Marketing Strategies of Cadbury India Limited
Marketing Strategies of Cadbury India Limited
Marketing Strategies of Cadbury India Limited
2007
SUBMITTED TO
MR. SUNIL V. DESHPANDE
SUBMITTED BY
ATUL KUMAR CHAUBEY
ASSO. DEAN
CERTIFICATE
This is to certify that the project titled Marketing Strategies of Cadbury India
Limited is a bonafide work carried out by Mr. Krishan Kant in partial fulfillment of
the requirement for the award of Bachelor of Business Administration approved by
the C.C.S. University under our guidance and direction.
Acknowledgment
I am thankful to Ms. Smita Sharma (Brand Manager : New
Delhi Branch of Cadbury) for providing me important
information essential for the successful completion of the
project.
I am also extend heartiest thanks to __________ (Internal
Guide) who initiated this interesting project and helped us
solve all the difficulties confronted at various stages.
INDEX
S. NO.
1.
CONTENTS
Executive Summary
2.
Introduction
3.
Company Profile
4.
5.
Research Methodology
6.
7.
Conclusion
8.
Suggestion
9.
Bibliography
10.
Questionnaire
EXECUTIVE SUMMARY
The Cadburys Indias number one chocolate is able to share with
their market insights based upon unparallel breath of chocolate
experience.
A descriptive research
INTRODUCTION
The Cadburys Inc has taken the opportunity to offer us a broader
view of chocolate category. The Cadburys Indias no.1 Chocolate is
able to share with their market insights based upon unparalleled
breath of chocolate experience.
Cadbury has grown from strength to strength with new technologies
being introduced to make the Cadbury confectionary business, one
of the most efficient in the world. The merge in 1969 with Schweppes
and the subsequent development of the business have led to
Cadbury Schweppes taking the led in both, the confectionary and
soft drink market intech UK and becoming a major force in the
international market. Cadbury Schweppes today manufactures
product in 60 countries and a trade in staggering 120. The Cadbury
story is a fascinating story of a family business that grew in one of
the biggest, most loved chocolate brand in the world. A story that you
will remember as the story of The taste of life.
Product
Price
Physical Distribution
Promotion
Positioning
RESEARCH METHODOLOGY
Achieving accuracy in any research requires in depth study
regarding the subject. As the prime objective of the project is to
compare Cadbury with the existing competitors in the market and
the impact of Nestle on Cadbury, the research methodology adopted
is basically based on primary data via which the most recent and
accurate piece of first hand information could be collected.
Secondary data has been used to support primary data wherever
needed.
Primary data was collected using the following techniques
Questionnaire Method
Direct Interview Method and
Observation Method
The main tool used was, the questionnaire method. Further direct
interview method, where a face to face formal interview was taken.
Lastly
observation
method
has
been
continuous
with
the
To
these
geographical
area
questionnaire
was
given,
the
today
is
the
market
leader
in
the
U.K
chocolate
is
major
force
in
the
confectionary
and
soft
drinks
international market.
World - wide Cadbury is one of the pre eminent names in
confectionary with impressive range of famous brands.
Quality has been the focus of the Cadbury business from the very
beginning as generations have worked to produce chocolate with that
very special taste, smoothness and snap, so characteristics of
Cadburys chocolate.
ORGANIZATIONAL STRUCTURE
MANAGING
DIRECTOR
GENERAL
MANAGER
VICE PRESIDENT
MARKET
ING
MANUFACT
URING
SALES
FINANCE
DISTRIBUTI
ON
Design Development
Milk chocolate for eating was first made by Cadbury in 1897 by
adding milk powder paste to the dark chocolate recipe of cocoa mass,
cocoa butter and sugar. By todays standards this chocolate was not
particularly good as it was very coarse and dry and was not sweet or
milky enough for public tastes.
At that time there was a great deal of competition in the U.K from
continental manufactures, not only the French with their fancy
chocolates but also from the Swiss, who were renowned for their milk
chocolate. Led by George Cadbury junior, the Bourneville experts set
out to meet the challenge. A considerable amount of time and money
was spent on research and new plant design to produce the new
chocolate in much large quantities.
A new recipe was formulated fresh milk and new production
processes were developed to produce milk chocolate not as merely
as good as but better than the imported milk chocolate.
Four years of hard work were invested in the project and in 1905
what was to be Cadburys top selling brand was launched. Three
names were considered Jersey Highland Milk and Dairy Maid. Dairy
Maid became Dairy Milk and Cadburys Dairy Milk with its unique
flavor and smooth creamy texture was ready to challenge the Swiss
domination of the milk chocolate market.
By 1913 it had become the companys best selling line and in the
mid twenties Cadburys Dairy Milk gained its status as the brand
leader, a position that it has held ever since. Today more than 250
million bars of Cadburys Dairy Milk are made every year and sales
reach over 100 million Pound in value.
While advertising and label design g-have changed with fashion and
considerable strides have been made in manufacturing technologies,
the recipe for Cadburys Dairy Milk its glass and a half of
full cream milk in every half pound produced is still basically the
same as when it was launched.
Cadburys Dairy Milk Story
Chocolate has been enjoyed by successive generation since the
manufacturing process was developed in the Victorian Times. Good
chocolates is an art form depending on recipe traditions, which have
grown over the years. Chocolatiers have use their skills to make
balanced recipe in which all the ingredients combine to produced
chocolate with all the characteristics that enable full delicious taste
to be enjoyed by the consumers.
By todays standards the first chocolate for eating would have been
considered quite unpalatable. It was the introduction of the Van
Houten cocoa press from Holland that was the major break through
in the chocolate production as it provided extra cocoa butter needed
to make a smooth glossy chocolate.
Cadburys Milk Tray 1915
Milk Tray has maintained its popularity in the changing world since
the milk chocolate assortment made with the famous Cadburys
Dairy Milk chocolate was first introduced in 1915.
The name tray derived from the way in which the original
assortment was delivered to the shops. Originally Milk Tray was
packed in five and as half pound boxes, arranged on trays from
which it was sold loose o customers. The half pound deep lidded
box with the traditional purple background and gold script was
introduced in 1916, followed by one pound box in 1924.
With its stylish, without frills presentation Milk Tray was the
assortment for everyday, not just special occasion and it represented
the best buy in the chocolate for millions of people. The pack design
PRODUCT PROFILE
CHOCOLATE & CONFECTIONARY
Dairy Milk
Picnic
Perk
Gems
clairs
Nutties
Temptation
FOOD DRINKS
Ovaltine
Drinking chocolate
Bournvita
Horlicks
SWOT
Strength
1. Very strong brand equity in India.
2. Due to its 54 years presence in India has deep penetration
2100 distributors; 450,000 retailers, 60 mid urban (22%)
customers.
3. Three sectors; Chocs (70% share), Confec (4%), food drinks
(14% - leader in brown segment).
4. Low cost of production due to economic of scale. That
means higher profits and / or more co petitioners. Better
market penetration.
5. Second best manufacturing location throughout Cadbury
Schweppes.
Weakness
1. Poor technology in India compared to current international
technologies (Godiva, Mozart, Frazer, Dint, Naushans, etc...)
2. Ltd. Key products, only one central brand (CDM). Pralines
range totally wising in India.
3. Make in India tag once the economy opens up wore and
imports rush in.
Opportunities
1. Tremendous scope for per capita consumption (160 gms of
8 10 kg)
2. Increasing per capita national income resulting in higher
disposable income.
3. Growing
middle
class
and
growing
urban
population.
4. Increasing gifts cultures.
5. Substitute to Mithais with higher calories/cholesterol.
6. Increasing departmental stores concept impulse @ at cash
counters.
7. Globalization: optimal use of global Cadbury Schweppes.
Threats
a) Major :None. Due to low cost and highest brand equity, it is today in India.
b) Minor :Globalization will being in better brands for upper end of the
market (Liest, Monarch, Godiva, etc).
Conclusion:Will lose market share with globalization (a la Maruti) but will remain
brand leader.
Pest Analysis
P: since the budget range is decontrolled, no political effects are
envisaged.
E:
S:
substitute demand
T: Will have to reinforce technology to international levels
once India is a free economy
4 PS Of Marketing
PRODUCT
Satisfaction suffices. But delight dazzles the average company
will compete for customer by conforming to her expectation
consistently. But the winner will surpass them by constantly
exceeding her expectation, delivering to her door step additional
benefits which she would never have imagined possible. Cadburys
offer such product. The wide variety products offered by the company
include:
3) 5 Star
4) Break
5) Perk
6) Gems
7) Eclairs
8) Nutties
9) Temptation
10) Milk Treat
II. Beverages
III. Food Drinks
1) Bournvita
2) Drinking chocolate
3) Cocoa
Pricing
Make no mistake. Second P of marketing is not another name for
blindly lowering prices and relying on this strategy alone to increase
sales dramatically. The strategy used by Cadburys is for matching
the value that customer pays to buy the product with the expectation
they have about what the production is worth to them.
Cadburys has launched various products which cater to all
customer segments. So every customer segment has different price
expectation from the product. Therefore maximizing the returns
involves identifying right price level for each segment, and then
progressively moving through them.
Dairy Milk
Rs. 15
Perk
Rs. 10
5 Star
Rs. 10
Rs. 22
Gems
Rs. 10
Break
Rs. 5
Nutties
Rs. 18
Rs. 104
Drinking chocolate
Rs. 50
product
the
brand
that
language,
value
system,
life
style,
transport
and
Own
distribution
network
consist
of
clearing
and
Promotion
If an advertisement is to communicate effectively, the receiver must
at least half want it to, and be prepared too take step toward the
sender. Effective advertising is rarely hectoring or loudly explicit. It
often both attracts and generates arm feelings. More often than not,
a successful campaign has a stronger element of the unexpected a
quality that good advertising shares with much worthwhile literature.
To penetrate into the inner recesses of her memory, communication
must
first
ensure
exposure,
grab
her
attention
evoke
her
that Cadbury was looking to fill. Thereafter it was the job of the
advertising to communicate customer the wonderful feeling that he
could experience by re-discoursing the careful, unself conscious,
pleasure seeking child within himself a graft these feeling onto
the Ad campaign like Khane Walon Ko Khane Ka Bahana
Chahiye for CMD and Thodi Si Pet Pooja Kabhi Bhi Kahin
Bhi for Perk have been sure shot winner with the audience.
Whirl with the new launched temptations with the slogan Too To
Share the communication resolves around the reluctance of a
person whos got their hand on a bar of temptation to let anyone else
to have a bite. As well as outdoor and radio ads, ad agency contract
has created communication for cinemas and even ATM machines for
the brand.
Positioning
In the 1970s consumers were ready to pay more for more, and
luxury goods flourished. In the 1980s, consumers began to demand
more for same, and the discounting era grew strong. Todays
consumer demanding more for less, and the winner will be that
super value marketers. Some of todays most successful companies
recognize those customers are more educated and able to recognize
true customer value
Positioning is simply concentrating on an idea or even a word
defines that company in the mind of the consumer. It is more
efficient to market one successful concept to one large group of
people than 50 product or service ideas to 50 separate group
repositioning is a must when customer attitude have changed and
product have strayed away from the consumers long standing
perception of them
Cadburys is an anchor in sea of confectionary products. As a variety
of competitive claims assails her senses, today customer uses
complicated decision making process to assess the alternative before
making a purchase. Since Cadburys is more clearly associated with
a particular set of attributes in terms of benefits and prices, the
quicker becomes her search process.
Positioning of individual product:
1) CMD: is and always remain flagship brand. The punch by the
company for advertising this product life. Real taste of Life,
itself defines the positioning of the product. The chocolate is
meant for all age groups. It symbolizes fun, enjoyment, good
items. It has goodness of milk, taste and appetite appeal.
2) 5 star: although positioned internationally as an energy bar, 5
star was positioned on an emotional platform in India during
Gems
Bond
advertising.
Cadbury
decided to too
teenagers
with
Smart
the
Very
in
the
recent
history
of
Indian
marketing.
For,
it
Milk
chocolate
until
1986-destroying
the
very
chocolate
in
general,
and
COM
in
particular,
into
the
interlaid,
distinct
shift
from
collectivism
to
but only for the first two. If asked upfront, the consumer
was hardly likely to consider the dramatically-different idea credible.
Nor was there much chance of her announcing an immediate change
in behavior. But why likeability and comprehension? Simple: the
first was meant to be the vehicle on which the daring idea-that
adults should enjoy chocolate-would ride into the consumers
psyche.
In other words, the commercial was meant to make him smile at
first-and only then realize the import once of the message, which is
where the comprehension had to be tested. What was clear in this
case was that likeability would have to include identification and
feeling warmth.
T
Th
hooddii SSee PPeett P
Puujjaa,, K
Kh
haabbii B
Bh
hii K
Kaah
hiin
nB
Bh
hii!!
K
Kyyaa SSw
waaaadd H
Haaii ZZiin
nddaaggii K
Kaa!!
The next ad featured an on going match in the field. Think of a
match India batting against Pakistan. The score, 6 runs to win with
1 ball left and India wins the match. The ad shows a girl dancing
with jubilation on the cricket field when her hubby hits the winning
stroke. The award winning campaign, designed by Ogilvy and matter,
were intended to rid the Indian chocolates eater of that guilt
complex. The advertisement suggested, through not in so many
words, that it was ok to be seen including in a chocolate in public.
MTV
VJ
Cyrus
Broacha,
Cadbury
India
aimed
to
in
the
urban
market.
The
objective
behind
tne
new
T
Th
hooddii SSee PPeett PPu
ujjaa,, K
Kh
haabbii B
Bh
hii,, K
Kaah
hiin
nB
Bh
hii!!
From a treat for kids, chocolate are now being positioned near meal
substitutes, thanks to the initiative taken by the Cadbury India
during early nineties. The market itself has become more broad
based, in the sense adults are an important target segment now. The
reposting of Cadburys Dairy Milk in 1994 as the real taste of life
(through the Slice of Life and Cricket commercial by Ogilvy and
Mather) grew the entire milk chocolate by 20%, and gave the
Cadburys range 5 Star, Gems, clairs, Fruit & Nut, Crackle,
Nutties, Butterscotch & Tiffns a new lease of life. In other words, it
facilitated the repositioning of Cadburys sub brands in the basket.
Some o the strategic clicked, while other did not quite take off.
product
portfolio,
with
launch
of
sugar
based
Cadburys Temptation
New Launch
Cadbury target kids with Milk Treat: - It is a product that talks
directly to the target consumer. The
product benefits have been defined
as The goodness of milk to the fun of
chocolate. it combines both good
health, multinational value of milk
along with the values of fun and
excitement.
The
kinds
formally
as
Cadburys
international
Tolerance,
Roughly
to
offering
Lindit
5%of
the
and
total
premium
such
as
Hersheys.
domestic
offer
upgrade
consumer
to
an
international
option
to
chocolate
Future Strategy
In the branded impulse market, the share of chocolate in 6.6% and
Cadburys share in the impulse segment is 4.8% factor like changing
attitude, higher disposable income, a large youth population, and low
penetration of chocolate (22% of urban population) point towards a
big opportunity of increasing the share of chocolate in the branded
impulse among the costly alternative in the branded impulse market.
It appears that company is likely to play the value game to expand
the market encouraged by the recent success of its low priced value
for many packs.
Various measures are undertaken in all areas of operation to create
value for the future.
New channel of marketing such as gifting and child connectivity and
low end value for money product for expanding the consumer base
have been identified.
In terms of manufacturing management focus is on optimizing
manufacturing efficiencies and creating a world class manufacturing
location for CDM and clairs. The company is today the second best
manufacturing location of Cadburys Schweppes in the world.
Efficient sourcing of key raw material i.e. coca through forward
purchase of imports, higher local consumption by entering long term
contract with farmer and undertaking efforts in expanding local coca
area developing. The initiatives in the terms of development a long
term domestic coca a sourcing base would field maximum gains
when commodity prices start moving up.
Use
of
it
to
competitiveness
improve
logistic
and
distribution
Chocolate
Sugar Confecting
Food Drink
Contributing to
Contributing to
turnover 1994
turnover 2000
59%
64%
9%
12%
32%
24%
69.2%
Sugar Confectionary
4.0%
Food Drink
14.2%
RECOMMENDATIONS
Grow volume sales at least 20% p.a. over the next years.
Right from the stand Cadbury Dairy Milk Chocolate success has
been based on 4 factors: Quality
Case Study
Prior to deciding on the communication strategy for Cadbury Dairy
Milk it was important to understand the habits and mindset towards
chocolates. A large scale usage and attitude study was conducted
among adults. The research revealed that:
Adults were primarily purchasers, and not consumers of chocolates.
However, as for most childrens product, they exercised a strong
influence on the childrens consumption behavior. Adults acted as
gatekeepers of sorts when it came to food items. Considering the
advertising history, it came as no surprise that chocolate were
For
an
impulse
product
was
restricting
consumers
to
adults
chocolates
for
specific
situations,
thus
imposing
situation
opportunities.
could
help
promote
core
consumption
from
children
to
adult
consumption.
The
biggest
Nutties
Roast Almond
Picnic
The Outlook
The Cadbury management has cut down on its growth target by
setting a 10% average volume target for next 3 years (as against
previous growth) coupled with in factionary price increases, this
could translate into top line growth of 14 15%. This target also
appears difficult to achieve given the consumer slowdown and the
fact that the companys consumer slow down and the fact that
company is dependent on a single category chocolates to drive
growth. Effect it expanding confection any portfolio have also not
yielded desired results. The management has declared its intention
to focus only in clairs (which forms a major position of its 4% share
in the confectionary segment) for the time being in this category.
In chocolates too ones remain on the 2-3 key brands as CDM, perk
in E claims which have supported growth in the past. While new
launched such as milk @ and Perk slims have been doing will, the
management expects that dairy milk would continue to be the
central driving force in Cadburys growth and that all other brands
would remain peripheral to this central brand.
Positioning
brands
Nestles
Positioning
brands
Cadbury
The Real
Classic Milk
Positioned as an
Dairy Milk
Taste of Life
Chocolate
affordable
enriched milk
chocolate
Fruit n Nut
Creamy bar
Position as
adults as an
time
Almond
purchase
Bournvita
Positioned as
Trendy, Cool,
any time snack.
impulse any
Roast
Crackle
Bar One
self
expression
values
attached
5 Star /
Perk
Perk/Break
Positioned as
snacking
Snacking
consumption
consumption
Have a Break,
Thodi si Pet
Pooja
KitKat
Positioned as a
5 Star
Energy bar
Reach for the
Stars.
No
74%
80
65
60
70
60
50
40
30
30
20
10
0
Cadbury's
Nestle
Amul
Others
Movie Halls
17%
Others
6%
Restaurants
10%
Retail stores
35%
Super stores
32%
No
54%
Yes
46%
80
70
80
60
35
24
40
40
20
0
Dairy Milk
Temptation
Yes
91%
CONCLUSION
This company project has demonstrated CADBURYS
MARKETING AND COMPETITIVE STRATEGIES that has
proved to be extensive through, and of great benefit to the
company in furthering its competitive advantage.
In this project it is possible to see the success of Cadburys
in its indorse its strong potential to continue to do well.
Bibliography
Company Literature
Business World
Business Today
QUESTIONNAIRE
1. Do you eat chocolates?
Yes
No
No
5 Star
Perk
Temptation
Yes
No