Cadbury Dairy Milk STP and 4P's

By

Chanchal

Hari

Jayesh

About Cadbury

Cadbury Dairy Milk (CDM) was launched in 1905 in U.K

Cadbury began its operations in India in 1948 by importing chocolates

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

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

Global Chocolate Market

Global market is still dominated by Western Europe and North

America, emerging markets clearly represent the future. The

BRIC countries (Brazil, Russia, India and China) accounted for

55% of global confectionery retail growth in 2011.

Right now, Indians eat only 165 grams (less

than 6 ounces) of chocolate a year. The Chinese eat only 99 grams (3.5 ounces).

Indian Chocolate Market• India is the world's fastest growing market for chocolates.• Registering 15% annual growth between 2008 and 2012.• The Indian chocolate market is worth around Rs 5,562 crore.• 400 Kgs of chocolate consumption in India per minutes.• Low priced unit packs, increased distribution reach and new

product launches can be said to have fuelled this growth.

India chocolate industry will be

growing at the CAGR 23% by volume

between the years 2013-2018 and reach

at 3,41,609 Tons.

Segmentation

Demographic Segmentation

Income –

Premium products – Dairy milk silk, Dairy milk glow etc.

Basic products – Dairy milk, Dairy milk shots etc.

Behavioural Segmentation

Occasion Segmentation – Celebration, After Dinner as a dessert.

Targeting

Mass Targeting – Targets everyone

Positioning

Youth see Cadbury as a synonym for chocolate

In the initial stage it positioned itself as Spontaneous, special, carefree, real moments (Mazza aa gaya)

The tagline “Meethe mein kuch meetha ho jaaye” positions Dairy Milk as a dessert (sweet)

CDM Silk has been positioned to be about 'moments' -- moments when the chocolate is enjoyed, moments which are like silk.

Market Share

CDM has about 35 per cent share of the Indian chocolate market.

Nestle with its brands, Munch, KitKat, Bar One and Milkybar, has about 25 per cent.

Cadbury 5-Star has about 14 per cent; while Perk and Gems have 7 per cent each.

Cadbury Celebrations has 5 per cent and Bournville has about 1 per cent market share.

Product

The amount of milk content in dairy milk is highest when compared to its competitors

The components used are sugar, cocoa butter, vegetable fats, cocoa mass and emulsifiers

It comes in various sizes and targets all

The design of the chocolate is nearly the same throughout the world

Product Depth

Products in India

• Dairy Milk

• Dairy Milk Shots

• Dairy Milk Fruit & Nut

• Dairy Milk Roasted Almonds

• Dairy Milk Crackle

• Dairy Milk Glow

• Dairy Milk Wowie

• Dairy Milk Silk

• Dairy Milk Silk Fruit & Nut

• Dairy Milk Silk Carmelo

• Dairy Milk Silk Roasted Almonds

• Dairy Milk Silk Orange Peel

CDM Product Life Cycle

19052010

Life Cycle Extension

Sizes

Dairy milk - 14gm and 38gm Pack

Dairy Milk Silk - 60gm and 160gm pack

Dairy milk shots – 5gm, 20gm and 220 gm

Dairy Milk Glow – 240 gm

Price

It is priced same through out the country

It has adopted competitive pricing for basic products and premium pricing for other products

It is available in the price range of Rs 2 to Rs 600

Available in various sizes

Pricing

Type Quantity (Grams) Price (Rs)

Dairy Milk 60 40

Dairy Milk Silk 60 60

Dairy Milk Glow 60 150

Dairy Milk Wowie 60 45

Dairy Milk Shots 60 30

Dairy Milk Caramello 60 70

Distribution

• Cadbury product are sold to Wholesalers and retailers

• 2100 distributors

• 450000 retailers

• Available in all supermarkets and Kiryana stores

Business Operations5 Company owned Manufacturing Services•Thane•Pune•Gwalior•Bangalore•Himachal Pradesh

4 Sales office•New Delhi•Mumbai•Kolkata•Chennai

Corporate Head Office•Mumbai

Promotion

The media mix for any campaign for diary milk comprises of TV, radio, print, OOH and Internet

The advertisements are used to create an emotional bonding with the consumers

The promotions increase brand loyalty, encourage repeat purchases and at the same time increase market share

Cadbury spends approximately 45 crore on advertising.

Asli Swad Zindagi KaAdult chocolate consumption in India is very low the famous Cadbury ad, 'kuchh khaas hai hum sabhi mein' aimed to do this."

Pappu Paas Ho GayaThis ad aimed at positioning CDM as a sweet. In India people celebrate every happy occasion by distributing sweets. It was aimed to address the lower SEC in small towns. https://www.youtube.com/watch?v=xs-r6wJ7k0c

Kuch Meetha Ho JaayeTried to relate to the consumers culturally by positioning it as a sweet. All the ads are based on a joint family thus relating to India culturally.

Meetha Hai Khaana Aaj Pehli TaarekHai

Cadbury 'pays' a tribute to the salaried employees by giving them another reason to celebrate the payday.

Shubh Aarambh

Dairy Milk Silk"The obvious part of the communication is the self-indulgent product and the irresistibility of it

Out Of Home Advertising

Evolution of Promotion Techniques

Website

• The four flavors are distinctly & prominently displayed on the site.

• Clicking on any of the four icons leads to the related game, TV commercial, Social Buzz, recommendation of Mobile Apps & in the end a page to vote for the favourite flavour.

Facebook PromotionsThe first post which was about the favourite flavour elections of

dairy milk chocolates coincided with the general election-results day. Similarly the latter post added a pinch of humour & coincided with the IPL playoffs.

Packaging

S.W.O.T Analysis

Strength • Topmost chocolate provider in the

world• Brand loyalty• Low cost of production due to

economic of scale• Strong distribution network.

Weaknesses• Lack of market penetration• Relatively high Price Brand • Limited variety of products • Poor technology in India compared to

current international technologies

Opportunities• India CAGR 2013-18 is 23%• Population 1.27 Billion• Bring efficiency in logistics and

distribution with the help of technology.

• Introduction of foreign products in India.

Threats• Faced a worm scandal• In confectionery segment Threats from

company like Amul & Nestle.• Government Policies• Rise in raw materials cost cocoa beans,

dairy products & Sugar.