Cadbury Dairy Milk_Marketing Assignment

CADBURY DAIRY MILK

Presented By: Zoeb Eisa

Lourdes Soares

Dilip Mathew

Ajay Kumar

Nikhil Chitalia

Srikanth Erraballi

Rabisankar Mahali

Harmanpreet Kaur

Introduction •

Cadbury Dairy Milk is a brand of chocolate bar made by the Cadbury unit of Kraft Foods.

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Introduced in 1905, but it came to India in 1948.

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Today it has five company owned manufacturing facilities at Thane, Induri (Pune), Malanpur (Gwalior), Bangalore & Baddi (Himachal Pradesh) and four sales offices.

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Cadbury is the market leader in the Indian market.

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Cadbury is the fourth largest supplier of chocolate and other sugar confectionaries in the market.

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In India it has the largest share of the market with more than 60% of the Indian Market.

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Out of which, half is contributed by the company leading Brand „Dairy Milk‟.

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The billion-dollar brand Cadbury Dairy Milk is considered the "gold standard" for chocolates in India.

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Cadbury Dairy Milk emerged as the No. 1 most trusted brand in Mumbai for the 2005 edition of Brand Equity's Most Trusted Brands survey.

Important Facts •

Cadbury Dairy Milk is sold in over 30 countries across the globe.

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A bar of CDM is sold around the world every 2 seconds.

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Every year enough CDM is sold to wrap the world 4 times.

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Besides Cadbury Dairy Milk, Fruit & Nut and Whole Nut are two of the best loved varieties .

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The largest chocolate bar in the world - a giant block nearly 9ft high, 4ft wide and weighing 1.1 tons - was made by Cadbury Dairy Milk in 1998.

Company Analysis Strengths

Weakness

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The Market Leader

 Has not been able to standardize its operation

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Worldwide operation

 Target population is quiet large

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Good human resource policies

 Declining market demand for chocolates

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Heavy investment in technology

 Distribution System

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Strong management team

 Threat of change of the current external environment

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Good market reputation

Macro level market (Industry) analysis •

The confectionary industry in India is in its growth stage.

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The confectionary industry is divided into the flowing specific industrial sectors: Chocolate(25%), Hard-boiled candies(18%), Éclairs and toffees(18% ), Lollipops(13%), Chewing gums, Bubble gums(13%), and Mints and lozenges (13%)

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The total confectionary market is about 41 billion and total turnover of 223500 tons which is equal to that of established markets

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The urban market constitutes about 73 % and rural market 27 %of the total market.

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Rural market has not been well tapped . With more than 50 percent of the Indians living in the rural areas, it means that there is a high potential in the rural market.

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However chocolate has recorded the highest market growth rate recording about 23 percent.

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However the overall sugar confectionary segment in the Indian market has been declining with a total decline of about 19 percent recorded in 2007.

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Cadbury is also the leading player in the milk beverage segment which has been growing at a rate of 10.1 percent.

Competition Analysis •

There are not many competitors in the confectionary industry that Cadbury has to compete with in the Industry.

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Cadbury is a market leader in the industry.

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The other competitors are small compared to Cadbury and therefore the level of competition is expected to be a bit low.

Product Analysis Company produces a number of products including: • Dairy Milk, Perk, Gems, 5 Star, Celebrations, Bytes, Dairy Milk Éclairs, Éclairs Crunch, Mr. Pops, and Halls brands.

In the milk beverage section, the company produces: • Cadbury’s Bournvita & Cadbury 5 star Magic.

Market Opportunities

Current Opportunities. Untapped female market segment. Uncovered Rural Market. Online sales. Improving distribution quality.

Market Issues Consumer Behaviour Issues • Brand recognition in a competitive marketplace. • Changing knowledge content and structure of existing brands and products. • Potential miss-categorization of new offerings. • Achieving and maintaining positive consumer attitudes for new products.. • Understanding consumer‟s cognitive decision making models for purchases.

General Issues

Potential Future Opportunities • Growing chocolate and the general confectionary market in India. • Online products offering to specifically targeted market .

• Negative publicity and protests by loyal Cadbury fans. • Intense competition from major U.S. brands . • Direct marketing problems.

Health Issues • Consumer‟s wish to weigh less and stay fit. • Health conscious market.

Objectives The common aim and objectives of the corporation such as Cadbury includes the following: 

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Specific: Not vague statements

Survival- Sustain market share over the year through product innovations in product development, packaging.

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Measurable: Quantitative and verifiable

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Agreed: With those concerned

Profit maximization- Grow shareholder value over the long term and which is often taken to be the reason why firm exists.

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Realistic: and achievable

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Time Related: to be achieved within a specific time period.

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Growth-Includes Cadbury selling new products or expanding overseas.

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Diversification- Spreading of business risks by reducing dependence on one product.

 Marketing objectives: to increase market share

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Sales maximization- Increasing of sales.

 Production objectives: to increase production

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Improving the product image-Includes creating a new logo or launching a new brand of product and creating more attractive packaging.

 Corporate objectives: to grow the company

 Promotional objectives: Increase brand awareness  Pricing objectives: to be cheaper than competitors.

Marketing Mix Product

• Good Quality (Ingredients) Cadbury Dairy Milk for the Indian Market • Packaging and Design • Sizes

Price

• Cadburys dairy milk has the strategic vision of “One Cadbury in every pocket”. • Dairy Milk is available in the price range of Rs.5 to Rs.60 and the price varies with the pack size. • Cadbury has priced its products in such a way that even a person from the low income group could afford a Dairy Milk. Dairy Milk is widely accepted across all income groups.

Place

• Cadbury‟s products are available in over a million outlets across the country. • Cadbury's distribution network encompasses 2100 distributors and 450,000 retailers. The company has a total consumer base of over 65mn. • Cadbury has improvised the quality of its products sold at several points by installing refrigerators at several outlets. • Cadbury has always been in the forefront when it came to promoting its brand value.

Promotion

• Few commercials by which Cadbury promoted its brand value: “ Aaj Pehli Tarikh Hai”, "ShubhAarambh“ & "Kuch Meetha Ho Jaye".

Segmentation & Target Market Demographic Segmentation Age Gender Income

 The targeted customers of Diary Milk have been changing from time to time and advertisement to advertisement.

Note: Generation Difference will not play a crucial rote in deciding the target Market.

 Cadbury Dairy Milk is considered to be a desert for the whole Family and not only for Kids.

Behavioral Segmentation Decisions  Occasions

 It appealed to the child in every adult.

 The target Market changed from Kids to everyone but still children and Youth are the main Target Markets.

Geographic segmentation

‘Target Market is not Kids BUT the Kids in all of us’

Positioning  Cadbury Dairy Milk is considered to be the perfect expression of love, family, friends, etc.

 Cadbury India with its products Gems, Five Star, Celebrations and Dairy Milk come in the Star Category.  The chocolate market in India is pegged at approximately Rs. 2,000 crores and growing at 18-20% per annum with Cadbury having a 70% share and Nestlé India Ltd around 20%, according to a December 2011 report by Technopak Advisors Pvt. Ltd.  With high growth rate and High Market share, Cadbury India Ltd is the leader in the Chocolate Segment.

BCG MATRIX

Marketing Strategy •

Cadbury‟s strategy to attract consumers is unique. Instead of focusing on the product, it seeks to tap into emotions normally associated with chocolates.

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One of the marketing strategies used by Cadbury in India was introducing Cadbury as an after dinner sweet.

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Advertisements as well as the correct Target Market were the reason of successfully portraying Cadbury as an after Dinner sweet.

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Another reason for Cadbury being such a successful brand was that it aimed at replacing the traditional sweet custom so prevalent in India.

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Indians have the habit of carrying sweets as gifts when they visit a friend or relatives.

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Cadbury items became the new sweets.

Marketing Challenge

 To expand the consumer base by making Cadbury Dairy Milk desirable to the adult segment as well as the younger segment.   Dairy Milk chocolate was always perceived to be meant for ‘kids’.  This led to stagnation of the ‘Cadbury Dairy Milk’ brand in the eighties.  With communication continuously addressing kids, consumption got resulted with the same segment resulting in stagnation.

Different Campaigns to Support the Marketing Strategy • Campaign 1 Campaign: Real Taste of Life Target : Just for kids' to the `kid in all of us„

• Campaign 2 Campaign : „Khanewalon ko khane ka bahana chahiye‟ Target: Widening chocolate consumption among the masses

• Campaign 3 Campaign: „kuch meetha ho jaye‟ Target: To associate Cadbury with celebratory occasion.

Other Campaign  Campaign: Pappu pass ho gaya Target: Encourage those who have passed the exams to celebrate with Dairy Milk.

 Campaign: Aaj Pehli tarikh hai Target: The celebratory occasion of payday, which is an important event in the life of every middle-class Indian.  Campaign: Shubh Arambh Advertisement Target Audience For a new beginning in one‟s life 

The only way to recover was to change the marketing strategy and apart from targeting children even adults were targeted.

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The advertisements and the message they were giving to the audience clearly supported this marketing strategy.

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From targeting only Kids, even adults were targeted and were part of the Marketing Strategy.

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Each and every advertisements above shows their different Market Strategies.

Review & Control

Marketing Organization

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Budget

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Structure

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Profitability

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Systems

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Efficiency (Productivity)

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Style

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Strategic Decisions

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Staff

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360 feedback appraisal system

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Skills

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Specialist training courses

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Shared Values

Contingency Plan •

Launch of low priced products.

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Improving distribution quality by addressing issues of product stability by installation of visi coolers at several outlets.

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New channel of marketing such as gifting for expanding the consumer base have been identified.

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Right advertising campaigns were used to bring about the desired change in behavior of target audience.

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Efficient sourcing of key raw material i.e. COCOA

Thank You…