A

PROJECT REPORT ON
MARKETING STRATEGIES OF CADBURY INDIA
RAJIV GANDHI PROUDYOGIKI VISHWAVIDYALA
BHOPAL (M.P)

Session:-2015-16
SUBMITTED IN PARTIAL FULFILMENT OF DEGREE
OF MASTER OF APPLIED MANAGEMENT
RAJIV GANDHI PROUDYOGIKI VISHWAVIDYALAYA
BHOPAL (M.P.)

SUPERVISED BY: SUBMITTED BY:

Dr.Anil Kothari Devendra Kumar Sharma
(Coordinator MAM) M.A.M Vth Semester
 PREFACE

Techniques to transfer subjectivity in the environment into objectivity, also the findings of the
research, when applied the project work is a field work, which uses tools & show results, which
can be measured evaluated so there is feedback this is what makes it a dynamic activity. This
survey was an analytical study of different facts of a market. The focus in given on the
Marketing Strategies.

This project entitled "A Project Report on Marketing Strategies of Cadbury India".

The idea behind this project is to give practical knowledge & to make them to face real life
situation the project survey is commonly used for the collection from the respondents through
questionnaire. In this method spastically techniques have been used systematically. This project
report has not been made better with my own efforts alone but also with that of others.
 ACKNOWLEDGEMENT

It is my privilege to express my gratitude and respect to those who guided and inspired
me in the completion of this project.

I am deeply indebted to my project guide Dr.. Anil Kotari (MAM Coordinator) for
giving me this opportunity to undergo my project in his esteemed organization and for his
timely suggestions and valuable guidance.

I also thanks to Prof. Rajesh Gupta (Assistant Professor), Prof. Sushil Tiwari (Assistant
Professor), Prof. Nidhi Pandey (Assistant Professor) and Liza Jain (Assistant Professor) from
the Depth of my heart.
I am grateful to the Faculties, administrative staff and the librarian of Rajiv Gandhi
Proudyogiki Vishwavidyalaya for providing me all the support required for successful
completion of my project.

Devendra Kumar Sharma

MAM Vth Sem.
 CERTIFICATE
Date:..
This is to certify that the project report entitled:
A Project Report on Marketing Strategies of CADBURY INDIA
has been successfully completed by Mr. DEVENDRA KUMAR SHARMA, student of
M.A.M. Fifth Semester under the Supervision of Dr. Anil Kothari (MAM Coordinator) at
UTD-RGPV Bhopal (M.P.) in partial fulfillment for the award of degree of Master of Applied
Management. It is satisfactory in respect of:
1. Contents and Presentation of the subject matter.
2. Language.
3. Embodies the original work of the candidate.
4. Submission within due date.

Signature of Signature of Signature of

Supervisor Coordinator Examiner
 DECLARATION BY THE CANDIDATE
Dated: .......................

I declare that the project report entitled:

A Project Report on Marketing Strategies of Cadbury India

Is my own work conducted under the supervision of Dr. Anil Kothari (MAM Coordinator) at
UTD-RGPV Bhopal (M.P.). To the best of my knowledge the report does not contain any work, which has
been, submitted for the award of any degree anywhere.

Signature of the candidate

Name of the Student

Devendra Kumar Sharma
M.A.M. Vth Semester
 INDEX
o Preface
o Acknowledgement
o Certificate
o Declaration

EXECUTIVE SUMMARY

INTRODUCTION

HISTORY

OBJECTIVE OF THE STUDY

RESEARCH METHODOLOGY
PRODUCT PROFILE
MARKETING STRATEGY
SWOT & PEST ANALYSIS
DATA ANALYSIS

LIMITATIONS OF THE STUDY

FINDINGS
RECOMMENDATION
CONCLUSIONS
BIBLIOGRAPHY
QUESTIONNAIRE
 EXECUTIVE SUMMARY

The Cadburys Indias number one chocolate is able to share with their market insights based
upon unparallel breath of chocolate experience.
The merge in 1969 with Schweppes and the subsequent development of the business have led to
Cadbury Schweppes taking the led in both, the confectionery 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.

This project is a sincere effort to look for the market potential in chocolate and confectionery
industry. A descriptive research procedure had been applied to come to the conclusions of the
project. A detailed questionnaire had been prepared and the responses of the concerned people
had been collected for the analysis. The project later concluded in recommending the market
potential of the chocolate and confectioneries.
 INTRODUCTION
The Cadburys Inc has taken the opportunity to offer us a broader view of chocolate category.
The Cadburys Indias 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.
 HISTORY

The legend called Cadbury

1824 A once business was opened in 1824 by a young Quaker, John Cadbury, in Bull street Birmingham
as to e the fou datio of Cad u Li ited, o o e of the o ld s la gest p odu e of ho olate.

1831 By this year the business had changed from a grocery shop and John Cadbury had become a
manufacturer of drinking chocolate and cocoa. This was the start of Cadbury manufacturing business as
it is known today. A larger factory in Bridge Street Birmingham was rented in 1847, John Cadbury was
joined by his brother Birmingham and the business became Cadbury Brother of Birmingham.

1861 John Cadbury resigned his business and handed over to his sons, Richard, 25 and George, 21 who
after 5 difficult years almost shut down the business to take up other vocation. Fortunately for
ge e atio of ho olate lo e s, the did t.

1866 Saw a turning point for the company with the introduction of a process for pressing the cocoa
butter from the coca beans. This not only enabled Cadbury Brothers to produce pure coca essence, but
the plentiful supply of coca butter remaining was also used to make new kind of eating chocolate. The
esse e as ad e tised as A solutel pu e, the efo e est .
1879 Business prospered from this time and Cadbury Brother outgrew the Bridge Street factory,
o i gi to a G ee field site so e iles f o the e te of Bi i gha hi h a e to all
Bourneville. The opening of the Cadbury factory in a garden also heralded a new era in industrial
relations and employee welfare with joint consultation being just one of the introduced by the
pioneering Cadbury Brothers.

1899 In this year the business private limited company Cadbury Brothers Limited. Progress since the
start of the century through the inter war years onward has been rapid. Chocolate has moved being a
lu u ite to ell ithi the fi a ial ea h of e e o e.

1905 Cad u has a fa ous a ds ith o e of ajo su ess sto ei g Cad u s Dai Milk
ho olate lau hed i , toda B itai s fa o ite odules ho olate bar.

Cadbury today is the market leader in the U.K chocolate confectionary market, employing the most
advanced processing technology and management information and control techniques. The company is
the confectionary division of Cadbury Schweppes plc which is major force in the confectionary and soft
drinks international market.

World - wide Cadbury is one of the pre eminent names in confectionary with impressive range of
famous brands.

Quality has been the focus of the Cadbury business from the very beginning as generations have worked
to p odu e ho olate ith that e spe ial taste, s ooth ess a d s ap, so ha a te isti s of Cad u s
chocolate.
 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 little analysis:-

(a) SWOT Analysis

(b) PEST Analysis
A d also P s of Ma keti g:-

Product

Price

Physical Distribution

Promotion

Positioning
 RESEARCH METHODOLOGY
Achieving accuracy in any research requires in depth study regarding the subject. As the prime objective
of the project is to study the marketing strategies of 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.

Research Design:-

The design which indicates the method of research i.e. Method of information gathering research
instrument used.

Data Collection:-

The data collection is a long & comprehensive process & requires systematic collection of data about
some groups of people or object, the quality of the data will greatly affect the conclusion and hence
utmost importance must be given to this process and every possible precaution should be taken while
gathering the data and assembling the facts. Any research employed is a mixture of primary and
secondary data

Primary data was collected using the following techniques

Questionnaire Method
Direct Interview Method and
Observation Method
The main tool used was, the questionnaire method. Further direct interview method, where a face
to face formal interview was taken. Lastly 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 Bhopal.

# To these geographical area questionnaire was given, the questionnaire was a combination of both
open ended and closed ended questions.

# The date during which questionnaires were filled was between six week.

# Some dealers were also interviewed to know their prospective. Interviews with the owner of retailer
of Cadbury were also conducted.
# Finally the collected data and information was analyzed and compiled to arrive at the conclusion and
recommendations given.

Sources of secondary data

Used to obtain information on, Cadbury and its competitor history, current issues, policies,
procedures etc, wherever required.

# Internet

# Magazines

# Newspapers

Sampling Method:-

The method of sampling adopted for research is convenience sampling.

Convenience sampling is one chosen purely for expedience i.e. items are selected because they are easy
& cheap to find & measure. This sampling method help understand the range of variability of response
on the subject area.

Sampling Size :-We have taken the sample size of 50 people for the research purpose
 ORGANIZATIONAL STRUCTURE

MANAGING
DIRECTOR

GENERAL
MANAGER

VICE PRESIDENT

MARKET MANUFACT SALES FINANCE DISTRIBUTI

ING URING ON
 PRODUCT PROFILE
Design Development

Milk chocolate for eating was first made by Cadbury in 1897 by adding milk powder paste to the dark
ho olate e ipe of o oa ass, o oa utte a d suga . B toda s sta da ds this ho olate as ot
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 as merely as good as but better than the imported milk chocolate.

Four years of hard work were invested in the project and in 1905 what was to be Cadbur s top selli g
brand was launched. Three names were considered Jersey Highland Milk and Dairy Maid. Dairy Maid
e a e Dai Milk a d Cad u s Dai Milk ith its u i ue fla o a d s ooth ea te tu e as
ready to challenge the Swiss domination of the milk chocolate market.

B it had e o e the o pa s est selli g li e a d i the id t e ties Cad u s Dai Milk

gained its status as the brand leader, a position that it has held ever since. Today more than 250 million
a s of Cad u s Dai Milk are made every year and sales reach over 100 million Pound in value.

While advertising and label design g-have changed with fashion and considerable strides have been
ade i a ufa tu i g te h ologies, the e ipe fo Cad u s Dai Milk its glass a d a half of full
ea ilk i e e half pou d p odu ed is still asi all the sa e as he it as lau hed.

Cad ury s Dairy Milk tory

Chocolate has been enjoyed by successive generation since the manufacturing process was developed in
the Victorian Times. Good ho olate s is a a t fo depe di g o e ipe t aditio s, hi h ha e g o
over the years. Chocolatiers have use their skills to make balanced recipe in which all the ingredients
combine to produced chocolate with all the characteristics that enable full delicious taste to be enjoyed
by the consumers.
B toda s sta da ds the fi st ho olate fo eati g ould ha e ee o side ed uite u palata le. It as
the introduction of the Van Houten cocoa press from Holland that was the major break through in the
chocolate production as it provided extra cocoa butter needed to make a smooth glossy chocolate.

Cad ury s Milk Tray 1915

Milk Tray has maintained its popularity in the changing world since the milk chocolate assortment made
with the famous Cadbury s Dai Milk ho olate as fi st i t odu ed i .

The a e t a de i ed f o the a i hi h the o igi al asso t e t as deli e ed to the shops.

Originally Milk Tray was packed in five and as half pound boxes, arranged on trays from which it was
sold loose o customers. The half pound deep lidded box with the traditional purple background and
gold script was introduced in 1916, followed by one pound box in 1924.

With its stylish, without frills presentation Milk Tray was the assortment for everyday, not just special
occasion and it represented

the best buy in the chocolate for millions of people. The pack design has been regularly updated and the
assortment itself has changed in line with consumers taste and preferences.

By the end mid thirties the Cad u s Milk T a asso t e t outsold all its o petitio s a d toda it is
still one of the most popular boxes of chocolates in this country.

Cadbury Schweppes
Cadbury Schweppes plc, a global beverage and confectionary giant with annual sale of Rs 20,ooo 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 bottles 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 M . Ashok Jai sa s, e a e the
soft a e, the a e the ha d a e .
CHOCOLATE & CONFECTIONARY

Dairy Milk

Fruit & Nut

Picnic

Perk

Gems

clairs

Nutties

Temptation
FOOD DRINKS

Ovaltine

Drinking chocolate

Bournvita

Horlicks
 MARKETING STRATEGY
4 P Of Marketi g
PRODUCT

Satisfaction suffices. But delight dazzles the average company will compete for customer by
conforming to her expectation consistently. But the winner will surpass them by constantly exceeding
her expectation, delivering to her door step additional benefits which she would never have imagined
possi le. Cad u s offe su h p odu t. The ide a iet p odu ts offe ed the o pa i lude:

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

III. Food Drinks

1) Bournvita

2) Drinking chocolate

3) Cocoa
PRICING

Second P of marketing is not another name for blindly lowering prices and relying on this strategy alone
to i ease sales d a ati all . The st ateg used Cad u s is fo at hi g the alue that usto e
pays to buy the product with the expectation they have about what the production is worth to them.

Cad u s has lau hed a ious p odu ts hi h ate to all usto e seg e ts. o e e usto e
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. 5-200

Perk Rs. 10

5 Star Rs. 10

Friut and Nut Rs. 22

Gems Rs. 10

Break Rs. 5

Nutties Rs. 18

Bournvita (500 gm) Rs. 104

Drinking chocolate Rs. 50

Physical Distribution Pla e

BRAND ISNT THE ONLY ANY MORE. Marketers and finance manager need a new term to evaluate
their business:

Distribution Equity. It takes much more time and effort to build, but once built, distribution equity is
much together 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 would be know of selling your products. The
cardinal task before the Indian market is managing
is to shoe-horn its product on retail shelves. Buyers
are paying for distribution equity not brand equity
and market shares.

Why does the company need distribution equity more anything in India? With technology and
competitive pressure slash in it is becoming increasing difficult for marketers to retain a unique product
differentiation for ling period. In a product and price parity situation, the brand that sells more is the
one that reaches the highest number of customers.

India 1 billion people, 155 million household has over 4 million retail outlets in 5351 urban markets
and about 6.5 lakhs 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
a d e uit is t goi g to help he it o es to ta kli g 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 product.

Cad u s dist i utes the p odu t i the a e stated a o e.

Cad u s dist i utio et o k has e pa ded f o dist i uto s last ea to dist i uto s a d
4,50,000 retailers. Beside use of TI tom improves logistics, Cadbury is also attempting to

improve the distribution quality. To address the issue of product stability, it has installed visi colors at
several outlets. This helps in maintaining consumption in summer when sales usually drops due to the
fact that the heal effects 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 i ease i dist i utio is goi g to e a o pa ied edu tio i ha el osts. Cad u s
marketing costs, at 18% of total costs, is much highe tha Nestl s % o e e pu e suga
o fe tio e ajo Pa s %. The o pa is looki g to edu e this pa it le el. At Cad u , the
believe that selling confectionery is it like selling soft drinks.
Promotion

If an advertisement is to communicate effectively, the receiver must at least half want it to, and be
p epa ed too take step to a d the se de . Effe ti e ad e tisi g is a el he to i g o loudl e pli it. 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 her memory, communication must first ensure exposure, grab
her attention evoke her comprehension, grab her 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 address 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, unself conscious, pleasure seeking child within himself a graft these feeling
onto the Ad campaign like Kha e Walo Ko Kha e Ka Baha a Chahiye for CMD and Thodi i Pet
Pooja Kabhi Bhi Kahi Bhi for Perk have been sure shot winner with the audience.

Whi l ith the e lau hed te ptatio s ith the sloga Too To ha e the o u i atio esol es
a ou d the elu ta e of a pe so ho s got thei ha d o a a of te ptatio to let a o e 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. The most fascinated slogan Kuch Meetha Ho Jaye

All ICICI s ATM a essage flashes o the s ee as soo as customer insert his ATM card. It tells the
customer that this would be good time to get out of her 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. clairs 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 e i o plete ithout e tio e o d, the a age e t pla s 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
Vale ti es da , et .

It s a o i atio of spiffi g up its ke a d, esea hi g a d i p o i g the e e p odu ts that

ha e t take off, suppo ted ith high ad spends that Cadbury hopes will see it emerges stronger after
the current slowdown, as well as expand the market.
Positioning
I the s o su e s e e ead to pa o e fo o e , a d lu u goods flou ished. I the s,
consumers began to de a d o e fo sa e , a d the dis ou ti g e a g e st o g. Toda s o su e
de a di g o e fo less , a d the i e ill e that supe alue a kete s. o e of toda s ost
successful companies recognize those customers are more educated and able to recognize true
usto e alue

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 servi e ideas to sepa ate g oup epositio i g is a ust he usto e attitude ha e
ha ged a d p odu t ha e st a ed a a f o the o su e s lo g sta di g pe eptio of the

Cad u s is a a ho i sea of o fe tio a p odu ts. As a a iet of o petitive claims assails her
senses, today customer uses complicated decision making process to assess the alternative before
aki g a pu hase. i e Cad u s is o e lea l asso iated ith a pa ti ula set of att i utes i te s
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. Ku h Meetha Ho Jaye , 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
ake it a sou e of e e g . I fa t, efo e the lau h of Pe k, sta s e e g a positio i g
made it a snacking chocolate.

3) clairs: competing in the chewable toffees segment. clairs was re-launched during the mid-
nineties with a new name, Dairy Milk clairs.

4) Ge s: oad asti g Ge s, though, did t p o e to e feasi le p opositio fo Cad u . Ta geted

at children u de ea s ith Ge s Bo d ad e tisi g. Cad u de ided to too tee age s ith
the a t Ve at a paig . But o , the o pa is eta geti g hild e ith its
a i ated o e ial. Ge s a e the est a d to speak to hild e . Colo ful ho olate
buttons appeal most to children and that is why Cadbury is re-ta geti g hild e .

5) C a kle: it as the fi st Cad u s ho olate to ha e u h i it. It as ta geted as a fu k

chocolate to add spark to life.

6) Pe k: i epte e, , Cad u p ee pted the lau h of Nestl s Kit-Kat by rushing a new

brand, Perk into the market. Positioned much further on the functional scale than 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.
Cadburys Market Segment

Market place for any product is comprised of many different segments of consumers, each with
different needs and wants. Markets segmentation can be defined in a number of ways such as:

De og aphi a ia les e.g. Co su e s a e g oups, ge de , ate ial states i o e et

The lifestyle of consumers (i.e. their interests and activities) the benefits which consumers look
for in a product or on the occasions when the product might be consumed.
Cadbury takes into account all these factors when producing a range of products. It targets
different segments within the market, such as the.
Break segment products which are normally consume as a snatched break and often with tea
a d offee, fo e a ple Cad u s Pe k a d s a k a ge.
Impulse segment these products are often purchase on impulse, eating these and then. They
include p odu t su h as Cad u s Dai Milk.
Take home segment this describes product that are normally purchased in supermarkets,
taken home consumed at a later stage.

The
Real Taste of Rejuvenation

It was the market leader, but sales inched along. It focused firmly on its target segment, but the real
u e la e o d. Fo se e lo g ea s, Cad u s Dai Milk ho olate suffe ed stag a e e as othe
consumer products boomed. Just how did the company rejuvenate an old brand to create the
marketing megs-hit of the 199s?

It Stand First Among Second o i g. A d it as t so u h a e-launch as it was a process of

rejuvenation. Over a period of 12 months, starting February, 1994, the Rs. 314 crore confectionery
makers Cadbury embarked on the most outrageous repositioning exercise in the recent history of Indian
marketing. For, it systematically dismantled the franchise that the company had built over 30
 ea s of its flagship a d, Cad u s Dai Milk CDM -Cad u s Milk ho olate u til -destroying
the very fundamental of generic association that had made million of Indians refer to a bar of a
ho olate as a Cad u .

Mo e p oof of the ho olate is i the eati g: t o ea s i to p o ess, CDM s a ket sha e at %, ith
sale rising by an average 40% per annum.

The Diagnosis

Today, Kuch Meetha Ho Jaye , which served Up chocolate in general, and COM in particular, into the
consciousness of adult, has already become a classic of advertising and marketing. By 1993, Cadbury was
despe atel seeki g g o th fo the a d With a a ket sha e of %, t i g to win away customers
fo o petito s i this stag a t a ket ould t help. The had to fi d e usto e s, people ho d
e e ought ho olate efo e. O , the had to i ease o su ptio le els . The o ious solutio , i a
peculiar predicament. Despite low penetration, both the brand and the category were displaying
symptoms of age: faltering growth, high recognition, and lack of excitement. The market research
e ealed the ause of the g a i g: ho olate as t a s a k i I dia. I atu e a kets, ho olate
straddle a continuum, from boutique product packaged raw indulgence to a asual food . o,
Cadbury whipped up a growth solution that involved associating the brand with snacking and
functionally, which inevitably go together with high consumption rates in the Western markets.

The next step: identify the barriers preventing consumers from chocolate as a snack. A battery of test,
both quantitative and qualitative, comparing chocolate consumption to a basket of competitive
products revealed an unmistakable answer.
 Cad ury s Was Caught I Its O Trap

How? The company had, over decades, created a context of chocolate consumption that was now
ho ki g g o th possi ilities. The aggage of the past as so o e po e i g that people did t get
influenced i o shifts i the essage .

In fact, the behavioral and attitudinal patterns conveyed by the communication to build the brand were
proving restrictive. For, Cadbury had, using the traditional demographic variables of age, socio-economic
groups, and usage intensity, positioned COM as a product that elders typically, parents bought for
children typically, their own.

But admittedly enduring values of love and sharing, parental affection, and reward that Cadbury had
labored to associate with the brand, which had helped it forge a relationship with customers, had
relegated it to being a special occasion item, ruling out increased individual consumption. After all,
special occasion item, ruling out increased individual consumption. After all, special occasion were
meant to be a rare.

A typical Ad would show parents bringing home chocolate for their child. It would never, ever, show the
child, or the parent, buying it for himself or herself. The punch line o eti es Cad ury s Ca ay It
Better Than Words, and Nothing But The Best Will Do reinforced the notion, with an unwelcome side
effect: adults, as research showed, felt distinctly guilty and embarrassed about eating chocolate,
whether alone or socially.

Not o l e e adults ot i dulgi g in chocolates, but they were also actively curtailing child
o su ptio solutio ? Fo get hild e as the o e o su e . U i e salize the p odu t, ta geti g the
parents.

The Tests

Despite the Need To Clea The esidual e o of CDM s fo e asso iation, caution prevented a big
break with the past, forcing Cadbury to experiment with a combination of continuity and change. The
process entailed understanding the foundation of the brand, since it was these that would support the
e st u tu e . Out e t the caring - and - sha i g ele e t, ut the fa il o te t sta ed. Cad u
had t o pilla s, so it ade se se to ha ge o e .

Cho olate should e eate he e e ou feel like. It as a i pulse ite , so h should t it e sold as
o e? . The fi st of the t o commercial focused on functionality, purging the emotional element.
Is the storyline, The father watches TV, engrossed, gnawing away at a bar of CDM. The children enter,
followed by the mother-but, by that time, the father has completed the distinctly un paternal act of
devouring the entire bar. The children are shocked, where upon the produces another bar for them-only
to eat that up too. Finally, the mother brings another bar out of her bag. The last shot more CDM bars
strew around casually.

The second commercial conveyed the same message, depicting four member of a family doing their own
thing on a Sunday afternoon, each casually munching away on chocolates. The less than subtle
essage: eati g ho olate s just a e e da affai , ithout spe ial o asion or relationship coming into
play. Despite their strategic intent, both ads failed on pre airing tests.

Why for stators, children were outraged at the idea of a parent consuming chocolate, while adults were
down right angry at the notion of the father depriving his children of chocolate bar. Just as important,
consumer rejected the idea that chocolate-eating could be equated with mechanical activities like
o i g o e s hai . Afte all, ho olates e e a out feeli gs. The e had to e agi , o a e, love and
e otio . These ele e ts had ee ipped a a f o the ad e tisi g. It as sa s e otio .

Pare t Are Differe t Fro Adults

Even as the ad failed, however, they generated a valuable byproduct, in the form of a new insight, into
adult eha io . Usi g t a sa tio al a al sis o espo se, Cad u s fou d that adult as pa e ts eha e
very differently from adults as adults. People forbid their children from having chips, but gorge
the sel es. The i pli atio :-

The o e t the adult as sho i the o text of his role as a parent, all his cognitive preconception
a out the p odu t ould o e to the fo e. He d thi k a out the easo s h , a d the lo k ould
auto ati all o e up . Tap child-ego state within the adult, stimulating desire, spontaneity, and the
craving for instant gratification.

The Prescription

The crucial question that Cadbury was confronted with: what strategy should it deploy to rejuvenate
COM in a way that would appeal to the child lurking within the adult? To inject a modern flavor into
COM, they chose to create a new brand identity, borrowing a leaf from marketing guru David Aaker,
who decrees that brand identity should establish a relationship between the brand and the customer by
generating value proposition involving functional, emotional, or self-expressive benefits.
 The Ads Had To Be Li ka le

The o su e ill al a s tell hat his u e t elief s ste is, ot hat it should e Cad u s jo to
mould has habits and behavior in a way that would increase consumption for p odu t a d a d .

I pulse Dri es Cho olate ales

O e of the tools Cad u s used as Jea Neal Kapfe e s B a d P is odel to e a i e hethe

contemporary value systems offered a peg on which the brand could be judge. The study disclosed,
interlaid, a distinct shift from collectivism to individualism, with the pre s sa osa t alues of
filial and family love being overshadowed by the manifestation of a larger need for self expression.
The e as a defi ite ea i g to e f ee hild . The ein lay the opportunity for both unshackling
consumption and creating all-new association for CDM.

The Elixir

Having decided to barter the distinctly use selfish values of sharing and caring for the suspiciously self-
centered one of self-e p essio , Cad u 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.

The left the o e tio to e ade the usto e I the p o ess the e e a le to get ie e
involvement and high levels of empath . No he e did the a tuall sa , ou e a adult, ou a eat it.
Be ause o od a ts to e told . Thus it as that, the o tage of the hild i the a -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
ei g de ised O&M s eati e tea ot fo the ti e atte of likea ilit , o p ehe sio , edi ilit
and behavior modification ut o l fo the fi st t o. If asked upf o t, the o su e as ha dl likely
to consider the dramatically-different idea credible. Nor was there much chance of her announcing an
i ediate ha ge i eha io . But h likea ilit a d o p ehe sio ? i ple: the fi st as ea t to
be the vehicle on which the daring idea-that adults should enjoy chocolate-would ride into the
o su e s ps he.

In other words, the commercial was meant to make him smile at first-and only then realize the import
o e of the essage, hi h is he e the o p ehe sio had to e tested. What as lea in this case
as that likea ilit ould ha e to i lude ide tifi atio a d feeli g a th.

TThhooddii SSee PPeett PPuujjaa,, KKhhaabbii BBhhii KKaahhiinn BBhhii!!

The Real Taste of Life Campaign

The e fi st ad i the a paig i as lo k Buste . It depi ted the esse e of o e a d a half
glass of milk pouring in to a boy Dairy Milk unique glass and half in to a chunk icon shows the glass and a
half of full cream milk flowing in to the chunk of dairy milk conveying the deliciousness and taste appeal
of the gooey, creamy, smooth chocolate inside the pack that children like. The
mnemonic of 1 glass reached to consumer through every magazines, poster, T.V, newspaper.

The second ad was montage of vignettes from every day lives of young and old which focused on
showing a series of emotions. The ad created a being out the child in the man created to bring out the
child in the. The old man kicking the football, the pregnant women craving chocolate, young girls
breaking into a spirit, the young man tossing a bar chocolate at his sweet heart departing into a bus. The
common refrain linking them was the adult in a free child mode spottiness, impulsive and carefree.

The ad was protested among adult s t ough fo us g oups. The ad e ei ed a o e hel i g espo se. It
as high o likea ilit , e oked a g eat deg ee of e path a d ide tifi atio o su e s espo se e e
those e Feel like that. . E e feels like this .. B a d usage as pe eived to cut across all
age g oups a d a essio s. Co su e s des i ed dai ilk as of all ages

Eat, he e e ou feel like it ou do ot ha e to ait fo a o asio .

Dairy Milk had successfully enabled the free child in the consumer subsequent adverting used the same
communication strategy.
The next ad featured an ongoing 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
Ogilvy and matter, were 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 I 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.

The New Campaign

And finally, with the launch of the ne ollo uial ad e tisi g a paig Ku h Meetha Ho Ja e Cadbury
I dia ai ed to su sta tiall i ease pe et atio le el of the ho olate atego i the e t fe ea s.

The new campaign is worth noting as it clearly differ from the earlier one in terms of rectifying the
consumer perception about chocolate being an up market impulse driven product. The attempt now is
to change the image, to make chocolate eating a regular habit especially during festive season.

The current estimated penetration level of the chocolate category is 19% in the urban market. The
objective behind new communication on Cadbury Dairy Milk is to make the chocolate category more
socially and culturally relevant and drive penetration in the process.

The new campaign has been launched i ta de ith the old a @@ Wi i g Kuch Meetha Ho Jaye
campaign and the media strategy is to let the two co e ist to a ds a o o isio p o idi g a
Cad u i e e po ket .
TThhooddii SSee PPeett PPuujjaa,, KKhhaabbii BBhhii,, KKaahhiinn BBhhii!!
Chocolate Market Share

The Indian chocolate market is getting bigger and better. While on one hand, the premium segment
(composing imported varieties) is opening up on the other, companies like Cadbury India are launching
indigenous product made to international standards. Of the 20,000 tonne chocolate market worth about

Rs. 400 crore, Cadbury account for about 70% followed by Nestle, with a share of around 20%. Amul has
about 5% of the market, with minor player taking the rest. The battle, though, is between Cadbury and
Nestle. Though with a much smaller portfolio, Nestle is putting up a tough fight.

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 more broad based, in the
sense adults are an important target segment now. The reposting of Cad u s Dai Milk i as the
ku h khas hai (through the Slice of Life and Cricket commercial by Ogilvy and Mather) grew the entire
ilk ho olate %, a d ga e the Cad u s a ge 5 Star, Gems, clairs, Fruit & Nut, Crackle,
Nutties, Butterscotch & Tiffns a new lease of life. In other words, it facilitated the repositioning of
Cad u s su a ds i the asket. o e o the st ategi li ked, hile othe did ot uite take off.

The company is pushing the gifting segment, through occasion linked gifts. Chocolates contribute to 64%
of Cad u s turnover. Confectionary sales accounting for 12% of turnover is contributed largely by
clairs. 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 vita 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 a e ut i e, Pa s a algoa , Ca di o, Pa le,
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 down 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
la gest p opo tio of all I dia s sale. Cad u s Bou Vita is leade i the do d i k o a ased
segment in the white d i k seg e t ith Kli e s Ho li ks i the Nestle Milo , GCMMF it a ul a d
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 2014. The company achieved a volume growth of 5.2%. This was achieved
through innovative marketing strategies and focused advertising campaign foe flagship brand Dairy Milk.
Net profit rose sharply by 41.8% to Rs. 520 million. Reduced material and energy cost and tioter 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 pork with 4%. For the Choclate company, Kuch Meetha Ho Jaye and
the festive season, 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.
Cadburys Temptation

Cadburys Health Drink

 Cadburys Creamy Bar

Cad ury s fruits a d uts

Newly Launch

Cadbury target kids with Milk Treat: - It is a product that talks directly to the target consumer. The
p odu t e efits ha e ee defi ed as The good ess of ilk to the fu of ho olate . it o i es oth
good health, multinational value of milk along with the values of fun and excitement. The kinds formally
associate with Cadbury chocolate offering.

Temptation :- It is ai ed at the i he i te atio al ho olate seg e t of the ho olate a ket a

seg e t ho upg ade f o a ds su h as Cad u s to p e iu i te atio al offe i g su h 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. The previous Cad u s a ge a aila le
in India did not offer consumer an option to upgrade to
i te atio al ho olate ithi the Cad u s fold. Te ptatio is
an attempt to lug niche, priced Rs. 30.

Future Strategy
In the branded impulse market, the share of chocolate in 6.6%
a d Cad u s sha e i the i pulse seg e t is . % fa to like ha gi g attitude, highe disposa le
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
su ess of its lo p i ed alue fo a pa ks .

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 clairs. The company is today the second best
a ufa tu i g lo atio of Cad u s h eppes i the o ld.

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 developing. 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 look 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.
Changing Product Mix

Contributing to turnover 2010 Contributing to turnover 2015

Chocolate 63% 70%

Sugar Confecting 11% 14%

Food Drink 32% 44%

Current Market Share

Chocolate 69.2%

Sugar Confectionary 4.0%

Food Drink 14.2%

Expanding Distribution Reach

2001 + Distribution

450000 Retail Outlet

60 Million Consumers
 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 (75% share), Confec (10%), food drinks (15% - leader in brown
segment).
4. Low cost of production due to economic of scale. That means higher profits and / or more
co petitioners. Better market penetration.
5. Second best manufacturing location throughout Cadbury Schweppes.
Weakness

1. Poor technology in India compared to current international technologies (Godiva, Mozart,

Frazer, Dint, Naushans, etc...)
2. Ltd. Key products, only one central brand (CDM). Pralines range totally wising in India.
3. Make i I dia tag o e the e o o ope s up o e a d i po ts ush i .
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. u stitute to Mithais ith highe alo ies/ holeste ol.
6. Increasing departmental stores concept impulse @ at cash counters.
7. Globalization: optimal use of global Cadbury Schweppes.
Threats

Due to low cost and highest brand equity, it is today in India.

Globalization will being in better brands for upper end of the market (Liest, Monarch, Godiva,
et .

Emergence of new player such as Priyagold.

Pest Analysis

P: since the budget range is decontrolled, no political effects are envisaged.

E: 1) increasing per capita income resulting in higher disposable income

2) Growing middle class/urban population increase in demand

3) Low cost of production better penetration

S: 1) Per capita consumption expected to increase fashion

2) Increasing gifts culture increase in demand

Lo e holeste ol tha ithais s eet eat substitute demand

T: Will have to reinforce technology to international levels o e I dia is a f ee e o o

 DATA ANALYSIS
1. Do you eat chocolates?

Yes
37%

No
63%

2. Which brand of chocolates do you use?

70
70
60
50
40
30
20
20 5 5
10
0
Cadbury's Nestle Amul Others
3. Where do you buy chocolates from?

Others
6%
Movie Halls Super stores
17% 32%

Restaurants
10%
Retail stores
35%

4. Are you aware of any campaign of the above brands?

No
46%

Yes
54%
5. Do you thi k Cad ury s ho olate is easily a aila le i arket ?

90
80
70
60
50
East West
40
30
20 North
10
0
1st Qtr 2nd Qtr 3rd Qtr 4th Qtr
Few Concerns Come To Mind
With a market share of 70% in the chocolate category and with the free availability of international
a ds that ou see i the a ket toda , it is o l atu al that Cad u s a ket sha e ill o e do
from here marinating a 70% market share in a closed environment may have been easy, but it certainly
o t e eas i li e alized environment of free imports. And whatever be the anomalies of taxation or
low, the consumer is surely going to have a wider choice. And it is going to be shared with other brands
too i futu e. The e is additio al halle ge of Cad u s a d just aiming market share when the
consumer has a wide portfolio of brand to choose from.

While there would be new chocolates launch towards the end of the year, the company has ruled out a
real big chocolates launch in the current year. And it is too early yet to comment on the long term
response to the new launch temptations. They say chocolates are mostly am impulse purchase.
Therefore consumer would prefer smaller, low cost packs to bigger higher priced ones.

The growth trend of the brands therefore clearly indicates that the only brand that has grown is
the one that gas received tremendous marketing and advertising support Dairy Milk withdraw
support for any brand and growth loses momentum. In such scenario, for how long and how
many brands can the company continuously support?
 LIMITATIONS
1. The sample was collected using sampling techniques. As such result may not give an exact
representation of the population.

2. Most of the data being secondary can be biased towards the company.

3. Shortage of time is also a reason for incomprehensiveness.

4. Most of the information was taken from secondary sources being based on previously printed data.
 FINDINGS

About 37% prefer to eat chocolates and the others are very rare and occasional.
The most preferred brand is Cadbury and the next is nestle followed by amul all copeting
with the local brands.
Still the society had changed its trend of purchasing then also retail stores are the buyers.
first choice followed by supermarkets and others.
More than half a hundred people are aware about Cadburys advertising campaign.
Dairy Milk is the most preferred chocolate among different chocolates offered by
Cadbury.
91% of people are saying Cadbury is easily available in the market so Cadbury has the
efficient distribution system.
Cadbury has the most effective advertising campaign.
The leading brand of India in chocolate market is Cadbury.
The increasing gift culture had led to the increase in the Cadbury sale.
 RECOMMENDATIONS
Maintain dominance in chocolate, confectionery and market leadership in blown drinks.

New channels such as gifting, child connectivity and value for money offering to be the key
growth drives.

Grow volume sales at least 20% p.a. over the next years.

Achieve the goal of best manufacturing location in Cadbury Schweppes world for Dairy Milk and
clairs.

One new major product launch every year.

The Cadbury Story

Cad ury s su ess 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.

Toda Cad u s p odu tio a e e jo ed i ou t ies, ith ho olate o fe tio a a ds,

Cad u do i ated a kets as fa as the U.K. a d Aust alia that s h Cad u ha e ee du ed The
o ld s BACHELO ho olate ake s .

The se ret of Cad ury s su ess

What is the se et of Cad u s o ti ui g su ess fi st the e s the a eful sele tion 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.

Fi all the e s skillful a keti g Cad u al a s takes e t e e a e i sele ti g a d a keti g the right
range of product in every cause.

The right product, the right partners, the right marketing, the promotional back up and the
ight e plo ees. These a e the i g edie ts i Cad u s latest e ipes fo su ess.

Right from the stand Cadbury Dairy Milk Chocolate success has been based on 3 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 e e p i a il pu hase s, a d ot o su e s of ho olates. Ho e e , as fo ost hild e s

p odu t, the e e ised a st o g i flue e o the hild e s consumption behavior. Adults acted as
gatekeepers of sorts when it came to food items. Considering the advertising history, it came as no
su p ise that ho olate e e pe ei ed as kidd p odu t a d e tai l ot pa t of the epe toi e fo
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.

B a ds i ages e e u diffe e tiated a d the atego had lo salie , a do ithout .

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 ell as d i i g the to est i t hild e s o su ptio .

The e as e ide e to suggest the eed fo shifti g fo us f o hild as ho olates o su e s 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
o asio to e e o e t. A st o g olu e g o th as it essed i the ea l s he 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 in factionary 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 fa t that the o pa s o su e slo do a d the fa t that o pa is
dependent on a single category chocolates to drive growth. Effect it expanding confection any portfolio
have also not yielded desired results. The management has declared its intention to focus only in clairs
(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 in E claims which have supported
growth in the past. While new launched such as milk @ and Perk slims have been doing will, the
a age e t e pe ts that dai ilk ould o ti ue to e the e t al d i i g fo e i Cad u s g o th
and that all other brands would remain peripheral to this central brand.
Few Concerns Come To Mind

With a market share of 70% in the chocolate category and with the free availability of international
a ds that ou see i the a ket toda , it is o l atu al that Cad u s a ket sha e ill o e do
from here marinating a 70% market share in a closed environment may have been easy, but it certainly
o t e eas i li e alized e i o e t of f ee i po ts. A d hate e e the a o alies of ta atio o
low, the consumer is surely going to have a wider choice. And it is going to be shared

ith othe a ds too i futu e. The e is additio al halle ge of Cad u s a d just ai i g a ket
share when the consumer has a wide portfolio of brand to choose from.

While there would be new chocolates launch towards the end of the year, the company has ruled out a
real big chocolates launch in the current year. And it is too early yet to comment on the long term
response to the new launch temptations. They say chocolates are mostly am impulse purchase.
Therefore consumer would prefer smaller, low cost packs to bigger higher priced ones.

The growth trend of the brands therefore clearly indicates that the only brand that has grown is
the one that gas received tremendous marketing and advertising support Dairy Milk withdraw
support for any brand and growth loses momentum. In such scenario, for how long and how
many brands can the company continuously support?
POSITION OF THE VARIOUS BRANDS IN THE MARKET HAS BEEN LISTED
BELOW

Cadburys Positioning Nestle s ra ds Positioning

brands

Cadbury Dairy Milk The eal Taste of Classic Milk Positioned as an

Life Chocolate affordable enriched milk
Fruit n Nut
chocolate
Creamy bar
Positioned as Trendy,
Position as adults as Bar One
Roast Almond
Cool, any time snack.
an impulse any time
Crackle
purchase self
Bournvita expression values
attached

5 Star / Perk/Break
 CONCLUSION
This company project has demonstrated CADBURYS MARKETING STRATEGIES that
has proved to be extensive through, and of great benefit to the company in furthering its
competitive advantage.
In this project it is possible to see the success of Cadburys in its indorse its strong potential to
continue to do well.
 Bibliography

A L ies , Fo us Ha pe Colli s Pu lishe s Ltd.

Da id A. Aake , Ma agi g B a d E uit , The F ee P ess.

Da id A. Aake Buildi g t o g B a ds , The F ee P ess.

Philip Kotle Eighth Editio Ma keti g Ma age e t , P entice Hall of India Ltd.

Advertising and marketing Magazine

The Economic Times B a d E uit

Company Literature

Market survey and questionnaires

Web site: www.cadburyindia.com

Web site: www.Cadbury.uk.com

Business World

Business Today
 QUESTIONNAIRE
1. Do you eat chocolates?
Yes No

2. Which brand of chocolates do you use?

Cad u s

Nestle

Amul

Others

3. Where do you buy chocolates from?

Super stores

Retail Stores

Restaurants

Movie Halls

Others

4. Are you aware of any campaign of the above brands?

Yes No

5. Whi h Cad u s p odu t do ou usuall p efe o use?

Dairy Milk 5 Star
Fruit & Nut Perk

Temptation

6. Do ou thi k Cad u s ho olate is easil a aila le i a ket ?

Yes No
7. Des i e Cad u s Cho olate i o e o d?
______________________________________________________

8. You o e ts o Cad u s p odu ts?

______________________________________________________