IMC OF CADBURY

Manoj Yadav 10ex-021

Rizwan Khan 10ex-42
ACKNOWLEDGEMENT
The satisfaction and euphoria that accompany the successful completion of any
task is incomplete without the mention of people who made it possible. So I take
this as a great opportunity to pen down a few lines about the people to whom my
acknowledgement is due.

It is with the deepest sense of gratitude that I wish to place on record my sincere
thanks to Mr. C.K. Sabbarwal, who has given me opportunity, guidance and
valuable suggestions throughout the project.
INTRODUCTION
The Cadbury’s Inc has taken the opportunity to offer us a broader view of
chocolate category. The Cadbury India’s no.1 Chocolate is able to share with their
market insights based upon unparalleled breath of chocolate experience.

Cadbury has grown from strength to strength with new technologies being
introduced to make the Cadbury confectionary business, one of the most efficient
in the world. The merge in 1969 with Schweppes and the subsequent
development of the business have led to Cadbury Schweppes taking the led in
both, the confectionary and soft drink market intake UK and becoming a major
force in the international market. Cadbury Schweppes today manufactures
product in 60 countries and a trade in staggering 120. The Cadbury story is a
fascinating story of a family business that grew in one of the biggest, most loved
chocolate brand in the world. A story that you will remember as the story of “The
taste of life”.

OBJECTIVE
My main objective of the study on this project is to demonstrate the
advertisement strategies of Cadbury India Ltd.

And to arrive at my findings, I have done few analyses:-

(a) SWOT Analysis

(b) Marketing inside: Promotion

ABOUT CADBURY
THE LEGEND CALLED CADBURY

1824 – A business was opened in 1824 by a young Quaker, John Cadbury, in Bull
street Birmingham was to be the foundation of Cadbury Limited, now one of the
world’s largest producer of chocolate.

1831 – By this year the business had changed from a grocery shop and John
Cadbury had become a manufacturer of drinking chocolate and cocoa. This was
the start of Cadbury manufacturing business as it is known today. A larger factory
in Bridge Street Birmingham was rented in 1847, John Cadbury was joined by his
brother Birmingham and the business became Cadbury Brother of Birmingham.

1861 – John Cadbury resigned his business and handed over to his sons, Richard,
25 and George, 21 who after 5 difficult years almost shut down the business to
take up other vocation. Fortunately for generation of chocolate lovers, they
didn’t.

1866 – Saw a turning point for the company with the introduction of a process for
pressing the cocoa butter from the coca beans. This not only enabled Cadbury
Brothers to produce pure coca essence, but the plentiful supply of coca butter
remaining was also used to make new kind of eating chocolate. The essence was
advertised as ‘Absolutely pure, therefore best’.

1879 – Business prospered from this time and Cadbury Brother outgrew the
Bridge Street factory, moving in 1879 to a ‘Greenfield’ site some miles from the
center of Birmingham which came to call Bourneville. The opening of the Cadbury
factory in a garden also heralded a new era in industrial relations and employee
welfare with joint consultation being just one of the introduced by the pioneering
Cadbury Brothers.

1899 – In this year the business private limited company – Cadbury Brothers
Limited progress since the start of the century. Chocolate has moved being a
“luxury” item to well within the financial reach of everyone.
1905 – Cadbury has many famous brands with one of major success story being
Cadbury’s Dairy Milk chocolate launched in 1905, today Britain’s favorite moduled
chocolate bar.

Cadbury today is the market leader in the U.K chocolate confectionary market,
employing the most advanced processing technology and management
information and control techniques. The company is the confectionary division of
Cadbury Schweppes plc which is major force in the confectionary and soft drinks
international market.World - wide Cadbury is one of the pre – eminent names in
confectionary with impressive range of famous brands.

Quality has been the focus of the Cadbury business from the very beginning as
generations have worked to produce chocolate with that very special taste,
smoothness and snap, so characteristics of Cadbury’s chocolate.

Cadbury India SWOT analysis

Strength
• Cadbury Schweppes plc is a very profitable organization, generated revenue of
more than £6,508 billion (2005).
• It is a global chocolate brand built upon a reputation for fine products and
services.
• Cadbury Schweppes plc was one of the Fortune Top 100 Companies to Work For
in 2005. The company is a respected employer that values its workforce.
• The organization has strong ethical values and an ethical mission statement

Weaknesses
• Cadbury has a reputation for new product development and creativity.
However, they remain vulnerable to the possibility that their innovation may
falter over time.
• The organization has a strong presence in the United States of America, UK and
India. It is often argued that they need to look for a portfolio of countries, in order
to spread business risk.
• Cadbury's recall over 1 million chocolate bars over salmonella fears
• The organization is dependant on a main competitive advantage, the retail of
coffee. This could make them slow to diversify into other sectors should the need
arise.
• The company has no apprehensions of cannibalization of its chocolate brands.

Opportunities

• Cadbury company is very good at taking advantage of opportunities.

• The company has the opportunity to expand its global operations. New markets
with new products which are limited in particular region.
• Cadbury has decided to focus on a few of its key brands such as Cadbury Dairy
Milk, Bournvita, Eclairs and Halls to drive growth for the company.
• Co-branding with other manufacturers of food and drink, and brand franchising
to manufacturers of other goods and services both have potential.
• Cadbury India is attempting to increase the declining market for chocolate with
innovation, one of which is its sweet snack, Bytes.
• Brand ambassador Amitabh Bachchan for advertising there new products.

Threats

• Who knows if the market for Cadbury will grow and stay in favour with
customers, or whether another type of beverage or leisure activity will replace
coffee in the future?
• Health organization have so many barriers for new development
• Cadbury’s are exposed to rises in the cost of chocolate and dairy products.
• Entry into salted snacks was ruled out so it is important to do new innovation
and marketing research.

CADBURY(the marketing strategies of Cadbury India Ltd.)

Promotion
The Advertising Message

Chocolates have usually been viewed as something meant only for children.
Perhaps realizing that children would be attracted to any chocolate, irrespective
of the brand, CIL targeted adults with their advertising since the early 1990s.
Most, if not all, of Cadbury’s advertisements in India feature people over 18 years
of age.
The message that CIL seems to be attempting to put across is this: “In every adult,
there is a child - let that child express itself, give in to temptation, and satisfy his
or her desire to sink teeth into a smooth, creamy, delicious chocolate”. This
approach appears to be unique to Cadbury’s. CIL’s biggest competitor, Nestle,
often stresses the energy giving aspects of chocolate (for example, in advertising
for Nestle Charge), or on other attributes of the chocolate - taste in the case of
Nestle Crunch, as a light snack in the case of Nestle Bar One. Nestle specifically
targets children in the advertising for Milkybar, its white chocolate, again
emphasizing its energy giving properties.

To counter Milkybar, CIL has the Dairy Treat - where it targets the mothers of
children by trying to convey the message that its product is full of the goodness of
milk, and so equivalent to consuming milk itself.

Message Execution

Cadbury’s multi-award winning campaign - ‘The Real Taste of Life’ - launched in

the 90’s attempts to capture the child like spontaneity in every adult. From the
old man offering his wife a Dairy Milk chocolate to the dancing girl in a crowded
stadium, all reflect the impulsiveness and the spontaneity of the child in the adult.
Cadbury’s Perk, the light snack, addresses the hungry child in every adult, as
exemplified by the bride who nibbles at a Perk under her ‘pallu’. Cadbury’s Dairy
Treat conveys its message through the mother who refuses chocolates and other
treats to her son, till Dairy Treat comes along and quickly changes her opinion
about chocolates.
Catchy lines such as ‘The Real Taste of Life’, ‘Khane Walo Ko Khane Ka Bahana
Chahiye’, or ‘Reach for the Stars’, are also used extensively, and to good effect in
Cadbury’s advertisements.

Advertising Media

Television, the print media and posters have been the main media of
communication for Cadbury’s advertisements. However, with their understanding
of the peculiarities of the Indian market, CIL has also explored many new ways of
getting their message across to the consumers.
Sheet Metal Dispensers: This purple salesperson for Cadbury’s is found in almost
every shop stocking their chocolates. Since it is placed on the cash counter, it’s
design offers visibility, ease of vending, and protection from the elements. It is
also placed in the most appropriate position to cater to the impulse buyers. This
‘first’ from CIL has become so popular that is now the standard design for all
chocolate manufacturers.

Visicoolers: Visibility for chocolates drops in the summer, as they disappear into
the refrigerator. In high throughput outlets, the visicooler serves the need for
cooling while still maintaining the visibility of the product.
Jars: These are provided to small outlets, where they are prominently displayed.

Vending machines: These high visibility machines are provided at busy locations.
Presence in Amusement Parks: Cadbury’s also maintains a presence in many
amusement parks across the country, strengthening the association of its
chocolates with ‘fun’ occasions.

Effective advertising is rarely hectoring or loudly explicit…. It often both attracts

and generates arm feelings. More often than not, a successful campaign has a
stronger element of the unexpected a quality that good advertising shares with
much worthwhile literature.

To penetrate into the inner recesses of customer memory, communication must

first ensure exposure, grab his attention evoke his comprehension, grab his
acceptance and then extract retention competing with thousands of other units
of communication trying to do the same.

Finding showed that the adults felt too conscious to be seen consuming a product
actually meant for children. The strategic response addresses the emotional
appeal of the band to the child within the adult. Naturally, that produced just the
value vacuum that Cadbury was looking to fill. Thereafter it was the job of the
advertising to communicate customer the wonderful feeling that he could
experience by re-discoursing the careful, unselfish conscious, pleasure – seeking
child within him – and graft these feeling onto the Ad campaign like “Khane
Walon Ko Khane Ka Bahana Chahiye” for CMD and “Thodi Si Pet Pooja – Kabhi Bhi
Kahin Bhi” for Perk have been sure shot winner with the audience.

Whirl with the new launched temptations with the slogan “Too To Share” the
communication resolves around the reluctance of a person who’s got their hand
on a bar of temptation to let anyone else to have a bite. As well as outdoor and
radio ads, ad agency contract has created communication for cinemas and even
ATM machines for the brand.
All ICICI’s ATM a message flashes on the screen as soon as customer inserts his
ATM card. It tells the customer that this would be good time to get out of his
temptation since he/she is bound to be alone. Something familiar is planned for
phone-book as well. In cinemas, Cadbury has a message on-screen just before the
lights are dimmed to give them a chance to get their temptations. There will also
be after dinner sampling in restaurants – to begin with, 30 catteries in Mumbai
have been selected.

The next round of activity will include the wafer-chocolate Perk and the Picnic
bar, which has faced problems with its taste, because of the peanut it contains.
Milk treat has also been launched in a module bar form, just in time of Diwali
gifting market. Éclairs has got potential for much wide distribution, in a small
sweets that airlines, hostels, and up market retail outlet offer to guest and
customers.

Ad spend in 2000 was about 14% of sales and the management said that plans to
maintain as spend at this level in the current year also.

Ad since any discussion today would be incomplete without mention ‘e’ word, the
management plans to tap this new channel of marketing. Beside three company
website(i.e.www.cadburyindia.com,wwww.bourvita.com,www.cadburygift.com)
that the company has launched, it had also entered into various marketing
relationship with other portals, specially targeted during festivals and events such
as Valentines day , etc….

It’s a combination of spiffing up its key brand, researching and improving the
newer products that haven’t taken off, supported with high ad – spends that
Cadbury hopes will see it emerges stronger after the current slowdown, as well as
expand the market.
MARKET SEGMENT AND MARKETING STRATEGIES OF CADBURY
Cadbury’s Market Segment

Market place for any product is comprised of many different segments of

consumers, each with different needs and wants. Markets segmentation can be
defined in a number of ways such as:

 Demographic variables (e.g. Consumers age groups, gender, material states

income etc…)

 The lifestyle of consumers (i.e. their interests and activities) the benefits which
consumers look for in a product or on the occasions when the product might be
consumed.

 Cadbury takes into account all these factors when producing a range of
products. It targets different segments within the market, such as the.

 Break segment – products which are normally consume as a snatched break and
often with tea and coffee, for example Cadbury’s Perk and snack range.

 Impulse segment – these products are often purchase on impulse, eating these
and then. They include product such as Cadbury’s Dairy Milk.

 Take home segment – this describes product that are normally purchased in
supermarkets, taken home consumed at a later stage.

The Real Taste of Rejuvenation (transformation)

It was the market – leader, but sales inched along. It focused firmly on its target
segment, but the real buyer lay beyond. For seven long years, Cadbury’s Dairy
Milk chocolate suffered stagnancy even as other consumer products boomed. Just
how did the company rejuvenate an old brand to create the marketing megs-hit
of the 1990s?
It Stand First Among Second coming. And it wasn’t so much a re-launch as it was a
process of rejuvenation. Over a period of 12 months, starting February, 1994, the
Rs. 314 crore confectionery makers Cadbury embarked on the most outrageous
repositioning exercise in the recent history of Indian marketing. For, it
systematically dismantled the franchise that the company had built over 30 years
of its flagship brand, Cadbury’s Dairy Milk (CDM)-Cadbury’s Milk chocolate until
1986-destroying the very fundamental of generic association that had made
million of Indians refer to a bar of a chocolate as a “Cadbury”.

More proof of the chocolate is in the eating: two years into process, CDM’s
market share at 25%, with sale rising by an average 40% per annum.

The Diagnosis

Today, The Real Taste of Life campaign, which served up chocolate in general, and
CDM in particular, into the consciousness of adult, has already become a classic of
advertising and marketing. By 1993, Cadbury was desperately seeking growth for
the brand… “With a market share of 70%, trying to win away customers from
competitors in this stagnant market wouldn’t help. They had to find new
customers, people who’d never bought chocolate before. Or, they had to increase
consumption levels”.

The obvious solution, in a peculiar predicament. Despite low penetration, both

the brand and the category were displaying symptoms of age: faltering growth,
high recognition, and lack of excitement. The market research revealed the cause
of the graying: chocolate wasn’t a snack in India. “In mature markets, chocolate
straddle a continuum, from boutique product – packaged raw indulgence – to a
casual food”. So, Cadbury whipped up a growth solution that involved associating
the brand with snacking and functionally, which inevitably go together with high
consumption rates in the Western markets.

The next step: identify the barriers preventing consumers from chocolate as a
snack. A battery of test, both quantitative and qualitative, comparing chocolate
consumption to a basket of competitive products revealed an unmistakable
answer.
“Cadbury’s Was Caught In Its Own Trap”

How? The company had, over decades, created a context of chocolate

consumption that was now chocking growth possibilities. “The baggage of the
past was so overpowering that people didn’t get influenced by minor shifts in the
message”.

In fact, the behavioral and attitudinal patterns conveyed by the communication to

build the brand were proving restrictive. For, Cadbury had, using the traditional
demographic variables of age, socio-economic groups, and usage intensity,
positioned CDM as a product that elders – typically, parents – bought for children
– typically, their own.

But admittedly – enduring values of love and sharing, parental affection, and
reward that Cadbury had labored to associate with the brand, which had helped it
forge a relationship with customers, had relegated it to being a special – occasion
item, ruling out increased individual consumption. After all, special occasion item,
ruling out increased individual consumption. After all, special occasion were
meant to be a rare.

A typical Ad would show parents bringing home chocolate for their child. It would
never, ever, show the child, or the parent, buying it for himself or herself. The
punch line – Sometimes Cadbury’s Can Say It Better Than Words, and Nothing But
The Best Will Do – reinforced the notion, with an unwelcome side – effect: adults,
as research showed, felt distinctly guilty and embarrassed about eating chocolate,
whether alone or socially.

“Not only were adults not indulging in chocolates, but they were also actively
curtailing child consumption” solution? Forget children as the core consumer.
Universalize the product, targeting the parents.
The Tests
Despite the Need To Clear The residual memory of CDM’s former association,
caution prevented a big break with the past, forcing Cadbury to experiment with a
combination of continuity and change. The process entailed understanding the
foundation of the brand, since it was these that would support the new
structure”. Out went the caring - and - sharing element, but the family context
stayed. “Cadbury had two pillars, so it made sense to change one”.

Chocolate should be eaten whenever you feel like. It was an impulse item, so why
shouldn’t it be sold as one? The first of the two commercial focused on
functionality, purging the emotional element.

The first commercial storyline, the father watches TV, engrossed, gnawing away
at a bar of CDM. The children enter, followed by the mother-but, by that time, the
father has completed the distinctly unpaternal act of devouring the entire bar.
The children are shocked, where upon the produces another bar for them-only to
eat that up too. Finally, the mother brings another bar out of her bag. The last
shot more CDM bars strew around casually.

The second commercial conveyed the same message, depicting four member of a
family doing their own thing on a Sunday afternoon, and each casually munching
away on chocolates. The less than – subtle message: eating chocolate’s just an
everyday affair, without special occasion or relationship coming into play. Despite
their strategic intent, both ads failed on pre – airing tests.

Why for stators, children were outraged at the idea of a parent consuming
chocolate, while adults were down right angry at the notion of the father
depriving his children of chocolate bar. Just as important, consumer rejected the
idea that chocolate-eating could be equated with mechanical activities like
combing one’s hair. After all, chocolates were about feelings. There had to be
magic, romance, love and emotion. These elements had been ripped away from
the advertising. It has sans emotion”.

“Parent Are Different From Adults”

Even as the ad failed, however, they generated a valuable byproduct, in the form
of a new insight, into adult behavior. “Using transactional analysis on response,
Cadbury’s found that adult as parents behave very differently from adults as
adults. People forbid their children from having chips, but gorge themselves. “The
implication”:-

“The moment the adult was shown in the context of his role as a parent, all his
cognitive preconception about the product would come to the fore. He’d think
about the reasons why, and the block would automatically come up”. Tap child-
ego state within the adult, stimulating desire, spontaneity, and the craving for
instant gratification.

The Prescription
The crucial question that Cadbury was confronted with: what strategy should it
deploy to rejuvenate CDM in a way that would appeal to the child lurking within
the adult? To inject a modern flavor into CDM, they chose to create a new brand
identity, borrowing a leaf from marketing guru David Aaker, who decrees that
brand identity should establish a relationship between the brand and the
customer by generating value proposition involving functional, emotional, or self-
expressive benefits.

“The Ads Had To Be Linkable”

“The consumer will always tell what his current belief system is, not what it
should be Cadbury’s job was to mould his habits and behavior in a way that would
increase consumption for product and brand”.

“Impulse Drives Chocolate Sales”

One of the tools Cadbury’s used was Jean – Neal Kapferer’s Brand Prism model to
examine whether contemporary value systems offered a peg on which the brand
could be judge. The study disclosed, interlaid, a distinct shift from collectivism to
individualism, with the pre – 1990’s sacrosanct values of filial and family love
being overshadowed by the manifestation of a larger need for self – expression.
“There was a definite yearning to be free child”. Therein lay the opportunity for
both unshackling consumption and creating all-new association for CDM.

The Breakthrough

Having decided to barter the distinctly use selfish values of sharing and caring for
the suspiciously self-centered one of self-expression, Cadbury’s people insisted
that the rejuvenate be enriched with compensation – and equally enduring –
positive values: universal truths, enduring human values, and universal moment
of joy. To translate the brief into the commercial, they decide to simply portray
occasion of childlike-but not childish-behavior from adults, without explicitly
identifying adults as the target customer.

“They left the connection to be made by the customer” “In the process they were
able to get viewer involvement and high levels of empathy. Nowhere did they
actually say, you’re an adult, you can eat it. Because nobody wants to be told”.
Thus it was that, the montage of the child in the man-the old man kicking the
football; the pregnant woman carving a chocolate; young girl breaking into a
spirit; the young man tossing a bar of chocolate at his sweet-heart departing in a
bus-was created.

That the consumption had to be liked before it could penetrate the cultural
resistance to chocolate consumption by adults was obvious. Taking a contrition
stance, Cadbury decided to test the commercial being devised by O&M’s creative
team not for the tire battery of likeability, comprehension, credibility and
behavior modification – but only for the first two. “If asked upfront, the consumer
was hardly likely to consider the dramatically-different idea credible. Nor was
there much chance of his announcing an immediate change in behavior”. But why
likeability and comprehension? Simple: the first was meant to be the vehicle on
which the daring idea-that adults should enjoy chocolate-would ride into the
consumer’s psyche.
In other words, the commercial was meant to make him smile at first-and only
then realize the import once of the message, which is where the comprehension
had to be tested. “What was clear in this case was that likeability would have to
include identification and feeling warmth.”

Thodi Se Pet Puja, Khabi Bhi Kahin Bhi!

The Real Taste of Life Campaign

The very first ad in the campaign in 94 was ‘block – Buster’. It depicted the
essence of one and a half glass of milk pouring in to a boy Dairy Milk unique glass
and half in to a chunk icon shows the glass and a half of full cream milk flowing in
to the chunk of dairy milk conveying the deliciousness and taste appeal of the
gooey, creamy, smooth chocolate inside the pack that children like. The
mnemonic of 1 ½ glass reached to consumer through every magazines, poster,
T.V, newspaper.
The second ad was montage of vignettes from every day lives of young and old
which focused on showing a series of emotions. The ad created on bringing out
the child in the man . The old man kicking the football, the pregnant women
craving chocolate, young girls breaking into a spirit, the young man tossing a bar
chocolate at his sweet heart departing into a bus. The common refrain linking
them was the adult in a free child mode – spottiness, impulsive and carefree.

The ad was protested among adult’s trough focus groups. The ad received an
overwhelming response. It was high on likeability, evoked a great degree of
empathy and identification consumers’ response were those me…… “Feel like
that…….”. “Every feels like this”…….. Brand usage was perceived to cut across all
age groups and accessions. Consumers described dairy milk as “… of all ages”

“Eat, when ever you feel like it…you do not have to wait for an occasion.”

Dairy Milk had successfully enabled the free child in the consumer subsequent
adverting used the same communication strategy.

Kya Swaad Hai Zindagi Ka!

The next ad featured an on going match in the field. Think of a match India batting
against Pakistan. The score, 6 runs to win with 1 ball left and India wins the
match. The ad shows a girl dancing with jubilation on the cricket field when her
hubby hits the winning stroke. The award winning campaign, designed by O & M
was intended to rid the Indian chocolates eater of that guilt complex. The
advertisement suggested, through not in so many words, that it was ok to be seen
including in a chocolate in public. You could relate the sweetness of success of
chocolate. The ad draws attention to the actual eats experience.

The fourth in this series was the girl with on her hands. The ad focused on
showing how the girl relishes the Dairy Milk when she has mehandi on her hands.
The idea behind this advertisement was to show the nature of chocolate as an
impulse – driven product. Post campaign saw a great turn around. Dairy Milk
transformed in to a young full brand full of zest. It came to be recognized as an
expression of spontaneity and in pulse.

The campaign succeeded in softening attitude towards chocolate and lifting then
out of the ream of kiddies / special occasion only. It embraced a wide range
emotion all build around them that chocolate means different things to different
people at different times, but most importantly chocolate is Cadbury.

The New Campaign

And finally, with the launch of the new colloquial advertising campaign
‘Khaannein Wallon Khaannein Ka Bahana Chahiya featuring MTV VJ Cyrus
Broacha, Cadbury India aimed to ‘substantially’ increase penetration level of the
chocolate category in the next few years.’

The new campaign is worth noting as it clearly differ from the earlier one in terms
of rectifying the consumer perception about chocolate being an up market
impulse – driven product. The attempt now is to change the image, to make
chocolate eating a regular habit.

The current estimated penetration level of the chocolate category is 19% in the
urban market. The objective behind tne new communication on Cadbury Dairy
Milk is to make the chocolate category more socially and culturally relevant and
drive penetration in the process.
The new campaign has been launched in tandem with the old one Winning ‘Kuch
Khass Hai’ campaign and the media strategy is to let the two co – exist towards a
common vision “providing a Cadbury in every pocket”.

Thodi Se Pet Puja, Khabi Bhi, Kahin Bhi!

Chocolate Market Share

The Indian chocolate market is getting bigger and better. While on one hand, the
premium segment (composing imported varieties) is opening up on the other,
companies like Cadbury India are launching indigenous product made to
international standards. Of the 20,000 tonne chocolate market worth about

Rs. 400 crore, Cadbury account for about 70% followed by Nestle, with a share of
around 20%. Amul has about 5% of the market, with minor player taking the rest.
The battle, though, is between Cadbury and Nestle. Though with a much smaller
portfolio, Nestle is putting up a tough fight.

From a treat for kids, chocolate are now being positioned near meal substitutes,
thanks to the initiative taken by the Cadbury India during early nineties. The
market itself has become broader based, in the sense adults are an important
target segment now. The reposting of Cadbury’s Dairy Milk in 1994 as the ‘real
taste of life (through the Slice of Life and Cricket commercial by Ogilvy and
Mather) grew the entire milk chocolate by 20%, and gave the Cadbury’s range – 5
Star, Gems, Éclairs, Fruit & Nut, Crackle, Nutties, Butterscotch & Tiffns – a new
lease of life. In other words, it facilitated the repositioning of Cadbury’s sub
brands in the basket. Some of the strategic clicked, while other did not quite take
off.

The company is pushing the gifting segment, through occasion linked gifts.
Chocolates contribute to 64% of Cadbury’s turnover. Confectionary sales
accounting for 12% of turnover is contributed largely by Éclairs. The company
attempted expanding its confectionary product portfolio, with launch of sugar
based confectionary goodly and fruits, without much success. Cadbury also has a
strong brand bornvita in the malted health drink category which account for 24%
of turnover.

There exists an even larger unorganized market in the confectionary segment.

Cadbury has 4% of the market share in this segment. Leading national players are
nutrine, Pary’s Ravalgoan, Candico, Parle, Joyoco India and Perfetti, the MNCs
such as Joyco and Perfetti have aggressively expanded their presence in the
country in the last few years.

Malted food drinks category consists of white drink and brown drink. White drinks
accounts for almost two third market of the 82,000 for market south and east are
large market for drinks, accounting for largest proportion of all India’s sale.
Cadbury’s Bourn Vita is leader in the brown drink coca based segment in the
white drink segment Smith Kline’s Horlicks in the Nestle Milo , GCMMF nitramul
and other Smith Kline brand Boost, Maltova and Viva Cadbury bold 14% market
share in food drinks segment.

Despite tough market condition and increased competition Cadbury managed to

record a double digit (11%) top line growth in 2000. The company achieved a
volume growth of 5.2%. This was achieved through innovative marketing
strategies and focused advertising campaign flagship brand Dairy Milk.

Net profit rose sharply by 41.8% to Rs. 520 million. Reduced material and energy
cost and tighter control over working capital over working capital and capital
expenditure enabled the company to improve the profitability. Company added 8
million new consumers and saw its outlets grow to 4.5 lakhs and consumer to 60
million. In the food segment, Britannia is the leader brand with 21% among those
who expressed an opinion saying that they like advertising for the brand Cadbury
was clearly No.2 with 18% to which CDM throw in its weight with 13% and perk
with 4%. For the Chocolate Company, Khane Walo Lo Ko Khane Ka Bhanna and
the Karwa Cauth, Sports are clear winners.

Tied for the brand place are Amul, Parle and south based Arun Le Gram with 5%
each. Disappointment among bid brands Kissan and Maggi and Kwality Walls (1%)
each.