Case Study

Repositioning of brand Cadbury

Submitted By:-

Repositioning of brand Cadbury

INTRODUCTION:

1

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.

Why is Repositioning necessary? When products reach maturity they are well known. However, as competing products enter the market; mature products can begin to look old and tired. Action must then be taken to refresh the product’s image. Repositioning can create new appeal for existing consumers or attract new consumers.

The Product Life Cycle concept The product life cycle model helps marketers identify the different stages that the sales and profits of a product go through during the course of its lifetime. There are five stages to the product life cycle: introduction, growth, maturity, saturation and decline.

OBJECTIVE:

To review the brand repositioning strategies of different sub-brands of Cadbury in India.

To study consumer awareness and perception about the brand repositioning strategies of India.

To understand the ability of Cadbury to motivate consumers to buy their products.

Desire of Cadbury to expand their target market from kids to younger generation.

PHILOSOPHY:

2

If a brand does not reposition at the right time, it may not get a second chance.

METHODOLOGY USED:

The relevant data is collected from secondary sources i.e. Internet. For detailed analysis Cadbury India’s portal was studied extensively. Also other source of information about Cadbury was referred from internet.

CONTENT:

Cadbury brands are divided into five categories:1. Chocolates2. Snacks3. Beverages4. Candy5. Gums

Products of Cadbury under these categories are as follow:

CHOCOLATES: Cadbury Dairy Milk 5 Star Perk Celebrations Temptations Éclairs Gems

SNACKS: BytesBEVERAGES: BournvitaCANDY: HallsGUMS: Bubbaloo

3

4

Dairy Milk

In 1998, Cadbury Dairy Milk took on the task of universalizing consumption from the smallest town in India to the largest metro. In 2004, this endeavor gained momentum with the advent of the ‘Kuch meetha ho jaye’ platform. This helped the brand become more attractive, interesting and desirable during those special moments when the sweet tooth breaks out into a craving for satisfaction. CDM today, has variety of differentiated offerings under its umbrella for children as well. This was supported by launching novel offerings – CDM 2-in-1 (brown and white chocolate in one bar); and CDM Poppers (with popping candy). In July 2006, Cadbury launched CDM Wowie, a product offering that featured Disney characters embossed in white chocolate on the traditional Dairy Milk bar.

5

5 Star

Chocolate lovers for a quarter of a century have indulged their taste buds with a Cadbury 5 Star. A leading knight in the Cadbury portfolio and the second largest after Cadbury Dairy Milk with a market share of 14%, Cadbury 5 Star moves from strength to strength every year by increasing its user base.

Launched in 1969 as a bar of chocolate that was hard outside with soft caramel nougat inside, Cadbury 5 Star has re-invented itself over the years to keep satisfying the consumers taste for a high quality & different chocolate eating experience.

One of the key properties that Cadbury 5 Star was associated with was its classic Gold colour. And through the passage of time, this was one property that both, the brand and the consumer stuck to as a valuable association.

Cadbury 5 Star was always unique because of its format and any communication highlighting this uniqueness, went down well with the audiences. From 'deliciously rich, you'd hate to share it' in the 70's, to the 'lingering taste of togetherness' & 'Soft and Chewy 5 Star' in the late 80's, the communication always paid homage to the product format.

More recently, to give consumers another reason to come into the Cadbury 5 Star fold, Cadbury 5 Star Crunchy was launched. The same delicious Cadbury 5 Star was now available with a dash of rice crispies.

Cadbury 5 Star & Cadbury 5 Star Crunchy now aims to continue the upward trend. This different and delightfully tasty chocolate is well poised to rule the market as an extremely successful brand.

6

Perk

A pretty teenager; a long line, and hunger! Rings a bell? That was how Cadbury launched its new offering; Cadbury Perk in 1996. With its light chocolate and wafer construct, Cadbury Perk targeted the casual snacking space that was dominated primarily by chips & wafers. With a catchy jingle and tongue in cheek advertising, this 'anytime, anywhere' snack zoomed right into the hearts of teenagers.

Raageshwari started the trend of advertising that featured mischievous, bubbly teenagers getting out of their 'stuck and hungry' situations by having a Cadbury Perk. Cadbury Perk became the new mini snack in town and its proposition "Thodi si pet pooja" went on to define its role in the category.

As the years progressed, so did the messaging, which changed with changes in the consumers' way of life. To compliment Cadbury Perk's values, the bubbly and vivacious Preity Zinta became the new face of Perk with the 'hunger strike' commercial in the mid 90's.

In the new millennium, Cadbury Perk moved beyond just owning 'hunger' to a "Kabhi bhi kaise bhi" position, because the urge for Cadbury Perk could strike anytime and anywhere. With the rise of more value-for-money brands in the wafer chocolate segment, Cadbury Perk unveiled two new offerings - Perk XL and XXL. The temptation to have more of Cadbury Perk was made even greater with the launch of Cadbury Perk Minis in 2003 for just Rs. 2/-

In 2004, with an added dose of 'Real Cadbury Dairy Milk' and an 'improved wafer', Perk became even more irresistible. The product was supported in the market with a new look and a new campaign. The advertisement spoke of the irresistible aspect of the brand, with 'Baaki sab Bhoola de' becoming the new mantra for Cadbury Perk.

Celebrations

7

Cadbury Celebrations was aimed at replacing traditional gifting options like Mithai and dry- fruits during festive seasons.

Cadbury Celebrations is available in several assortments: An assortment of chocolates like 5 Star, Perk, Gems, Dairy Milk and Nutties and rich dry fruits enrobed in Cadbury dairy milk chocolate in 5 variants, Almond magic, raisin magic, cashew magic, nut butterscotch and caramels.

The super premium Celebrations Rich Dry Fruit Collection which is a festive offering is an exotic range of chocolate covered dry fruits and nuts in various flavours and the premium dark chocolate range which is exotic dark chocolate in luscious flavours.

Cadbury Celebrations has become a popular brand on occasions such as Diwali, Rakhi, and Dussera puja. It is also a major success as a corporate gifting brand. The communication is based on the emotional route and the tag line says "rishte pakne do" which fits with the brand purpose of strengthening your relationships with something sweet.

Temptations

8

Ever see people hide away their chocolate since they don’t want to share it! If you have, then it’s likely to be a bar of Cadbury Temptations! Cadbury Temptations is a range of delicious premium chocolate in five flavours.

Research revealed a niche segment of “chocoholics” - those exposed to international chocolates and those who love a variety of chocolates but possibly find the price of international chocolates too high. Cadbury Temptations is a range targeted at this segment of discerning chocolate lovers.

The Cadbury Temptations range is available in 5 delicious flavour variants - Roast Almond Coffee, Honey Apricot, Mint Crunch, Black Forest and Old Jamaica. With its international quality chocolate Temptations soon became a popular brand for "chocoholics".

The advertising positioned Cadbury Temptations as a chocolate range so delicious that it was "too good to share".

Éclairs

9

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 uniquebecause of its creamy caramel exterior and rich Cadbury Dairy Milkchocolate at the center. In 2006 Cadbury Dairy Milk Éclairs launched a crunchy Éclair with a hard caramel outside and delicious Cadbury Dairy Milk chocolate inside called Cadbury Dairy Milk Éclairs Crunch.

Gems

10

The saying "Good things come in small packets" has been proven right many a times and it couldn't have been truer for the pretty chocolate buttons called Gems. Who can forget the unique, brightly colored chocolate buttons with crispy shells, encased in a pack that's as colorful as the product itself? Unrivalled in all these years, Cadbury Gems has captured every consumer's fantasy for almost 4 decades. Little wonder that Cadbury Gems, the brand that came into India in 1968 is still going strong.

The sheer taste and the fun associated with eating Cadbury Gems and the joy of sharing it with friends has made the brand a dear companion and a source of nostalgia for consumers.

Cadbury Gems brings happiness to the consumer's world. With this promise in mind, Cadbury Gems has always had 'Masti' as the key proposition in all its communication. In fact, Cadbury Gems is always a willing ally for pranks and fun.

Cadbury Gems has continuously tried to be relevant and exciting for consumers. In its constant attempt to contemporarise, a unique stand up tube pack with a flip top was launched, which became an instant hit with consumers.

Early 2006 gave consumers one more reason to celebrate with Cadbury Gems; the launch of Cadbury Fruity Gems, a fruit flavoured variant with a crispy shell outside and white chocolate inside. Now consumers had not one, but two reasons to enter the 'Masti' world of Cadbury Gems.

Today, Cadbury Gems has established itself as one of the leading brands in its segment. With the single-minded purpose to delight every

11

consumer and help them discover the fun, exciting and adventurous side of life, Cadbury Gems will continue to be the leading brand in Cadbury India's portfolio.

Bytes

Cadbury Bytes was launched in 2004-05 as Cadbury's foray into the rapidly growing packaged snack market.

Cadbury Bytes is a one of a kind snack, in that it is sweet and not salty, as compared to most of the other snacks. It's a bite sized snack with a crunchy wafer and rich Choco cream filling. There are three variants of Bytes available in the market - Regular, Coffee and Strawberry, at two price points- Rs 5 and Rs 10.

Cadbury Bytes is targeted at teens as they are the largest consuming segment of packaged snack category. They are also the gateway to the family, especially for a new sweet snack.

With Bytes, Cadbury has entered into a new category with well entrenched and established brands. It is an exciting challenge for us to take the brand forward and make it a stupendous success.

Cadbury Bytes is positioned as the 'only sweet snack' in the world of salty snacks. The proposition we have arrived at is "Snacking ka meetha funda", where we take a pot-shot at other snacks, by saying

12

`Har snack namkeen nahi hota'. The product is all about breaking a cliché and teenagers identify with breaking stereotypes. The new commercials- 'Tommy' and 'Villain', talk about breaking the stereotype.

Bournvita

The brand has been an enduring symbol of mental and physical health ever since it was launched in 1948. It is hardly surprising then, that Bournvita enjoys a major presence in the Malt Food market. Given its market share of 17%, Cadbury Bournvita reaches across hundreds of cities, towns and villages through 3,50,000 outlets in India.

It is a universal truth that mothers attach a lot of emotional importance to nourishment while bringing up their children. However, children always look out for the tastiest option to make their daily dose of milk more enjoyable.

Cadbury now offers two options to capture this appeal: Cadbury Bournvita, with its popular chocolate taste, and its latest offering, Cadbury Bournvita 5 Star Magic, leveraging the rich chocolate and caramel flavour of Cadbury 5 Star.

Cadbury Bournvita advertising has moved with the times to reflect the changing needs of the consumers.

During the '70s the communication centered on 'Good upbringing' and Bournvita became an essential building block for childhood. "Goodness that grows with you" was the campaign idea that communicated this thought.

In the 80's the focus shifted from 'Upbringing' to 'Intelligence' with the more aggressive "Brought up right, Bournvita bright" campaign, which was very successful during its time.

In the early '90s all brands in the category provided purely physical benefits like nourishment, energy and growth. It was at this time that

13

Bournvita decided to raise the bar by promising physical and mental benefits. This resulted in the famous Tan Ki Shakti, Man Ki Shakti Campaign which became an anthem for the brand.

In the new millennium, keeping pace with the evolving mindsets of the new age consumers, Cadbury Bournvita is about arming consumers with Confidence to take on physical and mental challenges that nobody else can, resulting in one of the most successful advertising campaigns which is based on 'Real Achievers who have grown up on Bournvita'.

Halls

Halls was first launched in India in 1968 & soon established itself as a ‘therapeutic’ candy competing in the cough lozenge market. Halls has been sold in India as part of the Pfizer & Warner Lambert networks before it came into the Cadbury fold in 2003 as part of a global merger with Adams Confectionery.

Halls has had a colourful advertising history in India & was infact, one of the earliest brands to advertise on television in India. In the 1980’s, Ad’s featuring Meenakshi Sheshadri and later, Vijeta Pandit on its unique ‘vapour action’ formula with a classic Halls Jingle were aired which established the brand firmly in the market. In the 90’s, Halls advertising adopted a different take with its ‘Traffic Jam’ Ad where Halls restores order to a situation of chaos & the early 2000’s saw Halls advertising on the ‘refreshment’ platform. Over the years Halls has been strongly positioned on the` soothes sore throat ’ benefit in the consumers mind. The Halls continues to be one of the leading mint brands in India even in the changed competitive context.

Bubbaloo

14

Cadbury India has expanded its confectionary portfolio in 2007 by foraying into the Bubble gum category with the launch of Bubbaloo Bubblegum- a successful bubblegum brand from its international portfolio.

Bubbaloo is an innovative soft bubblegum with a centre filled liquid.It is filled with a high level of a great tasting fruit flavoured liquid that floods your mouth instantly.

Bubaloo is currently available in two yummy flavors- Strawberry and Mixed Fruit.

The communication focuses on the "fun filled liquid centre” of Bubbaloo and is anchored by “Bubba- the cat”, the international mascot for the brand Bubbaloo.

Recapitulation

15

Confectionery Industry

The confectionery industry in India is approximately divided into:

Chocolates Hard-boiled candies Éclairs & toffees Chewing gums Lollipops Bubble gum Mints and lozenges

The total confectionery market is valued at Rupees 41 billion with a volume turnover of about 223500 tonnes per annum. The category is largely consumed in urban areas with a 73% skew to urban markets and a 27% to rural markets.

Hard boiled candy accounts for 18%, Éclairs and Toffees accounts for 18%, Gums and Mints and lozenges are at par and account for 13%. Digestive Candies and Lollipops account for 2.0% share respectively.

Overall industry growth is estimated at 23% in the chocolates segment and sugar confectionery segment has declined by 19%.

Cadbury with Dairy Milk, Perk, Gems, 5 Star, Celebrations, Bytes, Dairy Milk Éclairs, Éclairs Crunch, Mr. Pops and Halls brands is a key player in the chocolate, éclairs, lollipops, and mints segments.

Conclusion:

Brand repositioning is more complex as it has to take into account the perception already created in the consumers mind.

16