Cadbury bournvita

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Cadbury Bournvita and its Marketing Strategies Bharath Kumar M-12132 Korrapati Naveen - 12144 Priyanka Vyas -12155 Siddharth Shetty - 12168 Yughandara Ramesh – 12180 Achala Simha - 12183

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Transcript of Cadbury bournvita

  • 1. Cadbury Bournvita and itsMarketing StrategiesBharath Kumar M-12132Korrapati Naveen - 12144Priyanka Vyas -12155Siddharth Shetty - 12168Yughandara Ramesh 12180Achala Simha - 12183

2. COMPANY PROFILECADBURY INDIA: Cadbury India Ltd. is a part of Kraft Foods. Cadbury India operates in five categories Chocolate confectionery, Beverages,Biscuits, Gum and Candy. In the Chocolate business, Cadbury has maintained its undisputed leadership overthe years. Some of the key brands are Cadbury Dairy Milk, 5 Star, Perk, Bournville, Celebrations,Gems. In the cookies business it includes the famous brand Oreo. In the gums segment it has the brand: Bubbaloo In the candy segment it has the brand: Eclairs. 3. In India, Cadbury began its operations in 1948 by importing chocolates. After over 60 years of existence, it today has six company-ownedmanufacturing facilities at Thane, Induri (Pune) and Malanpur (Gwalior),Bangalore and Baddi (Himachal Pradesh) Hyderabad and 4 sales offices(New Delhi, Mumbai, Kolkata and Chennai). The corporate office is in Mumbai. Cadbury India enjoys a value market share of over 70 percent in thechocolate category. In the Milk Food drinks segment our main product is Bournvita - the leadingMalted Food Drink (MFD) in the country. Similarly in the medicated candy category Halls is the undisputed leader.Cont.. 4. Awards in India Asian Marketing Effectiveness Awards 2008 forBournvita Folk Cadbury India ranked 7th Great Place to Work inIndia No. 1 FMCG Company. ABBY Award. Cadbury won the Effies award 2006 5. BOURNVITA Bournvita was launched in 1948 and is one of the oldest brandsin the malted beverages segment. This is a brand that has sustained over time and competition. The brand has sustained because of Cadburys invested in thebrand and also ensured that the brand changed in tune with thetimes. When the brand was introduced in the market, it tried to solve aperennial problem that mothers face: a need for a healthy foodwhich is tasty. Bournvita offered that unique combination of health and taste. 6. India- The Growing Market for MaltedFood Drinks Strong economic growth in markets is seeing middle classconsumers trading up to added-value hot drinks. The 82,000 tone, malted food drink segment can be dividedInto White Beverages and Brown Beverages. White Beverages account for 65% of the sales of the totalmarket. Brown Beverages account for the balance 35% of the market. Cadburys Bournvita dominates this segment. Other players in the segment are Boost, Milo (Nestle) and 7. India has the worlds largest malt-based drinks market,accounts for 22% of worlds retail volume sales. In India, malt-based drinks are traditionally consumed asmilk substitutes and are marketed as a nutritious drink. Sales growth has been assisted in recent years by improvedretail and distribution networks and demographic factors,namely a large consumer base in the childrens and youthmarket. India also recorded the highest growth (53% in US$ terms) ofany market between 1998 and 2003. Primarily as a result of consumers trading up to value-addedproducts.Cont.. 8. Competitive analysis: The Indian malt based health beverages market was estimated at Rs 2,000Crore for the year 2011 with an average annual growth rate of 20-25percent. The Indian malted health beverages segment has seen fierce competitionamongst its market participants in the recent past. The market is segmented in two distinct tiers of competition with leadingmultinationals such as GlaxoSmithKline Consumer Health Care Ltd (GSKCH)and Cadbury (now a fully owned subsidy of Kraft Foods Inc.) Tier 2 comprises medium-sized players such as Nestle, Heinz, Wockhardt(now a part of Abbott Nutrition) etc. Apart from these multinationals, a few domestic FMCG players are presentas well, AMUL and Hindustan Unilever Ltd (HUL) being the significant ones. 9. The following figure illustrates the competitivestructure in the Indian malted health beverage market: 10. 598.31.41.23.31311.62.2Market shareHorlicksComplanVivaMaltovaMiloBournvitaBoostOthersMARKET SHARE OF BOURNVITA:- 11. In brown beverages market Bournvita has a share ofabout 43%.43%30%12%10%5%ShareBournvitaBoostMaltovaMiloOthers 12. SWOT ANALYSISStrengths Very strong brand equity in India Backed by the brand Cadbury Big Brand Visibility Largest market share in brown malted drinksWeakness Lack of penetration in rural market in India. Bournvita is considered to be high priced brand when compared to othermalted drinks Bournvita is perceived to be having less nutritional value as compared toits closest competitors. 13. Opportunities Expansion into every part of the country mainly rural part of the country. Bournvita can leverage its product name with brand Cadbury Expansion to white malted drinks Having a wider reach by tapping other media sources Opportunities for line extension, for example: the Nutribar Category.Threats Tough competition from Nestle, Amul, and Horlicks who strives for marketleadership. Large variety of flavors introduced by other brands Frequent repositioning might result in the consumer not getting thedesired message. 14. SEGMENTATION, TARGET AND POSITIONINGDemographic segmentation They mainly concentrated on children aged between 5 and16 years of age who are primary consumers of the flavouredhealth drink. Launched in the year 2008, Bournvita Lil Champs is speciallyformulated with scientifically proven ingredients like DHA &Whey protein, making it ideal for children between theformative years of 2 to 5 yrs. It focused on the Good Upbringing, Goodness that growswith you campaign to promote Bournvita as an essentialhealth drink for children. 15. Behavioral segmentationBenefits Protein 7 grams; Fat 2 grams; Carbohydrate- 84 grams ofwhich sugar is 70.3 gram The major portion of the Bournvita is carbohydrates thateasily breakdown in our bodies to provide energy. Though each health drink is fortifies with important vitaminsand minerals like iron, b vitamins, vitamin a, d and e whichhas various functions in the body is beneficial. 16. Targeting Most of the Cadburys promotional activities are based on the childrenwho influence their parents to buy Bournvita. Bournvita offered that unique combination of health and taste. Thus it targeted the mothers concern about her childs health and tastepreferences.Positioning Bournvita has always positioned itself as childrens drink and has beenpromoting itself that way. During the 70s the brand had positioned itself as a product that helps ingood upbringing. The brand used the tagline Goodness that grows withyou. During 80s there was a change in its focus from Upbringing toIntelligence. 17. In 1990s the brand felt that it should be focusing on theoverall health of the kids thus changed its focus on Body andMind. The brand used an acronym RDA (Recommended DietaryAllowance) to reinforce the health positioning. The brand used a clever Nutritional meter to communicatethe RDA formula: 2 cups of Bournvita for balanced nutrition.Cont.. 18. ANSOFF MODELMarket penetration strategies: Intense promotional activities should be done in schools like distributingfree samples. Encouraging consumers of carbonated soft drinks towards Bournvita. Providing free toys or sports items. Providing increase in the usual packs by certain percentage. Marketing it as a energy boosting drink that could be had at any time.Product development strategies : Bournvita Lil Champs is specially formulated with scientifically proveningredients like DHA & Whey protein, making it ideal for childrenbetween the formative years of 2 to 5 yrs. Bournvita should come in different sizes like family pack and mini packs. As it just comes in two forms, it must bring out new products in healthdrink for women, working middle aged men and aged citizens. 19. It should add features such as dark chocolate and dry fruittoppings flavours for the existing product. Packaged cold Bournvita drink in different flavours in tetrapacks and pet bottles.Diversification: Bournvita can get into biscuits and nutribar categories. 20. ADVERTISING STRATEGY In 1970s the brand was positioned as a product that helps in good upbringing.The brand used the tagline: Goodness that grows with you. During 1980s the brand changed its focus from upbringing to intelligence. Thetagline was changed to: Brought upright; Bournvita bright. In 1990s the brand felt that it should be focusing on the overall health of the kidthus changed its focus on body and mind.Along came the famous tagline:Tan ki Shakti , man ki shakti. In the current millennium the brand has moved to the next level. Bournvita hasidentified confidence as its core brand essence.The brand now uses the tagline: Do you have Bournvita confidence. It launched Cadbury Bournvita Quiz Contest as a quiz contest that began onApril 12, 1972. Sponsored by Cadbury India Bournvita, it is one of Indias mostfamous quiz contests. 21. Marketing mix of Bournvita:-Product: Bournvita was one of the most loved chocolate health drinks in the world before itwas launched in India. In 1947 the Cadbury India Limited launched Cadbury Bournvita. Bourn because its brown in color Vita because it has lots of vitamins. Bournvita acts as a dietary supplement providingnourishment along with good taste. 22. Price:The mother or the housewife gives importance to the nutritional values of the health drinkand gives price secondary importance. She will carefully study the taste and the nutritivevalues the health drink.Bournvita being one of the expensive healths drinks in the market, that is Rs 151 for 500grams, but still due to its good taste and good nutritive values it has captured majority ofthe marketPromotion: Bournvita has always promoted its product according to customers needs. It has attractedchildren by giving free gifts like plastic mugs, chess games, rackets etc. They also come up with schemes like extra Bournvita for same price. The ads have veryclearly promoted this drink for intelligent school kids through organizing the famousBournvita quiz contest between different schools. Bournvita is running two different campaigns for Bournvita: one campaign for the BournvitaFive star Magic and another one featuring Bournvita Confidence Academy. 23. Place: Cadbury has a vast distribution network in India; it is catering Bournvita to itscustomers in this network. Bournvita is found in almost all medicalstores, provision stores, super markets and all retail stores. It has around 2100 distributors and around 4,50,000 retailers. Totalconsumers of Bournvita are around 65 million. It has installed coolers at several outlets to address the issues ofproduct stability. This helps in maintaining quality during summerwhen there is a lot of heat.