Download - Cadbury Dairy Milk STP and 4P's
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By
Chanchal
Hari
Jayesh
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About Cadbury
Cadbury Dairy Milk (CDM) was launched in 1905 in U.K
Cadbury began its operations in India in 1948 by importing chocolates
It is the market leader in the chocolate confectionery business with a market share of over 70% in India
Cadbury India, on 21 April 2014, changed its name to Mondelez India Foods Limited
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Global Chocolate Market
Global market is still dominated by Western Europe and North
America, emerging markets clearly represent the future. The
BRIC countries (Brazil, Russia, India and China) accounted for
55% of global confectionery retail growth in 2011.
Right now, Indians eat only 165 grams (less
than 6 ounces) of chocolate a year. The Chinese eat only 99 grams (3.5 ounces).
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Indian Chocolate Market• India is the world's fastest growing market for chocolates.• Registering 15% annual growth between 2008 and 2012.• The Indian chocolate market is worth around Rs 5,562 crore.• 400 Kgs of chocolate consumption in India per minutes.• Low priced unit packs, increased distribution reach and new
product launches can be said to have fuelled this growth.
India chocolate industry will be
growing at the CAGR 23% by volume
between the years 2013-2018 and reach
at 3,41,609 Tons.
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Segmentation
Demographic Segmentation
Income –
Premium products – Dairy milk silk, Dairy milk glow etc.
Basic products – Dairy milk, Dairy milk shots etc.
Behavioural Segmentation
Occasion Segmentation – Celebration, After Dinner as a dessert.
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Targeting
Mass Targeting – Targets everyone
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Positioning
Youth see Cadbury as a synonym for chocolate
In the initial stage it positioned itself as Spontaneous, special, carefree, real moments (Mazza aa gaya)
The tagline “Meethe mein kuch meetha ho jaaye” positions Dairy Milk as a dessert (sweet)
CDM Silk has been positioned to be about 'moments' -- moments when the chocolate is enjoyed, moments which are like silk.
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Market Share
CDM has about 35 per cent share of the Indian chocolate market.
Nestle with its brands, Munch, KitKat, Bar One and Milkybar, has about 25 per cent.
Cadbury 5-Star has about 14 per cent; while Perk and Gems have 7 per cent each.
Cadbury Celebrations has 5 per cent and Bournville has about 1 per cent market share.
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Product
The amount of milk content in dairy milk is highest when compared to its competitors
The components used are sugar, cocoa butter, vegetable fats, cocoa mass and emulsifiers
It comes in various sizes and targets all
The design of the chocolate is nearly the same throughout the world
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Product Depth
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Products in India
• Dairy Milk
• Dairy Milk Shots
• Dairy Milk Fruit & Nut
• Dairy Milk Roasted Almonds
• Dairy Milk Crackle
• Dairy Milk Glow
• Dairy Milk Wowie
• Dairy Milk Silk
• Dairy Milk Silk Fruit & Nut
• Dairy Milk Silk Carmelo
• Dairy Milk Silk Roasted Almonds
• Dairy Milk Silk Orange Peel
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CDM Product Life Cycle
19052010
Life Cycle Extension
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Sizes
Dairy milk - 14gm and 38gm Pack
Dairy Milk Silk - 60gm and 160gm pack
Dairy milk shots – 5gm, 20gm and 220 gm
Dairy Milk Glow – 240 gm
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Price
It is priced same through out the country
It has adopted competitive pricing for basic products and premium pricing for other products
It is available in the price range of Rs 2 to Rs 600
Available in various sizes
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Pricing
Type Quantity (Grams) Price (Rs)
Dairy Milk 60 40
Dairy Milk Silk 60 60
Dairy Milk Glow 60 150
Dairy Milk Wowie 60 45
Dairy Milk Shots 60 30
Dairy Milk Caramello 60 70
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Distribution
• Cadbury product are sold to Wholesalers and retailers
• 2100 distributors
• 450000 retailers
• Available in all supermarkets and Kiryana stores
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Business Operations5 Company owned Manufacturing Services•Thane•Pune•Gwalior•Bangalore•Himachal Pradesh
4 Sales office•New Delhi•Mumbai•Kolkata•Chennai
Corporate Head Office•Mumbai
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Promotion
The media mix for any campaign for diary milk comprises of TV, radio, print, OOH and Internet
The advertisements are used to create an emotional bonding with the consumers
The promotions increase brand loyalty, encourage repeat purchases and at the same time increase market share
Cadbury spends approximately 45 crore on advertising.
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Asli Swad Zindagi KaAdult chocolate consumption in India is very low the famous Cadbury ad, 'kuchh khaas hai hum sabhi mein' aimed to do this."
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Pappu Paas Ho GayaThis ad aimed at positioning CDM as a sweet. In India people celebrate every happy occasion by distributing sweets. It was aimed to address the lower SEC in small towns. https://www.youtube.com/watch?v=xs-r6wJ7k0c
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Kuch Meetha Ho JaayeTried to relate to the consumers culturally by positioning it as a sweet. All the ads are based on a joint family thus relating to India culturally.
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Meetha Hai Khaana Aaj Pehli TaarekHai
Cadbury 'pays' a tribute to the salaried employees by giving them another reason to celebrate the payday.
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Shubh Aarambh
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Dairy Milk Silk"The obvious part of the communication is the self-indulgent product and the irresistibility of it
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Out Of Home Advertising
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Evolution of Promotion Techniques
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Website
• The four flavors are distinctly & prominently displayed on the site.
• Clicking on any of the four icons leads to the related game, TV commercial, Social Buzz, recommendation of Mobile Apps & in the end a page to vote for the favourite flavour.
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Facebook PromotionsThe first post which was about the favourite flavour elections of
dairy milk chocolates coincided with the general election-results day. Similarly the latter post added a pinch of humour & coincided with the IPL playoffs.
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Packaging
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S.W.O.T Analysis
Strength • Topmost chocolate provider in the
world• Brand loyalty• Low cost of production due to
economic of scale• Strong distribution network.
Weaknesses• Lack of market penetration• Relatively high Price Brand • Limited variety of products • Poor technology in India compared to
current international technologies
Opportunities• India CAGR 2013-18 is 23%• Population 1.27 Billion• Bring efficiency in logistics and
distribution with the help of technology.
• Introduction of foreign products in India.
Threats• Faced a worm scandal• In confectionery segment Threats from
company like Amul & Nestle.• Government Policies• Rise in raw materials cost cocoa beans,
dairy products & Sugar.
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