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COMPANY VIEW• Cadbury India is a fully owned subsidy of Kraft Foods Inc.
• The combination of Kraft Foods and Cadbury creates a global powerhouse in snacks, confectionery and quick meals.
• The world's No.1 confectionery and biscuit company.
• The world’s second-largest food company with sales in approximately 160 countries.
VISIONWorking together to create brands people love
MissionTo provide our customers with a tempting and exquisite taste
VALUECadbury means quality, this is our promise. Our reputation is built upon quality; our commitment to continuous improvement will ensure our promise
Cadbury in India1948
Operation began in India
1965
Pioneered the development of cocoa cultivation in India
VARIANTS• Cadbury Dairy Milk
• Cadbury Bytes
• Cadbury Bournvita
• Cadbury Eclairs
• Cadbury Dairy Milk Silk
Competitors • GlaxoSmith Con• Britannia• Kwality Dairy• Rei Agro• KRBL• Usher Agro• Lakshmi Energy• Heritage Foods• Kohinoor Foods• Nestle
STP OF DAIRY MILKSegmentation•Demographic segmentation
Any age group, Any Income Category
•Geographic segmentationThe maximum part of the revenue generated from
urban and semi-urban area.
•Behavioral segmentationOccasions
TARGETING•In the early 90's, it was seen as meant for kids, usually rewards or a bribe for children.
•In the Mid 90's the category was re- defined by the very popular Real Taste of Life´ campaign, shifting the focus from just for kids´ to the kid in all of us´.
•It appealed to the child in every adult. And Cadbury Dairy Milk became the perfect expression of 'spontaneity' and 'shared good feelings'
•The potential market in rural area was targeted
POSITIONING
• The girl dancing on cricket ground- Way to express the happiness as, Real Taste of Life´ i.e. Asli Swad Zindagi Ka
• Khanewalon Ko Khane Ka Bahana Chahiye- Social acceptance amongst adults, by showcasing collective and shared
moments.• Kuch Meetha Ho Jaaye- Celebratory occasions pappu Pass Ho
Gaya- Use of street language to express joy in a moment of achievement / success.
• Kuch Hai Zamana Aaj pehli Tarikh Hai to celebrate Pay Day.• Shubharambh Kuch Meetha Ho Jaye to start any new work.• Kuch Meetha Ho Jaye to spread love and happiness among
people
4P’S OF MARKETING MIXPRODUCT• Made from real dark chocolate.• Similar design worldwide.• Because of sweet taste, liked by kids.• Contains more milk and hence proteins than any
other chocolate bar.• As it is for kid in everyone, it can be consumed by
anyone.• Because of the sweet taste, it can be considered
as replacement for traditional sweets.• As it is liked by everyone, can be presented as
gift. Available in 10.5gm,22gm, 40gm, 42gm, 80gm, 95gm, 165gm and other premium packs
PRICE
• Available at different prices ranging from Rs. 5 • Variety of tastes are available in comparatively low range of
price.• The quality is uniform at all the price levels. The price
mentioned below are same all over India
PLACEFive company-owned manufacturing facilities:• Thane• Induri (Pune)• Malanpur (Gwalior)• Bangalore• Baddi (Himachal Pradesh)4sales offices:• New Delhi• Mumbai• Kolkota• ChennaiCorporate/Head office:• Mumbai
PROMOTION• Strong brands are vey important in the chocolate
confectionery market.• Almost 80% of chocolate purchases are made on impulse.• The media mix for the campaign comprises TVC, Outdoor,
Internet and Radio.• Use of emotional appeals in Advertising• Concentrated more on TV Advertisements.
Packaging
SWOT AnalysisStrength
•Cadbury Dairy Milk is the largest global confectionery supplier, with 9.9% of global market share.
•High financial strength
•Strong manufacturing competence, established brand name and leader in innovation.
•Advantage that it is totally focused on chocolate as unique understanding of consumer in this segment.
Weakness
•The company is dependent on the confectionery and beverage market,
•Whereas other competitors e.g. Nestle have a more diverse product portfolio,
•Where profits can be used to invest in other areas of the business and R&D
Opportunity •New markets. Significant opportunities exist to expand into the emerging market like India, where population is growing, consumer wealth is increasing and demand for confectionery products is increasing.•The confectionery market is characterized by a high degree of merger and acquisition activity in recent years. Opportunities exist to increase share through targeted acquisitions.•Key to survival within the FMCG market is increasing efficiency and reducing costs
Threat •Worldwide - there is an increasingly demanding cost environment, particularly for energy, transport, packaging and sugar. Global supply chain in low cost locations.•Competitive pressures from other branded suppliers (national and global).•Aggressive price and promotion activity by competitors- possible price wars in developed markets.•Social changes -Rising obesity and consumers obsession with calories counting. Nutrition and healthier lifestyles affecting demand for core Cadbury products
MARKET SCENARIO• Cadbury has market share of 70% out of which Cadbury Dairy
Milk has 30% of the market share.• The rival is Nestle with market share of 22%
Availability• As it is not a main food, it should be available in all the sizes as
per requirement.• Easy availability at nearby shops even in the remote areas
GLOBAL REACH• Approximately $50 billion in revenues • • 25%+ of global revenue from emerging markets • • #1 in global confectionery
• #1 in global biscuits
• More than 50% of global revenue from snacks and confectionery
BRAND PORTFOLIO• 11 brands with more than $1 billion in revenue • 70+ brands with more than $100 million in revenue • 40+ brands over 100 years old
• 80% revenue from #1 share positions
BRAND PROMISE
• Cadbury Dairy Milk is the most delicious, best tasting chocolate.
• A moment of pure magic.
BRAND CHARACTER
• Cadbury Dairy Milk encapsulates an enormous breath of emotions, from shared values such as family togetherness (fun, wholesome, reliable), to the personal values of individual enjoyment.
• It stands for goodness.
Crisis
On October 3, the Food and Drug Administration (FDA) Commissioner received complaints about worm infestation in 2 bars of chocolates. He ordered an enquiry and went directly to the media with a statement
Phase 1: Presenting Cadbury’s view (October-December 2003)•The problem started in one city, Mumbai, but later spread to other towns in the states of Maharashtra and Kerala. But it became a nationwide crisis since national media covered it. So clearly the first target audience that needed to be addressed was the media- both electronic and print media, national and local.•The trade, and consumers, was reached nationally through a press ad Facts about Cadbury, released in 55 publications in 11 languages.•It presented facts about Cadbury manufacturing and storage and highlighted corrective steps being taken by the company. This was a public statement of the corporate stand on the issue.
Phase 2: Packaging change (January -March 2004)•The new purity sealed packaging was launched in January 2004. This entailed double wrapping for maximum protection to reducing the possibility of infestation. This was a big step involving investment of millions of dollars and getting on stream a production process in 8 weeks that would normally take about six months.•To communicate these significant changes the company was making, Cadbury brought in a brand ambassador to reinforce the credibility that the company had demonstrated through its actions.•Amitabh Bachchan, a legendary Indian film star, was chosen, as he embodied the values of Cadbury as a brand and connected with all of India- mothers,teenagers, children, media persons and trader partners.
Advertising Campaign
• Early 90s : The Real Taste of Life´ with the girl dancing on the cricket field.
• The message given by this campaign was “Cadbury Dairy Milk is for Enjoyment”…… This campaign went on to be awarded 'The Campaign of the Century', in India at the Abby (Ad Club, Mumbai) awards
AFTER CRISIS:Campaign :Don’t Worry Be Happy´ in 2004.Target :Bringing Amitabh Bachan as brand ambassador helped to gain trust of the people with the new µPurity Sealed pack of Cadbury Dairy Milk after crisis situation
RECENT:•Campaign :Kuch Meetha Ho Jaye´ in the end of 2004.•Target:To associate Cadbury Dairy Milk with celebratory occasions.
MORE RECENT :•Campaign :Shubharambh Kuch Meetha Ho Jaye´ in 2010.•Target: To start with any new thing
Advertising Strategy
For example:•Pappu pass ho gaya
The Strategy:The task was to get the youth audience to adopt
Cadbury Dairy Milk in the sweet eating or " muh meetha karna" moments
The campaign of " Jab Pappu Pass Ho jaye, Kuch Meetha Ho jaye" captured the thought of celebrating a moment of delight with Dairy Milk A campaign was built around the idea of how "pappu" celebrated passing his exams with Dairy Milk
The Media: A multi-media campaign was launched on TV, Internet,
Radio and OutdoorThe key was how do own the moment of " pappu passing his exams" in the media space
The Results:The activity contacted 20 MN students across the
country and was awarded a Bronze Lion at the Cannes Media awards in 2005