Cadbury Final 1

8/8/2019 Cadbury Final 1

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CADBURY S DAIRYMILK


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CONTENTS

AcknowledgementIntroduction to Cadbury

Mission

Vision

Profile of the Company

Overview of the Cadbury

Cadbury Worldwide

Brand Building of Cadbury Dairy Milk

4Ps of Cadbury

Awards & AchievementsSWOT of Cadbury

Competitors


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COMPANY OVERVIEW

GEORGE CADBURY FOUNDER OF THE TRUST 1839 1922

Cadburys Heritage starts back in 1824 when John Cadbury opened a shop in Birmingham selling cocoaand chocolate. Since then they have expanded their business throughout the world by a programme oforganic and acquisition led growth. On 7 May 2008, the separation of their confectionery and AmericasBeverages businesses was completed creating Cadbury plc with a vision to be the world's BIGGEST andBEST confectionery company.

Cadbury is a leading global confectionery company with an outstanding portfolio of chocolate, gum andcandy brands. They employ around 50,000 people and have direct operations in over 60 countries,selling their products in almost every country around the world.

In India, Cadbury began its operations in 1948 by importing chocolates. After 60 years of existence, ittoday has five company-owned manufacturing facilities at Thane, Induri (Pune) and Malanpur(Gwalior), Bangalore and Baddi (Himachal Pradesh) and 4 sales offices (New Delhi, Mumbai, Kolkataand Chennai). The corporate office is in Mumbai

Cadbury India operates in four categories viz. Chocolate Confectionery, Milk Food Drinks, Candy andGum category. In the Chocolate Confectionery business, Cadbury has maintained its undisputedleadership over the years. Some of the key brands are Cadbury Dairy Milk, 5 Star, Perk, clairs andCelebrations. Cadbury enjoys a value market share of over 70% - the highest Cadbury brand share in theworld! Brand Cadbury Dairy Milk is considered the "gold standard" for chocolates in India. The puretaste of CDM defines the chocolate taste for the Indian consumer.

OBJECTIVES AND VALUES

CADBURY IN EVERY POCKET

Their marketing strategy is aimed at achieving this vision by growing the market, by appropriate pricingstrategy that will create a mass market to have offerings in every category to widen the market.

MISSION

To create and sustain flourishing communities where people choose to live.

y By promoting new social housing of good quality which enhances the environment.y By managing housing stock and estates to the highest standard for all residents.y By encouraging residents to share in decisions affecting their communities.


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VISION

LIFE FULL OF CADBURY

y Cadbury is an organization which impacts and interacts with the consumers.

y Promotion of brands carrying mass franchise without compromise on quality or margins.

y Increasing the market depth including rural Indias coverage. (so far in case of chocolates, ruralareas are not covered)

y Better product quality and packaging.

y All round efficient utilization of tangible as well as intangible assets such as brands and people.

y Efficient working capital management

y Depreciation charge to meet the CAPEX needs every year.

Surplus cash so generated to be either gainfully and meaningfully reinvested in business or return tostakeholders

CADBURY FULL OF LIFE

Cadbury as a company is vibrant.

Cadbury is a fun and energizing workplace.Cadbury is robust and alive

Cadbury develop its products around much segmentation in the market e.g. age, gender, familycharacteristics and social class. For Instance, Cadburys have developed a whole range of chocolateproducts for the younger generation. Developing some of the most famous children's sweets like;chocolate buttons, chomp, curly whirly, freddo and taz, all being relatively cheap for young children tobe able to buy with their pocket money. Also Cadburys have developed a product which 'brings thefamily together' with its family sharing bags; Giant button, Crunchie Nugget and Just Chocolate VarietyMini's being just some of the wide range they produce.

CADBURY WORLDWIDE

They are currently the world's biggest confectionery company with a number one or number twopositions in 20 of the 50 largest confectionery markets across the globe.

They create chocolate, gum and candy brands people love - brands like Cadbury, Trident and Halls.


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Their heritage starts back in 1824 when John Cadbury opened a shop in Birmingham selling cocoa andchocolate. Since then they have expanded their business throughout the world by a programme oforganic and acquisition led growth. On 7 May 2008, the separation of their confectionery and AmericasBeverages businesses was completed creating Cadbury plc with a vision to be the world's BIGGEST andBEST confectionery company.

A few facts and figures

y They make and sell three kinds of confectionery: chocolate, gum and candyy Operates in over 60 countries John Cadbury opened for business in 1824 - making it nearly 200

years youngy Work with around 35,000 direct and indirect suppliersy Employ around 50,000 peopley Every day millions of people around he world enjoy their brandsy 23 June 2008

y Q UALITY ASSURANCE OF CADBURY

y 1. Market high quality, superior value products that consistently meet their specifications andcomply with local regulatory requirements, while continuously improving and exceeding our

consumers expectations.

2. Guarantee that their customers and consumers come first by actively listening andunderstanding their quality and value expectations at the points of purchase and consumption.

3. Ensure that any representation of our company image, including our products andtrademarks, meet approved standards, reinforce our commitment to quality and safeguard the

reputation of Cadbury.

4. Maintain a right first time culture that consistently embraces quality and food safety,where everyone understands their responsibilities and accountabilities.

5. Operate audited quality management systems that continually improve processes to deliverthis policy and our standards.

6. Assign clear management accountability for setting and meeting measurable goals andtargets for quality and food safety.

7. Work with their supply chain and business partners to assure compliance with their quality


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policy and systems, ensuring quality throughout our supply chain.

8. Place continuous improvement at the heart of our performance enabling us to deliversuperior products and service to our consumers and customers.

9. Create a passion for quality where success and achievement are communicated, recognizedand celebrated.

CADBURY DAIRY MILK y

When Cadbury dairy milk chocolate was first introduced in the early 1900s it made an immediateimpact quickly becoming the market leader. The success story has continued. It is still top sellingchocolate brand in the country and the Cadbury Mega Brand's broad family of products has aninternational retail value approaching US $1 Billion. Cadbury India began its operations as a tradingconcern in 1947. Cadbury in the Indian Sub Continent defined the first taste of chocolate. With brandslike Dairy milk, Gems, 5 Star, Bournvita, Celebrations, Temptations, there is Cadbury offering to suitall occasions and moods. They bring the sweetest of smiles to millions of consumers through their lovedbrands distributed through 5.5 lakh outlets. Cadbury India's four factories in India churn out close to8,000 tones of chocolate and the company sells a million bars everyday.

BRAND BUILDING OF CADBURY DAIRY MILK

The story of Cadbury Dairy Milk started way back in 1905 at Bournville, UK, but the journey withchocolates lovers in India began in 1948.The pure taste of Cadbury Dairy milk is the taste most Indianscrave for when they think of Cadbury Dairy Milk. The variants Fruit & Nut, Crackle, Roasted Almond,combine the classic taste of Dairy milk. Recently, Cadbury Dairy Milk Desserts was launched,specifically to cater to the urge

For 'something sweet' after meals. Cadbury Dairy Milk has exciting products on offer - Cadbury DairyMilk Wowie, chocolate with Disney characters embossed in it, and Cadbury Dairy Milk 2 in 1, adelightful combination of milk chocolate and white chocolate. Giving consumers an exciting reason tokeep coming back into the fun filled world of Cadbury.

PRODUCT

Cadbury dairy milk is made from real chocolate. Its ingredients include cocoa butter and there is aglass and half full cream dairy milk in every 200 grams of Cadbury dairy milk chocolate, Cadbury buys65 million litres of fresh milk each year to make Cadbury dairy milk chocolate.The updated packaging will be launched this March to meet changing consumer trends and drivefurther growth of the UKs favorite chocolate brand.

Cadbury Dairy Milk is also launching a range of new pack sizes. All activity will be supported by a


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significant 17 million marketing campaign in 2008; the biggest spend for the brand to date.The new packs - available in shelf ready packaging - will make greater use of color and include productphotography and improved, clearer graphics.

To adapt to emerging shopper trends, CTB is launching a Cadbury Dairy Milk 140g range which willgradually replace 100g variants, and a 230g range to replace 250g bars.

The pure taste of Cadbury Dairy Milk is the taste most Indians crave for when they think of CadburyDairy Milk.

The variants Fruit & Nut, Crackle and Roast Almond, combine the classic taste of Cadbury Dairy Milkwith a variety of ingredients and are very popular amongst teens & adults.

Recently, Cadbury Dairy Milk Desserts was launched, specifically to cater to the urge for 'somethingsweet' after meals.

Cadbury Dairy Milk has exciting products on offer - Cadbury Dairy Milk Wowie, chocolate with Disneycharacters embossed in it, and Cadbury Dairy Milk 2 in 1, a delightful combination of milk chocolateand white chocolate. Giving consumers an exciting reason to keep coming back into the fun filled worldof Cadbury.Changing product mix

Contribution to turnover

1994

Contribution to turnover

2001

Chocolate 59% 65%

Sugar Confectionery 9% 10%

Food Drinks 32% 24%

Categories/ Brands

Chocolate Bars, Count lines, Panned confectionery, Wafer chocolates, Assorted Chocolates & GiftChocolates Sugar Confectionery Googly , Mocka, Gollum, Frutus & Nice Cream Food Drinks Bournvita,Delite & Drinking Chocolate Cadbury's Indian operations are not just the largest in Asia but also thecheapest. In India, Cadbury has the largest market share anywhere in the world and has been thefastest growing FMCG Company in the last three years with a compound annual growth rate of 12.5 percent.

Plant locations

Cadburys manufacturing operations started in Mumbai in 1946, which was subsequently transferred toThane. In 1964, Induri Farm at Talegaon, near Pune was set up with a view to promote modernmethods as well as improve milk yield. In 1981-82, a new chocolate manufacturing unit was set up atthe same location in Talegaon. The company, way back in 1964, pioneered cocoa farming in India toreduce dependence on imported cocoa beans. The parent company provided cocoa seedsand clonal


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materials free of cost for the first 8 years of operations. Cocoa farming is done in Karnataka, Keralaand Tamil Nadu. In 1977, the company also took steps to promote higher production of milk by settingup a subsidiary Induri Farms Ltd near Pune. In 1989, the company set up a new plant at Malanpur, MP,to derive benefits available to the backward area. In 1995, Cadbury expanded Malanpur plant in amajor way. The Malanpur plant has modernized facilities for Gems, Eclairs, Perk etc. Cadbury alsooperates third party operations at Phalton, Warana and Nasik in Maharashtra. These factories churn outclose to 8,000 tones of chocolate annually.

CADBURYS PRODUCT DETAILS (400gms )

Ingredients

Milk, Sugar Cocoa Mass, Cocoa Butter, Vegetable Fat,Emulsifiers (E442, E476), Flavorings.

Nutrition

nutrient per 100g per 4 chunksEnergy kcal 525 kCal 130 kCalEnergy kJ 2,200 kJ 550 kJProtein 7.7 g 1.9 gCarbohydrate 56.9 g 14.2 gof which sugars 56.5 g 14.1 gFat 29.7 g 7.4 gof which saturates 18.3 g 4.6 gFiber 0.7 g 0.2 g

Sodium Trace Trace

PRODUCT MIX - CHOCOLATES

PRODUCT BASKET

Category Brand Variants

Bars Dairy Milk

Plain

Fruit n NutsDouble Decker

Roasted Almond

Chunky

5-Star


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5 Star

Count Lines 5 Star Chrunchie

Milk Treat Chocolate

OrangeWafer Chocolate Perk Perk

Perk XL

Other Chocki Mint, Strawberry & Chocolate

Premium/ Gift Chocolates Temptation Rum, Cashew, Almond & Orange

Celebrations Various Gift Packs

PACKAGING

Proper packing not only helps to protect and preserve the product in transit, but also helps to sell theproduct in the market. The terms packaging and packing are used interchangeably. However, there is a


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difference between the two terms. Packing refers to protective covering used for transportation ofgoods, whereas, packaging refers to the containers in which products reach the ultimate consumer.

The type of packing differs from product to product, depending upon its physical properties, thedistance of transportation, specifications of the importer, etc.

The packaging achieved impact by using bright , fiery colors for the product name and contrastingthem against the deep and instantly recognizable 'Cadbury purple', which communicated themanufacturer's heritage. The first thing that hits you when you spot a Dairy milk bar on the shelf is thedistinctive Cadbury's Purple coloured wrapper.The wrapper it must be said is quite attractive but notoverly eye-catching. It is a plastic wrapper as opposed to the more common foil. Although it would

seem the foil wrappers are predominantly used on only the most popular bars in Cadburys range.

The colours were also used in a gun powder style to suggest an explosive taste. The vibrancy of thedesign aimed to differentiate it from other products in the sector so that it would have an immediatepoint-of-sale impact both on-shelf and in store display units.

The front of the wrapper has Cadburys dairy milk written on it on the purple wrapper with whitebackground.

The reverse of the wrapper clearly contains the ingredients and nutritional information as you wouldexpect, as well as the bar code and best before date. There is also a customer satisfaction guaranteetucked away under the flap at the back.

Three different packaging formats were developed in order to maximise the various multi-purchaseopportunities available. The key pack size was the single bar, designed to entice trial and to encouragerepeat purchase. The 'treat size' and the multi-packs were aimed at families.

PACKAGING CONSIDERATIONS

1). Containers big containers are used for shipping bulk items.


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2).The weight of each package should not be very high since it can affect the chocolates and alsoas it may attract more dock handling and freight charges.

PRODUCT REVAMPING & INNOVATIONS

Cadburys chocolate brands registered double-digit growth in 2002, touching an astounding19 per centin the second half of that calendar year. Getting the power brands right was the firstpriority, sogenuine re-launches of the products were made. However, the growth rate was declining after that.The growth went down from 19 per centin 1999 to 12 per cent in 2000 to single-digits, with seven percent in 2001. If it staged a smartrecovery to nearly 10 per cent in 2002, it was largely on the back ofChocki and the revamped power brands.

PRODUCT INNOVATIONS:

5 STAR:

Consumer feedback suggested that the old 5 Star was too chewy, and people complained of it stickingto their teeth. It was made softer and melted easily in the mouth & introduced as 5 Star

Crunchy

PERK:

Perk was made much lighter and the size of the bar increased to match Nestls Munch. Perk had beenunder fire from Nestls deadly duo of Kit Kat and Munch, but after the relaunch, its market share istwo per cent more than Kit Kats. And, the five-year-old brand is now almost as big as the decades-old5 Star in size, both in the region of Rs 50-55 crore.

HEROES:

Packaging innovation has played a vital role in revamping of various Cadburys brands. Heroes brand issimply a multi-pack with miniatures of all its most popular brands in a single outer case.


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NEW PRODUCT LAUNCHES

Rich Dry Fruit Collection

For Gifting Festive Season

PRICE

Factors like competition, internal costs, and the positioning and corporate objective of the companyneed to be taken into consideration by a company before pricing product.

Premium pricing (relative to the competing brands not designer chocolates), with special emphasis ontaste and quality (most important attributes-see findings) is recommended. The premium pricing doesnot suggest that the offering is made unaffordable to the target consumer. A high price wouldaccompany a promise for a better taste and quality. Therefore the, brands taste & quality needs tojustify the high price.

Further, the product category is relatively inelastic i.e. consumers would not stop buying their favoritebrands if the price is increased by a few rupees. Consumers feel that even if the price of their favoritebrand is reduced, they might not buy more of it.

FACTORS INFLUENCING PRICE OF CADBURYS DAIRY MILK

INTERNAL FACTORS

y Corporate and marketing objectives of the firmy The image sought by the firm though pricingy The characteristics of the producty Price elasticity of demand of the producty The stage of the product on the product life cycley Use pattern and turn around rate of the producty Cost of manufacturing and marketingy Extent of distinctiveness of the product and extent of production differentiation practiced by

the firmy Other elements of the marketing mix of the firm and their interaction with pricingy Composition of the product line of the firm

EXTERNAL FACTORS

y Market characteristicsy Buyers behavior in respect of the given product


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y Bargaining power major costumers.y Competitors pricing policyy Government controls regulations on pricing.y Other relevant legal aspectsy Societal (or social) considerationsy

Understanding, if any reached with price cartels.CADBURY DAIRY MILK- OBJECTIVE OF PRICING

y Profit maximization of the short-term.y Profit optimization in the long-term.y A minimum return (or target return) on investment.y A minimum return on sales turnover.y Targets sales volume.y Target market share.y Deeper penetration of the market.y Entering new markets.y Target profit on the entire product line irrespective of profit level in individual products.y Keeping competition out, or keeping it under check.y Fast turn around and yearly cash recovery.y Stabilizing prices and margins in the market.

PRICING POLICIES ADOPTED BY CADBURYS FOR DAIRY MILK

y Despite intensifying competition for target share and a stream of new product ,pitted againsteach other, the price of popular brands of chocolate had move upward over the past one year

y The cost cocoa ,the key input ,accounts for around 45 per cent of the manufacturing costs forchocolates production Domestic cocoa production (estimated at 4500 )to 5000 tones for thecurrent year)has been stagnant and takes are of less than a third of domestics requirements ofchocolate and malted food manufacturers .manufactures such as Cadbury dairy milk importover one-forth of this cocoa requirements

y Maximum retail price-based

After the roaring success of Nestls Munch and Chocostick, Cadburys Empire struck back hard.

The Rs 5 price point accounts for more than half of all chocolate sales.Nestle had seized the initiative at this price point, with its launch of Munch, now a roaringsuccess (and the largest selling product at that price pointToday, Cadbury has four products at this price Cadbury dairy milk, Perk, 5-Star and Gems, andthe five rupee CDM bar is its single largest selling."This is a potent price point in India, because the average purchasing power is abysmally low,is what industry analyst have to say.


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competitor, Nestle, often stresses the energy giving aspects of chocolate (for example, in advertisingfor Nestle Charge), or on other attributes of the chocolate - taste in the case of Nestle Crunch, as alight snack in the case of Nestle Bar One. Nestle specifically targets children in the advertising for Milkybar, its white chocolate, again emphasizing its energy giving properties.

To counter Milky bar, CIL has the Dairy Treat - where it targets the mothers of children by trying to

convey the message that its product is full of the goodness of milk, and so equivalent to consumingmilk itself.

Message Execution

Cadburys multi-award winning campaign - The Real Taste of Life - launched in the 90s attempts tocapture the child like spontaneity in every adult. From the old man offering his wife a Dairy Milkchocolate to the dancing girl in a crowded stadium, all reflect the impulsiveness and the spontaneity ofthe child in the adult.

Cadburys Perk, the light snack, addresses the hungry child in every adult, as exemplified by the bridewho nibbles at a Perk under her pallu. Cadburys Dairy Treat conveys its message through the motherwho refuses chocolates and other treats to her son, till Dairy Treat comes along and quickly changesher opinion about chocolates.

Catchy lines such as The Real Taste of Life, Khane Walo Ko Khane Ka Bahana Chahiye, or Reach forthe Stars, are also used extensively, and to good effect in Cadburys advertisements.

Advertising Media

Television, the print media and posters have been the main media of communication for Cadburysadvertisements. However, with their understanding of the peculiarities of the Indian market, CIL hasalso explored many new ways of getting their message across to the consumers.

Sheet Metal Dispensers: This purple salesperson for Cadburys is found in almost every shop stocking

their chocolates. Since it is placed on the cash counter, its design offers visibility, ease of vending,and protection from the elements. It is also placed in the most appropriate position to cater to theimpulse buyers. This first from CIL has become so popular that is now the standard design for allchocolate manufacturers.

Visicoolers: Visibility for chocolates drops in the summer, as they disappear into the refrigerator. Inhigh throughput outlets, the visicooler serves the need for cooling while still maintaining the visibilityof the product.

Jars: These are provided to small outlets, where they are prominently displayed.

Vending machines: These high visibility machines are provided at busy locations.

Presence in Amusement Parks: Cadburys also maintains a presence in many amusement parks acrossthe country, strengthening the association of its chocolates with fun occasions.

RE-INVENTING CABDURY

Kya Swad Hai Zindagi Mein redefined the way Indians looked at Cadbury Chocolates. (The commercialshowed a beautiful young lady overcoming all obstacles on thecricket ground, crossing boundary,watchman, securities and embracing her lover who won the game by hitting a six). This theme


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introduced in around mid 90s bought instant growth to Cadburys Dairy Milk. The Ad campaign ransuccessful for about four years and immersed deeper inside hearts of Indians.

In March 2002, Cadbury launched its next advertisement campaign for its flagship chocolate brand,Cadbury's Dairy Milk (CDM). The campaign featured a television (TV) commercial that was significantlydifferent from the company's earlier commercials for the brand. It featured Cyrus Broacha interviewingcollege students and asking why they liked to eat CDM. This was followed by college students 'singing'their excuses for eating CDM. Just as the commercial seems all set to end with the students and Cyrussinging the famous CDM theme, 'Khane Walon Ko Khane Ka Bahaana Chaahiye' (those who want to eat,will find excuses)

The advertisement aimed at conveying the idea that no specific occasion is required for consumingCDM. This was a significant departure from CIL's strategy of appealing to adultsin India, who sought arational justification for indulging in chocolate consumption. Cadburys advertising has, over the pastfew years, aptly reflected Indias passion for chocolates.

The Big B FACTOR

The big factor that has pushed up CDM sales is the Amitabh Bachchan campaign. It helped restoreconsumers' faith in the quality of the product. In early January, Cadbury appointed Amitabh Bachchanas its brand ambassador for a period of two years .The company believed that the reputation he hasbuilt up over the last three decades complements their own, which was built over a period of 50 years.Yet, the entire credit of recovery could not be attributed to the brand mascot. Incisive action taken bythe company also helped.

Some of which were:

1. Responded to consumers concern over the issue rapidly. Also, the communication campaign workedeffectively in giving out the central message.

2. The packaging was changed to include a sealed plastic wrapper inside the outside foil. Cadburyslaunched a new 'purity-sealed' packaging for its flagship product, Cadbury Dairy Milk. The packaging isin response to foreign bodies, notably worms, being found in its products. Over the next few weeksCadbury will work towards introducing either a heat sealed or a flow-pack packaging that offers a highlevel of resistance to infestation from improper storage.

3. New advertising & promotion campaigns were in place which accounted for an Ad spend of nearly Rs40 crore (Rs 400 million)Cadbury invested nearly Rs 25 crore (Rs 250 million) this year on newmachinery for the improved packaging.

Conclusion

Cadburys strategy to attract consumers is somewhat unique in a sense, instead of focusing on theproduct; it seeks to tap into emotions normally associated with chocolates. They have also adaptedtheir strategies to the unique demands of the Indian retail sector. The strategy has clearly provedsuccessful, as they have been able to build and maintain a leadership position in the market with manyloyal customers.


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Cadbury Dairy Milk launches Prize and a Half text-to-win competition

14 Sep 07

Cadbury Dairy Milk has launched a text-to-win competition offering prizes from digital album

downloads to top price Las Vegas show tickets with 5 star accommodation.

The Prize and a half campaign, which runs until the end of March next year, is produced by Elvis andis being powered by mobile marketing solutions provider Sponge. The promotion focuses on givingconsumers the chance to win prizes with a difference, such as a designer outfit to wear to a filmpremiere or salsa lessons in Havana.

Consumers need to text the last four digits of the barcode found on promotional wrappers of CadburyDairy Milk to shortcode 65060. Entrants get an immediate win or lose reply.

This is a text-to-win promotion with a difference, said Douglas McDonald, Client Services Director atSponge. By offering a prize and a half, Cadbury Dairy Milk is exceeding consumers expectations.Sponge is really pleased to be working on this Cadbury Dairy Milk promotion with Elvis, having poweredsome of the biggest European text-to-win competitions for other FMCG brands.

Events

Cadbury Dairy Milk launches 'Payday' campaign

NewsWire7

Tue, 23 Jun 2009 18:50:00

Over the last six decades, Cadbury Dairy Milk (CDM) has launched a number of promotionalcampaigns . Its many successful campaigns right from Sometimes Cadburys can say it betterthan words to Kuchh meetha ho jaye - have not just been instrumental in building the brand buthave also helped achieve phenomenal penetration into various markets. CDM is taking this journeyforward by crafting yet another approach - the theme for which revolves around 'Payday' - Yetanother moment of happiness that life has to offer.

Sanjay Purohit, Executive Director - Marketing, Cadbury India Ltd said, This new campaign takesthe concept of celebrations to yet another level. With Pappu and Miss Palampur campaign, CDM


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created a space for itself during the big, community celebration moments. This commercial keepsthe core promise of happiness while introducing another 'moment of joy' in ones life. The newcommercial highlights the celebratory occasion of payday, which is an important event in the life ofevery middle-class Indian.

The storyline unfolds in a really old office where clerks are busy typing and the main protagonist is

one of them. A cashier approaches the main protagonist to give him his salary. As he is collecting hissalary he starts singing. All the typists start dancing and singing as well. The main guy distributesmoney to a milkman who appears.

Similarly the newspaper boy and doctor appear as well. And then a kid appears to whom he handsover a Cadbury Dairy Milk bar. His wife is all ready to go out for the evening. He starts singing. As heis singing we see them walking out.

Then they sit in a taxi to go to a theatre. The wings and the hood of the taxi open and the carbegins to fly. In the theatre as the main protagonist puts his hand around his wifes shoulder, shesees he is holding a Cadbury chocolate bar in his hand. Everybody joins in the celebration. We startpulling out revealing all our sets and then cut to the pack shot.

The creative approach has the taken the strategy forward beautifully. Coincidentally, we stumbledupon a 50s Kishore Kumar song that celebrated paydays, which packs in the emotions that such daysbring to life, in such joyous fervor that the creative team led by Abhijit Avasthi chose to base thecampaign around the song itself. The commercial, depicts the many things that typically happen onpayday, but more than that, it captures the infectious happy mood of the man and his family, andin that context, pitches the brand in a compelling manner.

Cadbury India celebrates 'pay day' with Dairy Milk

Mukta Lad, 24 June, 2009

Mumbai

Cadbury India has unveiled a new campaign that continues with the brand's 'Kucch Meetha Ho Jaye'positioning. Created by Ogilvy & Mather, the campaign revolves around the theme of 'Pay Day', which isassociated with happiness by most people.

Commenting about Cadbury's latest communication, Sanjay Purohit, director - marketing, Cadbury Indiasaid, "This new campaign takes the concept of celebrations to yet another level. With the Pappu andMiss Palampur campaigns, Cadbury Dairy Milk created a space for itself during the big, community


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celebration moments. This new commercial keeps the core promise of happiness while introducinganother 'moment of joy' in ones life. Also, the new TVC highlights the celebratory occasion of pay day,which is an important event in the life of every middle-class Indian."

Said Abhijit Avasthi, executive creative director, Ogilvy & Mather (India & South Asia), We werelooking to come up with another interesting, unique meetha moment. We realised that whilecelebrations have been done for various occasions, the celebration for pay day was not done. Payday emotes feelings that are naturally celebratory in nature. Pay day makes you feel as rich as a kingor as rich as a crorepati. This is the moment that CDM captures in the new CDM campaign. And thenwe lucked out on the 50s' Kishore Kumar song that brings the pay day story idea together beautifully.

Speaking to Campaign India about the task at hand, Shekhar Jha, creative director, Ogilvy & Mathersaid, "Generally, the first of every month is the day everyone feels rich and in the mood to indulge. Wehad to position Cadbury Dairy Milk as something that can be a part of this day of happiness, promisesand salaries. Cadbury automatically lends itself to the celebrations."

Watch the TVC here:

Cadbury Dairy Milk from Campaign India on Vimeo.

The storyline unfolds in a really old office where clerks are busy typing and the main protagonist is oneof them. A cashier approaches the main protagonist to give him his salary. The protagonists soon startsinging with sheer happiness as do all the typists. Similarly the newspaper boy and doctor appear aswell. And then a kid appears to whom he hands over a Cadbury Dairy Milk bar. Cut to the scene wherehe protagonist's wife is all ready to go to the cinema for the evening. He even buys a ticket for her inblack, since the movie is housefull. While watching the movie, he puts his hand around his wifesshoulder and she sees he is holding a Cadbury chocolate bar in his hand. Everybody joins in thecelebration. The TVC underlines the brand's positioning that Cadbury Dairy Milk is always around tocelebrate one's joyous occasions.

"The consumer insight," says Jha, "arose from the fact that most people feel indulgent on the day theyreceive their salaries. We decided to build up on this insight."

The media mix for the campaign comprises TV, outdoor, Internet and radio. The creative team includesPiyush Pandey, Avasthi, Jha and Mahesh Gharat. The film has been directed by Prasoon Pandey ofCorcoise Films.

Description/Specifications

The pure taste of Cadbury Dairy Milk is the taste most Indians crave for when they think ofCadbury Dairy Milk.


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Cadbury Dairy Milk The variants Fruit & Nut, Crackle and Roast Almond, combine the classic tasteof Cadbury Dairy Milk with a variety of ingredients and are very popular amongst teens & adults.

Sample Availability : Yes

Supplier Product Code : CADBU-01

Advertising

Cadbury Dairy Milk extends celebrations to Pay Day

Indiantelevision.com Team

(22 June 2009 10:30 pm)

MUMBAI: Cadbury Dairy Milk has rolled out a new television campaign that revolves around thetheme, 'Pay Day'.

Conceptualized by Ogilvy & Mather, the commercials have been directed by Prasoon Pandey.Corcoise Films is the production house.

Said O&M (India & South Asia) executive creative director Abhijit Avasthi said, "We were looking tocome up with another interesting, unique meetha moment. We realised that while celebrationshave been done for various occasions, the celebration for 'pay day' was not done."

The new TV commercials will be further supported by a 360 campaign to intensify the engagementwith the consumers through radio, print, on-ground (multiplexes and malls), mobile and online.

PLACE


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This is where the product is sold, how it gets to the consumer and how it gets to that place ofpurchase.

There are 4 types of places where you buy products:

Retailer: This is a businessman who sells to a consumer.

Wholesaler: A wholesaler is a firm that buys from a factory in bulk and breaks itdown to sell to retailers.

Agent: This is somebody that puts buyers and sellers together.

Producer: This makes the product. In this case, the producing company is Cadbury.

These paths were targeted by Cadburys to Extend Dairy milk into the market.

Types of retailers:

Independent (newsagents etc.) -sole traders mainly

Supermarkets

Specialist multiples

Variety chain stores

Franchised chains.

Chocolate bars are sold in most of these above mentioned places. Specific chocolate stalls orchocolate counters are normally located in areas near the checkout points since buyingchocolates are normally impulse purchases. So they are stacked at such places wherein peoplecould just grab one while buying another product.

Mostly, they are kept in huge boxes with some kind of promotion campaign linked to it (for eg.Cheap discounts), so it could attract attention of consumers while they are shopping or payingtheir bills or waiting in long queues.

The Place factor doesnt only concern the shops but also the place where the chocolates arestored. Most people are going to look around the normal eye level which is about 4 to 6 ft fromthe ground. Hence that could be an ideal height to place the chocolate bars on the shelves.


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This works very well as Dairy milk is an impulse buy so consumers would just quickly look at theselections and would prefer to look at a comfortable level without stretching upwards ordownwards to find the chocolate.

Cadburys overall strategy on the Place factor would be, it is not of that importance where

exactly it is sold in the sense that Dairy milk will sell where it has to and wont where itdoesnt have scope to do so but they have targeted all leading supermarkets and big chainstores and aimed at as many promotions as possible using big boxes of chocolates stored nearthe checkout areas to attract impulse purchasing. Secondly, they have also used the concept ofeye level shelves to a great extent so that the consumers dont miss it.

DISTRIBUTION

Chocolate needs to be distributed directly, unlike other FMCG products like soaps and detergents,which can be sold through a wholesale network.

Cadburys distribution network used to encompasses 2100 Distributors and 450000 retailers. Thecompany has a total consumer base of over 65 million.

Besides use of IT to improve distribution logistics, Cadbury is also attempting to improve distributionquality. It has installed VISI Coolers at several outlets. This helps in maintaining consumption insummer, when sales usually dip due to the fact that heat affects product quality and thereby off take.

To avoid cannibalization of its higher priced products from lower priced ones, Cadbury is setting up twoseparate distribution channels-one for CORE business and other for MASS Markets, with differentstockiest, wholesalers and retailers. One set will be dedicated to Cadburys high end products andtraditional chocolates. The other will cater to mass market brands mainly clairs, halls etc.

Cadburys distribution network reaches out to six lakh outlets each for its chocolate and confectionarybrand

Over the next few weeks Cadbury will work towards introducing either a heat-sealed or a flow-packpackaging that offers a high level of resistance to infestation from improper storage.

Meanwhile, Cadbury India has announced a three-step strategic programme involving the distributionchain and retail channels so as to ensure that the product reaching the consumer is of high quality.

Called Project Vishwas, the programme aims at building awareness among retailers about storagerequirements for Cadbury products, assistance in improving storage conditions at the retail end andstrengthening packaging of the Cadbury Dairy Milk range. This will be implemented immediately inMaharashtra and will be extended nationwide thereafter.

Bharat Puri, managing director, Cadbury India, said, We take seriously our responsibility to give ourconsumers a product that adheres to high quality standards. The three-step programme is a result of


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our discussions with consumers, retail partners and the Food and Drugs Administration in Maharashtra.We are confident that this will improve the consumers trust in our products."

Also, the company will reduce the bulk packaging from 60 bars to 22 bars. Each bulk pack will beshrink-wrapped. This is expected to minimize the sale of loose packs to the retail trade.

Over the next two weeks, a team of trained quality control managers along with over 300 sales peoplewill complete a thorough check of over 50,000 outlets across Maharashtra that stock and sell Cadburyproducts.

The teams will conduct checks on storage facilities and Cadbury-supplied chocolate dispensers and talkto owners and educate them about the appropriate handling and storage of chocolates.

As a precautionary measure, they will also replace questionable stocks immediately, reducingsignificantly the chances of damaged products reaching the consumer.

MANUFACTURER WAREHOUSES DISTRIBUTORS RETAILER CONSUMER

SWOT ANALYSIS OF CADBURYS

STRENGTHS

Cadbury would realize several possible advantages in going abroad. By penetrating a foreign market thecompany could:

Maintain a stable growth of a company by maximizing the use of its production capacity and thus

increase economies of scale and scope. With its brand name, Cadbury could counterattack the competitors it faces in the domestic market by

attacking their domestic market.

Keep up with the financial strength by increasing its sales and profit, indeed the foreign market couldpresent higher profit opportunities than the domestic products.

Acquisition rules in UK reduce its dependence on the UK market and therefore diversify its marketspecific risks.

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

WEAKNESSES

Generally, as Cadbury has a weak position in the US market, thus, need to change its target to adifferent location. Besides its lack of distribution network, it also has a small total of market sharealtogether. Therefore in order to market the product in France successfully, Cadbury would have tofind out on how it can improve in order to have great performance. It is also good to find out what are


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the situations that they could avoid in order to be successful. In order to market products the followingissues should be considered:

Total French production of chocolate bars and confectionary, which has increased by 24.5 per centbetween 1988 and 1991, has slowed down in more recent years, partly due to the economic slump.

Consumption of chocolate products, which has been growing until 1991, remained fairly static in1992, reflecting a 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 chocolatebars, decreased by 3.7 per cent.

OPPURTUNITIES

Through its confectionary product line, least to mention is to build viable positions in prioritizedmarkets through organic growth and acquisition. Besides what is mention above, Cadbury has otheropportunities to have market development in Russia and China. The Timeout Candy Bar market isgrowing worldwide. 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 alsooffer the Sugar Free sweets line. This has thus opened a completely Cadbury world in US.

Therefore in order to get the product into a new foreign market, France, Cadbury would have goodopportunities in store for them. Opportunities are as follows:

In terms of political issues, France is an advanced parliamentary democracy and politically is highlystable. The political power is centralized in the parliament, the Prime Minister and the President. Thecountry specific risk is negligible. France is a member of the European Community and has excellentrelations with the UK.

Economically, France has the fourth largest Gross Domestic Product in the world. It is a first-worldadvanced market based economy. Despite a recent recession, its economy is very strong and also highlyderegulated in line with European Union policies. France represents a very large potential market witha high standard of living and purchasing power. The economy is highly open internationally andconducts a high percentage of trade within its European partners.

With regards to its social situation, France has a broadly central/southern European culture which hasmany similarities with the UK. However cultural differences do exist and these must be consideredwhen planning for the market.

France has a high technological level and a lot of industries are based in the technological sector.This technological base constitutes one of Frances competitive advantages.

THREATS

Due to its confectionary products, it is very important for Cadbury to be aware of any present orupcoming threats. The company should take note of the changes in the consumers buying trend. It is


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perceived that consumers might shift from chocolates to Healthy snacks. If this were to happen,there might be a poor product development which would tarnish the Cadburys name. Needless to sayprice wars would occur between its competitors like Mars, Hershey and Nestle. Due to theabovementioned, there would be seasonal sales slumps all year round which will reflect to an increasein cost of the raw materials needed. Cadbury would then have to be prepared for growth of small localgourmet chocolates and regional candy manufacturers.

AWARDS & ACHIVEMENTS OF CADBURY

Asian Marketing Effectiveness Awards 08

Asian Marketing Effectiveness Awards 2008 for Bournvita Folk/Fusioncampaign - GOLD award for the "Best Insights and Strategic Thinking" andSILVER award for the 'Most Effective Use of Advertising'.

No. 1 FMCG Company

Cadbury India has been ranked as the 7th Great Place to Work and the No. 1FMCG company in India in2008, by the great place to work institute.

Great Place to Work 2007'

Cadbury India' has been awarded the "Bronze Award for Excellence in PeopleManagement" in the 'Great Place to Work 2007' survey conducted by GrowTalent Company Limited and Business world. The award recognizes CadburyIndia as a national leader in the area of Human Resource Management.

Cadbury India roars at Cannes

Cadbury India received a bronze award at the Cannes Lions InternationalAdvertising Festival for partnering with a mobile phone operator in 2005 toprovide exam results via SMS to school children.


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Reader's Digest Award recognizes Bournvita

Bournvita won the 'Reader's Digest Trusted Brands' Gold Award for the vitaminhealth supplement category in Indian in 2006. The merit was based on 7000responses from questionnaires and telephone interviews across Asia.

Suraksha Puraskar Award 2005

Cadbury India's Bangalore factory has received the "Suraksha Puraskar"

safety award from the National Safety Council - Karnataka chapter.

ABBY Award wins for India.

The prestigious ABBY awards, held in March, recognise creative

excellence in the Indian Advertising Industry. The Ulta Perk campaign won

four Silver Awards in total and the Cadbury Dairy Milk Campaign, Miss

Palampur, also won a Silver Award. This year Cadbury also sponsored the

new 'Young ABBY' Award.

Cadbury wins the Effies 2006

At the recent Effie 2006 awards organized by The Advertising Club ofMumbai, our 'Pappu Pass Ho Gaya' advertising campaign bagged two moreawards - Gold in the Consumer Products category and Silver in theintegrated advertising campaign category.

Competitor and competition with different brands


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Cadbury India accounts for a lion's share of the Indian chocolate market, with about 60-70 percent. Theflagship product of the company is Cadbury Dairy Milk which was first launched in 1905, and is still amarket leader today. In fact, Diary Milk worldwide sales have grown by 7% during the first half of thisyear. Cadbury Diary Milk constitutes about 30% of Cadbury India's turnover, with a volume share of26.7% in the urban market and a value share of 30.7%. It is followed by brands such as 5-star, Perk andGems. Bournvita is another major brand for the company as it constitutes about 22% of the company'sworldwide sales.

Cadbury has decided to focus on a few of its key brands such as Cadbury Dairy Milk, Bournvita, Eclairsand Halls to drive growth for the company. The company has successfully revamped its chocolatesdivision by following a strategy of regular product launches and marketing its existing chocolates insmaller packs. It is expected to continue with this strategy for further products, and any productsexpected to be launched. The 20 percent growth of the company in 2005 is expected to have aspillover effect this year, meaning that the company is optimistic in matching this figure this year too.The chocolate major is estimated to have a turnover of more than 1200 crores this year.

While Anand Kripalu now has plans to initiate Cadbury into the practice of category management,another way through which the company is looking forward to boost its sales is through re-launch ofolder products. The relaunch will involve new packaging with Dairy Milk branding on all SKUs (stockkeeping units). Today, Cadbury's distribution network reaches out to a massive 6-7 lakh outlets each forits confectionery and chocolate brands. But realizing the need to increase market penetration, it isthus also expanding its distribution network to 8-9 lakhs over the next two years.

Cadbury India faces stiff competition from the likes of Amul, Nestle, etc. And now, with the onset ofcompetition from other international brands such as Hershey's, Mars, etc. the company will have towork hard on its strategy and marketing if it is not to lose ground. Other factors like increasing cocoaprices too can affect the size of the chocolate market, all of which Cadbury will have to take intoaccount. All said and done, with the kind of foothold Cadbury has in the Indian market, it definitely hasan edge of its competition which it will look to leverage, to continue it's dominance on the Indian

market.es.

How is Cadbury Dairy Milk Differentiated from Competitors in themarket?

FeaturesThe feature of Cadbury dairy milk is such which is not so easy for the competitors tocopy it. It has unique type of feature. The introduction period for introducing a new feature ofCADBURY DAIRY MILK is also very short.

Customization

Marketers can differentiate products by making them customized to an individual but Cadbury dairymilk does have a customized product because they have good brand element due to which they areable to sell the product easily in the market. They have produced Wowie for childrens,celebrations for gifts and also variety in cashew nuts and almonds.


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Performance

There are mainly four types of performance levels-low, average, high or superior. Performancequality is the level at which the product is primary characteristics operate and Cadbury dairymilk has the highest level of performance quality.

Reliability

Cadbury dairy milk mainly has a reliable product. They were quite sure about the malfunctionof their product within a specified time period.

StyleIt refers to the products look and feel to the buyers .In Cadbury dairy milk there are differentstyles of packing and taste.

FU T UR E G R OWTH D RIV E R S .

y Present dominance in the chocolates market to be maintained.

y Av erage sales to grow at least at 20% p.a. for the next 3 years, v olumes by at least 12%

y 1 new major product to be launched e v ery year.

y W ith control o v er costs and reduction in relati v e depreciation charge for the year, steadilyincrease margins.

Documents

Cadbury Final 1