Cadbury Picnic – We’re Back ! ! !

Submitted by: PGDM

Research Methodology

Indian Chocolate Industry• Chocolate consumption in India is extremely low.

• Per capita consumption is around 160gms in the urban areas,

compared to 8-10kg in the developed countries. In rural areas, it is

even lower.

• Chocolates in India are consumed as indulgence and not as a snack

food.

• The Indian market offers great potential for growth in the long term.

• Figures state that the average annual growth of the Indian chocolate

market, in value terms, was 8% between 2002 and 2006, and this

growth continued, with an annual growth of 4.3% between 2006 and

2010.

• Cadbury dominates the chocolate market with about 70% market share. Nestle has emerged as a significant competitor with about 20% market share.

• Key competition in the chocolate segment is from co-operative owned Amul and Campco, besides a host of unorganized sector players.

• There exists a large unorganized market in the confectionery segment too.

Cadbury’s – Shubh Aarambh . . .

• Cadbury is one of the oldest and strongest players in the Indian confectionary industry with an estimated 70 % value share and 62 % volume share of the total chocolate market.

• It has exhibited continuously strong revenue growth of 34 per cent and net profit growth of 24 per cent throughout the twenties.

• Cadbury is known for its exceptional capabilities in product innovation, distribution and marketing.

Cadbury Vision

Cadbury is an organization which impacts

and interacts with the consumers. Cadbury is

present in most happy occasions in the life of our

consumer. The brands excite the consumer.

Cadbury is an expression of a consumer's life.

Cadbury Full Of Life Cadbury as a company is

vibrant. Cadbury is a fun and energizing

workplace. Cadbury is robust and alive.

Cadbury Product Mix – Chocolates• Bars Dairy Milk Plain

• Fruit n Nuts

• Double Decker

• Roasted Almond

• Chunky

• 5-Star

• 5 Star Count Lines 5 Star Chrunchie

• Milk Treat Chocolate

• Orange

• Wafer Chocolate Perk Perk

• Perk XL

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

• Celebrations Various Gift Packs

Cadbury Picnic – Go Nuts ! ! !

• Cadbury Picnic is a chocolate bar with milk chocolate and peanuts, covering nougat, caramel, and puffed rice.

• Picnic is a random composition and has different fairly chunky ingredients.

• The Picnic brand was launched in India in the year 1998.

• Picnic was launched to further evolve the chocolate market into the snacking area, a task that has already been initiated by Perk.

Failure of Cadbury Picnic• Picnic was specifically designed for Russian taste thus not suited to the

Indian consumer.

• Indians felt that this chocolate had too many textures and too many flavours, none of which really made a coherent experience.

• Indians are very particular about tastes and may not have taken the product taste too well.

• Picnic is shaped in a very rough manner and can rightly be called ugly looking.

• It was ridiculed with the slogan as ‘Deliciously Ugly’

• 1998 was a time when India was not really open to such a product. Targeted at males of 18–29 at time when a third of population was below 15 years of age in 2000, points that timing was not correct.

Picnic was “wrong product in wrong time at wrong place” destined to fail !!

Re-launch Picnic – Market Survey

The Objective of the study is:

• The study consumer’s preferences for chocolate

• To study the recall value of Cabdury’s Picnic among the consumers and retailers

• To find a Gap to Relaunch and reposition Cadbury’s Picnic in the Indian market.

Research Methodology:

• Primary Data

Surveys/Questionnaires Customers Survey – A sample size of 25 is chosen. Retailers – A sample size of 5 is chosen.

Interactive

Interaction with customers in the Market/Household

Interaction with Retailers.

• Secondary Data

Data accessibility from Prowess and EBSCOO

Internet

Newspapers, Magazines and Other Published Journals

• Types of questionnaire

For the convenience of conducting survey for 25 customers and

5 Retailers, the questionnaire was structured, undisguised and closed

ended so that it became easy for the customers to respond.

• Mode of administration

Personal interview and interaction has been done with few retailers and

customers for the framing of the questionnaire.

• Sampling detail

Unit: The total size (N) = N1 + N2

Where, N1 = 25 Customers

N2 = 5 Retailers

Frame: Customers & Retailers across Mumbai were surveyed.

Consumer-Research Findings

Retailer-Research Findings

Inferences from Research (primary & secondary)

Reasons of FailurePhysical Appearance

• Its irregular shape did not appeal to the customers.• Varying quantity of peanuts and raisins in each PICNIC bar

resulting into low standardization.• Due to irregular mold of the chocolate opening and eating

it was a problem.Packaging

• In the packaging the letter PICNIC was so large that it covered most of the front side which was unlikely the Cadbury way to brand.

• This resulted in poor brand association with the customers.• Also the name Cadbury could not be clearly and easily seen.

Inconsistent Tasting• Due to inconsistent proportion of raisins and peanuts taste

varied from each picnic bar to bar.• Also due to this the chocolate could not meet the taste

requirement of some customers resulting in unsatisfied customers.

• Also peanuts and raisins were not properly fried resulting in varying taste.

Improper communication about the value proposition to the target audience

• Cadbury PICNIC chocolate was not properly promoted by the company since it was not its flagship product.

• Also lack of association with brand ambassador when compared to its competitors resulted into low sales.

• Also the promotional campaign positioned it as an alternate to full diet which is contrary to the mindset of an Indian customer.

Why Re-launch Picnic?• Considering the current competitive market and

intense competition Cadbury can no longer rely on its flagship product even though it faces low competition in the market.

• By re-launching Cadbury PICNIC chocolate as an energy bar the product portfolio should be expanded which can prove to be a flanking strategy for Cadbury.

• Considering the average age composition of the Indian population which lies around 25-30 Cadbury PICNIC chocolate if launched as energy bar on the move it can have a huge target segment.

• Cadbury can use the re-launch to make competitors re-strategize also it can have the first mover advantage.

• There is a very low competition in the market for an energy bar at an affordable price.

STP for Picnic

Segmentation• Cadbury’s ‘Picnic’ is a mass market product. This

confirms that all demographic segments & geographic segments have the potential.

• Customers for chocolate can be distinctly identified by their behavior patterns (perceived benefit of the product). Thus, behavioral segmentation is adopted as the basis of segmentation.

• The market can be divided into customers looking for – Fun & Relishing, Filling, Instant Energy, Socializing.

Targeting• The target chosen for re-launching this

product are the consumers looking for Instant energy amidst their fast-paced life.

• Cadbury Picnic scoring high on nutritional facts and has energy giving ingredients like peanuts, raisins it can initially target from teenagers to working class people.

Positioning• We propose to position Cadbury Picnic Bar as

“TOTAL ENERGY REPLENISHER ON THE MOVE” as a meal between the meals.

The Marketing MixProduct• Cadbury PICNIC should be showcased as an

Instant Tasty Energy Bar for all those who have the need for energy replenishment on the run.

• Cadbury Picnic should have a proper mould which would give all the Picnic Bars a uniform shape and size making it much more acceptable.

• The Picnic Bars should also have a prefixed amount of peanuts and raisins which will make the taste of the Picnic bar uniform and also the calories in each bar at the same quantity.

Pricing• The price of the energy bar should be around 10 Rs.

per bar which would not only be the same as that of the older price but will also be in correspondence to the similar products available in the market today.

Place• Cadbury PICNIC should make full utilisation of the

highly efficient distribution network to make sure that Cadbury Picnic taps the full potential market.

• One more strategy that Cadbury Picnic should use is a higher or an increase in the trade discount should be given.

• Also Cadbury Picnic has to concentrate more on the Tier I and Tier II cities where the people would actually like a chocolate energy bar to fulfill their energy needs.

Promotion• Cadbury Picnic has to go for an aggressive promotion and

marketing campaign.• The traders should be motivated to gain maximum shelf

space for PICNIC leading to more visibility.• Selection of a brand ambassador for the bar who should be

such that there is an easy association for the ambassador and the energy bar Picnic. Brand Ambassador like Akshay Kumar should be roped in as he is considered a Man with of lot energy and has a good popularity among the Indian Masses.

• Heavy display of the Cadbury Picnic bar at Public Places by the use of banners, billboards, dazzlers and kiosks.

• Sponsoring of certain sports and other energy sapping events should be done in such a way that would help in gaining a good presence in the consumers mind.

• Also advertisements should be displayed or telecasted during the primetime in order to get the maximum viewership.

ConclusionThe Indian Chocolate Industry is a unique mix with extreme

consumption patterns, attitudes, beliefs, income level and spending. At one hand, we have designer chocolates that are consumed when priced at even Rs 2500/kg while there are places in India where people have never even tasted chocolates once.

Understanding the consumer demands and maintaining the quality will be essential. Companies will have to keep themselves abreast with the developments in other parts of the world.

The companies’ strategies should focus on driving sales through a right product mix, efficient materials procurement, reduced wastages, increased factory efficiencies and improved supply chain management.

There’s an immense scope for growth of chocolate industry in India - geographically as well as in the product offering. The Indian Chocolate Industry is destined to grow and will do so in the future.