BRAND OVER A PERIOD TIME

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BRAND OVER A PERIOD OF TIME

CADBURY

SUBMITTED TO:

Dr. Kavita Kshatriya

Prof. NRIBM

SUBMITTED BY:

Nikita Agrawal (09003)

Krutika Barot (09008)

Pooja Kadakiya (09030)

Sachin Shah (09090)

SUBMITTED ON:

20th October 2010



N.R. INSTITUTE OF BUSINESS MANAGEMENT

BRAND OVER A PERIOD TIME

CADBURY WORLD WIDE:

y Cadbury India is a fully owned subsidy of Kraft Foods Inc.

y It creates a global powerhouse in snacks, confectionery and quick meals.

y Company with sales in approximately 160 countries & employs approx 140,000 people.

y Ever since the CADBURY factory was set up in India in 1947, Cadbury chocolates have

ruled the hearts of Indians with their fabulous taste.

y Considering the penchant we Indians have for sweets, its not surprising that these sweet,

smooth, milky & irresistibly delicious chocolates are the best childhood gift any Indian

child could get.y Thank God for young JOHN CADBURY who ventured into the chocolate business over

150 years age, way back in England, in 1824.

y Long gone is the dry chocolate supplied by John Cadbury in his Birmingham grocery

store. Today more than 250 million bars of Dairy Milk are produced & consumed every

year.

y First Factory - About the year 1780, the first machine-made chocolate is produced in

BARCELONA.

y With Milk - After eight years of experimenting, the SWISS DANIEL PETERS puts the

first MILK CHOCOLATE on the market in 1875.

y Melting Sweetness - RODOLPHE LINDT of Berne produces chocolate which melts

on the tongue for the first time in the year 1879.

VALUES:

y Working together to create brands people love³.

y The core purpose captures the spirit of what we are trying to achieve as a business.

y To collaborate and work as teams to convert products into brands.




PURPOSE:

y Setting stretched financial objectives.

y Adopting Value Based Management for major strategic and operational decisions and

business systems.

y Creating an outstanding leadership capability within their management.

y Sharpening their company culture to reflect accountability, aggressiveness and

adaptability.

y Aligning their management rewards structure with the interests of the shareowners.

PRODUCT LINE:

The market major of Chocolates offers the following products in the market:-

y Chocolates like Cadbury dairy milk, perk, celebrations, temptations, five star, éclairs,

gems, fruit & nut, Cadbury crackle and many more«..

y S nacks like Cadbury bytes

y Beverages like Bournvita, Cadbury delight

y Candy like Cadbury halls

y G ums like Bubbaloo

BRAND PORTFOLIO:

y 11 brands with more than $1 billion in revenue.

y 70+ brands with more than $100 million in revenue.

y 40+ brands over 100 years old.

y 80% revenue from #1 share positions.




CADBURY DAIRY MILK

The story of Cadbury Dairy Milk started way back in 1905 at Bournville, U.K., but the journey

with chocolate lovers in India began in 1948.

The pure taste of Cadbury Dairy Milk is the taste most Indians crave for when they think of

Cadbury Dairy Milk. The variants Fruit & Nut, Crackle and Roast Almond, combine the classic

taste of Cadbury Dairy Milk with a variety of ingredients and are very popular amongst teens &

adults.

Recently, Cadbury Dairy Milk Desserts was launched, specifically to cater to the urge for

'something sweet' after meals. Cadbury Dairy Milk has exciting products on offer - Cadbury

Dairy Milk Wowie, chocolate with Disney characters embossed in it, and Cadbury Dairy Milk 2

in 1, a delightful combination of milk chocolate and white chocolate. Giving consumers an

exciting reason to keep coming back into the fun filled world of Cadbury.

BRAND PROMISE:

y Cadbury Dairy Milk is the most delicious, best tasting chocolate.

y A moment of pure magic.

BRAND CHARACTER:

y Cadbury Dairy Milk 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 80¶S:

y Get people accustomed to chocolates- primarily seen as a western taste

y Do so by reaching out to the masses in a land where mindsets and preferences are as

diverse as the country itself

y Brand was considered as a surrogate of parental affection for their children




y The chocolate goodness (appetite appeal) was being harnessed

POSITIONING

Cadbury Dairy Milk positioned itself as,

µThe perf ect expression of parental love¶

µS ometimes a Cadbury can say it better than words¶

CATEGORY AUDITS IN EARLY 1990¶S

y Chocolate are meant for kids only

y S

een as an indulgence product

y Negative associations

± Too much intake is bad

± Bad for health

With communication consciously addressing kids, consumption also got restricted within the

same segment results in brand stagnation.

Mark eting Challenge

y To expand the consumer base by making Cadbury Dairy Milk inspirational and desirable

to the adult segment.

y Communication task was to increase category relevance, give consumers a taste of life

the Cadbury Dairy Milk way - real, fun and free.

y Integrate the "real" chocolate of Cadbury Dairy Milk to "real" feelings.

The atmosphere at that time«

y The new resurgent India.

y The era of globalization had sowed the seeds of µI wanna break free¶ syndrome

y Avenues for freedom for expression were more than welcome.




The BIG idea

y Cadbury Dairy Milk- ³The chocolate for the kid in all of us.´

y The Communication

³The Real Taste of Life´

Brand Positioning

CDM is the perfect expression of spontaneous, happy, joyous feelings.

Eating CDM provides the µReal Taste of Life¶ experience.

In 1997

y Hurdles at a competitive level

± Launch of Kit Kat which was considered as young, trendy, future, exciting, smart

± Threat from imported premium moulded brands like Lindt, Ritter, Van Houten.

y Hurdles at the communication level

± ³Real Taste of Life Campaign´ cut ice with the metro audience,

± The barriers of Middle/Bottom end consumers still remained to be addressed

± As a result, brand growth rate was slower than the chocolate market growth

The ³Indianisation´ of the brand

To increase width of consumption by entering the Indian mind-space - Make Cadbury Dairy

Milk a part of Indian customs and mores.

For Infrequent users

Position Cadbury Dairy Milk as the chocolate meant for everyone

Chocolate = Cadbury Dairy Milk




Creative Idea

You don¶t need any special reason to eat Chocolate. In the early 90's, chocolates were seen as

'meant for kids', usually a reward or a bribe for children. In the Mid 90's the category was re-

defined by the very popular `Real Taste of Lif e' campaign, shifting the focus from `just for kids'

to the `kid in all of us'. It appealed to the child in every adult. And Cadbury Dairy Milk became

the perfect expression of 'spontaneity' and 'shared good feelings'.

The 'Real Taste of Life' campaign had many memorable executions, which people still fondly

remember. However, the one with the "girl dancing on the crick et field" has remained etched

in everyone's memory, as the most spontaneous & un-inhibited expression of happiness.

This campaign went on to be awarded 'The Campaign of the Century', in India at the Abby (Ad

Club, Mumbai) awards.

In the late 90's, to further expand the category, the focus shifted towards widening chocolate

consumption amongst the masses, through the 'K hanewalon K o K hane K a Bahana Chahiye'

campaign. This campaign built social acceptance for chocolate consumption amongst adults, by

showcasing collective and shared moments.

TURNING POINT:

y Worm controversy hit Cadbury in Oct 2003.

y Fungus layer on portions of its chocolates.

y A swarm of tiny white worms crawling out of the chocolate nuggets

y State Food Laboratory at the Public Health Institute said ³the chocolates were insect-

infested and unfit for eating¶¶.

y FDA began seizure of the chocolate not only from all outlets across the state but also

from the Talegaon Plant.

y FDA also ordered inspection of Stock at company¶s Mumbai Plant.

y Peak Season Sale and outsourcing model affected due to controversy.




EFFECTS:

y The heat of negative publicity melted Cadbury's sales by 30 per cent, at a time when it

sees a festive spike of 15 percent.

y Net profit in 2003 dipped 37 per cent to Rs 45.6 crore as compared to a 21 per cent

increase the previous year.

y Retailer stocking and display dropped, employee morale especially that of the sales team

was shaken.

y The Company had to shelve its plans of becoming a major sourcing hub for British

Chocolates and beverages giant Cadbury Schweppes.

y The largest impact on sales has been seen in Mumbai, Pune and Nagpur in Maharashtra,

Cochin in Kerala, Bangalore and Hyderabad.

REASONS:

y Aggressive marketing by Company while neglecting on the Quality of Retailers.

y Lack of efforts to Educate Retailers and ensure adequate hygienic storage conditions at

retail outlets.

y Poor quality in packaging of product.

y Issues related to transportation of product.

y No Norms in terms of Storage for Chocolates.

TWO PHASE STRATEGY

Phase 1: Presenting Cadbury¶s view (October-December 2003)

y The agency set up a media desk to ensure that no media query went unanswered.

y The Cadbury¶s Managing Director addressed consumer concerns.

y Project Vishwas (Trust).

y Editorial Outreach Program with 31 media editors across affected cities.




Phase 2: Packaging Change and Communication (January ± March 2004)

P ackaging:

y New µpurity sealed¶ packaging ( Jan 2004) - in

vestment of Rs 15 crore on imported

machinery

y Metallic Poly-Flow was costlier by 10-15% but Cadbury didn¶t hike the Pack Price

y Investment of millions of Dollars leads to achievement in production process in 8 weeks

that would normally take 6 months.

Advertisement Weapon:

y Brand Ambassador to reinforce the credibility

y Amitabh Bachchan, a legendary Indian film star, was chosen, as he embodied the values

of Cadbury as a brand± timelessness, the love and trust they both share with the people

across India, makes this an ideal partnership.

y Media Conference to compare the old and new packs with an innovative comparison kit.

y A VID

EO news release with packaging shots and factory shots was gi

ven to tele

vision

channels.

y Audio-Visual ... series of sales conferences to enthuse and reassure salespersons.

y The announcement of the new pack -a testimonial advertisement on TV called

µSincerity¶.

CAMPAIGN RESULTS & MEASUREMENT

y Media Coverage

± All Media reports carried Cadbury¶s point of view

± 378 clips in over 11 languages covering the new packaging and its benefits.




y Sales

± Sales declined drastically between week 1 to week 10 of the crisis.

± Within 8 weeks of introduction of new packaging and communication sales

volume reached to the pre-incident levels.

y Image

± Upward movement in ratings amongst consumer

± Media¶s positive coverage and the trade¶s positive pre-disposition played a huge

part in helping in Cadbury regain its reputation.

CADBURY DAIRY MILK IN LAST DECADE:

The 'Kuch Meetha Ho Jaaye' campaign associated Cadbury Dairy Milk with celebratory

occasions and the phrase "Pappu Pass Ho Gaya" became part of street language. It has been

adopted by consumers and today is used extensively to express joy in a moment of achievement /

success.

The interactive campaign for "Pappu Pass Ho Gaya" bagged a Bronze Lion at the prestigious

Cannes Advertising Festival 2006 for 'Best use of internet and new media'.

The idea involved a tie-up with Reliance India Mobile ser vice and allowed students to check

their exam results using their mobile ser vice and encouraged those who passed their

examinations to celebrate with Cadbury Dairy Milk.

The 'Pappu Pass Ho Gaya' campaign also went on to win Silver for The Best Integrated

Marketing Campaign and Gold in the Consumer Products category at the EFFIES 2006 (global

benchmark for effective advertising campaigns) awards.

During the 1st World War, Cadbury Dairy Milk supported the war effort. Over 2,000 male

employees joined the armed forces and Cadbury sent books, warm clothes and chocolates to the

front.




Currently Cadbury Dairy Milk¶s new positioning is as for µShubh Aarambh¶ considering the

cultural value of having something sweet before going for some important work. The ad of a girl

standing at the bus stand and that of an old lady eating Cadbury Dairy Milk before wearing a

jeans for the first time.

Hence, Cadbury Dairy Milk has Indianised the brand based on the Indian cultural values time

and again by positioning itself in that manner.




CADBURY PERK

A pretty teenager; a long line, and hunger! Rings a bell? That was how Cadbury launched its new

offering; Cadbury Perk in 1996. With its light chocolate and wafer construct, Cadbury Perk

targeted the casual snacking space that was dominated primarily by chips & wafers. With a

catchy jingle and tongue in cheek advertising, this 'anytime, anywhere' snack zoomed right into

the hearts of teenagers.

Raageshwari started the trend of advertising that featured mischievous, bubbly teenagers getting

out of their 'stuck and hungry' situations by having a Cadbury Perk. Cadbury Perk became the

new mini snack in town and its proposition "Thodi si pet pooja" went on to define its role in

the category.

As the years progressed, so did the messaging, which changed with changes in the consumers'

way of life. To compliment Cadbury Perk's values, the bubbly and vivacious Preity Zinta became

the new face of Perk with the 'hunger strike' commercial in the mid 90's.

In the new millennium, Cadbury Perk moved beyond just owning 'hunger' to a "K abhi bhi kaise

bhi" position, because the urge for Cadbury Perk could strike anytime and anywhere.

With the rise of more value-for-money brands in the wafer chocolate segment, Cadbury Perk

unveiled two new offerings - Perk XL and XXL. The temptation to have more of Cadbury Perk

was made even greater with the launch of Cadbury Perk Minis in 2003 for just Rs. 2/-

In 2004, with an added dose of 'Real Cadbury Dairy Milk ' and improved waf er', Perk

became even more irresistible. The product was supported in the market with a new look and a

new campaign. The advertisement spoke of the irresistible aspect of the brand, with 'Baaki sab

Bhoola de' becoming the new mantra for Cadbury Perk.

Did you know:

Cadbury Perk advertising has been a launch pad for Bollywood stars - Preity Zinta,

Raageshwari, Gayatri Joshi and Amrita Rao, were all Perk models before they made it

big on cinema screens.




CADBURY FIVE STAR

Chocolate lovers for a quarter of a century have indulged their taste buds with a Cadbury 5 Star.

A leading knight in the Cadbury portfolio and the second largest after Cadbury Dairy Milk with a

market share of 14%, Cadbury 5 Star moves from strength to strength every year by increasing

its user base.

Launched in 1969 as a bar of chocolate that was hard outside with soft caramel nougat inside,

Cadbury 5 Star has re-invented itself over the years to keep satisfying the consumers taste for a

high quality & different chocolate eating experience.

One of the key properties that Cadbury 5 Star was associated with was its classic Gold colour.

And through the passage of time, this was one property that both, the brand and the consumer

stuck to as a valuable association.

Cadbury 5 Star was always unique because of its format and any communication highlighting

this uniqueness, went down well with the audiences. From 'deliciously rich, you'd hate to

share it' in the 70's, to the 'lingering taste of togetherness' & 'Soft and Chewy 5 Star' in the

late 80's, the communication always paid homage to the product format.

More recently, to give consumers another reason to come into the Cadbury 5 Star fold, Cadbury

5 Star Crunchy was launched. The same delicious Cadbury 5 Star was now available with a dash

of rice crispies.

Cadbury 5 Star & Cadbury 5 Star Crunchy now aim to continue the upward trend. This different

and delightfully tasty chocolate is well poised to rule the market as an extremely successful

brand.




CADBURY BYTES

Being the market leader in chocolates with a 70 per cent share, the company has attempted to

stretch the boundaries within chocolate confectionery. It has also been adventurous in unleashing

a brand new category.

Introducing the concept of sweet snacking, it launched Cadbury Bytes in the south with the

positioning `Snacking ka meetha f unda.' The product is a crunchy wafer pillow with a choco-

cream centre and is being rolled out nationally. Explaining the need to introduce this new

category, Bharat Puri, Managing Director, Cadbury India, says, "While we were sure of our core

competencies, there was need for innovation to deliver double-digit growth. What we found was

that we were underrepresented in the area of snacking on the go and that there was a need for a

light crunchy snack." While entry into salted snacks was ruled out, sweet snacks were the

obvious choice, and Bytes is unique to the chocolate major's Indian portfolio.

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

snack market. There are three variants of Bytes available in the market - Regular, Coffee and

Strawberry, at two price points- Rs 5 and Rs 10.

Cadbury Bytes is targeted at teens as they are the largest consuming segment of packaged snack

category.T

hey are also the gateway to the family, especially for a new sweet snack.

With Bytes, Cadbury has entered into a new category with well entrenched and established

brands. Cadbury Bytes is positioned as the 'only sweet snack' in the world of salty snacks. The

proposition that had arrived is "Snacking ka meetha funda", where it takes a pot-shot at other

snacks, by saying `Har snack namk een nahi hota'. The product is all about breaking a cliché

and teenagers identify with breaking stereotypes. The new commercials- 'Tommy' and 'Villain',

talk about breaking the stereotype.




CADBURY CELEBRATIONS

Cadbury Celebrations was aimed at replacing traditional gifting options like Mithai and dry-

fruits during festive seasons.

Cadbury Celebrations is available in several assortments: An assortment of chocolates like 5

Star, Perk, Gems, Dairy Milk and Nutties and rich dry fruits enrobed in Cadbury dairy milk

chocolate in 5 variants, Almond magic, raisin magic, cashew magic, nut butterscotch and

caramels.

The super premium Celebrations Rich Dry Fruit Collection which is a festive offering is an

exotic range of chocolate covered dry fruits and nuts in various flavours and the premium dark

chocolate range which is exotic dark chocolate in luscious flavours Cadbury Celebrations has

become a popular brand on occasions such as Diwali, Rakhi, Dussera puja.

It is also a major success as a corporate gifting brand. The communication is based on the

emotional route and the tag line says "rishte pakne do" which fits with the brand purpose of

strengthening your relationships with something sweet.




CADBURY TEMPTATIONS

Ever see people hide away their chocolate since they don¶t want to share it! If you have, then its

likely to be a bar of Cadbury Temptations! Cadbury Temptations is a range of delicious premium

chocolate in five flavours.

Research revealed a niche segment of ³ chocoholics´ - those exposed to international chocolates

and those who love a variety of chocolates but possibly find the price of international chocolates

too high.

Cadbury Temptations is a range targeted at this segment of discerning chocolate lovers. The

Cadbury Temptations range is available in 5 delicious flavour variants - Roast Almond Coffee,

Honey Apricot, Mint Crunch, Black Forest and Old Jamaica. With its international quality

chocolate Temptations soon became a popular brand for "chocoholics".

The advertising positioned Cadbury Temptations as a chocolate range so delicious that it was

"too good to share"

ECLAIRS

In India, Cadbury Dairy Milk Eclairs has been the most preferred brand in the Eclairs category

for years and has always been a favourite with consumers.

Eclairs advertising over the years has talked about the mesmerizing taste of Eclairs because of

the Cadbury Dairy Milk chocolate it contains at its center. The 'K ar De Dil Pe Jadoo' campaign

illustrated this in a youthful college context. The Eclairs Crunch variant has also had an

encouraging response from both teens and pre-teens. Currently, the chewy and the crunchy

variants are both enjoyed by the Eclair consumer.




GEMS

The saying "Good things come in small packets" has been proven right many a times and it

couldn't have been truer for the pretty chocolate buttons called Gems. Who can forget the unique,

brightly colored chocolate buttons with crispy shells, encased in a pack that's as colorful as the

product itself?

Unrivalled in all these years, Cadbury Gems has captured every consumer's fantasy for almost 4

decades. Little wonder that Cadbury Gems, the brand that came into India in 1968 is still going

strong.

The sheer taste and the fun associated with eating Cadbury Gems and the joy of sharing it with

friends has made the brand a dear companion and a source of nostalgia for consumers.

Cadbury Gems brings happiness to the consumer's world. With this promise in mind, Cadbury

Gems has always had 'Masti' as the key proposition in all its communication. In fact, Cadbury

Gems is always a willing ally for pranks and fun.

Cadbury Gems has continuously tried to be relevant and exciting for consumers. In its constant

attempt to contemporaries, a unique stand up tube pack with a flip top was launched, which

became an instant hit with consumers.

Early 2006 gave consumers one more reason to celebrate with Cadbury Gems; the launch of

Cadbury Fruity Gems, a fruit flavoured variant with a crispy shell outside and white chocolate

inside. Now consumers had not one, but two reasons to enter the 'Masti' world of Cadbury Gems.

Today, Cadbury Gems has established itself as one of the leading brands in its segment. With the

single-minded purpose to delight every consumer and help them discover the fun, exciting and

adventurous side of life, Cadbury Gems will continue to be the leading brand in Cadbury India's

portfolio.




BOURNVITA

The brand has been an enduring symbol of mental and physical health ever since it was launched

in 1948. It is hardly surprising then, that Bournvita enjoys a major presence in the Malt Food

market.

Given its market share of 17%, Cadbury Bournvita reaches across hundreds of cities, towns and

villages through 3,50,000 outlets in India.

It is a universal truth that mothers attach a lot of emotional importance to nourishment while

bringing up their children. However, children always look out for the tastiest option to make

their daily dose of milk more enjoyable.

Cadbury now offers two options to capture this appeal: Cadbury Bournvita, with its popular

chocolate taste, and its latest offering, Cadbury Bournvita 5 Star Magic, leveraging the rich

chocolate and caramel flavour of Cadbury 5 Star Cadbury Bournvita advertising has moved with

the times to reflect the changing needs of the consumers.

During the '70s the communication centered on 'Good upbringing' and Bournvita became an

essential building block for childhood. "Goodness that grows with you" was the campaign idea

that communicated this thought.

In the 80's the focus shifted from 'Upbringing' to 'Intelligence' with the more aggressive

"Brought up right, Bournvita bright" campaign, which was very successful during its time.

In the early '90s all brands in the category provided purely physical benefits like nourishment,

energy and growth. It was at this time that Bournvita decided to raise the bar by promising

physical and mental benefits. This resulted in the famous Tan K i Shakti, Man K i Shakti

Campaign which became an anthem for the brand.

In the new millennium, keeping pace with the evolving mindsets of the new age consumers,

Cadbury Bournvita is about arming consumers with Confidence to take on physical and mental

challenges that nobody else can, resulting in one of the most successful advertising campaigns

which is based on 'Real Achievers who have grown up on Bournvita'.




HALLS

Halls was first launched in India in 1968 & soon established itself as a µtherapeutic¶ candy

competing in the cough lozenge market. Halls has been sold in India as part of the Pfizer &

Warner Lambert networks before it came into the Cadbury fold in 2003 as part of a global

merger with Adams Confectionery.

Halls has had a colourful advertising history in India & was infact, one of the earliest brands to

advertise on television in India. In the 1980¶s, Ad¶s featuring Meenakshi Sheshadri and later,

Vijeta Pandit on its unique µvapour action¶ formula with a classic Halls Jingle were aired which

established the brand firmly in the market. In the 90¶s, Halls advertising adopted a different take

with its µTraffic Jam¶ Ad where Halls restores order to a situation of chaos & the early 2000¶s

saw Halls advertising on the µrefreshment¶ platform. Over the years Halls has been strongly

positioned on the`soothes sore throat ¶ benefit in the consumers mind.

Halls continues to be one of the leading mint brands in India even in the changed competitive

context.

BUBBALOO

Cadbury India has expanded its confectionary portfolio in 2007 by foraying into the Bubble gum

category with the launch of Bubbaloo Bubblegum- a successful bubblegum brand from its

international portfolio.

Bubbaloo is an innovative soft bubblegum with a centre filled liquid. It is filled with a high level

of a great tasting fruit flavoured liquid that floods your mouth instantly. Bubaloo is currently

available in two yummy flavors- Strawberry and Mixed Fruit.

The communication focuses on the "fun filled liquid centre" of Bubbaloo and is anchored by

³Bubbathe cat´, the international mascot for the brand Bubbaloo.

BRAND OVER A PERIOD TIME

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