S. NO. CONTENTS
1. Executive Summary
3. Company Profile
5. Research Methodology
6. Data analysis and Findings
The Cadbury’s India’s number one chocolate is able to share with their market
insights based upon unparalled breath of chocolate experience.
The merge in 1969 with Schweppes and the subsequent development of the business
have led to Cadbury Schweppes taking the led in both, the confectionery and soft
drink market intech UK and becoming a major force in the international market.
Cadbury Schweppes today manufactures product in 60 countries and a trade in
This project is a sincere effort to look for the market potential in chocolate and
confectionery industry. A descriptive research procedure had been applied to come
to the conclusions of the project. A detailed questionnaire had been prepared and the
responses of the concerned people had been collected for the analysis. The project
later concluded in recommending the market potential of the chocolate and
The Cadbury’s Inc has taken the opportunity to offer us a broader view of chocolate
category. The Cadbury’s India’s no.1 Chocolate is able to share with their market
insights based upon unparalleled breath of chocolate experience.
Cadbury has grown from strength to strength with new technologies being
introduced to make the Cadbury confectionary business, one of the most efficient in
the world. The merge in 1969 with Schweppes and the subsequent development of
the business have led to Cadbury Schweppes taking the led in both, the
confectionary and soft drink market intech UK and becoming a major force in the
international market. Cadbury Schweppes today manufactures product in 60
countries and a trade in staggering 120. The Cadbury story is a fascinating story of a
family business that grew in one of the biggest, most loved chocolate brand in the
world. A story that you will remember as the story of “The taste of life”.
OBJECTIVE OF THE PROJECT
My main objective of the study on this project is to demonstrate
the marketing strategies of Cadbury India Ltd.
And to arrive at my findings, I have done few analysis:-
(a) SWOT Analysis
(B) PEST Analysis
And also 5 P’s of Marketing:-
• Physical Distribution
Achieving accuracy in any research requires in depth study regarding the subject. As
the prime objective of the project is to compare Cadbury with the existing
competitors in the market and the impact of Nestle on Cadbury, the research
methodology adopted is basically based on primary data via which the most recent
and accurate piece of first hand information could be collected. Secondary data has
been used to support primary data wherever needed.
Primary data was collected using the following techniques
Direct Interview Method and
The main tool used was, the questionnaire method. Further direct interview method,
where a face to face formal interview was taken. Lastly observation method has
been continuous with the questionnaire method, as one continuously observes the
surrounding environment he works in.
Procedure of research methodology
# Target geographic area was Delhi. NCR.
# To these geographical area questionnaire was given, the questionnaire was a
combination of both open ended and closed ended questions.
# The date during which questionnaires were filled was between six week.
# Some dealers were also interviewed to know their prospective. Interviews with the
honour of retailer of Cadbury were also conducted.
# Finally the collected data and information was analysed and compiled to arrive at
the conclusion and recommendations given.
Sources of secondary data
Used to obtain information on, Cadbury and its competitor history, current issues,
policies, procedures etc, wherever required.
The legend called Cadbury
1824 – A once business was opened in 1824 by a young Quaker, John Cadbury, in
Bull street Birmingham was to be the foundation of Cadbury Limited, now one of
the world’s largest producer of chocolate.
1831 – By this year the business had changed from a grocery shop and John
Cadbury had become a manufacturer of drinking chocolate and cocoa. This was the
start of Cadbury manufacturing business as it is known today. A larger factory in
Bridge Street Birmingham was rented in 1847, John Cadbury was joined by his
brother Birmingham and the business became Cadbury Brother of Birmingham.
1861 – John Cadbury resigned his business and handed over to his sons, Richard, 25
and George, 21 who after 5 difficult years almost shut down the business to take up
other vocation. Fortunately for generation of chocolate lovers, they didn’t.
1866 – Saw a turning point for the company with the introduction of a process for
pressing the cocoa butter from the coca beans. This not only enabled Cadbury
Brothers to produce pure coca essence, but the plentiful supply of coca butter
remaining was also used to make new kind of eating chocolate. The essence was
advertised as ‘Absolutely pure, therefore best’.
1879 – Business prospered from this time and Cadbury Brother outgrew the Bridge
Street factory, moving in 1879 to a ‘Greenfield’ site some miles from the center of
Birmingham which came to call Bourneville. The opening of the Cadbury factory in
a garden also heralded a new era in industrial relations and employee welfare with
joint consultation being just one of the introduced by the pioneering Cadbury
1899 – In this year the business private limited company – Cadbury Brothers
Limited. Progress since the start of the century through the inter – war years onward
ahs been rapid. Chocolate has moved being a “luxury” item to well within the
financial reach of everyone.
1905 – Cadbury has many famous brands with one of major success story being
Cadbury’s Dairy Milk chocolate launched in 1905, today Britain’s favorite moduled
Cadbury today is the market leader in the U.K chocolate confectionary market,
employing the most advanced processing technology and management information
and control techniques. The company is the confectionary division of Cadbury
Schweppes plc which is major force in the confectionary and soft drinks
World - wide Cadbury is one of the pre – eminent names in confectionary with
impressive range of famous brands.
Quality has been the focus of the Cadbury business from the very beginning as
generations have worked to produce chocolate with that very special taste,
smoothness and snap, so characteristics of Cadbury’s chocolate.
SALES FINANCE DISTRIBUTI
Milk chocolate for eating was first made by Cadbury in 1897 by adding milk powder
paste to the dark chocolate recipe of cocoa mass, cocoa butter and sugar. By today’s
standards this chocolate was not particularly good as it was very coarse and dry and
was not sweet or milky enough for public tastes.
At that time there was a great deal of competition in the U.K from continental
manufactures, not only the French with their fancy chocolates but also from the
Swiss, who were renowned for their milk chocolate. Led by George Cadbury junior,
the Bourneville experts set out to meet the challenge. A considerable amount of time
and money was spent on research and new plant design to produce the new
chocolate in much large quantities.
A new recipe was formulated fresh milk and new production processes were
developed to produce milk – chocolate not as merely as good as but better than the
imported milk chocolate.
Four years of hard work were invested in the project and in 1905 what was to be
Cadbury’s top selling brand was launched. Three names were considered Jersey
Highland Milk and Dairy Maid. Dairy Maid became Dairy Milk and Cadbury’s
Dairy Milk with its unique flavor and smooth creamy texture was ready to challenge
the Swiss domination of the milk chocolate market.
By 1913 it had become the company’s best selling line and in the mid twenties
Cadbury’s Dairy Milk gained its status as the brand leader, a position that it has held
ever since. Today more than 250 million bars of Cadbury’s Dairy Milk are made
every year and sales reach over 100 million Pound in value.
While advertising and label design g-have changed with fashion and considerable
strides have been made in manufacturing technologies, the recipe for Cadbury’s
Dairy Milk its ‘glass and a half of full cream milk in every half pound produced’ is
still basically the same as when it was launched.
Cadbury’s Dairy Milk Story
Chocolate has been enjoyed by successive generation since the manufacturing
process was developed in the Victorian Times. Good chocolatiers is an art form
depending on recipe traditions, which have grown over the years. Chocolatiers have
use their skills to make balanced recipe in which all the ingredients combine to
produced chocolate with all the characteristics that enable full delicious taste to be
enjoyed by the consumers.
By today’s standards the first chocolate for eating would have been considered quite
unpalatable. It was the introduction of the Van Houten cocoa press from Holland
that was the major break through in the chocolate production as it provided extra
cocoa butter needed to make a smooth glossy chocolate.
Cadbury’s Milk Tray – 1915
Milk Tray has maintained its popularity in the changing world since the milk
chocolate assortment made with the famous Cadbury’s Dairy Milk chocolate was
first introduced in 1915.
The name ‘tray’ derived from the way in which the original assortment was
delivered to the shops. Originally Milk Tray was packed in five and as half pound
boxes, arranged on trays from which it was sold loose o customers. The half pound
deep – lidded box with the traditional purple background and gold script was
introduced in 1916, followed by one pound box in 1924.
With its stylish, without frills presentation Milk Tray was the assortment for
everyday, not just special occasion and it represented the best buy in the chocolate
for millions of people. The pack design has been regularly updated and the
assortment itself has changed in line with consumers taste and preferences.
By the end mid – thirties the Cadbury’s Milk Tray assortment outsold all its
competitions and today it is still one of the most popular boxes of chocolates in this
Cadbury Schweppes plc, a global beverage and confectionary giant with annual sale
of Rs 20,ooo crores,is the worlds number one non – cola soft drink company having
bottling and partnership operations in 14 countries and franchises of its brand in a
further 86 countries around the world. Its Hundred Percent subsidiary in India
named Cadbury Schweppes Beverage India (private) Limited (CSBIL) started
operation in March 1995. The first brand was launched was crush which was later
followed by Canada Dry, Schweppes Tonic Water, Schweppes Bitter Lemon.
CSBIL with its franchise agreement with 19 bottles throughout India proposes to be
a household name. It has a policy for FOBOs (Franchise owned bottling operations
unlike Coke and Pepsi which prefer COBO,s (Company owned bottling operations).
In FOBO the beverages company only supplies the concentrate and the marketing
support to build brand equity. The other aspects like machinery, bottling line, land
and distribution is the responsibility of the bottler. As its CEO Mr. Ashok Jain says,
“we are the software, they are the hardware”.
1. Very strong brand equity in India.
2. Due to its 54 years presence in India – has deep penetration – 2100
distributors; 450,000 retailers, 60 mid urban (22%) customers.
3. Three sectors; Chocs (70% share), Confec (4%), food drinks (14% -
leader in brown segment).
4. Low cost of production due to economic of scale. That means higher
profits and / or more competitioners. Better market penetration.
5. Second best manufacturing location throughout Cadbury Schweppes.
1. Poor technology in India compared to current international technologies
(Godiva, Mozart, Fazer, Dint, Naushans, etc...)
2. Ltd. Key products, only one central brand (CDM). Pralines range totally
wising in India.
3. “Make in India” tag once the economy opens up wore and imports rush in.
1. Tremendous scope for per capita consumption (160 gms of 8 – 10 kg)
2. Increasing per capita national income resulting in higher disposable
3. Growing middle class and growing urban population.
4. Increasing gifts cultures.
5. Substitute to “Mithais” with higher calories/cholesterol.
6. Increasing departmental stores concept – impulse @ at cash counters.
7. Globalisation: optimal use of global Cadbury Schweppes.
a) Major :-
None. Due to low cost and highest brand equity, it is today in India.
b) Minor :-
Globalization will being in better brands for upper end of the market (Liest,
Monarch, Godiva, etc…).
Will lose market share with globalization (a la Maruti) but will remain brand leader.
P: since the budget range is decontrolled, no political effects are envisaged.
E: 1) increasing per capita income resulting in higher
2) Growing middle class/urban population – increase in
3) Low cost of production – better penetration
S: 1) Per capita consumption expected to increase – fashion
2) Increasing gifts culture – increase in demand
3) Lower cholesterol than “mithais” (sweet meat) –
T: Will have to reinforce technology to international levels
once India is a “free” economy
4 P’S Of Marketing
Satisfaction suffices. But delight dazzles the average company will compete for
customer by conforming to her expectation consistently. But the winner will surpass
them by constantly exceeding her expectation, delivering to her door step additional
benefits which she would never have imagined possible. Cadbury’s offer such
product. The wide variety products offered by the company include:
I. Chocolate & Confectionary
1) Dairy Milk
2) Fruit & Nut
3) 5 Star
10) Milk Treat
III. Food Drinks
2) Drinking chocolate
Make no mistake. Second P of marketing is not another name for blindly lowering
prices and relying on this strategy alone to increase sales dramatically. 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
Physical Distribution – “Place”
BRAND ISN’T THE ONLY ANY MORE. Marketers and finance manager need a
new term to evaluate their business:
Distribution Equity. It takes much more time and effort to build, but once built,
distribution equity is much together to erode.
The fundamental axiom of Indian consumer market is this:
You can set up a state-of –the-art manufacturing facility, hire the hottest strategies
on the block, swamp prime television with best Ads, but the end of it all, you would
be know of selling your products. The cardinal task before the Indian market is
managing is to shoe-horn its product on retail shelves. Buyers are paying for
distribution equity not brand equity and market shares.
Why does the company need distribution equity more anything in India? With
technology and competitive pressure slash in it is becoming increasing difficult for
marketers to retain a unique product
differentiation for ling period. In a
product and price parity situation,
the brand that sells more is the one
that reaches the highest number of
India – 1 billion people, 155 million household has over 4 million retail outlets in
5351 urban markets and 552725 villages, spread cross 3.28 million sq. km.
television has already primed and population for consumption, and the marketer who
can get to the to the consumer ahead of competition will give a hard – to – overtake
lead. But getting their means managing wildly different terrains-climate, language,
value system, life style, transport and communication network. And your brand
equity isn’t going to help when it comes to tackling these issues.
Own distribution network consist of clearing and forwarding (C&F) agents &
distribution stockiest. This network of distribution can either contact wholesalers
and which in turn retailers or the distributors can contact to the retailers directly.
Once the stock product reaches retailers, the prospective customers can have access
to the product.
Cadbury’s distributes the product in the manner stated above.
Cadbury’s distribution network has expanded from 1990 distributors last year to
2100 distributors and 4,50,000 retailers. Beside use of TI tom improves 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 heal effects 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 Nestlé’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.
If an advertisement is to communicate effectively, the receiver must at least half
want it to, and be prepared too take step toward the sender. Effective advertising is
rarely hectoring or loudly explicit…. It often both attracts and generates arm
feelings. More often than not, a successful campaign has a stronger element of the
unexpected a quality that good advertising shares with much worthwhile literature.
To penetrate into the inner recesses of her memory, communication must first ensure
exposure, grab her attention evoke her comprehension, grab her acceptance and then
extract retention competing with thousands of other units of communication trying
to do the same.
Finding showed that the adults felt too conscious to be seen consuming a product
actually meant for children. The strategic response address the emotional appeal of
the band 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, unself conscious, pleasure – seeking child within himself – a
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 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 agency contract has created communication for cinemas and even ATM machines
for the brand.
All ICICI’ s ATM a message flashes on the screen as soon as customer insert his
ATM card. It tells the customer that this would be good time to get out of her
temptation since he/she is bound to be alone. Something familiar is planned for
phone-book as well. In cinemas, Cadbury has a message on-screen just before the
lights are dimmed to give them a chance to get their temptations. There will also be
after dinner sampling in restaurants – to begin with, 30 catteries in Mumbai have
The next round of activity will include the wafer-chocolate Perk and the Picnic bar,
which has faced problems with its taste, because of the peanut it contains. Milk treat
has also been launched in a module bar form, just in time of Diwali gifting market.
Éclairs has got potential for much wide distribution, in a small sweets that airlines,
hostels, and up market retail outlet offer to guest and customers.
Ad spend in 2000 was about 14% of sales and the management said that plans to
maintain as spend at this level in the current year also.
Ad since any discussion today would be incomplete without mention ‘e’ word, the
management plans to tap this new channel of marketing. Beside three company
website (i.e. www.cadburyindia .com, wwww.bourvita.com, www.cadburygift.com
that the company has launched, it had also entered into various marketing
relationship with other portals, specially targeted during festivals and events such as
Valentines day , etc….
It’s a combination of spiffing up its key brand, researching and improving the newer
products that haven’t taken off, supported with high ad – spends that Cadbury hopes
will see it emerges stronger after the current slowdown, as well as expand the
In the 1970s consumers were ready to pay “more for more”, and luxury goods
flourished. In the 1980s, consumers began to demand “more for same”, and the
discounting era grew strong. Today’s consumer demanding “more for less”, and the
winner will be that super value marketers…. Some of today’s most successful
companies recognize those customers are more educated and able to recognize true
Positioning is simply concentrating on an idea – or – even a word defines that
company in the mind of the consumer. It is more efficient to market one successful
concept to one large group of people than 50 product or service ideas to 50 separate
group… repositioning is a must when customer attitude have changed and product
have strayed away from the consumer’s long standing perception of them…
Cadbury’s is an anchor in sea of confectionary products. As a variety of competitive
claims assails her senses, today customer uses complicated decision making process
to assess the alternative before making a purchase. Since Cadbury’s is more clearly
associated with a particular set of attributes in terms of benefits and prices, the
quicker becomes her search process.
Positioning of individual product:
1) CMD: is and always remain flagship brand. The punch by the company for
advertising this product life. ‘Real taste of Life’, itself defines the positioning
of the product. The chocolate is meant for all age groups. It symbolizes fun,
enjoyment, good items. It has goodness of milk, taste and appetite appeal.
2) 5 star: although positioned internationally as an energy bar, 5 star was
positioned on an emotional platform in India during the late 1980s.
Symbolizing togetherness, 5 star was originally targeted at teenagers. In June
1994, the company reworked the strategy for 5 star to make it a source of
energy. In fact, before the launch of Perk, 5 star’s energy bar positioning
made it a snacking chocolate.
3) Éclairs: competing in the chewable toffees segment. Éclairs was re-launched
during the mid-nineties with a new name, Dairy Milk Éclairs.
4) Gems: broadcasting Gems, though, didn’t prove to be feasible proposition
for Cadbury. Targeted at children under 12 years with ‘Gems Bond’
to too teenagers
with the ‘Smart
now, the company is retargeting children with its animated commercial.
“Gems are the best brand to speak to children. Colorful chocolate buttons
appeal most to children and that is why Cadbury is re-targeting children.”
5) Crackle: it was the first Cadbury’s chocolate to have crunch in it. It was
targeted as a funky chocolate to add spark to life.
6) Perk: in September, 1995, Cadbury preempted the launch of Nestlé’s Kit-Kat
by rushing a new brand, Perk into the market. Positioned much further on the
functional scale than 5 star, Perk was meant to be light snack-product for
subduing the first pangs of hunger.
7) Bournvita: positioned as tasty health drink. While its competitors
concentrated only on health aspect, Bournvita combined the nutritious value
Cadbury’s Market Segment
Market place for any product is comprised of many different segments of
consumers, each with different needs and wants. Markets segmentation can be
defined in a number of ways such as:
Demographic variables (e.g. Consumers are groups, gender, material states
The lifestyle of consumers (i.e. their interests and activities) the benefits
which consumers look for in a product or on the occasions when the product
might be consumed.
Cadbury takes into account all these factors when producing a range of
products. It targets different segments within the market, such as the.
Break segment – products which are normally consume as a snatched break
and often with tea and coffee, for example Cadbury’s Perk and snack range.
Impulse segment – these products are often purchase on impulse, eating
these and then. They include product such as Cadbury’s Dairy Milk.
Take home segment – this describes product that are normally purchased in
supermarkets, taken home consumed at a later stage.
The Real Taste of Rejuvenation
It was the market – leader, but sales inched along. It focused firmly on its target
segment, but the real buyer lay beyond. For seven long years, Cadbury’s Dairy Milk
chocolate suffered stagnancy even as other consumer products boomed. Just how
did the company rejuvenate an old brand to create the marketing megs-hit of the
It Stand First Among Second coming. And it wasn’t so much a re-launch as it was
a process of rejuvenation. Over a period of 12 months, starting February, 1994, the
Rs. 314 crore confectionery makers Cadbury embarked on the most outrageous
repositioning exercise in the recent history of Indian marketing. For, it
systematically dismantled the franchise that the company had built over 30 years of
its flagship brand, Cadbury’s Dairy Milk (CDM)-Cadbury’s Milk chocolate until
1986-destroying the very fundamental of generic association that had made million
of Indians refer to a bar of a chocolate as a “Cadbury”.
More proof of the chocolate is in the eating: two years into process, CDM’s market
share at 25%, with sale rising by an average 40% per annum.
Today, The Real Taste of Life campaign, which served
Up chocolate in general, and COM in particular, into the consciousness of adult, has
already become a classic of advertising and marketing. By 1993, Cadbury was
desperately seeking growth for the brand… “With a market share of 70%, trying to
win away customers from competitors in this stagnant market wouldn’t help. They
had to find new customers, people who’d never bought chocolate before. Or, they
had to increase consumption levels”. The obvious solution, in a peculiar
predicament. Despite low penetration, both the brand and the category were
displaying symptoms of age: faltering growth, high recognition, and lack of
excitement. The market research revealed the cause of the graying: chocolate wasn’t
a snack in India. “In mature markets, chocolate straddle a continuum, from boutique
product – packaged raw indulgence – to a casual food”. So, Cadbury whipped up a
growth solution that involved associating the brand with snacking and functionally,
which inevitably go together with high consumption rates in the Western markets.
The next step: identify the barriers preventing consumers from chocolate as a snack.
A battery of test, both quantitative and qualitative, comparing chocolate
consumption to a basket of competitive products revealed an unmistakable answer.
“Cadbury’s Was Caught In Its Own Trap”
How? The company had, over decades, created a context of chocolate consumption
that was now chocking growth possibilities. “The baggage of the past was so
overpowering that people didn’t get influenced by minor shifts in the message”.
In fact, the behavioral and attitudinal patterns conveyed by the communication to
build the brand were proving restrictive. For, Cadbury had, using the traditional
demographic variables of age, socio-economic groups, and usage intensity,
positioned COM as a product that elders – typically, parents – bought for children –
typically, their own.
But admittedly – enduring values of love and sharing, parental affection, and reward
that Cadbury had labored to associate with the brand, which had helped it forge a
relationship with customers, had relegated it to being a special – occasion item,
ruling out increased individual consumption. After all, special occasion item, ruling
out increased individual consumption. After all, special occasion were meant to be a
A typical Ad would show parents bringing home chocolate for their child. It would
never, ever, show the child, or the parent, buying it for himself or herself. The punch
line – Sometimes Cadbury’s Can Say It Better Than Words, and Nothing But
The Best Will Do – reinforced the notion, with an unwelcome side – effect: adults,
as research showed, felt distinctly guilty and embarrassed about eating chocolate,
whether alone or socially.
“Not only were adults not indulging in chocolates, but they were also actively
curtailing child consumption” solution? Forget children as the core consumer.
Universalize the product, targeting the parents.
Despite the Need To Clear The residual memory of CDM’s former association,
caution prevented a big break with the past, forcing Cadbury to experiment with a
combination of continuity and change. The process entailed understanding the
foundation of the brand, since it was these that would support the new structure”.
Out went the caring - and - sharing element, but the family context stayed. “Cadbury
had two pillars, so it made sense to change one”.
Chocolate should be eaten whenever you feel like. It was an impulse item, so why
shouldn’t it be sold as one?”. The first of the two commercial focused on
functionality, purging the emotional element.
Is the storyline, The father watches TV, engrossed, gnawing away at a bar of CDM.
The children enter, followed by the mother-but, by that time, the father has
completed the distinctly un paternal act of devouring the entire bar. The children are
shocked, where upon the produces another bar for them-only to eat that up too.
Finally, the mother brings another bar out of her bag. The last shot more CDM bars
strew around casually.
The second commercial conveyed the same message, depicting four member of a
family doing their own thing on a Sunday afternoon, each casually munching away
on chocolates. The less than – subtle message: eating chocolate’s just an everyday
affair, without special occasion or relationship coming into play. Despite their
strategic intent, both ads failed on pre – airing tests.
Why for stators, children were outraged at the idea of a parent consuming chocolate,
while adults were down right angry at the notion of the father depriving his children
of chocolate bar. Just as important, consumer rejected the idea that chocolate-eating
could be equated with mechanical activities like combing one’s hair. After all,
chocolates were about feelings. There had to be magic, romance, love and emotion.
These elements had been ripped away from the advertising. It was sans emotion”.
“Parent Are Different From Adults”
Even as the ad failed, however, they generated a valuable byproduct, in the form of a
new insight, into adult behavior. “Using transactional analysis on response,
Cadbury’s found that adult as parents behave very differently from adults as adults.
People forbid their children from having chips, but gorge themselves. “The
“The moment the adult was shown in the context of his role as a parent, all his
cognitive preconception about the product would come to the fore. He’d think about
the reasons why, and the block would automatically come up”. Tap child-ego state
within the adult, stimulating desire, spontaneity, and the craving for instant
The crucial question that Cadbury was confronted with: what strategy should it
deploy to rejuvenate COM in a way that would appeal to the child lurking within the
adult? To inject a modern flavor into COM, they chose to create a new brand
identity, borrowing a leaf from marketing guru David Aaker, who decrees that brand
identity should establish a relationship between the brand and the customer by
generating value proposition involving functional, emotional, or self-expressive
“The Ads Had To Be Linkable”
“The consumer will always tell what his current belief system is, not what it should
be Cadbury’s job to mould has habits and behavior in a way that would increase
consumption for product and brand”.
“Impulse Drives Chocolate Sales”
One of the tools Cadbury’s used was Jean – Neal Kapferer’s Brand Prism model to
examine whether contemporary value systems offered a peg on which the brand
could be judge. The study disclosed, interlaid, a distinct shift from collectivism to
individualism, with the pre – 1990’s sacrosanct values of filial and family love being
overshadowed by the manifestation of a larger need for self – expression. “There
was a definite yearning to be free child”. Therein lay the opportunity for both
unshackling consumption and creating all-new association for CDM.
Having decided to barter the distinctly use selfish values of sharing and caring for
the suspiciously self-centered one of self-expression, Cadbury’s people insisted that
the rejuvenate be enriched with compensation – and equally enduring – positive
values: universal truths, enduring human values, and universal moment of joy. To
translate the brief into the commercial, they decide to simply portray occasion of
childlike-but not childish-behavior from adults, without explicitly identifying adults
as the target customer.
“They left the connection to be made by the customer” “In the process they were
able to get viewer involvement and high levels of empathy. Nowhere did they
actually say, you’re an adult, you can eat it. Because nobody wants to be told”. Thus
it was that, the montage of the child in the man-the old man kicking the football; the
pregnant woman carving a chocolate; young girl breaking into a spirit; the young
man tossing a bar of chocolate at his sweet-heart departing in a bus-was created.
That the consumption had to be liked before it could penetrate the cultural resistance
to chocolate consumption by adults was obvious. Taking a contrition stance,
Cadbury decided to test the commercial being devised by O&M’s creative team not
for the tire battery of likeability, comprehension, credibility and behavior
modification – but only for the first two. “If asked upfront, the consumer was hardly
likely to consider the dramatically-different idea credible. Nor was there much
chance of her announcing an immediate change in behavior”. But why likeability
and comprehension? Simple: the first was meant to be the vehicle on which the
daring idea-that adults should enjoy chocolate-would ride into the consumer’s
In other words, the commercial was meant to make him smile at first-and only then
realize the import once of the message, which is where the comprehension had to be
tested. “What was clear in this case was that likeability would have to include
identification and feeling warmth.”
Thodi Se Pet Puja, Khabi Bhi Kahin Bhi!Thodi Se Pet Puja, Khabi Bhi Kahin Bhi!
The Real Taste of Life Campaign
The very first ad in the campaign in 94 was ‘block – Buster’. It depicted the essence
of one and a half glass of milk pouring in to a boy Dairy Milk unique glass and half
in to a chunk icon shows the glass and a half of full cream milk flowing in to the
chunk of dairy milk conveying the deliciousness and taste appeal of the gooey,
creamy, smooth chocolate inside the pack that children like. The mnemonic of 1 ½
glass reached to consumer through every magazines, poster, T.V, newspaper.
The second ad was montage of vignettes from every day lives of young and old
which focused on showing a series of emotions. The ad created a being out the child
in the man created to bring out the child in the. The old man kicking the football, the
pregnant women craving chocolate, young girls breaking into a spirit, the young
man tossing a bar chocolate at his sweet heart departing into a bus. The common
refrain linking them was the adult in a free child mode – spottiness, impulsive and
The ad was protested among adult’s trough focus groups. The ad received an
overwhelming response. It was high on likeability, evoked a great degree of
empathy and identification consumers’ response were those me…… “Feel like
that…….”. “Every feels like this”…….. Brand usage was perceived to cut across all
age groups and accessions. Consumers described dairy milk as “… of all ages”
“Eat, when ever you feel like it…you do not have to wait for an occasion.”
Dairy Milk had successfully enabled the free child in the consumer subsequent
adverting used the same communication strategy.
Kya Swaad Hai Zindagi Ka!Kya Swaad Hai Zindagi Ka!
The next ad featured an on going match in the field. Think of a match India batting
against Pakistan. The score, 6 runs to win with 1 ball left and India wins the match.
The ad shows a girl dancing with jubilation on the cricket field when her hubby hits
the winning stroke. The award winning campaign, designed by ogilvy and matter,
were intended to rid the Indian chocolates eater of that guilt complex. The
advertisement suggested, through not in so many words, that it was ok to be seen
including in a chocolate in public. You could relate the sweetness of success of
chocolate. The ad draws attention to the actual eats experience.
The fourth in this series was the girl with on her hands. The ad focused on showing
how the girl relishes the Dairy Milk when she has mehandi on her hands. The idea
behind this advertisement was to show the nature of chocolate as an impulse –
driven product. Post campaign saw a great turn around. Dairy Milk transformed in to
a young full brand full of zest. It came to be recognized as an expression of
spontaneity and in pulse. The campaign succeeded I softening attitude towards
chocolate and lifting then out of the ream of kiddies / special occasion only. It
embraced a wide range emotion all build around them that chocolate means different
things to different people at different times, but most importantly chocolate is
The New Campaign
And finally, with the launch of the new colloquial advertising campaign ‘Khaannein
Wallon Khaannein Ka Bahana Chahiya featuring MTV VJ Cyrus Broacha, Cadbury
India aimed to ‘substantially’ increase penetration level of the chocolate category in
the next few years.’
The new campaign is worth noting as it clearly differ from the earlier one in terms of
rectifying the consumer perception about chocolate being an up market impulse –
driven product. The attempt now is to change the image, to make chocolate eating a
The current estimated penetration level of the chocolate category is 19% in the
urban market. The objective behind tne new communication on Cadbury Dairy Milk
is to make the chocolate category more socially and culturally relevant and drive
penetration in the process.
The new campaign has been launched in tandem with the old ar@@ Winning ‘Kuch
Khass Hai’ campaign and the media strategy is to let the two co – exist towards a
common vision “providing a Cadbury in every pocket”.
Thodi Se Pet Puja, Khabi Bhi, Kahin Bhi!Thodi Se Pet Puja, Khabi Bhi, Kahin Bhi!
Chocolate Market Share
The Indian chocolate market is getting bigger and better. While on one hand, the
premium segment (composing imported varieties) is opening up on the other,
companies like Cadbury India are launching indigenous product made to
international standards. Of the 20,000 tonne chocolate market worth about
Rs. 400 crore, Cadbury account for about 70% followed by Nestle, with a share of
around 20%. Amul has about 5% of the market, with minor player taking the rest.
The battle, though, is between Cadbury and Nestle. Though with a much smaller
portfolio, Nestle is putting up a tough fight.
From a treat for kids, chocolate are now being positioned near meal substitutes,
thanks to the initiative taken by the Cadbury India during early nineties. The market
itself has become more broad based, in the sense adults are an important target
segment now. The reposting of Cadbury’s Dairy Milk in 1994 as the ‘real taste of
life (through the Slice of Life and Cricket commercial by Ogilvy and Mather) grew
the entire milk chocolate by 20%, and gave the Cadbury’s range – 5 Star, Gems,
Éclairs, Fruit & Nut, Crackle, Nutties, Butterscotch & Tiffns – a new lease of life. In
other words, it facilitated the repositioning of Cadbury’s sub brands in the basket.
Some o the strategic clicked, while other did not quite take off.
The company is pushing the gifting segment, through occasion linked gifts.
Chocolates contribute to 64% of Cadbury’s turnover. Confectionary sales
accounting for 12% of turnover is contributed largely by Éclairs. The company
attempted expanding its confectionary product portfolio, with launch of sugar based
confectionary goodly and fruits, without much success. Cadbury also has a strong
brand vita in the malted health drink category which account for 24% of turnover.
There exists an even larger unorganized market in the confectionary segment.
Cadbury has 4% of the market share in this segment. Leading national players are
nutrine, Pary’s Ravalgoan, Candico, Parle, Joyoco India and Perfetti, the MNCs
such as Joyco and Perfetti have aggressively expanded their presence in the country
in the last few years.
Malted food drinks category consists of white drink and down drink. White drinks
accounts for almost two third market of the 82,000 for market south and east are
large market for drinks, accounting for largest proportion of all India’s sale.
Cadbury’s Bourn Vita is leader in the down drink coca based segment in the white
drink segment Smith Kline’s Horlicks in the Nestle Milo , GCMMF nitramul and
other Smith Kline brand Boost, Maltova and Viva Cadbury bold 14% market share
in food drinks segment.
Despite tough market condition and increased competition Cadbury managed to
record a double digit (11%) top line growth in 2000. The company achieved a
volume growth of 5.2%. This was achieved through innovative marketing strategies
and focused advertising campaign foe flagship brand Dairy Milk. Net profit rose
sharply by 41.8% to Rs. 520 million. Reduced material and energy cost and tioter
control over working capital over working capital and capital expenditure enabled
the company to improve the profitability. Company added 8 million new consumers
and saw its outlets grow to 4.5 lakhs and consumer to 60 million.In the food
segment, Britannia is the leader brand with 21% among those who expressed an
opinion saying that they like advertising for the brand Cadbury was clearly No.2
with 18% to which CDM throw in its weight with 13% and pork with 4%. For the
Chowlate company, Khane Walo Lo, Khane Ka Bhanna and the Karwa Cauth,
Sports are clear winners.
Tied for the brand place are Amul, Parle and south based Arun Le Gram with 5%
each. Disappointment among bid brands Kissan and Maggi and Kwality Walls (1%)
Cadbury’s Fruit & Nut
Cadbury target kids with Milk Treat: - It is a product that talks directly to the
target consumer. The product benefits have
been defined as “The goodness of milk to the
fun of chocolate”. it combines both good
health, multinational value of milk along with
the values of fun and excitement. The kinds
formally associate with Cadbury chocolate offering.
Temptation :- It is aimed at the niche “international chocolate “ segment of the
chocolate market a segment how upgrade from
brands such as Cadbury’s to premium
international offering such as Tolerance, Lindit
and Hersheys. Roughly 5%of the total
domestic consumption expected to grow to
some 10%. This segment is too good to miss
out on. The
Cadbury’s range available in India did not
offer consumer an option to upgrade to
international chocolate within the Cadbury’s fold. Temptation is an attempt to lug
niche, priced Rs. 30.
In the branded impulse market, the share of chocolate in 6.6% and Cadbury’s share
in the impulse segment is 4.8% factor like changing attitude, higher disposable
income, a large youth population, and low penetration of chocolate (22% of urban
population) point towards a big opportunity of increasing the share of chocolate in
the branded impulse among the costly alternative in the branded impulse market.
It appears that company is likely to play the value game to expand the market
encouraged by the recent success of its low priced ‘value for many packs’.
Various measures are undertaken in all areas of operation to create value for the
New channel of marketing such as gifting and child connectivity and low end value
for money product for expanding the consumer base have been identified.
In terms of manufacturing management focus is on optimizing manufacturing
efficiencies and creating a world class manufacturing location for CDM and Éclairs.
The company is today the second best manufacturing location of Cadbury’s
Schweppes in the world.
Efficient sourcing of key raw material i.e. coca through forward purchase of
imports, higher local consumption by entering long term contract with farmer and
undertaking efforts in expanding local coca area developing. The initiatives in the
terms of development a long term domestic coca a sourcing base would field
maximum gains when commodity prices start moving up.
• Use of it to improve logistic and distribution competitiveness
• Utilizing mass media to create and maintain brands.
• Expand the consumer base. The company has added 8 million new
consumer in the current year and how has consumer base of 60 million
although the growth in absolute numbers is lower than targeted, the
company has been able to increase the width of its consumer base
through launch of low priced products.
• Improving distribution quality by addressing issues of product stability
by installation of visi coolers at several outlets. This would be really
effective in maintaining consumption in summer, when sales usually
dip due to the fact that the heat effects product quality and thereby
• The above are some steps being taken internally to improve future
operation and profitability. At the same time the management is also
aware of external changes taking place in the competitive environment
and is taking steps to remain competitive in the future environment of
free imports, lower barrier to trade and the advent of all global players
in to the country. The management is not unduly concerned about the
huge deluge of imported chocolate brands in the market place.
It is of the view that size of this imported premium market is look small to threaten
its own volumes or sales in fact, the company looks at the tree important as an
opportunity, where it could optimally use the global Cadbury Schweppes portfolio.
The company would be able to not only provide greater variety, but it would also be
more cost effective to test market new product as well as improve speed of response
to change in consumer preference through imports. The only concerns that the
company has in this regard is the current high level of duties, which limit the
opportunity to launch value for money products.
Changing Product Mix
Contributing to turnover
Contributing to turnover
Chocolate 59% 64%
Sugar Confecting 9% 12%
Food Drink 32% 24%
Current Market Share
Sugar Confectionary 4.0%
Food Drink 14.2%
Expanding Distribution Reach
2001 + Distribution
450000 Retail Outlet
60 Million Consumers
• Maintain dominance in chocolate, confectionery and market leadership in
• New channels such as gifting, child connectivity and value for money
offering to be the key growth drives.
• Grow volume sales at least 20% p.a. over the next years.
• Achieve the goal of best manufacturing location in Cadbury Schweppes
world for Dairy Milk and Éclairs.
• One new major product launch every year.
The Cadbury Story
Cadbury’s success story
In 1984, John Cadbury founded U.K. company with one aim:- to create the highest
quality chocolate. By1969, when Cadbury merged with the soft drink giant.
Schweppes, Cadbury brands were already famous all around world.
Today Cadbury’s production are enjoyed in 120 countries, with 40 chocolate
confectionary brands, Cadbury dominated markets as far as the U.K. and Australia
that’s why Cadbury have been dubbed “The world’s master chocolate makers”.
The secret of Cadbury’s success
What is the secret of Cadbury’s continuing success first there’s the careful selection
of the finest coca beans from west Africa, as well as tasty hazel nuts from Turkey
and the fine sheet and choicest natural ingredient available to us anywhere.
Finally there’s skillful marketing Cadbury always takes extreme care in selecting
and marketing the right range of product in every cause.
The right product, the right partners, the right marketing, the promotional back up and
the right employees. These are the ingredients in Cadbury’s latest recipes for success.
Right from the stand Cadbury Dairy Milk Chocolate success has been based on 4
Prior to deciding on the communication strategy for Cadbury Dairy Milk it was
important to understand the habits and mindset towards chocolates. A large scale
usage and attitude study was conducted among adults. The research revealed that:
Adults were primarily purchasers, and not consumers of chocolates. However, as for
most children’s product, they exercised a strong influence on the children’s
consumption behavior. Adults acted as gatekeepers of sorts when it came to food
items. Considering the advertising history, it came as no surprise that chocolate were
perceived as “kiddy” product and certainly not part of the repertoire for products
consumed socially. Chocolate consumption among adults evoked feeling of self
indulgence and guilt.
Chocolates seemed to offer virtually no significant positive and certainly no overt
psychogenic benefits. Food and nutritive values associated with chocolates were
low. And, in fact they were categorized as a
hazard, being responsible for obesity, dental
and respiratory problems.
Brands images were undifferentiated and the
category had low saliency, “can do without”.
Purchase was almost always planned and
triggered by motives ranging from celebration,
bribing and reward to gifting. For an impulse
product category such as chocolates, this was
likely to limit market growth. This conditioning and social learning about chocolates
was restricting consumption among adults as well as driving them to restrict
There was evidence to suggest the need for shifting focus from child as chocolates
consumers to adult’s communication, hitherto, had always addressed adults as
purchasers rather than consumers. Communication had positioned chocolates for
specific situations, thus imposing boundaries for the growth of the market. Emphasis
on casual everyday situation could help promote core consumption opportunities.
For low involvement product categories like chocolates which offer emotional and
sensory benefits, it is suggested that communication is most effective with repeated
likeable ads promising unique and authentic emotional benefit a shift from
portraying everyday moments as an opposed to special ones.
The radical change however was focus on bringing out the spontaneity in adults.
And, finally CDM a symbol of manipulation was henceforth to symbolize fun,
enjoyment and good times.
The mnemonic of a glass and half milk was to reinforce the goodness of milk and
cue physiological benefits.
The only variation was in the Rituals, where communication had shifted from, and
special occasion to every moment. A strong volume growth was witnessed in the
early 90’s when Cadbury, repositioned chocolates from children to adult
consumption. The biggest opportunity is likely to stem from increasing the
The Cadbury management has cut down on its growth target by setting a 10%
average volume target for next 3 years (as against previous growth) coupled with in
factionary price increases, this could translate into top line growth of 14 –15%. This
target also appears difficult to achieve given the consumer slowdown and the fact
that the company’s consumer slow down and the fact that company is dependent on
a single category chocolates to drive growth. Effect it expanding confection any
portfolio have also not yielded desired results. The management has declared its
intention to focus only in Éclairs (which forms a major position of its 4% share in
the confectionary segment) for the time being in this category.
In chocolates too ones remain on the 2-3 key brands as CDM, perk in E claims
which have supported growth in the past. While new launched such as milk @ and
Perk slims have been doing will, the management expects that dairy milk would
continue to be the central driving force in Cadbury’s growth and that all other brands
would remain peripheral to this central brand.
Few Concerns Come To Mind
With a market share of 70% in the chocolate category and with the free availability
of international brands that you see in the market today, it is only natural that
Cadbury’s market share will move down from here marinating a 70% market share
in a closed environment may have been easy, but it certainly won’t be easy in
liberalized environment of free imports. And whatever be the anomalies of taxation
or low, the consumer is surely going to have a wider choice. And it is going to be
shared with other brands too in future. There is additional challenge of Cadbury’s
brand just aiming market share when the consumer has a wide portfolio of brand to
While there would be new chocolates launch towards the end of the year, the
company has ruled out a real big chocolates launch in the current year. And it is too
early yet to comment on the long term response to the new launch temptations. They
say chocolates are mostly am impulse purchase. Therefore consumer would prefer
smaller, low cost packs to bigger higher priced ones.
The growth trend of the brands therefore clearly indicates that the only brand that
has grown is the one that gas received tremendous marketing and advertising
support Dairy Milk withdraw support for any brand and growth loses momentum. In
such scenario, for how long and how many brands can the company continuously
POSITION OF THE VARIOUS BRANDS IN THE
MARKET HAS BEEN LISTED BELOW
Positioning Nestle’s brands Positioning
Fruit n Nut
“The Real Taste
adults as an
time purchase –
Positioned as an
any time snack.
5 Star /
KitKat Positioned as a
“Thodi si Pet
5 Star Energy
bar Reach for
“Have a Break,
Have a Kit Kat”
DATA ANALYSIS AND FINDINGS
Data was tabulated manually and was also analysed manually.
Excel was used to make graphs had pie charts.
Main technique used were :
Modal value was used to analyse the questions, which has 2 or
more choices as their answers.
Simple average were used to get answer to questions
FINDINGS AND SURVEY
1. Do you eat chocolates?
2. Which brand of chocolates do you use?
Cadbury's Nestle Amul Others
3. Where do you buy chocolates from?
4. Are you aware of any campaign of the above brands?
5. Which cadbury’s product do you usually prefer or use?
24 35 40
Dairy Milk 5 Star Fruit & Nut Perk Temptation
6. Do you think Cadbury’s chocolate is easily available in market ?
This company project has demonstrated “CADBURY’S
MARKETING AND COMPETITIVE STRATEGIES” that has
proved to be extensive through, and of great benefit to the company in
furthering its competitive advantage.
In this project it possible to see the success of Cadbury’s in its indorse
its strong potential to continue to do well.
• A L Ries (1996), “Focus” Harper Collins Publishers Ltd.
• David A. Aaker (1991), “Managing Brand Equity”, The Free Press.
• David A. Aaker (1996) “Building Strong Brands”, The Free Press.
• Philip Kotler (Eighth Edition) “Marketing Management”, Prentice Hall
of India Ltd.
• Advertising and marketing Magazine
• The Economic Times – “Brand Equity”
• Company Literature
• Market survey and questionnaires
• Web site: www.cadburyindia.com
• Web site: www.Cadbury.uk.com
• Business World
• Business Today
1. Do you eat chocolates?
2. Which brand of chocolates do you use?
3. Where do you buy chocolates from?
4. Are you aware of any campaign of the above brands?
5. Which cadbury’s product do you usually prefer or use?
Dairy Milk 5 Star
Fruit & Nut Perk
6. Do you think Cadbury’s chocolate is easily available in market ?
7. Describe Cadbury’s Chocolate in one word?
8. Your comments on Cadbury’s products?
I am thankful to Ms. Smita Sharma (Brand Manager : New Delhi
Branch of Cadbury) for providing me important information essential
for the successful completion of the project.
I am also extend heartiest thanks to Dr. K.R. Chaturvedi (Internal
Guide) who initiated this interesting project and helped us solve all the
difficulties confronted at various stages.
APEEJAY INSTITUTE OF MANAGEMENT
PROJECT REPORTPROJECT REPORT
“Market Strategies OF“Market Strategies OF
CADBURY INDIA LTD.”CADBURY INDIA LTD.”
“Real Taste of India”“Real Taste of India”
Submitted To:Submitted To:
AIT SCHOOL OF MANAGEMENT affiliated to Dr. B.R.AIT SCHOOL OF MANAGEMENT affiliated to Dr. B.R.
Ambedkar University, AgraAmbedkar University, Agra
In the Partial Fulfillment of the requirement for the Award ofIn the Partial Fulfillment of the requirement for the Award of
Degree of Bachelor of Business AdministrationDegree of Bachelor of Business Administration
In MarketingIn Marketing
Submitted BySubmitted By
NARENDER BHATINARENDER BHATI
ROLL NO. 173ROLL NO. 173
BATCH- 2003-2006BATCH- 2003-2006
SUPERVISOR’S CERTIFICATESUPERVISOR’S CERTIFICATE
This is to certify that Mr. Narender Bhati a student of Bachelor
of Business Administration, APEEJAY INSTITUTE OF
MANAGEMENT, GREATER NOIDA has successful
completed his project under my supervision.
During the project, he has worked on Project Titled “Marketing
Strategies of Cadbury India Ltd.” In partial fulfillment for the
award of Degree of Bachelor of Business Administration, Dr.
B.R. Ambedkar University. The project report work done by
the candidate has not been submitted to any other university for
the award of any degree.
His performance has been good during the project research.
Prof. R.K. Agarwal Dr. K.R. Chaturvedi
(Director) Faculty of Management
AIT School of Management AIT School of Mgmt.
Greater Noida Greater Noida
I hereby declare that this project report on the Topic “Marketing
Strategies of Cadbury India Ltd.” Is an original work done by me under
the guidance of Dr. K.R. Chaturvedi, Faculty.
APEEJAY INSTITUTE OF TECHNOLOGY & MANAGEMENT. This
is submitted in partial fulfillment of Bachelor of Business
APEEJAY INSTITUTE OF MANAGEMENT
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