Marketing Management

Project
Marketing Plan for Cadbury Dairy Milk
Submitted to: Dr Jones Mathew
Date: 29th July, 2019

Submitted by:
Group 14-B
Rushabh Tiwari ( P192B036 )
Sayali Nadhe ( P192B041 )
Ritika Saraf ( P192B067 )
Sriram Prakky ( P192B047 )

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 Table of contents
Title Page No.

1.0 Executive summary 3

2.0 Situation Analysis 4

2.1 Market Summary 4

2.2 SWOT 5
2.3 PESTEL 6
2.4 Porter 5 Analysis 8
2.5 Competition 9
2.6 Product Offerings 10
2.7 Distribution 11

3.0 Market Strategy 12

3.1 Objectives 12
3.2 Segmentation 12
3.3 Target Market 13
3.4 Positioning 13
3.5 Market Mix 14
3.6 Market Research 15

4.0 Financials 17

5.0 Controls 18

5.1 Implementations 18
5.2 Sales Force Hierarchy 19

6.0 References 20

7.0 Exhibits 21

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1.0 Executive Summary

Mondelez India Foods Private Limited ( formerly Cadbury India Ltd. ) is present in India for
over 70 years. The company introduced Cadbury Dairy Milk in India in 1948 and since then it
is one of the leading chocolates brands. Cadbury Dairy Milk, Cadbury Dairy Milk Silk,
Cadbury Celebrations, Cadbury Bournville, Cadbury 5Star, Cadbury Perk, Cadbury Fuse,
Cadbury Gems, etc are some of the company’s chocolate brand variants in India.
The main targeted customers are people who belong to the age group of 8 to 25 and to attract
them, Cadbury has run many advertisements and campaigns to create the awareness and boost
the sales. Cadbury being the most loved brand for chocolates across the country, the
competition for the brand image is not very severe but with respect to taste, variety and packing
Cadbury has to always keep up to the expectations of the customers. Cadbury as a company
must also focus on retaining the existing customers and also increase the customer base. This
increase can only happen with a structured marketing mix – a detailed 5 month plan, to increase
the sales as well as brand image. A preliminary survey was conducted on 13th and 14th of July.
2019, which made us understand what Cadbury as a company should focus on. Finally, a
structured financial report regarding the advertisements for both urban and rural areas were
tabulated, so as to have a rough estimate of the expenses spent of advertisements by Cadbury.

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2.0 Situation Analysis

2.1 Market Summary

Cadbury India Limited, a subsidiary of Mondelēz International Inc., has changed its name to
Mondelez India Foods Limited in 2014. It has five manufacturing units all over India. In
today’s growing market with an increase in per capita income of Indian consumers the demand
for chocolates is rising. Also with the lifestyle and income level change, people are moving
towards buying premium chocolates as well along with healthy chocolates.

Cadbury is India’s one of the most popular brands. Cadbury Dairy Milk, Cadbury Dairy Milk
Silk, Cadbury Celebrations, Cadbury Bournville, Cadbury 5 Star, Cadbury Perk, Cadbury Fuse,
Cadbury Gems, etc are some of the company’s chocolate brand variants in India. Cadbury with
its brand value, taste and emotional connect with people holds the market share of over 70%.
Dairy Milk alone holds 30% market share in Indian Chocolate market. Dairy Milk is the Gold
standard for Chocolates in India.

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2.2 SWOT analysis:

•Strong Brand Name & •Controversies

Brand Recall •Limited shelf life
•Strong Distribution •Lack of rural market
•Excellent Advertising penetration
•High number of SKU's

Strenghts Weakness

Threats Opportunities

• Market expansion in
•Increase in the rural areas
purchasing power of the •Nutritional Variants
consumer
• Consumers prefering
healthy bars

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2.3 PESTEL Analysis
POLITICAL:
 The industry has to fall in line with the constraints of food safety and standards
regulations
 Licensing and regulatory fees
 GST rate on chocolates reduced from tax slab of 28% to 18% but this reduction did not
bring significant impact on the reduction of prices due to increase in Cocoa prices
 Demonetization caused a cash crunch and therefore caused the year-over-year revenue
to slide

ECONOMIC:
 Rising disposable incomes with economic growth cause an increase in demand for
luxury food items like chocolates
 Inflation causes the increase or decrease of cost of materials as well as cash flows for
consumers

SOCIAL:

 Dairymilk has created its image not only as chocolate but as a sweet which people prefer
as a celebration of happy moments
 Changing lifestyle created an increased demand for dairy milk premium products
 Dairymilk with attractive packaging has provided consumers a gifting alternative to
sweets
 A new variant Dairy Milk chocolate bar which contains 30% less sugar has been
launched to attract health-conscious Indian consumers

TECHNOLOGY:

 Over the years, technology has changed Cadbury Dairymilk’s packaging process
starting with the new brew machines to blend coffee and cocoa gains which allow for
longer preservation.
 Supply Chain innovations like reduction in inventory pipelining have seen fast delivery
of the product to the consumers
 Options to purchase online

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ENVIRONMENTAL:
 Companies are pressurized to conform to environmental standards for
manufacturing, packaging or disposal, etc
 Also, companies need to be involved in CSR initiatives to compensate for the
environmental damage caused by them
LEGAL:
 Chocolates are highly regulated by FSSAI(Food Safety and Standards Authority of
India)
 Found in legal battles related to adulteration resulted in payouts. E.g Worms found in
Cadbury chocolate bar
 With an increase in Obesity and Diabetes problems, Health advocates have started to
take action against it

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2.4 Porter’s Five Forces:
Current category rivalry: High
 A large number of competitors with product offerings from cost-effective to premium
to protein bars available
 Dairymilk accounts for the highest market share followed by Nestle
 Premium global brands like Ferrero, Mars and Hershey’s have made significant inroads
in the Indian market
 The rising purchasing power of Indian consumers and changing lifestyle making it an
attractive segment for more companies.
Threats of New Entrants: Moderate
 Huge capital requirements and complicated supply chain make it difficult
 The income of Indian consumers is increasing due to which there is demand for
premium and dark chocolates, unconventional flavors and made for appealing
packaging which has allowed several new brands to enter the market.
e.g. Nestle, Mars, Hershey’s
Threats of substitutes: High
 Threat from both chocolate and non-chocolate products
e.g. Products like Chocolate biscuits, syrups, milkshakes
 Threat from health beneficial substitute protein bars containing nuts, raisins, etc
 Non-chocolate products especially sweets pose a major threat for the consumers who
prefer Dairymilk over sweet
 People who find snacks, fruits as an item of fulfilling
Bargaining Power of Buyers: Moderate to High
 A large number of brands with different SKUs with different prices available
 Some amount of brand loyalty with taste and emotional bonding
 No switching cost of buyers
Bargaining Power of Suppliers: Moderate
 A large number of suppliers
 Indian cocoa production is very low and insufficient as compared to demand and
therefore most of the raw material is imported.
 Differentiated raw materials in terms of taste (Foreign Cocoa is preferred by most of
the buyers as per the Indian taste) makes it more difficult to switch suppliers

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2.5 Competition
Chocolate is consumed by all types of age groups from toddlers, adolescents, young people to
middle-aged people. That’s why the demand for chocolate increases day by day and this makes
the chocolate industry highly competitive. Currently, in India, the chocolate industry is
dominated by two players – Mondelez India and Nestle India. Amul is endeavouring to build
its share. International Brands like Mars and Ferrero India are also carving their own niche in
the market. According to a survey in 2018, the Indian chocolate industry was worth US$ 1,495
Million and is expected to reach revenues worth US$ 3,281 Million, growing at a CAGR
of 14% during 2019-2024.
Although, there are many new players entering the market like Parle, ChocOn, Patanjali
etc but the key competitors are:
 Nestle – Nestle is a world-renowned brand with a presence in 189 countries. Its
chocolates like KitKat, Munch, BarOne, Milky Bar, etc have a market share of
24%. Nestle spends efficiently on Research and Development, nearly 1.72
billion Swiss Franc (in 2017) and owns an extensive and diversified distribution system
that is not only penetrated in urban areas but also rural regions.
 Amul – Amul chocolates enjoy 3% market share and they have benefitted from
Amul’s strategy of advertising the company as a whole instead of individual
products. One of the key strengths of Amul is its three-tier distribution channel.
 Mars – Mars Incorporated is an American company which sells chocolates like
Mars, Twix, Bounty, Snickers, Bounty, etc in India and has a market share of
1%. The company is working to strengthen its distribution network and build a
sustainable supply chain.
In spite of cut-throat competition in the FMCG sector, Mondelez India has secured 70%
of the market. Cadbury has a strong product portfolio and is blessed with fantastic brand
loyalty. One of its strategy of positioning itself as a gift has safely differentiated it from
major competitors. Cadbury’s amazing tagline “Kuch meetha ho jaye” resonates with
the Indian audience and provides excellent brand recall. Exhibit 1.A compares Cadbury
Dairy Milk with its competition in terms of price, sugar and different sizes available.

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2.6 Product Offerings
We conducted secondary research to understand what influences the decision to buy Cadbury
Dairy Milk. Taste is the most influential decision-maker, followed by Cost and Wrapping.

Variants
Cadbury Dairy Milk is available in the following variants:
 Plain
 Fruit & Nut
 Crackle
 Roast Almond
 Marvellous Creations
 Butterscotch Crunch
 Tropical Mango
According to our secondary research, Plain Dairy Milk is the most preferred chocolate (with
48.1% share), followed by Fruit & Nut (46.8% share) and Roast Almond (40.9%).

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2.7 Distribution
Cadbury has 5 manufacturing facilities which are owned by the company. They are located in
Thane, Induri (Pune), Malanpur (Gwalior), Bangalore & Baddi (Himachal Pradesh). It also has
4 major sales office located in New Delhi, Mumbai, Kolkata & Chennai. The company, with
the help of carrying and forwarding agents sends the products after manufacturing to re-
distributors. Cadbury’s Dairy Milk re-distributors sell directly to whole-sellers, retailers, and
modern traders like BigBasket, Grofers etc. in India. Cadbury's distribution network
encompasses 2100 distributors and 450,000 retailers in India. The company follows a diverse
distribution channel in its distribution network. Cadbury gets benefitted from this channel
because the more diverse distribution channels become the less bargaining power it leaves with
a single distributor. Mostly refrigerated trucks are used to transport Dairy Milk chocolates by
Cadbury; however, they even use the services of rail networks within the country to reach the
farthest cities in India.

Factory / Production Unit

Depot

C & F Agents

Re-Distributors

Retailers Wholesalers Modern Trade

Consumers

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3.0 Market strategy
3.1 Objectives
Cadbury’s Dairy Milk is a successful product in terms of market share and profitability.
However, to continue it’s significant impact, we suggest it should expand its rural reach to
boost volume sales. Rural India is a new market for Mondelez, which derives a substantial
portion of revenue from the cities. We suggest the company to focus on tapping unexplored
rural markets by using their small packing of chocolates like Dairy Milk ( Rs.5 ), 5 Star ( Rs.
5) etc. Apart from this, the company should follow a customer – engagement strategy to interact
more with the customers.

3.2 Segmentation
The company can target a group of customers who share a similar set of needs and wants
while segmenting the consumer markets. We have used Demographic and Psychographic
segmentation of Dairy Milk.

Demographic Segmentation
 Segmentation on Age - Cadbury Dairy Milk has a wide customer base in the age
group of 17 to 60 years or older as per our research.

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  Segmentation on Gender - While buying a Dairy Milk there has been segmentation
on the basis of gender. According to our survey, men consume more chocolates than
women.

 Segmentation on Income – Cadbury should keep the price of dairy milk reasonable
and affordable so that a person need not think much before purchasing. He/she can
easily buy it any time when they want to buy. With introduction of small packing,
Cadbury has been able to penetrate rural markets.

Psychographic Segmentation
In this segmentation, we suggest dividing the market on the basis of different groups based on
social class, lifestyle or personality characteristics. Here, Cadbury can cater to each and every
class of the buyers by keeping in mind their lifestyles and personality traits through multiple
variants of Dairy Milk.

3.3 Target Market

The main target of Dairy Milk is children and youth that are in the segments of occupation and
in the age group 8 to 25. Cadbury dairy milk commonly targets all types of customers whether
irrespective of their age and gender.

3.4 Positioning
Cadbury should make the position of its Dairy Milk chocolate product not only in the minds of
consumers but also in the market. To achieve this goal Cadbury should use different
promotional techniques through celebrity endorsements, electronic media, press media,
signboards, by giving discounts or by giving funds to welfare organizations which formed a
part of its CSR activity.

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3.5 Marketing Mix

The marketing plan will be effective from August 2019. The following is the summary of action
plans which we will implement in the next few months to keep the buzz around Cadbury Dairy
Milk going and highlight its promotional campaigns.
August: Our annual Rakshabandhan campaign promotes Cadbury’s Celebrations which
captures the true essence of Rakhi. The advertisement would be aired on TV and we would use
the evening slots for family channels. We would use Social Media platforms like Facebook,
Instagram and Twitter to engage with our audience by launching a campaign
#KuchPalBehenKeSang, where we would encourage all the brothers to share their best
moments with their sisters (using the mentioned #) and also, inspire them to create more
moments (if they haven’t so far).
September: In a country like India, Gurus are given the highest reverence. So, to mark
Teacher’s Day, we plan to introduce a new style of expressing feelings to the teachers. In every
chocolate, we would put a small personalized note for a teacher (just like a fortune cookie)
which will convey the giver’s feelings towards his/her teachers. These chocolates will be
limited stock.
Example: 1. Thank you for being a wonderful teacher, 2. You are my hero, 3. You are not just
a teacher to me, you are also an inspiration, etc.
October: Our gift packs capture the true spirit of Diwali and our aim is to encourage our
audience to move away from traditional Indian sweets for gifting and view chocolates as a
suitable offering to mark the occasion. Apart from TV advertisement which is again Cadbury’s
annual action, we would again use Social Media platforms to run a campaign
#KhushiyonKaTyohar where we will encourage the users to share pictures of themselves
exchanging Cadbury Gift packs using #KhushiyonKaTyohar.
November: Cadbury India has never introduced any promotional campaign to tap the rural
market. This could our chance to use Cadbury’s signature tagline “Kuch Meetha Ho jaye” to
promote the small Rs. 5 chocolate in the rural segment. We could change the tagline to be
“Chota Packet, Badi Khushiyan”. A new TV advertisement which can also be aired on Radio
(as TV and Radio is easily accessible in the rural area) will be made.
December: This marks the onset of winters in the Northern part of the country. Cadbury’s
Dairy Milk can be used in making different hot beverages like hot chocolate, Chocolate-
Caramel Chocolate, Creamy Caramel Mocha, etc. We should run an online contest inviting
recipes from the audience and best recipe winner gets to be featured in an advertisement with
our brand ambassador. This contest could have versions to it – like we can keep its kids only
contest, or along with beverages with can also include cakes. For such contests, the radio will
also go hand in hand with other mediums.

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3.6 Marketing Research

To identify the consumer’s choice and who all are willing to eat Cadbury Dairy Milk we used
primary and secondary surveys as our marketing research tool. For the primary survey, we took
a questionnaire-based survey which helped us to understand the preferences of different
variants of Cadbury Dairy Milk and age group from the various demographics and
psychographics segments. The insights from primary data research such as age group, preferred
Variant in Cadbury dairy Milk, Discounts offered and Less sugar content chocolate preference
were helpful in developing the marketing plan to retain the loyal consumers and boost the sales
in future. (Questionnaire Attached with the Report)

Secondary Research:
In recent past, Cadbury was unable to maintain the emotional connect which it had created with
its iconic campaigns such as Kuch Khas Hai Kuch Baat Hai and Kuch Meetha Ho Jaye. So the
company came up with an entirely new team of sales head, human resources, and finance. The
move made by the company was to make the product available across every part of the country.
It targeted rural segments and invested around 300,000 visi coolers to chill their products and
make them available in small villages. The company also launched new products in mid-
premium as well as mass segments across its different brands like Silk Bubbly, Silk Caramello,
Silk Oreo and Golden Oreo at the premium end to Fuse at the mass end.

After a lot of many innovations, now Cadbury Dairy Milk has come up with it’s the latest
launch of 30% Less sugar Dairy Milk Chocolate.

As per ‘thehindustanbusinessline.com’ article published on 10th June 2019, Cadbury India has
launched it’s a most innovative new variant in the brand’s history which is Chocolate Dairy
Milk with 30% less sugar and will be sold along with the existing portfolio of the brand. The
broader purpose to take such decision is to empower consumers snack right and target health-
conscious consumers. A lot of efforts has been made by the company to ensure that the taste
of the product will not be compromised. The product will sell for INR 50 per 43-gram chocolate
bar, as against INR 40 for the regular Dairy Milk bar of similar size. The product is launched
in India and the United Kingdom market for now because these are the top markets of the
company.

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4.0 Financials

With an increase in population and changes in the lifestyle of the consumers, the chocolate
market is spreading into markets with high growth potential which is can give way to the
growth strategy for Cadbury. Chocolate consumption in rural areas is increasing as compared
to urban areas. As a part of our budget, we suggest having a separate budget for urban and
Rural area as the cost differs in two segments.
Different Costs Urban City (Delhi) Some small town in Bihar
TV advertisement 15 crores (Exhibit 2.A)
Billboard Advertising Hoarding in Connaught Bus Shelter = Rs 5,000 per
Place = Rs 50,000 per week week
Newspaper Advertising Hindustan Times = Rs. Dainik Jaran = 399,800
1,093,400 (Fixed Size) (Fixed Size)
Radio Advertising Rs. 130 per second (RED Rs. 16 per second (Radio
FM) City)
Digital Marketing 1 crore (equivalent to 15% -
of the budget)
Source: www.mediaant.com

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5.0 Controls

5.1 Implementations
 Company like Cadbury should maintain the same quality to retain the loyal customers.
A chocolate manufacturing company must always keep a check on quality and the
hygiene that is been maintained. After a certain period, insects are formed in the
chocolates. So with the use of technology, Cadbury can find out a better ways to serve
a better quality and a hygiene product always.
 On all the other special occasions, Cadbury should also provide their customised
chocolates.
 Since Cadbury Dairy Milk is an established FMCG brand, it requires constant
engagement with consumers. This can be done via active social media interaction by
contests, feedback/reviews, etc to ensure customer satisfaction and loyalty.

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 5.2 Sales Force Hierarchy

Chief Marketing
Officer

National Sales Product

Manager Manager

Zonal Sales Zonal Sales Zonal Sales Zonal Sales Promotional

Manager North Manager South Manager East Manager West Manager

Regional Sales Digital

Manager Marketing
Manager

Area Sales Sales

Administrative Communications
Manager
Manager Manager

Pallet Territory in- Distributor or Media

Salesmen charge Salesmen Production
Manager

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6.0 References

 Imarcgroup.com, (2019). Indian Chocolate Market - Industry Trends, Share, Size,

Growth, Opportunity and Forecast 2019-2024. [online] Available at:
https://www.imarcgroup.com/india-chocolate-market [Accessed 29th July. 2019]
 Bhasin, H (2019). Marketing Strategy of Cadbury. [online] Marketing91.com.
Available at: https://www.marketing91.com/marketing-strategy-of-cadbury-cadbury-
marketing-strategy/ [Accessed 29th July. 2019]
 Bhasin, H (2019). SWOT Analysis of Dairy Milk. [online] Marketing91.com.
Available at: https://www.marketing91.com/swot-analysis-dairy-milk/ [Accessed 29th
July. 2019]
 Pannaga, J (2019). SWOT Analysis of Dairy Milk. [online] Academia.com. Available
at:https://www.academia.edu/38098042/SWOT_Analysis_of_Cadbury_Cadburys_Stre
ngths [Accessed 29th July. 2019]
 Citethisforme.com, (2014). PEST Analysis of Cadbury. [online] Available at:
https://pestleanalysis.com/pest-analysis-cadbury/ [Accessed 29th July. 2019]
 Oliver, N (2012). Cadbury develops temperature tolerant chocolates. [online]
Confectionery.com. Available at:
https://www.confectionerynews.com/Article/2012/11/21/Cadbury-develops-
temperature-tolerant-chocolate [Accessed 29th July. 2019]
 Tandon, S (2019). Mondelez launches Dairy Milk variant with 30% less sugar.
liveMINT, [online]. Available at:
https://www.livemint.com/companies/news/mondelez-launches-dairy-milk-variant-
with-30-less-sugar-1560185073536.html [Accessed 29th July. 2019]

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7.0 Exhibits

Amul Milk
Rs. 25 40 gms 55.0 + 40.0 Yes
Chocolate

Mars Rs. 40 51 gms 31.5 Yes

Exhibit 1.A

Price
Cost of
40-50 lakhs
Production
Rs. 6,640 per
Cost of
second (for
advertising
Star Plus)

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