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Cadbury Strategies
Cadbury Strategies
1 Survival
For example, Cadbury set out two objectives for the development of
their chocolate, Fuse. These were:
When launching a product the company Cadbury’s had to make sure that
any new product in the snaking sector must establish points of
difference, creating a unique selling proposition (USP) i.e. a product
with unique appeal which is not shared by any of its competitors.
Referring back to the example of Fuse, Cadbury lost a lot of money
testing out the combination of various ingredients and more than 250
were combined before the recipe of the chocolate was finalised. As the
products are developed, Cadbury tests them to ensure that consumers
are willing to buy them.
Cadbury then promotes its products in various ways such as the use of
above the line promotion, which is where a product is advertised
through consumer media such as television, magazines, newspapers and
radio.
Target market
The caselet discusses the marketing communications strategies followed by Cadbury India Ltd. (CIL),
for its flagship brand Cadbury’s Dairy Milk (CDM) in India. The caselet describes how the marketing
communications strategy for CDM evolved over the years. From the mid-nineties, the company
decided to target the Indian adult through Cadbury’s Dairy Milk. The caselet also describes the efforts
made by CIL to manage the ‘worm controversy’ in October 2003 to maintain the brand image of the
company.
Issues:
Introduction
The prospective customers of Cadbury diary milk have changed from kids to adults including
every family member to celebrate any occasion with dairy milk.
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The satisfaction and euphoria that accompany the successful completion of any task is
incomplete without the mention of people who made it possible. So I take this as a great
opportunity to pen down a few lines about the people to whom my acknowledgement is due.
It is with the deepest sense of gratitude that I wish to place on record my sincere thanks
…………………………………………………., my project guide for providing me inspiration,
encouragement, guidance, help and valuable suggestions throughout the project.
I would also like to thank all my respondent for giving me their valuable time and information.
…………………..
TABLE OF CONTENTS
PREFACE
The success of any business entity solely depends on how effectively does it utilizes its optimum
resources and how soon does it make arrangements for the removal of the customer’s grievances.
Moreover, the company should always be ready to make necessary changes according to the
requirements in order to attract more customers so as to maintain a substantial growth in the
market. The topic given to me was:
I have tried to put my maximum effort to get the accurate statistical data. If there is any error or
any mistake in collecting the data, please correct it in the best way as I am still learning.
CHAPTER-1
INTRODUCTION
Introduction
The Cadbury’s Inc has taken the opportunity to offer us a broader view of chocolate category.
The Cadbury India’s 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”.
CHAPTER-2
OBJECTIVE
OBJECTIVE OF THE PROJECT
My main objective of the study on this project is to demonstrate the marketing strategies of
Cadbury India Ltd.
And to arrive at my findings, I have done few analyses:-
(a) SWOT Analysis
(b) PEST Analysis
And also 5 P’s of Marketing:-
• Product
• Price
• Physical Distribution
• Promotion
• Positioning
CHAPTER-3
RESERCH METHODOLOGY
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
Observation Method
The main tool used was, the questionnaire method, observation method has been continuous with
the questionnaire method, as one continuously observes the surrounding environment he works
in.
Procedure of research methodology
# Target geographic area was Delhi. NCR and Aligarh.
# To these geographical area questionnaire was given.
# Finally the collected data and information was analyzed and compiled to arrive at data the
conclusion and recommendations given.
Sources of secondary
Used to obtain information on , Cadbury and its competitor history, current issues, policies,
procedures etc, wherever required.
# Internet
# Magazines
# Newspapers
CHAPTER-4
ABOUT CADBURY
ORGANIZATIONAL STRUCTURE
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 today’s 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 merely as good as Swiss chocolate but better than the imported
milk chocolate.
Four years of hard work were invested in the project and in 1905 what was to be Cadbury’s top
selling brand was launched. Three names were considered Jersey, Highland Milk and Dairy
Maid. Dairy Maid became Dairy Milk and Cadbury’s 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 company’s best selling line and in the mid twenties Cadbury’s Dairy
Milk gained its status as the brand leader, a position that it has held ever since. Today more than
250 million bars of Cadbury’s Dairy Milk are made every year and sales reach over 100 million
Pound in value.
While advertising and label design have changed with fashion and considerable strides have been
made in manufacturing technologies, the recipe for Cadbury’s 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.
Cadbury Schweppes
Cadbury Schweppes plc, a global beverage and confectionary giant with annual sale of Rs
20,000 crores ,is the worlds number one non – cola soft drink company having bottling and
partnership operations in 14 countries and franchises of its brand in a further 86 countries around
the world. Its Hundred Percent subsidiary in India named Cadbury Schweppes Beverage India
(private) Limited (CSBIL) started operation in March 1995. The first brand was launched was
Crush which was later followed by Canada Dry, Schweppes Tonic Water, Schweppes Bitter
Lemon.
CSBIL with its franchise agreement with 19 bottling plants throughout India proposes to be a
household name. It has a policy for FOBOs (Franchise owned bottling operations ) unlike Coke
and Pepsi which prefer COBO,s (Company owned bottling operations). In FOBO the beverages
company only supplies the concentrate and the marketing support to build brand equity. The
other aspects like machinery, bottling line, land and distribution is the responsibility of the
bottler. As its CEO Mr. Ashok Jain says, “we are the software, they are the hardware”.
PRODUCT PROFILE
CHAPTER-5
SWOT AND PEST ANALYSIS OF CADBURY
SWOT ANALYSIS
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. Better market
penetration.
5. Second best manufacturing location throughout Cadbury Schweppes.
Weakness
1. Poor technology in India compared to current international technologies (Godiva, Mozart,
Fazer, 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 :-
Due to low cost and highest brand equity, it is success in India.
b) Minor :-
Globalization will bring in better brands for upper end of the market (Liest, Monarch, Godiva,
etc…).
Conclusion:-
Will lose market share with globalization but will remain brand leader.
Pest Analysis
T: Will have to reinforce technology to international levels once India is a “free” economy.
CHAPTER-6
AN INSIGHT ON 5 P’S OF MARKETING (CADBURY)
5 P’S Of Marketing
1 - PRODUCT
The average company will compete for customer by conforming to his expectation consistently.
But the winner will surpass them by constantly exceeding his expectation, delivering to his door
step additional benefits which he would never have imagined . Cadbury’s offer such product.
The wide variety products offered by the company include:
I. Chocolate & Confectionary
1) Dairy Milk
2) Fruit & Nut
3) 5 Star
4) Break
5) Perk
6) Gems
7) Eclairs
8) Nutties
9) Temptation
10) Milk Treat
II. Beverages
4 - Promotion
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 customer memory, communication must first ensure
exposure, grab his attention evoke his comprehension, grab his acceptance and then extract
retention competing with thousands of other units of communication trying to do the same.
Finding showed that the adults felt too conscious to be seen consuming a product actually meant
for children. The strategic response addresses the emotional appeal of the band to the child
within the adult. Naturally, that produced just the value vacuum 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, unselfish conscious, pleasure – seeking child
within him – and 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 who’s 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.
All ICICI’s ATM a message flashes on the screen as soon as customer inserts his ATM card. It
tells the customer that this would be good time to get out of his temptation since he/she is bound
to be alone. Something familiar is planned for phone-book as well. In cinemas, Cadbury has a
message on-screen just before the lights are dimmed to give them a chance to get their
temptations. There will also be after dinner sampling in restaurants – to begin with, 30 catteries
in Mumbai have been selected.
The next round of activity will include the wafer-chocolate Perk and the Picnic bar, which has
faced problems with its taste, because of the peanut it contains. Milk treat has also been launched
in a module bar form, just in time of Diwali gifting market. Éclairs has got potential for much
wide distribution, in a small sweets that airlines, hostels, and up market retail outlet offer to guest
and customers.
Ad spend in 2000 was about 14% of sales and the management said that plans to maintain as
spend at this level in the current year also.
Ad since any discussion today would be incomplete without mention ‘e’ word, the management
plans to tap this new channel of marketing. Beside three company
website(i.e.www.cadburyindia.com,wwww.bourvita.com,www.cadburygift.com) that the
company has launched, it had also entered into various marketing relationship with other portals,
specially targeted during festivals and events such as Valentines day , etc….
It’s a combination of spiffing up its key brand, researching and improving the newer products
that haven’t taken off, supported with high ad – spends that Cadbury hopes will see it emerges
stronger after the current slowdown, as well as expand the market.
5 - 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.
Today’s consumer demanding “more for less”, and the winner will be that super value
marketers…. Some of today’s 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 consumer’s long
standing perception of them…
Cadbury’s 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 Cadbury’s 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 the late 1980s. Symbolizing togetherness, 5 star was
originally targeted at teenagers. In June 1994, the company reworked the strategy for 5 star to
make it a source of energy. In fact, before the launch of Perk, 5 star’s energy bar positioning
made it a snacking chocolate.
3) Éclairs: competing in the chewable toffees segment. Éclairs was re-launched during the mid-
nineties with a new name, Dairy Milk Éclairs.
4) Gems: broadcasting Gems, though, didn’t prove to be feasible proposition for Cadbury.
Targeted at children under 12 years with ‘Gems Bond’ advertising. Cadbury decided to sell it to
teenagers with the ‘Smart Very Smart’ campaign. But now, the company is retargeting children
with its animated commercial. “Gems are the best brand to speak to children. Colorful chocolate
buttons appeal most to children and that is why Cadbury is re-targeting children.”
5) Crackle: it was the first Cadbury’s chocolate to have crunch in it. It was targeted as a funky
chocolate to add spark to life.
6) Perk: in September, 1995, Cadbury preempted the launch of Nestlé’s Kit-Kat by rushing a
new brand, Perk into the market. Positioned much further on the functional scale of 5 star, Perk
was meant to be light snack-product for subduing the first pangs of hunger.
7) Bournvita: positioned as tasty health drink. While its competitors concentrated only on health
aspect, Bournvita combined the nutritious value
with taste.
CHAPTER-7
MARKET SEGMENT AND MARKETING STRATEGIES OF CADBURY
The Breakthrough
Having decided to barter the distinctly use selfish values of sharing and caring for the
suspiciously self-centered one of self-expression, Cadbury’s people insisted that the rejuvenate
be enriched with compensation – and equally enduring – positive values: universal truths,
enduring human values, and universal moment of joy. To translate the brief into the commercial,
they decide to simply portray occasion of childlike-but not childish-behavior from adults,
without explicitly identifying adults as the target customer.
“They left the connection to be made by the customer” “In the process they were able to get
viewer involvement and high levels of empathy. Nowhere did they actually say, you’re an adult,
you can eat it. Because nobody wants to be told”. Thus it was that, the montage of the child in
the man-the old man kicking the football; the pregnant woman carving a chocolate; young girl
breaking into a spirit; the young man tossing a bar of chocolate at his sweet-heart departing in a
bus-was created.
That the consumption had to be liked before it could penetrate the cultural resistance to chocolate
consumption by adults was obvious. Taking a contrition stance, Cadbury decided to test the
commercial being devised by O&M’s creative team not for the tire battery of likeability,
comprehension, credibility and behavior modification – 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 his 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 consumer’s 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.”
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 O & M was 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. You could relate the sweetness of success of chocolate.
The ad draws attention to the actual eats experience.
The fourth in this series was the girl with on her hands. The ad focused on showing how the girl
relishes the Dairy Milk when she has mehandi on her hands. The idea behind this advertisement
was to show the nature of chocolate as an impulse – driven product. Post campaign saw a great
turn around. Dairy Milk transformed in to a young full brand full of zest. It came to be
recognized as an expression of spontaneity and in pulse.
The campaign succeeded in softening attitude towards chocolate and lifting then out of the ream
of kiddies / special occasion only. It embraced a wide range emotion all build around them that
chocolate means different things to different people at different times, but most importantly
chocolate is Cadbury.
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 broader
based, in the sense adults are an important target segment now. The reposting of Cadbury’s
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 Cadbury’s range – 5
Star, Gems, Éclairs, Fruit & Nut, Crackle, Nutties, Butterscotch & Tiffns – a new lease of life. In
other words, it facilitated the repositioning of Cadbury’s sub brands in the basket. Some of the
strategic clicked, while other did not quite take off.
The company is pushing the gifting segment, through occasion linked gifts. Chocolates
contribute to 64% of Cadbury’s turnover. Confectionary sales accounting for 12% of turnover is
contributed largely by Éclairs. The company attempted expanding its confectionary product
portfolio, with launch of sugar based confectionary goodly and fruits, without much success.
Cadbury also has a strong brand bornvita in the malted health drink category which account for
24% of turnover.
There exists an even larger unorganized market in the confectionary segment. Cadbury has 4%
of the market share in this segment. Leading national players are nutrine, Pary’s Ravalgoan,
Candico, Parle, Joyoco India and Perfetti, the MNCs such as Joyco and Perfetti have
aggressively expanded their presence in the country in the last few years.
Malted food drinks category consists of white drink and brown drink. White drinks accounts for
almost two third market of the 82,000 for market south and east are large market for drinks,
accounting for largest proportion of all India’s sale. Cadbury’s Bourn Vita is leader in the brown
drink coca based segment in the white drink segment Smith Kline’s Horlicks in the Nestle Milo ,
GCMMF nitramul and other Smith Kline brand Boost, Maltova and Viva Cadbury bold 14%
market share in food drinks segment.
Despite tough market condition and increased competition Cadbury managed to record a double
digit (11%) top line growth in 2000. The company achieved a volume growth of 5.2%. This was
achieved through innovative marketing strategies and focused advertising campaign flagship
brand Dairy Milk.
Net profit rose sharply by 41.8% to Rs. 520 million. Reduced material and energy cost and
tighter control over working capital over working capital and capital expenditure enabled the
company to improve the profitability. Company added 8 million new consumers and saw its
outlets grow to 4.5 lakhs and consumer to 60 million. In the food segment, Britannia is the leader
brand with 21% among those who expressed an opinion saying that they like advertising for the
brand Cadbury was clearly No.2 with 18% to which CDM throw in its weight with 13% and perk
with 4%. For the Chocolate Company, Khane Walo Lo Ko Khane Ka Bhanna and the Karwa
Cauth, Sports are clear winners.
Tied for the brand place are Amul, Parle and south based Arun Le Gram with 5% each.
Disappointment among bid brands Kissan and Maggi and Kwality Walls (1%) each.
Cadbury’s 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, multinutrition value of milk along with the pinch of fun and
excitement. The kinds formally associate with Cadbury chocolate offering.
Temptation :- It is aimed at the niche “international chocolate “ segment of the chocolate market
a segment upgraded from brands such as Cadbury’s to premium international offering such as
Tolerance, Lindit and Hersheys. Roughly 5%of the total domestic consumption expected to grow
to some 10%. This segment is too good to miss out on.
ThePreviousCadbury’s range available in India did not offer consumer an option to upgrade to
international chocolate within the Cadbury’s fold. Temptation is an attempt to lug niche, priced
Rs. 30.
Future Strategy
In the branded impulse market, the share of chocolate in 6.6% and Cadbury’s 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 Éclairs. The company is today the
second best manufacturing location of Cadbury’s 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 development. 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 improve logistic and distribution competitiveness
• Utilizing mass media to create and maintain brands.
• Expand the consumer base. The company has added 8 million new consumer in the current year
and how has consumer base of 60 million although the growth in absolute numbers is lower than
targeted, the company has been able to increase the width of its consumer base through launch of
low priced products.
• Improving distribution quality by addressing issues of product stability by installation of visi
coolers at several outlets. This would be really effective in maintaining consumption in summer,
when sales usually dip due to the fact that the heat effects product quality and thereby
consumption.
• The above are some steps being taken internally to improve future operation and profitability.
At the same time the management is also aware of external changes taking place in the
competitive environment and is taking steps to remain competitive in the future environment of
free imports, lower barrier to trade and the advent of all global players in to the country. The
management is not unduly concerned about the huge deluge of imported chocolate brands in the
market place.
It is of the view that size of this imported premium market is small to threaten its own volumes
or sales in fact, the company looks at the tree important as an opportunity, where it could
optimally use the global Cadbury Schweppes portfolio. The company would be able to not only
provide greater variety, but it would also be more cost effective to test market new product as
well as improve speed of response to change in consumer preference through imports. The only
concerns that the company has in this regard is the current high level of duties, which limit the
opportunity to launch value for money products.
CHAPTER-8
CADBURY SUCCESS STORY
The Cadbury Story
Cadbury’s success story
In 1984, John Cadbury founded U.K. company with one aim: - to create the highest quality
chocolate. By1969, when Cadbury merged with the soft drink giant. Schweppes, Cadbury brands
were already famous all around world.
Today Cadbury’s production are enjoyed in 120 countries, with 40 chocolate confectionary
brands, Cadbury dominated markets as far as the U.K. and Australia that’s why Cadbury have
been dubbed “The world’s master chocolate makers”.
The secret of Cadbury’s success
What is the secret of Cadbury’s continuing success first there’s the careful selection of the finest
coca beans from West Africa, as well as tasty hazel nuts from Turkey and the fine sheet and
choicest natural ingredient available to us anywhere.
Finally there’s skillful marketing Cadbury always takes extreme care in selecting and marketing
the right range of product in every cause.
The right product, the right partners, the right marketing, the promotional back up and the right
employees. These are the ingredients in Cadbury’s latest recipes for success.
Right from the stand Cadbury Dairy Milk Chocolate success has been based on these factors:-
Quality¬
Value for money¬
Advertising¬
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 children’s product, they exercised a strong influence on the children’s
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 perceived as
“kiddy” product and certainly not part of the repertoire for products consumed socially.
Chocolate consumption among adults evoked feeling of self indulgence and guilt.
Chocolates seemed to offer virtually no significant positive and certainly no overt psychogenic
benefits. Food and nutritive values associated with chocolates were low. And, in fact they were
categorized as a hazard, being responsible for obesity, dental and respiratory problems.
Brands images were undifferentiated and the category had low saliency, “can do without”.
Purchase was almost always planned and triggered by motives ranging from celebration, bribing
and reward to gifting. For an impulse product category such as chocolates, this was likely to limit
market growth. This conditioning and social learning about chocolates was restricting
consumption among adults as well as driving them to restrict children’s consumption.
There was evidence to suggest the need for shifting focus from child as chocolates consumers to
adult’s communication, hitherto, had always addressed adults as purchasers rather than
consumers. Communication had positioned chocolates for specific situations, thus imposing
boundaries for the growth of the market. Emphasis on casual everyday situation could help
promote core consumption opportunities.
For low involvement product categories like chocolates which offer emotional and sensory
benefits, it is suggested that communication is most effective with repeated likeable ads
promising unique and authentic emotional benefit a shift from portraying everyday moments as
an opposed to special ones.
The radical change however was focus on bringing out the spontaneity in adults. And, finally
CDM a symbol of manipulation was henceforth to symbolize fun, enjoyment and good times.
The mnemonic of a glass and half milk was to reinforce the goodness of milk and cue
physiological benefits.
The only variation was in the Rituals, where communication had shifted from, and special
occasion to every moment. A strong volume growth was witnessed in the early 90’s when
Cadbury, repositioned chocolates from children to adult consumption. The biggest opportunity is
likely to stem from increasing the consumer base.
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 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 company is dependent on a single category chocolates to
drive growth. Effect in expanding confection any portfolio have also not yielded desired results.
The management has declared its intention to focus only on Éclairs (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 claims which have supported
growth in the past. While new launched such as milk chocolate and Perk slims have been doing
well, the management expects that dairy milk would continue to be the central driving force in
Cadbury’s growth and that all other brands would remain peripheral to this central brand.
POSITION OF THE VARIOUS BRANDS IN THE MARKET HAS BEEN LISTED BELOW
Cadburys brands Positioning Nestle’s brands Positioning
Cadbury Dairy Milk
Fruit n Nut
Creamy bar
Roast Almond
Crackle
Bournvita
“The Real Taste of Life”
Position as adults as an impulse any time purchase – self expression values attached Classic Milk
Chocolate
Bar One Positioned as an affordable enriched milk chocolate
CHAPTER-9
DATA ANALYSIS
CONCLUSION
This company project has demonstrated “CADBURY’S 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 possible to see the success of Cadbury’s in its indorse its strong potential to
continue to do well.