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8/10/2019 Cadburydairymilkgroup 12 130926123758 Phpapp02

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CADBURY DAIRY MILK

Group Presentation

1Group No-12 Section-G


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Agenda

o Cadbury-companyoverviewDairy milk-brandoverview

o Frameworks applied

o Consumer behavior forChocolates buying

o STP & Branding

o Chocolates Product &Pricing

o Recommendations

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Company and brand overview

o British confectionery co.founded in 1824

o Second largest after Mars

o Began operations in 1948 inIndia

o Dairy Milk-flagship brandstarted in 1905

o Contributes 10% of total salesby volume globally

o 70% market share in India byCadbury

o 30% contributed by Dairy milk



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Cadbury

Nestle

Amulandothers

16%

20%

20%

23%

21%

Parameters for going for a particular Brand

TASTE PRICE BRAND ADVERTISEMENT PACKAGING

Chocolate Industry Analysis



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Chocolate Market Analysisusing Porters Framework

RivalryRivalry betweentop two brandsCadbury andNestle but

market leader isCadbury

Threat from newentrants

Low as Large capitalrequirement, existenceof economy of scale,

differences in products,access to distributionchannels and existing

regulations

Buyer bargainingpower

Moderate as numberof large volume buyersand buyers relativelylow profits from the

product & presence ofswitching costs

Threat from

substitutes

High risk of substitutesfrom other chocolateand non chocolate

snacks like candies,sweets, cookies, ice

creams etc.

Supplier bargainingpower

moderate to high asconcentrated suppliers(cocoa beans) and nosubstitutes of inputs

present



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SWOT Analysis for Cadbury

Brand Name Market share of over 70 %

Financial strength

Pioneer in research of Cocoa Cultivation

Integrated campaigns

Quality and Value for money

S

Poor technology in India compared to current international technologies

Lower engagement with Rural population

W Growing middle class and growing urban population.

Increasing gifts cultures

Substitute to Mithais with higher calories/cholesterol

Increasing departmental stores concept

O

Shift in Consumer buying behavior : Chocolates to Heavy Snacks

Threat from Imported chocolates

T



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Consumer Behavior

o Marketing Stimulio Campaigns -

Communication

o Real Taste of Life

o Khaane Walon kokhaane ka Bahana

Chhayieo Kuch Meetha Ho

Jaaye

o Pappu Pass Ho Gaya

o Shubh Aarambh

o Khaane Ke Baad

Meethe Mein KuchMeetha Ho Jaaye

20%

25%

19%

16%

20%

Punch line Preferences

SHUBH ARAMBH

KUCH MEETHA HO JAAYE

AAJ MEETHE MEIN KYA HAI

REAL TASTE OF LIFE

KHAANE WAALON KO KHANE KA BAHANA CHAHIYE



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o Consumer Psychologyo Motivation

o Maslows Hierarchy of Needs: Need for chocolates is social inIndia

o Others happiness, light snack, hunger, sweet craving aresome of the motivations

o Perceptiono Perceived as sweet, warm & delightful

o Screening mostly through selective attention

o Learningo Taste largely determines whether consumer will repeat or not

o

Memoryo Words associated with chocolates according to Associative

Network Memory Model: warmth, love, sweet, tasty,happiness, presents, birthdays

o Memory encoding attributed to taste & advertising

Consumer Behavior



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Consumer Behavioro Buying Decision Process

o Relatively quick

o Impulsive purchase dependingon availability and taste

preferenceo Easily switching among brands

o Post Purchase Actions-largelygoverned by consumers liking

or disliking of taste



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Targeting

o Full market coverage attemptso Differentiated marketing strategy

o Campaigns and products aimed at targeting different marketsegments

o For ex:

o Khane walonko khane ka bahana chahiyeo Target: widening chocolate consumption

o Kuch meetha ho jaye

o Target: to associate Cadbury with sweets

o Pappu pass ho gaya

o Target: encourage to celebrate achievements with Dairy Milk

o Aaj Pehli tarikh haio Target: To celebrate pay day/salary day with Dairy Milk



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Positioning

For kids acrossIndia, the word

Cadbury issynonymous withchocolates

Dairy Milkpositioned as Theperfect expressionof love

Kuch Meetha hojaye: The brandwants itself to besynonymous withsweets



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o

Brand namingo Usage of Cadbury on all confectionary

products in conjunction with product brands

o Brand elements

o Catchy slogans and campaigns

o Branding decisionso Brand re-positioned itself to appeal to older

age-groups

o Brand Line extension by introducing manyvariants-plain, silk, fruit nuts, crackle,roasted almond, shots

15%

17%

18%16%

18%

16%

Preference of Variety

CADBURY DAIRY MILK (NORMAL)

CADBURY DAIRY MILK (SILK)

CADBURY DAIRY MILK (FRUIT & NUT)

CADBURY DAIRY MILK (ROAST ALMOND)

CADBURY DAIRY MILK (CRACKLE)

CADBURY DAIRY MILK (SHOTS)

Branding



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Points of Parity

Similarity of products makepoints of parity importantfor survival

Points of Differentiation

Value differentiation

Image differentiation

Branding Strategy



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o Packagingo Change in Packaging over years:

Product Analysis



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Pricing Strategy

o Chocolate industry characterized byhigh volumes, huge expenses onadvertising, low margins, and pricesensitivity to some extent

o Products priced strategically to obtain

near maximum market penetrationo Aimed at capturing all income groups:

Offers standard as well as premiumcategory chocolates

o Convenient prices: in multiples of

5/10



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RECOMMENDATIONS

Bring out new products for health conscious people (low calorie,sugar free, etc.)

Continue to promote as substitute to mithai

Special packaging and variants for occasions and festivals

Introduce new flavours within the product line (e.g.-strawberry,

vanilla, etc.)

Opening of its own chocolate outlet in major cities

Adopt new marketing strategy to harness rural segment

Adoption of e-commerce for bulk purchasers



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Q & A

THANK YOU


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