BRAND STUDY Cadbury Dairy Milk Eclairs

SUBMITED BYANINDITA CHATTERJEE VIKAS GAUTAM PRAKASH MATHAI NEHA MENDIRATTA DRON SHARMA UMA MADUREY V PGDM-108 PGDM-111 PGDM-128 PGDM-129 PGDM-147 PGDM-157

ACKNOWLEDGEMENTS
With profound sense of gratitude, we record our sincere thanks to Dr. Monica Khanna (Course Coordinator) for her keen interest and infallible advice. She provided full support and extended all possible amenities to facilitate successful completion of our project. But for her valuable guidance, astute judgment, constructive criticism and an eye for perfection, our brand study for Cadbury, a huge learning experience, would not have been this successful. We would also like to thank Mr. Arpan Sur (Brand Manager-Cadbury Dairy Milk clairs), who despite his hectic schedule, provided full support and equipped us with an in depth knowledge of the brand and cooperated in every aspect.

CONTENTS
Part A
OVERVIEW Company Market Share & Revenue.5 SWOT ANALYSIS............................................................................................6 CADBURY DAIRY MILK ECLAIRS..7 MARKET SEGMENTATION Product Based..........................................................................8 Price Based9 Customer Based..10 POSITIONING STRATEGY11 Positioning of Cadbury Dairy Milk clairs..14 DISTRIBUTION MANAGEMENT.16 PRICING STRATEGY16 ADVERTISING & BRANDING STRATEGY.17 MARKETING ENVIRONMENT FOR CADBURY.18

THE WAY FORWARD FOR CADBURY21 Part B

INTERVIEW WITH BRAND MANAGER, Mr. ARPAN SUR22

OVERVIEW
Overview Of The Company
Cadbury plc is a British confectionery and beverage company with its headquarters in London, United Kingdom, and is the world's largest confectionery manufacturer. In India, Cadbury began its operations in 1948 by importing chocolates. Their Core purpose-Creating brands people love, and slogan- We spread happiness!!! The flagship brand Cadbury Dairy Milk is considered the "gold standard" for chocolates in India. The pure taste of CDM defines the chocolate taste for the Indian consumer.

Fig: Range of Brands for CADBURY

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 Market share and Revenue

Cadbury controls more than 70 percent of the chocolate market in India with a presence in 1.2 million stores; Cadbury's total annual revenue in India is about 200 million pounds.

Fig: Presence of CADBURY as percentage share in various products

Profits in its Indian business grow at about 30 percent a year and sales at 20 percent, in spite of the global recession.
The future mission of Cadbury India is 'A Cadbury in Every Pocket'. The company's business strategy hinges on following for driving its future growth:

Increase the width of chocolate consumption, through low price point packs and distribution focus. Increase depth of consumption, targeting regular chocolate consumers through generating impulse and a dominant presence at Point of Sale.

Maintain image leadership through a superior marketing mix. Be a significant player in the gifting segment, through occasion linked gift packs. Build critical mass in the sugar business by introducing value-added sugar confectionery products.

The company manufactures and sells the following Brands:

Chocolates - Dairy Milk, 5 star, Perk, Eclairs, Bournville Gums Bubaloo Candies- Halls Malted foods- Bournvita 5

Drinking chocolate and malt extract Cadbury Drinking chocolate

SWOT Analysis of Cadbury

SWOT Analysis

Strengths:

Strong brand names like Cadbury Dairy Milk, Five star and Eclairs. Rich product mix. Control of 70% of Indian chocolate market. Growth at 30% despite recession. Extensive distribution network. Customization of products and promotion according to India. Great managerial talents.

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. 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.

Cadbury Dairy Milk clairs

clairs was first discovered by a local confectionery firm in London, England in the 1960s. The firm then became part of Cadbury in 1971 making Cadbury clairs the second largest brand in the company. The experience of eating a Cadbury Dairy Milk clair is truly unique because of its creamy caramel exterior and rich Cadbury Dairy Milk chocolate at the centre. In 2006 Cadbury Dairy Milk clairs launched a crunchy clair with a hard caramel outside and delicious Cadbury Dairy Milk chocolate inside called Cadbury Dairy Milk clairs Crunch.

Fig: Product Variants

Facts about CDME :

One of the power brands of Cadbury No. 4 among Bourn vita, dairy milk, 5 star and Perk Oldest brand of clair chocolates was started in 1971 It was the first of its kind, which helped set a competitive format and create a brand image.

MARKET SEGMENTATION FOR CADBURYS

PRODUCT Based segmentation

MARKET

MALTED FOODS

CONFECTIONARY

DRINKING CHOCOLATES

SNACKS

BROWN

WHITE

CHOCOLATES

GUMS

CANDIES

PURE & BAR CHOCOLATES

WAFER COATED

TOFFEES

SOLID FILLING

CARAMEL\OTHER FILLING

SOURCE: From Mr.Arpan Sur, Brand Manager , CDME

DIFFERENT PRODUCTS OF CADBURY AND ITS DIRECT COMPETITORS

CATEGORY MALTED FOODS

CADBURY PRODUCT BROWN-BOURNVITA

COMPETITORS BROWNBOOST,COMPLAN,MILO WHITE- HORLICKS

PURE AND BAR CHOCOLATES

DAIRY MILK,5 STAR,BOURNVILLE

KIT KAT,MILKYBAR,NESTLE MILK CHOCOLATE,BAR ONE MUNCH

WAFER COATED CHOCOLATES

PERK

TOFFEES

CARAMEL/OTHER FILLINGECLAIRS

SOLID FILL-NUTRINE MAHALACTO,PARRYS COFFEE BITE,MELODY CARAMEL /OTHER FILLALPENLIEBE HARD BOILED CANDIESPOPPINS

GUMS CANDIES DRINKING CHOCOLATES

BUBALOO HALLS CADBURY DRINKING CHOCOLATE

CENTER FRESH, BOOMER VICKS,STREPSILS.CHLORMINT NESCAFE,MILO START PLUS,NESTLE CAPPUCCINO KURKURE,LAYS,BINGO

SNACKS

BYTES

As can be seen that Cadbury is getting tough competition from Nestle, perfetti, and Smithkline Beecham products in all categories.

PRICE Based Segmentation

Eclairs

Price

Filling

50p

Re 1

Solid

Caramel\other filling

SOURCE: From Mr.Arpan Sur, Brand Manager , CDME 50p + Solid Coffee bite, Alpenlibe etc Re 1 + solid non existent
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50p + filling Nestle clair, local brands Re 1 + filling Cadbury Dairy Milk clairs(CDME)

CUSTOMER based Segmentation

Chocolate\candy consumers

Kids - below 14

Teens

Adults

SOURCE: From Mr.Arpan Sur, Brand Manager , CDME

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POSITIONING STRATEGY
The theme behind Positioning of Cadburys chocolates in the psyche of Indian customer was to go out and occupy a distinct space in the consumer's mind, and if you are able to occupy a distinct space in the consumer's mind then it become very difficult for a competitor to dislodge you. And it might be easier done if one is able to capture a word in the consumers mind which already exists; in the case of Cadburys that word is "Meetha" a generic to represent all and any kind of sweet. Range of Cadburys chocolates especially Cadbury dairy milk have placed themselves as the most delicious,best tasting chocolate, A Moment Of Pure Magic. Cadbury Dairy Milk (CDM) 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. The challenge in the Indian market was to get people accustomed to chocolates primarily seen as western taste.Cadburys did so by reaching out to the masses in a aland where mindsets and preferences are as diverse as the country itself. Back in the 80s the brand positioned itself as The perfect expression of parental love. The

chocolate goodness(appetite appeal) was being harnessed.Tag lines like Sometimes a Cadbury can say it better than words made it more popular. In the early 90s the following issues led to brand stagnation Chocolate are meant for kids only Seen as an indulgence product Negative associations o Too much was bad o Bad for health Seen as a western product

The challenge was to re position the brand and to expand the consumer base by making Cadbury aspirational and desirable to the adult segment.

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 The communication task was to increase category relevance, give consumers a taste of life the Cadbury Dairy Milk way - real, fun and free and to Integrate the "real" chocolate of Cadbury Dairy Milk to "real" feelings. Cadbury exploited the I wanna Break Free syndrome prevalent after globalization at that time to position itself as the market leader. The Big Idea-Cadburys chocolate-The chocolate for the kid in all of us.The communication- The real taste of life. Brand PositioningCDM is the perfect expression of spontaneous, happy, joyous feelings.

Eating CDM provides the Real Taste of Life experience. The Indianisation of the brand-To increase width of consumption by entering the Indian mind-space - Make CDM part of Indian customs and mores.

THE TWIN PLATFORMS

For Regular users Position CDM as the gold standard in taste amongst chocolates Creative Idea I will do anything to eat my CDM For Infrequent users Position CDM as the chocolate meant for everyone Chocolate = CDM Creative Idea You dont need any special reason to eat CDM

COMPETITIVE ENVIRONMENT
Influx of several brands at various price points offering greater perceived value While attitudes towards chocolates softened, consumers flirted with options

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THE CHALLENGE
Reinforce pre-eminence of the brand

THE EXECUTION
Range of new, international pack formats a CDM for every need. For Connoisseur o Bournville o Fruit & Nut Gifting - Gift packs In-home consumption Muh Meetha Karna

COMMUNICATION

Reinforce relationship of brand in the consumers life. Consumer speak o I eat CDM when I am happy, sad o CDM is always there with me o CDM mere mun mein rahata hai o CDM is almost like an ideal companion

The Brand Belief o CDM is the best tasting chocolate - a moment of pure magic o CDM is chocolate, the others are simply makes of chocolate

Presently Cadburys chocolates enjoy excellent image - that of an indianite, festival sweet, that can be used to celebrate anything and anytime. The exquisite packaging and the heavenly taste add to this image.Kuch Meetha Ho jaye campaign has positioned Cadburys as the ultimate sweet for all celebrations.

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POSITIONING OF CADBURY DAIRY MILK ECLAIRS

There are three main positioning buckets 1. Engaging -it experience make consumers take it when they are taking a break from studies 2. Unobtrusive natured products accompanies what you are doing 3. Taste\flavour CDME belongs to the 1st bucket.

BRAND IMAGE
clair is considered to be premium among all the clair\candy brands. Customers describe it as teeny, youthful, funny, and slightly naughty.

TARGET GROUPS OF ECLAIRS (CUSTOMER WISE)

The target group for CDME can be segregated into mainly 3 basic groups viz. kids, teens and adults as shown in the figure below. Their main area of revenue is the teens and hence the main area of focus too.

Chocolate\candy consumers

Kids - below 14

Teens

Adults

SOURCE: From Mr.Arpan Sur, Brand Manager, CDME Fig: Target Customers

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 CDMEs share :
The market share in each of the segments is as mentioned below: 50% of value from teens 40% from kids 10% from adults

They target teens because: Its the biggest market for candy. Have more buying power due to increased income\society norms They want to appear older, and prefer products that make them look older Because of Cadbury being very popular among this age with other offerings also.

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 DISTRIBUTION MANAGEMENT
Cadbury has its own set of distributers and super stockists who sell to wholesalers and retailers. The distribution hierarchy of Cadburys is huge as it is present across India. Their hierarchy is well distributed among the rural and the urban India as shown below:
Cadbury India Distributor

Small towns Superstockist

Cities Wholesalers

seller at town A

seller at town B

etc

Smaller wholesalers

Retailers

Consumers

PRICING STRATEGY
Pricing is one of the most important reasons for the success of clairs. It is available in the market in two variants one at the price of 50p and the other at the price of Re The biggest competitor that clairs has at the moment is Alpenlibe which is currently priced at 1 giving the 50p clairs a distinct advantage over the latter.

Eclairs

Alpenlibe

Chocolibe

50 p

Re 1

Re 1

Re 1 16

a. 50p + Solid coffee bite, alpenlibe etc b. Re 1 + solid non existent c. 50p + filling nestle clair, local brands d. Re 1 + filling CDME

Advertising and Branding Strategy

Eclairs advertising over the years has talked about the mesmerizing taste of clairs because of the Cadbury Dairy Milk chocolate it contains at its centre. The 'Kar De Dil Pe Jadoo' campaign illustrated this in a youthful college context. The clairs Crunch variant has also had an encouraging response from both teens and pre-teens. Currently, the chewy and the crunchy variants are both enjoyed by the clair consumer.

Current marketing Strategies

Advertisements have always been used as the biggest method for clairs to come and stay at the top. Even in a market that de-grows at a rate of 3% every year its the advertisement that has kept it ahead of the The latest advertisement to hit the market is that of the Chocolate ka meetha bomb to accentuate the new and improved clairs bursty, chocolatey goodness. Cadbury with its latest offering are also increasing their presence on internet by displaying MEETHA bomb messages through an application on orkut. With the upcoming festival season in India they are planning to increase the share among adults by promoting the Cadbury clairs gift packs for festive occasion with their highly successful kuch meetha ho jaye campaign. Apart from this they are also exploring the idea of launching a premium product for Rs 2 in the Indian market.
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Marketing Environment for Cadbury

Economic Scenario: India, Bharat & the Macro -environment Real average household income has doubled since 1985. 12 th largest consumer market right now will become 5th largest consumer market by 2025. Middleclass will swell from 50 million in 2005 to 583 million in 2025. Real rural income growth per household will accelerate from 2.8% over the past two decades to 3.6% over the next two decades. Indian spending patterns will also evolve; spending on basic necessities will decline in relative importance, while spending on communication and healthcare growing rapidly. Estimations are that 80% of the consumption growth will come from increasing incomes, 16% will come from increasing population, while only a 4% will come from changes in household savings pattern. Current scenario; 57% of consumption is rural and 43% is urban. But by 2025; 62% consumption will come from urban areas and rest rural. This is because in future more rural towns will get classified as tier 2 or 3 cities. Competitors, Confectionaries and the Micro -environment

Cadbury has been voted the Readers Digest Most Trusted Brand by consumers of Australia and New Zealand for five and six consecutive years respectively. From soft fruity jellies to hard-boiled sweeties, from cough drops to caramels there are many different members of the candy family. Candy represents over 30% of the global confectionery market. 46% of Cadburys revenue comes from chocolate and cocoa beverages and 33% from gums. 21% comes from candies. The industry is dominated by Cadbury with an enviable market share of 70 percent. Nestle follows next with a poor 20 percent market share. Parry & Parle are the other active players. The 22,000 tonne-per annum chocolates industry can be classified as bars, counts, panned varieties clairs & assorted
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chocolates. The bars or slabs also termed s molded chocolates is the largest segment in the industry accounting for 37% of total chocolate market. The most popular brand in this segment is Cadbury Dairy Milk. Other leading brands include Premium & Milky bar of Nestle, Truffle of Cadbury & Amul Milk Chocolate of the Gujarat Co-operative Milk Marketing Federation (GCMMF). A duopoly of Cadbury & Nestle dominates this segment with 70 percent & 23 percent shares respectively. Cadbury clairs has been monopolizing the clairs segment, which has a 20 percent share in the chocolate market for nearly three decades. However, since 1991, it has been facing stiff competition from Parle Products Melody. Cadbury is once again a leader in this segment with a 58 percent share. But Parle & Parry with 15 percent shares are also well entrenched. Coffee Bite, Lacto King & Coconut Punch are the leading brands from Parry. Nestle has only a 10 percent share in the clairs segment. Chocolates are more popular in metropolitan cities where 15 out of every 100 citizens consume chocolates. The consumption in towns is around 10 percent while it is as low as 2 percent in the villages. The industry is in the Fast Moving Consumer Goods (FMCG) sector, a hot favourite on the bourses. But, chocolates along with ice-creams, wafers, drinks & biscuits are quite sensitive to consumers changing preferences. They operate in a branded impulse market & have to spend heavily on advertisement campaigns to sustain the consumer interest in their products. The players in the industry vie with one another to book large sign boards near bus stops, railway stations, cinema houses, schools, colleges, etc. so that their products have a greater visibility. CIL may soon be the global manufacturing base of the Group. But, Cadbury decision launch one new product every year (in fact, it launched three in 1998) is surprising since many of his brands like Mickey-Donald Wonders, Fruit & Nut, Roast Almond & Nut Butterscotch have not had a good response from customers. The budget of 2000 added a sour taste to this industry. The excise duty on chocolates has been doubled from 8 to 16 percent since then. This has adversely affected the bottom-line of the players. Cocoa powder & other food preparations containing cocoa waffles & wafers coated with chocolate will

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now fall under MRP-based excise assessment. The dividend tax has also dampened the spirits of chocolate MNCs as they have a dividend payout as high as 80 percent. Consumers are increasingly are looking for naturalness. So it purchased Green & Blacks, the organic chocolate company, and The Natural Confectionery Co., a company that uses completely natural ingredients. We are also seeking to replace many of the artificial colours and flavours in our products with natural colours and flavours; another trend is health and wellbeing. One of the reasons that invested in the chewing gum business was that it is a sweet snack with generally no calories and no fat. We believe that the chewing gum industry is being driven in part by consumers seeking a sweet snacking experience with low calories and low fat

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The way forward for CIL

Well established in the Indian market. The brand as well as its sub-brands would not have a decline stage in their product life cycle, as long as India and its economic growth do not reach its saturation level. Instead of aggressive promotional strategies and continuously bombarding the customer with information, concentrate on aggressive sales and distribution channels, to strengthen the rural consumer reach of CIL before rural consumption pattern gets dried up from the current 57% to a mere 38% by 2025. Also put substantial marketing effort to educate customer about the products available for the health conscious. The long term trend shows people will get more health conscious. Also spending on healthcare is going to increase. India is expected to have 57 million diabetes patients by 2025, thanks to erratic work schedules and improper food habits according to ASSOCHAM. So concentrating to sugar-lite products might be a good idea. Unlike common understanding of marketing heads, toffees & soft chewing sugar confectioneries do become close substitutes to chocolates. This happens not on the taste front but on the packaging front. Consumer will have more flexibility in buying Polo for Rs 5, than a packet of 100 clairs. Packaging has to be taken seriously. Keep current levels of emphasis on technical advancement intact; as it has helped in development of gums having long lasting flavours and other patentable ingredients. For example scope lies in clairs, can the ingredients be changed so that it gets easily dissolved in mouth and dont stick around the gums and teeth for too long?

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