Case Study Cadbury PJPJ
Case Study Cadbury PJPJ
Case Study Cadbury PJPJ
SUBMITED BYANINDITA CHATTERJEE VIKAS GAUTAM PRAKASH MATHAI NEHA MENDIRATTA DRON SHARMA UMA MADUREY V PGDM-108 PGDM-111 PGDM-128 PGDM-129 PGDM-147 PGDM-157
ACKNOWLEDGEMENTS
With profound sense of gratitude, we record our sincere thanks to Dr. Monica Khanna (Course Coordinator) for her keen interest and infallible advice. She provided full support and extended all possible amenities to facilitate successful completion of our project. But for her valuable guidance, astute judgment, constructive criticism and an eye for perfection, our brand study for Cadbury, a huge learning experience, would not have been this successful. We would also like to thank Mr. Arpan Sur (Brand Manager-Cadbury Dairy Milk clairs), who despite his hectic schedule, provided full support and equipped us with an in depth knowledge of the brand and cooperated in every aspect.
CONTENTS
Part A
OVERVIEW Company Market Share & Revenue.5 SWOT ANALYSIS............................................................................................6 CADBURY DAIRY MILK ECLAIRS..7 MARKET SEGMENTATION Product Based..........................................................................8 Price Based9 Customer Based..10 POSITIONING STRATEGY11 Positioning of Cadbury Dairy Milk clairs..14 DISTRIBUTION MANAGEMENT.16 PRICING STRATEGY16 ADVERTISING & BRANDING STRATEGY.17 MARKETING ENVIRONMENT FOR CADBURY.18
OVERVIEW
Overview Of The Company
Cadbury plc is a British confectionery and beverage company with its headquarters in London, United Kingdom, and is the world's largest confectionery manufacturer. In India, Cadbury began its operations in 1948 by importing chocolates. Their Core purpose-Creating brands people love, and slogan- We spread happiness!!! The flagship brand Cadbury Dairy Milk is considered the "gold standard" for chocolates in India. The pure taste of CDM defines the chocolate taste for the Indian consumer.
Profits in its Indian business grow at about 30 percent a year and sales at 20 percent, in spite of the global recession.
The future mission of Cadbury India is 'A Cadbury in Every Pocket'. The company's business strategy hinges on following for driving its future growth:
Increase the width of chocolate consumption, through low price point packs and distribution focus. Increase depth of consumption, targeting regular chocolate consumers through generating impulse and a dominant presence at Point of Sale.
Maintain image leadership through a superior marketing mix. Be a significant player in the gifting segment, through occasion linked gift packs. Build critical mass in the sugar business by introducing value-added sugar confectionery products.
Chocolates - Dairy Milk, 5 star, Perk, Eclairs, Bournville Gums Bubaloo Candies- Halls Malted foods- Bournvita 5
Strengths:
Strong brand names like Cadbury Dairy Milk, Five star and Eclairs. Rich product mix. Control of 70% of Indian chocolate market. Growth at 30% despite recession. Extensive distribution network. Customization of products and promotion according to India. Great managerial talents.
Weaknesses:
Opportunities:
The Indian market and more specifically the urban areas where the penetration of Chocolates is low can be developed as a future market through affordability and availability. Using information and technology to bring efficiency in logistics and distribution.
Threats:
Stiff competition in Confectionery segment. The company has large exposure to foreign currency exchange rate risk, mainly on account of imported cocoa beans and cocoa butter in US Dollar and Pound Sterling.
One of the power brands of Cadbury No. 4 among Bourn vita, dairy milk, 5 star and Perk Oldest brand of clair chocolates was started in 1971 It was the first of its kind, which helped set a competitive format and create a brand image.
MARKET
MALTED FOODS
CONFECTIONARY
DRINKING CHOCOLATES
SNACKS
BROWN
WHITE
CHOCOLATES
GUMS
CANDIES
WAFER COATED
TOFFEES
SOLID FILLING
CARAMEL\OTHER FILLING
PERK
TOFFEES
CARAMEL/OTHER FILLINGECLAIRS
SOLID FILL-NUTRINE MAHALACTO,PARRYS COFFEE BITE,MELODY CARAMEL /OTHER FILLALPENLIEBE HARD BOILED CANDIESPOPPINS
SNACKS
BYTES
As can be seen that Cadbury is getting tough competition from Nestle, perfetti, and Smithkline Beecham products in all categories.
Eclairs
Price
Filling
50p
Re 1
Solid
Caramel\other filling
SOURCE: From Mr.Arpan Sur, Brand Manager , CDME 50p + Solid Coffee bite, Alpenlibe etc Re 1 + solid non existent
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50p + filling Nestle clair, local brands Re 1 + filling Cadbury Dairy Milk clairs(CDME)
Chocolate\candy consumers
Kids - below 14
Teens
Adults
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POSITIONING STRATEGY
The theme behind Positioning of Cadburys chocolates in the psyche of Indian customer was to go out and occupy a distinct space in the consumer's mind, and if you are able to occupy a distinct space in the consumer's mind then it become very difficult for a competitor to dislodge you. And it might be easier done if one is able to capture a word in the consumers mind which already exists; in the case of Cadburys that word is "Meetha" a generic to represent all and any kind of sweet. Range of Cadburys chocolates especially Cadbury dairy milk have placed themselves as the most delicious,best tasting chocolate, A Moment Of Pure Magic. Cadbury Dairy Milk (CDM) encapsulates an enormous breath of emotions, from shared values such as family togetherness (fun, wholesome, reliable), to the personal values of individual enjoyment. It stands for goodness. The challenge in the Indian market was to get people accustomed to chocolates primarily seen as western taste.Cadburys did so by reaching out to the masses in a aland where mindsets and preferences are as diverse as the country itself. Back in the 80s the brand positioned itself as The perfect expression of parental love. The
chocolate goodness(appetite appeal) was being harnessed.Tag lines like Sometimes a Cadbury can say it better than words made it more popular. In the early 90s the following issues led to brand stagnation Chocolate are meant for kids only Seen as an indulgence product Negative associations o Too much was bad o Bad for health Seen as a western product
The challenge was to re position the brand and to expand the consumer base by making Cadbury aspirational and desirable to the adult segment.
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The communication task was to increase category relevance, give consumers a taste of life the Cadbury Dairy Milk way - real, fun and free and to Integrate the "real" chocolate of Cadbury Dairy Milk to "real" feelings. Cadbury exploited the I wanna Break Free syndrome prevalent after globalization at that time to position itself as the market leader. The Big Idea-Cadburys chocolate-The chocolate for the kid in all of us.The communication- The real taste of life. Brand PositioningCDM is the perfect expression of spontaneous, happy, joyous feelings.
Eating CDM provides the Real Taste of Life experience. The Indianisation of the brand-To increase width of consumption by entering the Indian mind-space - Make CDM part of Indian customs and mores.
COMPETITIVE ENVIRONMENT
Influx of several brands at various price points offering greater perceived value While attitudes towards chocolates softened, consumers flirted with options
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THE CHALLENGE
Reinforce pre-eminence of the brand
THE EXECUTION
Range of new, international pack formats a CDM for every need. For Connoisseur o Bournville o Fruit & Nut Gifting - Gift packs In-home consumption Muh Meetha Karna
COMMUNICATION
Reinforce relationship of brand in the consumers life. Consumer speak o I eat CDM when I am happy, sad o CDM is always there with me o CDM mere mun mein rahata hai o CDM is almost like an ideal companion
The Brand Belief o CDM is the best tasting chocolate - a moment of pure magic o CDM is chocolate, the others are simply makes of chocolate
Presently Cadburys chocolates enjoy excellent image - that of an indianite, festival sweet, that can be used to celebrate anything and anytime. The exquisite packaging and the heavenly taste add to this image.Kuch Meetha Ho jaye campaign has positioned Cadburys as the ultimate sweet for all celebrations.
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There are three main positioning buckets 1. Engaging -it experience make consumers take it when they are taking a break from studies 2. Unobtrusive natured products accompanies what you are doing 3. Taste\flavour CDME belongs to the 1st bucket.
BRAND IMAGE
clair is considered to be premium among all the clair\candy brands. Customers describe it as teeny, youthful, funny, and slightly naughty.
Chocolate\candy consumers
Kids - below 14
Teens
Adults
SOURCE: From Mr.Arpan Sur, Brand Manager, CDME Fig: Target Customers
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CDMEs share :
The market share in each of the segments is as mentioned below: 50% of value from teens 40% from kids 10% from adults
They target teens because: Its the biggest market for candy. Have more buying power due to increased income\society norms They want to appear older, and prefer products that make them look older Because of Cadbury being very popular among this age with other offerings also.
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DISTRIBUTION MANAGEMENT
Cadbury has its own set of distributers and super stockists who sell to wholesalers and retailers. The distribution hierarchy of Cadburys is huge as it is present across India. Their hierarchy is well distributed among the rural and the urban India as shown below:
Cadbury India Distributor
Cities Wholesalers
seller at town A
seller at town B
etc
Smaller wholesalers
Retailers
Consumers
PRICING STRATEGY
Pricing is one of the most important reasons for the success of clairs. It is available in the market in two variants one at the price of 50p and the other at the price of Re The biggest competitor that clairs has at the moment is Alpenlibe which is currently priced at 1 giving the 50p clairs a distinct advantage over the latter.
Eclairs
Alpenlibe
Chocolibe
50 p
Re 1
Re 1
Re 1 16
a. 50p + Solid coffee bite, alpenlibe etc b. Re 1 + solid non existent c. 50p + filling nestle clair, local brands d. Re 1 + filling CDME
Cadbury has been voted the Readers Digest Most Trusted Brand by consumers of Australia and New Zealand for five and six consecutive years respectively. From soft fruity jellies to hard-boiled sweeties, from cough drops to caramels there are many different members of the candy family. Candy represents over 30% of the global confectionery market. 46% of Cadburys revenue comes from chocolate and cocoa beverages and 33% from gums. 21% comes from candies. The industry is dominated by Cadbury with an enviable market share of 70 percent. Nestle follows next with a poor 20 percent market share. Parry & Parle are the other active players. The 22,000 tonne-per annum chocolates industry can be classified as bars, counts, panned varieties clairs & assorted
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chocolates. The bars or slabs also termed s molded chocolates is the largest segment in the industry accounting for 37% of total chocolate market. The most popular brand in this segment is Cadbury Dairy Milk. Other leading brands include Premium & Milky bar of Nestle, Truffle of Cadbury & Amul Milk Chocolate of the Gujarat Co-operative Milk Marketing Federation (GCMMF). A duopoly of Cadbury & Nestle dominates this segment with 70 percent & 23 percent shares respectively. Cadbury clairs has been monopolizing the clairs segment, which has a 20 percent share in the chocolate market for nearly three decades. However, since 1991, it has been facing stiff competition from Parle Products Melody. Cadbury is once again a leader in this segment with a 58 percent share. But Parle & Parry with 15 percent shares are also well entrenched. Coffee Bite, Lacto King & Coconut Punch are the leading brands from Parry. Nestle has only a 10 percent share in the clairs segment. Chocolates are more popular in metropolitan cities where 15 out of every 100 citizens consume chocolates. The consumption in towns is around 10 percent while it is as low as 2 percent in the villages. The industry is in the Fast Moving Consumer Goods (FMCG) sector, a hot favourite on the bourses. But, chocolates along with ice-creams, wafers, drinks & biscuits are quite sensitive to consumers changing preferences. They operate in a branded impulse market & have to spend heavily on advertisement campaigns to sustain the consumer interest in their products. The players in the industry vie with one another to book large sign boards near bus stops, railway stations, cinema houses, schools, colleges, etc. so that their products have a greater visibility. CIL may soon be the global manufacturing base of the Group. But, Cadbury decision launch one new product every year (in fact, it launched three in 1998) is surprising since many of his brands like Mickey-Donald Wonders, Fruit & Nut, Roast Almond & Nut Butterscotch have not had a good response from customers. The budget of 2000 added a sour taste to this industry. The excise duty on chocolates has been doubled from 8 to 16 percent since then. This has adversely affected the bottom-line of the players. Cocoa powder & other food preparations containing cocoa waffles & wafers coated with chocolate will
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now fall under MRP-based excise assessment. The dividend tax has also dampened the spirits of chocolate MNCs as they have a dividend payout as high as 80 percent. Consumers are increasingly are looking for naturalness. So it purchased Green & Blacks, the organic chocolate company, and The Natural Confectionery Co., a company that uses completely natural ingredients. We are also seeking to replace many of the artificial colours and flavours in our products with natural colours and flavours; another trend is health and wellbeing. One of the reasons that invested in the chewing gum business was that it is a sweet snack with generally no calories and no fat. We believe that the chewing gum industry is being driven in part by consumers seeking a sweet snacking experience with low calories and low fat
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