MARKETING STRATEGY

BCG MATRIX:

BOURNVITA

QUESTION
STARS
MARKET GROWTH

MARK?
LIL CHAMPS

CASH COW DOG

BOURNVITA 5 STAR ACTI LIFE

RELATIVE MARKET SHARE

The BCG matrix diagram for Bournvita clearly shows that the product categories come under stars and most
of the others are question mark or cash cows. While chocolates are generally considered to be stars, Cadbury
has largest assortments in chocolates worldwide and in the category of confectionary items they rank second
world wide having highest market share. But bournvita 5 star is shown as cash cow which lies leaning
towards Dog as its not very well sought out.
Bournvita Biscuit categories comes under question mark. It is not shown in the BCG matrix above since its
considered to be an opportunity and doesnt have a large and extensive offering in this category for the
consumers to choose from. But the overall demand of biscuits remains positive.
Beverages business is a Star. Cadburys Bournvita is leading in the brown malted health drinks. Their only
competitors are Milo etc. Although Cadburys Bournvita is popular but their cold chocolates have very low
demand in the market and is due to the presence of players like Glaxosmithkline, Heinz etc. Therefor
Cadbury is not able to grab a large portion of the market.
For example Amul is a largest leader in this category.
Bournvita and lil champs come under stars as well. Though bournvita 5star is a chocolate presently under
cash cow which is leaning towards dog
Acti Life which was a protein supplement which did not sustain in the market.
Practical Use
For each product or service, the 'area' of the circle represents the value of its sales. The growthshare matrix
thus offers a "map" of the organization's product (or service) strengths and weaknesses, at least in terms of
current profitability, as well as the likely cashflows.
The need which prompted this idea was, indeed, that of managing cash-flow. It was reasoned that one of the
main indicators of cash generation was relative market share, and one which pointed to cash usage was that of
market growth rate.
This helps in the growth of Bournvita as a product and its

Distribution strategy:
In the Marketing strategy of Cadbury Although Cadbury is not so extensively considered in FMCG, they
were able to make the product available in the extreme regions Urban as well as rural areas
But they focused more on Urban markets. Products are made available through the C&F to wholesaler to
retailer and then to the end customer, which is actually a 3-tier distribution approach.

The Ansoff Matrix

Successful leaders like Cadbury understand that if their organization is to grow in the long term, they can't
stick with a "business as usual" mindset, even when things are going well. They need to find new ways to
increase profits and reach new customers .
Ansoffs model:
Marketing penetration strategy
Intense promotional activities which were conducted in schools like distributing free samples.
Encouraging consumers of soft drinks towards Bournvita.
Providing free toys or sport items.
Providing additional quantity in the usual packs by a certain percentage.
Marketing it as an energy boosting drink that could be had at any time.
Product development strategies:
Bournvita lil champs was specially formulated with scientifically proven ingredients. (Product
quality improvement)
It comes in different sizes like family pack and mini packs. (Product line extension strategy)

Diversification:
Bournvita got into biscuit market.
Entered Protein drink category by introduction of Acti-life.

SWOT:
Strengths:
Strong Brand equity in India.
Backed up by their parent company CADBURY.
 Appealing packaging.
Larger market share (43%) in brown malted drinks.
Weakness:
Inefficient penetration into rural market.
It was perceived to have less nutritional value as compared to its immediate competitors.

Opportunities:
Rural market of the country.
Malt food health market in India is Rs.7260 crores.
It is expected to grow at 20-25% per annum.

Threats:
Cut throat competition from Nestle, Amul, Horlicks who strive for market leadership.
Frequent repositioning might result in confusion among the consumers.

Advertising strategy:
In 1970s the brand was positioned as a product that helps in good upbringing. The brand used the
tagline: Goodness that grows with you.
During 1980s the brand changed its focus from upbringing to intelligence. The tagline was changed
to: Brought upright; Bournvita bright
In 1990s the brand felt that it should be focusing on health hence the tagline was changed to : Tan
Shakti, man ki Shakti
In the current millennia the brand has moved to the next level. Bournvita has identified confidence as
its core brand essence.
The brand line uses the tagline: Do you have Bournvita confidence
It launched Cadbury Bournvita quiz contest that began on April 12, 1972. Sponsored by Cadbury
India Bournvita, it is one of indias most famous quiz contests.

Online advertising
Key players:
Chaya Brian Carvalho was the CEO of online advertising and boutique which was headquartered in
Mumbai.
Carvalho set up the company with angel funding from the family owned Clear ship group.
The creative head , Nash Paul, now national creative director BC web wise took it higher and enviable
heights.

Porter's Five Forces is a simple but powerful tool for

understanding the competitiveness of your business
environment, and for identifying your strategy's potential
profitability.

Understanding Porter's Five Forces

The tool was created by Harvard Business School professor Michael Porter, to analyze
an industry's attractiveness and likely profitability. Since its publication in 1979, it has
become one of the most popular and highly regarded business strategy tools.
Porter recognized that organizations likely keep a close watch on their rivals, but he
encouraged them to look beyond the actions of their competitors and examine what
other factors could impact the business environment. He identified five forces that make
up the competitive environment, and which can erode your profitability.

This is useful, because, when you understand the forces in your environment or
industry that can affect your profitability, you'll be able to adjust your strategy
accordingly. For example, you could take fair advantage of a strong position or improve
a weak one, and avoid taking wrong steps in future.
Promotion:
Through television commercials
By associating themselves with cartoon network and shows like Power Puff girls and Dexter
laboratory.
In-house Advertising.
Cadbury introduced Bournvita Confidence Academy a reality show on pogo
Plastic mugs, chess games, ludo etc.
Bournvita Quiz Contest was hosted by Indian politician, author and television personality Derek
OBrian
Bournvita general knowledge book .
Online advertising played a key role in promotion.