Marketing Management I

Project Presentation on Cadbury

Submitted By :
Group - 6
AnirudhK M
Dinesh M Krishna
Jatin Balani
Kunal Nagpal
Piyussh
Raghu Arun T V N

- 1401066
- 1401072
- 1401078
- 1401084
- 1401090
- 1401098

Strengths

Weakness

Low cost of production due

to economies of scale.
High Brand equity, recall
and brand loyalty.
Strong distribution network.
Strong R&D and innovation.
Strongest promotions in the
FMCG industry like Kuch
Metha Ho jaye

Poor technology in India

compared to other
countries.
A few cases on product
recall which can hamper
brand image. The quality
control needs to be
strengthened.

Threats

Opportunities
Increasing gift culture where
celebrations are substituting
Mithai.
Penetrating rural markets.
Adding new flavours and
tastes to its product line along
with nutritious bars for health
conscious segment.
Growing base of affluent

Raise in distribution costs

and raw material costs .
Threat of new entrants due
to globalization.
Increasing health
consciousness among
people.
High price elasticity.

Business
Growth Rate

H
i
g
h

BCG Matrix for CADBURY

INDIA

L
o
w
High

Market Share

Low

PEST ANALYSIS
Political
Stable government
Liberal trade policies and
regulatory reforms.

Economic
Growing middle class/urban
population which leads to
increase in demand.
Inflation remains a worry.

Technical
Social
Increasing gifts culture- increase in Established a tie-up with Reliance web
world wherein, when students checked
demand.
their exam results via Reliance mobiles,
Per capita income in India
they were shown a Dairy Milk
expected to increase
advertisement. This effort was awarded
the Bronze Lion at the Cannes Media
awards in 2005.
It has to update the current
technology in order to face the

Behavioral

Segmentation

Loyalty towards Cadbury

chocolates e.g. Cadbury is
synonymous chocolate with in
India.
Benefit segmentation on dark
chocolate benefits.

Age and Life-cycle

Products are segmented based on
age e.g. Gems are targeted
towards children but temptation
targeted towards adults.

Occasion segmentation
Cadbury Celebrations gifted on
occasions / festivals.

Psychographic

Based on personality
segmentation. E.g. Bourneville
you earned it .

Demographic

Based on consumer class /

income group. E.g. Cadbury
Temptation and Bourneville are
targeted towards high end
customers targeted in high-end
retail outlets, hotels, airports,
departmental stores.

Impulse Segment

The brand recall of Cadbury

ensures impulse buying by
consumers

Targeting
Evolution of Cadbury brand from a childs delight to a targeted youth

segment.

Targeting children through Bournvita Quiz Contest which made a perception

that bournvita helps in increasing IQ.

B2B marketing on occasions and festivals such as Diwali gifting for

corporate

Targeting Rural population through temperature tolerant products such as

Cadbury shots which are priced as low as Rs 2 .

Positioning
Chocolate Kids product

Cadbury Expression of Lov

Positioning
Cadbury Celebrating Occasions

Positioning
For kids Cadbury Gems/5 star/Dairy
milk wowiee is synonymous with
chocolate
For youth, Dairy Milk and Temptations
are positioned as expression of love
For chocolate lovers, Bourneville is
positioned as quality dark chocolate
(best cocoa from Ghana)
For high indulgence category,
Silk/Temptations is the go to product
For families Cadbury celebrations are

Perception Map of
Cadbury Products
No Products Here

Perception map of Indian Chocolate

Industry

Health
Benefit
Sweet Delicacy
s

Celebrating Culture,
SemiRelationships
Divided

Core
Mood
Enhanceme
nt

Hunger
Snack
Convenien
ce Product

Rectangul
ar Bars

Actual

Golden
Foil

Augment
ed
Purple
Packagi
ng

Iconic Cadbury
Brand

Branding
Dairy Milk Projected as a Milk Product Ad Campaign,
Packaging, Taglines
Say what you see
Positive association
and build on the joy
factor

Trying to replace sweets

from desserts with
campaigns like Meethe me
kya hai and Kuch Meetha ho
jaye

Part of every celebration Diwali,

Rakhshabandhan, Campaigns like Pappu
paas ho gaya

Pricing Strategy
Price is the only P in marketing mix which generates
revenue.
Cadbury product line pricing ranges from 0.50 paisa to
600 rupees.
Cadbury being a market leader with 70% market share in
chocolate industry, It is mostly following a cost plus pricing
strategy for its products with approximate margin of 20%.
This pricing strategy has disadvantages as it is subjected
to variation in the prices of raw materials and distribution
Weigh Price(in
t(in
rupees)
channels. But Cadbury might find it easier to absorb
the
grams
rise in input costs with its products at different)prices.
Cadbury responds to increase in cost of raw materials
17
10
cost by
60
60
160
150
selling at the same price but reduction in the weight
of the

TABLE TO ILLUSTRATE DIFFERENT

CATEGORY PRODUCTS AND PRICES
Cadbury
product

Weight in
grams

Price(in
rupees)

Bournvita
Oreo
Gems
Bournville-Rich
cocoa

1000
120
21.36
44

370
30
15
40

Cadbury follows income based segmentation.

In order to cater to customers in all income
levels, Cadbury prices its products in
different price ranges.

Promotion
Advertisements aimed at conveying the idea No specific occasion is required for eating Cadbury
chocolates.
In every adult, there is a child(The Real Taste of
Life- launched in the 90s attempted to capture the
child like spontaneity in every adult).
Celebrities Endorsements
1. Preity Zinta -Perk(To rope in teens)
2. Amitabh Bachchan -The Big B factor.

Custome
r
Promotio
n

Samples- A unit of Oreo

with Bournvita
Contest-Bournvita kid
contest

Trade
Promotio
n

Shop Banners
Speciality Advertising
Items-Shelves displaying
Cadbury logo

Business
Promotio
n

KBC painted in Cadburys

Colour(Purple)
Convention and trade
shows

Pus
h

Cadbury Halls

clairs
Dairy Milk
5-Star
Perk
Celebrations

Pull

Social Media Marketing

#FirstLoveIs campaign
To promote its newly
launched limited edition
pack.
#MeethiMemories - by
Cadbury Celebrations
has created a recall in
the minds of its
customers by giving
them a little bite of the
brand in form of an
illustration.

Cadbury
Celebrations is
positioning itself as
a brand that is
spreading joy!- by
integrating its
online and offline
campaigns Iss
Diwali Aap kisse
khush karenge.

Placement
Cadbury Follows Multichannel distribution system.
Retailers:
Business
Business
Segments
Big Segments
Bazaar

It has an intensive distribution network

Recommendation
Maintain the leadership in the market by
having a superior marketing mix. Include
new products for health conscious
customers. Such as Dark Chocolates.
It should continue to promote itself as
substitute to mithai.
Develop a B2B strategy with hospitality
industry by supplying them with Big
chocolate bars.
Observing the perception map and the
results of our survey, We recommend
Cadbury to add a high premium snack
category which is nutritious healthy.

Survey
Do you think Dark
Chocolates are healthy ?

25% 17%
5%
10%

43%

Totally Healthy
Moderatelt
Healthy
No effect
Unhealthy
Don't Know :(

Thank You