cadbury final

CADBURY DAIRY MILK ECLAIRS

BRAND STUDY

Cadbury Dairy Milk Eclairs

SUBMITED BY-

ANINDITA CHATTERJEE PGDM-108

VIKAS GAUTAM PGDM-111

PRAKASH MATHAI PGDM-128

NEHA MENDIRATTA PGDM-129

DRON SHARMA PGDM-147

UMA MADUREY V PGDM-157

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ACKNOWLEDGEMENTS

With profound sense of gratitude, we record our sincere thanks to Dr. Monica Khanna (Course

Coordinator) for her keen interest and infallible advice. She provided full support and extended

all possible amenities to facilitate successful completion of our project. But for her valuable

guidance, astute judgment, constructive criticism and an eye for perfection, our brand study for

Cadbury, a huge learning experience, would not have been this successful.

We would also like to thank Mr. Arpan Sur (Brand Manager-Cadbury Dairy Milk Éclairs), who

despite his hectic schedule, provided full support and equipped us with an in depth knowledge

of the brand and cooperated in every aspect.

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CONTENTS

Part A

OVERVIEW

Company

Market Share & Revenue………………………………………………………….5

SWOT ANALYSIS............................................................................................6

CADBURY DAIRY MILK ECLAIRS…………………………………………………………………..7

MARKET SEGMENTATION

Product Based..........................................................................8

Price Based……………………………………………………………………………9

Customer Based…………………………………………………………………..10

POSITIONING STRATEGY…………………………………………………………………………11

Positioning of Cadbury Dairy Milk Éclairs………………………….….14

DISTRIBUTION MANAGEMENT……………………………………………………………….16

PRICING STRATEGY…………………………………………………………………………………16

ADVERTISING & BRANDING STRATEGY………………………………………………….17

MARKETING ENVIRONMENT FOR CADBURY………………………………………….18

THE WAY FORWARD FOR CADBURY………………………………………………………21

Part B

INTERVIEW WITH BRAND MANAGER, Mr. ARPAN SUR…………………………22

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OVERVIEW

Overview Of The Company

Cadbury plc is a British confectionery and beverage company with its headquarters in London,

United Kingdom, and is the world's largest confectionery manufacturer. In India, Cadbury began

its operations in 1948 by importing chocolates. Their Core purpose-Creating brands people

love, and slogan- We spread happiness!!! The flagship brand Cadbury Dairy Milk is considered

the "gold standard" for chocolates in India. The pure taste of CDM defines the chocolate taste

for the Indian consumer.

Fig: Range of Brands for CADBURY

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Market share and Revenue

Cadbury controls more than 70 percent of the chocolate market in India with a presence in 1.2

million stores; Cadbury's total annual revenue in India is about 200 million pounds.

Fig: Presence of CADBURY as percentage share in various products

Profits in its Indian business grow at about 30 percent a year and sales at 20 percent, in spite of

the global recession.

The future mission of Cadbury India is 'A Cadbury in Every Pocket'. The company's business strategy

hinges on following for driving its future growth:

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

Increase depth of consumption, targeting regular chocolate consumers through generating impulse and

a dominant presence at Point of Sale.

Maintain image leadership through a superior marketing mix.

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

Build critical mass in the sugar business by introducing value-added sugar confectionery products.

The company manufactures and sells the following Brands:

Chocolates - Dairy Milk, 5 star, Perk, Eclairs, Bournville

Gums – Bubaloo

Candies- Halls

Malted foods- Bournvita

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Drinking chocolate and malt extract – Cadbury Drinking chocolate

SWOT Analysis of Cadbury

SWOT Analysis

Strengths:

Strong brand names like Cadbury Dairy Milk, Five star and Eclairs.

Rich product mix.

Control of 70% of Indian chocolate market. Growth at 30% despite recession.

Extensive distribution network.

Customization of products and promotion according to India.

Great managerial talents.

Weaknesses:

Lack of launch of new brands in Chocolates segment.

Opportunities:

The Indian market and more specifically the urban areas where the penetration of Chocolates is

low can be developed as a future market through affordability and availability.

Using information and technology to bring efficiency in logistics and distribution.

Threats:

Stiff competition in Confectionery segment.

The company has large exposure to foreign currency exchange rate risk, mainly on account of

imported cocoa beans and cocoa butter in US Dollar and Pound Sterling.

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Cadbury Dairy Milk Éclairs

Éclairs was first discovered by a local confectionery firm in London, England in the 1960s. The

firm then became part of Cadbury in 1971 making Cadbury Éclairs the second largest brand in

the company. The experience of eating a Cadbury Dairy Milk Éclair is truly unique because of its

creamy caramel exterior and rich Cadbury Dairy Milk chocolate at the centre. In 2006 Cadbury

Dairy Milk Éclairs launched a crunchy Éclair with a hard caramel outside and delicious Cadbury

Dairy Milk chocolate inside called Cadbury Dairy Milk Éclairs Crunch.

Fig: Product Variants

Facts about CDME :

One of the power brands of Cadbury

No. 4 among Bourn vita, dairy milk, 5 star and Perk

Oldest brand of Éclair chocolates – was started in 1971

It was the first of its kind, which helped set a competitive format and create a brand image.

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MARKET SEGMENTATION FOR CADBURYS

PRODUCT Based segmentation

SOURCE: From Mr.Arpan Sur, Brand Manager , CDME

DIFFERENT PRODUCTS OF CADBURY AND ITS DIRECT COMPETITORS

CATEGORY CADBURY PRODUCT COMPETITORS

MALTED FOODS BROWN-BOURNVITA BROWN-

BOOST,COMPLAN,MILO

WHITE- HORLICKS

PURE AND BAR CHOCOLATES DAIRY MILK,5

STAR,BOURNVILLE

KIT KAT,MILKYBAR,NESTLE

MILK CHOCOLATE,BAR ONE

WAFER COATED CHOCOLATES PERK MUNCH

TOFFEES CARAMEL/OTHER FILLING- SOLID FILL-NUTRINE

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MARKET

MALTED FOODS

BROWN WHITE

CONFECTIONARY

CHOCOLATES

PURE & BAR CHOCOLATES

WAFER COATED TOFFEES

SOLID FILLING

CARAMEL\OTHER FILLING

GUMS CANDIES

DRINKINGCHOCOLATES

SNACKS


ECLAIRS MAHALACTO,PARRY’S COFFEE

BITE,MELODY

CARAMEL /OTHER FILL-

ALPENLIEBE

HARD BOILED CANDIES-

POPPINS

GUMS BUBALOO CENTER FRESH, BOOMER

CANDIES HALLS VICKS,STREPSILS.CHLORMINT

DRINKING CHOCOLATES CADBURY DRINKING

CHOCOLATE

NESCAFE,MILO START

PLUS,NESTLE CAPPUCCINO

SNACKS BYTES KURKURE,LAYS,BINGO

As can be seen that Cadbury is getting tough competition from Nestle, perfetti, and Smithkline

Beecham products in all categories.

PRICE Based Segmentation


50p + Solid – Coffee bite, Alpenlibe etc

Re 1 + solid – non existent

50p + filling – Nestle éclair, local brands

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Eclairs

Price

50p Re 1

Filling

Solid Caramel\other filling


Re 1 + filling – Cadbury Dairy Milk Éclairs(CDME)

CUSTOMER based Segmentation


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Chocolate\candy consumers

Kids - below 14 Teens Adults


POSITIONING STRATEGY

The theme behind Positioning of Cadburys chocolates in the psyche of Indian customer was to go out

and occupy a distinct space in the consumer's mind, and if you are able to occupy a distinct space in

the consumer's mind then it become very difficult for a competitor to dislodge you. And it might be

easier done if one is able to capture a word in the consumer’s mind which already exists; in the case of

Cadburys that word is "Meetha" a generic to represent all and any kind of sweet.

Range of Cadburys chocolates especially Cadbury dairy milk have placed themselves as the

most delicious,best tasting chocolate, “A Moment Of Pure Magic”.

Cadbury Dairy Milk (CDM) encapsulates an enormous breath of emotions, from shared values

such as family togetherness (fun, wholesome, reliable), to the personal values of individual

enjoyment. It stands for goodness.

The challenge in the Indian market was to get people accustomed to chocolates primarily seen

as western taste.Cadburys did so by reaching out to the masses in a aland where mindsets and

preferences are as diverse as the country itself.

Back in the 80’s the brand positioned itself as ‘The perfect expression of parental love’. The

chocolate goodness(appetite appeal) was being harnessed.Tag lines like ‘Sometimes a Cadbury

can say it better than words’ made it more popular.

In the early 90’s the following issues led to brand stagnation

Chocolate are meant for kids only

Seen as an indulgence product

Negative associations

o Too much was bad

o Bad for health

Seen as a western product

The challenge was to re position the brand and to expand the consumer base by

making Cadbury aspirational and desirable to the adult segment.

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The communication task was to increase category relevance, give consumers a taste of life the

Cadbury Dairy Milk way - real, fun and free and to Integrate the "real" chocolate of Cadbury

Dairy Milk to "real" feelings.

Cadbury exploited the “ I wanna Break Free” syndrome prevalent after globalization at that

time to position itself as the market leader.

The Big Idea-Cadburys chocolate-The chocolate for the kid in all of us.The communication- The

real taste of life.

Brand Positioning- CDM is the perfect expression of spontaneous, happy, joyous feelings.

Eating CDM provides the ‘Real Taste of Life’ experience.

The “Indianisation” of the brand-To increase width of consumption by entering the Indian

mind-space - Make CDM part of Indian customs and mores.

THE TWIN PLATFORMS

For Regular users

Position CDM as the gold standard in taste amongst chocolates

Creative Idea

I will do anything to eat my CDM

For Infrequent users

Position CDM as the chocolate meant for everyone

Chocolate = CDM

Creative Idea

You don’t need any special reason to eat CDM

COMPETITIVE ENVIRONMENT

Influx of several brands at various price points offering greater perceived

value

While attitudes towards chocolates softened, consumers flirted with options

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THE CHALLENGE

Reinforce pre-eminence of the brand

THE EXECUTION

Range of new, international pack formats – a CDM for every need.

For Connoisseur

o Bournville

o Fruit & Nut

Gifting - Gift packs

In-home consumption

‘Muh Meetha Karna’

COMMUNICATION

Reinforce relationship of brand in the consumer’s life.

Consumer speak

o I eat CDM when I am happy, sad

o CDM is always there with me

o ‘CDM mere mun mein rahata hai’

o CDM is almost like an ideal companion

The Brand Belief

o CDM is the best tasting chocolate - a moment of pure magic

o CDM is chocolate, the others are simply makes of chocolate

Presently Cadburys chocolates enjoy excellent image - that of an indianite, festival sweet, that can be

used to celebrate anything and anytime. The exquisite packaging and the heavenly taste add to this

image.”Kuch Meetha Ho jaye” campaign has positioned Cadburys as the ultimate sweet for all

celebrations.

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POSITIONING OF CADBURY DAIRY MILK ECLAIRS

There are three main positioning buckets

1. Engaging -it experience – make consumers take it when they are taking a break from studies

2. Unobtrusive natured products – accompanies what you are doing

3. Taste\flavour

CDME belongs to the 1st bucket.

BRAND IMAGE

Éclair is considered to be premium among all the éclair\candy brands. Customers describe it as “teeny,

youthful, funny, and slightly naughty”.

TARGET GROUPS OF ECLAIRS (CUSTOMER WISE)

The target group for CDME can be segregated into mainly 3 basic groups’ viz. kids, teens and adults as

shown in the figure below. Their main area of revenue is the teens and hence the main area of focus

too.

SOURCE: From Mr.Arpan Sur, Brand Manager, CDME

Fig: Target Customers

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CDME’s share :

The market share in each of the segments is as mentioned below:

50% of value from teens

40% from kids

10% from adults

They target teens because:

It’s the biggest market for candy.

Have more buying power due to increased income\society norms

They want to appear older, and prefer products that make them look older

Because of Cadbury being very popular among this age with other offerings also.

DISTRIBUTION MANAGEMENT

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Cadbury has its own set of distributers and super stockists who sell to wholesalers and retailers. The

distribution hierarchy of Cadburys is huge as it is present across India. Their hierarchy is well

distributed among the rural and the urban India as shown below:

PRICING STRATEGY

Pricing is one of the most important reasons for the success of éclairs. It is available in the market in

two variants one at the price of 50p and the other at the price of Re The biggest competitor that éclairs

has at the moment is Alpenlibe which is currently priced at 1 giving the 50p éclairs a distinct advantage

over the latter.

a. 50p + Solid – coffee bite, alpenlibe etc

b. Re 1 + solid – non existent

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Cadbury India Distributor

Small towns - Superstockist

seller at town A

seller at town B etc

Cities - Wholesalers

Smaller wholesalers

Retailers

Consumers

Chocolibe Alpenlibe Eclairs

Re 1 Re 1 Re 1 50 p


c. 50p + filling – nestle éclair, local brands

d. Re 1 + filling – CDME

Advertising and Branding Strategy

Eclairs’ advertising over the years has talked about the mesmerizing taste of Éclairs because of the

Cadbury Dairy Milk chocolate it contains at its centre. The 'Kar De Dil Pe Jadoo' campaign illustrated

this in a youthful college context. The Éclairs Crunch variant has also had an encouraging response

from both teens and pre-teens. Currently, the chewy and the crunchy variants are both enjoyed by the

Éclair consumer.

Current marketing Strategies

Advertisements have always been used as the biggest method for éclairs to come and stay at the top.

Even in a market that de-grows at a rate of 3% every year it’s the advertisement that has kept it ahead

of the The latest advertisement to hit the market is that of the “Chocolate ka meetha bomb” – to

accentuate the new and improved éclairs bursty, chocolatey goodness. Cadbury with its latest offering

are also increasing their presence on internet by displaying MEETHA bomb messages through an

application on orkut.

With the upcoming festival season in India they are planning to increase the share among adults by

promoting the Cadbury éclairs gift packs for festive occasion with their highly successful “kuch meetha

ho jaye” campaign. Apart from this they are also exploring the idea of launching a premium product for

Rs 2 in the Indian market.

Marketing Environment for Cadbury

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Economic Scenario: India, Bharat & the Macro-environment

Real average household income has doubled since 1985. 12th largest consumer market right now will

become 5th largest consumer market by 2025. Middleclass will swell from 50 million in 2005 to 583

million in 2025. Real rural income growth per household will accelerate from 2.8% over the past two

decades to 3.6% over the next two decades. Indian spending patterns will also evolve; spending on

basic necessities will decline in relative importance, while spending on communication and healthcare

growing rapidly. Estimations are that 80% of the consumption growth will come from increasing

incomes, 16% will come from increasing population, while only a 4% will come from changes in

household savings pattern. Current scenario; 57% of consumption is rural and 43% is urban. But by

2025; 62% consumption will come from urban areas and rest rural. This is because in future more rural

towns will get classified as tier 2 or 3 cities.

Competitors, Confectionaries and the Micro-environment

Cadbury has been voted the Reader’s Digest Most Trusted Brand by consumers of Australia and New

Zealand for five and six consecutive years respectively. From soft fruity jellies to hard-boiled sweeties,

from cough drops to caramels – there are many different members of the candy family. Candy

represents over 30% of the global confectionery market.

46% of Cadbury’s revenue comes from chocolate and cocoa beverages and 33% from

gums. 21% comes from candies.

The industry is dominated by Cadbury with an enviable market share of 70 percent. Nestle follows next

with a poor 20 percent market share. Parry & Parle are the other active players. The 22,000 tonne-per

annum chocolates industry can be classified as bars, counts, panned varieties éclairs & assorted

chocolates. The bars or slabs also termed s “molded chocolates” is the largest segment in the industry

accounting for 37% of total chocolate market.

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The most popular brand in this segment is Cadbury Dairy Milk. Other leading brands include Premium

& Milky bar of Nestle, Truffle of Cadbury & Amul Milk Chocolate of the Gujarat Co-operative Milk

Marketing Federation (GCMMF). A duopoly of Cadbury & Nestle dominates this segment with 70

percent & 23 percent shares respectively.

Cadbury Éclairs has been monopolizing the Éclairs segment, which has a 20 percent share in the

chocolate market for nearly three decades. However, since 1991, it has been facing stiff competition

from Parle Products ‘Melody. Cadbury is once again a leader in this segment with a 58 percent share.

But Parle & Parry with 15 percent shares are also well entrenched. Coffee Bite, Lacto King & Coconut

Punch are the leading brands from Parry. Nestle has only a 10 percent share in the Éclairs segment.

Chocolates are more popular in metropolitan cities where 15 out of every 100 citizens consume

chocolates. The consumption in towns is around 10 percent while it is as low as 2 percent in the

villages. The industry is in the Fast Moving Consumer Goods (FMCG) sector, a hot favourite on the

bourses. But, chocolates along with ice-creams, wafers, drinks & biscuits are quite sensitive to

consumers changing preferences. They operate in a branded impulse market & have to spend heavily

on advertisement campaigns to sustain the consumer interest in their products. The players in the

industry vie with one another to book large sign boards near bus stops, railway stations, cinema

houses, schools, colleges, etc. so that their products have a greater visibility.

CIL may soon be the global manufacturing base of the Group. But, Cadbury decision launch one new

product every year (in fact, it launched three in 1998) is surprising since many of his brands like

Mickey-Donald Wonders, Fruit & Nut, Roast Almond & Nut Butterscotch have not had a good response

from customers.

The budget of 2000 added a sour taste to this industry. The excise duty on chocolates has been

doubled from 8 to 16 percent since then. This has adversely affected the bottom-line of the players.

Cocoa powder & other food preparations containing cocoa waffles & wafers coated with chocolate will

now fall under MRP-based excise assessment. The dividend tax has also dampened the spirits of

chocolate MNCs as they have a dividend payout as high as 80 percent.

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Consumers are increasingly are looking for naturalness. So it purchased Green & Black’s, the organic

chocolate company, and The Natural Confectionery Co., a company that uses completely natural

ingredients. We are also seeking to replace many of the artificial colours and flavours in our products

with natural colours and flavours; another trend is health and wellbeing. One of the reasons that

invested in the chewing gum business was that it is a sweet snack with generally no calories and no fat.

We believe that the chewing gum industry is being driven in part by consumers seeking a sweet

snacking experience with low calories and low fat

The way forward for CIL

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Well established in the Indian market. The brand as well as its sub-brands would not have a

decline stage in their product life cycle, as long as India and its economic growth do not reach

its saturation level.

Instead of aggressive promotional strategies and continuously bombarding the customer with

information, concentrate on aggressive sales and distribution channels, to strengthen the rural

consumer reach of CIL before rural consumption pattern gets dried up from the current 57% to

a mere 38% by 2025.

Also put substantial marketing effort to educate customer about the products available for the

health conscious. The long term trend shows people will get more health conscious. Also

spending on healthcare is going to increase. India is expected to have 57 million diabetes

patients by 2025, thanks to erratic work schedules and improper food habits according to

ASSOCHAM. So concentrating to sugar-lite products might be a good idea.

Unlike common understanding of marketing heads, toffees & soft chewing sugar

confectioneries do become close substitutes to chocolates. This happens not on the taste front

but on the packaging front. Consumer will have more flexibility in buying Polo for Rs 5, than a

packet of 100 Éclairs. Packaging has to be taken seriously.

Keep current levels of emphasis on technical advancement intact; as it has helped in

development of gums having long lasting flavours and other patentable ingredients. For

example scope lies in éclairs, can the ingredients be changed so that it gets easily dissolved in

mouth and don’t stick around the gums and teeth for too long?

PART B

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INTERVIEW WITH MR.ARPAN SUR, BRAND MANAGER OF CADBURY DAIRY MILK ECLAIRS

BACKGROUND

Mr.Sur is a young, energetic manager of Cadbury Dairy milk éclairs. He is an alumni from S P Jain and he has been working with Cadbury from the past 5 years. He spent the initial 3 years in sales, after which due to his excellent performance he was promoted to Brand Manager of Cadbury Dairy Milk Eclairs, and has been working since 2 years.

INTERVIEW REPORT

1. Facts about CDME :

One of the power brands of Cadbury No 4 among Bournvita, dairy milk, 5 star and Perk Oldest brand of éclair chocolates – was started in 1971 It was the first of its kind – which helped it set a competitive format and create a brand

image

2.SEGMENTATION

2.1 Product based

2. 50p + Solid – coffee bite, alpenlibe etc

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Eclairs

Price

50p Re 1

Filling

Solid Caramel\other filling


3. Re 1 + solid – non existent4. 50p + filling – nestle éclair, local brands5. Re 1 + filling – CDME

Current Market Share :

Cadbury has 70% market share among chocolates\chocolate based products

Eclairs\chocolates produced by major 5 companies form 45% of market share.

11% out of this is by CDME, market leader is Alpenlibe with 22%

Trend : re 1 products will go up, due to diminishing value of lower denomination currencies

2.2 Customer based

CDME’s share :

50% of value from teens 40% from kids 10% from adults

They target teens because :

1. Its the biggest market for candy2. They are aging faster3. Have more buying power due to increased income\society norms4. They want to appear older, and prefer products that make them look older

3.POSITIONING

There are three main positioning buckets

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4. Engaging-it experience – make consumers take it when they are taking a break from studies5. Unobtrusive natured products – accompanies what you are doing6. Taste\flavour

CDME belongs to the 1st bucket.

Brand Image

Eclair is considered to be premium among all the éclair\candy brands. Customers describe it as “teeny, youthful, funny,slightly naughty”

4.VALUES

Cadbury is a healthy mix of being product focused as well as customer focused. Their customers are the shopkeepers\retailers and distributors, while the consumers are the

teens, kids and adults. Suggestions obtained from consumers : to make the centre of the éclair creamier. The solution

to this was the meetha bomb product. Market share and sales is highest in metros and big cities (up tp 22%) CDME is following a 2 prongs strategy

1. How to improve their sales in the non-metro cities This can be done by increasing investments in specific states, conducting customer surveys etc and serving to the needs better. Cadbury is currently considering these plans.2. How to add value to the product This is a really tough job, since the customer has to feel like spending a rupee for an éclair. This can be done by

a. Improving and evolving on the product with changing tastes and lifestyles.b. Increasing sales by acquiring new consumers, and increasing usage rate among the users.

This is being done by the introduction of the new stick pack of éclairs. There are 9 flat, round shaped éclairs in a stick pack that is being sold for Rs10/- this will ensure increase in usage rate, as these days people are not able to carry change , and would find it easier to buy stick packs.

5.COMPETITION

Biggest competition for CDME is Alpenlibe by nestle. Also we are facing competition from imported brands like Hershey’s etc. To deal with this, we have a legal departmement who ensures that our packaging and logo isn’t being copied.

Competitive Advantages of CDME

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Imported brands will not be able to cater to the needs of the local, semi – urban markets. Also the brand –image of Cadbury is Indianised to match with the culture here.

It is the oldest brand in the éclair segment and has a strong brand image Dairy milk is the centre of the éclair, which is loved by all. CDME was in the race from the beginning, and hence has an added advantage.

Disadvantages

Retailers get huge margins from imported brands.

Current marketing Strategies

Chocolate ka meetha bomb – to accentuate the new and improved éclairs bursty, chocolatey goodness.

Advertisements is the biggest method Hoardings at bus stands Through internet – Meetha bomb messages through an application on Orkut Increase the share among adults - promotion as a gift article for festive occasions, also we are

exploring the idea of launching a premium track for Rs2/-

Partnership management

Cadbury has its own set of distributers and superstockists who sell to wholesalers and retailers. Their hierarchy is as follows

6.GLOBAL EXPANSION

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Cadbury India Distributor

Small towns - Superstockist

seller at town A

seller at town B etc

Cities - Wholesalers

Smaller wholesalers

Retailers

Consumers


CDME is sold in China, South Africa, etc. Main market is India. Cadbury has been voted the Reader’s Digest Most Trusted Brand by consumers of Australia and New Zealand for five and six consecutive years respectively. Almost 60% of growth came from emerging markets like Brazil, India, South Africa, Thailand – very big emerging markets that are important to business and to the growth and progress of the world going forward.

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cadbury final

Documents

y y y y y y strong brand

y y yy

cadbury clairs

presence of cadbury

y y stiff competition

power brands of cadbury

y lack of launch

indian chocolate market