Professional Documents
Culture Documents
Imc Assignment On Cadbury
Imc Assignment On Cadbury
Imc Assignment On Cadbury
ON
SUBMITTETD TO
SUBMITTED BY:
Prof.Dr.MADHAVI PANDYA
P.SANDEEP(M5-50)
THOMAS DON(M5-42)
SAI SASIKANTH(M5-52)
Contents
Overview of the Company:....................................................................................3
Cadbury’s CSR Vision and Strategy....................................................................5
OVER ALL TURN OVER........................................................................................6
CHALLENGES OF CADBURY....................................................................................8
Cadbury challenges commuters with 'Eyebrow Language'......................................................8
WHAT IS BRAND?.................................................................................................10
DEVELOPING A BRAND.....................................................................................11
CADBURY: THE BRAND.....................................................................................12
COMPETITORS:.................................................................................................12
BUILDING A MEGABRAND: CADBURY DAIRY MILK.............................................17
SCOPE OF THE MEGABRAND.............................................................................18
Cadbury Advertising Timeline their products:-.................................................20
CADBURY AND ITS PRODUCTS.............................................................................22
Bar and a Half................................................................................................24
INTRODUCING CADBURY AS AN AFTER DINNER SWEET................................28
INTERSTING FACTS OF CADBURY.........................................................................29
COMMUNICATING STRATEGY...............................................................................30
Distribution and Selling strategy:........................................................................32
SWOT ANALYSIS...................................................................................................34
BUSINESS OVERVIEW...........................................................................................35
INTEGRATED MARKETING COMMUNICATION OF CADBURY..................................37
Marketing communication mix elements..........................................................37
ADVERTISING THEIR PRODUCTS IN DIFFERENT WAYS......................................38
OTHER MARKETING MIX ELEMENTS OF CADBURY................................................45
5 P’S Of Cadbury..................................................................................................46
Segmentation, Targeting, and Positioning...........................................................52
OVERCOMING THE WORM CRISIS USING IMC.......................................................57
STEPS TAKEN TO SOLVE THE CONTROVERSY...................................................59
2
Future Strategy....................................................................................................62
CORPORATE SOCIAL RESPONSIBILITY..................................................................64
Error: Reference source not found
3
• John Cadbury opened for business in 1824 - making us nearly
200 years young
• Every day millions of people around the world enjoy our brand
4
(Gwalior), Bangalore and Baddi (Himachal Pradesh) and 4 sales
offices (New Delhi, Mumbai, Kolkota and Chennai). Its corporate
office is in Mumbai. Worldwide, Cadbury employs 60,000
people in over 200 countries.
BOARD OF DIRECTORS
C Y Pal - Chairman
S N Talwar - Director
N V Iyer - Director
5
They see CSR as a positive contributor to their
competitive strategy. Increasingly they think of it as more
about doing responsible things profitably than just doing
the profitable things responsibly.
6
tones of confectionary produced every year. This is a huge
overall turnover which is equal to that of established markets.
Most the confectionary are consumed in the urban areas. The
urban market constitutes about 73 percent of the total market.
This is a skewed market share compared to the rural market
which accounts for about 27% of the total market.
This market data shows that the rural market has not
been well tapped into. With more than 50 percent of the
Indians living in the rural areas, it means that there is a high
potential in the rural market (Cadbury, 2008).On the product
share of the market, hard boiled candy accounts for about 18%
of the market, Éclairs and Toffees has about 18% of the market
share, while gums and mints and lozenges are at par
accounting for 13 percent of the market share each.
7
Éclairs Crunch, Mr. Pops and Halls is the leading player in the
chocolate segment, Éclairs segment, Lollipops, and the Mints
Segment (Cadbury, 2008).
CHALLENGES OF CADBURY
Cadbury challenges commuters with 'Eyebrow Language'
8
Cadbury is capitalizing on the success of its global
"Eyebrows" campaign with a Canadian print and OOH campaign
called "Eyebrow Language."
9
Toronto, transit ads in both cities and an online banner buy.
Launched last week, the commuter-paper ads are running three
days a week for four weeks, changing each time, as are the
OOH ads.
"We really wanted to make sure this had high impact with
the consumer," Nina Purewal, brand manager, Cadbury Dairy
Milk, tells MiC. "This is a very engaging promotion and, as you
can see as you go through the elements, once [people] have
committed to the promotion and decoding the messages,
they're really committed. It's really all about high
engagement."
The campaign has also taken over the Dairy Milk website,
which opens to a secret eyebrow message and Eyebrow
Language decoder overlay. The site also includes extra phrases
to decode and a ringtone of the song from the ad to download.
Visitors can also watch the original "Eyebrows" ad that first
aired in Canada Sept. 14.
10
WHAT IS BRAND?
11
they believe they it provides a higher value.
Building strong brand is an important marketing strategy for
companies, enabling premium pricing and making widespread
distribution easier to achieve. Brand loyalty helps create and
sustain high sales and profit. Brand equity is the value of a
brand based on the extent to which its has brand loyalty, brand
name awareness, perceived quality and strong brand
association.
DEVELOPING A BRAND
Brand Meaning
Brand core
Brand proposition
Brand style
Brand themes
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physical appear ance etc. Brand themes are flexible and change
with
physical appear ance etc. Brand themes are flexible and change
with
A brand pyramid can help managers plan and analyze a brand’s
identity. The top tier of the pyramid consists of brand core.
Brand core values are the genetic code of the brand and
remain the same overtime. Closely related to these values is
the brand proposition : the promise the brand makes to the
consumer. This proposition should be easy to understand and
appeal to the target market. The middle tier represents the
brands style or elements of the brands’ identity that represents
the self image of the brand of the brand and need to be
relatively stable over time. The base of the pyramid is formed
by the brand themes which are concerned with the brand
currently communicate through its advertising, packaging,
fashion, technological developments and changing consumer
tastes.
physical appear ance etc. Brand themes are flexible and change
with
.
The brand pyramid helps managers understand the strengths of
the brand and ensure consistency of its message. This also
helps to identify the opportunities for brand stretching and
brand extensions. A brand extension is the use of a well known
brand name on a new product category. We will discuss this in
13
relation to the DAIRY MILK brand. Brand starching is the use of
an established brand name in unrelated markets or product
categories , e.g. using a well known designer name on
cosmetics, clothes, sunglasses etc, such as “John Rocha
Waterford Crystal”.
COMPETITORS:
1.Nestle
2.GlaxoSmith Con
3. Britannia
4. Kwality Dairy
14
Cadbury India Ltd has announced that mega star Amitabh
Bachchan will be the company's new brand ambassador.
15
between Amitabh Bachchan and Cadbury chocolates - their
timelessness, and the love and trust they both
share with the people across India, makes this an
ideal partnership. Moreover, Mr Bachchan has a
universal appeal that extends to everyone from 6
to 60, just as our chocolates do.
16
the family brand name is used for all products. The advantage
of this approach is the positive associations with the parent
brand will transfer to all sub brands. The risk however is that
that if one brand is unsuccessful or falls into disrepute, the
reputation of the complete family of brands can be tarnished.
Cadbury is a family brand .
17
Cadbury uses a combination of brand strategies. The family
brand ,Cadbury is linked with its famous sub brands , i.e.
Cadbury Crème Egg, Cadbury Roses and Cadbury Flake to name
a few. The family brand identity is style communicated by
packaging with the Cadbury corporate purple color and the
distinctive Cadbury script logo. The sub brand is then
distinguished by its own individual livery.
19
20
21
22
Family brand names
:
The parent brand is also known as an
In the last year there has been a major development in brand
strategy at Cadbury Ireland. The Cadbury Dairy Milk brand has
been stretched to become a family brand in its own right. Of all
the successful Cadbury brands, the one with the greatest
loyalty is Cadbury Dairy Milk. In 2002 more than 19 million
Dairy Milk products were sold. Cadbury made a strategic
marketing decision to leverage the value of the Dairy Milk brand
(i.e. optimize the market potential of the brand ) by elevating it
23
to a Megabrand or range brand.
24
SCOPE OF THE MEGABRAND
25
Dairy Milk Caramel.
1867
26
1900
1920s-30s
1928
1930s
1938
1939
1951
1955
1957
1959/60
1970-1974
1983
1990
1996
28
Street, reaching an audience of eighteen million people.
2007
2008
2009
29
Cadbury Brunch Bar is a bar of cereals (oats, bran flakes and
crispies) bound with honey and half covered in milk chocolate.
They come in a variety of flavours: Raisin, Hazelnut, Apricot &
Almond, Cranberry & Orange, Fruit & Nut, Mixed Berry,
Chocolate Chip and Toasted Coconut and is made by Cadbury
UK.
They are breakfast type bars that are quick to eat in, and
ideally as a slightly healthier and more wholesome snack option
to chocolate bars.
Cadbury Caramilk is a caramel-filled chocolate bar made
by Cadbury Adams in Canada. It was first sold in 1968.[1]
Variations available, some of them limited editions, include
Caramilk made with dark chocolate maple, chocolate, or
cappuccino. "Chunky" (thicker) versions called Caramilk "Thick"
and cylindrical versions called "Caramilk Rolls" (similar to Rolo)
have also been introduced.
31
Kingdom and Ireland. The bar was first launched in 1976,
originally called Cadbury Caramel until 2003, when it was
renamed. In early 2009 it was relaunched, with
the Caramel name re-emphasised as the main on-pack brand,
and the Dairy Milk brand reduced in size. he product is
a Cadbury Dairy Milk chocolate bar semi-divided into blocks
each of which has a caramel filling. The blocks vary in shape
and number according to the size of the bar, but on all bars,
the blocks are stamped with the word Cadbury on the top.
Cadbury celebrations :
Cadbury Celebrations was aimed at replacing traditional gifting
options like Mithai and dry- fruits during festive seasons.
Cadbury Celebrations is available in several assortments: An
assortment of chocolates like 5 Star, Perk, Gems, Dairy Milk
and Nutties and rich dry fruits enrobed in Cadbury dairy milk
chocolate in 5 variants, Almond magic, raisin magic, cashew
magic, nut butterscotch and caramels.
The super premium Celebrations Rich Dry Fruit Collection which
is a festive offering is an exotic range of chocolate covered dry
fruits and nuts in various flavours and the premium dark
chocolate range which is exotic dark chocolate in luscious
flavours.
Cadbury Celebrations has become a popular
brand on occasions such as Diwali, Rakhi,
Dussera puja. It is also a major success as a
corporate gifting brand. The communication is
based on the emotional route and the tag line
says "rishte pakne do" which fits with the brand
32
purpose of strengthening your relationships with something
sweet.
Cadbury Perk:
A pretty teenager; a long line, and hunger! Rings a bell? That
was how Cadbury launched its new offering; Cadbury Perk in
1996. With its light chocolate and wafer construct, Cadbury
Perk targeted the casual snacking space that was dominated
primarily by chips & wafers. With a catchy jingle and tongue in
33
cheek advertising, this 'anytime, anywhere' snack zoomed right
into the hearts of teenagers.
Raageshwari started the trend of advertising that featured
mischievous, bubbly teenagers getting out of their 'stuck and
hungry' situations by having a Cadbury Perk. Cadbury Perk
became the new mini snack in town and its proposition "Thodi
si pet pooja" went on to define its role in the category.
As the years progressed, so did the messaging, which changed
with changes in the consumers' way of life. To compliment
Cadbury Perk's values, the bubbly and vivacious Preity Zinta
became the new face of Perk with the 'hunger strike'
commercial in the mid 90's.
Cadbury Gems :
34
Cadbury Bournvita :
Cadbury was incorporated in India on July 19th, 1948 as a
private limited company under the name of Cadbury-Fry
(India). Cadbury Bournvita was launched during the same year.
It is among the oldest brands in the Malt Based Food / Malt
Food category with a rich heritage and has always been known
to provide the best nutrition to aid growth and all round
development.
Throughout it's history, Cadbury Bournvita has continuously re-
invented itself in terms of product, packaging, promotion &
distribution. The Cadbury lineage and rich brand heritage has
helped the brand maintain its leadership position and image
over the last 50 years.
36
2) George Cadbury didn’t want to take mothers away from their children, so he developed a
company rule that women had to leave work when they got married. Each married woman
was given a bible and a carnation as wedding gifts.
3) In 1886 Cadbury became one of the first firms to have dining rooms with kitchens and
food for sale.
4) A miniature metal animal (elephant, penguin, owl, fox, duck, squirrel, rabbit or turtle) was
given away with specially designed cocoa tins in 1934. In the same year, Cadbury's tokens,
which came with packs of cocoa, could be redeemed for lamps, kettles and saucepans.
5) So many children joined Cadbury’s Coco cub Club that it had 300,000 members in 1936.
6) Cadbury’s World Visitor Center opened in 1990, welcoming 400,000 visitors in its first
year.
7) Cadbury launched a Get Active program in 2003, helping 10,000 teachers get in shape.
COMMUNICATING STRATEGY
37
campaign. This involved a highly Megabrand, Cadbury
implemented a
To promote the new Dairy Milk
Brand core:
This is the creed or genetic code of the brand;
38
The 360 degree support campaign include a point of sale
competition to win a new look , new display units , a buy-two-
get-one free promotion on 100g bars, PR and advertisements
in the trade press. The result was that sales of the new
Megabrand products exceeded targets by 12 % !!
The Strategy:
• The task was to get the youth audience to adopt Cadbury
Dairy Milk in the sweet eating or " muh meetha karna"
moments
• The campaign of " Jab Pappu 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
• An innovative tie -up with Reliance webworld was
executed, wherein students across 66 examination boards
across the company could access their results on Rworld
39
through their Reliance mobiles. If they passed a message
congratulating them on their moment of delight from
Dairy Milk was displayed.
40
channel to generate bulk chunk of their total sales. To support
their sales through this channel they advertise heavily on
electronic media to create brand pull for their brands and
subsequently it force retailers to buy these brands from whole
sale. The underlying reason behind limited coverage in retail
sector by these two companies is they do not have premium
priced items that could yield sufficient revenues to make retail
distribution viable for their distribution partners so they do a
limited coverage in retail sector. Since these companies
themselves do not emphasize on retail penetration so their
distributors also take an escape route and adopt the way of
easy selling through WS. However there are companies like
Cadbury, Candyland, Mitchell’s and Mayfair that are fully aware
of the importance of retail penetration .Hence these companies
pay due importance and attention to retail coverage and
subsequently allocate resources for retail sector. As stated
earlier the emphasis of Hilal and B.P has always been on
building consumer pull through mass media advertising (mostly
through television) and pushing their brands through wide-
spread network of distributors and wholesalers throughout the
nation.
41
and urban towns among middle and lower middle class. B.P and
Hilal having this advantage enjoy the benefits of a wide-spread
distribution network in 300+ towns and over 350 distributors
nation wide (as they have more than one distributors in some
towns). They always try to adopt cost leadership strategy and
generate revenues through high volumes of sales. Frequent
launches, re-launches, re-introduction of old brands with slight
modifications, withdrawals, adjustments in packaging, product
designing and even recipe change are a common phenomenon
in the brands of these two major companies. Contrary to this
Cadbury’s , Candyland and Mitchell’s believe on establishing
brands and brand equity and therefore protraction of quality up
to last possible extend remains their top priority.
42
dispensing-chillers was the turning and revolutionary point for
making chocolates the choice for every one. The role of
Cadbury’s for expansion of chocolate market in Pakistan will
always be written in golden words.
SWOT ANALYSIS
Strengths:
• Strong brand names like Cadbury Dairy Milk, Five
star and Eclairs.
• Rich product mix.
• Support from the parent Cadbury Schweppes.
Weaknesses:
• Lack of launch of new brands in Chocolates segment.
Opportunities:
• The Indian market and more specifically the urban
areas where the penetration of Chocolates is low can
be developed as a future market through
affordability and availability.
• Using information and technology to bring efficiency
in logistics and distribution.
Threats:
• Stiff competition in Confectionery segment.
43
• The company has large exposure to foreign currency
exchange rate risk, mainly on account of imported
cocoa beans and cocoa butter in US Dollar and Pound
Sterling.
BUSINESS OVERVIEW
Cadbury India's main source of revenue is its 70% bite of the 23,000
tonnes Indian chocolate market. It is also present in the malted food
market (Bournvita enjoys a 24 percent share of the 20,000 tonnes
brown drinks market). Of late, the company has ventured into the
120,000 tonnes sugar confectionery market ('Googly') and has
gained about 5% market share there. The revenue break up of its
different business segments is as follows:
Despite the fact that Indians have strong affinity for sweets, the size of
domestic confectionery market is small on account of traditional
consumer tastes and habits. The Chocolate market in India is a niche
market penetrated largely in urban areas and per capita consumption is
44
low as compared to those in developed countries of the West. But future
prospects of the chocolate category looks good as the company plans to
move into the arena of snack foods, as it has done in the Western
markets.
The market for Malted food drinks is large and is characterized by a few
large players. The market can be broadly segmented into white malted
food drinks which dominates in the Southern and the Eastern parts of the
country and Brown Malted food drinks which dominate in the North and
the West. Large brands like Bournvita and Horlicks dominate in Malted
food drinks sector and the growth has been steady in the last five years.
45
INTEGRATED MARKETING COMMUNICATION OF CADBURY
Marketing communication mix elements
Advertising:
“ Advertising is the non-personal communication of
information usually paid for and usually persuasive in nature
about products, services or ideas by identified sponsors
through the various media” (Bovee, 1992). Television, the print
media and posters have been the main media of
communication for Cadbury’s advertisements. Cadbury’s TV
campaign was devised illustrating the essential consumption
occasions. For example, the eight weeks campaign of
Cadbury’s TV advertising to be showed in the evening time was
seen by its target audience and it had reached 85% of the
market. In addition, according to the sources from Cadbury’s
46
website, there are other types of advertising form being used in
Cadbury which is the trade advertising, informative advertising
and the consumer advertising. Cadbury has launched a lot of
periodic trade advertising to monitor quality checks and
educate its retailers as well as promoting sales. For the purpose
of inform and remind customers, Cadbury published an
advertising regarding “the facts about Cadbury” in 55 trade
publications. Cadbury never ignore the importance of consumer
advertising that people can see many Cadbury’s advertising in
newspaper, magazine, Cadbury’s website and so on. More
importance, Cadbury has launched a response cell through toll
free number and an email id to encourage its customers to give
feedback.
1)Old Ads
• Focuses on cricket.
• Spread joy
2) New ads
More trendy
Teenage oriented
47
the product in the market. Advertising can be in the form of
print advertising, banner advertising, advertising on Television,
radio advertising and of course advertisement on Internet.
Over the last several years internet has emerged as a strong
and successful platform for advertising a product by using
different ways and methods to attract the attention of the
customers. There are various ways to capture the thought
process, which runs in the minds of the customers, and it is
done on a regular basis through the medium of advertising.
The purpose of running an advertising campaign is to generate
the interest of new customers into the product, and to sustain
the interest of regular customers in the product, so that there
mind remains focused on the brand name and image of the
product.
48
order to attract the customer's attention, theme of the
advertisement also been a part of the poster, which also gets
highlighted.
For Example:-
49
advertisement of Sun feast biscuits and now Sun feast is a
known to a large number of customers. Thus initially for any
brand name it is important to gauge and know the customer's
reaction, their opinion and views, and then slowly introducing
the product in the market for the customers on a regular basis.
50
customer has to select the right answer by clicking on one of
the four different options provided to him i.e. A, B,C and D and
then SMS the right answer on the given mobile number. There
are mobile compaines who have conducted these kind of
contests, recently MicroMax has done this contest during
cricket matches.
51
the controversy; however it should make it clear that the
product is not suitable for age below 15 and not advisable for
pregnant women. This way the competition will keep their
mouth shut and their will be no post launch negativism in
Singapore. This will be done a month before the launch.
Direct marketing:
52
Interactive media :
Sales promotion :
53
oriented promotion can be done through trade allowances,
trade shows, cooperative advertising and so on. Cadbury has
launched many sales promotion activities especially the
customer oriented promotion that customers can benefit from it
such as the Cadbury dairy milk buttons had launched the kids
campaign in the city centre in April last year, the target
audience of the campaign is parents with kids and the
campaign include treasure hunts, face painting, story telling
and biscuit and button decorating. Furthermore, Cadbury has
been launching the yearly discount selling or price off sales
promotion activities during Christmas time in supermarket for a
long time and it does increase sales dramatically every year.
Publicity/public relation :
Sponsorships:
Personal selling :
56
5 P’S Of Cadbury
1 - PRODUCT
The average company will compete for customer by
conforming to his expectation consistently. But the winner will
surpass them by constantly exceeding his expectation,
delivering to his door step additional benefits which he would
never have imagined. Cadbury’s offer such product. The wide
variety products offered by the company include:
3) 5 Star
4) Break
5) Perk
6) Gems
7) Éclairs
57
8) Nutties
9) Temptation
II. Beverages
III. Food Drinks
1) Bourn vita
2) Drinking chocolate
3) Cocoa
2 – Pricing
Make no mistake. Second P of marketing is not another
name for blindly lowering prices and relying on this strategy
alone to increase sales dramatically. The strategy used by
Cadbury’s is for matching the value that customer pays to buy
the product with the expectation they have about what the
production is worth to them.
Perk Rs. 10
5 Star Rs. 10
58
Gems Rs. 10
Break Rs. 5
Nutties Rs. 18
59
of distribution can either contact wholesalers and which in turn
retailers or the distributors can contact to the retailers directly.
4 - Promotion
Effective advertising is rarely hectoring or loudly explicit…. It
often both attracts and generates arm feelings. More often than
not, a successful campaign has a stronger element of the
unexpected a quality that good advertising shares with much
worthwhile literature.
60
To penetrate into the inner recesses of customer memory,
communication must first ensure exposure, grab his attention
evoke his comprehension, grab his acceptance and then
extract retention competing with thousands of other units of
communication trying to do the same.
Whirl with the new launched temptations with the slogan “Too
To Share” the communication resolves around the reluctance of
a person who’s got their hand on a bar of temptation to let
anyone else to have a bite. As well as outdoor and radio ads, ad
agency contract has created communication for cinemas and
even ATM machines for the brand.
61
The next round of activity will include the wafer-chocolate Perk
and the Picnic bar, which has faced problems with its taste,
because of the peanut it contains. Milk treat has also been
launched in a module bar form, just in time of Diwali gifting
market. Éclairs has got potential for much wide distribution, in
a small sweets that airlines, hostels, and up market retail outlet
offer to guest and customers.
5 – Positioning
In the 1970s consumers were ready to pay “more for more”,
and luxury goods flourished. In the 1980s, consumers began to
demand “more for same”, and the discounting era grew strong.
Today’s consumer demanding “more for less”, and the winner
will be that super value marketers…. Some of today’s most
successful companies recognize those customers are more
educated and able to recognize true customer value…
62
Positioning is simply concentrating on an idea – or – even a
word defines that company in the mind of the consumer. It is
more efficient to market one successful concept to one large
group of people than 50 product or service ideas to 50 separate
group… repositioning is a must when customer attitude have
changed and product have strayed away from the consumer’s
long standing perception of them…
63
Segmentation, Targeting, and Positioning
Segmentation:-
64
much more concerned about roominess and safety. In general,
it holds true that “You can’t be all things to all people,” and
experience has demonstrated that firms that specialize in
meeting the needs of one group of consumers over another
tend to be more profitable.
Targeting:-
65
that is already well served than to one whose needs are not
currently being served well. Secondly, how large is the
segment, and how can we expect it to grow? (Note that a
downside to a large, rapidly growing segment is that it tends to
attract competition). Thirdly, do we have strengths as a
company that will help us appeal particularly to one group of
consumers? Firms may already have an established
reputation. While McDonald’s has a great reputation for fast,
consistent quality, family friendly food, it would be difficult to
convince consumers that McDonald’s now offers gourmet food.
Thus, McD’s would probably be better off targeting families in
search of consistent quality food in nice, clean restaurants.
Positioning:-
66
against all modes of transportation between two destinations,
which then defines the target audience as all travelers between
those two markets. The second positioning reaches out to a
much larger target audience.
Segmentation of Cadbury:
Cadbury’s Dairy Milk has come out with such memorable ad-
campaigns, which settled into the hearts of everyone.
67
craves for the taste of chocolate. Cadbury strategies went
through a considerable change. It now catered from children to
adults and from chocolate to mithai. As the tagline goes “Khane
walon ko kahne ka bahana chahiye”.
68
kids),Crackle, Fruit and Nut(variations of the Dairy
Milk),Bournvita(health drink)Deserts,Perk(wafer ingredient) and
éclairs(toffee segment).
Targeting of Cadbury
"We seek to reach out to all of those consumers that are away
from the cities and to sell [small] piece products at low price
points," stated Cadbury chief executive Todd Stitzer.
Positioning of Cadbury
69
communicated to the target audience, specifically, its
competitive advantage, values and imagery. It is strongly
related to the perception and image of the product. When
devising a positioning strategy for a product, marketers must
establish a unique and distinctive image of that product in the
mind of the consumer. This will differentiate a company’s
product from its competitors.
70
The "worms‟ controversy" came at the worst time. The next
few months were the peak season of Diwali, Eid & Christmas.
Cadbury sells almost 1,000 tonnes of chocolates during Diwali.
In that year, the sales during festival season dropped by 30
per cent. The company saw its value share melt from 73 per
cent in October 2003 to 69.4 per cent in January 2004. In May,
however, it inched up to 71 per cent. CDM sales volumes
declined from 68 per cent in October’03 to 64 per cent in
January 2004 Clearly, the worm controversy took a toll on
Cadbury's bottom-line. For the year ended December 2003, its
net profit fell 37 per cent to Rs 45.6 crore (Rs 456 million) as
compared with a 21 per cent increase in the previous year.
71
Public relations activities include helping the public to
understand the company and its products.
Often, public relations are conducted through the media that is,
newspapers, television, magazines, etc.
PR RESCUES CADBURY
The PR department of Cadbury’s played a very effective role in
managing the reputation and keeping up the goodwill of the
company.
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good PR team Cadbury’s managed to wriggle itself out of the
controversy with a clean chit.
2. TAKING PRECAUTIONS
'Project Vishwas' - “Steps to ensure quality & regain the
confidence”
73
distribution and retail channels to ensure the quality of its
products.
The new double packaging even for the smallest offering, the
13 gm Rs 5 Cadbury Dairy Milk, had the bar wrapped in
aluminium foil and enclosed in a polyflow pack, which was
sealed on all sides.
The big factor that has pushed up CDM sales is the Amitabh
Bachchan campaign. It helped restore consumers' faith in the
quality of the product. In early January that year, Cadbury
appointed Amitabh Bachchan as its brand ambassador for a
period of two years. The company believed that the reputation
he has built up over the last three decades complements their
own, which was built over a period of 50 years. AB played a
pivotal role in all communication relating to Cadbury's products
and brands, be it in print, on television or the great outdoors,
the company's managing director Bharat Puri has been quoted
as saying in media reports.
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pachpan saalon se Cadbury khaane wala main bhi thoda sa
hitchkichaya.... ...Maine unse ek sawaal poocha, ki kya iske
baad main chain ki neend so paoonga ya nahin, to jawaab mein
voh mujhe apni factory le gaye."
raha hoon." "Ab aapki favourite Cadbury Dairy Milk naye purity
seal pack mein."
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Future Strategy
In the branded impulse market, the share of chocolate in 6.6%
and Cadbury’s share in the impulse segment is 4.8% factor like
changing attitude, higher disposable income, a large youth
population, and low penetration of chocolate (22% of urban
population) point towards a big opportunity of increasing the
share of chocolate in the branded impulse among the costly
alternative in the branded impulse market.
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Various measures are undertaken in all areas of operation to
create value for the future.
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• Improving distribution quality by addressing issues of product
stability by installation of visit coolers at several outlets. This
would be really effective in maintaining consumption in
summer, when sales usually dip due to the fact that the heat
effects product quality and thereby consumption.
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CORPORATE SOCIAL RESPONSIBILITY
Cadbury Schweppes approach to corporate social
responsibility (CSR) stems from its founders philosophy of fair
treatment of employees and philanthropy in the community.
Cadburys started life in beverages, as a tea and coffee business
promoting tea and cocoa as an alternative to alcohol for
workers. When the Cadbury family established the Bourneville
factory in 1879, they believed that profitable business required
healthy communities. The family had a Quaker background and
social benefit was a value they upheld. “Today our CSR is still
about this – promoting prosperous, sustainable, educated and
inclusive communities because they are good for business,”
said Neil Makin, External Affairs Director.
In 2001 the company developed a five-year programme to
review, re-articulate, update and embed its CSR commitments
within the company. The programme is based on five
areas: human rights and employment standards; ethical
sourcing and procurement; marketing, food and
consumer issues; environment, health and safety; and
community investment.
The company’s approach to adding value to the community
centres around three approaches:
• Money – providing specific contributions, for example
sponsorship of community-focused events or activities;
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• Time and skills - making a greater contribution to the
community through its people, for example by using
company skills for community organisations; and
• Gifts-in-kind – for example donation of materials, products,
promotional materials, equipment and furniture.
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