Repositioning Strategies

Repositioning Strategies
Background
• Cadbury founded almost 200 years ago, is

a British multinational confectionery company
owned by Mondelēz International.
• Worldwide, Cadbury employs 60,000 people
in over 200 countries.
• Cadbury India began its operations in 1948 by
importing chocolates and then re-packing
them before distribution in the Indian market.
Chocolate Industry in India
• Value : Rs. 10,000 crore in FY 2014.

• CAGR of 15% over the last 3 years.
• Estimated Value: Rs. 25,000 crore in FY 2019.
• Growth drivers:
a. Increasing disposable income
b. Changing lifestyle
c. Rising trend of gifting chocolates instead of traditional Indian sweets.
d. Surge in the sale of Dark Chocolates.
Cadbury’s Market Share
•Cadbury India has a market share of 56% and Dairy Milk is the most favoured chocolate
in India with a 30% Market share
•Cadbury Dairy Milk was regarded as the “Gold standard”
Market Share in FY 2014
1% Cadbury India
1% 20%
Nestle India
5%
56% Ferrero India
17%
Amul India
Mars
Others
Euromonitor
Statista.com International
articles.economictimes
The Worm Controversy
October 2003
• “Festival of lights,” Diwali, was approaching
• Fresh stocks of chocolate bars were being shipped out to
650,000 outlets across all of India
• Worms reported in Cadbury Dairy Milk chocolate bars in
Mumbai
• Media started their questioning
• FDA seized chocolate stocks, sent them for sampling, and was
investigating Cadbury.
The Crisis
Snowballs
• The media continued
its onslaught
• In 3 weeks, there were
close to 1,000 adverse
newspaper articles
and about 120 TV clips
in ten languages.
• The infestation
incident became the
subject of SMS jokes
and warnings,
cartoons and TV
tickers.
• The heat of negative
publicity melted
Cadbury’s sales by 30
per cent, at a time
when it sees a festive
spike of 15 per cent.
Figures post crisis
•For the year ended December 2003, its net profit fell 37% to
Rs 45.6 crore as compared with a 21% increase in the previous
year.
•The company saw its market share melt from 73% in October
2003 to 69.4% in January 2004. In May, however, it inched up
to 71 per cent.
•CDM sales volume contribution declined from 68% in

October to 64% in January 2004. It edged back to 65.9% in
May 2004.
Source: http://www.business-
standard.com/article/companies/cadbury-recovers-
from-worm-shock-104070301003_1.html
Response Of Cadbury
Three key Internal

Consumers
messages Response
• Infestation • Consumer • Loyalists
was a storage first • Fence-sitters
problem • Truth always • Pseudo-
• It was safe to • Dare greatly, rejectors
eat Cadbury act quickly • Rabid
chocolates rejectors
• Exercise
same care in
purchasing a
chocolate as
buying any
food item.
Packaging
• Cadbury introduced “purity-sealed” packaging in
January 2004
• Three-layer packaging
Brand Ambassador
AMITABH BACHCHAN
Chosen because he
embodied the values of
Cadbury as a brand and
connected with all of
India: mothers, teenagers,
children, media persons
and business partners.
PROJECT VISHWAS
(“PROJECT TRUST”)
“Facts about Cadbury,”
released in 55
publications in 11
languages
RETAIL
MONITORING
implementation of a
retail monitoring and
education program to
address storage
problems
Journey of Cadbury Dairy Milk
Chocolates in India
Chocolates were perceived as:

 Unhealthy
 Impure
 Unaffordable
 Only for Kids
Advent of Cadbury Dairy Milk
Then came a chocolate that altered the entire mind-set

of the people and won hearts of souls and masses to
the extent that now it alone holds 30.6% value share of
the entire Indian chocolate market –
‘Cadbury Daily Milk’
Perceptual Mapping
Asli Swad Zindagi Ka
Message Delivered:
No particular situation or moment to enjoy with
Cadbury Dairy milk.
Target Group:
For people of all ages, helps bringing out the child in
them
Khane walon ko khane ka bahana chahiye
Message Delivered:
There is no occasion for eating chocolates, every time is
a Cadbury Time
Target Group:
Anyone and everyone, no reason is required for
Cadbury Dairy Milk consumption
Aaj khush hoon main khwamakhaah
Message Delivered:
Big achievements are not required for happiness but
simple things in life can also bring a smile to people's
faces
Target Group:
No age limit as people all across different age groups
are portrayed in the ad
Kuch meetha ho jaye
Message Delivered:
Even small events in life deserve to be celebrated and a
bar of Dairy Milk signifies love
Target Group: All people who care for each other and
like to celebrate the small events of life
Pappu Pass Ho Gaya
Message Delivered:
Cadbury Dairy Milk associated itself with celebration
and success even in the small things of life like a
student passing in his / her exams
Target Group: People who like to celebrate success in
life, this ad attracted a lot of attention from the
students
Miss Palampur
Message Delivered:
Chocolate is not only something people in the urban
areas enjoy, people in the rural areas also enjoy
celebrating successes with a chocolate
Target Group: Majorly the rural population, a 5 Rs. Bar
of Dairy Milk was introduced post this ad
Aaj Pehli Tarikh Hai
Message Delivered:
A thing as usual a Salary Day also deserves to be
celebrated
Target Group: This ad focused primarily on service class
people for whom this day is of immense importance
Shubh Aarambh
Message Delivered:
It is known that Indians are very superstitious and
generally known to eat curd which is considered as a
good way to start something new. Dairy Milk started to
portray that anything new can be started with a Dairy
Milk for an auspicious beginning.
Target Group: All people who believe in good
beginnings and luck
Survey Analysis
Total Respondents – 110
Age Group No. of Respondents Gender No. of Respondents

18-25 83
Male 65
26-35 14
36-45 4 Female 45
46-60 9
Total 110
Total 110
• 29% of the respondents said Dairy Milk comes to their mind when they hear
“Purple & White”
• 76% of the respondents said Cadbury Dairy Milk comes to their mind when they
hear the word “Chocolate”
• 62% of the respondents said that their favorite chocolate is Dairy Milk
• 66% of the respondents said that they are a loyal customer of Cadbury Dairy Milk.
• 52 (47% of the respondents said that they love dark chocolate and 39 respondents
said that they would love a Bournville over Dairy Milk.
• 73 (66% of the respondents knew that the brand Ambassador of Dairy Milk is Mr.
Amitabh Bachchan.
Reasons for having a Dairy Milk Perception about Chocolate
I can eat it anytime & Chocolate makes you

anywhere live longer
3% 1%
4%
Chocolate makes you
When I am happy and 18%
15% slim
want to celebrate
success
18%
63% 78% Chocolates as an
When I am hungry energy booster
and want some dose
of energy
Chocolates make you
When I am sad and feel happy
want to divert my
mind
Most liked variant of Cadbury Dairy Reasons for eating Cadbury Dairy Milk
Milk
2%
Crackles 4% I love the packaging
17%
22% 21% Fruit & Nut
I love the taste
12% I love the plain one!
25% It is easily available
20% 77%
Roast Almond
It is not at all
Silk expensive
Reasons that helped Cadbury build a Reasons for purchasing a Dairy Milk
good brand image?
Quality
As a Sweet Dish
5%
Taste 21%
25% 28%
25% As a gift during
16% festivals
Unique
Advertisements 35%
45% For self-
Well known Brand consumption as a
Ambassador snack
To give it as a gift to
your
friend/girlfriend/boy
friend/husband/wife
Would you switch to a different How often in a month do you eat
chocolate if Cadbury raises the price Dairy Milk After hearing “kuch
of Dairy Milk by 100%? (Eg: From Rs. meetha ho jaye”?
10 to Rs. 20)?
2-5 times
Maybe
39%
33% 46% 5-10 times
50%
Never. I am in love More than 10 times
with Dairy Milk 11%
17%
Yes. I am not that Never

4%
crazy for it.
Summary
• Cadbury today is synonyms with chocolate just like Maggi with
noodles and Bisleri with mineral water.
• People love Dairy Milk for its taste and according to them, it’s the
taste that has created the brand image of Cadbury Dairy Milk.
• Most of them recall the brand ambassador of CDM but don’t feel it
has contributed much to its brand image.
• People have now started using Dairy Milk for gifting purpose too
apart from consuming it as a normal sweet.
• There is a new liking towards dark chocolates and a considerable
amount of people prefer dark chocolate over the normal one due to
health reasons and taste.
Differentiating Factor
The USP of the brand is:
 Ultimate Purity
 Irresistible Taste
 Unmatchable quality
 Moment of pure magic and happiness
Positioning
Dairy Milk has placed itself at the pinnacle of Brand

Value pyramid by associating itself with:
 Emotions
 Culture
 Traditions
 Achievements
 Celebrations
 Occasions
Brand Persona & Brand Essence
Brand Persona Brand Essence

 Lively  Pure happiness in every
 Energetic moment
 Bubbly  It is not just a
 Sparkling chocolate, it is an
ultimate experience of
pleasure
Conclusion
Dairy Milk has now become an expression of:

 Joy
 Emotions
 Indulgence
 Shared good feelings
 Spontaneity
Conclusion
• Dairy Milk has now become a part of every Indian’s
moments of happiness and celebration to the extent
that it defines the chocolate taste of Indian
consumers.
• The word chocolate resonates with Dairy Milk in
India.
Conclusion
Through it’s splendid positioning strategies and
memorable ad campaigns Dairy Milk perfectly catered
to it’s Target Market which is “Anyone and Everyone”
because every time is a Cadbury time
Conclusion
Dairy Milk introduced delicious variants giving
consumers an exciting reason to keep coming back into
the fun filled world of Cadbury
Conclusion
• Brand Penetration became so extensive that people
started believing that no one needs a reason to eat
Dairy Milk.
• Dairy Milk encapsulates an enormous breadth of
emotions from shared values of Family Togetherness,
Liveliness, Reliability and Fun to personal values of
Individual Enjoyment and Indulgence which is also
it’s Brand Personality.
Dairy Milk : Spreading Happiness since 1905

Repositioning Strategies

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Repositioning Strategies

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Repositioning Strategies

• Cadbury founded almost 200 years ago, is

• Value : Rs. 10,000 crore in FY 2014.

•Cadbury Dairy Milk was regarded as the “Gold standard”

Market Share in FY 2014

•CDM sales volume contribution declined from 68% in

Three key Internal

Chocolates were perceived as:

Then came a chocolate that altered the entire mind-set

Total Respondents – 110

Age Group No. of Respondents Gender No. of Respondents

I can eat it anytime & Chocolate makes you

Yes. I am not that Never

Dairy Milk has placed itself at the pinnacle of Brand

Brand Persona Brand Essence

Dairy Milk has now become an expression of:

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