Dairy Milk Chocolate is Loved by People of All Ages

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Dairy Milk Chocolate is loved by people of all ages. It is a brand of chocolate bar made by Cadbury. Dairy Milk Chocolate in India is endorsed by the Shahenshah of Bollywood, Amitabh Bachchan. The Cadbury India Limited chose Amitabh Bachchan as their brand ambassador in order to fulfill their objective. Their objective is to increase chocolate consumption across all ages of consumers. None but Amitabh can do this better as he has a universal appeal that extends to everyone from 6 years to 60 years just as our chocolates do. Again the love, trust and timelessness that both Amitabh and Cadbury shares with the people across India has made the partnership ideal. According to the Managing Director of Cadbury India Limited, Mr. Bharat Puri, Bachchan will play a key role in brand and product communication on television, print and outdoor media. The Dairy Milk Chocolate was launched by Cadbury in the year 1905 at Bournville, United Kingdom. As soon as it came to the market it became popular both in the United Kingdom and around the world. In India its journey began in the year 1948. There are a number of varieties of Dairy Milk Chocolate. Names of some popular varieties are Cadbury Dairy Milk Fruit & Nut, Roast Almond, Crackle, Milk with Crunchie Bits, Cadbury Dairy Wowie and Cadbury Dairy 2 in 1. 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. In United Kingdom and Republic of Ireland the favorites are Dairy Milk with Creme Egg, Dairy Milk Melts Velvety Milk and Dairy Milk Melts Heavenly Praline. There are different varieties of Dairy Milk Chocolate in Australia and New Zealand. Some of the popular varieties are dairy Milk Hazelnut, Dairy Milk Coconut Rough and Dairy Milk Peppermint. Dairy Milk has always tried to keep a strong association with milk. Hence the popular slogan "a glass and a half of full cream milk in every half pound". Even in the advertisements of this chocolate you can see a glass of milk pouring out and forming the bar. The year 2006 saw fifteen varieties of Dairy Milk produced in the UK, the newest of which is Double Chocolate. In 2007 Cadbury launched a new advertising campaign named Gorilla. This campaign was released from a new in-house production company called "Glass and a Half Full Productions". At present most of the Dairy Milk Chocolates are manufactured in Poland and France. This chocolate from Cadbury caters to the urge for 'something sweet' after meals. With the finding of worms in its chocolate bar by the state Food and Drugs Administration, Cadbury India is working towards strengthening the packing of the Cadbury Dairy Milk range. Over the next few weeks Cadbury will work towards introducing either a heat-sealed or a flow-pack packaging that offers a high level of resistance to infestation from improper storage. Meanwhile, Cadbury India has announced a three-step strategic programme involving the distribution chain and retail channels so as to ensure that the product reaching the consumer is of high quality. Called Project Vishwas, the programme aims at building awareness among retailers about storage requirements for Cadbury products, assistance in Also Read Cadbury's loss is Amul's gain Worm queers Cadbury's pitch Cadbury faces prosecution Cadbury's 2nd plant under lens More chocolates with worms!

Transcript of Dairy Milk Chocolate is Loved by People of All Ages

Page 1: Dairy Milk Chocolate is Loved by People of All Ages

Dairy Milk Chocolate is loved by people of all ages. It is a brand of chocolate bar made by Cadbury. Dairy Milk Chocolate in India is endorsed by the Shahenshah of Bollywood, Amitabh Bachchan.

The Cadbury India Limited chose Amitabh Bachchan as their brand ambassador in order to fulfill their objective. Their objective is to increase chocolate consumption across all ages of consumers. None but Amitabh can do this better as he has a universal appeal that extends to everyone from 6 years to 60 years just as our chocolates do. Again the love, trust and timelessness that both Amitabh and Cadbury shares with the people across India has made the partnership ideal.

According to the Managing Director of Cadbury India Limited, Mr. Bharat Puri, Bachchan will play a key role in brand and product communication on television, print and outdoor media. The Dairy Milk Chocolate was launched by Cadbury in the year 1905 at Bournville, United Kingdom. As soon as it came to the market it became popular both in the United Kingdom and around the world. In India its journey began in the year 1948.

There are a number of varieties of Dairy Milk Chocolate. Names of some popular varieties are Cadbury Dairy Milk Fruit & Nut, Roast Almond, Crackle, Milk with

Crunchie Bits, Cadbury Dairy Wowie and Cadbury Dairy 2 in 1. 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.

In United Kingdom and Republic of Ireland the favorites are Dairy Milk with Creme Egg, Dairy Milk Melts Velvety Milk and Dairy Milk Melts Heavenly Praline. There

are different varieties of Dairy Milk Chocolate in Australia and New Zealand. Some of the popular varieties are dairy Milk Hazelnut, Dairy Milk Coconut Rough and

Dairy Milk Peppermint.

Dairy Milk has always tried to keep a strong association with milk. Hence the popular slogan "a glass and a half of full cream milk in every half pound". Even in the

advertisements of this chocolate you can see a glass of milk pouring out and forming the bar.

The year 2006 saw fifteen varieties of Dairy Milk produced in the UK, the newest of which is Double Chocolate. In 2007 Cadbury launched a new advertising

campaign named Gorilla. This campaign was released from a new in-house production company called "Glass and a Half Full Productions".

At present most of the Dairy Milk Chocolates are manufactured in Poland and France. This chocolate from Cadbury caters to the urge for 'something sweet' after

meals. With the finding of worms in its chocolate bar by the state Food and Drugs Administration, Cadbury India is working towards strengthening the

packing of the Cadbury Dairy Milk range.

Over the next few weeks Cadbury will work towards introducing either a heat-sealed or a flow-pack

packaging that offers a high level of resistance to infestation from improper storage.

Meanwhile, Cadbury India has announced a three-step strategic programme involving the distribution

chain and retail channels so as to ensure that the product reaching the consumer is of high quality.

Called Project Vishwas, the programme aims at building awareness among retailers about storage

requirements for Cadbury products, assistance in improving storage conditions at the retail end and

strengthening packaging of the Cadbury Dairy Milk range. This will be implemented immediately in

Maharashtra [ Images ] and will be extended nationwide thereafter.

Bharat Puri, managing director, Cadbury India, said, " We take seriously our responsibility to give our

consumers a product that adheres to high quality standards. The three-step programme is a result of our discussions with consumers, retail partners

and the Food and Drugs Administration in Maharashtra. We are confident that this will improve the consumers trust in our products."

Also, the company will reduce the bulk packaging from 60 bars to 22 bars. Each bulk pack will be shrink-wrapped. This is expected to minimise the sale

of loose packs to the retail trade.

Also Read

Cadbury's loss is Amul's gain

Worm queers Cadbury's pitch

Cadbury faces prosecution

Cadbury's 2nd plant under lens

More chocolates with worms!

Page 2: Dairy Milk Chocolate is Loved by People of All Ages

Over the next two weeks, a team of trained quality control managers along with over 300 sales people will complete a thorough check of over 50,000

outlets across Maharashtra that stock and sell Cadbury products.

The teams will conduct checks on storage facilities and Cadbury-supplied chocolate dispensers and talk to owners and educate them about the

appropriate handling and storage of chocolates.

As a precautionary measure, they will also replace questionable stocks immediately, reducing significantly the chances of damaged products reaching

the consumer.

Cadbury India is a fully owned subsidy of Kraft Foods Inc. The combination of Kraft Foods and

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Cadbury creates a global powerhouse in snacks, confectionery and quick meals. With annual revenues of approximately $50 billion, the combined company is the world's secondlargest food company, making delicious products for billions of consumers in more than 160countries. We employ approximately 140,000 people and have operations in more than 70countries.In India, Cadbury began its operations in 1948 by importing chocolates. After 60 years ofexistence, it today has five company-owned manufacturing facilities at Thane, Induri (Pune) andMalanpur (Gwalior), Bangalore and Baddi (Himachal Pradesh) and 4 sales offices (New Delhi,Mumbai, Kolkota and Chennai). The corporate office is in Mumbai.Our core purpose "make today delicious" captures the spirit of what we are trying to achieve as a business. We make delicious foods you can feel good about. Whether watching your weight or preparing to celebrate, grabbing a quick bite or sitting down to family night, we pour our hearts into creating foods that are wholesome and delicious. Currently, Cadbury India operates in four categories viz. Chocolate Confectionery, Milk FoodDrinks, Candy and Gum category. In the Chocolate Confectionery business, Cadbury hasmaintained its undisputed leadership over the years. Some of the key brands in India areCadbury Dairy Milk, 5 Star, Perk, Éclairs and Celebrations.Cadbury enjoys a value market share of over 70% - the highest Cadbury brand share in theworld! Our billion-dollar brand Cadbury Dairy Milk is considered the "gold standard" forchocolates 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 gums category with the launch of our worldwide dominant bubble gum brand Bubbaloo. Bubbaloo is sold in 25 countries worldwide. Since 1965 Cadbury has also pioneered the development of cocoa cultivation in India. For over

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two decades, we have worked with the Kerala Agriculture University to undertake cocoaresearch and released clones, hybrids that improve the cocoa yield. Our Cocoa team visitsfarmers and advise them on the cultivation aspects from planting to harvesting. We also

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conductfarmers meetings & seminars to educate them on Cocoa cultivation aspects. Our efforts haveincreased cocoa productivity and touched the lives of thousands of farmers. Hardly surprisingthen that the Cocoa tree is called the Cadbury tree!Today, as a combined company with an unmatched portfolio in confectionery, snacking andquick meals, we are poised in our leap towards quantum growth. We are the world's No.1Confectionery Company. And we will continue to “make today delicious”!Describe package: 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 theclassic taste of Cadbury Dairy Milk with a variety of ingredients andare very popular amongst teens & adults.Chocolate lovers for a quarter of a century have indulged their taste budswith a Cadbury 5 Star. A leading knight in the Cadbury portfolio and thesecond largest after Cadbury Dairy Milk with a market share of 14%,Cadbury 5 Star moves from strength to strength every year by increasingits user base.Launched in 1969 as a bar of chocolate that was hard outside withsoft caramel yoghurt inside, Cadbury 5 Star has re-invented itselfover the years to keep satisfying the consumers taste for a high quality & differentchocolate 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.

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A pretty teenager; a long line, and hunger! Rings a bell? That was how Cadbury launched itsnew offering; Cadbury Perk in 1996. With its light chocolate and wafer construct, Cadbury Perktargeted the casual snacking space that was dominated primarily by chips & wafers. With acatchy jingle and tongue in cheek advertising, this 'anytime, anywhere' snack zoomed right intothe hearts of teenagers.Cadbury Celebrations was aimed at replacing traditional gifting options like Mithai and dry- fruits during festive seasons.

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Cadbury Celebrations is available in several assortments: An assortment of chocolateslike 5 Star, Perk, Gems, Dairy Milk and Nutties and rich dry fruits enrobed in Cadburydairy milk chocolate in 5 variants, Almond magic, raisin magic, cashew magic, nutbutterscotch and caramels.The super premium Celebrations Rich Dry Fruit Collection which is a festive offering isan exotic range of chocolate covered dry fruits and nuts in various flavours and thepremium 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. Thecommunication 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 somethingsweet.

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promotion, which is where a product is advertised through consumer media such as television, magazines, newspapers and radio. CONCLUSIONS. The case study has revealed the fact that Cadbury had embarked on a strategy which involvesincreased consumption of its products through enhanced reach, affordability and visibility, whichit feels, can be attained by creating new markets, widening the depth of its distribution networkand working towards a comprehensive portfolio with brands across all price segments. ThatCadbury I the most upcoming brand of chocolates in a market like india.Strengths •

Cadbury is the largest global confectionery supplier, with 9.9% of global market share. •

High financial strength (Sales turnover 1997, £7971.4 million and 9.4%)[1] •

Strong manufacturing competence, established brand name and leader in innovation. •

Advantage that it is totally focused on chocolate, candy, chewing gum, unique understanding of consumer in these segments. •

Successfully grown through its acquisition strategy. Recent acquisitions,including Adams, 2003, enabled it to expand into important markets like the USmarket.Weaknesses •

The company is dependent on the confectionery and beverage market,whereas other competitors e.g. Nestle[2] have a more diverse product portfolio,where profits can be used to invest in other areas of the business and R&D.•

Other competitors have greater international experience - Cadbury hastraditionally been strong in Europe. New to the US, possible lack ofunderstanding of the new emerging markets compared to competitors[3].Threats •

Worldwide - there is an increasingly demanding cost environment,particularly for energy, transport, packaging and sugar. Global supply chain inlow cost locations[4].•

Competitive pressures from other branded suppliers (national and global). Aggressive price and promotion activity by competitors - possible price wars in developed markets.

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Social changes - Rising obesity and consumers obsession with calories counting. Nutrition and healthier lifestyles affecting demand for core Cadbury products.[5] Opportunities •

New markets. Significant opportunities exist to expand into the emergingmarkets of China, Russia, India, where populations are growing, consumerwealth is increasing and demand for confectionery products is increasing.•

The confectionery market is characterized by a high degree of merger and acquisition activity in recent years. Opportunities exist to increase share through targeted acquisitions[6]. •

Key to survival within the FMCG market is increasing efficiency andreducing costs. Cadbury Fuel for Growth[7] and cost efficiency programmes

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seek to bring cost savings by: 1) Moving production to low cost countries,where raw materials and labour is cheaper ii) reduce internal costs - supplychain efficiency, global sourcing and procurement, and wise investment inR&D.•

Innovation is key driver. To respond to changes in consumer tastes andpreferences - healthier snacks with lower calories need to be developed. R&Dand product launches have led to sugar-free & center filled chewing gumvarieties and Cadbury premium indulgence treat. Low-fat, organic and naturalconfectionery demand appears strong.RECOMMENDATIONS Cadbury India's main source of revenue is its 70% bite of the 23,000 tonnes Indianchocolate market. It is also present in the malted food market (Bournvita enjoys a 24percent share of the 20,000 tonnes brown drinks market). Of late, the company hasventured into the 120,000 tonnes sugar confectionery market ('Googly') and has gainedabout 5% market share there. The revenue break up of its different business segmentsis as follows:Despite the fact that Indians have strong affinity for sweets, the size of domestic confectionery market is small on account of traditional consumer tastes and habits. The Chocolate market in

India is a niche market penetrated largely in urban areas and per capita consumption is low ascompared to those in developed countries of the West. But future prospects of the chocolatecategory looks good as the company plans to move into the arena of snack foods, as it hasdone in the Western markets.The market for Malted food drinks is large and is characterized by a few large players.The market can be broadly segmented into white malted food drinks which dominates inthe Southern and the Eastern parts of the country and Brown Malted food drinks whichdominate in the North and the West. Large brands like Bournvita and Horlicks dominatein Malted food drinks sector and the growth has been steady in the last five years.The future mission of Cadbury India is 'A Cadbury in Every Pocket'. The company's business strategy hinges on following for driving its future growth: •

Increase the width of chocolate consumption, through low price point packs and distribution focus. •

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Increase depth of consumption, targeting regular chocolate consumers through generating impulse and a dominant presence at Point of Sale. •

Maintain image leadership through a superior marketing mix. •

Be a significant player in the gifting segment, through occasion linked gift packs. •

Build critical mass in the sugar business by introducing value-added sugar confectionery products. Future revenue growth will be through increasingly higher volumes rather than priceincreases. The management believes that price increase can only be a short termobjective. It is volumes, which are very important to achieve the long-term goal ofhaving a wide consumer base.The company sees its growth in future in market expansion and new product launches.Increased reach, new launches, higher marketing spend and intensive promotions - themix, Cadbury is looking at to fuel its future growth. The company is also looking foracquisition of brands, and its huge cash reserves might be utilized for the purpose.

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