Cadbury Bournvita and its Marketing Strategies

Bharath Kumar M-12132 Korrapati Naveen - 12144 Priyanka Vyas -12155 Siddharth Shetty - 12168 Yughandara Ramesh 12180 Achala Simha - 12183

COMPANY PROFILE
CADBURY INDIA:
Cadbury India Ltd. is a part of Kraft Foods. Cadbury India operates in five categories Chocolate confectionery, Beverages, Biscuits, Gum and Candy. In the Chocolate business, Cadbury has maintained its undisputed leadership over the years. Some of the key brands are Cadbury Dairy Milk, 5 Star, Perk, Bournville, Celebrations, Gems. In the cookies business it includes the famous brand Oreo. In the gums segment it has the brand: Bubbaloo In the candy segment it has the brand: Eclairs.

Cont..
In India, Cadbury began its operations in 1948 by importing chocolates. After over 60 years of existence, it today has six company-owned manufacturing facilities at Thane, Induri (Pune) and Malanpur (Gwalior), Bangalore and Baddi (Himachal Pradesh) Hyderabad and 4 sales offices (New Delhi, Mumbai, Kolkata and Chennai). The corporate office is in Mumbai. Cadbury India enjoys a value market share of over 70 percent in the chocolate category. In the Milk Food drinks segment our main product is Bournvita - the leading Malted Food Drink (MFD) in the country. Similarly in the medicated candy category Halls is the undisputed leader.

Awards in India
Asian Marketing Effectiveness Awards 2008 for Bournvita Folk Cadbury India ranked 7th Great Place to Work in India No. 1 FMCG Company. ABBY Award. Cadbury won the Effies award 2006

BOURNVITA
Bournvita was launched in 1948 and is one of the oldest brands in the malted beverages segment.

This is a brand that has sustained over time and competition.

The brand has sustained because of Cadbury's invested in the brand and also ensured that the brand changed in tune with the times. When the brand was introduced in the market, it tried to solve a perennial problem that mother's face: a need for a healthy food which is tasty. Bournvita offered that unique combination of health and taste.

India- The Growing Market for Malted Food Drinks

Strong economic growth in markets is seeing middle class consumers trading up to added-value hot drinks. The 82,000 tone, malted food drink segment can be divided Into White Beverages and Brown Beverages. White Beverages account for 65% of the sales of the total market.

Brown Beverages account for the balance 35% of the market.

Cadbury's Bournvita dominates this segment.

Other players in the segment are Boost, Milo (Nestle) and

 India has the world's largest malt-based drinks market, accounts for 22% of world's retail volume sales.
In India, malt-based drinks are traditionally consumed as milk substitutes and are marketed as a nutritious drink. Sales growth has been assisted in recent years by improved retail and distribution networks and demographic factors, namely a large consumer base in the children's and youth market. India also recorded the highest growth (53% in US$ terms) of any market between 1998 and 2003. Primarily as a result of consumers trading up to value-added products.

Cont..

Competitive analysis:
The Indian malt based health beverages market was estimated at Rs 2,000 Crore for the year 2011 with an average annual growth rate of 20-25 percent. The Indian malted health beverages segment has seen fierce competition amongst its market participants in the recent past. The market is segmented in two distinct tiers of competition with leading multinationals such as GlaxoSmithKline Consumer Health Care Ltd (GSKCH) and Cadbury (now a fully owned subsidy of Kraft Foods Inc.) Tier 2 comprises medium-sized players such as Nestle, Heinz, Wockhardt (now a part of Abbott Nutrition) etc. Apart from these multinationals, a few domestic FMCG players are present as well, AMUL and Hindustan Unilever Ltd (HUL) being the significant ones.

The following figure illustrates the competitive structure in the Indian malted health beverage market:

MARKET SHARE OF BOURNVITA:-

Market share

11.6

2.2

13

Horlicks Complan

3.3 59

Viva Maltova Milo 8.3

Bournvita
Boost Others

1.2 1.4

In brown beverages market Bournvita has a share of about 43%.

Share
5% 10%

12%

43% Bournvita Boost Maltova Milo Others

30%

SWOT ANALYSIS
Strengths
Very strong brand equity in India

Backed by the brand Cadbury

Big Brand Visibility Largest market share in brown malted drinks

Weakness
Lack of penetration in rural market in India. Bournvita is considered to be high priced brand when compared to other malted drinks Bournvita is perceived to be having less nutritional value as compared to its closest competitors.

Opportunities
Expansion into every part of the country mainly rural part of the country.
Bournvita can leverage its product name with brand Cadbury Expansion to white malted drinks Having a wider reach by tapping other media sources Opportunities for line extension, for example: the Nutribar Category.

Threats
Tough competition from Nestle, Amul, and Horlicks who strives for market leadership. Large variety of flavors introduced by other brands Frequent repositioning might result in the consumer not getting the desired message.

SEGMENTATION, TARGET AND POSITIONING

Demographic segmentation
They mainly concentrated on children aged between 5 and 16 years of age who are primary consumers of the flavoured health drink. Launched in the year 2008, Bournvita Lil Champs is specially formulated with scientifically proven ingredients like DHA & Whey protein, making it ideal for children between the formative years of 2 to 5 yrs.
It focused on the Good Upbringing, Goodness that grows with you campaign to promote Bournvita as an essential health drink for children.

Behavioral segmentation
Benefits Protein 7 grams; Fat 2 grams; Carbohydrate- 84 grams of which sugar is 70.3 gram The major portion of the Bournvita is carbohydrates that easily breakdown in our bodies to provide energy. Though each health drink is fortifies with important vitamins and minerals like iron, b vitamins, vitamin a, d and e which has various functions in the body is beneficial.

Targeting
Most of the Cadburys promotional activities are based on the children who influence their parents to buy Bournvita.
Bournvita offered that unique combination of health and taste.

Thus it targeted the mothers concern about her child's health and taste preferences.

Positioning
Bournvita has always positioned itself as childrens drink and has been promoting itself that way. During the 70s the brand had positioned itself as a product that helps in good upbringing. The brand used the tagline Goodness that grows with you. During 80's there was a change in its focus from Upbringing to Intelligence.

Cont..
In 1990's the brand felt that it should be focusing on the overall health of the kids thus changed its focus on Body and Mind. The brand used an acronym RDA (Recommended Dietary Allowance) to reinforce the health positioning. The brand used a clever Nutritional meter to communicate the RDA formula: 2 cups of Bournvita for balanced nutrition.

ANSOFF MODEL
Market penetration strategies: Intense promotional activities should be done in schools like distributing free samples. Encouraging consumers of carbonated soft drinks towards Bournvita. Providing free toys or sports items. Providing increase in the usual packs by certain percentage. Marketing it as a energy boosting drink that could be had at any time. Product development strategies : Bournvita Lil Champs is specially formulated with scientifically proven ingredients like DHA & Whey protein, making it ideal for children between the formative years of 2 to 5 yrs. Bournvita should come in different sizes like family pack and mini packs. As it just comes in two forms, it must bring out new products in health drink for women, working middle aged men and aged citizens.

 It should add features such as dark chocolate and dry fruit toppings flavours for the existing product. Packaged cold Bournvita drink in different flavours in tetra packs and pet bottles.

Diversification: Bournvita can get into biscuits and nutribar categories.

ADVERTISING STRATEGY
In 1970s the brand was positioned as a product that helps in good upbringing. The brand used the tagline: Goodness that grows with you. During 1980s the brand changed its focus from upbringing to intelligence. The tagline was changed to: Brought upright; Bournvita bright. In 1990s the brand felt that it should be focusing on the overall health of the kid thus changed its focus on body and mind. Along came the famous tagline:Tan ki Shakti , man ki shakti. In the current millennium the brand has moved to the next level. Bournvita has identified confidence as its core brand essence. The brand now uses the tagline: Do you have Bournvita confidence.

It launched Cadbury Bournvita Quiz Contest as a quiz contest that began on April 12, 1972. Sponsored by Cadbury India Bournvita, it is one of India's most famous quiz contests.

Marketing mix of Bournvita:-

Product:
Bournvita was one of the most loved chocolate health drinks in the world before it was launched in India. In 1947 the Cadbury India Limited launched Cadbury Bournvita.

Bourn because its brown in color Vita because it has lots of vitamins. Bournvita acts as a dietary supplement providing nourishment along with good taste.

Price:
The mother or the housewife gives importance to the nutritional values of the health drink and gives price secondary importance. She will carefully study the taste and the nutritive values the health drink. Bournvita being one of the expensive healths drinks in the market, that is Rs 151 for 500 grams, but still due to its good taste and good nutritive values it has captured majority of the market

Promotion:
Bournvita has always promoted its product according to customers needs. It has attracted children by giving free gifts like plastic mugs, chess games, rackets etc. They also come up with schemes like extra Bournvita for same price. The ads have very clearly promoted this drink for intelligent school kids through organizing the famous Bournvita quiz contest between different schools. Bournvita is running two different campaigns for Bournvita: one campaign for the Bournvita Five star Magic and another one featuring Bournvita Confidence Academy.

Place:
Cadbury has a vast distribution network in India; it is catering Bournvita to its customers in this network. Bournvita is found in almost all medical stores, provision stores, super markets and all retail stores. It has around 2100 distributors and around 4,50,000 retailers. Total consumers of Bournvita are around 65 million. It has installed coolers at several outlets to address the issues of product stability. This helps in maintaining quality during summer when there is a lot of heat.