IMC Cadbury's1

Cadbury’s Dairy Milk

INTRODUCTION

History of Chocolate:

The origins of chocolate can be traced back to the ancient Maya and Aztec civilizations in Central America, who first enjoyed 'chocolati'; a much-prized spicy drink made from roasted cocoa beans. Chocolate was exclusively for drinking until the early Victorian era, when a technique for making solid 'eating' chocolate was devised. Throughout its history, whether as a cocoa, a drinking chocolate beverage or confectionery treat, chocolate has been a much sought after food.

The story of cocoa begins with cocoa trees, which, for thousands of years, grew wild in the tropical rain forests of the Amazon basin and other tropical areas in Central and South America. Hundreds of years before cocoa were brought to Europe, the Maya Indians and the Aztecs recognized the value of cocoa beans both as an ingredient for their special drink and as currency.

History of Cadbury:

The Cadbury story is a fascinating study of industrial and social development, covering well over a century and a half. It shows how a small family business developed into an international company combining the most sophisticated technology with the highest standards of quality, technical skills and innovation.

A one-man business, 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 chocolate producers. By 1831 the business had changed from a grocery shop and John Cadbury had become a manufacturer of drinking chocolate and cocoa, the start of the Cadbury manufacturing business as it is known today.

Institute of Management Science 1


The leader in the UK confectionery market, Cadbury Limited is the confectionery division of Cadbury Schweppes plc, a major force in the confectionery and soft drinks international market. Quality has been the focus of the Cadbury business from the very beginning, as generations have worked to produce chocolate with the taste, smoothness and snap characteristic of Cadbury chocolate.

About Cadbury’s Dairy Milk:

Long ago in 1866 the Cadbury brothers were busy pioneering their drinking chocolate recipe. However, they wanted to give their chocolate fans more. 30 years went by with the brothers dreaming up new ideas and then inspiration struck. What would happen if you put fresh milk into chocolate? That’s why since 1905, Cadbury Dairy Milk still contains a glass and a half of fresh milk in every half pound of milk chocolate.

Cadbury Dairy Milk is full of beans, Cocoa beans to be precise. And all from one place: Ghana. They believe that Ghanaian beans are so delicious that we’re happy to pay premium prices for them. They think it’s worth it to give us that unique Cadbury Dairy Milk taste that we all love so much.

Everyone knows the not so secret ingredient of how Cadbury Dairy Milk is made so creamy. However, not many people know how dairy milk chocolate is made so chocolatey. It’s all thanks to the beautiful tropical country of Ghana in West Africa that helps make our Cadbury Dairy Milk taste so special.

The Cadbury’s dairy milk contains a whole glass and a half goes into every single half pound of chocolate. That’s why it tastes so delicious and that’s why is named as Cadbury’s dairy milk.

Cadbury Dairy Milk, produced in Bournville UK, uses fresh liquid milk sourced from dedicated dairy farmers in the UK. Cadbury Dairy Milk is also produced in Ireland and uses fresh, liquid Irish milk to create the unique chocolate taste.



OVERALL STRATEGY

OF

CADBURY’S DAIRY MILK



The overall strategy of CADBURY’S DAIRY MILK for the target

market is to capture the maximum attention of the customer is

somewhat same all around the world. The target market is same;

positioning is somehow different in the different regions of the

world according to the segmentation and mental perception of

the customer. The message is also nearly same. CADBURY’S is

targeting the same market around the world.

Cadbury’s dairy milk has recently launched a new gorilla ad

campaign that targets to new segment of fun seeking consumers.

We will see later in the report that how Cadbury’s has segmented

its market and targeting each segment through different

strategies.



Marketing Strategy and

AnalysisFor any company to be successful in the market, it is very

important to have a thorough marketing strategy and analysis of

the market in detail. This is what the Cadbury’s dairy milk has

done and is still doing to be at the hearts of the consumer. The

marketing strategy and analysis consists of the following three

tasks:

Opportunity analysis

Competitive analysis

Target marketing

Opportunity Analysis:

The reason behind the success of Cadbury’s dairy milk is that

they are continuously searching for the opportunities in the new

market segments and regions world over. This opportunity

analysis has helped Cadbury’s a lot to become market leader in

the dairy milk chocolate industry. So for any firm, to be

successful in the market, it is at utmost priority to search for

opportunities in the new market segments.

Competitive Analysis:

Cadbury’s Dairy milk is the market leader in dairy milk chocolates

but still the competition exists. Cadbury’s dairy milk has thorough

competitive analyses that are affecting it directly or indirectly.



The following figure gives a briefer overview of the

competitive analysis of Cadbury’s dairy milk.

Cadbury’s dairy milk has a number of competitors that is

affecting it directly or indirectly. A deeper analysis of competition

of Cadbury’s dairy milk gives us three differentiated layers of

competition that includes:

Direct competition

Product category competition

Generic competition


Biscuits Cakes

Confectionary SweetsGeneric

Nestle kit kat Jubilee

Bounty Snicker

Product Category

Cadbury’s dairy milk

Ferraro Rocco

Lindt Swiss Made

Direct competition


Competitive Analysis of Cadbury’s Dairy Milk

Direct Competition:

The direct competition of Cadbury’s dairy milk includes all the chocolates that are made from fresh milk and exactly contains the same nutritional facts as Cadbury’s does. In direct competition, consumer has the choice of switching to the other product that contains the same ingredients hence directly affects need for Cadbury’s dairy milk. This direct competition category for Cadbury’s includes:

Ferraro Rocco Lindt Swiss Made Patchy

Product Category Competition:

The next level of the competition for Cadbury’s dairy milk is product level. It contains a broader aspect of chocolates that not only contains the dairy milk chocolates but also other categories and variants of chocolates. The product category competition for Cadbury’s includes:

Bounty Snickers Jubilee Nestle Kit Kat

Generic Competition:

This is yet another level of competition for Cadbury’s dairy milk. In this level of competition, we make our vision broader to an extent that now includes other edibles apart from only chocolates that can easily alter the decision of the consumer by attracting the consumer. Other eatables that can easily replace the chocolate are included in generic competition. Generic competition for Cadbury’s dairy milk includes:

Sweets Confectionary items



Biscuits Cakes

Budget Level Competition:

It is the broadest level of competition that will include all the products falling into the budget of Cadbury’s dairy milk. There are mainly two aspects for which the Cadbury’s dairy milk chocolate can be consumed, firstly for the sake of having fun and secondly for a source of energy. The budget level competition will include all the products that will fall in the same budget and satisfying either of the two needs of the consumer. Budget level competition for Cadbury’s dairy milk includes:

Fast Foods Baseball Cards Video Games

Target Market Selection:

The next step in market strategies and analysis is target market selection. In this process a firm carefully has a glance of the target markets where they feel some opportunity to offer their product. Cadbury’s dairy milk being the market leader has been exploring markets for ages and everyday introducing their products to new markets segments.

Segmentation

Segmentation is defined as dividing the market into logical distinct groups that has:

Common needs Will respond similarly to a market action

Cadbury’s dairy milk has very finely segmented market to offer its products. The segmentation of Cadbury’s dairy milk is based on the following bases:

Geographic Segmentation:



Cadbury’s dairy milk has geographically divided the market in to smaller distinct segments and offering products according to the need of the segments. The geographic segmentation includes:

Region City size Density

Based on the following bases, Cadbury’s is offering its product to different countries with different strategies all over the world. The most important geographic segmentation variable is region for Cadbury’s dairy milk. Cadbury’s has very keenly observed the needs of chocolate lovers in different countries and being the pioneers in introducing the dairy milk chocolate, has effectively catered the needs of the consumers in different countries.

Product offerings are also different in different geographic regions depending upon the needs and taste of the consumers.

Demographic Segmentation:

One of strong bases in segmentation process is demographics. Demographic segmentation is done on the bases of following variables:

Gender Age Race

Cadbury’s dairy milk has demographically segmented the market fulfilling the needs of every consumer. They are targeting both male and females. The product is offered to all age groups.

Psychographic Segmentation:

Psychographic segmentation is when the market is segmented on the bases of:

Personality Values (VALS) Life Style



Cadbury’s dairy milk gives most priority to life style while segmenting the market psycho graphically. It tells about the life style, preferences and likings of a certain group. Cadbury’s dairy milk is a premium product so it carefully caters the life style of the consumers to give them a better product to consume.

Socioeconomic Segmentation:

Socioeconomic segmentation divides a group of people according to three variables that are:

Income Occupation Education

It is very important for Cadbury’s dairy milk to segment the market according to income level and occupation. Cadbury’s dairy milk being a premium product is targeting SEC A and SEC B class. So targeting a top socio economic class with a premium product requires a lot of learning about the market, and that is what the Cadbury’s dairy milk is doing.

Benefit Segmentation:

Cadbury’s dairy milk chocolate claims that every half pound of Cadbury’s dairy milk contains a glass and a half full of rich cream milk. So they are also targeting the segment of the market that only relies on the benefit part of a product. Though chocolate is an element of having fun, yet according to the needs of the consumer, they have also segmented their market on beneficial bases.

Target Market:

Based on the segmentation process, Cadbury’s dairy milk targets:

Male, Female, Children All age group people Fun seeking personalities Consumer who wants fun with energy Consumers who are conscious about their life styles



MARKETING MIX

OF




ProductCadbury includes a wide range of products including dairy milk,

bournville and many others. Further there is a big range of

products under Cadbury’s dairy milk. Here is a brief description of

products being offered by Cadbury.

Cadbury Crème Egg:

A thick Cadbury chocolate shell filled with an irresistibly gooey centre.

Cadbury’s Dairy Milk:

With a glass and a half of full cream milk in every 250 grams.

Flake:


http://www.cremeegg.co.uk/

http://www.cadbury.co.uk/EN/CTB2003/product_info/DairyMilk/CDM_winners.htm

http://www.cadburyflake.co.uk/


Only the crumbiest, flakiest chocolate tastesLike this.

Bournville Deeply dark:

An intense but surprisingly smooth dark chocolate with 60% cocoa.

Cadbury’s Dairy Milk Range

Cadbury’s Dairy Milk Caramel:

It contains smooth caramel covered with rich dairy milk chocolate.

Cadbury’s Dairy Milk Biscuit:

It contains a crunchy biscuit covered with thick dairy milk chocolate.

Cadbury’s Dairy Milk Bubbly:


http://www.cadbury.co.uk/en/ctb2003/product_info/bournville/html/index.htm


It contains bubbles of dense chocolate that gives an exotic taste of dairy milk chocolate.

Cadbury’s Dairy Milk Almond and Honey:

It contains roasted almonds dipped in honey and covered with the all times favorite dairy milk chocolate to give a great taste.

Cadbury’s Dairy Milk Whole Nut:

It contains nuts covered with dairy milk chocolate.

Cadbury’s Dairy Milk Mint:

It contains a great refreshing and cool minty taste to freshen one’s mouth.



PriceCadbury’s dairy milk is market leader in dairy milk chocolate

products and charging a premium price for its products. Following

are the prices of Cadbury’s dairy milk that they are charging for

their products.

Name of product Weight Price (PKR)

Cadbury’s dairy milk 250g 145

Cadbury’s dairy milk caramel 250g 150

Cadbury’s dairy milk bubbly 181g 125

Cadbury’s dairy milk almond

honey

250g 210

Cadbury’s dairy milk biscuit 250g 160

Cadbury’s dairy milk whole nut 250g 200

Cadbury’s dairy milk mint 250g 185

Pricing Strategy:



As discussed above that Cadbury’s dairy milk is a pioneer in dairy milk products so they are charging a premium price as they know that the market they are targeting can pay this price for a quality product.

Price varies in different regions geographically. The price charged in UK or Australian markets is different from the price charged in Asian markets. The pricing structure tells that the pricing strategy is based on the extra ordinary quality of the Cadbury’s dairy milk products.

Placement

As Cadbury’s Dairy Milk is a consumer good and convenience

item so type of placement used for it is Spot Exchange. It has

been made available in all big and small general stores. The SKU

(Shelf Keeping Unit) strategy is very strong and it is available in

almost all leading stores in different sizes.

The distribution network of Cadbury’s dairy milk is very strong as

it is being exported in more than 30 countries.

PackagingCadbury’s Dairy Milk products come in very attractive purple

color packaging, which is an identification of Cadbury’s dairy milk

products. Packaging comprises of all the aspects to attract

consumers and vary with the product type and variants.



It also contains the nutritional facts information

displayed on the packaging to give consumer a sound confidence

that they are eating a healthy and nutritious product. Here are

different samples of packaging of Cadbury’s dairy milk products.

Nutritional

Information:

Nutrition Information (per 100g)

Energy (KJ) 2190Energy (KCal) 525Protein 7.5gCarbohydrate 57g(of which Sugar) 56.7gTotal Fat 29.8g(of which Saturated Fat) 18.5gFiber 0.7gSodium* 0.09g

PositioningCadbury’s Dairy Milk has a very sound positioning of their

products in the minds and hearts of the consumers and has

sustained this positioning and brand image since ages. The

positioning strategies though have been changing with time but

the brand equity has flourished over the centuries. In different

times, the positioning strategies have been different. As in late



20th century, they positioned their product with the

benefit of providing energy. With the passage of time, in early

1990’s they positioned their product with pleasure, joy and a

state of ecstasy.

Later in late 1990’s the positioning strategy changed and they

started positioning their product with an element of happiness

and excitement. In all Indian ads, the crux is to position

Cadbury’s dairy milk with excitement

and joy and to bring out the child factor in someone. In the recent

ad campaign, they have positioned Cadbury’s Dairy Milk with the

factor of joy. Later in IMC strategies, we will discuss the

positioning of Cadbury’s Dairy Milk with joy.



INTEGRATED MARKETING

COMMUNICATION

(PROMOTION)



OF


AdvertisementAdvertising has a surprising number of unwritten rules and

conventions for an industry that prides itself on its left-field, out-

of-the-box, blue-sky thinking. Cars must be shown speeding

round hairpin bends. Hair care commercials are apparently

obliged to feature a dodgy science sequence and there seems to

be some law which says that banks have to be youthful, honest

and in touch.

Advertisement is thought to be the most powerful tool of

Integrated Marketing Communication mix. It has been used by

the companies since ages. But due to the transformation of

markets and more learning of the target audience, now relying

only on advertisement is not sufficient for the companies. So it

has become a very important aspect for the companies to use a



blend of different marketing promotional tools to

promote the products.

But chocolate advertising has long been blessed with a choice of

clichés. It can either make us drool in anticipation of its ineffable

deliciousness or inspire us with the sight of happy people using

the product to enhance their happy lives.

TELEVISION COMMERCIALS:

Among different tools of advertisement, TV commercials are of

most priority. Cadbury’s dairy milk is relying mainly on TV

commercials to promote their products. It might be a reason that

Cadbury’s dairy milk is

not effectively using other tools because they are the pioneers

and market leaders in dairy milk chocolate products. Still there

exists a need to explore new markets by coming up with an IMC

program. Cadbury’s dairy milk has recently launched a TV

commercial in August 2007. This commercial yet does not show

chocolate; it doesn't show people eating chocolate; throughout its

full 90 seconds, it doesn't mention the C word once. The film

opens with a title, "A Glass and a Half Full Productions presents".

Then we hear the opening bars of the Phil Collins hit "In the Air

Tonight". The camera pulls back slowly to reveal that the new

face of Cadbury Dairy Milk is in fact a gorilla. The effect is spooky

and primal. As the big drum break starts, the camera pulls further

back to reveal that the gorilla is hammering an enormous drum

kit in a karaoke-style bang along.



It's such a pompous piece of music and the thrashing of

the gorilla is so self-absorbed that the effect is hilarious. It's

short-form comedy just like one of those funny clips you see on

You Tube. But it seems to have precious little to do with

chocolate.

But there is a product message in there too. In fact, the entire

commercial is a product metaphor. "Chocolate is about joy and

pleasure. For years Cadbury has told us that it was generous,

through the glass and a half strap line. We thought, don't tell us

how generous you are; show us. Don't tell us about joy; show us

joy."

BILLBOARDS:

Billboards are definitely an effective and easiest way to capture

and grab the attention of the consumers. Cadbury so far hasn’t

displayed any billboards in the city.

RECOMMENDATIONS:

Cadbury should display their billboards in most of the major

locations of Lahore like Gulberg, Model Town.

MAGAZINES:

Advertisements have been seen on various magazines, but major focus has been the kid’s magazines.



RECOMMENDATIONS:

In addition to posting the ad’s in the kid’s magazines they should also post their ads on other weekly magazines in order to capture the bigger market awareness.

POSTERS:

Cadbury has displayed various posters in many of the small as well as large departmental and confectionary stores in order to create strong brand awareness. And since the product they sell is of the confectionary category, most of their Cadbury milk chocolate posters focus on the quality, color and texture of the chocolate to emphasize the quality and mouth watering taste of real milk chocolate.

RECOMMENDATIONS:

Cadbury should also display their posters in the cafes of different colleges and universities in order to attract and to communicate their message to the students.

Public RelationsAccording to Belch and Belch (2004), PR is the management function which evaluates public attitudes, identifies organizations’ polices and procedures from public perspective, and executes a program of action and communication to earn public understanding and reception. Public relations is building good relations with the company’s various public by obtaining favorable publicity, building up a good corporate image and handling or heading off unfavorable rumors, stories or events .

RECOMMENDATIONS:



Since PR is the most efficient and cost effective way to reach out for the customer and to create a favorable image of the company and brand in the minds of the consumers, it is recommended that Cadbury should also emphasize on this method. In fact they should go for the development of public relations first and then move to the advertising.

Recommended IMC:

Cadbury’s dairy milk is only emphasizing on TV commercials yet

they must need other promotional tools as Sales Promotion, to

enhance their sales. Hence, they should look for the tools that are

less costly and are giving more benefits. The benefits include that

wide coverage and more solid impact on the minds of the

customers.

The following tools could be used to get an effective response

from the customers:

Sales Promotion through Pamphlets.

They could use banners but they had to locate them in

better locations.

Internet marketing is also a good tool for promotion.

Sales Promotion through Pamphlets:

To give consumer, a better know how of the product, sales

promotion is an effective tool to use. Chocolate is considered as a

fun making element in our local market so in order to make

consumer more aware of the other benefits of the product, this

tool can effectively help out.



Internet Marketing:

They can use internet for their promotional usage. Internet could

be one of the best tools for promotion since students and youth

uses internet more frequently. They could use the pop- up menus

in different websites to make the customers aware of their

website.


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