CADBURY DAIRY MILK

Presented By: Madhu Babu Bhogadi 0121PG104 EBS

INTRODUCTION Milk chocolate for eating was first made by Cadbury in

1897.

In June 1905 George Cadbury Junior, introduced its first

Dairy Milk bar

Became the company's best selling product by 1913

Fruit and Nut was introduced as part of the Dairy Milk

line in 1928, soon followed by Whole Nut in 1933

By this point, Cadbury's was the brand leader in the

United Kingdom

INTRO… In 1928, Cadbury's introduced the "glass and a half"

slogan.

Come to India in 1948.

68% share in Indian chocolate market.

In 1969 the Cadbury Group merged with Schweppes.

After the death of Richard Cadbury the sons of the two

brothers joined the firm headed by George Cadbury.

INTRO…OBJECTIVES OF THE STUDY To understand the Indian confectionary market. To understand Cadbury’s share in Indian confectionary

market. To analyze the strength of Cadbury in the chocolate

segment. To analyze & understand the reasons of loyalty of

customer towards the brand Cadbury.

Products (Impulse category)

Cadbury dairy milk 5 – Star Perk Celebrations Temptations Éclairs Gems Halls Bubbaloo Bourneville Dairy milk silk

CADBURY INDIA

Established in India: 1948

Manufacturing facilities at: 1) Thane, 2) Induri (Pune), 3) Malanpur (Gwalior),4) Bangalore 5) Baddi (Himachal Pradesh)

Operates in India in 4 categories viz.1) Chocolate confectionary 2) Milk food drinks3) Candy 4) Gum

CONFECTIONARY MARKET IN INDIA

Indian confectionary industry: 1) Chocolates2) Hard boiled candies3) Éclairs and toffees4) Chewing gums5) Lollipops6) Bubble gums7) Mints and lozenges

Total confectionary mkt: Rs.41 bn

Total Vol. turnover : 2,23,500 tpa

Consumption: Urban :73% & Rural : 27%

Market Share: Chocolate

Cadbury(70%)Nestle(14%)Amul(5%)Others(1%)

STRATEGIES OF CADBURY

Product strategyWe have the competitive advantage that is our quality. It is recognized throughout the world and our product is a convenience product.  

Promotion strategy: We can distinguish ourselves from the competitors on the following criteria:Important: as we are the first one launching nuts coated with chocolate .and due to winter season it will serve as a good product to our target market.Communicable: yes the difference is communicable to the buyers through our advertisements on TV and billboards.

Positioning strategy:More for the same: As we are offering the same quality same taste at a economy price. Brand strategy:We will position our brand at its attributes that is its innovative ingredient and good taste. And strong beliefs and values as Cadbury’s have many loyal customers. The product name is Enticing Treats means a mouth watering treat which is simply irresistibleThe brand is licensed and is a international brand.

Pricing strategy Our pricing strategies are as follows Weight Prices10.5 gm pack, Rs.520 gm pack, Rs.1040 gm pack, Rs.20 42 gm Pack, CRACKLE Rs.3095 gm pack Rs.5080 gm pack, FRUIT&NUT Rs.55165gm pack, Rs.90 And it is concluded from the survey that customers by looking this price chart have accepted the prices and called it as an economical.

MARKETING ENVIRONMENT OF CADBURY

MICRO-ENVIRONMENTAL ANALYSIS:

(1)MARKET CONCENTRATION & COMPETITION

The chocolate industry is highly concentrated. Cadbury and Nestle together account for 90%

of the retail sales with Cadbury being the market leader. Competition in this industry is fierce, especially between Cadbury and Nestle. Both Cadbury and Nestle have rival products in every segment (Cadbury’s Dairy Milk, 5 Star, Perk vs. Nestlé's Classic, bar-one, munch, etc.)

(2) BARRIERS TO ENTRYThe industry’s main barrier to entry is with respect to advertising. The incumbent firms have spent millions of rupees to create brand-loyalty with consumers. The cumulative effects of advertising create an absolute cost advantage for the incumbent firms, thus entrants must overcome not only current advertising efforts, but also the lingering impact of past marketing campaigns. High sunk costs also act as a barrier to entry.

(3) SUPPLIER POWERIndustry uses a wide range of raw materials in manufacturing chocolate products, the main ones being cocoa beans, sugar and other sweeteners

(including polyols and artificial sweeteners such as aspartame), dairy products (including milk), gum base and fruit and nuts.Cadbury buys its raw materials from suppliers around the world. No single supplier accounts for more than 10% of their raw material purchases.

(4) BUYER POWEREnd consumers have strong buyer power because of the availability of substitutes, both generic and brand names. It is easy for a consumer to purchase a nearly identical product for a lower price. This gives consumers a great deal of leverage and leads Cadbury to

spend millions of rupees to create product differentiation via advertisements and new products to catch up with the evolving trends in the market.

(5) SUBSTITUTESThe current trends in the market suggest that traditional sweets are possible substitutes for chocolates. In order to strengthen the special relationship consumers share with chocolates, Cadbury India launched its all-year-round ‘Cadbury Celebration gifting’ range with an array of newly designed Cadbury Celebration packs.

MACRO ENVIRONMENTAL ANALYSIS:

POLITICAL:Liberalization measures prompted by WTO affecting sales by way of competition fromimports; Direct imports from Cadbury Schweppes by dollar stores might erode market share

Change in government policies has allowed entry of foreign players; US-based chocolate-maker Hershey's is mulling a foray into the Indian chocolate market through its joint venture with Godrej.

The Food Safety and Standard Bill, 2005 with penal provisions requires a review as thesame gives huge powers to the Inspecting Officers to seize food articles without authorization and may create unwanted confusion to the detriment of the company.

ECONOMIC:The prices of cocoa and milk, the chief ingredients used in chocolates, have gone up by 50 percent, If the prices of these commodities keep increasing, Cadbury will be forced to increase the prices.

Low margins, high volumes, price sensitivity of the industry and competition from cheapersubstitutes leaves little room for price maneuvering.

In October 2003, seizure of chocolates stock from Pune plant after worms were found by customers in Dairy Milk packages; Sales dropped by 30 percent.

TECHNOLOGICAL:Adoption of JDA software’s space and category management solution resulted in 93.75%reduction in planning and processing time and increase in productivity.

•e-Commerce has not picked up that well - not much turnover through this route – future growth prospects of this channel.

A Few Advertising CampaignsThe ‘Real Taste of Life’ with girl

dancing on the cricket fieldMessage: ‘Dairy Milk is for

enjoyment’

During Late 90’sCampaign: ‘Khanewalon Ko

Khane Ka bahana Chahiye’.Target: Widening Chocolate

consumption among the masses.

More recentlyCampaign: ‘Kuch metha ho jaye’.Target: to associate Cadbury with

celebratory occasion.

Campaign: ‘pappu pass ho gaya’.Target: encourage those who

have pass the exams to celebrate with Dairy Milk.

Campaign: ‘Miss Palampur’Target” Focusing on the adults.

Campaign: ‘AAJ PAHLI THARIK HAI’

Target: To celebrate pay day / salary day

THE BIG ‘B’ FACTOR Cadbury appointed Amitabh

Bachchan as its brand ambassador.

The Big factor that has pursed up CDM sales is the Amitabh Bachchan campaign

SWOT ANALYSIS OF CADBURY

StrengthsMaintain a stable growth of a company, With its brand name, Cadbury could counterattack the

competitors.

Keep up with the financial strength by increasing its sales and profit.

Acquisition rules in UK, reduce its dependence on the UK market.

Overall, Cadbury has been successful through the new products (development) it has to offer.

WEAKNESSES

Weak position in the US market.

Lack of distribution network.

Total French production of chocolate bars and confectionary has slowed down in more recent years, partly due to the economic slump.

Consumption of chocolate products, fall in demand due to the gloomy economic situation.

Sales of milk chocolate bars, which account for 24 per cent by volume of total sales of chocolate bars, decreased by 3.7 per cent.

Opportunities Through its confectionary product line, to build viable positions in

prioritized markets.

Cadbury has other opportunities to have market development in Russia and China.

This company is also at the same time distributing its products via the

internet – Develop Gourmet Line.

Besides developing the “Low Calorie” line of chocolates and sweets, they also offer the “Sugar Free” sweets line.

Therefore in order to get the product into a new foreign market, France, Cadbury would have good opportunities in store for them.

Threats The company should take note of the changes in the

consumer’s buying trend. price wars would occur between its competitors like Mars,

Hershey and Nestle. There would be seasonal sales slumps all year round which

will reflect to an increase in cost of the raw materials needed.

Cadbury would then have to be prepared for growth of small local gourmet chocolates and regional candy manufacturers.

Also to be aware of the cost of packaging materials as it has increased over time.

Increase Marketing and Promotion globally by marketing products in emerging markets.

SEGMENTATIONOFCADBURY

GEOGRAPHIC SEGMENT

DEMOGRAPHIC SEGMENT

BEHAVIORAL SEGMENT

PSYCHOGRAPHIC SEGMENT

GEOGRAPHICREGION: Chocolates

are everybody’s favorite so there is no limit of region , it is used all over the world.

COUNTRIES: Perhaps categorized by size , development and membership of geographic region.

CLIMATE: Northern n southern.

DEMOGRAPHICAGE: 5-60GENDER: Male/FemaleFAMILY LIFE

CYCLE: Young, Single, Married, Older

INCOME: As concluded from the survey that our prices are economical so everyone can afford it.

EDUCATION: Grade school or less, some high school, high school graduate, college graduate.

PSYCHOGRAPHIC Attitude towards the

product: the attitude towards our product is positive as people are very in trusted in our new product.

Life Style: Those are willing to experiment with alternate products in place of conventional food items, as the universe of chocolate consumption is changing from occasion led to more casual consumption.

BEHAVIORAL

Occasions:-We are targeting special occasions like New Years Eve and Valentines Day . Eid etc. Benefits: - We are providing good quality product at economical prices. Keep the customers fitness in mind we are providing chocolate coated with nuts which will have a low calorie count.

Usage Rate: The user rate is heavy in the behavioral segmentation of Cadbury dairy milk.  

COMPETITORSOFCADBURY

Within Chocolate, it's interesting that Cadbury is a very small player outshone by

Nestle, M&M Mars (now called Master foods)and

Hershey.

Cadbury is a distant 4th. But, in Canada & Europe, Cadbury is a huge player - perhaps #2. This is because Cadbury Schweppes is British based and hence has a much larger presence in Europe, Canada & Australia.

FINDINGSsynonym for the word chocolates.Cadbury dairy milk (CDM) is flagship brand aiming to replace traditional gifting options like

Mithais and dry-fruits All occasion item & targeted towards whole family Medium size is preferred. Small size packs targeted

for rural marketBrand loyalty towards Cadbury is very highBrand name, quality & flavor are most important

factors

RECOMMENDATIONSCadbury should bring out new products for health

conscious peopleIt should continue to promote itself as substitute to

mithaiChoco-biscuits should be introducedShould use Indian ads and avoid global ads in IndiaShould consider attractive display or its own

‘Chocolate boutique’ (retail store).Special chocolates for Christmas should be

introduced e.g. rum, champagne flavoredNew flavors like strawberry,orange,vanilla etc.

CONCLUSIONThere is an immense scope for chocolate industry in

India Indian chocolate industry is unique mix with extreme

consumption patterns, attitudes, beliefs, income level and spending

Understanding consumer preferences and demands is the key to growth

Pricing, quality , flavors and pack size are some of the important factors

Economical distribution using proper supply chain management is necessity

Brand loyalty should be maintained

THANK YOU