TITLE OF THE PROJECT Name of the Researcher SANTOSH KUMAR MATADIN GUPTA (Bachelor of Management Studies) Academic Year – 2010-2011 Under the Guidance of MS. SUSHMITA MUKERJI UNIVERSITY OF MUMBAI’S ALKESH DINESH MODY INSTITUTE FOR FINANCIAL AND MANAGEMENT STUDIES 1
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TITLE OF THE PROJECT
Name of the Researcher
SANTOSH KUMAR MATADIN GUPTA
(Bachelor of Management Studies)
Academic Year – 2010-2011
Under the Guidance of
MS. SUSHMITA MUKERJI
UNIVERSITY OF MUMBAI’S
ALKESH DINESH MODY INSTITUTE FOR FINANCIAL AND
MANAGEMENT STUDIES
1
University of Mumbai’sAlkesh Dinesh Mody Institute For Financial
and Management Studies
Certificate
I, Professor MS. SUSHMITA MUKERJI hereby certify that Mr. /Ms. SANTOSH KUMAR MATADIN GUPTA, TYBMS Student of Alkesh Dinesh Mody Institute for Financial and Management Studies, has completed a project titled “CADBURY COMPANY WITH RESPECT TO ITS MARKETING STRATEGY ”, in the academic year 2010. The work of the student is original and the information included in the project is true to the best of my Knowledge.
Signature of Guide with Date:-
2
Declaration
I, Mr. /Ms. SANTOSH KUMAR MATADIN GUPTA, TYBMS Student of Alkesh
Dinesh Mody Institute for Financial and Management Studies, hereby declare that I have
completed the project titled “CADBURY COMPANY WITH RESPECT TO ITS
MARKETING STRATEGY” during the academic year 2010.
The report work is original and the information/data included in the report is true to the
best of my Knowledge. Due credit is extended on the work of Literature/Secondary
Survey by endorsing it in the Bibliography as per prescribed format.
Signature of the Student with Date
Name of Student
3
University of Mumbai’sAlkesh Dinesh Mody Institute For Financial
and Management Studies
Name of Student: SANTOSH KUMAR MATADIN GUPTA
Roll Number: 27
Title of the Project:
CADBURY COMPANY WITH RESPECT TO ITS
MARKETING STRATEGY
Signature of Student with date:
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1. Executive Summary:-
Cadbury Schweppes is the world’s largest confectionery company. They
manufacture, market and distribute branded chocolates, confectionery and beverages that
bring smiles to millions of consumers across 180 countries. With origins stretching back over
200 years, today their products - which include brands such as Cadbury, Schweppes, Halls,
Trident, Dr Pepper, Snapple, Trebor, Dentyne, Bubblicious and Bassett - are enjoyed in every
country and around the world. Cadbury Schweppes employs over 70,000 people worldwide.
The heritage started back in 1783 when Jacob Schweppes perfected his process for
manufacturing carbonated mineral water in Geneva, Switzerland. And in 1824 John Cadbury
opened a shop in Birmingham selling cocoa and chocolate. Cadbury has been synonymous
with chocolate since 1824; the most famous being Cadbury Dairy Milk; first launched in
1905, and still a market leader today. These two great household names merged in 1969 to
form Cadbury Schweppes plc.
Cadbury is the leader in the UK chocolate market, and is the confectionery division of
Cadbury Schweppes plc. Cadbury's Asia-Pacific sales are smaller compared to Europe and
US. Asia Pacific sales accounted for only 18 per cent of the group's revenue of $7427 million
dollars in 2006. The mature Japan and Australia markets have generated most of the firm's
sales in the region but younger, fast-growing markets are becoming more important for the
group. Cadbury currently makes around one third of its total Asia Pacific sales from
'emerging markets', of countries like China, India, Malaysia, Singapore etc.
Cadbury launched Boost Guarana in 2001 in U.K, a new chocolate bar, which with
proven energy stimulation properties. Containing Guarana, a South American plant extract
known to native Indians for centuries, the product was launched to meet the consumer need
of stimulating the mind and complement a busy lifestyle. Cadbury is planning to launch
BOOST GUARANA in the vibrant Singapore chocolate market.
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Contents of Cadbury:
Serial. no
Topic Page. No
1 EXECUTIVE SUMMARY 5
2 INTRODUCTION 7
3 INTERSTING FACTS OF CADBURY 8
4 HISTORY OF CADBURY 9
5 PRODUCTS OF CADBURY WHEN THEY LAUNCHED IN MARKET
11
6 EXPANSION AND GROWTH OF CADBURY 12
7 OVER ALL TURN OVER 14
8 CHALLENGES OF CADBURY 16
9 CADBURY IN THE ENGLAND AND OTHER EUROPEANS COUNTRIES. 18
10 CADBURY ASIA 19
11 CADBURY ADVERTISING TIMELINE THEIR PRODUCTS 25
12 PRODUCTS OF CADBURY 27
13 MEANING OF MARKETING STRATEGY 34
14 MARKETING STRATEGY OF CADBURY 36
15 SWOT ANALYSIS 42
16 5 P’S OF CADBURY 45
17 ADVERTISING THEIR PRODUCTS IN DIFFERENT WAYS
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18 SEGMENTATION,TARGETING,POSITIONING 56
19 BRAND AMBASSADOR 61
20 COMPETITORS OF CADBURY 63
21 CONCLUSION 65
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INTRODUCTION
Cadbury is a company with a long history in Australia and a passionate commitment
to making everyone feel happy. Check out what we are doing around the world and search
for where to buy our products. Find out what our most common queries are, and ask some of
your own if you like.
Cadbury India can be termed as one of the best performing FMCG companies today.
Unlike its peer group, which is more of complete food companies, Cadbury is a very niche
player with a dominant position in Indian Chocolate Confectionery market. This makes it
different & more successful in comparison with the peer companies. Now is the period of
slowdown in the economy, where FMCG companies are the first ones to be hit upon.
Reduction in the real income of the consumer has made its direct impact on the top –line
growth of the company. Still, Cadbury has been able to drive its bottom- line growth. The
reason for the success is the Corporate Governance practiced in the organization. We update
its growth, progress, and current valuation in this report.
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 Intec 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”.
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INTERSTING FACTS OF CADBURY
1) Cadbury was the first company to include pictures instead of printed text on chocolate
boxes.
2) George Cadbury didn’t want to take mothers away from their children, so he developed a
company rule that women had to leave work when they got married. Each married woman
was given a bible and a carnation as wedding gifts.
3) In 1886 Cadbury became one of the first firms to have dining rooms with kitchens and
food for sale.
4) A miniature metal animal (elephant, penguin, owl, fox, duck, squirrel, rabbit or turtle) was
given away with specially designed cocoa tins in 1934. In the same year, Cadbury's tokens,
which came with packs of cocoa, could be redeemed for lamps, kettles and saucepans.
5) So many children joined Cadbury’s Coco cub Club that it had 300,000 members in 1936.
6) Cadbury’s World Visitor Center opened in 1990, welcoming 400,000 visitors in its first
year.
7) Cadbury launched a Get Active program in 2003, helping 10,000 teachers get in shape.
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History of Cadbury
Cadbury, the global leader in the chocolate confectionery market, began in 1824
when a young Quaker named John Cadbury opened up a shop in Birmingham. John sold
coffee, tea, drinking chocolate and cocoa at his shop. Believing that alcohol was a main cause
of poverty, John hoped his products might serve as an alternative. He also sold hops and
mustard. Like many Quakers John had high quality standards for all of his products.
At that time in England, Quakers were prohibited from attending university, since it
was affiliated with the established church, and their pacifist beliefs kept them from joining
the military. With few opportunities available, Quakers often went into business-related
fields and/or devoted their time to missions of social reform.
By 1842 John was selling 11 kinds of cocoa and 16 kinds of drinking chocolate. Soon
John’s brother Benjamin joined the company to form Cadbury Brothers of Birmingham. The
Cadbury brothers opened an office in London and received a Royal Warrant (one of many) as
manufacturers of chocolate and cocoa to Queen Victoria in 1854. Six years later the brothers
dissolved their partnership because of John’s failing health and the death of his wife.
They left the business to John's sons George and Richard. John devoted the rest of his
life to social work and died in 1889. George and Richard continued to expand the product
line, and by 1864, they were pulling a profit. Cadbury’s Cocoa Essence, which was
advertised as "absolutely pure and therefore best," was an all-natural product made with pure
cocoa butter and no starchy ingredients. Cocoa Essence was the beginning of chocolate as we
know it today. The brothers soon moved their manufacturing operations to a larger facility
four miles south of Birmingham. The factory and area became known as Bourneville.
With Cadbury’s continued success in chocolate, George and Richard stopped selling
tea in 1873. Master confectioner Frederic Kinchella was appointed to share his recipe and
production secrets with Cadbury workers. This resulted in Cadbury producing chocolate
covered nougats, bonbons delices, pistache, caramels, avelines and more.
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Cadbury manufactured its first milk chocolate in 1897. Two years later the
Bourneville factory employed 2,600 people and Cadbury was incorporated as a limited
company.
During World War I, more than 2,000 of Cadbury’s male employees joined the
Armed Forces. Cadbury supported the war effort, sending warm clothing, books and
chocolate to the soldiers. Cadbury supplemented the government allowances to the
dependants of their workers. When the workers returned, they were able to return to work,
take educational courses, and injured or ill employees were looked after in convalescent
homes. During this period trade overseas increased, and Cadbury opened its first overseas
factory near Hobart, Tasmania. The next year Cadbury merged with JS Fry & Sons, a past
market leader in chocolate.
Cadbury supported the war effort during World War II by converting parts of its
factory into workrooms to manufacture equipment like milling machines for rifle factories
and parts like pilot seats for Defiant fighter planes. Workers plowed football fields to grow
crops, and the Cadbury St. John’s Ambulance unit helped people during air raids. Chocolate
was considered essential for the Armed Forces and civilians. Rationing finally ended in 1949.
In 1969 Cadbury merged with Schweppes to form Cadbury Schweppes. Schweppes
was a well-known British brand that manufactured carbonated mineral water and soft drinks.
The merged companies would go on to acquire Sunkist, Canada Dry, Typhoo Tea and more.
Schweppes Beverages was created, and the manufacture of Cadbury confectionery brands
was licensed to Hershey.
Today Cadbury Schweppes is the largest confectionery company in the world,
employing more than 70,000 employees. In 2006 the company had over $15 billion in overall
sales. In March of 2007, Cadbury Schweppes announced that it intends to separate its
confectionery and beverage businesses. With almost 200 years in the business, Cadbury
Schweppes will continue to prosper in the coming decades.
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 (Cadbury Dairy Milk) 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
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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
visit 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
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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.
SWOTS ANALAYSIS OF CADBURY
1) Strengths:-
• The company has an already large established business in the Indian market. Since1824, the
company has established itself as a world leader in the confectionary market. It has operated
in India since 1948. In India it has about 70% of the confectionary market. In line with its
vision, the company has been striving to Bethe world leader in the confectionary industry.
Through innovation and strategic marketing, the company has acquired about 10% of the
world confectionary market (Laura, 2008).
• The company has good market reputation. With strong brands in the market, the company is
well positioned in the market. In the Indian market Cadburys has strived to build a good
market reputation. This has worked positively for its products. It is on this good reputation
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that the market can embark on introducing the new brand in the market. Cadbury India was
ranked the 5th most respected Indian company by Business world magazine in 2007 (Laura,
2008).
• The target market is also quite large. With the female population marketing more than 56
percent of the Indian population, there is a wide target market for the product. The Indian
chocolate market has been recording growth in the recent past and there are future prospects
of growth. Therefore the target market is slowly expanding (Cadbury, 2008).
2) Weakness:-
• The target population is quiet large and there are fears the demand for the product may
outdo the capacity of the company to satisfy the demands of the market. It is still not clearly
established the rate of growth of the product in the market but there are expectation that the
product will record a high growth rate. This means that the company will need to increase its
production capacity in order to match the rate of growth of the market (Laura, 2008).
• The company has not been able to establish a distribution network in the country that
matches the demands of the market. In this case the company has not established a
distribution network to the interior due to infrastructural development issues (Cadbury,
2008).
• Banking on the success of the other brands in the market may have negative effects on the
introduction of the new brand in the market since the products will be targeting different
markets (Cadbury, 2008).
3) Opportunities:-
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• There company is introducing the brand in a less competitive market. This is unique
opportunity for the company. A more competitive market becomes difficult to introduce a
new brand because there are already other companies’ which are likely to bring in
competition (Cadbury, 2008).
• The company can introduce the product in the market in unique way. With the growing
importance of beauty shows, the company can host beauty competition in order to help the
target market identify with the product. This will introduce the product in the market in
unique way. The company can also host other events like sports or engage in corporate social
responsibility activities like girl child education to help the target market identify with the
product more (Laura, 2008).
• The company can use a wide range of marketing strategies which will lead to the overall
growth of the product in the market. The Indian advertising market has been growing at a
rapid rate which means there will be an array of opportunities for the growth of the market.
There are many advertising strategies for the company in the Indian market (Cadbury, 2008).
4) Threats
• There is threat of entry of other products in the market. In this case there are threats of entry
of new products in the market which will increase the level of competition in the market.
There are other companies which are likely to introduce the same products in the market
once there is success of the initial product (Cadbury, 2008).
• There is a threat of change of the current external environment which is likely to alter the
nature of the market. For example change in the taxing regime, Government laws regulating
the industry, and other factors which are likely to impact negatively on the industry
(Cadbury, 2008).
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5 P’S Of Cadbury
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
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6) Gems
7) Éclairs
8) Nutties
9) Temptation
10) Milk Treat
II. Beverages
III. Food Drinks
1) Bourn vita
2) Drinking chocolate
3) Cocoa
2 – 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
Cadbury’s 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.
Cadbury’s 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
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5 Star Rs. 10
Fruit and Nut Rs. 22
Gems Rs. 10
Break Rs. 5
Nutties Rs. 18
Bournvita (500 gm) Rs. 104
Drinking chocolate Rs. 50.
3 - Physical Distribution – “Place” Distribution Equity: It takes much more time and effort to build, but once built,
distribution equity is hard to erode. The fundamental axiom of Indian consumer market is
this: You can set up a state-of –the-art manufacturing facility, hire the hottest strategies on
the block, swamp prime television with best Ads, but the end of it all, you should know how
to sell your products.
The cardinal task before the Indian market in managing is to shoe-horn its product on retail
shelves. Buyers are paying for distribution equity not brand equity and market shares.
India – 1 billion people, 155 million household has over 4 million retail outlets in
5351 urban markets and 552725 villages, spread cross 3.28 million sq. km. television has
already primed and population for consumption, and the marketer who can get to the to the
consumer ahead of competition will give a hard – to – overtake lead. But getting their means
managing wildly different terrains-climate, language, value system, life style, transport and
communication network. And your brand equity isn’t going to help when it comes to tackling
these issues.
Own distribution network consist of clearing and forwarding (C&F) agents &
distribution stockiest. This network of distribution can either contact wholesalers and which
in turn retailers or the distributors can contact to the retailers directly.
Once the stock product reaches retailers, the prospective customers can have access to the
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product. Cadbury’s distributes the product in the manner stated above. Cadbury’s
distribution network has expanded from 1990 distributors last year to 2100 distributors and
4,50,000 retailers. Beside use of TI to improve logistics, Cadbury is also attempting to
improve the distribution quality. To address the issue of product stability, it has installed visit
colors at several outlets. This helps in maintaining consumption in summer when sales
usually drops due to the fact that the heat affects product quality and thereby off takes.
Looking at the low penetration of the chocolate, a distribution expansion would itself being
incremental volume. The other reason is arch rival Nestle reaches more than a million
retailers.
This increase in distribution is going to be accompanied by reduction in channel costs.
Cadbury’s marketing costs, at 18% of total costs, is much higher than Nestlé’s 12% or even
pure sugar confectionery major Parry’s 11%. The company is looking to reduce this parity
level. At Cadbury, they believe that selling confectionery is it like selling soft drinks.
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.
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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 stiffing 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
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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.
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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 stars were positioned on an
emotional platform in India during the late 1980s. Symbolizing togetherness, 5 stars was
originally targeted at teenagers. In June 1994, the company reworked the strategy for 5 stars
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 less than 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.
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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 stars,
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.
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ADVERTISING THERIR PRODUCTS IN DIFFERENT WAYS
The sales of product in the market depend upon advertising which is one of the
factors that boosts the sales of the product in the market. Advertising can be in the form of
print advertising, banner advertising, advertising on Television, radio advertising and of
course advertisement on Internet. Over the last several years internet has emerged as a strong
and successful platform for advertising a product by using different ways and methods to
attract the attention of the customers. There are various ways to capture the thought process,
which runs in the minds of the customers, and it is done on a regular basis through the
medium of advertising. The purpose of running an advertising campaign is to generate the
interest of new customers into the product, and to sustain the interest of regular customers in
the product, so that there mind remains focused on the brand name and image of the product.
Thus the advertisement of the same product can be seen simultaneously at many
different places. Cadbury's advertisement can be seen during the late evening hours when
different soap opera are broadcasted. Then on switching on the laptop to check the emails
received during the day, the advertisement of Cadbury can be seen again, but of course, this
time the form of advertisement i.e. size of advertisement is small, it looks like a teaser and
the medium is different, here internet playing an important role. At weekend while going
through the shopping mall the same advertisement of Cadbury can be seen highlighted in big
posters and banners, giving more prominence to brand name, the product name and in order
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to attract the customer's attention, theme of the advertisement also been a part of the poster,
which also gets highlighted.
Different brand names, different products and different ways of promoting the
product.
For Example:-
When Sun feast biscuits were initially launched, there was an aggressive
advertisement campaign that was been done for the Sun feast biscuits by putting stalls at
different places, where maximum number of customers come regularly, like for instance
there was a stall of Sun feast biscuit at an exhibition which was been held on a ground, where
there were number of different stalls and at the end when the customers are about to leave the
exhibition there are different food stalls and refreshment stalls.
Amongst the various different stalls in the exhibition, one stall was that of Sun feast
biscuits and there were sizable number of customers, who were keen and eager to know more
about Sun feast biscuits and some were even purchasing the biscuits.
A few days later the same stall was seen at a shopping mall and now the number of
customers were more than before. The reason being advertisements of Sun feast biscuits
been shown on TV. Later on Shah Rukh was roped in for the advertisement of Sun feast
biscuits and now Sun feast is a known to a large number of customers. Thus initially for any
brand name it is important to gauge and know the customer's reaction, their opinion and
views, and then slowly introducing the product in the market for the customers on a regular
basis.
So advertising here also plays a major role, banners and dangles must be attractive at
the time of initial launch of the product.
While advertising on the internet there are many customers, who visit the Cybercafe
and obviously they also comes across the advertisements. So there are different ways to grab
the attention of these customers. Many times prominent websites like MSN, Yahoo and
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other big names related to websites are roped in and then there is a different format which is
used to make sure that the customers make a note of the advertisement and pay attention to
the product details. Like for instance there is a Contest which is been conducted wherein the
customer will have to fill in the small form which requires his Full Name, mobile number,
Address and email ID. Once these details are filled in the customer has to make sure that he
has given the correct answer to the question and then submit the form. This is where
Cybercafe customers are concerned.
Many a times during movies and during cricket matches there are online contests,
which are conducted where the customer has to select the right answer by clicking on one of
the four different options provided to him i.e. A, B,C and D and then SMS the right answer
on the given mobile number. There are mobile compaines who have conducted these kind of
contests, recently MicroMax has done this contest during cricket matches.
Thus customers are always there, each individual customer has his own purchasing
capacity, but when it comes to decision making by the customer with respect to brand names
many times advertising plays an important factor in the process of purchasing the product.
This happens at the time when the customer makes a final decision.
Many brand names re-launch their products in the market depending upon the
previous reaction received and upon the fact that what were the additional features that were
required in the product because of which sales dropped.
It is important that the customer knows about different brand names irrespective of
the fact, which product, he buys at the end of the day. This is where advertising and
promoting a product in the market plays a dominant role.
Media Advertising- Use of available media channels, meaning cinema, TV, radio,
press and the internet. In other words the Cadbury should focus on the media through which
it reaches its primary target market-young people of age 16- 35. During the pre launch
campaign Cadbury should not address the controversy; however it should make it clear that
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the product is not suitable for age below 15 and not advisable for pregnant women. This way
the competition will keep their mouth shut and their will be no post launch negativism in
Singapore. This will be done a month before the launch.
Segmentation, Targeting, and Positioning
Segmentation, targeting, and positioning together comprise a
three stage process. We first (1) determine which kinds of customers exist, then (2) select
which ones we are best off trying to serve and, finally, (3) implement our segmentation by
optimizing our products/services for that segment and communicating that we have made the
choice to distinguish ourselves that way.
Segmentation:-
It involves finding out what kinds of consumers with different needs exist. In the
auto market, for example, some consumers demand speed and performance, while others are
much more concerned about roominess and safety. In general, it holds true that “You can’t
be all things to all people,” and experience has demonstrated that firms that specialize in
meeting the needs of one group of consumers over another tend to be more profitable.
Generically, there are three approaches to marketing. In the undifferentiated strategy,
all consumers are treated as the same, with firms not making any specific efforts to satisfy
particular groups. This may work when the product is a standard one where one competitor
really can’t offer much that another one can’t. Usually, this is the case only for
commodities. In the concentrated strategy, one firm chooses to focus on one of several
segments that exist while leaving other segments to competitors. For example, Southwest
Airlines focuses on price sensitive consumers who will forego meals and assigned seating for
low prices. In contrast, most airlines follow the differentiated strategy: They offer high
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priced tickets to those who are inflexible in that they cannot tell in advance when they need
to fly and find it impractical to stay over a Saturday. These travelers—usually business
travelers—pay high fares but can only fill the planes up partially.
Targeting:-
In the next step, we decide to target one or more segments. Our choice should
generally depend on several factors. First, how well are existing segments served by other
manufacturers? It will be more difficult to appeal to a segment that is already well served
than to one whose needs are not currently being served well. Secondly, how large is the
segment, and how can we expect it to grow? (Note that a downside to a large, rapidly
growing segment is that it tends to attract competition). Thirdly, do we have strengths as a
company that will help us appeal particularly to one group of consumers? Firms may already
have an established reputation. While McDonald’s has a great reputation for fast, consistent
quality, family friendly food, it would be difficult to convince consumers that McDonald’s
now offers gourmet food. Thus, McD’s would probably be better off targeting families in
search of consistent quality food in nice, clean restaurants.
Positioning :-
The term “positioning” is widely used within the marketing and advertising
communities today, and its meaning has expanded beyond the narrow definitions of Trout
and Ries. Positioning is often used nowadays as a broad synonym for marketing strategy.
However, the terms “positioning” and “marketing strategy” should not be used
interchangeably. Rather, positioning should be thought of as an element of strategy, a
component of strategy, not as the strategy itself.
The term “positioning” is, and should be, intimately connected to the concept of
“target market.” That is, a brand’s positioning defines the target audience. For example, an
airline might position itself against other airlines, which defines the target audience as airline
travelers. Or, it might position itself against all modes of transportation between two
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destinations, which then defines the target audience as all travelers between those two
markets. The second positioning reaches out to a much larger target audience.
Segmentation of Cadbury:
Right now Cadbury’s new advertisement campaign is doing the rounds over the
television. “Meetha hai khana,aaj pehli tareek hai” is the tagline that the chocolate-giant has
come out with. It tries to bring forth the excitement, which lies in the minds of the general
public as they wait for the first date of each month on the calendar. The monthly salary
stashed in their hands enables them to celebrate and rejoice by spending it on Cadbury’s
Dairy Milk.
Cadbury’s Dairy Milk has come out with such memorable ad-campaigns, which settled into
the hearts of everyone.
The story starts with “Once upon a time in 1948…” when Cadbury entered the Indian
market. It originated from a town in the United Kingdom, Bournville (also the name of its
recently launched high-end chocolate) in 1905.
As the Cadbury’s official web site suggests, its journey in India has been an eventful
one. In the early 1990s, it tried to cater to the sweet tooth of the children. Those days they
steered the market and took control over the company’s major market share. However, the
strategy changed by letting out the secret that “everyone has a child inside “ and thus
everyone craves for the taste of chocolate. Cadbury strategies went through a considerable
change. It now catered from children to adults and from chocolate to mithai. As the tagline
goes “Khane walon ko kahne ka bahana chahiye”.
The hole-in-one for the company was when it identified sweets to be a very integral
part of the Indian culture. It made sure that the festive and jubilant moods of the society that
had paved the way for kilos and kilos of mithai, now made way for a large number of
Cadbury’s.
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Meetha did to Cadbury’s what thanda had done for Coco-Cola. Both helped them
crawl their ways through into hearts of the rural population of the country, which had an
untapped and astounding potential.
The advertisement campaign of Amitabh Bachchan, dressed up as a villager, proudly
announcing that his “daughter-figure” won beauty contests for cattle, brought out the laughs
and struck a chord with the same segment of people.
Later came the campaigns of “Pappu paas ho gaya” acknowledged the market
potential for college-going youth. The treats for passing exams were now a Cadbury instead
of a mithai.With Kuch Meetha Ho Jaye, we knew Cadbury’s was now a desert craving as
well as a popular gift-item for festivals such as Raksha Bandhan and Diwali. Cadbury’s also
diversified its range of products with Wowie(with Disney characters for kids),Crackle, Fruit
and Nut(variations of the Dairy Milk),Bournvita(health drink)Deserts,Perk(wafer ingredient)
and éclairs(toffee segment).
Cadbury’s today holds 30 per cent markets share in the confectionaries industry and sells
around 1 million bars a day.
Targeting of Cadbury
Cadbury is looking to attract millions of new customers by shifting its strategy to focus on
low-income consumers. The British candy maker, which has been in India for more than 60
years and dominates the chocolate market, is making candy affordable to this massive
untapped segment with products such as Cadbury Dairy Milk Shots--pea-sized chocolates,
sold two to a package, for two rupees, or about four U.S. cents. These chocolates are encased
in a sugar shell to protect them from the heat.
"We seek to reach out to all of those consumers that are away from the cities and to sell