Cadbury

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Transcript of Cadbury

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•Cadbury India began its operations in India in 1948 by importing chocolates.

•The head office is presently situated at Pedder Road, Mumbai, under the name of "Cadbury House". •Currently, Cadbury India operates in five categories – Chocolate confectionery, Beverages, Biscuits, Gum and Candy.

•It is the market leader in the chocolate confectionery business with a market share of over 70%.

•Cadbury India, on 21 April 2014, changed its name to Mondelez India Foods Limited.

HISTORY

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Cadbury India• Cadbury India — a subsidiary of Mondelez International,

the $32 billion global snacking major formed in October last year.

• Cadbury India enjoys a value market share of over 67 percent in the chocolate category and our brand Cadbury Dairy Milk (CDM) is considered the "gold standard" for chocolates in India.

• Cadbury in India operated in five categories: Chocolates, Beverages, Biscuits, Candy & Gum.

• Snapshot of some of the most popular Brand of Cadbury:-

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Cadbury Dairy Milk(CDM)• Introduced in 1905, but it came to India in 1948.• Cadbury Dairy Milk has captured the heart of Indian

consumers for over six decades.• The name Dairy Milk because it has higher proportion of

milk than any other chocolate bars.• Dairy milk alone holds 30% value share of the Indian

chocolate market.

1905

1951 1993

1999

2013

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Products & Segments CDMSegments Product Pack size Rate Value Dairy Milk 9.2 Gram Rs. 5 Value Dairy Milk Shots 18.6 Gram Rs. 10 Value Dairy Milk 17 Gram Rs. 10 Value Dairy Milk 38 Gram Rs. 22 Mid-Tier Dairy Milk Crackle 42 Gram Rs. 35 Mid-Tier Dairy Milk Roast Almond 42 Gram Rs. 35 Mid-Tier Dairy Milk Fruit & Nut 42 Gram Rs. 35 Premium Dairy Milk Silk 60 Gram Rs. 55 Premium Dairy Milk Silk Fruit & Nut 60 Gram Rs. 55 Premium Dairy Milk Orange Peel 60 Gram Rs. 55 Super Premium Dairy Milk Silk 145 Gram Rs. 125 Super Premium Dairy Milk Silk Fruit & Nut 145 Gram Rs. 125 Super Premium Dairy Milk Orange Peel 145 Gram Rs. 125

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Marketing Strategy

Present Market in India and challenges faced

•One of world’s fastest growing chocolate market

•Annual growth of 15%

•Indian market share – 30%

•2.7 million Cadbury bars sold each day

Challenges•The notion that chocolates are for Kids•People’s preference for sweets

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STP

Positioning

•Customer concept or image of Cadbury in the minds of the people

•We can say every aged person wants to buy Cadbury dairy milk chocolate and they also don’t know why they are purchasing the Cadbury dairy milk even they don’t want to purchase.

Product Differentiation

•Contents of the chocolate – cocoa content less than 22%

•Good quality

•Unique taste

•Packaging

•Product range

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4 P’s

•Product

• Cadbury dairy milk is made from real chocolate.

• Its ingredients include cocoa, butter and there is a glass and half full cream dairy milk in every 200 grams in every dairy milk chocolate.

• Cadbury buys 65 million liters of fresh milk each year to make Cadbury dairy milk chocolate

• Price

• Reasonable and affordable policy to charge the price from its competitors

• Vision that Cadbury is in every pocket

• Adopted competitive pricing strategy for basic products

• Cut down on weight but did not increase cost e.g. 5 Rs pack was of 13gm but now it is 10.5gm

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Place• The placement strategy of Cadbury dairy milk is to sell the chocolate at every

corner shop, super stores, bakers shop, petrol pumps and even medical stores also included in it.

• Wholesalers, food stores, chemists, etc.

• It is then sold to the public.

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Promotion

• Press and electronic media to motivate the potential and inspires the actual customers to purchase the product of Cadbury.

• To inspire the Childs to purchase the Cadbury chocolate the company made such type of ads.

• To encourage the youth class the company hires the superstars for advertisement of the products which inspires the all type of consumers who want to eat sweet.

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• Cadbury Dairy Milk encapsulates an enormous breath of emotions, family togetherness, individual enjoyment. It stands for goodness. A moment of pure magic!

• Cadbury Dairy Milk entered the Indian market in 1948, they remains at the top of the Indian chocolate market not only because of its most delicious, best tasting chocolate but also because of its memorable communication.

Advertisement Strategy:

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Advertising :• In order to build stronger appeal among older age groups,

the brand re-positioned itself through the classic ‘Real Taste of Life’ campaign in 1994. The campaign positioned Cadbury Dairy Milk as the chocolate that awakened the little child in every grown up and very soon, both teenagers and adults, were hooked on to this bar of pure magic.

• In 2004, the `Kuch Meetha Ho Jaaye’ campaign was launched, With Amitabh Bachchan as the face and voice of the brand, the campaign went on to become a huge success. How many can one forget the `Pappu Pass Ho Gaya’ commercial?

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• In the year 2010, a new campaign was launched, drawing

lines from the traditional Indian custom of having something

sweet before embarking on something new with `Shubh

Aarambh’ (Auspicious beginning).

• With the recent campaign 'Meethe mein kuch meetha ho

jaye' (Let's have something sweet for dessert), Their aim is to

introduce the thought of having a Cadbury Dairy Milk as a

post dinner dessert.

Advertising :

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• Cadbury launched Cadbury Dairy Milk Shots in 2008

• Positioned as ‘chocolate laddoo’ and priced at Rs. 2 for

2 pieces, the attempt was to introduce the product to

consumers as the perfect value-for-money

accompaniment for their small celebratory occasions.

Advertising :

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Advertising:

• The creative route taken was “You don't buy a Bournville, you earn it”

• The campaign has successfully built Bournville with special credentials based on its distinct rich intense taste, quality ingredients (best Ghanaian Cocoa) and a British heritage.

• Hailed as Cadbury’s answer to the emerging market of luxury chocolates, Cadbury unveiled Bournville – the Indian formula for dark chocolate in 2009

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LEARNINGS:

•Impact of emotional advertising on brand identity.

•Synonymous for chocolates in India.

•Promotions target all age groups from children to

grandparents.

•Roped in Amitabh Bachchan after the worm scandal to

rebuild credibility.

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SWOT

1.High brand equity and top of the mind chocolate

brand

2. Strong brand recall and customer loyalty

3. An employee strength of around 71,000

4. Strong parent brand of Kraft Foods

5. Successful marketing and advertising campaigns

6. A wide variety of products on offer

7. Strong R&D and innovation

8. A trusted and premium quality brand

9.Strong distribution network and operations in US, UK, India,

Australia and a few other countries

10.’Dairy Milk’ is one of the most famous and widely sold brand

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WEAKNESS:1. A few controversies regarding advertising, worms etc made international news.2. A few instances of product recall hampering brand image.

Opportunities:1.Increase reach in rural markets.2.Increase its reach and penetration in untapped markets.3.Acquire competition. 4.Diversification of product range.

Threats:1.Health consciousness amongst people.2.Increase in cost of cocoa.3.Price sensitive customer.

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CDM Product Life Cycle

19052010

Life Cycle

Extension

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BCG Matrix Cadbury Chocolate

Bu

sin

ess

Gro

wth

R

ate

Hig

h

High

Lo

w

Low

Relative Position(Market Share)High Low

Bournvita

Dairy Milk

Bournville Toblerone

Gems

Éclairs

5 StarPerk

Gum

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Recommendation• Focus on bringing in low calorie, sugar free

chocolates for the diabetic and the health conscious.

• Bringing online sales.• Product expansion by new flavours and white

chocolates.• Seasonal sale of rum/alcohol based chocolates

during the Christmas season.• Penetrating the rural market.

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