packing of Cadbury products also satisfies 90% people. T a s t e & Q ua lit y w is e C a d b ury s a tis fie s mo re tha n 7 0 % o f the c o n s u m e r base. • Public opinion for future product launch of Cadbury is Biscuits 40%Muffins 50%, Cereals 10% • More than 70% people say that Cadbury must launch sugar free products. • Around 50% People are satisfied with the product pricing of the Cadbury • Products and 60% people like to buy the International Products of the Cadbury. • Especial Celebration packs of Cadbury attract a lot of people more than 90%are satisfied with them. 19 | P a g e
  20. 20. CHANGING PERCEPTION Cadbury has regular users. They do not have any particular occasion. They just have it. Children and youngsters play an important role Decision Roles in deciding when to have dairy milk. And now old age people also are slowly are in decision making. Dairy Milk has changed the scenario of having Occasions sweet sometimes. They say have it anytime including Diwali, Raksha bandhan, Weddings Dairy Milk have absolute loyalty status. Loyalty Status As we know that Dairy Milk is the only Brand who is the only one to promote chocolate as an important part of Festivals as well as it changed the mind sets of the people that chocolate is not only for kids but for all. The strategy to target adults was taken further with the help of a brand new positioning “Kuch Meetha Ho Jaye”. For Indians occasions and festivals have utmost importance and Dairy Milk rigorously focused on this point and set a new trend of having Dairy Milk in place of “Mithai” during the occasions. CHANGING PERCEPTION OVERTIME THROUGH ADVERTISEMENT Cadbury is a brand that all of us have literally grown up with. Though it has been immensely successful in its operations in the USA, UK, Australia, etc. from the 1800s, it entered the Indian market only in 1948. Since then, it has used a variety of strategies and a string of ad campaigns to reach out to the Indian consumer. Initially, Cadbury ads targeted children – they showed a loving father bringing chocolates home for the children as a surprise. The ads were formulated keeping in mind the Indian society then, where the children didn’t have money with themselves to buy sweets and chocolates. With this, Cadbury was able to capture a 20 | P a g e
  21. 21. substantial part of its target segment – the kids. Next, it launched its famous ad where a teenage girl watches her friend play cricket and jumps into the cricket field, eating a Cadbury chocolate as soon as he hits a century. Another advertisement showed a prospective bride with mehndi on her hands, prying open the wrapping of Cadbury chocolate with her elbows. It showed that teenagers too can enjoy the Cadbury chocolate. Next came the much talked about ad featuring Cyrus Broacha. It showed people from all age groups – a housewife in her 40s, a couple well into their 60s, and a teenager – enjoying the chocolate as Cyrus sang in the background “Khaane walon ko khaane ka bahaana chahiye”. In this way, Cadbury created inroads into all possible age groups. The basic purpose of promotion and advertising by Cadbury is to make Cadbury synonymous with chocolate and • Educate the market • Build brand awareness • Increase consumption • Encourage seasonal purchases A. CADBURY DAIRY MILK:  Cadbury’s multi-award winning campaign - ‘The Real Taste of Life’ launched in the 90’s attempts to capture the child like spontaneity in every adult. From the old man offering his wife a Dairy Milk chocolate to the 21 | P a g e
  22. 22. dancing girl in a crowded stadium, all reflect the impulsiveness and the spontaneity of the child in the adult.  This campaign went on to be awarded 'The Campaign of the Century', in India at the Abby (Ad Club, Mumbai) awards.  In the late 90's, to further expand the category, the focus shifted towards widening chocolate consumption amongst the masses, through the 'Khanewalon KO KhaneKaBahanaChahiye' campaign. This campaign built social acceptance for chocolate consumption amongst adults, by showcasing collective and shared moments.  More recently, the 'KuchMeethaHoJaaye' campaign associated Cadbury Dairy Milk with celebratory occasions and the phrase "PappuThe interactive campaign for "Pappu Pass Ho Gaya" bagged a Bronze Lion at the prestigious Cannes Advertising Festival 2006 for 'Best use of internet and new media'.  -The 'Pappu Pass Ho Gaya' campaign also went on to win Silver for The Best Integrated Marketing Campaign and Gold in the Consumer Products category at the EFFIES 2006 (global benchmark for effective advertising campaigns) awards.  -The idea involved a tie-up with Reliance India Mobile service and allowed students to check their exam results using their mobile service and encouraged those who passed their examinations to celebrate with Cadbury Dairy Milk.  “Pappu Pass Ho Gaya" became part of street language. It has been adopted by consumers and today is used extensively to express joy in a moment of achievement / success. 22 | P a g e
  23. 23. B. CADBURY PERK: 1) 360-degree campaign with mix of television, consumer contact activities, etc. 2) Tie up with leading coffee chain Café Coffee Day for direct sampling. 3) Product sampling for first two months across 25 towns. C. CADBURY 5 STAR: Cadbury India uses the outdoor medium as an integral part of its advertising campaigns. The 360-degree marketing campaign for the re-invented 5-Star, apart from the TVC and brand micro site, also features a theme-based outdoor and fun sampling and tasting sessions about the ‘right way to taste a 5-Star’. D. CADBURY CELEBRATION: Radio constitutes 10 per cent of the overall spends for the Rakhi campaign for Cadbury Celebrations. Besides radio, outdoor constitutes 15-20 per cent of the spends, while TV continues to dominate the media plan at 70 per cent. For a campaign relying so heavily on television, there is no new TV commercial. The company is airing last year's TVC this year as well, the rationale being that the ad – an emotional one about a brother in a hostel being surprised by his sister – still generates high recall. However for the outdoor campaign, the brand targets brothers under the age of 18 years, is spread across billboards and bus shelters with creative such as, "Your sister thinks you are a six-pack superstar", "Your sister thinks you are Mumbai's coolest dude", or "Your sister thinks you are the real hero"; followed by: "This Rakhi, express your love with pyaar ka shagun" and "Special Rich Dry fruit collection for your sister". 23 | P a g e
  24. 24. The insight for the outdoor campaign was that sisters hero-worship their brothers. The campaign uses this insight as a hook to initiate gifting by the brothers. ‘Cadbury’s Celebrations’ aims to propagate this very thought through its latest Diwali Campaign - “Iss Diwali AapKiseKhushKarengey? KuchMithaas ho jaaye”. The idea behind the campaign is to seed the thought of sharing & spreading happiness to bring a spark into people’s lives this festive season. Cadbury’s has extended its marketing strategy to the internet space and has launched an innovative & interactive website wherein one can experience the meetha thought via sending of personalized e-greetings to their friends & family. Cadbury has created a complete 360 degree campaign to involve & engage the TG by promoting the big thought of “Iss Diwali aapkisekhushkarengey?” This integrated communication strategy will be rolled out to intensify the engagement with the consumers. The mediums of communication will include television, print, radio, online, and outdoor activities.” E. CADBURY DAIRY MILK ECLAIRS: Cadbury Dairy Milk Éclairs – the deliciously creamy caramel filled with a rich Cadbury Dairy Milk chocolate center recently launched a new TVC with the theme "Chocolate kaMeetha Bomb". The TVC aims to showcase the new and improved Cadbury Dairy Milk Éclairs which boasts a greater gush & and a richer chocolaty center. In order to communicate this, the burning wick and chocolate head explosions has been brought to play. 24 | P a g e
  25. 25. The 360 marketing campaign, apart from the TVC will also feature outdoors, sampling and free goodies.Cadbury Dairy Milk Éclairs Crunch is being supported heavily through a new TV campaign, coupled with radio in select cities. CADBURY’S PRODUCT DEVELOPMENT Cadbury launches ‘Perk with Glucose Energy’ in 2009: A first for India, Cadbury Perk with Glucose Energy is a new innovation that is aimed to appeal to consumers’ taste buds. Targeted at 14-18 year olds, it is a fun treat which combines energy giving glucose with great taste. This new offer will be backed by significant advertising created by Ogilvy & Mather Advertising centered around the theme of “Naya Perk with Glucose Energy.” An integrated marketing campaign will be launched to create awareness around the product. The 360-degree marketing communication will encompass TV, Outdoor, tie-ups and sampling activities. Perk with Glucose Energy will offer two pieces in each pack affordably priced at Rs.5/- for 21 gms. And as singles at Rs.2/for 7.5 gms. It will be available at all retail outlets across cities in the country. Cadbury launches new TVC for Bournvita++ in 2009: Two separate TVCs have been created to capture the audiences’ interest, the first aimed at the kids and the other at their mothers. The communication objective of campaign for mothers is to tell them that Bournvita ++ offers the benefits of nature and science which helps your child to keep going with all the physically and mentally demanding activities of the day, so that your kid is confident in whatever he does. 25 | P a g e
  26. 26. There is a separate TVC for kids which hinges on the same idea- nonstop action from nature’s goodness and the power of science. The TVC for kids has a complete video game look & feel to it and is the first of its kind in this category. This unique treatment has been chosen with the intent of increasing the brand appeal amongst the kids. On the digital platform, a micro site,, has been launched where kids can play a game. Cadbury launches BournvitaLi’l Champs, it’s new `Cup of Confidence’ for little champions: Tennis Ace Sania Mirza conducts a master class for mother’s on the art of making champions at the launch eventMumbai, February 27, 2009:Cadbury India Ltd. today launched Cadbury BournvitaLi’l Champs its latest offering for young children at an unique event with tennis ace SaniaMirza and an excited group of children and their mother’s at their corporate office. BournvitaLi’l Champs is a specially created nutrition supplement for 2 to 5 year olds with the goodness of natural ingredients and the power of 20 scientific nutrients. It contains DHA, which is vital for brain and vision development in the formative years of a child. In addition, it is also supplemented with Whey protein concentrate that not only increases the over-all protein content, but also enhances muscle development and immunity necessary for children. The core proposition of BournvitaLi’l Champs is to provide mental alertness and physical fitness for children in the age group of 2-5 years. This offering has milder cocoa content and with the great Cadbury Bournvita taste will help children realize their innate potential.” 26 | P a g e
  27. 27. The company has roped in tennis ace SaniaMirza for the brand communication that shows her transformation from a young toddler to a tennis champ. The new TV commercial will be aired in the first week of March and other mediums like outdoor, Internet and radio will be leveraged extensively for brand promotion. Cadbury BournvitaLi’l Champs will be available in two pack sizes – 200 gms priced at Rs.90/- and 500 gms at Rs.175/- at all modern retail outlets across major cities. QUIZ & CONTESTS ORGANISED BY CADBURY:1. India's first Teachers v/s students' quiz show launched: For the first time in India, Cadbury Bournvita brings the guru &shishya Jodi’s to quiz it out on India's favourite quizzing show 'Bournvita Quiz Contest'. The contest intends to explore the interesting aspects of 'Confidence' in the young consumer's life-space. Each episode brings together 2 teams - one teacher’s team and one student’s team to compete on an experience v/s eagerness platform teacher's experience and student's eagerness. The teachers are asked questions like 'What's Shahrukh's new hairstyle? & the students 'Which city in India has the highest 27 | P a g e crime rate?
  28. 28. Mediums changed, channels changed, but the Bournvita Quiz Contest remains to this day, the longest running quiz show of India. The Bournvita Quiz Contest (BQC) has succeeded in making quizzing one of the nation's most popular events after one-day cricket. But, more importantly, BQC had occupied a very special place in the history of Indian education. The contest opened by inviting schools from across India and Gulf to send in nominations for students from classes VII and VIII. Initiations were sent to teachers from reputed schools across the country and were then selected through rounds of personal interviews conducted by Derek O' Brien. 2.Cadbury Perk presents ZapakGameplex Premiere League India’s 1st National Gaming Leagues: Mumbai, November 3, 2008: Zapak Digital Entertainment Ltd, India’s largest online gaming portal, a Reliance ADA Group Venture today launches India’s biggest gaming tournament – Cadbury Perk ZapakGameplex Premiere League. This mega tournament will be activated in 35 ZapakGameplexes in cities like Chennai, Bangalore, Jamshedpur, Bhopal, Bhubaneswar, Cochin, Coimbatore, DehraDun, Hyderabad, Indore, Lucknow, Ludhiana, Delhi, Ranchi, Mumbai, Secunderabad, Siliguri, Baroda, Trivandrum, Chandigarh, Jaipur, Ahmedabad, Pune and 28 | P a g e Kolkata.
  29. 29. The tournament will showcase world’s most popular games like - Counter Strike, FIFA 08 and Crazy Kart- Worlds Craziest Online Racing Game. This tournament will be a league based format where gamers across the country will play each other in the most competitive format ever. ZapakGameplex will rank & felicitate India’s top 100 gamers in Counter Strike, FIFA 08 and Crazy Kart, along with cash prizes of uptoRs. 5 lakhs to be won. This event is being promoted by AXN, BIG Fm, and Living Digital along with online media and themselves. The league will also be promoted extensively across all youth hot spots by way of Banner and Poster activation. Leaflets announcing tournament also to be distributed across these hot spots. BRAND POSITIONING AND REPOSITIONING Cadbury Dairy Milk has been the market leader in the chocolate category for years and has participated and been a part of every Indian's moments of happiness, joy and celebration. Today, Cadbury Dairy Milk alone holds 30% value share of the Indian chocolate market. In the early 90's, chocolates were seen as 'meant for kids', usually a reward or a bribe for children. In the Mid 90's the category was re-defined by the very popular `Real Taste of Life' campaign, shifting the focus from `just for kids' to the `kid in all of us'. It appealed to the child in every adult and Cadbury Dairy Milk became the perfect expression of 'spontaneity' and 'shared good feelings'. The 'Real Taste of Life' campaign had many memorable executions, which people still fondly remember. However, the one with the "girl dancing on the cricket field" has 29 | P a g e
  30. 30. remained etched in everyone's memory, as the most spontaneous & uninhibited expression of happiness. This campaign went on to be awarded 'The Campaign of the Century', in India at the Abby (Ad Club, Mumbai) awards. In the late 90's, to further expand the category, the focus shifted towards widening chocolate consumption amongst the masses, through the 'Khanewalon Ko Khane Ka Bahana Chahiye' campaign. This campaign built social acceptance for chocolate consumption amongst adults, by showcasing collective and shared moments. More recently, the 'Kuch Meetha Ho Jaaye' campaign associated Cadbury Dairy Milk with celebratory occasions and the phrase "Pappu Pass Ho Gaya" became part of street language. It has been adopted by consumers and today is used extensively to express joy in a moment of achievement and success. The interactive campaign for "Pappu Pass Ho Gaya" bagged a Bronze Lion at the prestigious Cannes Advertising Festival 2006 for 'Best use of internet and new media'. The idea involved a tie-up with Reliance India Mobile service and allowed students to check their exam results using their mobile service and encouraged those who passed their examinations to celebrate with Cadbury Dairy Milk. The 'Pappu Pass Ho Gaya' campaign also went on to win Silver for The Best Integrated Marketing Campaign and Gold in the Consumer Products category at the EFFIES 2006 (global benchmark for effective advertising campaigns) awards. Post this, 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 30 | P a g e
  31. 31. 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. • Kuch meetha ho jaaye • Shubh Aarambh • Khaane ke baad • Khush hai zamana • Pappu pass ho gaya • Main khush hun • Diwali • Rakshabandhan It is because of such intelligent and innovative marketing strategies that Cadbury is the most successful chocolate brand in the India. Even now it posts a revenue growth of 30% annually, which is amazing. DISCUSSIONS: COMMUNICATION STRATEGY FOR IMAGE BUILDING Cadbury was the one having 70 % market shares in chocolate industry. Out of which 30% was the Dairy Milk alone. This is because of constant re-invention of the brand & bombarding communication towards the consumers consistently to 31 | P a g e
  32. 32. maintain the top position in mind recall in confectionery segment. Dairy Milk was awarded as No.1most trusted brand in Mumbai 2005 for the edition of Brand Equity’s most trusted Brand Survey. Dairy Milk targeted all the aspects as possible to get into the heart of all the people, of all age groups. For this they communicated with people through different Ad’s &Campaigns. Let us see few of them below: Khane walo KO Khane ka Bahana Chahiye Pappu Paas Ho Gaya Shubh Aarambh was one of successful campaigns of Dairy Milk. This means Auspicious Beginning. With this campaign they said that for whatever you start, start it with Dairy Milk and it will be successful. For this they chose the best to advertise: Amitabh Bachchan. TOOLS FOR COMMUNICATION Dairy Milk used different media options to communicate different campaigns and promote Dairy milk. They are Outdoor Television Radio Internet TV Advertisements is the most popular method for Dairy Milk to show their new campaigns to people so that they can more and more relate it with their personal lives. They also have ground promotions in different malls. They arrange some contests also to promote their brand. DISTRIBUTION STRATEGY As we know that Dairy Milk holds 30% value share of chocolate market. The demand of chocolate is increasing day by day. And Dairy Milk is no. 1 in that race. Indian market &specifically where the penetration of chocolates is increasing, brings a need for efficiency in logistics and distribution. There is stiff competition in the confectionery market due to large exposure of foreign currency rate risk, mainly on account of import of cocoa beans, cocoa butter. Cadbury Dairy Milk is 32 | P a g e
  33. 33. easily available anywhere in the market. Cadbury’ success of proper distribution is their efficiency. PRICING STRATEGY Dairy Milk is positioned towards age group of 4-50, and thus the price is accordingly kept affordable. Also it is easily accessible to all categories. Price range starts from Rs.5to Rs.20 in different sizes. Cadbury Dairy Milk fruit and nut starts from Rs.30. Dairy Milk Silk is a premium brand and thus the price of it is little higher that is Rs.50. MARKET SHARE Cadbury Dairy Milk has launched some very creative advertisements in India over the years. More than innovative, the ads have been very relevant to the Indian ethos. The ‘shubh aarambh’ ads which captured the Indian tradition of having something sweet before an important occasion or ‘kuch meetha ho jaye’ which associated Cadbury Dairy Milk with celebratory occasions. Recently, Cadbury Dairy Milk has been airing the ‘meethe mein kuch meetha ho jaye’ campaigns which have found a lot of favor with the audience. The ads, in typical Cadbury style, are very heartwarming and creative. 33 | P a g e
  34. 34. If we look through the years, we can clearly see that Cadbury is doing everything possible to maintain a strong hold on the Indian chocolate market. While it remains a dominant leader with over 70% of the market share, this has eroded over the years as competitors like Nestle, Amul and CAMPCO have made strong forays. There was a time before and during the early 90s when Cadbury’s enjoyed an even higher market share. This was the time when chocolates were very clearly positioned for children. However, with the entry of global giant Nestle, two things happened. Firstly, there was a sudden spurt of competition for Cadbury. But more importantly, the market began to grow at a faster pace. Cadbury seized this opportunity and started creating advertisements that were targeted towards the ‘kids in all of us’. This was a very smart move as they already had the children’s segment all tied up. Moreover, the children of the 90s have now grown up, and Cadbury still offers them reasons to eat Dairy Milk. Hence, while their market share has eroded by a few points, Cadbury has significantly improved its revenues in absolute terms by evolving a long term advertising plan and one that is very relevant to the Indian context. With predominantly Indian themes, special moments (remember the girl dancing on the cricket field) and soulful music, Cadbury has really managed to connect with the audience. The recent ‘meethe mein kuch meetha ho jaye’ campaign is simply a continuation of this strategy to expand the market. In conclusion, Cadbury Dairy Milk has managed to take a simple chocolate bar and create numerous associations with it over the years. It has built up different audiences over the years, and to every audience it offers a different meaning but one that is very relevant. 34 | P a g e
  35. 35. COMPETITOR’S ANALYSIS In Indian Market, the main players in the confectionery market are Cadbury, Nestle, Candico, ITC and Parle. Let us see the competitors of Cadbury Dairy Milk in detail below Company Founded in Brand Portfolio Kraft Foods 1903 Cadbury Dairy Milk & Variants, Éclairs, Bourn vita etc…Nestle 1860 Kitkat, Smarties Ferrero 1940 Rocher, Raffaelo, Nutella Amul 1945 Milk Chocolate, Fruit and Nut chocolate Candico 1997 Loco Poco Gum, Big Bubble ITC 2002(Confectionery Minto and Candy man Segment)Parle 1929 Melody, Mango Bite, Poppins, Kismi, Orange Candy. BRAND EXPLORATORY Cadbury dairy Milk has been trying to get out of the image of “Just another chocolate” and become something special in the minds of the people. They have also been trying to position themselves as chocolates for all age groups and not just kids. The campaign has successfully created a picture in the mind of the customers that Cadbury is not just a chocolate but means of celebrations. There are two main sources of Brand Equity and they are: Brand Image and Brand Awareness. Brand Image is the perception of the customers about that product or service they are using. Brand Awareness is the knowledge of the customers about that product or service. BRAND AMBASSADORS As we know that previously Dairy Milk was only considered as Chocolate, but their new campaign has changed this perception of consumers. As discussed above now Dairy Milk is considered as Traditional sweet of Indian 35 | P a g e
  36. 36. culture(Mithai) which people give to their near and dear ones on the occasions and now they use Dairy Milk as sweet (Mithai).Brand Ambassador chosen for Dairy Milk is none other than Megastar Amitabh Bacchhan. He endorsed the brand so successfully that everyone loved the brand much more than they did. The endorsement has successfully captured the Indian festivals like Raksha bandhan, Diwali, Wedding, Birthdays etc… Now people give Dairy Milk as token of love, care and affection to their friends and family. BRAND MANTRA OF DAIRY MILK Dairy Milk also enjoys a great - Brand Recall value when comes to chocolates with Milk. Dairy Milk has huge command over - its distribution network spanning across India. Certain segment feel that price of innovations with crafted Dairy Milk is high and compared to communication campaign that Amul Milk chocolate is preferred. It offers quality product with Dairy Milk is somewhat lacking in establish a clear and consistent other emerging markets. It has Brand Image over the years. Strong commands over its brand image in India and Europe But other places it is lacking. Dairy Milk has been able to the recent acquisition of Cadbury which is a globally established by Kraft Foods may result in brand name known for its somewhat negative effect on the manufacturing competency and brand. 36 | P a g e
  37. 37. CUSTOMER-BASED BRAND EQUITY PYRAMID Source: Rationale of CBBE model: Basic premise: The power of a brand resides in the minds of the customers. The challenge is to ensure that the customers have the right kind of experiences with the products and services and their marketing program to create the right brand knowledge structures i.e. • Thoughts • Feelings • Images • Perception & Attitudes 37 | P a g e
  38. 38. Building a strong brand involves a series of steps as part of a “branding ladder”. It is characterized by a logically constructed set of brand “building blocks”. We need to identify the areas of strength and weakness and to provide guidance to marketing activities. BRAND SALIENCE Brand Salience measures awareness of the brand, how often and how easily the brand is evoked under various situations or circumstances. It is the same as brand identity i.e. who are you? DEPTH OF AWARENESS It measures how likely it is for a brand element to come in mind i.e. ease of recognition and the ease with which it does so i.e. recall value. The Cadbury brand is associated with best tasting chocolate which includes from everything from solid blocks to chocolate filled bars and novelties. For many people, chocolate is Cadbury and no other brand will do. The core values of quality, taste and emotion supports the Cadbury brand. Consumers know that they can trust a chocolate bar that carries Cadbury branding. The swirling chocolate and „glass and a half are powerful images. They both portray a desire for chocolate while the half full glass suggests core values of goodness and quality. The brand has been successful in establishing the link, in the mind of the consumer, that Cadbury equals chocolate. BREADTH OF AWARENESS It measures the range of purchase and usage situations in which the brand element comes to mind. Branded products command premium prices. Consumers are willing to pay the premium if they believe that the brand offers levels of quality and satisfaction that 38 | P a g e
  39. 39. competing brands do not. Now Dairy Milk comes in Rs. 5 the campaigns of „Pappu pass ho gaya‟ and „Miss Palampur‟ aim to popularize Dairy Milk connecting it to various usage situations. Three consumer segments of „impulse‟, „take home‟ and „gift‟ has been identified. Impulse purchases are usually products bought for immediate consumption. Take Home confectionary is generally bought in supermarket and is often driven by specific need. The specific need or usage can be an occasion. The consumers make more rational decisions like brand influence, price/value relationship. These areas are further subdivided for e.g. the gift sector comprises special occasions (B‟days or festivals) and token or spontaneous gift. BRAND PERFORMANCE It describes how well the product meets customers‟ more functional needs. It transcends the product’s ingredients and features to include dimensions that differentiate the brand. The Cadbury brand name has been existence since 1824 when John Cadbury opened his shop in Birmingham, England. Over the years it has survived in a highly competitive market and developed its competitive advantage. It is successful in communicating the customers that it is still the ultimate in chocolate pleasure. It has shown the consistency in performance. The strength of the umbrella brand supports the brand value of each chocolate bar, thus implying how reliable the brand is. Cadbury’s packaging on the functional level, the pack was structurally sound to protect the product quality in distribution and storage conditions, thus the consumers can acknowledge the durability of the product. The economic life of the product was mentioned in the product as per the respective food regulatory body. 39 | P a g e
  40. 40. Cadbury’s world famous packaging is comprised of four key elements: 1. Distinctive packaging design 2. The Cadbury corporate purple color 3. The glass and a half full of full cream milk logo 4. The Cadbury script logo These elements convey to consumers the memorability, distinctiveness and high quality of Cadbury products. The attractiveness of packaging alone can be instrumental in stimulating a purchase specially impulse buyers. The brand also comes in various attractive packages for different occasion like „Diwali‟, „Raksha Bandhan‟, „Christmas‟ etc. BRAND IMAGERY It depends on the extrinsic properties of the product including the ways in which the brand attempts to meet customer’s psychological or social needs. The intangible association to Cadbury includes family experiences, childhood memories. The product could be bought from supermarket on the insistence of the child to its parents or from department store or specialty store through impulse buying or for little pleasures. The Cadbury as a person is able to create a feeling of warmth, the togetherness of family & friends on special occasions, to hold those relationships in life which are of prime importance and to savor the sweet success of winning. The core values of quality, taste and emotion are the pillars of the brand. 40 | P a g e
  41. 41. The milk pouring on the chocolate bar, the icon represents the unique production process in Cadbury’s Dairy Milk chocolate which uses a glass and a half of full cream Irish milk in every half-pound, hence the unique taste of the chocolate. It serves to identify the product, its contents and the manufacturer. The heritage that has been passed down from the past. BRAND JUDGMENTS These are customer’s personal opinions about and evaluations of the brand, which consumers form by putting together all the different brand performance and imagery associations. Brand Quality: Consumers trust the brand because there is certain level of quality attached to it. The people buy chocolates during the auspicious occasion as a token of their love tells the level of trust that the people have. Brand Credibility: The brands like Five Star, Perk derive benefit from the Cadbury parentage including quality and taste credentials. The flagship chocolate brand, Cadbury Dairy Milk which is over 100 years old, is the third largest largest chocolate brand globally with retail sales of $2 billion. Its revenue grew by 5% in the year 2007 and by further 9% in the first half. Brand Consideration: The brand has been considered for possible purchase and use not only as a chocolate but it has become a substitute for sweet. The punchline „Kuch Meetha Ho Jaye‟ justifies this. The campaign has been highly successful with the brand endorsement of Amitabh Bachchan and consumers buy it for occasions like 41 | P a g e
  42. 42. “Diwali” and “Raksha Bandhan” Brand Superiority: The unique taste of chocolate which comes in a pure form. BRAND FEELINGS These are customers‟ special responses and reactions to the brand. The feelings that are evoked by the marketing program or by other means. Warmth The brand evokes a soothing type of feeling. As the chocolate melts inside our mouths, a similar soothing effect is felt inside our hearts. The commercial for the cricket match shows how sweet success of winning can be savored by the sweet taste of Cadbury. It also depicts fun and excitement. Passion It is reflected in the impulse buying nature of consumers. The commercial featuring a girl with „mehndi‟ put on her palms has a strong desire to have chocolates and she is adamant to have it. Bond of love & relationships The brand provides the consumers with an opportunity to express their love to their family and friends. It is a time to celebrate and have few precious moments of togetherness. Enthusiasm The cricket match commercial also reflects the fun & the excitement. The brand makes the consumers feel excited. 42 | P a g e
  43. 43. BRAND RESONANCE It describes the nature of this relationship and the extent to which customers feel that they are “in sync” with the brand. It is characterized in terms of intensity, or the depth of psychological bond that customers have with the brand, also the level of activity engendered by this loyalty ( repeat purchase rates and extent to which customers seek out brand information). Attitudinal attachment The level of attachment can be judged by the fact that the consumers feel that is a perfect gift for special occasions. It could be used to express their token of love. The “little pleasures” that can be derived from the moments of family get-together. The moment consumers think about celebration they think about the brand. Sense of community The consumers feel a kinship or affiliation with other people associated with the brand. The commercial in which BigB and his childhood friend exchange their gifts they feel how much their choices resemble and automatically a feeling of kinship is developed. The sense of belongingness to that particular brand is generated. Behavioral loyalty The repeat purchases on various occasion be it Diwali, Christmas or to express their love or vote of thanks, only this brand comes to the consumers mind. This is the level of loyalty that the Cadbury brand shares with it consumers. 43 | P a g e
  44. 44. CHAPTER- IV SUMMARY 44 | P a g e
  45. 45. SUMMARY: The study reveals that we are all consciously and unconsciously affected by brands in our daily lives. When we go to purchase a pair of training shoes we rarely make a purely practical decision. There are numerous branded and non-branded options available. For many people, a pair of trainers must sport a brand logo because that will communicate certain values to other people. The confectionery market elicits similar conscious and unconscious feelings of passion, loyalty and enthusiasm. For many people, chocolate is Cadbury, and no other brand will do. This consumer loyalty is critical because of the value of the chocolate confectionery market and Because, in all markets, a small number of consumers account for a large proportion of sales. Loyal customers are the most valuable customers to have because they will buy your product over and over again. Branded products command premium prices. Consumers will happily pay that premium if they believe that the brand offers levels of quality and satisfaction that competing products do not. The most enduring brands have become associated with both tangible and intangible properties over time. The most successful provoke a series of emotional or aspirational associations and values in our minds that go way beyond the physical product. Cadburys has identified these brand values and adjusts its advertising strategies to reflect these values in different markets. Its strategy can vary from increasing brand awareness, educating potential customers about a new product, increasing seasonal purchases, or as is currently the case in the ‘Choose Cadbury’ campaign to highlight the positive emotional value of the brand. After identifying brand 45 | P a g e
  46. 46. values the marketing manager must match these to the specific market. For this reason it is important to identify possible segments that have specific needs, and to highlight appropriate brand values that will promote the brand in that market. CONSUMPTION & CONSUMER LIFESTYLES Cadbury’s core markets are currently in the UK, Ireland, Australia and New Zealand. The Cadbury brand is very well known in these markets and consumers have established patterns of chocolate consumption. Ireland has one of the largest consumption rates in the world along with Switzerland. In Ireland alone, the average person eats 8kg of chocolate and 6kg of sweets each year. In key areas such as these, the Cadbury brand has secured significant brand status. In Ireland, Cadbury has identified three key consumer segments of ‘impulse’, ‘take home’ and ‘gift’. These segments reflect consumers’ decision-making processes. For example, impulse purchases are typically products bought for immediate consumption, e.g. single bars. Take Home confectionery is generally bought in a supermarket and is most often driven by a specific need. A specific need or usage can be an occasion, e.g. ‘I need something for the lunchbox’. Here consumers make more rational decisions, e.g. brand influence, price/value relationship. These areas are further subdivided, for example the ‘gift’ sector comprises special occasions (birthdays, Christmas, etc.) and token or spontaneous gifts. If marketers successfully identify and isolate consumer segments in this way, it becomes easier to target products and Advertising is a more meaningful way to increase consumption. 46 | P a g e
  48. 48. CONCLUSION Hence, on the basis of study it can be concluded that the success of the Cadbury brand can be seen in how its image is continually maintained over time. Identifying brand values and matching these to consumer lifestyles in specific market segments can help develop a clear advertising message. In previous advertising messages quality and taste were emphasized. Cadbury is now building on this through its ‘Choose Cadbury’ strategy to underline the feeling a premium brand can bring to its customers. The Cadbury brand has proven itself to be a leader in a highly volatile and competitive market because it has successfully established, nurtured and developed its umbrella brand and growing portfolio of products. Research data shows that the Cadbury brand equity is highly differentiated from other brands with consumers. Brand equity is the value consumer loyalty brings to a brand, and reflects the likelihood that a consumer will repeat purchase. This is a major source of competitive advantage. The Cadbury umbrella brand has endured in a highly competitive market, and has established the link, in the mind of the consumer, that Cadbury equals chocolate. An umbrella brand is a parent brand that appears on a number of products that may each have separate brand images. The Cadbury umbrella brand image consists of four icons namely the Cadbury script, the glass and a half, dark purple color and the swirling chocolate image. These elements create a visual identity for Cadbury that communicates the ultimate in chocolate pleasure. Consumer research is conducted regularly so managers can learn more about how the market perceives the brand. This research has confirmed that the swirling chocolate and ‘glass and a half’ are powerful images. Both clearly portray a desire for chocolate while the half full glass suggests core values of goodness and quality. 48 | P a g e
  49. 49. RECOMMENDATIONS: WHY COMMUNICATION IS USED TO PROMOTE A BRAND? On the basis of the facts that revealed from the study and from analysis of data, it is recommended that as the confectionery market is full of brands that need to fight for our attention. The role of communication is to keep a brand in the mind of the consumer. We are constantly presented with countless brand images and messages on a daily basis. During the lifetime of a brand, companies will develop marketing strategies that communicate brand identity and core values to gain our attention. In order to keep its product competitive and contemporary, these messages need to change over time. Cadbury provides one of the most successful examples of how an advertising Message can be modified from one campaign to the next to attribute new values to a brand giving consumers more reasons to buy Cadburys. Healthy brand equity or brand strength is critical in an impulse-driven, competitive market. Advertising plays a key role in maintaining this strength. Cadbury employs all types of advertising from the internet to posters, from TV, radio and cinema to print media. This same creative message is then communicated through point of sale, merchandising, package design and public relations. 49 | P a g e
  50. 50.  Maintain dominance in chocolate segment.  Many new players are trying to enter Indian market so it should formulate new strategies so as not to lose market share.  New channels such as gifting, child connectivity and value for money offering to be the key growth drives.  One new major product launch every year.  Cadbury should bring out new products for health conscious people  FDI will bring in many new products and competitors so Cadbury will have to maintain their strong market distribution channel so as not to lose market share.  They need to maintain high standards and should be careful that there product remains sterile. And is not effected by insects. 50 | P a g e
  51. 51. BIBLIOGRAPHY              51 | P a g e