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A
PROJECT ON
THE CADBURY DAIRY MILK
Submitted By:
CHANDNI MANIAR
(Roll No-10065)
Guided By:
PROF. BHAVESH O. VANPARIYA
PGDM PROGRAMME
(YEAR 2010-2012)
TOLANI INSTITUTE OF MANAGEMENT STUDIES
ADIPUR
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ACKNOWLEDGEMENT
Success is an amalgam of dedication.work and able guidance of people around us
I am very thankful to TOLANI INSTITUTE OF MANAGEMENT STUDIES for
giving me an opportunity to learn something new and increase my
practical knowledge. At the same time my sincere thanks to PROF.
BHAVESH VANPARIA to guide me throughout my Marketing Project.
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EXECUTIVE SUMMARY
In this Marketing project I have tried to apply the concepts of marketing on
any product and my product was Cadbury.
Considering the importance of understanding the marketing concepts in
deep and which helps in future development as in marketing profile and
also with the application of concepts we come to know about the position of
the product and here various models like Porters five force model, product
life cycle theory, core concepts marketing information system I have tried to
relate with the product .
Throughout from this project it has helped me to strengthen my marketing
concepts
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ABOUT CADBURY:
The story of Cadbury Dairy Milk started way back in 1905 at Bourneville, U.K., but
the journey with chocolate lovers in India began in 1948.
The variants Fruit & Nut, Crackle and Roast Almond, combine the classic taste of
Cadbury Dairy Milk with a variety of ingredients and are very popular amongst
teens & adults.
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Cadbury Dairy Milk has exciting products on offer - Cadbury Dairy Milk Wowie,
chocolate with Disney characters embossed in it, and Cadbury Dairy Milk 2 in 1, a
delightful combination of milk chocolate and white chocolate. Giving consumers
an exciting reason to keep coming back into the fun filled world of Cadbury.
Today, Cadbury Dairy Milk alone holds 30% value share of the Indian chocolate
market.
Cadbury Company Overview
Cadbury plc is a confectionery and beverage company with its headquarters
in London, United Kingdom, and is the world's largest confectionery
manufacturer.
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Its heritage can be traced back in 1824 when John Cadbury opened a shop in
Birmingham selling cocoa and chocolate. Since then Cadbury have expanded our
business throughout the world by a programme of organic and acquisition led
growth.
In the Chocolate Confectionery business, Cadbury has maintained its undisputed
leadership over the years. Cadbury enjoys a value market share of over 70% - the
highest Cadbury brand share in the world.
Cadbury began its operations in 1948 by importing chocolates and then re-
packing them before distribution in the Indian market Cadburys flagship brand
Cadbury Dairy Milk isconsidered the "gold standard" for chocolates in India. The
pure taste of CDM defines the chocolate taste for the Indian consumer.
After 59 years of existence, it today 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, Kolkota and
Chennai).
The firm was formerly known as Cadbury Schweppes plc before demergingin May
2008. With a history stretching back over 200 years, today CadburySchweppes
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Products of Cadbury:
y Cadbury Dairy Milk
y Cadbury Bytes
y Cadbury Bournvita
y Cadbury Eclairs
y Cadbury Dairy Milk Silk
STP OF DAIRY MILK
Segmentation
Demographic segmentation
Any age group, Any Income Category
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Geographic segmentation
The maximum part of the revenue generated from urban and semi-urban
area.
Behavioral segmentationOccasions
TARGETING
In the early 90's, it was seen as meant for kids, usually rewards or a bribe
for children.
In the Mid 90's the category was re- defined by the very popular Real Taste
of Life campaign, shifting the focus from just for kids to the kid in all of
us.
It appealed to the child in every adult. And Cadbury Dairy Milk became the
perfect expression of 'spontaneity' and 'shared good feelings'
The potential market in rural area was targeted
POSITIONING
The girl dancing on cricket ground- Way to express the happiness as, Real
Taste of Life i.e. Asli Swad Zindagi Ka
Khanewalon Ko Khane Ka Bahana Chahiye- Social acceptance
amongst adults, by showcasing collective and shared moments.
Kuch Meetha Ho Jaaye- Celebratory occasions pappu Pass Ho Gaya- Use of
street language to express joy in a moment of achievement / success.
Khush Hai Zamana Aaj pehli Tarikh Hai to celebrate Pay Day.
Shubharambh Kuch Meetha Ho Jaye to start any new work.
Kuch Meetha Ho Jaye to spread love and happiness among people.
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COMPANYSORIENTATION TOWARDS MARKET PLACE
The production concept:
The products of Cadbury are widely available in the Market and have effective
distribution channel.
The Product concept:
The product concept proposes that consumers favor products that offer the most
quality, performance, innovative features. Cadbury dairy milk has best quality,
performance and available in many varieties (fruit n nuts, crackles).
Theselling concept:
The selling concept proposes that consumers will not buy the enough products of
company unless aggressive selling and promotion efforts. Cadbury dairy milk
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Themarketing concept:
The marketing concept holds that achieving companys goals is being more
effective than competitors in creating, delivering superior customer value to
customers. Cadbury dairy milk is always deliver a superior value to its customer.
Theholistic marketing concept:
Cadbury dairy milk never allotted the competitors to gain an upper hand in the
market which it created. Cadbury dairy milk achieved such tremendous success
because of careful branding and ad campaigns. Company always strives to do the
right thing. Honesty, openness and being straightforward characterize the way
they do business. Company has clear principles and do what they say they will
do.Cadbury dairy milk is able to dominating the chocolate market because of
careful marketing and is a showcase of the marketing genius of Cadbury.
Relationship marketing:
Relationship marketing aims to build mutually satisfying long term relationship
with customers to earn and retain firms business. Cadbury dairy milk
Integrated marketing:Integrated marketing refers to the marketing mix tool
which is known as 4Ps of marketing.
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PRODUCT:
Varieties (dairy milk, fruit n nut, crackles)
Quality (consistency in quality)
Design (square box)
Brand (reliable and old brand)
Attractive packaging (pack in golden wrapper, celebration pack)
Various sizes (available in 10gm, 30gm, to big celebration pack)
PRICE: Rs.5 of 10gm ofdairymilk
Only fixed prices
PROMOTION:
Advertising (cricket, so what anyone won)
Direct marketing
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PLACE:
Worldwide
Various assortments
Location (smallest village to metro city)
INTERNAL MARKETING
PERFORMANCE MARKETING:
Cadbury take accountability for their social, economic and environmental impact.
In this way company aim to make their business, their partners and their
communities better for the future. Cadburys Business Principles are their code of
conduct and also take account of global and local cultural and legal standards.
They confirm their commitment to the highest standards of ethics and business
conduct. It collaborates and works as teams to convert products into brands
VALUE DELIVERY PROCESS
Choosethevalue Providethevalue Communicatethe
Customer
segmentation
Market
selection/focus
Product development
Service development
Pricing
Sales force
Sales promotion
Advertising
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Customersegmentation:
For product like Cadbury, widely children, teenagers & youth are much more
interested in chocolates as compare to old age people.
Marketselection/focus:
Merely market is all may it be rural or urban because Cadbury is available in all
size.
Value positioning:
To give customer satisfaction, great taste, attracting packing, discounting, other
offer to attract the target customer.
Productdevelopment:
Cadbury create various flavor for different customer to grab the opportunity. Forex for children wowie, for family pack celebration.
Servicedevelopment:
Service is serve best by the Cadbury company to its customer as full detail of
content, availability of product.
Pricing:
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Price is set as per keeping target customer in mind so that all can afford the
chocolate and can enjoy.
Sourcingmaking:
It defines that sourcing of Cadbury raw material and how the supply chain had
been managed, what are different sources to attract customer for buying their
product.
Distributingservicing:
As service or distributing is in wide range, it is available at all places over India.
Youll find in urban as well as rural area.
Sales force:
Cadbury had large sales force for different state whole seller and different retailer
then to the customer.
Sales promotion:
Sales promotion is done by Cadbury buy bring celebrity for advertisement, also
some or other offer to customers.
Advertising:
It has been proved more beneficiaries to Cadbury because customers are more
attracted towards advertisement. Ambassador also matter a lot as it is Amitabh
Bachchan.
MARKETING INFORMATION SYSTEM:
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Marketing information system consists of people, equipments procedure to
gather, sort, analyze and distribute needed, timely and accurate information to
marketing decision makers.
MARKETING INTELLIGENCE
The most important part of the internal records system is the ORDER TO
PAYMENT CYCLE.
Manufacturer Warehouses Distributors RetailerConsumer
Retailer gives order on weekly basis to distributer. Next day of order Distributer
deliver the stock to the retailer on the cash payment. (eg. if retailer give an orderon Monday than distributer deliver the chocolates on Tuesday on cash payment)
MACRO ENVIRONMENT
TREND
Trend is direction or sequence of events that has some momentum and durability
Trends are more predictable and reveals the shape of the future. In case of
Cadbury,In India people used to eat sweet in festivals, occasions but now a days
young people used to eat chocolates (celebration pack). They also give chocolatesas a gift.
DEMOGRAPHIC ENVIRONMENT
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Populationgrowth:
Population growth highly affect the buying of the chocolates.
Ageand LifeCycle:
Preschools:-5%
School-age:-15%
Teens:-40%
25-65:-38%
65+:- 02%
Gender: For purchasing Cadbury dairy milk gender doesnt matter. Cadbury dairymilk is for all types of persons whether male or female.
ECONOMIC ENVIRONMENT:
Economic environment depends on current income, prices, saving, debt etc, these
can have strong impact on business. Marketer must pay careful attention to trend
affecting to purchasing power. The price of Cadbury dairy milk is reasonable and
affordable. So a person does not need to think much before purchasing it.
Cadbury product available in Rs.1 (eclair) or 2(Dairymilk shots) to Rs.400
(celebration pack).
TECHNOLOGICAL:
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cocoa and milk quality can be improved much by technology. Refrigeration power
can be improved by new technology so that cold storage product such as dairy
milk and other milk products can be stored well for long time.
Political-legal environment:
political and legal environment consists of laws, legal system, political
interference highly influence and limit various organization. Cadbury dairy milk
also affected by the political and legal factor in terms of taxation, advertising
regulation etc.
FORECASTING AND DEMAND MEASUREMENT
In the FMCG products buyers taste and preferences changes in day to day life. So
it is very important for the Cadbury dairy milk to be up to date with the
consumers day to day changing choices. Market demand for a product is the total
volume that would be bought by a defined customer group in a defined
geographical area in defined time period.Strong demand for confectionery the
market has grown consistently at around 5% every year for last 4 years.
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TOTAL MARKET POTENTIAL :
Total market potential is the maximum amount of sales that might be available to
all the firms in industry during given period, under given level of industry
marketing efforts and environmental condition.
Available market is a set of consumers who have interest, sufficient income,
access to particular product.
Qualified market is asset of consumers who have interest income access and
qualification for the particular market offer. Qualified market eliminates the
consumers who are not able to buy the product because of their disqualification.
GANDHIDHAM MARKET -300000
POTENTIAL MARKET - 200000 (INTERESTED PEOPLE)
AVAILABLE MARKET 180000(EXCLUDIND 10% POOR)
QUALIFIED MARKET 150000(HAVE INTEREST, INCOME, ACCESS)
TARGET MARKET - 150000
PENETRATED MARKET 150000(WHO ARE BUYING)
TOTAL MARKET POTENTIAL =AVG NO OF BUYER *AVG QUANTITY*PRICE
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CUSTOMER PERCEIVED VALUE
Consumer perceivedvalue is the difference between the total customer benefits
and total customer cost.
Total consumervalue is the perceived monetary value of the bundle of economic,
functional and psychological benefit expects from product like service, personnel
and image involved.
Total customer cost is the perceived bundle of costs customers expect to incur in
evaluating, obtaining, using and disposing of the product.
IMAGE VALUE
Image value refers to the brand value of the product. Cadbury dairy milk is very
old brand which give consumers image value.
PERSONNEL VALUE-
Social value given by product or brand to the consumers. Cadbury dairy milk eats
in some relation for sweet. Brand ambassador of Cadbury dairy milk is Amitabh
bachchn.
SERVICE VALUE-
Service value is refers to the service given by the product to the consumers.
Cadbury dairy milk easily available anywhere, so it provides service to the
consumer.
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PRODUCT VALUE-
Product value refers to the functionality of product and features of product.
Cadbury dairy milk available in lots of varieties like dairy milk, fruit n nut crackles
etc.
MONETARY COST
Monetary cost refers to the price paid to buy a product. Cadbury dairy milk
available in Rs.5, so it is monetary cost for consumers.
TIME COST-
Time cost refers to the time to buy the product, using the product and disposing
the product.
ENERGY COST-energy cost refers to the physical cost paid by the consumer to use
or dispose the product.
PSYCOLOGYCAL COST - psychological cost refers to the cost of six senses.
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CUSTOMER DEVELOPMENT PROCESS
Potentials: Those customers who are willing and have capacity to buy product.
For Cadbury all are customer who can afford to buy.
Prospectus: As the price of Cadbury are available in wide range, so it is rare that
prospectus are disqualified. They are accepted.
Firsttime customer: As the person who are willing to have Cadbury and trying for
the first time is first time customer for the company.
Repeat customer: Once the customer had started consuming the Cadbury
chocolate and again buys then he or she is repeated customer.
Clients: To whom Cadbury give some special treatment are client of company.
Members: Clients are made members to whom special benefit and membership is
given.
Advocates: Those members who recommend the product and service to other is
made advocate.
Partners: As it is hard to convert advocate into member for such a big company
like Cadbury.
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FACTORS AFFECTING CONSUMERS BUYING BEHAVIOUR.
All marketing starts with the consumer. So consumer is a very important person
to a marketer. Consumer decides what to purchase, for whom to purchase, why
to purchase, from where to purchase, and how much to purchase. In order to
become a successful marketer, he must know the liking or disliking of the
customers. He must also know the time and the quantity of goods and services, a
consumer may purchase, so that he may store the goods or provide the services
according to the likings of the consumers. Gone are the days when the concept of
market was let the buyers beware or when the market was mainly the sellers
market. Now the whole concept of consumers sovereignty prevails. The
manufacturers produce and the sellers sell whatever the consumer likes. In this
sense, consumer is the supreme in the market.
As consumers, we play a very vital role in the health of the economy local,
national or international. The decision we make concerning our consumption
behavior affect the demand for the basic raw materials, for the transportation, for
the banking, for the production; they effect the employment of workers and
deployment of resources and success of some industries and failures of others.
Thus marketer must understand this.
Preference (or "taste") is a concept, used in the social sciences, particularly
economics. It assumes a real or imagined "choice" between alternatives and the
possibility of rank ordering of these alternatives, based on happiness, satisfaction,
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gratification, enjoyment, utility they provide. More generally, it can be seen as a
source of motivation. In cognitive sciences, individual preferences enable choice
of objectives/goals.
The study of the consumer preference not only focuses on how and why
consumers make buying decision, but also focuses on how and why consumers
make choice of the goods they buy and their evaluation of these goods after use.
So for success of any company or product promotion it is very necessary to depart
its concentration towards consumer preference
CULTURAL FACTOR
Culture, subculture, social class are important influence on consumer buying
behavior and it is fundamental determinant of persons wants and behavior. For
the Cadbury dairy milk country like India, the cultural factors highly influence on
buying of chocolates. Sweet is integral part of Indian culture.
SOCIAL FACTOR-
It includes reference group, family and social roles and status which affect the
buying behavior. Social factors includes such as norms, beliefs, values of the
company. Cadbury dairy milk has created the positive impact on customers in
terms of belief and values
Reference Group: reference groups are all groups that have a direct or indirect
influence on buying behavior.
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Membership groups Groups having direct influence are called membership
groups. In buying of chocolates membership group highly influence.
Primarygroups-
Group having friend, family neighbors and coworkers etc. in buying chocolates
this primary group mostly influence because of different tastes and preferences
of friends and family.
Secondarygroup
Group having member of religious community, professional, trade union groups.
This group has a little less effect on consumer in buying chocolates.
Aspirational groups have positive effect on the consumer in buying chocolates
and Dissociative groups have negative effects on consumer in same.
RollsandStatus.
PERSONAL FACTORS
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Taste and preference:-Cadbury has wide variety of products and 1 of them is
dairy milk chocolates and so different variety of it such as fruit and nut, almond,
so the demand will be according to the taste and preferences of the variety.
AGE AND STAGE IN LIFE CYCLE -
OCCUPATION AND ECONOMICCIRCUMSTANCES
PERSONALITY AND SELF CONCEPT
LIFESTYLE AND VALUE
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COMSUMER BUYING DECISION PROCESS
1. Problemrecognition
- Need of sweets for celebration
-
To give gift- Kids, youth, valentines day
2. Informationsearch
- Personal : friends & peers
- Commercial : packing & advertisement
- Public : media mass
- Experiential : if sum one is mad after Cadbury (sample survey)
3. Evaluation ofalternative
Total set Awarenessset
Considerationset
Choiceset Decision
Cadbury Cadbury Cadbury Cadbury Cadbury
Nestle Nestle Nestle Local sweet
Kraft Kraft Local sweet
Amul Local sweet
Parle
Local sweet
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Attributes
item Taste
(0.5)
Advertisement
(0.15)
Brand
(0.15)
Price
(0.10)
Packing
(0.15)
Cadbury 9 6 8 7 8
Nestle 7 3 8 7 1
Localsweet
7 7 7 3 8
(Here percentage give to each criteria is multiplied with the weight)
Cadbury = 4.5 + 0.6 + 1.2 + 0.7 + 1.2 = 8.2
Nestle = 3.5 + 0.3 + 1.2 + 0.7 + 0.15 = 5.85
Local sweet = 3.5 + + 0.7 + 1.05 + 0.3 + 1.2 = 6.75
4. Purchasedecision- When ? : occasion, frequently, desert .
- Where? : any store.
- How much? : depend on situation.
5. Post purchasebehaviour
- Cadbury can be used for making cake
- Keep it at a medical store so that more people get cough & take more
medicines
- Baby sitting people give Cadburies to make children quiet- To propose sum one
Those people who want to increase the profit
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MENTAL ACCOUNTING
Mental accounting refers to the way consumers code, categorize and evaluate
financial outcomes of choices. In case of Cadbury dairy milk, if any consumer have
Rs. 10. From that Rs. 10 he buy Cadbury dairy milk of Rs.5 if chocolates loss or
melted than consumer has two ways, either he buys another one or he left the
idea to eat chocolate. In first case, he may have mentally allocated Rs. 5 to eat the
chocolate. Buying
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CADBURY SWOT:
Strengths
Cadbury is the largest global confectionery supplier, with 9.9% of global market
share.
Strong manufacturing competence, established brand name and leader ininnovation.
Advantage that it is totally focused on chocolate, candy, chewing gum, unique
understanding of consumer in these segments.
Weaknesses
The company is dependent on the confectionery and beverage market, whereas
other competitors e.g. Nestle have a more diverse product portfolio, where
profits can be used to invest in other areas of the business and R&D.
Other competitors have greater international experience - Cadbury has
traditionally been strong in Europe. New to the US, possible lack of understanding
of the new emerging markets compared to competitors.
Threats
Worldwide - there is an increasingly demanding cost environment, particularly
for energy, transport, packaging and sugar. Global supply chain in low costlocations.
Competitive pressures from other branded suppliers (national and global).
Aggressiveprice and promotion activity by competitors - possible price wars in
developed markets.
Social changes - Rising obesity and consumers obsession with calories counting.
Nutrition and healthier lifestyles affecting demand for core Cadbury products.
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Opportunities
New markets. Significant opportunities exist to expand into the emerging
markets of China, Russia, India, where populations are growing, consumer wealth
is increasing and demand for confectionery products is increasing.
The confectionery market is characterized by a high degree of merger and
acquisition activity in recent years. Opportunities exist to increase share through
targeted acquisitions.
Key to survival within the FMCG market is increasing efficiency and reducing
costs.Cadbury Fuel for Growth and cost efficiency programmes seek to bring cost
savings by:
1) Moving production to low cost countries, where raw materials and labour is
cheaper ii) reduce internal costs - supply chain efficiency, global sourcing
and procurement,andwise investment in R&D.
Innovation is key driver. To respond to changes in consumer tastes and
preferences - healthier snacks with lower calories need to be developed. R&D and
product launches have led to sugar-free ¢er filled chewing gum varieties and
Cadbury premium indulgence treat. Low-fat, organic and natural confectionery
demand appears strong.
Had an excellent double digit volume growth.
"Bournvita" didnt have major volume growth. (but of late it is favourably
growing) Sugar confy.had static growth with larger share of "Eclairs" (with 33%
price increase effected.
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Michael porters Five Forces Model on cadbury:
New Entrants
AS it is having vast coverage
so less threat of new
entrants
Industrial Rivalry
nestle, britannia
Suppliers
Distributors, Raw
material suppliers ,
Packaging.
Buyers
Customer mindset,
Brand image
Substitutes
Other chocolates brands and
sweet items
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PRODUCT LIFE CYCLE OF CADBURY:
A concept that provides a way to trace the stages of a products acceptance, from
its introduction
(birth) to its decline (death). The PLC of a product have 4 stages:-
1. The Introduction Stage
2. The Growth Stage
3. The Maturity Stage4. The Decline Stage
IntroductoryStage:
Created an entirely new food category
Less competition
High marketing and production costs.
Faced the big crisis.
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GrowthStage :
High rate of Acceptance
Cadbury become popular chocolate and brand
Increased number of sales
Profits begin to rise
MaturityStage :
Entry of competitor
Sales begin declining
DeclineStage:
Sales is yet declining but not so strongly and there are many new product
development taking place and new items introduced which is also successfully
running and so it has yet not reached the declining stage.
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BRAND MANAGEMENT:
BRAND PORTFOLIO
11 brands with more than $1 billion in revenue
70+ brands with more than $100 million in revenue
40+ brands over 100 years old .
80% revenue from #1 share positions
BRAND PROMISE:
Cadbury Dairy Milk is the most delicious, best tasting chocolate.
A moment ofpuremagic.
BRAND CHARACTER:
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Cadbury Dairy Milk 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.
Advertising Strategy:
Forexample:
Pappu passho gaya
TheStrategy:
The task was to get the youth audience to adopt Cadbury Dairy Milk in the
sweet eating or " muhmeethakarna" moments.
The campaign of " JabPappu Pass Ho jaye, Kuch Meetha Ho jaye" captured
the thought of celebrating a moment of delight with Dairy Milk
A campaign was built around the idea of how "pappu" celebrated passing
his exams with Dairy Milk.
The Media:
A multi-media campaign was launched on TV, Internet, Radio and Outdoor.
The key was how do own the moment of " pappu passing his exams" in the media
space.
The Results:
The activity contacted 20 MN students across the country and was awarded
a Bronze Lion at the Cannes Media awards in 2005.
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Thank you