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CADBURY DAIRY MILK
Group Presentation
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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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