CHAPTER 1: INTRODUCTION

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

Foods and 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

second largest food company, making delicious products for billions of consumers in more than

160 countries

The merge in 1969 with Schweppes and the subsequent development of the business had led to

Cadbury Schweppes taking the lead in both, the confectionary and soft drink

market inside UK and becoming a major force in the international market. However this two

brands announced a de-merger in the year 2008 and Cadbury became an Independent company

till its merger with Kraft Foods Inc.

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 one would remember as the story of “The

Real Taste of Life”.

1.1 Confectionery Industry

The confectionery industry in India is approximately divided into:

Chocolates Hard-boiled candies Eclairs & toffees Chewing gums Lollipops Bubble gum Mints and lozenges

The total confectionery market is valued at Rupees 41 billion with a volume turnover of about 223500 tonnes per annum. The category is largely consumed in urban areas with a 73% skew to urban markets and a 27% to rural markets.

Hard boiled candy accounts for 18%, Eclairs and Toffees accounts for 18%, Gums and Mints and lozenges are at par and account for 13%. Digestive Candies and Lollipops account for 2.0% share respectively.

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Overall industry growth is estimated at 23% in the chocolates segment and sugar confectionery segment has declined by 19%.

Cadbury with Dairy Milk, Perk, Gems, 5 Star, Celebrations, Bytes, Dairy Milk Eclairs, Eclairs Crunch, Mr. Pops and Halls brands is a key player in the chocolate, eclairs, lollipops, and mints segments

Milk Beverages

The Milk Beverages industry is valued at Rupees 16.1 billion with an annual turnover of approx 63,000 tonnes. As per Nielsen estimates the industry is growing at 10.1%.

Cadbury is a key player in the segment with Cadbury Bournvita and Cadbury Bournvita 5 Star Magic.

Branding

Brand Name

In 1824, John Cadbury began selling tea, coffee, and drinking chocolate, which he

produced himself, at Bull Street in Birmingham, England. John later moved into the

production of a variety of Cocoas and Drinking Chocolates supplying mainly to the

wealthy due to the high cost of manufacturing at this time. He struck a partnership with

his brother Benjamin. At this time the company was known as 'Cadbury Brothers of

Birmingham'.

Later in 1905, Cadbury's launched its Dairy Milk bar, with a higher proportion of milk

than previous chocolate bars, and it became the company's best selling product by 1913.

Cadbury merged with drinks company Schweppes to form Cadbury Schweppes in 1969.

In March 2007, it was revealed that Cadbury Schweppes was planning to split its

business into two separate entities: one focusing on its main chocolate and confectionery

market, thus the name Cadbury came into being.

1.2 Analyzing the Brand Cadbur y

Cadbury’s winning proposition in India is the classic Cadbury’s Dairy Milk. In an effort to make

chocolate a generic term for ‘something sweet’, CDM has managed to make people eat and

offer chocolate to celebrate the good things in life.

Product: Same product, but experimented with formats to target children and price-

Conscious consumers. Cartoon character shapes to attract kids, mini pack to reach out to

the lower middle class. With the recent launch of new variants under the sub brand Silk,

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CDM has started to go up-market. The company is targeting 15% of Cadbury dairy milk's

sales to come from Silk by December 2011.

Price: With a broad offering in terms of format and price, the brand manages to reach

out to all sections of the population: the range starts from Rs. 5 and goes up to Rs. 90.

Promotion: Constant and effective brand building to increase the brand salience. Broad

palette of execution from real-life situations, to emotional, fun-and festive-centric

communication to teaser and online promotion. Initially it used the biggest Superstar in the

country (Amitabh Bachchan) as their brand ambassador.

Currently, Cadbury is moving away from icons to use real-life characters with highly

innovative story lines - to give the brand more personality and make it easy to relate to.

Placement: Easy availability through all trade channels. CDM is highly mature in terms of

product life cycle, but thanks to constant reinvention and highly innovative communication, the

brand continues to generate consumer engagement.

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CHAPTER 2: MARKETING STRATEGY OF CADBURY

INDIA LTD.

2.1 Television Advertisement Campaigns

In the early 90's, chocolates were seen as 'meant for kids', usually a reward or a bribe for

children. 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 him 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” so Cadbury universalized the product, targeting the parents.

In the Mid 90's the category was re-defined by the very popular `Real Taste of Life' 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

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 appealed to the child in the man and was about

bringing out the child in the adult. 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

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carefree childlike mode - spottiness, impulsive and carefree.

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 impulse. The campaign

succeeded in softening attitude towards chocolate and lifting then out of the realm of kiddies /

special occasions only. It embraced a wide range of emotions all built around the theme that

chocolate means different things to different people at different times, but most importantly

chocolate is Cadbury.

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

fondly remember. However, the one with the "girl dancing on the cricket 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.

'Khanewalon Ko Khane Ka Bahana Chahiye' campaign

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

chocolate consumption amongst the masses, through the 'Khanewalon Ko Khane Ka

Bahana Chahiye' campaign. This campaign built social acceptance for chocolate

consumption amongst adults, by showcasing collective and shared moments.

‘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 was worth noting as it clearly differed from the earlier one in terms of

rectifying the consumer perception about chocolate being an up market impulse - driven

product. The attempt was to change the image, to make chocolate eating a regular habit.

'Kuch Meetha Ho Jaaye' campaign

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

occasions and the phrase "Pappu Pass Ho Gaya" became a 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 service and allowed students to check their exam results

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using their mobile service 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.

Shubh Aarambh

Cadbury Dairy Milk (CDM), the flagship brand of Cadbury India, launched a new campaign,

“Shubh Aarambh”. This campaign is based on the concept of the Indian tradition of having

something sweet before every auspicious occasion, with the belief that it leads to a favorable

outcome. Over the years, CDM has been a special part of every Indian's moments of happiness,

joy and celebration. This year, for the first time ever, CDM urges consumers to also enjoy their

much loved chocolate before embarking on an important task, in anticipation of a successful

outcome.

Cadbury Dairy Milk Silk Campaign

The new Cadbury Dairy Milk Silk campaign takes chocolate indulgence to a new level. It's

about blissfully losing yourself in the smoothness of the chocolate. Normally,

indulgence is peddled in a sinful way but this campaign takes an innocent look at it, which

makes it refreshing.

In India people don't eat chocolate outside their homes because chocolates melt and create a

rather messy affair. But molten chocolate is extremely tasty and molten Silk is something to die

for that was a perfect setting for turning a weakness into strength. The fact is, habits won't

change after a few commercials. Yet, this framework became the perfect platform to extol the

virtues of this fine chocolate within the boundaries set by Cadbury Dairy Milk.

Agencies Involved

Contract, O&M, Madison and Market research agency

Cadbury has got partnerships that are fifteen years old as trust is very important

Cadbury understands that it wants from them honest work, and that they are also

upholders of its brand values. Cadbury wants them to push their brand. As much

knowledge about Cadbury resides in Cadbury house, same resides with advertising,

media and marketing agencies. That cannot happen in a couple of years and hence the

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long contract.

Creative Aspect

If there is a very strong idea that has worked anywhere else in the world, Cadbury adapts it. For

example for Halls and Bubble gum Cadbury has run a commercial that has been a global

success.

However, for brands like Cadbury Dairy Milk local advertising is adopted. Reason is that

evolution of category is at a different stage in India as compared to the UK and Australia.

Their biggest challenge is to make a western product part of Indian cultural milieu. And

hence, advertising is very Indian, not only in its look feel, but also in its messaging.

Bournvita is an Indian brand so all advertising for that has to come from India.

2.2Special Marketing campaigns for Festivals

Diwali

Diwali is the time for people to come together, reaching across relationships and

boundaries. It is an occasion for celebrations, sharing and spreading happiness.

‘Cadbury’s Celebrations’ aims to propagate this very thought through its latest Diwali

Campaign - “Iss Diwali Aap Kise Khush Karengey? Kuch Mithaas ho jaaye”. The

idea behind the campaign is to seed the thought of sharing & spreading happiness to bring a

spark into people’s lives this festive season.

The central thought of the commercial is to make others around you genuinely happy. The

commercial sprinkles many more vignettes, where people of all ages spread joy by gifting a

Cadbury’s Celebrations to those they have mostly taken for granted. The

commercial ends with “ Iss Diwali Aap Kise Khush Karenegey? Cadbury

Celebrations Kyu na kuch Mithaas ho jaaye”.

Raksha Bandhan

Cadbury Celebrations Raksha Bandhan Campaign is shows the bond of love with tinge of

mischief that brother and sisters share. The advertisement shows a family occasion of

Raksha Bandhan with brother gifting his sister with a box of Cadbury Celebration. The

advertisements for Raksha Bandhan have the bond between the a brother & sister as a central

theme which appeals to all.

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New Year’s Campaign

Cadbury Dairy Milk India ran a campaign in 2010 called 'Shubh Aarambh' or 'Have a great

start'. It meant having Cadbury Dairy Milk before venturing out to do something new. In the

same vein, they unleashed the New Year campaign (three short films), and radio campaigns to

bring in 2011. The tone of the films was warm and sweet in compliance with the kind of films

CDM has always done.

2.3 Marketing through Digital Media

Cadbury has had extensive exposure to digital media. As a brand targeting the young at heart, it

requires a presence where the target audience spends quite a lot of time i.e.

online. Cadbury looks at the following target groups - preteens, teens, tweens, young adults,

adults, so on and so forth. It has leveraged the power of social media such as Facebook

enabling interaction and for encouraging conversations between the audience and the brand.

Cadbury had a tie up with several job and shaadi sites - and every time someone found a

partner or job that matched their requirement, a message would come up asking them to

celebrate the happy moment with CD.

The launch of innovative & interactive website www.meethamoments.com wherein one

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can experience the “meetha” thought via sending personalized e-greetings to their friends &

family. It also allows visitors to view the latest commercials, listen to the radio spots from

Cadbury and also find a link onto other internet applications.

Cadbury had also entered into a strategic alliance with Facebook and Orkut to further

promote the core message of the brand. Cadbury’s created a Facebook application that

urges all Facebook members to send an invitation to their near & dear ones for what they

wish to have in Diwali. This innovative marketing tool revolved around the central theme

of the Diwali Celebrations Ad Campaign, ‘Iss Diwali Aap Kise Khush Karengey?’

Named “Diwali Wish”, this application, gave users an opportunity to create a wish-list of the 5

things they crave for the most this Diwali. One can then send it to friends and

persuade them to fulfill these wishes. Friends on reading the wish-list can choose to

fulfill one of the wishes. They can also add the application & send out their wishes, thus

creating multiple opportunities to spread joy & happiness.

Commenting on the launch, Sanjay Purohit, Executive Director - Marketing, Cadbury India Ltd

said, “In the past we have positioned Celebrations as a great product for gifting

to loved ones. Adding to the same thought this year, we have conceptualized a new

thought of gifting Cadbury Celebrations to people who least expect it. We have created a

complete 360 degree campaign to involve & engage the TG by promoting the big thought

of ‘Iss Diwali aap kise khush karengey ’. This integrated communication strategy will be

rolled out to intensify the engagement with the consumers. The mediums of

communication will include television, print, radio, online, and outdoor activities.”

The commercial is the latest in the highly successful ‘Iss Diwali Aap Kise Khush Karengey?”

series of ads conceptualized by Ogilvy & Mather. Cadbury Celebrations has started a

BIRTHDAY CONTEST. For one’s birthday one has to upload solo picture. If one’s

friend/relative's birthday is between those days, upload one’s picture with them on the WALL

Cadbury.

2.4 Social Initiative

Cadbury opted for a campaign focused on a social message rather than product attributes

this festival season because giving happiness to others is a universal thought. Normally,

during Diwali, Cadbury tries to get people to buy more of our gifting chocolates. But this

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year they decided to associate Dairy Milk or gifting chocolates with larger spirit of

Diwali - which happens to be about coming together and celebrating, being selfless and

giving to someone rather than only taking. It had a two-fold objective - passing on the

positive social message, and at the same time associating Cadbury with festival in a much

larger way.

It worked in both small and big towns - it was a universal message that cuts across

segment barriers. Brand communication per se is changing. There is more social

consciousness in the messages this is because brands reflect happenings in the society.

Society is demanding everyone to be socially and culturally responsible. There is greater

positive pressure on brands and marketers to do the right thing, than being only interested

in sales.

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CHAPTER 3: BRANDING & NEW PRODUCT INNOVATIONS

3.1 Innovations by Cadbury

Cadbury has made a lot of innovations in its product offering to sustain and grow its market

share. Innovations is one of the way Cadbury tries to maintain it’s sustainable competitive

advantage. The brand innovations done by Cadbury in the past 5 years show

that Cadbury has done incremental innovations in their already existing brands. To cite a

few

Cadbury Dairy Milk Éclair Crunch

In July 2006, Cadbury introduced New Cadbury Dairy Milk Éclairs Crunch - the delicious hard

and crunchy caramel on the outside with the center filling of Cadbury Dairy Milk. Cadbury

Dairy Milk Éclairs Crunch was positioned as a hard, crunchy Caramel on the outside with the

surprise of Cadbury Dairy Milk at the centre.

Cadbury Dairy Milk Éclairs Crunch is available in retail outlets and is priced at Rs. 1 per Unit

of 4.2 gms. Hence, as they now say in Cadbury - "AB Ek Nahee Do-DO Eclairs".

Bournvita 5 Star Magic

In August 2006, a sparkling new identity was given to the age-old favorite malt food drink

Bournvita, Bournvita 5 Star Magic. For the first time in its history, Cadbury India combined

two of its most powerful brands Bournvita and 5 Star to present a unique caramelized fun taste

to consumers.

This new variant of Bournvita was positioned to become a unique magical treat that

offers the goodness of malt food drink and exciting caramelized taste. Bournvita 5

Star Magic is available in retail outlets and it is priced at Rs. 114 per bottle of 1kg jar.

Bubbaloo The World's Leading Bubble Gum Brand In India

In July 2007, Cadbury India launched "Bubbaloo" its bubblegum power brand in India.

Bubbaloo is sold in 25 countries, and is a dominant bubble gum brand worldwide. With this

launch Cadbury forays into the bubble gums category and strengthens its portfolio within the

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confectionary segment.

Bubbaloo is an innovative centre-filled bubble gum with a burst of liquid flavours. It will be

available in two exciting flavours Strawberry and Mixed Fruit and is priced at Rs. 1 per unit.

Bubbaloo will offer the Indian consumers the fun experience of juice that fills the mouth when

one bites into it.

Bubbaloo will see a multi-media marketing campaign to connect with the target consumers.

The 360 degree marketing communication will be anchored by 'Bubba the cat' the worldwide

mascot for Bubbaloo. Several consumer and trade activities are planned to create a buzz around

the launch.

Ulta Perk

In October, 2007 Cadbury India launched ‘Ulta Perk’, in order to strengthen its portfolio in the

fast-growing wafer- confectionary market.

The chocolaty wafer taste of Perk has been in India for more than a decade. Just when one

thought that a simple wafer confectionary could not innovate itself, Cadbury

India launched ‘Ulta Perk’, an innovative ‘Wafer outside, choco-cream inside’

product to the. ‘Ulta Perk’ was be available across retail stores in key cities and is priced at Rs.

5 only. The product is targeted towards teenagers and youth

Dark chocolate to Cadbury Celebrations Diwali range

Cadbury India launched of a new special dark chocolate edition to its existing

extensive portfolio of Cadbury Celebrations Rich Dry Fruit Collection for Diwali.

The new range hit the market in October 2007 and was be available at premium retail stores

across the country.

The new range features in a selection of specially designed Cadbury Celebrations Rich Dry

Fruit Collection - A gift pack filled with the richness of chocolate & premium of dry fruits. The

two new Cadbury Celebrations dark chocolate variants were made available in panned flavours

like Hazelnut, Cashew & Almond and fine assorted flavours like Mocha Almond, Rum n

Raisin, Black Forest & Cashew Cointreau. The range is priced at Rs. 425/- for the panned

flavours and Rs. 525/- for the fine assorted flavours respectively.

Cadbury Lite

In February, 2008, Cadbury India Limited, launched of a new offering 'CADBURY LITE' to

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satiate the craving for 'Something Meetha'. This special offering from Cadbury was launched so

that people could enjoy the authentic taste of milk chocolate with `No added sugar'. This

chocolate was not launched everywhere but was to limited a few areas CADBURY LITE was

the first 'No added sugar' product in the Cadbury India

Cadbury Dairy Milk Shots

In 2008 Cadbury India has launched a new product called Dairy Milk Shots. The product is not

a bar chocolate but a candy. The ball shaped candy is milk with chocolate cover. Cadbury's

Dairy Milk Shots had been in existence in other parts of the world. The brand is currently

priced at Rs 2 for a pack of two shots.

Cadbury Bournville

In October, 2008 Cadbury India launched CADBURY BOURNVILLE FINE DARK

CHOCOLATE, the first dark chocolate product from the much-loved Cadbury India

basket.

Globally, dark chocolate is the fastest growing segment within the confectionary category. It is

loved by millions of consumers because of the rich taste and intrinsic health and well-being

benefits. The launch of CADBURY BOURNVILLE FINE DARK CHOCOLATE in India was

timely, as it caters to the evolving consumer preferences and serve as a treat for consumers

looking for a moment of sheer indulgence. A natural source of anti-oxidants, CADBURY

BOUNRVILLE FINE DARK CHOCOLATE just makes one feel good about giving in to one’s

chocolate cravings. Dark Chocolate acts as a mood-booster; by boosting serotonin and

endorphin levels that generate the feel-good factor. This more than a perfect bar of dark

chocolate turns the simple act of eating it into a form of art

Cadbury Dairy Milk Silk

In January, 2009,Cadbury India Ltd. the launch of Cadbury Dairy Milk Silk its premium

offering under the Cadbury Dairy Milk brand (CDM). Smoother, creamier and chunkier the

new CDM Silk chocolate has been formulated to provide superior ‘eat’ experience Developed

specially for the Indian consumer, the new CDM Silk provides the most divine ‘Melt in the

Mouth’ feel. CDM Silk is finer than the finest chocolates and comes in a premium,

internationally developed packaging. Attractively priced at Rs. 49 for 69 gms and Rs. 99 for

160 gms bar the new CDM Silk is be available in Milk chocolate, Roast Almond and Fruit &

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Nut variants. CADBURY BOURNVILLE FINE DARK CHOCOLATES is available in four

different variants Rich Cocoa (80g), Almond, Hazelnut and Raisin & Nut (90g each) and will

retail at Rs. 75.

'Perk with Glucose Energy'

In November, 2009, Glucose energy and the taste of Cadbury is an irresistible combination.

Cadbury India brings launched Perk with Glucose Energy to consumers with their latest

offering ‘

A first for India, Cadbury Perk with Glucose Energy is a new innovation that was aimed to

appeal to consumers’ taste buds. Targeted at 14-18 year olds, it is a fun treat which combines

energy giving glucose with great

Gems Surprise.

Taking Fun & Masti one step forward, Kids could enjoy Cadbury Gems - colourful

chocolate buttons - with a Ben10 toy, packed in an attractive ball. To bring this

offering alive, the new commercial features the Pandas in an exciting interface with

the popular Ben10 toys, while they savour their much loved colourful Gems.

In the year 2010 Cadbury India has not launched any new products in India. This

might be due to the takeover by Kraft. Kraft might be looking forward to launch its

own products in the Indian markets. However Cadbury has launch new advertising

campaigns for the products already existing in its portfolio which have become very

popular

3.2 Brand Promotion

Cadbury has done promotion of Brand Cadbury by organizing various competitions where kids

can participate especially for its “Bournvita” Brand.

Bournvita Confidence for All India Junior Badminton Champions

The tournament was organized by the Express Shuttle Club and recognized by the Badminton

Association of India. It featured players from various states in India vying for the top slot in

their respective categories. 1200 players from India represent their state in this tournament.

Bournvita Confidence Academy

In a first of its kind initiative, young prodigies' confidence is being put to a whole new

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challenge on Pogo TV with the launch of an innovative reality show "Bournvita

Confidence Academy". The BIG CHALLENGE in the Bournvita Confidence Academy was

that participants were not rated on the performance of their own skill, but on the skill that they

learned from their peers!

Bournvita Quiz Contest

The Cadbury Bournvita Quiz Contest is an Indian quiz contest that began on April 12,

1972. Sponsored by Cadbury India, it is one of India's most famous quiz contests.

Originally held live in cities across the country, it later became a radio show and then, in June

1992, a television show.

Over the years Cadbury has been appropriating 'Confidence' as the benefit derived from

Bournvita. The contest intends to explore the interesting aspects of 'Confidence' in the young

consumer's life-space.

Brand Placement

Modern trade or retail is big enabler to the category. If you compare traditional vs modern

outlets, display of category is so much better in modern trade. Cadbury has been able to

keep the full range in a better and hygienic manner, which though some traditional

retailers are able to do - many are not, so they keep a limited range. The range being

made available and kept and displayed well means those sales for impulse products go

up.

Lot of work needs to be done with retailers to enable them to grow the category and Cadbury’s

share of the whole category. Cadbury’s have a process called category captaincy, which means

to help the retailer to understand what would help in growing chocolate category business per

square feet in his retail store. It guides the retailers on the best way to display, the best way to

merchandise, best range and the number of SKUs (stock keeping units). So Cadbury works

significantly on point of buy - both in terms of visibility and the planogram.

3 .3 Logo & Packaging

The look of the product is very important for categorys such as chocolates which belong

to the impulse purchase category. Cadbury has changed it logo and packaging over

the years to make it more appealing to the consumer

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In Jan 2004 Cadbury had to announce a change of packaging for its Dairy Milk chocolate bar

following allegations that a batch had been infested with insects.

As of January 2004, the packaging for Cadbury's Dairy Milk bars was completely changed,

creating an impenetrable wrapper which offered a high level of resistance to infestation from

improper storage.

Since January 2010, Cadbury’s much loved flag-ship brand Cadbury Dairy Milk has been

given a brand new through premium packaging. The change into a premium, international

packaging is the first in 7 years for the biggest chocolate brand in India. Pearlfisher is the

design agency responsible for the execution of the pack's new look. The fine purple and gold

packaging is meant to portray the rich and creamy taste of Cadbury chocolate. The new

international pack retains the gold Cadbury logo.

The new international packaging while retaining the color purple, a color that has become

synonymous with Cadbury, creatively works the other graphic elements. The gold

Cadbury Logo embodies the premium and sophisticated eating experience of Dairy Milk,

while the real chocolate chunk on the pack enhances its chocolate appeal. The new Dairy

Milk logo against the all purple backdrop helps reinstate the goodness of milk in Cadbury

Dairy Milk.

The chocolate that has a huge fan base across many countries aims to have a more integrated

look and feel.

Instead of the legendary 2 glasses of milk flowing into the Cadbury logo on top of the

rather digitized slick image of a piece of chocolate on the old bar, the glasses now empty into

the letter 'I' of Milk, therefore seeming as though it is the milk that 'whitens' up the

Dairy Milk logo.

The chocolate piece on the new bar is now lower and seems to reflect a more real image of the

bar, where you can still see the grain of the bar on the sides like it has just been

broken off.

Other little things like the 'milk chocolate' font has been changed to a more streamlined

one on the new bar and but is also lost on the bar with its gold color, which has also

affected the 'DI%' logo which has gone from white on purple to purple on purple

Brand Strategy

As a company Cadbury aims to be prime movers of driving chocolate category growth. With a

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70% market share, they can only grow the category hence Cadbury constantly looks at getting

new users and non-users to start consuming chocolate. And when you are on it, the thinking

evolves, technology evolves, and brand evolves. Every brand has an opportunity to reach its full

potential.

Cadbury follows a power brand strategy that is very tightly focused. Cadbury has realized the

need to liberate each brand and allow it to grow which would enable focus on

innovation and R&D. Cadbury is constantly looking at how to get new users and nonusers to

start consuming chocolate.

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CHAPTER 4: STRATEGY TO GROW THE MARKET

Liberating existing brands in the portfolio

Very recently Cadbury has decided Perk will play a larger role in the business in driving

category growth, to rope in first time users to try chocolates. Earlier, Perk was light

snacking as 'thodi si pet pooja', today Cadbury has changed it as a ‘recharge’. In a brand

portfolio, now there is a bit of functionality and a bit of indulgence in eating a Perk. The

Perk brand will be liberated allowing it to play a bigger role in the portfolio.

Introduction of new category

Cadbury tries to anticipate opportunities and appropriate it. For example: the Dark

Chocolate category, it never existed as a category in India. Lead indicators in adjacent markets

showed that as adult consumption of chocolates evolves and the palette evolves the

consumption of dark chocolate picks up. Cadbury’s strategy is about being consumerfocused

and having strategies that win. As market leaders they have to tap new

opportunities ahead of the curve to sustain their position.

Chocolate gifting

Chocolate was started 10 years ago; Cadbury’s took an aggressive approach to gifting. And

building a category like gifting was not a one-year or two-year agenda. With consistent

forays into the gifting market, Cadbury has successfully taken up a chunk of the gifting

markets in Diwali, Rakhee and other festive occasions.

Aggressive campaign to drive growth of small packs

Cadbury believes that categories develop when the biggest brands become accessible to a large

number of consumers. Hence their strategy is that every power brand should be

accessible at lower price points. Even low-income consumers aspire to have a Cadbury brand.

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So they have to make it accessible at a price to them. Cadbury Dairy Milk is now available at

Rs 2, 5- Star at Rs 3 and Bournvita at Rs 20. Cadbury’s power brands are available at what they

consider the lowest price point they could have attain. But even at a lower point the biggest

challenge is to still deliver the brand promise. They have tried to drive distribution very hard

and use technology to cut costs.

Managing quality along the supply chain

In the last few years, there have been fundamental changes in every function in the business.

Today, Cadbury’s have changed from being a manufacturing organization obsessed with

production volumes to having an end-to-end supply chain with production being the last KPI

(key performance indicator). A factory manager is evaluated on the product available in the

depot and whether it is of the right freshness. Service and freshness is now more important than

how much he produces. That is a big behavioural change. Today, a factory manger worries

about customer service.

Supporting Brands that are not power brands in the portfolio

Cadbury has some offers that are not supported by the above line of products, for instance,Milk

Treat and Nutties. Cadbury has also discontinued things that did not work, such as the chocolate

drink Delight. Cadbury is currently supporting 10 brands, which are getting the threshold level

of support, and has exploded the media support behind these brands.

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CHAPTER 5: OVERCOMING THE THREATS

On October 2003, the Food and Drug Administration Commissioner received complaints

about infestation in two bars of Cadbury Dairy Milk, Cadbury India’s flagship brand with

over 70% market share. He ordered an enquiry and went directly to the media with a

statement. Over the following 3-week period, resultant adverse media coverage touched

close to 1000 clips in print and 120 on TV news channels. In India, where Cadbury is

synonymous with chocolate, the company’s reputation and credibility was under intense

scrutiny. Sales volumes came down drastically in the first 10 weeks, which was the

festival season; retailer stocking and display dropped, employee morale - especially that

of the sales team - was shaken. The challenge was to restore confidence in the key

stakeholders (consumers, trade and employees, particularly the sales team) and build

back credibility for the corporate brand through the same channels (the media) that

had questioned it. A focused and intense communications program was implemented

over the next six months to rebuild credibility and restore confidence among the key

stakeholders.

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

- The day the crisis broke, the agency set up a media desk to ensure that no media query

went unanswered. From Day 1 every story carried Cadbury’s point of view.

- At the first media briefing organized by the agency, the Cadbury’s Managing Director

addressed consumer concerns with the following key messages:

o Infestation is a storage linked problem.

o It is safe to eat Cadbury chocolates.

o Consumers must exercise the same care in purchasing a chocolate as they would when buying

any food item.

- At a second media briefing about two weeks after the first incident was reported,

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Cadbury announced significant steps to restore consumer confidence. Called Project Vishwas

(Trust), this entailed:

o A retail monitoring and education program undertaken on a war footing to address storage

problems

o Significant packaging changes to ‘reduce dependency on storage conditions as much as

possible’ - to be launched within two months.

- An Editorial Outreach program with 31 media editors across 5 most affected cities

was orchestrated by the agency to get senior Cadbury spokespeople to share their version

of events in one-on-one meetings. The trade and consumers, was reached nationally

through a press ad ‘Facts about Cadbury’, released in 55 publications in 11 languages.

It presented facts about Cadbury manufacturing and storage and highlighted corrective

steps being taken by the company. This was a public statement of the corporate stand on

the issue.

The trade was supported with posters and leaflets to help them share Cadbury

point-

of-view with their customers. A response cell with a toll free number and an

e-mail

id were put in place to give trade a means to directly contact the company with any issues

they faced- reinforcing the company’s commitment to quality. From the beginning, a

series of town hall meetings were held with senior managers addressing employees to

ensure they were updated on the proactive actions being taken by Cadbury to manage

media, help trade and ensure future occurrences of such incidents were kept to the

minimum. Regular email updates from the MD were also used to communicate the

company’s point of view and to ensure consistency of messaging since employees are the

company’s ambassadors.

Phase 2: Packaging change (January- March 2004)

The new ‘purity sealed’ packaging was launched in January 2004. This entailed double

wrapping for maximum protection to reducing the possibility of infestation. This was a

big step involving investment of millions of dollars and getting on stream a production

process in 8 weeks that would normally take about six months. To communicate these

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significant changes the company was making, Cadbury brought in a brand ambassador

to reinforce the credibility that the company had demonstrated through its

actions.

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

of Cadbury as a brand and connected with all of India - mothers, teenagers, children,

media persons and trader partners. A media conference was organized in Mumbai to

launch the new packaging. And this was followed with press conferences in cities worst

affected by the crisis - Pune and Nagpur in Maharashtra and Cochin in Kerala. In these

conferences, media persons were encouraged to compare the old and new packs with an

innovative comparison kit and experience the significant changes in packaging first

hand. An audio visual with a message from Amitabh Bachchan, was beamed to build

credibility and excitement. Given that much of the damage had come from television

coverage, a video news release with packaging shots and factory shots was given to television

channels to control the visual messaging. Simultaneously, senior Cadbury spokespersons had

one-on-ones with the Editors of the Outreach program initiated in

November 2003. Another audio visual with a message from the star was used in a series

of sales conferences to enthuse and reassure salespersons. And this helped to rebuild

confidence in the salespersons to go and sell the product more convincingly and

confidently to the trade. The announcement of the new pack was done through a

testimonial advertisement on TV called ‘Sincerity’. It consciously addressed the

problem head-on, with the superstar talking straight into camera about how before doing

the ad he first convinced himself about the quality of Cadbury chocolates by visiting the

factory. Consumers respected the brand for not skirting the issue but acknowledging it

and giving a solution to the problem this was Public Relations using a TV Commercial to

get key messages across!

CAMPAIGN RESULTS AND MEASUREMENT

Media Coverage: The media relationship effort clearly helped in making media accept that

the infestation was genuinely caused by storage-linked problems. From the start, all media

reports carried the Cadbury’s point-of-view. Bad news automatically gets great

coverage. However, the agency helped Cadbury get a total of 378 clips in over 11

languages covering the new packaging, and its benefits, in January 2004. The Business Today

clip is a typical representation of the changed media perception and a better

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understanding of the problem over a three month period.

Sales: Sales volumes, which declined drastically between week 1 and week 10 of crisis,

climbed back almost to the pre-incident levels by week. Within 8 weeks of introduction of new

packaging and communication. This is a clear reflection of restoration of

consumer and hence trade confidence in the corporate brand.

Image: There was significant upward movement in ratings amongst consumers on

parameters like company image, responsiveness of company and behavioral parameters like

intention to buy Cadbury chocolates. While the new product introduction and

advertising had their role to play in the changing consumer perceptions, the media’s positive

coverage and the trade’s positive pre-disposition played a huge part in helping Cadbury regain

its reputation in the market.

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PRIMARY RESEARCH ON CADBURY

Objectives of research

A primary research was conducted with a view

To understand the people’s attitude towards consumption of the Cadbury chocolates

To understand the impact of Cadbury’s emphasis on gifting the chocolates for special

occasions

To understand the advertisement campaigns that have created an impact on the minds of

people

Sampling Methodology

The sampling methodology followed was simple random sampling.

Sample Size

The research was conducted for 77 respondents of various age groups. Males - 46

Females - 31

Criteria

The respondents belonging to various socio-economic classes A1/A2/B who consume Cadbury

Chocolates at least once in 6 months have been sampled as these are the target for Cadbury

Chocolates.

Segmentation

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Segmentation of the people has been done on the basis of the respondents demographics. The

age of the respondents is the main basis of segmentation,

Segment was divided into 4 groups

0-14 yrs

15-24yrs

25-34yrs

35+ yrs

As media campaigns are designed to be targeted in similar age groups

Age No of response0-14 1615-24 3325-34 2235+ 6

TOTAL 77

0-14 15-24 25-35 35+0

5

10

15

20

25

30

35

Age group

no. o

f peo

ple

Q.1. How often do you eat/consume Cadbury Chocolates

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Two or more times in week 35

Once a week 18

Once in 2 weeks 8

Once in a month 11

Less than once in a month 5

TOTAL 77

Two or more times in week

once a week once in 2 weeks once in a month less than once in a month

0

5

10

15

20

25

30

35

40

consumption

no o

f peo

ple

Here we are saying that two or more times in a week is a very high rate of consumption as it

amounts to consuming a Cadbury Chocolate one every 2-3 days

If we segment age-wise for 2 or more times in a week We get a high rate of consumption for

Age Group % of the total respondent having high consumption0-14 56.25 %15-24 45.45 %25-34 50 %35+ Nil

We can conclude that High rate of consumption is among the children, youth & adults .This suggests that is the major target group for Cadbury is 0-35 yrs.

There have been a lot of changes from the previous decade where the children formed the main target group .This indicates that Cadbury’s Campaign to increase consumption among the youths & adults has been effective.

Q.2 How often do you gift Cadbury Chocolate to friends/relatives/colleges?

This question was included with a view to understand if Cadbury has been successful to instil the idea of Cadbury Chocolates as a gift for special occasion

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Gift it to others No. of peopleTwo or more times in week 12once a week 8once in 2 weeks 12once in a month 18less than once in a month 17TOTAL 77

Two or more times in week

once a week once in 2 weeks

once in a month

less than once in a month

0

2

4

6

8

10

12

14

16

18

20

Gifting to others

frequency og gifting

No

of p

eopl

e

Though the frequency of gifting is not very high as there are only 12 respondents in two or more times in a week category

If we consider once in a month or more the 50 out of the total 77 respondents gift Cadbury chocolates to their friends/relatives/colleagues.

Age groups % of the total respondent gifting Cadbury once in month or more

0-14 35.5%15-24 78.78%25-35 63.63%35+ 66.66%

It can be seen from the figures that 65-75% of the respondents above the age of 15 gifted Cadbury Chocolates at least once in a month

The Campaign to portray Cadbury Chocolates as a Gifting option has been very successful among the youths & the adults

It should be noted that people in the age group 35+ do not consume Cadbury Chocolates

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themselves at a high rate however they consider it as a good option for gifting it.

Q.3. Which Cadbury Chocolate do you mostly consume? The respondents were allowed to choose multiple answers for this question as the question is administered to understand the most popular variant.

The variants are divided in different categories based on the price of the products VariantsCadbury Temptations/ Bournville/Silk 12Cadbury Dairy Milk 43Crackle/Fruit & Nut/ Roasted Almond 16Perk/ 5 Star 23Cadbury Gems / Cadbury Dairy/ MilkShots 21TOTAL 115

Cadbury Tempta-tions/

Bournville/Silk

Cadbury Dairy Milk

Crackle/Fruit & Nut/ Roasted

Almond

Perk/ 5 Star Cadbury Gems / Cadbury Dairy/

MilkShots

0

5

10

15

20

25

30

35

40

45

50

varients

No

of p

eopl

e

As we can see from the figures Cadbury Dairy Milk is very popular among the all respondents

and is equally popular across all the age groups.

The High value variants such as the Cadbury Temptations/ Bournville/ Silk are more popular

among the age groups 15-35.

If we analyze the advertising campaigns we can see that the advertising campaigns designed to

target the youths who have more developed palettes to indulge into dark chocolate, smooth

chocolate & chocolates with dry fruits.

The variants such as Cadbury Gems / Cadbury Dairy Milk shots are more popular among

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the ages 0-14 with 50% of the respondents describing it as their most favorite variant.

The “Colorful Bear” Campaign for Cadbury Gems is targeted towards the children and the

packaging is done to suit their tastes

Q.4. Which Cadbury Advertisement/Commercial do you like the most?

This was a text based question in which the respondents were asked to describe the

advertisements in brief. The advertisements which are etched people’s memory are

Kuch Khaas Hai Zindagi mein - The real taste of life campaign

Specially the one where a girl is eating a chocolate during a cricket match & comes down

running on the ground to celebrate after the team wins the match. It portrays celebration of

spontaneous moments of joy.

This campaign was also 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.

Kuch Meetha ho jaye Campaign

This Campaign was started in 2007 and became very popular with the Tag line

Dil ko jab Khushi Choo Jaye - Kuch meetha ho jaye where people were shown

celebrating the big & small moments of joy in life by eating Cadbury Dairy Milk

Chocolate.

Cadbury has come up with its new campaign on the same lines

Shubh Aarmbh - Kuch nek Kaam karne se pehle Kuch meetha ho jaye

This is currently running as a commercial and has gained a lot of recall from the people.

Cadbury Dairy Milk Silk Campaign

The new variant of Cadbury CDM - Silk has a different campaign where teenagers,

adults are shown enjoying the smooth and silky texture of the chocolate has also had a huge

recall from the respondents.

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The campaign “Pappu Paas Ho gaya” has had a greater recall among the people

especially the children because of its simplistic approach. Also the Cadbury Dairy Milk

Éclair Advertisement is among the ads liked and recalled by the many of the children.

CONCLUSION

Brand plays an important role for growth in today's competitive business

environment. It helps to maintain profitability in long run by differentiation in

the products and loyalty of customer. Cadbury Dairy Milk brand has developed

its Megabrand Product range having its own identity, but now they all comes

under the Dairy Milk brand. This proposal is planned to maximize the strength

of the Cadbury Dairy Milk brand. The strategy involved a packaging and range

refreshment strategy, which has resulted in a unified innovative Dairy Milk

brand. Having exceeded initial sales targets by a considerable margin, the

strategy can be considered a success! Branding is also one of the most important

parts of any business whether it is small or large, B2B or retail. An effective

brand strategy results into the major periphery in increasingly competitive

markets. The foundation of the brand is your logo, website, packaging and

promotional materials all of which should integrate your logo communicate

your brand.

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BIBLIOGRAPHY

sr.no

Name of theAuthor

(Year) “Title of the book”/Website Name of Publisher

1 Kevin Lane Keller

2008 Strategic Brand Managment Pearson

2 William G. Zikmund

2009 Business Reasearch Methods Cengage Learning

3 Kala Vijayraghava

2010 The Economic times - Brand

Power

Economic times

4 Cadbury India

2011http://www.cadburyindia.com/hom

e/index.asp

Cadbury

5 Campaign India

Team

2009 http://www.campaignindia.in/Artic

le/227481,cadbury-dairy-milk-refreshes-its-packaging.aspx

CampaignIndia

6 Ritu Mindha

2009http://www.audiencematters.com/

AudienceMatters.com

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