6A0URY'8 0A|RY H|LK

Right now Cadburys new advertisement campaign is doing the rounds over the television. "Meetha
hai khana,aaj pehli tareek hai is the tagline that the chocolate-giant has come out with. It tries to
bring forth the excitement, which lies in the minds of the general public as they wait for the first
date of each month on the calendar. The monthly salary stashed in their hands enables them to
celebrate and rejoice by spending it on Cadburys Dairy Milk.

Cadburys Dairy Milk has come out with such memorable ad-campaigns, which settled into the
hearts of everyone.

The story starts with "Once upon a time in 1948. when Cadbury entered the Indian market. It
originated from a town in the United Kingdom, Bournville(also the name of its recently launched
high-end chocolate) in 1905.
As the Cadburys official web site suggests, its journey in India has been an eventful one. In the
early 1990s, it tried to cater to the sweet tooth of the children. Those days they steered the
market and took control over the companys major market share. However, the strategy changed
by letting out the secret that "everyone has a child inside " and thus everyone craves for the taste
of chocolate. Cadbury strategies went through a considerable change. It now catered from children
to adults and from chocolate to mithai. As the tagline goes "Khane walon ko kahne ka bahana
chahiye.

The hole-in-one for the company was when it identified sweets to be a very integral part of the
Indian culture. It made sure that the festive and jubilant moods of the society that had paved the
way for kilos and kilos of mithai, now made way for a large number of Cadburys.
Meetha did to Cadburys what thanda had done for Coco-Cola. Both helped them crawl their ways
through into hearts of the rural population of the country, which had an untapped and astounding
potential.
The advertisement campaign of Amitabh Bachchan, dressed up as a villager, proudly announcing
that his "daughter-figure won beauty contests for cattle, brought out the laughs and struck a
chord with the same segment of people.

Later came the campaigns of "Pappu paas ho gaya acknowledged the market potential for
college-going youth. The treats for passing exams were now a Cadbury instead of a mithai.

With Kuch Meetha Ho Jaye, we knew Cadburys was now a desert craving as well as a popular gift-
item for festivals such as Raksha Bandhan and Diwali. Cadburys also diversified its range of
products with Wowie(with Disney characters for kids),Crackle, Fruit and Nut(variations of the Dairy
Milk),Bournvita(health drink)Deserts,Perk(wafer ingredient) and clairs(toffee segment).
Cadburys today holds 30 per cent markets share in the confectionaries industry and sells around 1
million bars a day
WSJ: You said in a recent interview that if marketers want to crack small town ndia, they have to speak their language -- meaning
understand their lifestyle. What challenges do multinational corporations face in doing this?
P.J.: n a country that has so much poverty and hunger - how can you glorify some product like chewing gum or chocolates? You can
only make your advertisements non-serious. f you make it serious, they won't buy it. f you make it non-serious "oh it's a chewing gum,
it's an impulse purchase," then they just like your body language. They like your tone and manner. f you take yourself too seriously as a
product and you start promising you can transform their life, people are going to be cynical about it and they won't buy it.
WSJ: How do you convince rural ndians to spend on non-essential products like Cadbury or Nestle chocolates?
P.J.: When you are trying to understand ndia, what you have to understand is there is a huge sort of resistance towards consumption,
not in rural ndia only, it's in every part of this country. n ndia, people feel indulgence is bad. So if you want to sell indulgence you have
to sell it in the garb of convenience, in the garb of improvement of your life.
Second, in rural ndia you have a purchasing power problem. So it is a very price sensitive market, very price conscious. You have to
price your product correctly and position it correctly so that it improves their lives.
The consumer in ndia wants to feel discerning. To give you an example, even if a housewife from a very affluent family goes out to buy
vegetables, she would ask the vegetable vendor to give her green chilies for free. Now, she might have been asked for 50 paisa for that
and she might have all the money in the world but that 50 paisa of free chilies are very important for her existence because she feels
she is discerning.
She still feels, " have the bargaining power to get this free." That is her icing on the cake, that is her cherry and that defines her
existence. That is quite amazing because she would probably have wasted 100 rupees on buying something very frivolous awhile back
but she will be fighting for that one rupee because that defines her existence, her bargaining power.
So you have to understand the consumer well, you have to understand that they are very price sensitive and you have to make them
feel very comfortable with the price they are paying.
WSJ: How do you do that if you are a multinational and the local brands selling in rural markets are always going to be cheaper?
P.J.: Of course you cannot compete with the local manufacturers who are manufacturing it cheaper. think when it comes to
multinationals building trust is very important, that is the key. f customers can trust you then you can launch any product and they will
accept it. You can then charge a premium for it. You have got to invest in building trust. You've got to make your intentions clear. think
corporate responsibility is very important for that. think whichever product you launch it has got to perform well.
WSJ: But is this long-term financial investment worth it for a multinational company when it comes to the advertising to price ratio?
P.J.: Of course it's worth it. Of course it's not a problem at all. They can't ignore a market as big as rural ndia. To get into this market
you have to invest and the trust can't be built overnight, it takes a lot of investment but gradually if you start cracking the market, it
becomes more cost-effective for you.
Something which requires a lot of investment today in advertising and communication - tomorrow would not require that much because
just a logo will do the trick because people are used to your stamp. For example, when it comes to Nike you don't have to do anything.
The swoosh will do the trick.
Cadoury lrd|a L|r|led
Company name and ownersbip details
Cadbury lndla LlmlLed ls a 31 subsldlary of Cadbury Schweppes plc uk and ls Lhe largesL
manufacLurer of chocolaLe confecLlonery and malLed food producLs ln lndla
lndlan ubllc LlmlLed Company
LlsLed on Mumbal CalcuLLa and uelhl Sxs
Cadbury Schweppes lc uk and Cadbury Schweppes MaurlLlus ls ln Lhe flnal phase Lo enable Lhe
dellsLlng of ClL from lndlan sLock exchanges and have announced Lhelr flnal cash offer Lo purchase
ouLsLandlng publlc shareholdlng of 976 of Cadbury lndla 1he Lwo companles have announced
Lhelr declslon Lo purchase Lhe ouLsLandlng publlc shareholdlng whlch comprlses of 3483339 equlLy
shares aL a prlce of 8s 300 each
1he company has 3 facLorles locaLed ln 1hane and ndurl MaharashLra SLaLe and ln Malanpur
Madhya radesh SLaLe lL also has cocoa operaLlons ln koLLaym kerala SLaLe
lnsLalled capaclLles

- Cocoa powder 900 mL/pa

- MalLed foods 6470 mL/pa

- ChocolaLes and confecLlonery n/A as producLs are manufacLured aL lnLegraLed planLs

- Cadbury lndla geLs some of lLs chocolaLe and confecLlonery producLs packed Lhrough
conLracL packlng

ecent performance
endlng 31 uec 2003

- Sales 8s 729811m

- neL roflL 8s 43630m

- uurlng 2003 Cadbury lndla sale of chocolaLes and confecLlonery producLs were valued
aL 8s 3140m

77 1nL MAkkL1 ICk CCNILC1ICNLk kCDUC1S IN INDIA Appendlx 2 key manufacLurers' proflles
ain activities
A manufacLurer of chocolaLes and confecLlonery malLed foods and drlnklng chocolaLe and sofL
drlnks

During FY2003, Cadbury India was bestowed with the award Ior the Iirst Business Today
A. T. Kearney, India`s Best Managed Company. India`s best companies were identiIied
on the basis oI Iour characteristics: value creation, strategic direction, complexity oI
portIolio and status as a role model.

During FY2003, Cadbury India was selected amongst the top 10 'Great Places To Work in
corporate India by Great Place To Work Institute, Inc., USA

roducts and brand presence
Choco|ate and confect|onery 1he Cadbury brand ls synonymous wlLh chocolaLes ln lndla

Cadbury India has 70 oI the domestic chocolate market.

65 oI Cadbury India`s revenue is Irom the sale oI chocolates.

Cadbury India has a 5 market share in the organized sugar conIectionery segment.

12 oI Cadbury India`s revenue is Irom the sale oI sugar conIectionery.

Cadbury India also markets Halls and Clorets under the Adam`s brand in India.

Cadbury India has setup an entirely new network Ior its conIectionery range and is not using
its existing chocolate network.

During FY2003, Cadbury India launched Double Deck and Caramello a new milk chocolate
variant, launched Perk and Gems in smaller pack size priced at Rs. 2 and launched Bytes
a chocolate Ilavored waIer snack.

During FY 2003, Cadbury India also Iocused on newer giIting Iormats Ior various
occasions.

Cadbury lndla chocolaLe brands lnclude ualry Mllk erk Crackle 3 SLar 1empLaLlons and Lhe
confecLlonery brands are Lclalrs and Cems
Cadbury lndla enLered Lhls segmenL wlLh Lhe acqulslLlon of Lhe Adam's brands from Warner
LamberL lndla vL LLd whlch was consequenL Lo Lhe acqulslLlon of Lhe global nonchocolaLe
confecLlonery buslness of flzer lnc uSA by Cadbury Schweppes plc uk ln 2002 1he acqulslLlon ls
now polsed Lo become a growLh area for Cadbury lndla 1he company announced LhaL lL wlll
sLrengLhen lLs poslLlon ln Lhe confecLlonery secLor and wlll launch some of Lhelr gum brands such as
1rldenL uenLyne 8ubbas and ChlcleLs ln 2003
78 1nL MAkkL1 ICk CCNILC1ICNLk kCDUC1S IN INDIA Appendlx 2 key manufacLurers' proflles
Ma|ted Iood Cadbury lndla has Lhe sLrong brand presence of 8ournvlLa whlch en[oys a markeL
share of around 16 CLher malLed foods are Cadbury's urlnklng ChocolaLe and Cadbury's Cocoa
powder whlch conLrlbuLes 22 of Lhe company's revenue
Soft Dr|nk Cadbury lndla has an arrangemenL wlLh ure urlnks LLd Lo manufacLurer a range of sofL
drlnks such as Canada ury Crush and 1onlc WaLer
istribution and future outlook
Cadbury lndla ls almlng aL Lhe developmenL of lLs reLall neLwork ln rural areas for expandlng lLs sales
volume and Lurnover lL also has an advanLage of brand equlLy dlsLrlbuLlon neLwork access Lo global
Lechnology and a sLrong base for raw maLerlal collecLlon
Cadbury Retail Seeding
To fuel volume growth, Cadbury introduced a smaller
unit, low price pack with a view of penetrating the rural
market. mpact Communications was roped in to devise a
trade activation program that ensured product placement
across uncovered retail outlets, while also identifying new
wholesalers in bigger villages linking the two.
This was executed through retail seeding by offering
baits and enrollment of semi-wholesalers. The activation
program was spread across eight states covering more than
5,000 villages/towns and added over 11,000 wholesalers
to Cadbury's distribution channel, acquiring over two lakh
new retail outlets across uncovered markets.
EXECUTIVE SUMMARY
This marketing summary aims at introducing Cadburys white chocolate in the
ndian market. Cadbury is the world leader in marketing of chocolate and it
commands about 70 percent of the ndian chocolate market. The objective of this
marketing plan is to successfully introduce the brand in the ndian market. The main
target market segment will be the female adult population in the ndian market. t is
expected that within three years, the product will have acquired about 30 percent of
the ndian adult female chocolate market. The introduction of the brand in the market
is based on marketing research which shows a high percentage of unnerved rural
population. The marketing plan will use a number of above and below line marketing
strategy like adverting on mass media, off street sampling, and others. The
advertising strategy will emphasize on creation of brand personality.
Objectives
The following are the marketing objectives for the marketing plan:
To introduce the product successfully in the ndian market within a period of
6 months, to ensure that there is a high level of awareness of the presence to white
chocolate brand in the ndia market by using effective marketing strategies, to put in
place a wide range of marketing strategies available in the ndian market including
ecommerce
strategies to ensure that there is overall growth of the product in the
market, to acquire about 30 percent of the female adult market segment within
period
of 3 years from the introduction of the brand in the market.
5_
Products
This marketing plan is looking to market a white chocolate brand of
Cadbury's Dream in the ndian market. Cadburys Dream is a brand of white
chocolate which is mainly targeting the female adults in the ndian market. The
introduction of this brand in the market is based on an extensive research that was
carried out in the ndian market which shows that there are social and cultural factors
which have been preventing adult population from consuming chocolates.
Projected Outcomes
The following are the expected outcomes of the marketing efforts: One of the
most important expected outcomes of this project is that successful introduction of
white chocolate in the ndian market. t is expected that this marketing effort will
successfully introduce white chocolate in the market and increase the product
portfolio for Cadbury brands in the market. Apart from successfully introducing of
the product in the market within a period of six months, it is also expected that the
marketing efforts will lead to increased financial performance of the company. This
will be the short term expected outcomes of the market. t is expected the product
will
have acquired a large market segment of the female population in the ndian market.
On the long term, it is expected that the product will acquire more than 50 percent of
the market share.
SITUATION ANALYSIS
Cadbury is the market leader in the ndian market. Cadbury is the fourth
largest supplier of chocolate and other sugar confectionaries in the market. n ndia it
6_
has the largest share of the market with more than 70 percent of the market share.
The following is the SWOT analysis for the company in the ndian market:
~ Strengths
The company has an already large established business in the ndian market.
Since
1824, the company has established itself as a world leader in the confectionary
market. t has operated in ndia since 1948. n ndia it has about 70% of the
confectionary market. n line with its vision, the company has been striving to be
the world leader in the confectionary industry. Through innovation and strategic
marketing, the company has acquired about 10% of the world confectionary
market (Laura, 2008).
The company has good market reputation. With strong brands in the market, the
company is well positioned in the market. n the ndian market Cadburys has
strived to build a good market reputation. This has worked positively for its
products. t is on this good reputation that the market can embark on introducing
the new brand in the market. Cadbury ndia was ranked the 5th most respected
ndian company by Business world magazine in 2007 (Laura, 2008).
The target market is also quite large. With the female population marketing more
than 56 percent of the ndian population, there is a wide target market for the
product. The ndian chocolate market has been recording growth in the recent past
and there are future prospects of growth. Therefore the target market is slowly
expanding (Cadbury, 2008).
Weakness
7_
The target population is quiet large and there are fears the demand for the product
may outdo the capacity of the company to satisfy the demands of the market. t is
still not clearly established the rate of growth of the product in the market but there
are expectation that the product will record a high growth rate. This means that the
company will need to increase its production capacity in order to match the rate of
growth of the market (Laura, 2008).
The company has not been able to establish a distribution network in the country
that matches the demands of the market. n this case the company has not
established a distribution network to the interior due to infrastructural development
issues (Cadbury, 2008).
Banking on the success of the other brands in the market may have negative
effects
on the introduction of the new brand in the market since the products will be
targeting different markets (Cadbury, 2008).
~ Opportunities
There company is introducing the brand in a less competitive market. This is a
unique opportunity for the company. A more competitive market becomes
difficult to introduce a new brand because there are already other companies which
are likely to bring in competition (Cadbury, 2008).
The company can introduce the product in the market in unique way. With the
growing importance of beauty shows, the company can host beauty competition in
order to help the target market identify with the product. This will introduce the
product in the market in unique way. The company can also host other events like
_
sports or engage in corporate social responsibility activities like girl child
education to help the target market identify with the product more (Laura, 2008).
The company can use a wide range of marketing strategies which will lead to the
overall growth of the product in the market. The ndian advertising market has
been growing at a rapid rate which means there will be an array of opportunities
for the growth of the market. There are many advertising strategies for the
company in the ndian market (Cadbury, 2008).
~ Threats
There is threat of entry of other products in the market. n this case there are
threats of entry of new products in the market which will increase the level of
competition in the market. There are other companies which are likely to introduce
the same products in the market once there is success of the initial product
(Cadbury, 2008).
There is a threat of change of the current external environment which is likely to
alter the nature of the market. For example change in the taxing regime,
government laws regulating the industry, and other factors which are likely to
impact negatively on the industry (Cadbury, 2008).
Company anaIysis
(i) Strengths
Cadburys ndia is the market leader in the confectionary market. For more
that six decade, the company has established a market portfolio that has positioned
it
well in the confectionary industry. Currently the company has a market share of
more than 70 percent of the chocolate market.
9_
The company has a worldwide operation. This gives the company a chance to
transfer products which have been successful in one market to the other emerging
market. The company operates in more than 200 countries in the world with the main
markets in USA, UK, reland, South African and with other operator in emerging
market like ndia, China, Thailand, and others. Cadbury ndia has five companies
owned manufacturing plants in locate at Thane, nduri ad Malanpur, Bangalore and
Baddi. t has four sales offices in New Delhi, Mumbai, Kolkota, and in Chennai
(Laura, 2008).
Cadbury ndia has good human resource policies which have ensured the
growth of the company in a recent 2006 survey Cadbury ndia was ranked the 7th
overall greatest place to work and was also ranked number 1 in FMCG Company in
ndia by the Great Place to Work nstitute. The company has been improving its
ranking in the recent past for the last 10 years. All over the world the company
employs more than 60,000 employees operating in more than 200 countries
(Cadbury,
2008).
One of the most important factors in the overall growth of the company has
been heavy investment in technology. Through innovation the company has placed
new recipes in the market which ensures reduced cost of production. nvestment in
the new technology has ensured the growth of the company in the market. With a
worldwide operation the company has been investing in technology which is first
tried in its main market and then deployed to the emerging markets like ndia.
The company has a strong management team with a strong centralized
management structure. His ensure that there is standardization of operations
_
procedures in all its plants. The company also has put in place effective corporate
management structures which ensure timely disclosure of information on the
performance of the company. This is important for the overall financial management
of the company (Cadbury, 2008).
(ii) Weakness
The company has not been able to standardize its operation in all the countries
where it operates. For example while the company has a strong market share in
ndia
and other emerging market, its market share in the established market like US
market
has been declining. ts US market share is not strong enough to guarantee its market
leadership (Cadbury, 2008).
There has been declining market demand for chocolates with the emerging
health concerns. The company has not done enough to defend its products in the
market or put in the market other products which take care of the health concerns of
the customers.
TechnoIogy competency
As has been listed one of the most important growth factor behind the
company success n the emerging market has been the use of modern technology
which gives it an upper hand compared to other companies. The company has been
testing new technology in the established or in its main market and then transferring
the most appropriate technology to the emerging market. This has been an important
growth factor in the overall performance of the company. n line with the growth of
ecommerce,
the company has been built its site from which customer can access all the
_
needed information about t operation of the company. The company site it the main
communication centre between the company and other stakeholders (Cadbury,
2008).
Macro IeveI market (Industry) anaIysis
The confectionary industry in ndia is in its growth stage. This marketing
research data from the industry shows that the industry has been making impressive
growth in the ndian economy. The confectionary industry is divided into the flowing
specific industrial sectors: Chocolate, Hard-boiled candies, clairs and toffees,
Chewing gums, Lollipops, Bubble gums, and Mints and lozenges (Laura, 2008).
The total confectionary market is valued at about 41 billion ndian Rupees. t
has a total turnover of about 223500 tones of confectionary produced every year.
This is a huge overall turnover which is equal to that of established markets.
Most the confectionary are consumed in the urban areas. The urban market
constitutes about 73 percent of the total market. This is a skewed market share
compared to the rural market which accounts for about 27% of the total market. This
market data shows that the rural market has not been well tapped into. With more
than 50 percent of the ndians living in the rural areas, it means that there is a high
potential in the rural market (Cadbury, 2008).
On the product share of the market, hard boiled candy accounts for about 18%
of the market, clairs and Toffees has about 18% of the market share, while gums
and mints and lozenes are at par accounting for 13 percent of the market share
each.
However chocolate has recorded the highest market growth rate recording
about 23 percent growth rate. This is a higher growth rate compared to other
markets
_
in the world. However the overall sugar confectionary segment in the ndian market
has been declining with a total decline of about 19 percent recorded in 2007 (Laura,
2008).
Cadbury with a number of products including Daily Milk, Perk, Gems, 5 Star,
Celebration, Bytes, Dairy Milk clairs, clairs Crunch, Mr. Pops and Halls is the
leading player in the chocolate segment, clairs segment, Lollipops, and the Mints
Segment (Cadbury, 2008).
Cadbury is also the leading player in the milk beverage segment which is
valued at 16.1 billion Rupees. This segment has an annual turnover of about 63,000
tones and has been growing at a rate of 10.1 percent. Here Cadbury is the main
player
with Cadbury Bournvitta and Cadbury Bournvitta 5 Star Magic (Cadbury, 2008).
Product anaIysis
Cadbury ndia specializes in production of confectionaries. n this category
the company produces a number of products including Dairy Milk, Perk, Gems, 5
Star, Celebrations, Bytes, Dairy Milk clairs, clairs Crunch, Mr. Pops, and Halls
brands. n the milk beverage section, the company produces Cadbury's Bournvitta
and Cadbury Bournvitta 5 star Magic (Laura, 2008).
This marketing plan is planning to market Cadbury white chocolate in the
market. t is in the category of chocolates and it is expected to target the adult
population. The product is made in the same process as dark chocolate but the color
is
modified so it has the same natural taste as dark chocolate although it has been
described creamier and tasty compared to other chocolates (Laura, 2008).
_
Product/Service
Comparison
Your Product
NestIe Proctor
Price 2 Rupees 3 Rupees 1.5 Rupees
Perceived
QuaIity
White colored,
more creamy and tasty
Brighter
than the normal
dark chocolate, a
bit brittle
Darker and
creamy
Marketing/saIes
Advantages
Targets a
specific market
population mainly the
female segment
Targets
the general market
population
Targets
children population
Feature Packages in
white and blue package
Packaged
in red an orange
packages
Packaged in
purple and grey
packages
Feature Long
rectangular bar form
Short
square form
Round in
shape
Feature
Benefit Competitive
price
Target
the upper class
market
Low price
for general market
Benefit Target market
highest consumers of
chocolate
High
price likely to
result to high
profits with less
sales
Likely to
make high sales
based on volume of
sales
Competitive Comparison Matrix
Market segment
The company is currently serving a wide range of market ranging from the
adult to the children population. The company has been taking a wide market
population appeal in its marketing strategy. However this marketing strategy is
targeting the female adult population. Apparently this is the leading market segment
in consumption of chocolate products but the adult population has been neglected
especially in the rural areas. More than 50 percent of the ndian population is female
population and therefore the company is targeting large market (Laura, 2008).
Major competitors
_
There are no many competitors in the confectionary industry that Cadbury is
competing with. Cadbury is a market leader in the industry. The other competitors
are small compared to Cadbury and therefore the level of competition is expected to
be a bit low.
Cardbury NestIe Proctor
Core
Strength
Wide
established operation
ad good reputation
targets
the high class
market
Targets
the lower market
segment
Secondar
y Strength
Wide
distribution network
Links
with big stores
in the market
Local
distribution
network
Biggest
Weakness
Weak
distribution system
Weak
market appeal
Low
quality products
Core Competency Comparison
Market share objectives
Once the product is introduced in the market, the company will undertake
various marketing strategies which are aimed at ensuring market growth. Within the
first 6 months of introduction of the product it will be expected to have about 5
percent share of female chocolate market. This is expected to growth to about 30
percent within a period of 3 years. This will be achieved through the use market
growth strategies like brand renovation. There is not brand for the product that will be
allowed to go to stagnation or declining market stage.
EXTERNAL ANALYSIS
The external environment is a major determinant in any overall growth of a
business. The ndian external environment can be described in terms of the serene
political environments which have enabled the growth of business. The country has
taken steps to development of modern technology. The social environment is
enabling
with the ndian community known for its entrepreneurial skills.
5_
Current opportunities
n the confectionary market, there are a lot of opportunities that currently
exist. There is a large female market segment that has not been tapped. Market data
shows a high consumption of chocolate in the urban market it still remains low in the
rural market. There is a large rural market that has not been catered for. These
marketing strategies will therefore look on tapping into the urban and rural female
market. nternet usage in ndia has been growing at a very high rate and majority of
the urban population is connected to the interest. Since there is not company that is
currently using online sales, the company will look into using this strategy to boosts
its sales (Laura, 2008).
PotentiaI future opportunities
n the future the company expects the chocolate and the general confectionary
market to grow in ndia. Therefore it is looking at introducing other confectionary
products targeting the same market. n the future the company will offer its other
products online to the specifically targeted market (Laura, 2008).
Environment threats
The industrial environment has been enabling for the growth of the industry in
the ndia market. The regulatory environment has been more conducive which has
enabled the growth of the industry. The social environment has been one of the main
growth factor supported by increasing polarization of culture which has popularized
the use of products like chocolate. The only environmental factor that is likely to be a
6_
threat to the future growth of the industry is the regulatory environment. There may
be introduction of laws in the industry which may impact negatively on the growth of
the industry (Laura, 2008).
Competitive threats
The entry of other players in the industry remains a threat to the operation of
the company. The entry of other players will increase the level of competition
especially when it comes to the market share and competition in resources for
manufacturing the products.
TechnoIogicaI threats
One of the most dynamic factors in the world has been technology. World
technology has been changing very fast. No one is sure of the when the current
technology will become obsolete. While the company has been investing heavily to
keep up with the emerging technology in the market, rapid change in this technology
will impact negatively on its fanatical performance as it will be forced to invest in the
new technology.
MARKETING RESEARCH
According to the market research data there is strong evident that supports the
introduction of the new brand in the market and to the target population. The
research
data shows that 70 percent of chocolate consumer ages from 20 years to 60 years
are
likely to purchase white chocolate from Cadburys compared to any other leading
chocolate brand in the market. Of this percentage, 88 were females. This shows that
there is a high demand for white chocolate in the market. 70 percent of those
interviewed were frequent shoppers at retail outlets while it was only 30 percent who
7_
were shoppers at leading chain stores. This shows the important of having
distribution
network that will reach the retail sellers (Cadbury, 2008).
Primary Research
The primary research data for marketing was conducted in conjunction with
the distributors. t showed a high rate of preference for introduction of white Cadbury
in the market. The market research data shows increased preference of white
chocolate among the adult female population.
Secondary Research
From the industry market research data, it is evident that about 77 percent of
the chocolate market is concentrated in the urban areas. This means that a large
segment of the rural population has not been catered for. Confectionary industrial
data shows that more than 70 percent of the potential consumers are likely to be
females. This shows the increased rate of demand on chocolate among the females
who have not been appropriately targeted especially in the rural areas (Laura, 2008).
E-commerce data shows an increasing trend in the use of online purchase in
the population especially the emerging middle class. There are more ndians who
are
getting connected to the internet which shows a potential growth of e-commerce
(David, 2004).
Consumer anaIysis
The main target market for the product is the female market segment in the
rural and urban areas. Females are the leading consumers of chocolate in the
market.
However it has been shown that female also act as gate-keepers while showing for
the
product since they rarely consumer half of the chocolate they buy. They share it with
_
others. To the female segment chocolate is a specialty good which they have
remained extremely loyal to. Unlike males who will purchase chocolate on special
occasions like valentine days an other holiday, females are daily users of the product
(Laura, 2008).
Customer profiIe
The specific customer for this product will be the adult female consumers in
the ndian market. Adult female consumer represents a large segment of the ndian
market which is still the leading consumer of the chocolate products. Females are
likely to consume chocolate more than males. They also make important purchases
decision for the family and therefore they have a lot of influences on home
purchases
(Laura, 2008).
Continuous consumer monitoring and research
There will be continuous monitoring of the success of the marketing strategy.
This monitoring will be carried out on monthly bases in order to evaluate the success
of the marketing strategy. t will assess the overall effectiveness of the marketing and
advertising strategies which have been employed in the market. This will be the
responsibility of the marketing department. There will be an overall evaluation which
will be carried out at the end of the every 6 months.
TARGET MARKET PROFILE
The female population makes up about 56 percent of the ndian population.
This is a large customer base fore the products. The main aim for target the female
population is that it will be in a position to influence the rest of the population to
9_
purchase the product. The female population is the largest consumer of chocolate
product not only in the ndian market but in other markets as well (Laura, 2008).
MAREKTING AND PROMOTION
This marketing strategy will use above and below the line advertising
strategies to reach the potential customer. Above the line strategies that will be
employed will include advertisement on the mass media, online advertisement, on
billboard and in other popular places. Below the line strategies that will be employed
by the company will include off street promotion and sampling which will be carried
out in all the corners of the country.
Marketing objectives
To introduce the product successfully in the ndian market within a period of 6
months
To ensure that there is a high level of awareness of the presence to white
chocolate brand in the ndia market by using effective marketing strategies
To put in place a wide range of marketing strategies available in the ndian market
including e-commerce strategies to ensure that there is overall growth of the
product in the market.
To acquire about 30 percent of the female adult market segment within period of
3 years from the introduction of the brand in the market.
Promotion and advertising objectives
The product will be launched in the market during a Beauty competition
which will be organized by the company. The company will carry out a number of
advertisements in the mass medical and online. There will also be outdoor
_
advertisement activities in the billboards, and popular places. The company will also
carry out off street promotion and sampling activities which will give consumer the
true taste of the product. The company will also establish a site for the product to
promote sales and to have timely response from consumers.
BRANDING OBJECTIVE
The success of the product in the market will depend on the branding image.
n this case the company will create a personalized brand images. To ensure the
growth and continues of white chocolate in the market the company will ensure that
there is no brand which goes to slow growth or exist stage in the product life cycles.
The brand will be distinct from other through package where it will be packed in
white and blue cooler packages and the brand name will be Cadburys Dream.
Creating brand image
To create a brand image, brand personality approach will be used. n this case
the launch of the product will be tied to female's characteristic which they can easily
identify with. This will identify the characteristics of the brand in relation to the
target market. This will use key elements that enhance female appeal like styled,
confident, sophisticated, and self assured
PRODUCT, PRICE, AND DISTRIBUTION STRATEGIES
The plan will employ a number of strategies in marketing. n this case it will
use different strategies in product price and distribution to ensure that that product
reaches the indented consumers in the market. Strategies in product will ensure
provision of quality product in the market. The pricing strategies will aim at creating
_
a price competitive edge while the distribution strategies will ensure that the products
reach the final consumers.
Product description
This marketing strategy will be offering a particular product in the market. t
is specifically offering white chocolate in the ndian market. The main brand that is to
be introduced in the market is Cadburys Dream which is mainly targeted for the adult
female population. The product will be offered in 45 gm packages, 100 gm and 200
gm packages. These will be the most important sized packages that the product will
be sold in. it will be sold in whole sale and retail.
Pricing strategies
Since the product is being offered for the first time in the market, the company
will use price penetration strategy where it will use low prices strategy to penetrate
the market. However this will be combined with cost plus pricing since it will have to
operate at a profit market. However the initial price set up will be based on the low
prices to penetrate the market. The product will be offered at Rupee 2 per 45 gm
size
bar.
Distribution strategies
To ensure that the products reach the intended consumer, the company will
use the current existing distribution changing. t will sell the product in wholesale to
intermediary wholesales who will in return sell to the retailers. To reduce on the cost
of operation, retailers and distributors will be expected to obtain the product directly
from the company store to reducer the cost of production. However the company will
_
establish a number of stores on all provinces to take the product close to the
retailers.
Taking the product near to the consumer will be the main pillar for the success of the
distribution marketing strategy.
SaIes projection
9
Cash infIow (Rupees)
Cash balance 200 000 250 000
Opening stock 60 000 80 000
Cash sales 6 700 000 7 000 000
Net profit after tax 1 558 500 1 722 500
Marketing budget
Expenses (Rupees) 9
Transport 500 000 1 550 000
Salaries 130 000 2 140 000
Sampling product 600 000 600 000
License 130 000 140 000
Office expenses 230 000 240 000
Budget Iimitations and assumptions
The budget for the implementation of the marketing strategy will be Rupees
5,141 500. The total available fund for the project from the head office is Rupees
6,000,000. Therefore it is expected that the cost will be effectively met. The budget
will be limited due to the risk of increase in the prices of products and services. The
_
funding for the project is expected to come from the company head offices. t will be
assumed that the cost of products and service will not change as benchmarked on
the
current cost.
Return GoaIs
This marketing strategy aims at ensuring total returns of about Rupee 1.5
million every year which will be ploughed back for the growth of the product in the
market. The main measure of the financial success of the marketing strategy will be
the overall net profit that will be made every year. The total amount of sales will be
used to assess the success of the marketing initiatives taken.
Objectives and tasks
This plan will effectively meet the objectives of the marketing strategy. This
is because the budget limitation which can impact negatively on the overall growth of
the product in the market will be mitigated through cost cut strategies like limiting the
number of field staffs, organized logistics to maximally utilize same transport and
others. However it is necessary to have on time alternative strategies which will
ensure the success of the marketing strategy
E-COMMERCE/MARKETING STRATEGY
The company will take advantage of the emerging e-marketing in the ndian
market. This will be implemented as follows:
E-commerce structure
The company will set up an effective e-commerce structure which will just be
a build up on the existing structure. The company already has a website but which
_
will need to be expanded and upgraded. To set up an effective e-commerce
structure,
the company will expand the e-commerce section by acquiring more computers and
hiring more T experts to add on the exiting one. The company is already connected
to an SP but will need to increase or change the broadband to make it more
effective.
(David, 2004)
E-commerce objectives
The main objective for implementation of e-commerce structure will be to
enhance the overall marketing capability for the company. The server will be used to
monitor the success of the e-commerce structure. t is expected that within three
years, online sales will be accounting for about 30 percent of the total sales for the
company. Currently the company site has about 1000 visitors every day. Per day the
company is expected to record a hit of about 2000 user within the first year which is
expected to rise to 9000 within second year and 12000 within 3rd year. The company
will expect to retain about 65 percent of all the first time visitors to the website. This
means the quality of the site must be improved now and then. (David, 2004)
Website content
The website will be the main communication site between the company and
its customers. Therefore it is expected to be user friendly and to contain as much
information as needed by the users. Specifically the website will contain information
like, the product and its description, the price of the product, how to order for the
products, where to pick the product in the (the nearest company store), where to
post
comments about the product online, investors information, careers, and many more
5_
information that will be needed by the users. The website will be easy to use by
arranging the contents in a simple manner. Most of all it will provide an interactive
space where the users can have online chat with the company. (Mark, 2003)
GLOBAL ASPECT MARKETING
The sale of white chocolate is not limited to the ndian market only. This
product has been successfully introduced in other market around the world like in
reland, UK, USA and other markets. These marketing strategies will be looking at
expanding the sales of the product from the ndian market to other markets in the
world.
ADVERTISING
Advertisement is the most important factor in the overall success of any
business. Advertisement helps the business to reach all the intended consumers in
the
market. Advertising strategies are important in the overall success of a marketing
strategy. This plan will use advertising strategies to reach all the consumers in the
market.
Advertising strategy
n order to meet the objectives of marketing the company will taken a number
of advertising strategies. The overall advertising strategy will combine different
methods. t will place advertisement in the mass media. t will also use direct
marketing online. The overall spending for the marketing strategy will be divided as
follows:
6_
Percnetage cost of advertising
methods
27%
46%
27%
online
advertisin
media
advertising
Promotions
Advertising execution
n order to advertise effectively, the company will set up a specific department
that will be entrusted to carry out the advertisement. This department which will be
within the sale department will plan, execute and monitor various advertisement
methods. The effectiveness of the advertising campaign will be assessment on the
overall growth in sales of the product.
SALES PROMOTION
Internet saIes promotion strategy
The company will not only carry out off street sale promotion and sampling as
a pull strategy but it will also use internet promotion strategy. This will be carried out
with two aims. First it will be aimed at ensuring that there is increased awareness of
company website to promote online sales growth and second it will be aimed at
promoting the sale of the product. The company will offer special offer are a reduced
at a discount of 15 percent for every purchase through the internet. The
advertisement for this offer will be carried out in the mass media and in the internet
as
well (Giuly, 2000).
7_
TraditionaI media strategy
The traditional media strategy will be carried out in the mass media. This will
use direct mail campaign to reach the intended consumers. This strategy will use
normal discount for every purchase which will be carried out within limited period of
time.
ChanneI Distribution: Push and PuII
The promotional strategies will be carried out in collaboration with the
distributors who will be the middlemen used in the distribution channel. The
company will use pull strategies to entice consumer to purchase its product. nstead
of
giving out free sample the company will use discount strategies but it will also use off
street sampling to help the consumer to directly experience the product.
PUBLIC RELATIONS
Public relations are important as it determines the relationship between the
company and its stakeholders. Public relations are important in creation of a lasting
relationship between the business and the rest of its workers. Public relations is an
important concept that determines the overall success of business
Internet pubIic reIations strategy
Stakeholders are the important part for the growth of any business. n this case
the company will use the internet to post company results to the shareholders and
any
potential investors. t will also post newsletter to individual investors. Through the
internet, customer and other stakeholders will be able to communicate directly the
company (Mark, 2003).
_
TraditionaI mediaI pubIic reIations strategies
t is not all the stakeholders for the company who are conversant with the use
of the computers and not everyone is connected to the internet. Therefore the
traditional medial public relations strategies remain particularly important for the
company. The launch of the product will be announced in all the mass Medias while
the consequent performance of the company will also be communicated through the
same media. The performance of the product will also be posted in the company
magazine. The mass media will still remain important in the overall advertising
strategy for the company.
IMPLEMENTATION AND CONTROL
n the overall implementation of the project there will be a number of controls
that will be put in place. The company will ensure that there is constant monitoring of
the implementation. The company will ensure that the plan is implemented on time.
There will be timely strategies that will be put in place to ensure that there is enough
time to address any arising issue in the implementation of the marketing strategy.
There will also be cost contingency that will be requested to cushion against the drift
of cost strategy. (Mark, 2003)
MAIN POINTS FROM THE CHAIRMAN`S SPEECH:
O Despite diIIicult economic conditions prevailing in India, the co. management has
been able to deliver excellent results. This has returned the co. to the growth path
enjoyed during the mid 90s.
O Two major projects at Malanpur and Induri were completed in the beginning oI 1998.
O While "Picnic" is manuIactured at Malanpur, Induri plant produces "Gold" both these
brands well received in the market.
O During the year, a new vision has been developed so as to be in line with the current
and emerging market opportunities. This vision comprises oI two parts
Delivering superior shareholder value, &
Cadbury in every pocket.
O "Superior Shareholder Value" is a part oI "managing Ior value" mentioned last year.
O Under "Cadbury In Every Pocket" vision, the co. would be introducing at least one
major product every year.
O Project Ior producing speciality sugar conIectionary at the high end oI the market is
expected to be completed later this year. This would Iurther stimulate the growth in
Cadbury India`s conIectionary business.
O The co. has tremendously upgraded its business soItware Ior which it has won "Sap
Star Customer" award.

ST
QTR. RESULTS:
O Sales increased by 16.5 whereas net proIits increased by 88.
O Volume growth was under pressure except Ior choclates which had good growth.
O "uantum jump in the bottom line is due to the Iollowing :
Overall lower material cost.
Higher Iactory eIIiciencies.
Lower Iixed costs.
OUTLOOK FOR THE CURRENT YEAR
O Economic and trading conditions continue to be diIIicult. No major change in macro
trends expected during the rest oI the year.
O However, so Iar the co. has Iared exceedingly well. The management does Ioresee a
reasonable increase in the perIormance during the rest oI the year.
lop

QUESTIONS AND ANSWERS
QUESTIONS REPLIED BY THE CHAIRMAN.
O Cadury India invested nearly Rs. 81 crores in 1996 and 1997. This has proved to be
worthwhile and has already started generating revenues and proIits. While 1998
results had some eIIect oI this, current year would witness increased impact oI the
same.
In Iact capacity enhancements precede expected market growth so as to gain
Irom the emerging opportunities.
O The current year has aggressive plans to grow.
Despite diIIicult trading conditions, sales expected to grow by 15-20 in the
current year.
ProIits are diIIicult to be Ioretold.
Sugar conIectionery project is progressing as per plans and expected to start
by the yearend.
O Theme " Cadbury In Every Pocket" is a part oI Iurther market coverage and rural
marketing.
So Iar choclates are perceived as luxury product.
But now the vision is to make it an item oI every one.
This mass consumption idea means increasing the number oI persons eating
choclates every year.
This and rural market penetration means making products oI lower prices and
smaller sizes.
Creating own distribution channels Ior this is costly. So an eIIective chain oI
wholesalers is being created.
O Ad. \ publicity spent is very judiciously planned Ior maximum growth in all regards.
O VRS is an ongoing Ieature.
Higher productivity in Iactories and cocoa operations give rise to VRS.
Productivity enhancements is an on going process. Wherever a scope in this
regard is seen, it is resorted to. Hence VRS.
O Capex in the current year would about Rs. 25-30 crores. (includes that on sugar
conIectionery project).
Rolling capex oI about 20-25 crores would be an on going almost every year.
Otherwise no major capex plans.
Rolling capex to build plant & equipments and on modernisation would give
increasing eIIect on higher volumes, turnover and proIits in Iuture.
O No. oI employees are about 2,000.
O Contingent liabilities are mainly in respect oI excise, sales tax and income tax claims
not acknowledged as debts.
O Cadbury India has been giving increasingly healthy dividend payout.
However, creating "Superior Shareholder Value" would be the ultimate test in
rewarding the shareholders.
Maximum attention is paid to optimally utilise the available resources so as to
maximise the returns to shareholders.
O Union budget 1999 is a mix bag Ior the co.
FAVOURABLES
O Excise duty on chocolates, the main item has come down Irom 18 to 16.
O MODVAT credit has again been reinstated at 100.
NEGATIVES
O While customs duty on cocoa beans has gone up, the same on cocoa butter has come
down.
O Also there is now corporate surcharge.
O Out oI total saving oI Rs. 8 crores arising due to duty changes, Rs. 3 crores has
already been passed on to the consumers.
O Royalty payment is reasonably low considering the kind oI technical and other
support the co. gets Irom the parent. 1998 royalty payment looks higher in relation to
1997 as the same is provisional unlike in 1997 where it was on actual basis.
O Land development agreement entered into in 1993 Ior surplus land at thane was
intensively reviewed during the year.
O Because the developer was unable to honor his commitment on account oI Iall in the
property prices.
Pursuant to this, the eIIective area release has now been reduced with a
proportionate reduction in sale value also. Hence an extraordinary adjustment
has been made in 1998 results.
O Nearly 50 oI the cocoa requirements which is the key input is imported.
O Despite growing competition, the co. has maintained its market share at about 70
Ior chocolates.
O There has been sustainable good volume growth over the past Iew years and expected
to still grow.
O Brands` value is better explained by the current market cap. oI Rs. 1500 crores.
lop

DISCUSSION WITH COMPANY OFFICIALS
O Investment in new sugar conectionary project would be around Rs. 15 crores.
O The production Iacilities at Malanpur (Ior "Picnic" brand) and Induri (Ior "Gold"
brand) are not Iully dedicated.
Flexibility can be achieved by carrying out modiIications in certain sections such as
wrapping. The cost oI such alteration depends on the change desired.
O Milk beverage market comprises oI 2 segments whites and brown.
"Bournvita" which Ialls in the later category enjoys market share oI nearly 1\3 in that
segment.
O Unlike in the past, the recent relaunch oI "Bournvita" carries "nutritional value" tag
attached to it to which consumers now a days pay lots oI importance.
O So Iar in the Indian context, sugar conIectionary business has been in the low end oI
the market mostly comprising oI hard boiled sugar sweets. However, things are now
changing very Iast. This business at present contributes about 4 to Cadbury India`s
sales.
The new project aims at launching the niche but not too expensive new products Irom the
vast range oI the parent.
Over the coming 4-5 years, this segment is expected to constitute nearly 15-20
oI the Cadbury India`s sales mix.
O Overall sales CAGR over the next 3-4 years expected to be 15-20.
O Both the 1
st
qtrs. oI 1998 and 1999 were Ior 12 weeks. (now qtr. ending has been
changed to Sunday Irom Saturday earlier)
O The Iollowing are some oI the major highlights oI 1
st
qtr. 1999 results:
Selective reduction in the ad. spend.
No exceptional items oI expense or income
Sugar, milk, other inputs (other than cocoa) and packing materials prices were
soIt.
Selective increase in price was eIIected.
Sales growth didn`t really Iollow the co.`s philosophy oI 12 volume growth
and 8 price increase every year..
Except Ior chocolates, volume growth in respect others remained under
pressure.
O But the co. is conIident oI volume growth pick up in the remaining period oI 1999.
O Brand Selected: Cadbury`s India (Only Chocolates)
O Limitations oI the study:
O W
O There are no Iinancials oI Cadbury India available and hence they have not
O been included.
O W
O The order has been tweaked so as to maintain the Ilow.
O W
O
O 1.Industry Analysis (ConIectionary Industry)
O %e corlecl|orary |rduslry |s d|v|ded |rlo
Coco|ales
lard oo||ed card|es
%ollees ard Ec|a|rs
CeW|rg 0urs
Lo|||pops
8uoo|e 0urs
V|rls & Lozerges
O %e lola| corlecl|orery rar|el |s va|ued al Rupees 11 o||||or W|l a vo|ure lurrover ol aooul
223500 lorres per arrur. %e calegory |s |arge|y corsured |r uroar areas W|l a Z3
s|eW lo uroar rar|els ard a 2Z lo rura| rar|els.
O lard oo||ed cardy accourls lor 18, Ec|a|rs ard %ollees accourls lor 18, 0urs ard V|rls
ard |ozerges are al par ard accourl lor 13. 0|gesl|ve Card|es ard Lo|||pops accourl lor
2.0
sare respecl|ve|y.
O Overall industry growth is estimated at23 in the chocolates segment Ior year 2009-
10 and
O sugar conIectionery segment has declined by 19
O !er cap|la corsurpl|or ol coco|ales |r lrd|a |s r|ruscu|e al 20grs |r lrd|a as corpared lo
arourd 5-8 |gs ard 8-10 |gs respecl|ve|y |r rosl Europear courlr|es. AWareress aooul
coco|ales |s very |g |r uroar areas al over 95.
O Low priced unit packs, increased distribution reach and new product launches can be
O said to have Iuelled this growth.
O %e |aurc ol |oWer-pr|ced, sra||er oars ol coco|ale |r le |asl lWo years ard
pos|l|or|rg ol coco|ale as a suosl|lule lo lrad|l|ora| sWeels dur|rg lesl|va|s, ave ooosled
corsurpl|or. %|s |s a|so oecause coco|ale, W|c Was cors|dered lo oe ar e||l|sl lood, as
caugl le larcy ol ouyers |oo||rg lor a ||lesly|e |ler al allordao|e cosl.
O This trend has been led by NestleMunch, CadburyPerk and the most recent
entrantCDM
O shots which have immense potential to tap the rural market. The Rs.5 price point
accounts Ior
O more than halI oI chocolate sales.
O There is a change in perception Ior chocolates as a snack. It is no longer Ior a niche
but Ior the
O entire classes.
O Major Players:
O W
O Cadbury
O W
O Nestle
O W
O Amul
O W
O PerIetti
O 2.Company Analysis (Inclusive oI Current Marketing Techniques)
O W
O Main Product PortIolio:
O Cadoury 0a|ry V|||
Calegory 8rard var|arls
8ars 0a|ry V|||
!|a|r
Fru|l r Nuls
0ouo|e 0ec|er
Roasled A|rord
Cur|y
5-3lar
5 3lar
Courl L|res 5 3lar Cruc|e
V||| %real Coco|ale
0rarge
waler Coco|ale !er| !er|
!er| XL
!rer|ur/ 0|ll Coco|ales %erplal|or Rur, CaseW, A|rord & 0rarge
Ce|eoral|ors var|ous 0|ll !ac|s
O Cadbury`s Dairy Milk (CDM): Flagship Brand
O Cadbury`s Dairy Milk is the Ilagship brand oI Cadbury`s not only in India but world
wide.
O CDM is the single largest selling unit in India. It has annual sales to the tune oI Rs
200 crore.
O C0V rol or|y accourls lor 30 per cerl ol le lola| coco|ale rar|el |r va|ue, oul corrards
rear|y 2 per cerl |r vo|ure lerrs ard c|ose lo 30 per cent oI Cadbury`s annual turnover.
Vov|rg lror a predor|rarl|y adu|l pos|l|or|rg |r le days ol le |egerdary darc|rg g|r| ad, lo
le leers ard le lWeers, Wer le Cyrus 8roaca ads |l le a|rWaves, C0V as rade a
|org
sWeel jourrey. lr sp|le ol le reW calegor|es oe|rg exp|ored oy Cadoury, |ls slar orard
rera|rs
Cadoury 0a|ry V||| (C0V) W|c corl|rues lo correr a|rosl 30 per cerl ol le coco|ale
rar|el.
O Cadbury`s Temptation:
O Cadbury`s Temptation is premium chocolate brand aimed Ior high value
consumption. Various
O variants available are Almond, Rum, Cashew & Orange. Cadbury`s temptation is
priced at Rs. 40
O Cadbury`s Celebrations:
O Cadoury lrd|a |aurced |ls prer|urC elebrations rarge, W|c corla|rs lrad|l|ora| lrd|ar dry
lru|ls Wrapped |r 0a|ry V||| coco|ale. %|s g|ll|rg opl|or coro|res le p|easure ol g|v|rg
aWay dry
lru|ls W|c lrd|ars lrad|l|ora||y cors|der a prer|ur, ea|ly g|ll W|l coco|ale.
O Cadbury now has 90 per cent market share in this proIitable segment.
O Nestle and Amul are struggling to gain acceptance in this particular segment.
O Line Extensions:
O 5 STAR:
O Consumer Ieedback suggested that the old 5 Star was too chewy, and people
complained oI it
O sticking to their teeth. It was made soIter and melted easily in the mouth &
introduced as 5 Star
O Crunchy.
O 5 star Fruit & Nut also received moderate response Irom the target market.
O PERK:
O !er| Was rade ruc ||gler ard le s|ze ol le oar |rcreased lo ralc Nesl|e's Vurc. !er|
ad oeer urder l|re lror Nesl|e's dead|y duo ol K|lKal ard Vurc, oul aller le re|aurc, |ls
rar|elsare |s lWo per cerl rore lar K|lKal's. Ard, le l|ve-year-o|d orard |s roW a|rosl as
o|g as le decades-o|d 5 3lar |r s|ze, ool |r le reg|or ol Rs 50-55 crore.
O HEROES:
O Packaging innovation has played a vital role in revamping oI various Cadbury`s
brands.
O Heroes brand is simply a multi-pack with miniatures oI all its most popular brands in a
single
O outer case.
O New Product Launches:
O Rich Dry Fruit Collection
O (For GiIting Festive Season)
O Cadoury Ce|eoral|ors' R|c 0ry Fru|l
Co||ecl|or - a rarge ol prer|ur
coco|ale g|ll ooxes.
Ava||ao|e |r allracl|ve pac|s, le Co||ecl|or calers lo a prer|ur g|ll|rg corsurer ard |s ar
|dea|
lesl|ve g|ll. ll |s a ur|que coro|ral|or ol le oesl Cadoury coco|ale ard prer|ur dry lru|ls
ard
cores |r lour d|llererl lorrals eac ol W|c |s a r|x ol se|ecl prer|ur dry lru|ls errooed |r
r|c Cadoury 0a|ry V||| coco|ale.
O Cadbury Desserts
O 'Ior sweet moments aIter dinner
O Rs. 20/- per packet oI 44 gms
O Cadoury 0a|ry V||| (C0V) 0esserls - W|l r|c |rdu|gerl crere cerler, |r exol|c & lrad|l|ora|
l|avors ol %|rar|su ard Ka|a|ard. C0V 0esserls oller le perlecl rourd|rg oll lasle, aller
rea| lal adds spec|a| 'Veela' rorerls lo le lar||y. %e r|c lasles ol C0V coro|red
W|l le ur|que crere cerler |r exol|c l|avors prov|de a spec|a| coco|ale exper|erce. C0V
0esserls add de||gl lo le aller-rea| rorerls, espec|a||y W|l le corsurers Wose
currerl co|ce ol sWeels rarge lror ore rade de||cac|es lo lru|ls lo reela|.
O CDM Shots
O %0: Rura| lrd|a
Rs.2 lor a sra|| pac|
C0V sols Were |rlroduced W|l a s|rg|e oojecl|ve: To penetrate the rural market.
O Priced at rupees two these products explore the happiness experienced in everyday
thus
O providing the reason to have chocolates every day.
O Pricing:
O AIter the roaring success oI Nestle`s Munch and Chocostick, Cadbury`s empire
struck back hard.
O The Rs 5 price point accounts Ior more than halI oI all chocolate sales.
O Nesl|e ad se|zed le |r|l|al|ve al l|s pr|ce po|rl, W|l |ls |aurc ol Vurc, roW a roar|rg
success (ard le |argesl se|||rg producl al lal pr|ce po|rl). %oday, Cadoury as lour
producls al
l|s pr|ce po|rl: C0V, !er|, 5 slar ard 0ers ard le Iive-rupee CDM bar is its single
O largest-selling SKU.
O 'This is a potent price point in India, because the average purchasing power is abysmally
O Low Industry Analyst.
O Nestle kicked oII one oI the biggest success the liquid chocolate category with its
brand
O Chocostick priced at Rs.2 three months ahead oI competition. Cadbury did react with
Chocki,
O priced at Rs 2, expanding the concept oI sachetisation to new Irontiers. Chocki has
been the
O single biggest growth driver Ior Cadbury as well as the entire chocolate category. T h e
O novelty oI the Iormat endeared itselI to the existing customer. In less than one year,
it constituted
O nearly 10 per cent oI the total chocolate market, split equally between Cadbury and
Nestle.
O CDM shots which was recently released in March has again taken a sizeable market
share.
O Volume led growth strategy
O Cadoury as lo||oWed a We||-p|arred slralegy ol lue|||rg vo|ure groWl oy |rlroduc|rg
sra||er
ur|l pac|s al |oWer pr|ce po|rls. 3|ru|lareous|y, le corpary seers lo ave aslule|y jugg|ed
W|l le |arger pac| s|zes ard ra|sed pr|ces lo a degree |ger lar Wal appears al lace.
%e
slralegy as dr|ver vo|ures |r le |asl lWo years ard We expecl le vo|ure groWl lo
corl|rue |r
le rexl lWo years.
O Distribution:
O Coco|ale reeds lo oe d|slr|ouled d|recl|y, ur|||e oler FVC0 producls |||e soaps ard
delergerls, W|c car oe so|d lroug a Wo|esa|e relWor|. 90 ol coco|ale producls are
so|d
d|recl|y lo rela||ers.
O Distribution, in the case oI chocolates, is a major deterrent to new entrants as the
product has
O to be kept cool in summer and also has to be adapted to suit local tropical
conditions.
O Cadoury's d|slr|oul|or relWor| used lo ercorpasses 2100 distributors ard 450,000 retailers.
%e corpary as a lola| corsurer oase ol over 5 r||||or. 8es|des use ol l% lo |rprove
d|slr|oul|or |og|sl|cs, Cadoury |s a|so allerpl|rg lo |rprove d|slr|oul|or qua||ly. %o address
le
|ssues ol producl slao|||ly, |l as |rsla||edcoolers al severa| oul|els. %|s e|ps |r ra|rla|r|rg
corsurpl|or |r surrer, Wer sa|es usua||y d|p due lo le lacl lal le eal allecls producl
qua||ly ard lereoy ollla|e.
O To avoid cannibalization oI its higher priced products Irom lower priced ones,
Cadbury is
O sell|rg up lWo separale d|slr|oul|or carre|s - ore lorC las s es & oler lorMas s es,
W|l d|llererl sloc||sls, Wo|esa|ers ard rela||ers. 0re sel W||| oe ded|caled lo Cadoury's
|g-
erd producls ard lrad|l|ora| coco|ales.
O Promotion:
O %yp|ca||y |l |s sa|d lal coco|ales are oe|rg ealer Wer everyore |s appy. Ard l|s |s
sorel|rg adverl|s|rg as a|Ways porlrayed. 8ul |l |s lourd coco|ales are ealer urder
d|verse
cord|l|ors ard roods - Wer peop|e are arx|ous, Wer ley are sad, Wer appy - a Wo|e
rarge ol erol|ors. Corders|rg lese v|eWs & lougls, |l car oe sa|d coco|ale |s a lrues oul
O mate. Someone who is with you through the ups and downs oI liIe, helping you
bounce back.
O And that's what Cadbury's Dairy Milk (CDM) positioned itselI as - a special Iriend.
O Branding
O Share oI various Brands Ad spending oI Cadbury
O lere, le Cadoury orards soWr |r le grap corpr|se 85 ol le adverl|s|rg p|e,
Wereas,
resl ol le 9 orards adverl|sed oy Cadoury corpr|se 15 ol le adverl|s|rg. Cadoury 0a|ry
V|||
Coco|ale |s le rosl adverl|sed orard (W|l 22).
O RE-INVENTING CABDURY
O 'Kya Swad Hai Zindagi Mein redeIined the way Indians looked at Cadbury
O Coco|ales. (%e correrc|a| soWed a oeaul|lu| yourg |ady overcor|rg a|| ooslac|es or le
cr|c|el grourd, cross|rg oourdary, Walcrar, secur|l|es ard erorac|rg er |over Wo Wor
le
gare oy |ll|rg a s|x). %|s lere |rlroduced |r arourd r|d 90's oougl |rslarl groWl lo
Cadoury's 0a|ry V|||. %e Ad carpa|gr rar successlu| lor aooul lour years ard |rrersed
deeper |rs|de earls ol lrd|ars.
O %e adverl|sererl a|red al corvey|rg le |dea lal ro spec|l|c occas|or |s requ|red lor
corsur|rg C0V. %|s Was a s|gr|l|carl deparlure lror ClL's slralegy ol appea||rg lo adu|ls
|r
lrd|a, Wo sougl a ral|ora| jusl|l|cal|or lor |rdu|g|rg |r coco|ale corsurpl|or.
O The amazing divergence oI advertising can be seen in Cadbury. The ironic part is
that the
O advertisements have catered to every segment without tarnishing its brand image.