7 July 2016

Cadbury India Ltd. is a part of the Mondelez International group of companies and is in the business of creating a delicious world – producing delectable chocolate confectionaries, gum and candy products, and popular beverages and foods that include many of India’s most popular and trusted food brands. Over the years they have won customers’ hearts and achieved a 70 percent market share in the chocolates category in India. Their flagship brand Cadbury Dairy Milk (CDM) is considered the “Gold Standard” for chocolates – the pure taste of CDM defines the chocolate taste for the Indian consumer.

Ranked fourth among India’s most admired companies by Fortune India, in 2012, Cadbury India is a part of Mondelez International (NASDAQ: MDLZ), the global snacking and food company and a spin-off from Kraft Foods Inc. Mondelez International is the world’s largest chocolatier, biscuit baker and candy maker, and the second-largest maker of gum. Cadbury India has been in India for over 60 years, having started in 1948 as an importer of chocolates. Their large community extends into India’s agricultural spaces. Since 1965, Cadbury has pioneered and enhanced the development of cocoa cultivation in India.

Cadbury Essay Example

For over two decades, they have worked with the Kerala Agricultural University to undertake cocoa research and improve cocoa yields. Headquartered in Mumbai, Cadbury India has sales offices in New Delhi, Mumbai, Kolkata and Chennai and six manufacturing facilities at Thane, Bengaluru, Hyderabad, Induri (Pune), Malanpur (Gwalior) and Baddi (Himachal Pradesh). Mission and Vision Statements of Cadbury India Mission: Cadbury’s mission statement says simply: ‘Cadbury means quality’; this is our promise. Our reputation is built upon quality; our commitment to continuous improvement will ensure that our promise is delivered’.

Vision: Cadbury India has defined its vision as “Life full of Cadbury and Cadbury full of life” Marketing Strategy Segmentation, Targeting and Positioning Segmentation One notable form of customer segmentation that Cadbury utilizes is behavioural segmentation, which is based on actual customer decision-making processes towards Cadbury’s products. Once dividing these customers by that base, they target them by providing specific product offerings. The relevant segments are the following: The Break Segment, Impulse Segment and Take-home Segment.

Break Segment This segment describes products which are normally consumed as a snatched break and often with tea or coffee. This would make up a part of a meal and usually will be used a form of dessert substitution. Some examples of products that cater to this would be the Dairy Milk range. Impulse Segment These products are most often purchased on impulse while consumers are walking buy or shopping for other household goods. They are strategically placed at eye-level or near the checkout counter so that consumers can make an unplanned purchase.

Promotions are also often used to encourage consumers to purchase the chocolates. Both the Cadbury dairy milk block-size and bite-size could be purchased on impulse, depending on its packaging and its presentation. Take-home Segment This describes products that are normally purchased in supermarkets, taken home and consumed at a later stage due to its sheer quantity. Part of this segment is called the gift segment, where the consumers will take home a box of chocolates in the form of a gift for someone else.

An example of this would be Cadbury’s large Dairy Milk blocks or the Cadbury Celebrations box. Targeting Unless markets are targeted with the product offerings, very few will buy the product. Therefore, Cadbury India has distinguished its product offerings to specific class of consumer groups. For example, Cadbury Temptations and Bourneville are meant for higher end consumer groups who are willing to pay more for the dark chocolates. More recently, Cadbury has introduced SILK as a product offering and targets anyone who can’t resist chocolate.

Cadbury SILK is only another product item in the CDM product line. Positioning Positioning is defined as the way by which the marketers attempt to create a distinct impression in the customer’s mind. For kids, the word Cadbury’s is synonymous with chocolates; and the company’s many taglines resonate with the emotions of the people across segments. E. g. : “Kuch meetha ho jaye”, “the perfect expression of love”, etc. Marketing Mix 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: Chocolate & Confectionary Dairy Milk Fruit & Nut 5 Star Break Perk Gems Eclairs Nutties Temptation Milk Treat Beverages Food Drinks Bourn vita Drinking chocolate Cocoa PRICE 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 5 Star: Rs. 10 Friut and Nut: Rs. 22 Gems: Rs. 10 Break :Rs. 5 Nutties: Rs. 18 Bournvita (500 gm): Rs. 104 Drinking chocolate: Rs. 50 PLACE Cadbury’s distribution network has expanded from 1990 distributors last year to 2100 distributors and 4,50,000 retailers.

Beside use of IT to improve logistics, Cadbury is also attempting to improve the distribution quality. To address the issue of product stability, it has installed visi 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 Nestle’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. PROMOTION Findings 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 brand 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. Whirl with the new launched temptations with the slogan “Too Good 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 agencies have created communications 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. In cinemas, Cadbury has a message on-screen just before the lights are dimmed to give them a chance to get their temptations. Products like Eclairs has got potential for much wide distribution, e. g. : in small sweets that airlines, hostels, and up market retail outlet offer to guest and customers.

Looking beyond traditional promotional channels, Cadbury’s has also entered promoting its products through the internet. Besides three company websites (i. e. www. cadburyindia. com, www. bournvita. com, www. cadburygift. com) that the company has launched, it has also entered into various marketing relationship with other portals, specially targeted during festivals and events such as Valentine’s Day, etc. Growth Strategy and Market Expansion Cadbury India has launched some of the very creative advertisements over the years, and these ads have been close to Indian ethos.

For E. g. the ‘shubh aarambh’ Dairy Milk’s ad which relate to the Indian tradition of having some sweet before doing some important work or ‘kuch meetha ho jaye’ which associated Dairy Milk chocolates with celebratory occasions. Ads like ‘meethe mein kuch meetha ho jaye’ have got a lot of favour with the audience. These ads, in typical Cadbury style, are very heart-warming and creative. If we look through the years, we can clearly see that Cadbury is doing everything possible to maintain a strong hold on the Indian chocolate market.

While it remains a dominant leader with over 70% of the market share, this has eroded over the years as competitors like Nestle, Amul and CAMPCO have made strong forays. There was a time before and during the early 90s when Cadbury’s enjoyed an even higher market share. This was the time when chocolates were very clearly positioned for children. However, with the entry of global giant Nestle, two things happened. Firstly, there was a sudden spurt of competition for Cadbury. But more importantly, the market began to grow at a faster pace.

Cadbury seized this opportunity and started creating advertisements that were targeted towards the ‘kids in all of us’. This was a very smart move as they already had the children’s segment all tied up. Moreover, the children of the 90s have now grown up, and Cadbury still offers them reasons to eat Dairy Milk. Hence, while their market share has eroded by a few points, Cadbury has significantly improved its revenues in absolute terms by evolving a long term advertising plan and one that is very relevant to the Indian context.

With predominantly Indian themes, special moments (remember the girl dancing on the cricket field) and soulful music, Cadbury has really managed to connect with the audience. The recent ‘meethe mein kuch meetha ho jaye’ campaign is simply a continuation of this strategy to expand the market. In conclusion, Cadbury Dairy Milk has managed to take a simple chocolate bar and create numerous associations with it over the years. It has built up different audiences over the years, and to every audience it offers a different meaning but one that is very relevant.

Communication Strategy:- Cadbury was the one having 70 % market shares in chocolate industry. Out of which 30% was the Dairy Milk alone. This is because of constant re-invention of the brand & bombarding communication towards the consumers consistently to maintain the top position in mind recall in confectionery segment. Dairy Milk was awarded as No. 1most trusted brand in Mumbai 2005 for the edition of Brand Equity’s most trusted Brand Survey. Dairy Milk targeted all the aspects as possible to get into the heart of all the people, ofall age groups.

For this they communicated with people through different Ad’s &Campaigns. Let us see few of them below: Khane walo KO Khane ka Bahana Chahiye Pappu Paas Ho Gaya Shubh Aarambh was one of successful campaigns of Dairy Milk. This means Auspicious Beginning. With this campaign they said that for whatever you start, start it with Dairy Milk and it will be successful. For this they chose the best to advertise: Amitabh Bacchhan. Marketing Channels Cadbury used different media options to communicate different campaigns and promote their products.

They are: Outdoor, Television, Radio, Internet, TV Advertisements is the most popular method for Cadbury to show their new campaigns to people so that they can more and more relate it with their personal lives. They also have ground promotions in different malls. They arrange some contests also to promote their brand. Cadbury’s has also engaged the services of various celebrities including Amitabh Bachan, Preity Zinta, etc. to promote the brand. It has sponsors several events to expand its presence in markets/ areas where it has not penetrated deep enough.

Competitor’s Analysis The main competitors in confectionery market are Nestle, Amul , ITC and Parle. Product Feature Nestle Amul Cadbury Market Position 2nd 3rd 1st No. of variants Many Few Many Gift Packs Yes No Yes Objective To be the world’s largest and best branded food manufacturer, whilst ensuring that the brand name Nestle is synonymous with products of the highest quality Confectioneries just happens to be a side business for Amul whose core competency lies in milk and milk products To grow the market for chocolate confectionery

To increase share in the snacking sector Strategy Integrated cost leadership/differentiation Wide range of products Low cost of operators No differentiated strategy Growing the market by apt pricing strategy that will create a mass market and to have offerings in every category to widen the market Beside these, substitutes to Cadbury’s offerings include soft drink companies, ice cream companies, gift shops, etc both generic as well as branded. Marketing Environment Analysis Porter’s 5 forces Analysis:

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