Scope of the ProjectIntroductionCadbury India Ltd. Is a part of Kraft Foods. Cadbury India operates in five categories – Chocolate confectionery, Beverages, Biscuits, Gum and Candy. In the Chocolate Confectionery business, Cadbury has maintained its undisputed leadership over the years. Some of the key brands are Cadbury Dairy Milk, Bournvita, 5 Star, Perk, Bournville, Celebrations, Gems, Halls, Éclairs, Bubbaloo, Tang and Oreo. Our core purpose "make today delicious" captures the spirit of what we are trying to achieve as a business.

In India, Cadbury began its operations in 1948 by importing chocolates. After over 60 years of existence, it today has six company-owned manufacturing 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 the chocolate category and our brand Cadbury Dairy Milk (CDM) is considered the "gold standard" for chocolates in India. The pure taste of CDM defines the chocolate taste for the Indian consumer.

In the Milk Food drinks segment our main product is Bournvita - the leading Malted Food Drink (MFD) in the country. Similarly in the medicated candy category Halls is the undisputed leader. We recently entered the biscuits category with the launch of the Worlds No 1 biscuit brand Oreo.

Since 1965 Cadbury has also pioneered the development of cocoa cultivation in India. For over two decades, we have worked with the Kerala Agricultural University to undertake cocoa research and released clones, hybrids that improve the cocoa yield. Our Cocoa team visits farmers and advises them on the cultivation aspects from planting to harvesting. We also conduct farmer meetings & seminars to educate them on Cocoa cultivation aspects. Our efforts have increased cocoa productivity and touched the lives of thousands of farmers. Hardly surprising then that the Cocoa tree is called the Cadbury tree! 

Products

CADBURY COLLABORATE AND WORK AS TEAMS TO CONVERT

PRODUCTS INTO BRANDS

Cadbury’s Dairy Milk(Cdm):

Cadbury Dairy Milk chocolate has been giving moments of pleasure since the first bar was sold back in 1905. Today it’s loved by millions of people in more than 30 countries. And everywhere it’s enjoyed, there’s always a glass and a half of fresh, natural milk in each half pound of chocolate.

Cadbury Dairy Milk encapsulates an enormous breath of emotions, from shared values such as family togetherness, to the personal values of individual enjoyment. It stands for goodness. A moment of pure magic!

Cadbury Dairy Milk (CDM) entered the Indian market in 1948, and since then for consumers across India, the word Cadbury has become synonymous with chocolate. CDM remains at the top of the Indian chocolate market not only because of its most delicious, best tasting chocolate but also because of its memorable communication. 

Varieties of Cadbury Dairy Milk chocolate include:

Cadbury Dairy Milk Cadbury Dairy Milk Fruit & Nut Cadbury Dairy Milk Crackle Cadbury Dairy Milk Caramel Cadbury Dairy Milk Silk

Bournville:Cadbury’s Bournville is premium chocolate brand aimed for high value consumption. Various variants available are Almond, Rum, Cashew & Orange.

Eclairs:Cadbury's Éclairs was launched in 1972, at the then princely sum of 0.25p and was an instant hit. It continues to be one of the biggest brands in the Cadbury portfolio and offers the lowest price point at which consumers can experience the real taste of chocolate. But as compared to other companies the price are very high because of lack of competition.

5-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

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.

CELEBRATIONSCadbury 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 Bites

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

Cadbury Bytes is positioned as the 'only sweet snack' in the world of salty snacks. The proposition we have arrived at is "Snacking ka meetha funda", where we take a pot-shot at other snacks, by saying `Har snack namkeen 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.

Bournvita

Cadbury was incorporated in India on July 19th, 1948 as a private limited company under the name of Cadbury-Fry (India). Cadbury Bournvita was launched during the same year.

It is among the oldest brands in the Malt Based Food / Malt Food category with a rich heritage and has always been known to provide the best nutrition to aid growth and all round development.

Throughout it's history, Cadbury Bournvita has continuously re-invented itself in terms of product, packaging, promotion & distribution. The Cadbury lineage and rich brand heritage has helped the brand maintain its leadership position and image over the last 50 years.

HALLSHalls accounts for 50% of international cough drop sales and is the leading sugar confectionery brand in the world. In 1930’s, the Hall brothers invented its Mentho-Lyptus formula, using a combination of menthol and eucalyptus, and began producing cough drops. The cough drops were introduced into the US during the mid-1950s. Warner-Lambert recognised the potential of the product and acquired Halls in 1964. In 1971, Warner Lambert began selling Halls under the Adams family, and the first national television campaign was aired in the US & the results were a resounding success.

BubbalooCadbury 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 “Bubba- the cat”, the international mascot for the brand Bubbaloo.

OreoOreo, milk’s favorite cookie, was first introduced in 1912, and now this creme-filled sandwich cookie is a favorite of consumers around the globe.  Today, Oreo is available in many flavors and varieties, such as chocolate covered, wafers, pie crusts and soft snack cakes.

TangTang, available in more than 30 countries, is the leading brand in our powdered beverage portfolio. This fresh, fruit-flavored drink is available in a variety of flavors -- based on local consumers’ preferences -- and is fortified with minerals and vitamins. It is available both as a powdered beverage and in ready-to-drink bottles.

3.PlaceDistribution Equity:It takes much more time and effort to build, but once built, distribution equity is hard 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 should know how to sell your products. The cardinal task before the Indian market in 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 in India? With technology and competitive pressure slash in it is becoming increasing difficult for marketers to retain a unique product differentiation for long period. In a product and price parity situation, the brand that sells more is the one that reaches the highest number of customers. India – 1.32 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 to improve 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 heat affects 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.

Promotion 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 customer memory, communication must first ensure exposure, grab his attention evoke his comprehension, grab his 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 addresses 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, unselfish conscious, pleasure – seeking child within him – and graft these feeling onto the Ad campaign like “Kya Swad Hai Zindagi Mein” . this redefined the way Indians looked at Cadbury Chocolates. In March 2002, Cadbury launched its next advertisement campaign for its flagship chocolate brand, Cadbury's Dairy Milk (CDM). The campaign featured a television (TV) commercial that was significantly different from the company's earlier commercials for the brand. It featured Cyrus Broacha interviewing college students and asking why they liked to eat CDM. This was followed by college students 'singing' their excuses for eating CDM. Just as the commercial seems all set to end with the students and Cyrus singing the famous CDM theme, 'Khane Walon Ko Khane Ka Bahaana Chaahiye' (those who want to eat, will find excuses), a student comes up and questions

Cyrus, The advertisement aimed at conveying the idea that no specific occasion is required for consuming CDM.This was a significant departure from CIL's strategy of appealing to adults in India, who sought a rational justification for indulging in chocolate consumption.

Cadbury roped in Preity Zinta for its Perk brand. Preity Zinta’s angelic dimples laid the foundation for what would become the Indian teenager’s favorite snack. . “Thodi Si Pet Pooja – Kabhi Bhi Kahin Bhi” for Perk have been sure shot winner with the audience. After this campaign Perk’s sale surged Cadbury’s advertising has, over the past few years, aptly reflected India’s passion for chocolates.

In another ad Cadbury tries to associate Celebrations with reliving old memories. Looking wistfully at a photograph, Mr. Bachchan thinks, he recollects the photo-shoot when he had thrown the cap off his friend's head. More recently, 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. Ithas been adopted by consumers and today is used extensively to express joy in a moment of achievement .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 service and allowed students to check their exam results using their mobile service and encouraged those who passed their examinations to celebrate withCadbury Dairy MilkCadbury being a premium brand in chocolates got a negative impact with there ad campaign “Pappu pass ho gya”.

Cadbury Shots launched temptations with the slogan “Do rupe Me 2 Ladoo” 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. .

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.Even 5-Star Ad campaign Ramesh- Suresh captures well with essence of getting lost in a different world with every bite of chocolate.

Ad spend in 2010 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. it had also entered into various marketing relationship with other portals, specially targeted during festivals and events such as Valentines day , birthdays 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 market.

PositioningIn 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 customer value.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’ advertising. Cadbury decided to sell it to teenagers with the ‘Smart Very Smart’ campaign. But 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 of 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

Strengths• Large teeming population of kids

and teenagers• Well established market• Vast variety of products• Priced according to Indian mind

set• Easy availability of cocoa in

india

Weakness• Large portion of population

suffers from diabetes, cholesterol disorders etc

• Dental problems associated with consumption of chocolates.

Opportunities• Innovative uncaptured chocolate

market in India – ( such as sugar free chocolate sector)

• Large number of occasion celebrations and festivals in which chocolates are used as a medium to convey happiness

• Increasing acceptance of Globalisation and better relationship with foreign companies.

 

Threats• Competition- cut throat

competition from Nestle, Amul and international chocolate brands

• Negative publicity and contrivances

• Negative publicity and controversies

• New entrance and individual players ( rise in sale of homemade chocolates)

• Preference and availability of other substitutes ( sweets and deserts)

Cadbury believes in innovation. Innovation is a virtue of marketing strategy. Its marketing strategy is such that it builds a brand image not only through advertisements alone but through performance. The strategies are as follows:-

1. Cadbury uses a variety of advertisements with different genres and themes to attract different age groups. Eg – Animated ads, Melodious jingles etc.2. Cadbury associates itself with emotions and sentiments of people through relationships of friendship and brotherhood.3. Sponsorship- Bournvita kid contest, Bournvita confidence academy, kya aap panchvi pass se tez hain4. In order to capture the market particularly the youth segment the strategy adopted is to promote SPORTS by encouraging events such as Karate (whiz kid championship)In 1980 cadbury bournvita was the official health drink for the Indian team at the Moscow Olympics5. Cadbury has not only restricted its market to child segment but through its innovativeness has captured every segment of the society6. Innovation in product range has been a major advancement by Cadbury in retaining its market share. Examples of marketing innovation by Cadbury – *Perk’s new range of ulta perk *5 star’s new range of 5 star crunchy *Gems new range of fruity gems7. Print & poster campaigns8. Attractive packaging has been a successful way of attracting customers to buy its products over other chocolates9. A huge atr value is associated with Cadbury which in turn increases the acceptability in the market. it has roped in bollywood legend Amitabh Bachan and the ravishing Preity Zinta to endorse its products diary milk and perk respectively.10.Extremely catchy and well recognized tag lines and punch lines create strong brand value and awareness for Cadbury. The lines “Pappu pass ho gaya” , “Kuch metha ho jaye” gives a distinct image of Cadbury.

11.Cadbury caters to that segment of the society which cannot afford large sums of money. The marketing strategies adopted here would be introduction of economy packs of all its products and advertising the same.12.The most important marketing policy being, implemented during the festive season. The consumptions of sweets is at its zenith during the festive season. India being a country of rich culture and diversified religions has a hand full of festivels. Cadbury makes most out of this season by introducing gift boxes thus spreading joy.

Marketing Objectives:• Double its turnover which stood at Rs.1, 058 crore in 2006 by 2010.

This calls for a growth rate of over 20 percent annually and will be done by setting up new capacity, and increasing volumes.

• Get more people to eat more chocolate, which calls for making it more affordable and being more innovative

• Could get into new product categories like gums where the global portfolio is impressive

• Aiming for a larger footprint in the confectionery space.• To be stronger in health drinks• Can bring Waffers (chips) to keep its pace with the market.

Like most players with near-monopoly shares, Cadbury runs the risk of losing share to new players like Hershey’s, ITC (with brands like Minto and Candyman) as well as to premium imported chocolates. But that may not be much of a worry if Cadburysucceeds in growing the market. They could, for instance, hold a 50 per cent share but of a much larger pie.

Confectionary Market in India

ANALYSIS

FINDINGS• Synonym for the word chocolates.• Cadbury dairy milk (CDM) is flagship brand • Aiming to replace traditional gifting options like Mithais and dry-fruits• All occasion item & targeted towards whole family• Medium size is preferred. Small size packs targeted for rural market• Brand loyalty towards Cadbury is very high• Brand name, quality & flavor are most important factors

RECOMMENDATIONS• Cadbury should bring out new products for health conscious people• It should continue to promote itself as substitute to mithai• Choco-biscuits should be introduced

Market Share: Chocolate

Cadbury (70%)

Nestle (14%)

Amul (5%)

Others (1%)

Indian confectionary industry: 1) Chocolates2) Hard boiled candies3) Éclairs and toffees4) Chewing gums5) Lollipops6) Bubble gums7) Mints and lozenges

Total confectionary mkt: Rs.41 bnTotal Vol. turnover : 2,23,500 tpaConsumption: Urban: 73% &

Rural: 27%

• Should use Indian ads and avoid global ads in India• Should consider attractive display or its own ‘Chocolate boutique’ (retail store).• Special chocolates for Christmas should be introduced e.g. rum, champagne

flavored• New flavors like strawberry,orange,vanilla etc.

Conclusion• There is an immense scope for chocolate industry in India • Indian chocolate industry is unique mix with extreme consumption patterns,

attitudes, beliefs, income level and spending• Understanding consumer preferences and demands is the key to growth• Pricing, quality , flavors and pack size are some of the important factors• Economical distribution using proper supply chain management is necessity• Brand loyalty should be maintained

1. Worm turns for Cadburynews Mohini Bhatnagar 28 November 2003

Hyderabad: The worms in the chocolate bars controversy has hit Cadbury India where it hurts most and that is in sales. The company today faces tough times ahead as the business environment for its chocolates becomes increasingly negative with rising raw material prices and low consumer sentiments, post the worms controversy in October this year