Advertising Strategy of Cdbury

8/19/2019 Advertising Strategy of Cdbury

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Sanjay Purohit

Executive Director - Marketing, Cadbury India

Sanjay Purohit, Executive Director - Marketing, at Cadbury India Limited has been

ith the organisation !or more than a decade" Purohit is res#onsib$e !or deve$o#ing the strategic roadma# !or the business" %e is a$so custodian o! brand deve$o#ment and inning marketing mixes"

Prior to this he as orking ith Mobi$ Peevees Ltd as a &etai$ Sa$ed Manager and ith 'sian Paints Ltd as aProduct Manager" %e has an ex#erience as (usiness %ead ith over )* years ex#erience in creating andgroing #ro!itab$e businesses and brands across varied consumer #roduct categories"

In this !ree !$oing conversation ith &itu Midha o! 'udienceMatters"com, Purohit discusses im#act o! s$odon, marketing strategies, modern trade, non traditiona$ media and more" "

+" Starting ith the s$odon - im#u$se #urchase category is the one $east im#acted"Shou$dnt that be the !irst ex#ense #eo#$e cut True, sma treats or indugences did not seeso much o! an im"act, and that is true across the board# $e are not recession "roo!, but

you can say %e are recession resistant or so%do%n resistant# Coa com"anies had a

bum"er summer this year, and "erha"s the same thing is true !or us aso# $e have

continued to gro%, and chocoates as a category, has continued to gro%#

The reason coud be that the amount %e s"end on it is so sma that %e as consumers

economised on arger things &rst# That's "erha"s true o! im"use category across the

gobe#

(uite inex"icaby though, as "er )iesen &gures, con!ectionary category is not gro%ing as

much#

+" Did you change your marketing strategy in some ay to ride s$odon *t the beginningo! the year, %e did take a hard ook at %hat do %e need to do di+erenty# *nd %e eroed in

on three things#

ne, contrary to the common beie! that one shoud "an more "romotions in di.cut

times, our beie! %as that %e have to actuay invest behind brand advertising# In any case,

much o! our brand advertising is buit around changing consumer behavior, buiding more

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a.nity to%ards the category and gro%ing consum"tion o! the category# Changing behavior

is a about ho% %e increase the !re/uency o! consum"tion#

Second, %e "ut in "ace an aggressive "an to re!urbish and renovate our existing brands

themseves# Consumers' 0irting behavior goes do%n in tough times, and they go back to

brands they trust# 1ongevity, trust etc become even more im"ortant# Peo"e are oya

to%ards Cadbury and they beieve in it# $e decided to enhance that ex"erience# $e have

gone back and said !or many o! our brands 2 ho% can %e make them even better 2 ho% can%e renovate and innovate, %hat can %e do to make it more a""eaing#

Third and very im"ortant, %e "ut a ot o! em"hasis on better marketing and saes

aignment# Mainy on getting great distribution and visibiity in retai stores#

+" Moving to another direction, hy did Cadbury o#t !or a cam#aign !ocused on a socia$

message rather than #roduct attributes this !estiva$ season 3iving ha""iness to others is auniversa thought# )ormay, during Di%ai, %e are trying to get "eo"e to buy more o! our

gi!ting chocoates# 4ut this year %e decided to associate Dairy Mik or gi!ting chocoates

%ith arger s"irit o! Di%ai 2 %hich ha""ens to be about coming together and ceebrating,

being se0ess and giving to someone rather than ony taking# It had a t%o-!od objective 2

"assing on the "ositive socia message, and at the same time associating ourseves %ith

!estiva in a much arger %ay#

+" Did the cam#aign ork better in sma$$er cities It %orked in both sma and big to%ns 2 it%as a universa message that cuts across segment barriers#

+" .ou$d you say brand communication #er se is changing There is more sociaconsciousness in the messages5 6inay brands re0ect ha""enings in the society# Society is

demanding everyone to be sociay and cuturay res"onsibe# I think that re0ection you

see in brands aso# 7o% success!u %e are I don't kno%# 4ut there is greater "ositive

"ressure on brands and marketers to do the right thing, than being ony interested in

saes#

+" %o is the com#etitive scenario in your category Com"etition in chocoate category hasincreased in the ast !e% years, and it is good# *ny category that is reativey

underdeveo"ed gro%s %hen com"etition comes# It kee"s us on our toes at one eve, and

secondy it kee"s the consumer interested in the category#

*s the market eaders %ith 89: marketshare, a arge "ro"ortion o! the enhanced consumer

interest accrues to us# $e have hed our share in s"ite o! a the com"etition that has

ha""ened over the ast three-&ve years, and hence have no reason to com"ain#

+" ' com#$ete$y unre$ated /uestion 0 has ca$orie consciousness im#acted choco$ate sa$es There is a gro%ing a%areness in a consumers on the need to be heathy and thus %eathy#7o%ever, it is aso true that more and more consumers are reaiing that heath and &tness

is more out"ut reated rather than in"ut reated# 6or a "erson %ith an active i!estye,

eating choices are /uite di+erent !rom a "erson %ith sedentary i!estye#

*nd to ans%er your /uestion, no %e have not seen any im"act in any o! our markets# $e

are a very sma "art o! consumers' daiy diet# 6rom a caorie "oint o! vie%, chocoates "er

gram have same caories as biscuits, or most other "rocessed !oods#


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+" 'nd no the o!t asked /uestion" %as advent o! modern retai$ he$#ed Cadbury in terms o!

sa$es and marketing De&nitey# Modern trade or retai is big enaber to the category# I! youcom"are traditiona vs modern outets, dis"ay o! our category is so much better in modern

trade# $e have been abe to kee" the !u range in a better and hygienic manner, %hich

though some traditiona retaiers are abe to do 2 many are not, so they kee" a imited

range# The range being made avaiabe and ke"t and dis"ayed %e, means that saes !orim"use "roducts go u"#

$e do a ot o! %ork %ith retaiers to enabe them to gro% the category and our share o! the

%hoe category# $e have a "rocess caed category ca"taincy, %hich means to he" the

retaier to understand %hat %oud he" in gro%ing chocoate category business "er s/uare

!eet in his retai store# It guides the retaiers on the best %ay to dis"ay, the best %ay to

merchandise, best range and the number o! S;


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+" %o ou$d you rate your interaction ith your agencies Trust is very im"ortant# 6orsure, there %oud be times %hen things are not going %e or other%ise# In such situations,

you have to ask yourse! aso %hy is it not %orking5 Today, a three o! our agencies 2

Contract, @M and Madison, or !or that matter our research agencies 2 %e have got

"artnershi"s that are &!teen years od# They understand that %e %ant !rom them honest

%ork, and they are aso u"hoders o! our brand vaues# $e %ant them to "ush us# *s muchkno%edge about Cadbury resides in Cadbury house, same resides %ith our advertising,

media and marketing agencies# That cannot ha""en in a cou"e o! years 2 you have to %ork

on it 2 it is the di+erence bet%een a success!u marriage and a !aied marriage#

+" Lets end ith here e started 0 here do you see economy going in )*3* *"redictions by economists suggest that it %oud be better than ABB# *t east &rst ha!

%oud be much better# There!ore cautious o"timism is there#

Cadbury India celebrates 'pay day' with Dairy Milk

Mukta Lad, 24 June, 2009

Mumbai

Cadbury India has unveiled a new campaign that continues with the brand's 'Kucch Meetha Ho Jaye' positioning.

Created by Ogilvy & Mather the campaign revolves around the theme o! '"ay #ay' which is associated with

happiness by most people.

Commenting about Cadbury's latest communication $an%ay "urohit director mareting Cadbury India said ()his

new campaign taes the concept o! celebrations to yet another level. *ith the "appu and Miss "alampur campaigns

Cadbury #airy Mil created a space !or itsel! during the big community celebration moments. )his new commercial

eeps the core promise o! happiness while introducing another 'moment o! %oy' in one+s li!e. ,lso the new )-C

highlights the celebratory occasion o! pay day which is an important event in the li!e o! every middleclass Indian.(

$aid ,bhi%it ,vasthi eecutive creative director Ogilvy & Mather /India & $outh ,sia0 1*e were looing to come up

with another interesting uni2ue meetha moment. *e realised that while celebrations have been done !or various

occasions the celebration !or 3pay day+ was not done. "ay day emotes !eelings that are naturally celebratory in

nature. "ay day maes you !eel as rich as a ing or as rich as a crorepati. )his is the moment that C#M captures in

the new C#M campaign. ,nd then we luced out on the 45s' Kishore Kumar song that brings the pay day story idea

together beauti!ully.6


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$peaing to Campaign India about the tas at hand $hehar Jha creative director Ogilvy & Mather said (7enerally

the !irst o! every month is the day everyone !eels rich and in the mood to indulge. *e had to position Cadbury #airy

Mil as something that can be a part o! this day o! happiness promises and salaries. Cadbury automatically lends

itsel! to the celebrations.(

*atch the )-C here8

Cadbury #airy Mil !rom Campaign India on -imeo.

)he storyline un!olds in a really old o!!ice where clers are busy typing and the main protagonist is one o! them. ,

cashier approaches the main protagonist to give him his salary. )he protagonists soon starts singing with sheer

happiness as do all the typists. $imilarly the newspaper boy and doctor appear as well. ,nd then a id appears to

whom he hands over a Cadbury #airy Mil bar. Cut to the scene where he protagonist's wi!e is all ready to go to the

cinema !or the evening. He even buys a ticet !or her in blac since the movie is house!ull. *hile watching the

movie he puts his hand around his wi!e+s shoulder and she sees he is holding a Cadbury chocolate bar in his hand.

9verybody %oins in the celebration. )he )-C underlines the brand's positioning that Cadbury #airy Mil is always

around to celebrate one's %oyous occasions.

()he consumer insight( says Jha (arose !rom the !act that most people !eel indulgent on the day they receive their

salaries. *e decided to build up on this insight.(

)he media mi !or the campaign comprises )- outdoor Internet and radio. )he creative team includes "iyush

"andey ,vasthi Jha and Mahesh 7harat. )he !ilm has been directed by "rasoon "andey o! Corcoise :ilms.

Amitabh Bachchan: The advertiser's safest bet?

By N. Shatrujeet, agencyfaqs!, anuary ", "##$

Secti%n: Ne&s ateg%ry:

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*mitabh 4achchan is a !avourite among Indian advertisers %hen it comes

to im"arting !reshness and res"ectabiity to brands# $hat makes the star

such a "o"uar endorser5

All through the seventies and early eighties, filmmakers in Bollywood regularly used a surefire

recipe for the success of their feature films at the box office: Amitabh Bachchan, Amitabh

Bachchan and Amitabh Bachchan, in equal measure.

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Today, more than ! years since feature filmmakers first woke up to Bachchan"s star power and

used it to their advantage, #ndian advertisers are taking a leaf out of that much$thumbed recipe

book. By signing Bachchan on as their brands" ambassador and star endorser. The idea, evidently,

is to ride on the immense popularity and goodwill that the actor en%oys, and use the positive rub$

off of the association to the brand"s benefit. Be it in terms of recall or likeability. &r both.

'o, in the last five months alone, three big advertisers have struck multi$crore endorsement deals

with Bachchan $ (erolac )aints, *abur #ndia +for flagship chyawanprash brand *abur

hyawanprash-, and most recently, adbury #ndia. Add to this list last year"s endorsement

contract between the star and suiting brand eid / Taylor, and Bachchan"s enduring association

with ###, )epsi and )arker. That makes it seven active endorsement deals. And though not a

commercial endorsement in the strictest sense, one mustn"t overlook Bachchan"s role as

ambassador in the ongoing )ulse )olio campaign being coordinated by 0(#12 for the 3inistry

of 4ealth and 2amily 5elfare. (ow add to all this those brands that the actor has endorsed at

various times in the past $ B)6 +in the mid$nineties, in case you had forgotten- and 3aruti 7ersa$ and one gets a fair idea of l"affaire d"amour that has blossomed between Bachchan and the

Advertiser.

5hile the list of Bachchan"s endorsements is long $ and growing, in all probability $ let us focus

on the three most recent endorsement deals that the actor has struck. 2or the sheer convenience it

affords, true, but more importantly, for the circumstances that might have led to the contracts

being signed. 6et"s first take (erolac, which has been the distant second to rival Asian )aints,

certainly in image terms. (erolac signed on Bachchan as its ambassador, and shortly thereafter,

unveiled a multimedia campaign featuring the actor which centred at the theme 89eh rang har

kisi ko chhoota hai". The agency handling the account +#nterface ommunications- has beenclaiming that the campaign is a hit with consumers, and to be fair to the agency and the

advertisers, (erolac has gained a few notches in image terms.

#n the case of *abur hyawanprash, although the brand is the clear leader in the chyawanprash

market, the category has been a victim of flat growth rates for a while now. And it has been

speculated that even *abur hyawanprash is in need of a makeover, aimed at keeping the brand

relevant to consumers. The answer, as *abur saw it, lay in getting Bachchan to endorse the

brand. The coming together of brand Amitabh and *abur hyawanprash would not only help

the brand, but also the category, which has been witnessing near flat growth rates, 'unil *uggal,

1&, *abur #ndia, has been quoted as saying.

adbury, of course, has the strongest reason for roping in an endorser of Bachchan"s stature. The

company is trying to live down the 8worm controversy" that tailed its flagship chocolate brand

adbury *airy 3ilk for much of end$!!; +the damaging controversy also caught other adbury

chocolate brands in its slipstream-, and it believes Bachchan is its best bet in the bid to rebuild

consumer confidence in the brand. This is a perfect first between Bachchan and adbury


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chocolates $ their timelessness, and the love and trust they both share with people across #ndia,

makes this an ideal partnership, adbury #ndia"s managing director Bharat )uri has been quoted

in the media. 3oreover, Bachchan has a universal appeal that extends to everyone from six

years to

These endorsement deals clearly point to one thing: Bachchan seems to be something of a

blessing for #ndian advertisers when it comes to imparting freshness, vigour and, most

importantly, respectability to brands. 1specially to those in need of some sort of image

modification or re%uvenation. But the question is, what makes Bachchan such a safe bet= And

how exactly can brands best leverage the star"s goodwill to come out on top= That too by beating

the burgeoning clutter of Bachchan$endorsed ads=

adbury"s )uri may have been speaking about Bachchan"s timelessness and universal appeal

from adbury"s point of view, but he might as well have been echoing every advertiser"s

sentiment. Bachchan is as relevant today as he was ! years ago, especially after his reinvention

through >aun Banega rorepati, observes 3adhukar 'abnavis, country head, &gilvy *iscovery.

And the best part is his appeal cuts across socio$economic and age strata. &ur generation has

grown up on Bachchan, while his current popularity ensures that today"s generation is also

growing up on him. The fact that one of !!;"s sleeper hits was Bachchan$starrer Baghban $

virtually a one$hero movie $ shows the


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had a strong idea at the core, says *"'ilva. Amitabh walked the fine line between anger, disgust

and humour, and it came naturally. The idea of an angry Bachchan rapping viewers for not

doing their bit towards eradicating polio was sincere, and the message homed in true.

#nterestingly, )rasoon ?oshi, national creative director, 3cann$1rickson #ndia, insists that

brands have to come across as sincere while leveraging the benefits of celebrity endorsement.

The consumer is cynical, so you must know how far you can go, he says. 5hatever claim

your endorser makes has to be believable. The moment you cross the invisible line, the consumer

stops believing in your communication and your endorser $ which is bad for the endorser. ?oshi

too points to the )ulse )olio campaign as an example of clever use of a celebrity endorser.

Amitabh commands respect, so people listened to him. 4e adds that roping in Bachchan was

smart on adbury"s part, as, Amitabh"s positive persona can override whatever negatives

adbury has been exposed to.

*"'ilva, for his part, also believes that endorsements cease being credible when the endorser

mouths 8manufacturer speak". &ften, a brand"s desperation shows when it tries too hard. 9es, in

the short$term, Bachchan might be able to rescue you if you are down in the dumps, but he

cannot be an alternative to a sound strategic or creative idea. #f you don"t have an idea, Bachchan

will only be parroting a manufacturer"s claim, which will ring hollow. There is a consensus that

using Bachchan as an endorser is a good short$term idea. Bachchan stands for credibility and

brands can benefit from that, says (igam. #n the same breath she cautions that celebrity

endorsements are not long$term propositions. #n the long$term, the brand has to be the hero.

There is, however, one little patch of debate. 5ith the star simultaneously endorsing so many

brands, a Bachchan endorsement has ceased to be a novelty as far as consumers are concerned.'o is an endorsement deal with the actor worth all that money= There is a theory going around

that multiple endorsements by your ambassador don"t hinder as long as your endorsement is

relevant, points out 'abnavis. There is some merit in that, considering Bachchan"s polio

campaign cut through all the clutter fairly easily. 9es, the question that advertisers and agencies

have to answer is whether there is merit in using Amitabh Bachchan as an endorser, 'abnavis

continues. But that equally applies to all celebrity endorsers

The Big B is going to promote the Big C in the chocolate business - Cadbury in India. Indiancine superstar Amitabh Bachchan has signed on to become the brand ambassador o the

chocolate ma!or or two years.

AB will play a pi"otal role in all communication relating to Cadbury's products and brands#

be it in print# on tele"ision or the great outdoors# the company's managing director Bharat$uri has been %uoted as saying in media reports.


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AB had played a lead role in helping turn around the ortunes o the then stragglingtele"ision channel &tar $lus by anchoring the Indian "ersion o Who Wants to be a

Millionaire? and taking it up the ratings charts a couple o years ago. Many other ad"ertisers

such as ICICI# erolac# ha"e used AB in their ad"ertising since then.

Cadbury India# whose chocolates had ridden into contro"ersy late last year during the

esti"al season because worms were disco"ered in some stocks o its Dairy Milk chocolates

is probably hoping the association with Bachchan will help consumers orget the bad pressthe company got on account o the disco"ery.

The (ood and Drug Administration had then sei)ed the company's stocks and the Cadbury

India management had e*plained it was bad storage practices by retailers and distributorswhich had led to the worms. Cadbury India's sales ell ollowing the disco"ery. And e"en the

go"ernment got into the act with the central health ministry asking or a report on thecontro"ersy.

Cadbury on its part has since then been taking correcti"e measures. It immediately initiated$ro!ect +ishwas# a three-step programme in"ol"ing wholesalers and retailers in which the

company partners with the traders on a war-ooting to build awareness about storagere%uirements or Cadbury products. The AB association is another step in this direction to

help consumers build conidence in the brand. AB is among the most trusted and re"eredilm stars in India.

,hile making the announcement# Cadbury today launched a strengthened# new 'purity

sealed' packaging or Cadbury Dairy Milk and this new packaging or mg /0s 12 is double

wrapped or ma*imum protection. The chocolate is wrapped in aluminium oil and enclosedin a poly low pack# which is completely sealed on all sides.

In the second phase# the larger Cadbury Dairy Milk packs will come in poly-coatedaluminium oil# which will be heat-sealed and wrapped in the branded outer package.

The Indian chocolate market is estimated at about 3#444 tonnes with a "aluation o around0s 5144 million annually. Cadbury India has the lion's share o 54 per cent with its closest

competitor being &wiss conectionery company estle with an estimated 61 per cent.

Advertising Strategy of Cdbury

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