5 Star Profile3

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PRODUCT PROFILE

Company: 5 star
Founded by: Cadbury

5 star chocolate was launched by Cadbury in India during the year 1969. It is a
chocolate bar made with a delicious mix of smooth chocolate, caramel and
nougat. Its pack is also distinctively decorated with a golden wrapper and five
stars indicating the name of the popular chocolate.

There are different varieties of the chocolate available in the Indian market –
some of the popular ones are Crunchy, Fruit and Nut, 5 Star 3D and Chomp.

How it all Started

The popular 5 Star Chocolate brand launched by Cadbury in India has


successfully completed five decades of its existence in the country. Emboldened
by its consistent performance, the current owners, Mondelez International, has
even decided to make the brand international by launching it in other countries.

Cadbury, the company who launched the 5 star chocolate in the 1960s, has
always occupied a premier position worldwide in the chocolate and
confectioneries category. Holder of multiple Royal Warrants from the Queen of
England, Cadbury was established by John Cadbury in 1824. He was a tea, coffee
and drinking chocolate seller plying his wares at the Bull Street in Birmingham,
United Kingdom.

His business proved quite profitable, so he up-scaled his investment and


established a factory in Bridge Street to produce a variety of cocoa and chocolate
drinks.

His company primarily catered to the affluent section of the society, as the cost of
production was quite high. John’s brother Benjamin also joined the business in
1847 and in 1849 they displayed their first chocolate bars at a trade fair in
Birmingham.

While the credit for making the first ever chocolate bar goes to Cadbury’s
competitor, Fry, from the city of Bristol, both of them were instrumental in
making the currently common product a successful variety of chocolate-based
sweet in the market.

The Road to Success

The 1990s saw the rapid expansion of Cadbury through a combination of astute
leadership and introduction of new innovative products in the chocolate
confectionery market. Dairy Milk and Bourneville Cocoa was two of its early
products that brought fame and commercial success to the company.

Dairy Milk Chocolate was the first of its kind with a higher proportion of milk as
one of its primary ingredients. This was also the first instance of a company
mass-producing milk chocolate. In 1919, J. S. Fry and Sons, the main competitor
of Cadbury decided to merge, resulting in an amalgamation of many well-known
chocolate and confectionery brands.

By the 1930s, chocolate became affordable for most of Britain’s population and
Cadbury products accounted for the majority of the increased revenues earned
with the increased consumption.

Cadbury entered the Indian market in the year 1948 and was initially selling
imported chocolates. In the same year, the company was formally incorporated
by the newly independent country. Cadbury soon became the premier chocolate
and confectionery selling company of India & currently holds over 70% market
share in the category. With six manufacturing units in the country and regional
offices located at many major Indian cities, Cadbury has established a firm
foothold in the country offering several popular brands like Dairy Milk, 5 Star
Chocolate, Gems, Eclairs, Bournvita and Oreo among others.

Marketing Strategies and Campaigns:

The brand is very popular in the country owing to its unique blend of ingredients
imparting a distinctive taste to the product along with its attractive price points,
making it accessible to all economic categories. 5 star chocolate also works as a
loving gift to children and teens because of its attractive packaging and being
light on the pocket.

All these traits make the brand one of the longest-running and successful ones
being launched and managed by Cadbury in the country. Its popularity has even
led the product to be launched in other countries like Brazil, South Africa,
Malaysia and Philippines.

Cadbury operates in five major categories in the Indian confectionery market.


They are Chocolate Confectionery, Biscuits, Beverages, Candy and Gums. The
company has established popular brands in all the mentioned categories with
most of them being household names in the country. This was achieved with a
clever combination of high-quality yet affordable products and impactful media
advertisements. Some notable media advertisement campaigns of the 5 star
chocolate brands are discussed below.

Product:
The product strategy and mix in 5 Star marketing strategy can be explained as
follows:
5 Star is the one of the biggest chocolate brands in the Cadbury portfolio. The
parent company Cadbury has made significant investment in the product and
has launched the product more than10 times, in a new form every time, in a
span of around 15-18 years. The journey of 5 Star started in 1970s in India from
the basic product to energy bar in 1990s to the crunchy variant in the
millennium to the product’s rejuvenation in the form of Fruit and Nu and
Crunchy, Chewy, Chocolaty. Over the years, new variants have been introduced
as a part of its marketing mix product portfolio. The new 5 Star avatars have not
only changed the form of the product but the promotion method also. The Point
of Difference not only lies in it being a product of Cadbury’s but also in the
packaging of the product in the golden wrapper. Also, 5 Star is available in
different Stock Keeping Units (SKUs) in the bars of 22g, 45g, home pack of 200g,
etc.

Price:
Below is the pricing strategy in 5 Star marketing strategy:
5 Star has been targeted to cater the needs of low, medium income level
consumers though the company has a great milestone in the premiumisation
journey of the product. It is available in different SKUs and the price varies
accordingly. In India, the 22g bar is of ₹10, 5 Star 3D 44g bar is of ₹30, its 54 pc
box is of ₹269, home treats pack 200g is of ₹450, 5 Star 3D box of 24 units is of
₹690, etc. The price of the product has been kept low by the company but at the
sametime has struggled to get the value of the product right and manage the
price fluctuations.
Place:
Following is the distribution strategy of 5 Star:
5 Star has an excellent product availability owing to the extensive distribution
of its parent company. The company Cadbury’s has leveraged upon its
distribution channel and has used the 3 level distribution channel to make the
product’s presence throughout the country. 5 Star starts its journey from the
factory, then goes to warehouse, from warehouse it goes to either the
wholesaler or the distribution centre from where it goes to the retailer and then
finally to the customer. It can be bought from small kirana shops, big kirana
shops, general stores, super markets, Panwala Shop etc.
Since digitisation of the Indian economy is taking place at a rapid pace, the
product is nowavailable online at websites like Amazon and Flipkart.

Promotion:
The promotional and advertising strategy in the 5 Star marketing strategy is as
follows:
5 Star has a good brand recall owing to the efforts of its parent brand. The
company has used Above-the-Line channel, i.e., newspapers, television
advertisement, hoardings, etc. to create awareness of the product and persuade
the customers to buy the same. The message or the content has constantly kept
on changing since the launch of the product in India in 1969. Its target has
always been the youth. 5 Star was positioned and repositioned time and again
and challenged itself every time in the process. It has, simultaneously, also
ensured that the brand was recalled by the customers every time the new
campaign is launched. The journey map of positioning 5 Star started from being
“Deliciously Rich that You’d Hate to Share It” to indicatingtogetherness to giving
instant dose of energy to making you irresistible to being soft chew to getting
‘Lost in Taste’. The company did not endorse any celebrity and yet managed to
position the product successfully in the minds of the consumers. In a master
move, the company introduced two quirky characters into the advertisements
Ramesh and Suresh twice, first time forCadbury 5 Star and second time for
Cadbury 5 Star 3D. They became the brand icons for the chocolate for some time
for now and have increased the brand recall of the product manifold.
Hence this concludes the Cadbury 5 Star marketing mix.

About Cadbury 5 Star:


Cadbury 5 Star is a chocolate bar with caramel produced by Cadbury’s. It was
launched in 1969 in India. It has many variants in the form of energy bars, fruit
and nut, chewy caramel, creamy chocolate, etc. 5 Star is among the most
popular brands under the Cadbury’s umbrella brand.
Browse 4Ps Analysis of more brands and companies similar to 5 Star
Marketing Mix. TheMarketing Mix section covers 4Ps and 7Ps of more than
800 brands in 2 categories.
Conclusion

Thus, 5 star chocolate and its owner brand Cadbury have been successful in India
since their launch. For the youth of India, the distinctive 5 Star Chocolate Bar is
synonymous with many enjoyable moments spent with friends or family while
enjoying the product. Its many variations over the five decades of its existence
have proven to be successful and popular, thus adding to the longevity of the
brand as a whole.

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