cadbury fuse case study

04/13/2023Symbiosis Institute of Telecom Management

QUIZ What are the stages of NPD? What are the stages of PLC? What are the strategies involved in

NPD? When did the sales of Cadbury decline

in the recent past? Mention the incident What were the objectives of fuse? How did the name ‘Fuse’ came into

existence? What are the top 3 countries in

confectionary market? Mention rank of the countries


CASE STUDY

BY

SAI PRANEETH

UDIT PANDEY

VISHRANT SHAH

VIVEK NAIR


WHAT IS A CHOCOLATE? A GENERAL TERM FOR THE PRODUCTS OF THE SEEDS OF THE

COCOA TREE USED FOR MAKING BEVERAGES OR CONFECTIONARY

HARVESTING:

EACH TREE GIVES 20-30 PODS. 1 YEAR OF HARVEST GIVES 450G OF CHOCOLATE.

RIPE PODS COLLECTED IN BASKETS BY HAND.

PODS ARE SPLIT OPEN.

SEEDS REMOVED,FERMENTED (WHITE PULP),DRIED AND SOLD.


Each of the podgive 20-30 beans, the pods weigh 500g and are 20cm in length.

BEANS ARE COATED WITH WHITE PULP AND ARE 2 cm LONG.


WINNOWING

ROASTING

GRINDING

PROCESSING Extract cocoa butter Pulverize into powder Ready to be made into chocolate

COCOA BEANS IN THE FACTORY


CHOCOLATE MAKING

BASE- COCOA AND COCOA BUTTER SUGAR AND CONDENSED MILK ADDED

Liquid Product

Evaporated to make crumb

REFINING (reducing the size of cocoa solid and

sugar) CONCHING(taste,texture,smell) TEMPORING(finished and glossy look)


GLOBAL MARKET TO BE AROUND 11O BILLION USD.

100 TONNES CONSUMED EVERY SECOND

INDIAN MARKET WORTH 5562 CRORES (400 Kgs PER MINUTE).

TO GROW BY A CAGR OF 23%. BY 2018 WILL BE AT 341609 TONNES.

THE MARKET


GLOBAL MARKET DOMINATED BY NORTH AMERICA AND WESTERN EUROPE.

BRIC NATION ACCOUNT FOR 55% GROWTH IN CONFECTIONARY GROWTH.

PERCEPTION OR MISCONCEPTION? 87 % MALES AND 91% FEMALES RELISH CHOCOLATE.

MISSION MONDE IS DERIVED FROM THE LATIN WORD FOR WORLD

AND DELEZ IS A FANCIFUL EXPRESSION FOR DELICIOUS.

INCREASE THE WIDTH OF CHOCOLATE CONSUMPTION WITH LOW PRICE POINT PACK

MAINTAIN MARKET AND IMAGE LEADERSHIP WITH MARKETING MIX STRATEGIES.

BE A SIGNIFICANT PLAYER IN THE GIFTING SEGMENT.



VISION PROMOTION OF BRANDS CARRYING MASS FRANCHISE

WITHOUT COMPROMISING QUALITY.

BETTER PRODUCT QUALITY AND PACKAGING

BETTER CAPITAL MANAGEMENT

INCREASE MARKETT PENETRATION ( ESPECIALLY RURAL MARKET)


INCOME – 3.9 MILLION USD.


CADBURY- History

Cadbury chocolates was started in Birmingham in 1824 by John Cadbury.

Cadbury Dairy Milk came up with the mix of milk and chocolate tray which is pretty much how the product still is.

No drastic change in the recipe of product but the packaging and the representation and prominence of the ‘glass and half of milk’

logo has changed over a period of time.

1904- A new recipe is perfected by George Cadbury for milk chocolate.

1905- Cadbury launches Dairy Milk onto the market.

1913- Dairy Milk becomes Cadbury’s best selling line.


Cadbury India- Introduction

Began its operations in 1948 by importing chocolates and then re-packing them before distribution in the Indian market.

It currently has a market share of 70% in the chocolate market and is way ahead of its competitors.

Sales

Cadbury 70%Nestle 16%

Others 14%


OFFICES IN INDIA HEAD OFFICE:MUMBAI

FACTORIES: MALANPUR(UP), BADDI(J&K), THANE, MUMBAI, BANGALORE

SALES OFFICES: DELHI, MUMBAI, CHENNAI, KOLKATA


THE EVOLUTION: DAIRY MILK


STAGES OF PRODUCT LIFE CYCLE

DEVELOPMENT INTRODUCTION GROWTH MATURITY SATURATION DECLINE


DAIRY MILK

Introduction

In the 1980’s CDM was positioned as the ‘perfect expression of love’, captured in memorable memory of love.

During the early 1990’s ,communicating that it was the real taste of chocolate.

In the 1994, came the path breaking ‘real taste of life’ campaign.

The strategy paid off- the brand Cadbury grew by over 40%.


DAIRY MILK

GROWTH 1998- The new stage of growth for the

brand deals with popularizing consumption in a social context ,especially in a more traditional settings like weddings.

‘Khaane walo ka khaane ka bahana chhaiye’.

Cadbury Dairy Milk aimed to substantially increase penetration levels with the award winning ‘kuch khaas hai’ campaign.

The brand penetrated into smaller towns and sales increase by 40%.


DAIRY MILK

MATURITY With Bachchan they also launched their

positioning of ‘Kuch meetha ho jaye’ bringing in the tradition of celebrating a joyous occasion in India with sweets and now Cadbury Dairy Milk in particular.

The ‘Pehli Tareek Hai’ campaigns talked about the importance of having Dairy Milk on your pay day.

‘Shubh Arambh’ ads have brought back the old charm of CDM with its very interesting insight of mixing the tradition with the youth.


5STARS LEADING KNIGHT IN THE CADBURY PORTFOLIO

2nd LARGEST MARKET SHARE – 14%.

5STAR AND 5STARS CRUNCHYS – WERE A HIT WITH THE MASSES.


CADBURY PERK LAUNCHED IN 1996.

TWO VARIANTS – XL,XXL

MINI LAUNCHED IN 2003 – 2Rs.


CADBURY CELEBRATION AIMED AT REPLACING TRADITIONAL MITHAAIS AND DRY

FRUITS.

HAS KEPT DIWALI AND RAKHI AS THE MAXIMUN SALE SEASON.


ECLAIRS FOUNDED BY A LOCAL CONFECTIONARY FIRM IN LONDON

IN THE 1960s.

A PART OF CADBURY BY 1971 TO BECOME THE SECOND LARGEST BRAND IN THE COMPANY.

IN 2006, LAUNCHED A CRUNCHY ECLAIRS WITH A HARD CARAMEL.


CADBURY GEMS ENTERED THE INDIAN MARKET IN 1968

THE SUGAR COATED COCOA CHOCOLATE HAS CAPTURED THE CONSUMER’S MINDS AND HEARTS ( ESPECIALLY KIDS).

STILL GOING STRONG.


CADBURY BYTES LAUNCHED IN 2004-05.

AVAILABLE IN REGULAR, COFFEE AND STRAWBERRY FLAVOURS.

IN 5 AND 10 Rs PACKS.

WHY DEVELOP NEW PRODUCTS FOR YOUR BUSINESS? Consumer "Needs and Wants"

Change

Product Reaches The End Of Its Product Life Cycle

Competitors

All Products Experiencing Problems

NEW PRODUCT DEVELOPMENT PROCESS

• Idea Generation

• Idea Screening

• Concept

• Development and Testing

• Business Analysis

• Prototype Development

• Market Testing

• Commercial-ization

APART FROM A GOOD IDEA, WHAT DO WE NEED FOR SUCCESSFUL PRODUCT DEVELOPMENT?

Production and

purchasing skills

SHOULD WE TRY TO DEVELOP COMPLETELY NEW PRODUCTS, OR TO IMPROVE EXISTING ONES?

In practice, most new products are improvements on existing products.\

Generally easier and less risky than developing completely new ideas

Better understanding of the technologies involved and customer preferences for that kind of product

Development process is usually less complex, requires less investment and can be completed more quickly.

CONCEPT DEVELOPMENT AND TESTING Businesses like to think in terms of a

'unique selling proposition' (USP) - a clear reason why customers should switch to your product

Prepare a product specification listing Effective design is wide-ranging as well

as fulfilling the product spec, it includes considering how component and processing costs can be minimized.

As the design progresses, you may have one or more pre-launch stages when you test the product.

BUSINESS ANALYSIS After product concept/marketing

strategy is developed, company can evaluate proposal’s business attractiveness

Estimating Total Sales Total sales is made up of:

1. First time sales2. Replacement sales 3. Repeat sales

Estimating Costs & Profits: Costs estimated for 5 year period jointly

by 1. Research & Development 2. Manufacturing 3. Marketing 4. Finance

Based on the above data maximum investment exposure,payback period,break even point and risk analysis are determined

IS IT WORTH CREATING A PROTOTYPE? To use a prototype to assess customer

reaction to the look and feel of a product

Test for Functionality Test for Psychological aspects such as

color,size and taste Test for Looks/Styles. Test for Price Fitment.


THE SNACK MARKET

•Confectionery - £4.9bn (chocolate sector £3.4bn)•Biscuits - £1.7bn•Snacks - £1.2bn•Crisps - £1.1bn•Ice Cream - £0.8bn.


FUSE…• The ‘Fuse’ concept was developed after

market research identified the growth of snacking and a definite gap in the market for a more chocolaty snack.

• The name fuse was chosen to communicate the fusion of snacking ingredients.

• Extensive testing was done by mixing various ingredients and the results were multiplied into repeat purchase and the volume of bars required were calculated.

• 82% of people rated it as excellent, and 83% said they would buy it again.


LAUNCH STRATEGY Package design and brand name. Launched on a Tuesday, 24th September

1996 christened as the ‘Fuseday’. Extensive advertisements. 1st time in 20 years Cadbury had a

nationwide launch. Sales of over 40 million bars in the

opening week.


POST LAUNCH Important to analyse the product after

launch. Chocolate market grew by 9% in 1996 19% of this growth is attributable to

Fuse- a brand which was there in the market for only a quarter of a year.


WHAT HAPPENED TO FUSE-BAR? Stopped production in 2006. Increase in visibility of rival products At the same time lack of

advertisements of Fuse.

cadbury fuse case study

Business

milk chocolate

chocolate market

market global market

mix of milk

market share

george cadbury

cocoa beans

cadbury india introduction