marketing strategy of cadbury company
TRANSCRIPT
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:
4
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
53
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.
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PRODUCTS OF CADBURY WHEN THEY LAUNCHED IN MARKET
Cadbury Product Timeline
SERIAL.NO YEARS PRODUCTS
1 1865 Cadbury Cocoa Essence2 1875 Cadbury Easter Eggs
3 1897 Cadbury Milk Chocolate4 1905 Cadbury Dairy Milk
5 1908 Cadbury Bourneville Chocolate6 1915 Cadbury Milk Tray
7 1920 Cadbury Flake8 1923 Cadbury Crème Eggs
9 1929 Cadbury Crunchie
10 1938 Cadbury Roses11 1948 Cadbury Fudge
12 1968 Cadbury Picnic13 1960 Cadbury Buttons
14 1970 Cadbury Curly Wurly15 1983 Cadbury Wispa
16 1985 Cadbury Boost17 1987 Cadbury Twirl
18 1992 Cadbury Timeout19 1996 Cadbury Fuse
20 2001 Cadbury Brunch bar, Dream & Snowflake
21 2007 Cadbury Schweppes
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EXPANSION AND GROWTH OF CADBURY
THE LEGEND CALLED CADBURY
1824 – A business was opened in 1824 by a young Quaker, John Cadbury, in Bull street
Birmingham was to be the foundation of Cadbury Limited, now one of the world’s largest
producer of chocolate.
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 generation of chocolate lovers, they didn’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 essence was advertised as ‘Absolutely pure, therefore
best’.
1879 – Business prospered from this time and Cadbury Brother outgrew the Bridge Street
factory, moving in 1879 to a ‘Greenfield’ site some miles from the center of Birmingham
which came to call 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.
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1899 – In this year the business private limited company – Cadbury Brothers Limited
progress since the start of the century. Chocolate has moved being a “luxury” item to well
within the financial reach of everyone.
1905 – Cadbury has many famous brands with one of major success story being Cadbury’s
Dairy Milk chocolate launched in 1905, today Britain’s favorite module chocolate 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 produce chocolate with that very special taste, smoothness and
snap, so characteristics of Cadbury’s chocolate.
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OVER ALL TURN OVER
The confectionary industry in India is in its growth stage. This marketing Research
data from the industry shows that the industry has been making impressive growth in the
Indian economy. The confectionary industry is divided into the flowing specific industrial
sectors: Chocolate, Hard-boiled candies, Éclairs and toffees, Chewing gums, Lollipops,
Bubble gums, and Mints and lozenges (Laura, 2008).
The total confectionary market is valued at about 41 billion Indian Rupees. It has a
total turnover of about 223500 tones of confectionary produced every year. This is a huge
overall turnover which is equal to that of established markets. Most the confectionary are
consumed in the urban areas. The urban market constitutes about 73 percent of the total
market. This is a skewed market share compared to the rural market which accounts for about
27% of the total market.
This market data shows that the rural market has not been well tapped into. With
more than 50 percent of the Indians living in the rural areas, it means that there is a high
potential in the rural market (Cadbury, 2008).On the product share of the market, hard boiled
candy accounts for about 18% of the market, Éclairs and Toffees has about 18% of the
market share, while gums and mints and lozenges are at par accounting for 13 percent of the
market share each.
However chocolate has recorded the highest market growth rate recording about 23
percent growth rate. This is a higher growth rate compared to other markets in the world.
However the overall sugar confectionary segment in the Indian market has been declining
with a total decline of about 19 percent recorded in 2007 (Laura, 2008).
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Cadbury with a number of products including Daily Milk, Perk, Gems, 5 Star,
Celebration, Bytes, Dairy Milk Éclairs, Éclairs Crunch, Mr. Pops and Halls is the leading
player in the chocolate segment, Éclairs segment, Lollipops, and the Mints Segment
(Cadbury, 2008).
Cadbury is also the leading player in the milk beverage segment which is valued at
16.1 billion Rupees. This segment has an annual turnover of about 63,000 tones and has been
growing at a rate of 10.1 percent. Here Cadbury is the main player with Cadbury Bournvitta
and Cadbury Bournvitta 5 Star Magic (Cadbury, 2008).
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CHALLENGES OF CADBURY
Cadbury challenges commuters with 'Eyebrow Language'
Cadbury is capitalizing on the success of its global "Eyebrows" campaign with a
Canadian print and OOH campaign called "Eyebrow Language."
Targeting the younger end of the adult demographic, the campaign's creative is based
on the "Eyebrows" TV spot, in which two kids with crazy eyebrows pose for a photo. The
"Eyebrow Language" creative, made exclusively for the Canadian market, features ‘brows in
different shapes that readers can translate into letters and words. Depending on the medium,
the message either offers the reader a chance to win a prize or, in the print ads, to participate
in a stunt executed at a specific time and location. On Monday, the decoded newspaper ad
invited readers, hundreds of whom showed up, to a sidewalk at College Park in Toronto,
where they were to twirl, clap and yell "chocolate" to win a prize.
The media buy, handled by Cossette with creative by The Hive, are focused on
Toronto and Vancouver, and include daily commuter newspapers, a billboard at Yonge-
Dundas Square in Toronto, transit ads in both cities and an online banner buy. Launched last
week, the commuter-paper ads are running three days a week for four weeks, changing each
time, as are the OOH ads.
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"We really wanted to make sure this had high impact with the consumer," Nina
Purewal, brand manager, Cadbury Dairy Milk, tells MiC. "This is a very engaging promotion
and, as you can see as you go through the elements, once [people] have committed to the
promotion and decoding the messages, they're really committed. It's really all about high
engagement."
The campaign has also taken over the Dairy Milk website, which opens to a secret eyebrow
message and Eyebrow Language decoder overlay. The site also includes extra phrases to
decode and a ringtone of the song from the ad to download. Visitors can also watch the
original "Eyebrows" ad that first aired in Canada Sept. 14.
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Cadbury in the England and other Europeans Countries.
Cadbury Schweppes faced opposition to the deal in several countries. Cadbury
Schweppes is to keep control of its soft drinks brands in most of Europe instead of selling
them to Coca-Cola, following concerns about delays in winning approval from European
regulators. Under the original £1.14bn deal, announced in December last year, Coca-Cola
was to buy all of Cadbury's drink brands except those in the US, France and South Africa.
Cadbury has now abandoned plans to sell the brands in another 20 European markets,
fearful that such a move would be blocked by competition watchdogs.
The countries where Cadbury Schweppes will now retain control include Belgium,
Norway, Spain, Switzerland, The Netherlands and Germany which was reportedly ready to
reject the plan later this week.
The companies still hope to receive approval for the sale in the UK and Ireland and
98 other countries worldwide. Cadbury chief executive John Sunderland said both companies
had researched potential regulatory hurdles in 20 countries before announcing their plans in
December.
However, they now faced lengthy and complex regulatory resistance against the deal
in some European countries which would "probably result in unacceptable delay". The delays
have also forced the companies to revise their aim of having the entire sale completed by the
middle of this year. Instead, they now expect the deal to be finalised by July only in about
half the countries which have already given their approval or where regulatory clearance is
not required.
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CADBURY ASIA
Its contents of two countries they are INDIA & PAKISATAN
CADBURY INDIA
In India, Cadbury began its operations in 1948 by importing chocolates. After 60
years of existence, it today has five company-owned manufacturing facilities at Thane, Induri
(Pune) and Malanpur (Gwalior), Bangalore and Baddi (Himachal Pradesh) and 4 sales offices
(New Delhi, Mumbai, Kolkata and Chennai).
The corporate office is in Mumbai Currently Cadbury India operates in four
categories viz. Chocolate Confectionery, Milk Food Drinks, Candy and Gum category. In the
Chocolate Confectionery business, Cadbury has maintained its undisputed leadership over
the years. Some of the key brands are Cadbury Dairy Milk, 5 Star, Perk, Éclairs and
Celebrations.
Cadbury enjoys a value market share of over 70% - the highest Cadbury brand share
in the world! Our flagship brand Cadbury Dairy Milk is considered the "gold standard" for
chocolates in India.
Cadbury’s Dairy Milk started in Bourneville in the UK in 1905, but the journey with
true chocoholics started in India 43 years later. Cadbury’s has been the number one market
leader in chocolate sales for years. Cadbury’s has claimed that it has been the source of every
Indian’s moment of happiness, joy and celebration – whether this is true, it’s doubtful. To
this day, ‘Cadbury Dairy Milk’ alone has a 30% value share in the Indian chocolate market.
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In the early 90’s, indulgent chocolates were only seen as a child’s heavenly dream -
only rewarded for good behaviour, or perhaps even for a bribe. However, in the mid 90’s a
new campaign was released, (‘The Real Taste of Life’) re-defining the outlook from “just for
kids” to the “kids in all of us”. This new campaign brought out the forgotten child in every
adult, flushing back memories of the very first moment they tasted chocolate. Cadbury Dairy
Milk soon became the ideal expression of “’spontaneity’” and “’shared good feels’”.
The company was founded by Jacob Schweppes in 1783. Cadbury Schweppes is
headquartered in London. Cadbury Schweppes is the No.1 confectionery and third largest
soft drinks company in the world. We manufacture, market and distribute branded
chocolates, confectionery and beverages that bring smiles to millions of consumers across
180 countries Cadbury India began its operations as a trading concern in 1947.
The first taste of chocolate was defined by Cadbury in the Indian sub continent. It has
been more than 50 years of calling chocolates “Cadbury” in India. The company today
employs nearly 2000 people across India. We work together to create brands people love. We
believe wholeheartedly that the way to create brands people love is through our people. If
you desire to work with the world’s number 1 confectionery company we’ve got great
opportunities in store for you. You will typically start your career with us in a function in one
of our many businesses. You will then be able to choose whether to develop your career as a
generalist or specialist. Whichever path you choose, you will be encouraged to gain
experience of different businesses, brands and people.
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Product and Services:
Cadbury Schweppes Public Limited Company operates as a beverage and
confectionary company worldwide. The company’s beverage products include carbonated
water, apple juice, quinine-based carbonated drink, carbonated soft drink, non-carbonated
soft drink, and tomato-based drink under Dr.Pepper, Schweppes, 7 Up, Snapple, Mott's,
Hawaiian Punch, Clamato, and Schweppes Tonic Water brand names. Its confectionary
products comprise cocoa powder, sugar confectionery, cough drop, chewing gum, milk
chocolate bar, sugar-coated gum, and breath freshener, which are marketed under Cadbury,
Bassett’s, Maynards, Halls, , Dentyne, Cadbury Dairy Milk, Chiclets, Clorets, Stimorol,
Trident, Bubblicious, and Sour Patch Kids brand names. Cadbury Schweppes sells its
products through direct sales force, third party bottlers, independent distributors, and other
independent companies.
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CADBURY PAKISTAN
Confectionery and Chocolate industry of Pakistan in 2009 is an analysis of branded
(domestically produced) confectionery and chocolate market of Pakistan. The article reveals
close estimates of sales turn over of major active players in the industry. It also examines
contemporary trends in the local confectionery and chocolate market, with an emphasis on
providing some useful information about the structure, norms, challenges and competitive
landscape of the industry. Before proceeding to our core topic, it would not be unwise to
have a look at the snapshot of country’s socio-economic indicators.
Despite Pakistan’s confectionery and chocolate industry has enjoyed an emerging and
growing trend in the recent past yet its size and growth pattern has been far inconsequential
compared to other countries of Asia-pacific region. The industry has grown with an average
annual rate of 6.5 to 7.5 % during 2002-2008. Domestic brands dominate the market
accounting for more than 85% of total value sales of the industry.
The industry as a whole can be divided between two broader sectors namely
organized sector (branded segment) and un-organized sectors (generic segment). The
branded segment is more of monopolistic in nature where there are nine prominent, active
players in the competitive landscape of this sector.
The branded confectionery and chocolate market is highly price elastic and growing
with the bulk of sales concentrated in mid-price range products. Urban markets account for
the major share and also for a higher penetration rate.
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The industry has faced “coin-barrier” issue in sugar confectionery products at least
three times during last three decades when all key players unanimously agreed to increase
their products’ price due to escalating prices of raw materials (first from 25 paisa to 50 paisa-
in mid 80’s, than 50 paisa to Rs. 1 – in mid 90’s and lastly from Rs.1 to Rs.2-in late 2008)
whereby the active players of the industry were compelled to raise their prices not less than
any thing but 100% because next jump to coin / price denomination was such that they had
no way out. It would be interesting for the readers to learn that such moves however have
always been proved to be a “bitter pill” for the industry as it brought immense resistance
from consumers and trade. In some of the cases decline in sales as a reaction of price increase
was so huge that it forced to leading brands to take their decision back yet they were not able
to retrieve their original volumes again. Mitchell’s Milk Toffees and Kidco 4ever are classic
examples. To avoid and defer this situation (up to last extend) pro-active companies in
Pakistani confectionery industry adopt three kinds of strategies, without reducing or with
slightly reducing trade margins. Namely reduce the no. of units per pack, unit size, and
packaging ( in an endeavour to reduce cost) Compromising in product quality by reducing
qty and/or quality of expensive raw material by using close substitute that is available
relatively at cheaper price as a replacement of expensive raw materials.
Distribution and Selling strategy:
About (70-80) % sugar confectionery and chocolate sales generate through wholesale
channel depending upon the nature of product and strategies of manufacturing companies.
Almost all but precisely Hilal and B.P rely much on wholesale channel to generate bulk
chunk of their total sales. To support their sales through this channel they advertise heavily
on electronic media to create brand pull for their brands and subsequently it force retailers to
buy these brands from whole sale. The underlying reason behind limited coverage in retail
sector by these two companies is they do not have premium priced items that could yield
sufficient revenues to make retail distribution viable for their distribution partners so they do
a limited coverage in retail sector. Since these companies themselves do not emphasize on
retail penetration so their distributors also take an escape route and adopt the way of easy
selling through WS. However there are companies like Cadbury, Candyland, Mitchell’s and
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Mayfair that are fully aware of the importance of retail penetration .Hence these companies
pay due importance and attention to retail coverage and subsequently allocate resources for
retail sector. As stated earlier the emphasis of Hilal and B.P has always been on building
consumer pull through mass media advertising (mostly through television) and pushing their
brands through wide-spread network of distributors and wholesalers throughout the nation.
This combination of “Push & Pull “ has proved to be a successful tool in their cases
because the nature of their brands also support this strategy as they produce products of mass
market with as low price as Rs.1 , 2 and beyond. Because of this pricing strategy their
products are equally popular in rural and urban towns among middle and lower middle class.
B.P and Hilal having this advantage enjoy the benefits of a wide-spread distribution network
in 300+ towns and over 350 distributors nation wide (as they have more than one distributors
in some towns). They always try to adopt cost leadership strategy and generate revenues
through high volumes of sales. Frequent launches, re-launches, re-introduction of old brands
with slight modifications, withdrawals, adjustments in packaging, product designing and
even recipe change are a common phenomenon in the brands of these two major companies.
Contrary to this Cadbury’s , Candyland and Mitchell’s believe on establishing brands and
brand equity and therefore protraction of quality up to last possible extend remains their top
priority.
Until mid 80’s chocolates was supposed to be the product of upper and upper middle
class segment. In 1983 Mitchell’s Jubilee was launched first time in Pakistani market at
Rs.3.50 per bar. Due to its attractive packaging, quality, affordable price and an intact media
support the brand received un-matched reception and became a success story in Pakistani
industry. The brand is still very popular among masses and available in three different price
points at Rs.2, Rs.5 and Rs.10. In early 2000 Cadbury’s introduced quality products with
affordable price. The launch of Dairy Milk (Rs.5/-), 5 Star (Rs.5/-), Velvet (Rs.5/-) and Perk
(Rs.3) with attractive dispensing-chillers was the turning and revolutionary point for making
chocolates the choice for every one. The role of Cadbury’s for expansion of chocolate market
in Pakistan will always be written in golden words.
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Challenges:
The most common challenges to this industry are soaring prices of raw material, high
excise and import duties on raw material, high entry barrier because of strong monopolistic
competition and influx of cheap imported brand through gray-Channels.
Cadbury Advertising Timeline their products:-1867
Cadbury Cocoa Essence began advertising. They highlighted the purity of the product with
the slogan ‘Absolutely pure, therefore best’.
1900
Cadbury gained the help of a popular artist Cecil Aldin to create a series of posters and press
adverts to advertise their products.
1920s-30s
Cadbury promoted their products through the war by creating the ‘Chocolate Mystery Man’
character. He gave out free gifts, but only if he could be found.
1928
Cadbury Dairy Milk poster campaigns began using the iconic ‘glass and half’ slogan and
image to stress its high milk content.
1930s
Cadbury’s status as the nation’s favorite brand becomes the most important feature of the
company’s advertising.
1938
150,000 people went on the factory tour every year. It began in 1902 to link people more
closely with Cadbury.
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1939
During the 2nd World War Cadbury Dairy Milk disappeared. Cocoa and chocolate was under
government restriction and only rationed chocolate was sold.
1951
‘The Bournville Story’, a film promoting Cadbury, was made and shown cinemas around the
country.
1955
Cadbury Drinking Chocolate was one of the very first ads on commercial television in this
year.
1957
Cadbury commissioned thirteen one-minute films shown as TV adverts. These ads described
the harvesting of the Cadbury chocolate ingredient.
1959/60
Flake TV advertising began; it used the iconic theme of a woman sensually enjoying a bar of
chocolate on her own.
1970-1974
Memorable television ads raised the sales of Cadbury Fruit & Nut and Whole Nuts by 73% .
1983
The Wispa Bar launched including televised ad campaigns featuring comedians and comic
actors talking about the new bar.
1990
Cadbury World opened a £10 million replacement for factory tours. 350,000 people visited in
the first year.
1996
Cadbury began a £10 million annual sponsorship of Coronation Street, reaching an audience
of eighteen million people.
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2007
The Cadbury ‘Gorilla’ ad premiered, immediately becoming one of the most popular adverts
in recent year.
2008
Cadbury and Schweppes demerged, splitting its confectionery and drinks business.
2009
Kraft made a surprise proposal to take Cadbury over for £10.2bn.
PRODUCTS OF CADBURY
Past product of Cadbury
1) Amazin’ Raisin:-
Milk and plain chocolate covered nougatine and caramel bar with raisins1971-1978
were the glory days of the Amazin’ Raisin bar. Who can forget the cockney knees-up of a TV
jingle: ‘It’s amazin’ what raisins can do/Full of goodness and it’s all for you/It’s got two
kinds of chocolate and caramel too/And it’s got raisins and they’re good for you’. Try
mentioning it to raisin fans of a certain age and see them come over all wistful.
2) Aztec:-
Milk and chocolate nougatine and caramel – a feast of a bar. Hugely popular when it
hit the shops in 1967, Aztec made a big impact, with displays including a life-size cardboard
Aztec warrior in 100,000 shops, and a lavish TV ad filmed at a real Aztec temple in Mexico.
Alas, like its namesake, this mighty bar was conquered in the early 70s, making just a brief
reappearance in 2000 – will its like ever be seen again?
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3) Boost Coconut& Boost Peanut:-
Milk chocolate covered bar with a toasted coconut and caramel centre. (1985-
1994).Caramel and peanut bar covered in milk chocolate. (1989-1994) Launched in 1985, the
mighty Boost evolved over time with various versions on sale including Coconut Boost and
Peanut Boost. 2003 even saw a Boost featuring the caffeine-rich Guarana berry appearing on
the shelves, as well as a Boost Glucose for extra energy. Vic Reeves and Bob Mortimer’s
much-loved Lone Ranger ad (complete with surreal strap line ‘it’s slightly rippled with a flat
underside’) was a classic of its time. Five Boys Milk Chocolate.
4) Milk chocolate bar:-
Launched in 1902 it was once the most famous chocolate bar in the world, with its five
pictures of a five-year-old lad called Lindsay Poulton showing emotions from Desperation
(no chocolate), to Realization (finding out he’s got Fry’s Chocolate). Apparently at the photo
session, Lindsay wasn’t looking miserable enough for the first photo, so his father (the
photographer) tied a cloth soaked in nasty smelling ammonia round his neck to achieve the
‘Desperation’ face! The bar was retired in 1976.
5) Fry’s Five Centers
Five assorted fruit flavored crèmes. If you’ve tried Fry’s Chocolate Crème, imagine a
bar like that but with five different flavored fillings: raspberry, lime, vanilla, coffee and
orange. You’re imaging Fry’s Five Centers, which launched in 1934 but went to the great
conveyor belt in the sky in 1992.
Fuse Raisins, peanuts, crispy cereal and fudge pieces fused in delicious
Cadbury milk chocolate.
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Fuse exploded into the UK marketplace on ‘Tuesday’ 24th September 1996. It was a
chocolate bar with a difference – instead of having a chocolate coating on the outside; the
yummy ingredients were suspended right the way through it. 40 million bars were sold in the
first week, and within eight weeks it was the UK’s favorite’s confectionery. Alas, ten years
later and Fuse fizzled off the shelves, but it’s fondly remembered to this day.
6) Inspirations:-
Textured fruit flavored centers covered in milk, white and dark chocolate.
Inspirations launched in 1989, in a carton with sliding drawers. Initially highly successful, it
was retired in 1998.
7) Lucky Numbers:-
In 1958 Cadbury launched a new assortment of chewy sweets, some covered in
chocolate and some not. These Lucky Numbers each had an individual number on the
wrapper, hence the name. The brand was retired in 1968.
8) Milk Tray Bar:-
Eight Milk Tray Chocolates, in a bar. Imagine a box of Milk Tray Chocolates. Now imagine
picking eight of the most popular chocolates – keeping their distinctive shapes – and putting
them in a bar! The Milk Tray Bar had a cult following back in the 1970s and people still
reminisce about it to this day. It was originally launched in 1947 and was a favorite through
to 1981.
9) Skippy:-
Milk chocolate with caramel and wafer centre launched in 1960.
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‘It’s got a crunch in the biscuit and a munch in the middle’. A classic 1960s TV ad for
Skippy shows a Swinging London couple getting off their scooter and going into a trendy
coffee bar to pick up their Skippy.
TODAYS PRODUCTS OF CADBURY
1) Cadbury Celebration Cake with Buttons:-
Make your celebrations really special with a delicious chocolates treat. From the
indulgent Flake Celebration Cake to the Cadbury Buttons Party Cake. Cadbury's ranges of
Party Cakes are perfect for any special occasion.
2) Cadbury Hot Choc Chunks:-
Cadbury Dairy Milk unveils a yummy invention which heralds a new dawn for hot
chocolate lovers: Hot Choc Chunks!. The chunks of real chocolate melt into milk to make a
smooth delicious creamy treat! Cadbury Hot Choc Chunks is now Fair-trade certified.
3) Cadbury Clusters:-
Cadbury Clusters are tasty treats of crunchy flakes and juicy raisins tumbled in
scrumptious Cadbury milk chocolate. They're wonderfully odd look odd, taste wonderful!
Whether you fancy a daytime nibble to cheer you up, a little bit of evening indulgence or a
bag to share with friends –Cadbury Clusters are ideal! Launched in 2009, they're now
available across the UK.
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4) Cadbury Picnic:-
Crispy wafer and chewy caramel covered in peanuts, raisins and Cadbury milk
chocolate. Picnic's been going since 1958 and you'll still find its nobly goodness in a shop
near you. Probably one of the most memorable campaigns for the brand was one which
featured a camel called Calvin which was singing a song about the 'chew' of the bar.
In Australia it's marketed as being 'deliciously ugly'! How rude!
5) Dairy milk:-
The story of Cadbury Dairy Milk started way back in 1905 at Bourneville, U.K., but
the journey with chocolate lovers in India began in 1948.The pure taste of Cadbury Dairy
Milk is the taste most Indians crave for when they think of Cadbury Dairy Milk. The variants
Fruit & Nut, Crackle and Roast Almond, combine the classic taste of Cadbury Dairy Milk
with a variety of ingredients and are very popular amongst teens & adults. Recently, Cadbury
Dairy Milk Desserts was launched, specifically to cater to the urge for 'something sweet' after
meals.
Cadbury Dairy Milk has exciting products on offer - Cadbury Dairy Milk Wowie,
chocolate with Disney characters embossed in it, and Cadbury Dairy Milk 2 in 1, a delightful
combination of milk chocolate and white chocolate. Giving consumers an exciting reason to
keep coming back into the fun filled world of Cadbury.
6) Gems:-
Launched in 1968, Cadbury Gems has captured the fancy of children for more than
4 decades now. Supported by a number of popular TVCs since the Eighties, Gems is
uniquely positioned because of its chocolate taste, colorful buttons and multiplicity. The taste
and fun associated with eating Cadbury Gems and the joy of sharing it with friends has also
made the brand a source of nostalgia for older consumers. Simply put, eating Gems brings
happiness, fun and mischief to a kid's world. Which is why, Cadbury Gems has always had
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Fun and Masti as the proposition in all its communication. Gems, available in a Pouch and a
Carton, are also available in a Re. 1 pouch.
A gem has continuously been relevant and exciting for consumers with salient
messaging, contemporary packaging graphics, pack innovations and consumer promotions.
In December 2000, the Gems Tube Pack with a flip-top was launched, which became an
instant hit with kids. In succeeding years, the Tube Pack has continued to excite kids with
different ball games on its flip-top.
7) BOURNIVITA:-
Cadbury was incorporated in India on July 19th, 1948 as a private limited company
under the name of Cadbury-Fry (India). Cadbury Bournvita was launched during the same
year. It is among the oldest brands in0 the Malt Based Food / Malt Food category with a rich
heritage and has always been known to provide the best nutrition to aid growth and all round
development.
Throughout its history, Cadbury Bournvita has continuously re-invented itself in
terms of product, packaging, promotion & distribution. The Cadbury lineage and rich brand
heritage has helped the brand maintain its leadership position and image over the last 50
years.
8) CADBURY ECLAIRS:-
Éclairs was first discovered by a local confectionery firm in London,
England in the 1960s. The firm then became part of Cadbury in 1971making Cadbury Éclairs
the second largest brand in the company. The experience of eating a Cadbury Dairy Milk Éclair
is truly unique because of its creamy caramel exterior and rich Cadbury Dairy Milk chocolate at
the center. In 2006 Cadbury Dairy Milk Éclairs launched crunchy Éclairs with a hard caramel
outside and delicious Cadbury Dairy Milk chocolate inside called Cadbury Dairy Milk Éclairs
Crunch.
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CADBURY TOMMORROW
The Cadbury new product department may not be staffed by mysterious elves or
people who wave magic wands but it’s every bit as magical.
We employ the very best new product people in the business and they spend all their
working hours inventing, experimenting and playing with chocolate, and coming up with all
sorts of weird and wonderful ideas. A great many of these ideas will never go further than
someone’s desk; but the most delicious will end up on the shelves of your local shop.
Our new product teams come from many different backgrounds. Some of them are
master chocolates, some come from a professional catering background, and others are
scientists. But they’ve all got something in common; a love and understanding of chocolate
that borders on obsession.
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MARKETING STRATEGIES
Meaning:-
• The marketing strategy is the means of achieving the corporate objectives.
• It gives messages to the stakeholders, or publics. It says:
"This is where we are going", and
"When we will get there", and
"This is our stance".
Types of Marketing Strategy:-
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• One of the most fundamental issues which a company must decide on is the type of
marketing strategy, or approach, that they will adopt.
• There are three basic marketing strategies which any company can follow:
Undifferentiated marketing
Differentiated marketing
Concentrated marketing.
Undifferentiated Marketing:
• Here there is a standard, unchanged product and a standard, unchanged marketing
effort.
• This strategy can reduce costs (e.g. marketing, production) but will encounter wastage
in promotional activity and possibly in distribution.
Differentiated Marketing
• Here the company segments its markets and offers modified products to different
segments.
• The marketing mix elements will also be modified to suit the requirements of the
chosen segments.
Concentrated Marketing
• Here the total marketing effort is aimed at one market segment.
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• This strategy is really aimed at the exploitation of a limited market area and tends to
be used by those companies who have highly specialised products. It is "niche
marketing" by another name.
It is common for organisations with a diverse product range to use a combination of
all three strategies for different parts of their product mix
Marketing Strategies of Cadburys
In order to increase sales Cadburys needs to undertake range of marketing activities
before deciding upon the best way to encourage the purchase of its product. When
identifying the basic principals which Cadburys must apply to its marketing will be its basic
objectives because all business must have objectives it allows them to increase sales and
make profit.
Corporate aims are the long term intentions of a business, whereas corporate
objectives are the specific targets required to achieve the aims.
The common aim and objectives of the corporation such as Cadbury includes the following:
1. Survival
2. Profit maximization- which is often taken to be the reason why firms
Exists and to be the primary objectives in practices most firms have hierarchy of objectives
when a firms survival is threaten it may Profit maximized in order to restore its financial
health.
3. Growth- which includes Cadbury selling new products or expanding
Overseas.
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4. Diversification- which is the spreading of business risks by reducing dependence on one
product.
5. Sales maximization- which is the increasing of sales
6 Improving the product image-which includes creating a new logo or launching a new brand
of product and creating more attractive packaging.
For example, Cadbury set out two objectives for the development of their chocolate, Fuse.
These were:
1. To grow the market for chocolate confectionery
2. To increase Cadbury's share of the snacking sector
When launching a product the company Cadbury’s had to make sure that any new
product in the snaking sector must establish point’s of difference, creating a unique selling
proposition (USP) i.e. a product with unique appeal which is not shared by any of its
competitors. Referring back to the example of Fuse, Cadbury lost a lot of money testing out
the combination of various ingredients and more than 250were combined before the recipe of
the chocolate was finalized. As the products are developed, Cadbury tests them to ensure that
consumers are willing to buy them.
Cadbury then promotes its products in various ways such as the use of above the line
promotion, which is where a product is advertised through consumer media such as
television, magazines, newspapers and radio.
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CADBURY INDIA TARGETS THE ADULT SEGMENT WITH
CADBURYS DAIRY MILK:-
Cadbury India uses emotional appeals in advertising. The advertisements focused on the
relationship between the parents and their children, where parents expressed their love by
gifting the child a Dairy Milk.
CADBURY INDIA WANTS TO GET IN ROOT OF OUR
TRADITION :-
If you can recall advertise which is now being frequently played in our radio station
and TV channels “Mitha hai khana aaj Pehli Tarikh Hai”. Means Cadbury marketing
strategy in India wants to get in root of our tradition.
Earlier if you can remember when we have first day of salary we bring some sweets to our
home. Still most of family follows this tradition so; Cadbury has targeted this area now by
its own creative marketing style...
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When you get pass what you do? (We will have common answer "paide khilao", give sweets
to all to express happiness) .. Remember the advertise "PAPPU PASS HO GAYA"
Now Cadbury wants our traditional sweets to its "Cadbury Chocolates"
Another one example of Cadbury marketing strategy...
What you bring on Rakshabandhan?
What you bring on Diwali?
Again common answer "Mithai","sweets”, What Cadbury wants? Cadbury want us to replace
this "mithai" with "Cadbury celebration chocolates".
Their slogan is "kuch mitha ho Jaye" means when you want to eat sweets go for Cadbury :).
In College campus it is deep routed now.. People used to bet for dairy milks, 5-stars. Cadbury
has linked its brand with Friendship day, valentine day, mother’s day, father’s day and many
other days.
Cadbury has also entered into a strategic alliance with Face book and Orkut to further
promote the core message of the brand. Cadbury’s has created a Facebook application that
urges all Face book members to send invitation to their near & dear ones for what they wish
to have this Diwali. This innovative marketing tool revolves around the central theme of the
Diwali Celebrations Ad Campaign, ‘Iss Diwali Aap Kise Khush Karengey?’
Cadbury’s has extended its marketing strategy to the internet space and has launched
an innovative & interactive website www.meethamoments.com wherein one can experience
the meetha thought via sending of personalized e-greetings to their friends & family. It also
allows visitors to view the latest commercials, listen to the radio spots from Cadbury and also
find a link onto other internet applications.
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Future Strategy
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
[small] piece products at low price points," stated Cadbury chief executive Todd Stitzer. …
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Positioning of Cadbury
Cadbury India has unveiled a new campaign that continues with the brand's 'Kucch
Meetha Ho Jaye' positioning. Created by Ogilvy & Mather, the campaign revolves around the
theme of 'Pay Day', which is associated with happiness by most people. Brand positioning is
the aspect of the brand actively communicated to the target audience, specifically, its
competitive advantage, values and imagery. It is strongly related to the perception and image
of the product. When devising a positioning strategy for a product, marketers must establish a
unique and distinctive image of that product in the mind of the consumer. This will
differentiate a company’s product from its competitors.
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Cadbury India Ltd has announced that mega star Amitabh Bachchan will be
the company's new brand ambassador.
He will endorse and promote Cadbury chocolates for a period of two years.
As brand ambassador, he will play a key role in brand and product
communication on television, in print and outdoor media.
Cadbury has launched a strengthened, new 'purity sealed' packaging for Cadbury
Dairy Milk. The new packaging for 13g (Rs 5) is double wrapped for maximum protection.
The chocolate is wrapped in aluminum foil and enclosed in a poly flow pack, which is
completely sealed on all sides. In the second phase, the larger Cadbury Dairy Milk packs will
come in poly-coated aluminium foil, which will be heat-sealed and then wrapped in the
branded outer package. Both these steps are a 'first ever' in chocolate packaging in India.
"Over the last few months, we have had some cases of infestation due to improper
storage conditions. As a company committed to ensuring that our consumers enjoy a pristine
bar of chocolate each time, we decided to take steps to reduce dependency on storage
conditions to the extent possible," said Bharat Puri, managing director, Cadbury India Ltd.
"Cadbury will do everything it can to ensure that every bar of chocolate that a consumer buys
comes full of goodness and rich taste."
Amitabh Bachchan is Cadbury brand ambassador
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Commenting on Amitabh Bachchan as brand ambassador for Cadbury chocolates,
Puri said, "There is a perfect fit between Amitabh Bachchan and Cadbury chocolates - their
timelessness, and the love and trust they both share with the people across India, makes this
an ideal partnership. Moreover, Mr Bachchan has a universal appeal that extends to everyone
from 6 to 60, just as our chocolates do.
We believe his endorsement of Cadbury Dairy Milk will go a
long way towards our objective of increasing chocolate consumption
among all ages of consumers."
Amitabh Bachchan said, "Most of you may not know this, but I have been a brand
ambassador for Cadbury for the last 55 years. Only, now it is official. Bringing smiles,
spreading happiness and joy amongst millions of people in India is what Cadbury and I shall
be continuously working towards."
The new 13g (Rs 5) Cadbury Dairy Milk packaging is currently available only in
Maharashtra and the national rollout will take place over the next three weeks. New
packaging for the larger bars of Cadbury Dairy Milk, Fruit & Nut, Crackle, Bournville,
Caramello, and Double Deck will be completed in six weeks.
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Cadbury’s, Nestle lose market share to imported chocolates
COMPETITORS OF CADBURY
There are no many competitors in the confectionary industry that Cadbury is
Competing with. Cadbury is a market leader in the industry. The other competitorsare small
compared to Cadbury and therefore the level of competition is expected tobe a bit low.
Sales of imported chocolate brands, such as Mars and Snickers, have outpaced those
of Cadbury's and Nestle's locally made chocolate in modern retail outlets, according to top
retailers.
As a result, these companies will lose their pricing clout. Imported chocolates are not
only in demand but also offer bigger margins as compared with the locally made brands to
retailers. Cadbury is already at loggerheads with the Future Group, the country's largest
retailer, on the deals and margins it offers. Seeing the increase in competition, Cadbury India
is also looking at introducing more sophisticated forms of chocolates from its global portfolio
to boost consumption and retain market share.
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In our stores, the sales of imported chocolates are double the sales of domestic
brands. Their sales are growing at triple digits. Imported brands offer newer chocolate
formats to consumers, resulting in their higher demand," said Sadashiv Naik, CEO, Food
Bazaar, Future Group. Echoing this view, vice-president (marketing) of Spencer's Retail
Samar Singh Sheikhawat said, "Sales of imported chocolates has become equal in value to
that of the domestic brands put together. Whereas the imported chocolates sales are growing
at 100 per cent, made-in-India brands are growing at around 25 to 30 per cent."
Anand Kripalu, managing director, Cadbury India, said, "The competition in the
chocolate market has increased significantly. In spite of this, we have been able to hold on to
our 70 plus per cent market share. We would look at introducing newer products to boost the
consumption of chocolate in India. Chocolates are not consumed on daily basis, so we would
look at positioning them for everyday consumption from being consumed only on select
occasions."
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Conclusion:-
Over the last year, the Cadbury Chocolates brand has moved from being perceived as
a Choclates for “younger person” to choice their Choclates for fun, enjoyment and love as
well as for the “Elder person” also professionals. This has been made possible not just by
new packaging but by a completere positioning strategy which changed the image of the
brand and the perception of who can and should enjoy it.
This company project has demonstrated “CADBURY’S COMPANY AND
RESPECT TO ITS MARKETING STRATEGY” that has proved to be extensive through and
of great benefit to the company in furthering its competitive advantages.
In this project it possible to see the success of Cadbury’s in it’s indorse its strong
potential to continue to do well.
RECOMMENDATIONS:-
• Maintain dominance in chocolate, confectionery and market leadership in brown
drinks.
• New channels such as gifting, child connectivity and value for money offering to be
the key growth drives.
• Grow volume of 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 Éclairs.
• One new major product launch every year.
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Bibliography:-
1) www.slideshare.com.
2) www.cadburyworld.com.
3) www.docstoc.com.
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