Marketing Management – IProject Presentation on Cadbury

Submitted By : Group - 6 AnirudhK M - 1401066 Dinesh M Krishna - 1401072 Jatin Balani - 1401078 Kunal Nagpal - 1401084 Piyussh - 1401090 Raghu Arun T V N - 1401098

• Increasing gift culture where celebrations are substituting “Mithai”.• Penetrating rural markets.• Adding new flavours and tastes to its product line along with nutritious bars for health conscious segment.• Growing base of affluent consumers.

• Raise in distribution costs and raw material costs .• Threat of new entrants due to globalization. • Increasing health consciousness among people.• High price elasticity.

WWeakness

• Poor technology in India compared to other countries.• A few cases on product recall which can hamper brand image. The quality control needs to be strengthened.

BCG Matrix for CADBURY INDIA

Market Share

Busi

ness

Gro

wth

Rat

e

LowHigh

Low

High

PEST ANALYSIS

Political• Stable government• Liberal trade policies and regulatory reforms.

Economic• Growing middle class/urban population which leads to increase in demand.• Inflation remains a worry.

Social• Increasing gifts culture- increase in demand.• Per capita income in India expected to increase

Technical• Established a tie-up with Reliance web world wherein, when students checked their exam results via Reliance mobiles, they were shown a Dairy Milk advertisement. This effort was awarded the Bronze Lion at the Cannes Media awards in 2005.• It has to update the current technology in order to face the competition at the international level

Segmentation Behavioral

◦ Loyalty towards Cadbury chocolates e.g. Cadbury is synonymous chocolate with in India.

◦ Benefit segmentation on dark chocolate benefits.

Age and Life-cycle ◦ Products are segmented based on age e.g.

Gems are targeted towards children but temptation targeted towards adults.

Occasion segmentation ◦ Cadbury Celebrations gifted on

occasions / festivals.◦ Brand is evolving as a substitute to the

Indian Mithai tradition.

Psychographic◦ Based on personality segmentation. E.g.

Bourneville “ you earned it .“

Demographic◦ Based on consumer class / income group.

E.g. Cadbury Temptation and Bourneville are targeted towards high end customers targeted in high-end retail outlets, hotels, airports, departmental stores.

Impulse Segment◦ The brand recall of Cadbury ensures

impulse buying by consumers

Targeting Evolution of Cadbury brand from a child’s delight to a targeted youth

segment.

Targeting children through Bournvita Quiz Contest which made a perception that bournvita helps in increasing IQ.

B2B marketing on occasions and festivals such as Diwali gifting for corporate

Targeting Rural population through temperature tolerant products such as Cadbury shots which are priced as low as Rs 2 .

Positioning Chocolate – Kids product

• Cadbury – Expression of Love

Positioning Cadbury – Celebrating Occasions

Positioning• For kids – Cadbury Gems/5 star/‘Dairy milk wowiee’ is synonymous with chocolate

• For youth, Dairy Milk and Temptations are positioned as expression of love

• For chocolate lovers, Bourneville is positioned as quality dark chocolate (best cocoa from Ghana)

• For high indulgence category, Silk/Temptations is the go to product

• For families Cadbury celebrations are the way to celebrate occasions (Kuuch meetha ho jaye) or start new things (Shubh aarambh)

Perception Map of Cadbury Products

No Products Here

Perception map of Indian Chocolate Industry

Augmented

Actual

Core

Sweet DelicacyCelebrating Culture, Relationships

Hunger Snack

Iconic Cadbury Brand

Semi-Divided Rectangular Bars

Golden Foil

Purple Packaging

Health Benefits

Convenience Product

Mood Enhancement

BrandingDairy Milk Projected as a Milk Product – Ad Campaign, Packaging, Taglines

Trying to replace sweets from desserts with campaigns like “Meethe me kya hai” and Kuch Meetha ho jaye

Part of every celebration –Diwali, Rakhshabandhan, Campaigns like ‘Pappu paas ho gaya’

‘Say what you see’ –Positive association and build on the joy factor

Pricing Strategy• Price is the only “P” in marketing mix which generates revenue. • Cadbury product line pricing ranges from 0.50 paisa to 600 rupees. • Cadbury being a market leader with 70% market share in chocolate industry, It is mostly following a cost plus pricing strategy for its products with approximate margin of 20%.• This pricing strategy has disadvantages as it is subjected to variation in the prices of raw materials and distribution channels. But Cadbury might find it easier to absorb the rise in input costs with its products at different prices.• Cadbury responds to increase in cost of raw materials cost by selling at the same price but reduction in the weight of the chocolate sold.•Table showing various weights and prices of CDM

Weight(in grams)

Price(in rupees)

17 10

60 60

160 150

TABLE TO ILLUSTRATE DIFFERENT CATEGORY PRODUCTS AND PRICESCadbury product Weight in grams Price(in rupees)

Bournvita 1000 370Oreo 120 30Gems 21.36 15Bournville-Rich cocoa

44 40

• Cadbury follows income based segmentation.

• In order to cater to customers in all income levels, Cadbury prices its products in different price ranges.

Promotion

Advertisements aimed at conveying the idea-

• No specific occasion is required for eating Cadbury chocolates.

• In every adult, there is a child(“The Real Taste of Life”- launched in the 90’s attempted to capture the child like spontaneity in every adult).

Celebrities Endorsements

1. Preity Zinta -Perk(To rope in teens)

2. Amitabh Bachchan -The Big B factor.

• Samples- A unit of Oreo with Bournvita

• Contest-Bournvita kid contestCustomer Promotion

• Shop Banners• Speciality Advertising Items-

Shelves displaying Cadbury logo

Trade Promotion

• KBC painted in Cadbury’s Colour(Purple)

• Convention and trade shows

Business Promotion

Cadbury Halls Éclairs

Dairy Milk5-StarPerk

Celebrations

Pull

Push

Social Media Marketing#FirstLoveIs campaign – To promote its newly launched limited edition pack.

#MeethiMemories - by Cadbury Celebrations has created a recall in the minds of its customers by giving them a little bite of the brand in form of an illustration.

Cadbury Celebrations is positioning itself as a brand that is spreading joy!- by integrating its online and offline campaigns ‘Iss Diwali Aap kisse khush karenge’.

Placement Cadbury Follows Multichannel distribution system. It has an intensive distribution network

Cadbury

Wholesaler

Retailers

Customers

Retailers: Big Bazaar

Customers

Distributors

Business Segments

Business Segments

RecommendationMaintain the leadership in the market by having a superior marketing mix. Include new products for health conscious customers. Such as Dark Chocolates. It should continue to promote itself as substitute to mithai.

Develop a B2B strategy with hospitality industry by supplying them with Big chocolate bars.

Observing the perception map and the results of our survey, We recommend Cadbury to add a high premium snack category which is nutritious healthy.

SurveyDo you think Dark Chocolates are healthy ?

17%

43%10%5%

25%

Totally HealthyModeratelt HealthyNo effectUnhealthyDon't Know :(

Thank You