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We wish to express our heartfelt thanks to
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  for his cooperation and guidance in
successful completion of the assigned project. My overriding debt continues
to be my sister who provided me with the time support and inspiration
needed to prepare this project

I am highly indepted to
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valuable guidance and support.

While making this project we have gained knowledge of how an organization

works day to day and how their polices regarding marketi ng and sales of the
products has been made and how they strive continuously in today·s
competitive environment to maintain and enhance their position in the
market.

Last but not least we are also thankful to all Cadbury India Ltd. family and
retailers who helped us during our project work.

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he Cadbury·s India·s number one chocolate is able to share with their

market insights based upon unparallel breath of chocolate experience.

he merge in 1969 with Schweppes and the subsequent development of the

business have led to Cadbury Schweppes taking the lead in both the

confectionery and soft drink market inside UK and becoming a major force

in the international market. Cadbury Schwepp es today manufactures

product in 60 countries and a trade in staggering 120.

his project is a sincere effort to look for the market potential in chocolate

and confectionery industry. A descriptive research procedure had been

applied to come to the conclusions of the project. A detailed questionnaire

had been prepared and the responses of the concerned people had been

collected for the analysis. he project later concluded in recommending the

market potential of the chocolate and confectioneries.

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he Cadbury·s Inc has taken the opportunity to offer us a broader view of

chocolate category. he Cadbury·s 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. he 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 inside UK

and becoming a major force in the international market. Cadbury

Schweppes today manufactures product in 60 countries and a trade in

staggering 120. he 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 remember as the story of ´he taste of lifeµ. c

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Our main objective of the study on this project is to

demonstrate the market segmentation and strategies of

Cadbury India Ltd and comparison with major competitor.

o arrive at my findings I have done few analyses:-

(a)cSWO Analysis

(b)cî S Analysis

(c)c Market Segmentation

(d)cMarket Survey

And also 5 î·s of Marketing:-

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)314 ² A once 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 producers of chocolate.

)35) ² By this year the business had changed from a grocery shop and
John Cadbury had become a manufacturer of drinking chocolate and cocoa.
his 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.

)36) ² 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.

)366 ² Saw a turning point for the company with the introduction of a
process for pressing the cocoa butter from the coca beans. his 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. he essence was advertised as ¶Absolutely pure therefore best·.

)378 ² 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. he 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.

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)388 ² In this year the business private limited company ² Cadbury

Brothers Limited. îrogress since the start of the century through the inter ²
war years onward has been rapid. Chocolate has moved being a ´luxuryµ
item to well within the financial reach of everyone.

)89: ² Cadbury has many famous brands with one of major success story
being Cadbury·s Dairy Milk chocolate launched in 1905 today Britain·s
favorite modeled 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. he 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 prominent 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.

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Milk chocolate for eating was first made by Cadbury in 1897 by adding milk
powder paste to the dark chocolate recipe of cocoa mass cocoa butter and
sugar. By today·s standards this chocolate was not particularly good as it
was very coarse and dry and was not sweet or milky enough for public
tastes.

At that time there was a great deal of competition in the U.K from
continental manufactures not only the French with their fancy chocolates
but also from the Swiss who were renowned for their milk chocolate. Led by
George Cadbury junior the Bourneville experts set out to meet the
challenge. A considerable amount of time and money was spent on r esearch
and new plant design to produce the new chocolate in much large
quantities.

A new recipe was formulated fresh milk and new production processes were
developed to produce milk ² chocolate not as merely as good as but better
than the imported milk chocolate.

Four years of hard work were invested in the project and in 1905 what was
to be Cadbury·s top selling brand was launched. hree names were
considered Jersey Highland Milk and Dairy Maid. Dairy Maid became Dairy
Milk and Cadbury·s Dairy Milk wi th its unique flavor and smooth creamy
texture was ready to challenge the Swiss domination of the milk chocolate
market.

By 1913 it had become the company·s best selling line and in the mid
twenties Cadbury·s Dairy Milk gained its status as the brand leade r a
position that it has held ever since. oday more than 250 million bars of
Cadbury·s Dairy Milk are made every year and sales reach over 100 million
îound in value.

While advertising and label design g-have changed with fashion and
considerable strides have been made in manufacturing technologies the

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recipe for Cadbury·s Dairy Milk its ¶glass and a half of full cream milk in
every half pound produced· is still basically the same as when it was
launched.

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Chocolate has been enjoyed by successive generation since the

manufacturing process was developed in the Victorian imes. Good
chocolatiers is an art form depending on recipe traditions which have grown
over the years. Chocolatiers have use their skills to make balanced rec ipe in
which all the ingredients combine to produced chocolate with all the
characteristics that enable full delicious taste to be enjoyed by the
consumers.

By today·s standards the first chocolate for eating would have been
considered quite unpalatable. I t was the introduction of the Van Houten
cocoa press from Holland that was the major break through in the chocolate
production as it provided extra cocoa butter needed to make a smooth
glossy chocolate.

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Milk ray has maintained its popularity in the changing world since the milk
chocolate assortment made with the famous Cadbury·s Dairy Milk chocolate
was first introduced in 1915.

he name ¶tray· derived from the way in which the original assortment was
delivered to the shops. Originally Milk ray was packed in five and as half
pound boxes arranged on trays from which it was sold loose o customers.
he half pound deep ² lidded box with the traditional purple background
and gold script was introduced in 1916 followed by one pound box in 1924.

With its stylish without frills presentation Milk ray was the assortment for
everyday not just special occasion and it represented the best buy in the
chocolate for millions of people. he pack design has been regularly updated
and the assortment itself has changed in line with consumers taste and
preferences.

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By the end mid ² thirties the Cadbury·s Milk ray assortment outsold all its
competitions and today it is still one of the most popular boxes of chocolates
in this country.

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Cadbury Schweppes plc a global beverage and confectionary giant with

annual sale of Rs 20ooo crores is the worlds number one non ² cola soft
drink company having bottling and partnership operations in 14 countries
and franchises of its brand in a further 86 countries around the world. Its
Hundred îercent subsidiary in India named Cadbury Schweppes Beverage
India (private) Limited (CSBIL) started operation in March 1995. he first
brand was launched was crush which was later followed by Canada Dry
Schweppes onic Water Schweppes Bitter Lemon.

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In the branded impulse market the share of chocolate in 6.6 and
Cadbury·s share in the impulse segment is 4.8 factor like changing
attitude higher disposable income a large youth population and low
penetration of chocolate (22 of urban population) point towards a big
opportunity of increasing the share of chocolate in the branded impulse
among the costly alternative in the branded impulse market.

It appears that company is likely to play the value game to expand the
market encouraged by the recent success of its low priced ¶value for many
packs·.

Various measures are undertaken in all areas of operation to create value

for the future.

New channel of marketing such as gifting and child connectivity and low end
value for money product for expanding the consumer base have been
identified.

In terms of manufacturing management focus is on optimizing

manufacturing efficiencies and creating a world class manufacturing
location for CDM and Éclairs. he company is today the second best
manufacturing location of Cadbury·s Schweppes in the world.

fficient sourcing of key raw material i.e. coca through forwa rd purchase of
imports higher local consumption by entering long term contract with
farmer and undertaking efforts in expanding local coca area developing. he
initiatives in the terms of development a long term domestic coca a sourcing
base would field maximum gains when commodity prices start moving up.

c Use of it to improve logistic and distribution competitiveness

c Utilizing mass media to create and maintain brands.

c xpand the consumer base. he company has added 8 million

new consumer in the current year and how has consumer base of
60 million although the growth in absolute numbers is lower than

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targeted the company has been able to increase the width of its
consumer base through launch of low priced products.

c Improving distribution quality by addres sing issues of product

stability by installation of visi coolers at several outlets. his
would be really effective in maintaining consumption in summer
when sales usually dip due to the fact that the heat effects
product quality and thereby consumption.

c he above are some steps being taken internally to improve future
operation and profitability. At the same time the management is
also aware of external changes taking place in the competitive
environment and is taking steps to remain competitive in the
future environment of free imports lower barrier to trade and the
advent of all global players in to the country. he management is
not unduly concerned about the huge deluge of imported
chocolate brands in the market place.

It is of the view that size of this imported premium market is look small to
threaten its own volumes or sales in fact the company looks at the tree
important as an opportunity where it could optimally use the global
Cadbury Schweppes portfolio. he company would be able to not only
provide greater variety but it would also be more cost effective to test
market new product as well as improve speed of response to change in
consumer preference through imports. he only concerns that the company
has in this regard is the current high leve l of duties which limit the
opportunity to launch value for money products.

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A research design is simply a plan or framework for a study that is used in
collecting and analyzing the data. his framework is to ensure that relevant
information is collected and that too depending upon the objectives of the
study.
he research design can be classified into three categories - xploratory
Descriptive and Casual :
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It seeks to discover new relationships emphasis on discovery of ideas. his
research is used when very little is known about the problem being
examined. xploratory research studies are also termed as formulative
research studies as its main purpose is to formulate a problem. xploratory
research is used here is flexible and the areas where this type of research
used are to know the:
c Brand preference
c Attitude of the consumers
c Market potential
c Buyer·s behaviour
c Consumer·s awareness.
he purpose of this type of research is to gain insight into problem. he
research design used for the project at hand is of exploratory in nature.
xploratory research is always based on small non-representative samples
and data obtained are subjected to qualitative analysis.

In this project Random Sampling is used and the sample size is taken as:
Sample Size : Retailers -300
Kids-350
Ladies- 100

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xploratory research helps to gather information about practical problems

in carrying out the research and to provide insight into and an
understanding of the problem confronting the researcher
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It attempts to determine the frequency with which something occurs or the
relationship between two phenomenon. It is a type of conclusive research
that has its major objective of describing something like market
characteristics or functions. Descriptive research gives a clear statement of
the problem specifies hypothesis and detailed information needs. it is
conducted for the for the reasons like to describe characteristics of relevant
group are associated and to make specific predict ions to estimate the
percentage of units in a specified population exhibiting a certain behavior to
determine the perceptions of product characertics to determine the degree
to which marketing variables. A descriptive design requires a clear
specification of who what when where why and way of research.

Descriptive research used the following methods: -

c Observation.
c Questionnaires
c Interviews
c xamination of records
Some of the examples are:
c market studies
c Market share studies
c Sales analysis studies
c Image studies.
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his design is often adopted in order to discover and determine the cause
and effect relationship. It is also experimental research as its major objective
is to obtain evidence regarding cause and effect relationship. It re quires a
planned and structured design. he main method of experiment research is

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experimentation and hypotheses are specific. xperimental research is

useful in cases where variables are manipulated in a relatively controlled
environment.

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Achieving accuracy in any research requires in depth study regarding the

subject. As the primary object is to study the market segmentation and

strategies secondary objective of the project is to compare Cadbury with the

existing competitors in the market an d the impact of Nestle on Cadbury the

research methodology adopted is basically based on primary data via which

the most recent and accurate piece of first hand information could be

collected. Secondary data has been used to support primary data wherever

needed.

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he main tool used was the questionnaire method. Further direct interview

method where a face to face formal interview was taken. Lastly observation

method has been continuous with the questionnaire method as one

continuously observes the surrounding environment he works in.

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F arget geographic area was Lucknow Ashiana and Sector K.

Fo these geographical area questionnaire was filled by 100 people the

questionnaire was a combination of both open ended and closed ended

questions.

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Fhe date during which questionnaires were filled was between six week.

FSome dealers were also interviewed to know their prospective. Interviews

with the honor of retailer of Cadbury were also conducted.

#Finally the collected data and information was analyzed and compiled to

arrive at the conclusion and recommendations given.



  

Used to obtain information on Cadbury and its competitor history current

issues policies procedures etc wherever required.

# Internet
# Magazines
# Newspapers

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1.c Very strong brand equity in India.

2.c Due to its 54 years presence in India ² has deep penetration ² 2100
distributors; 450000 retailers 60 mid urban (22 # ) customers.

3.c hree sectors; Chocs (70# share) Confec (4# ) food drinks (14 # -
leader in brown segment).

4.c Low cost of production due to economies of scale. hat means

higher profits and / or more competitors. Better market
penetration.

5.c Second best manufacturing location throughout Cadbury

Schweppes.



1.c îoor technology in India compared to current international

technologies (Godiva Mozart Fazer Dint Naushans etc...)

2.c Ltd. Key products only one central brand (CDM). îralines range
totally wising in India.

3.c ´Make in Indiaµ tag once the economy opens up wore and imports
rush in.

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1.c remendous scope for per capita consumption (160 gms of 8 ² 10

kg)

2.c Increasing per capita national income resulting in higher

disposable income.

3.c Growing middle class and growing urban population.

4.c Increasing gifts cultures.

5.c Substitute to ´Mithaisµ with higher calories/cholesterol.

6.c Increasing departmental stores concept ² impulse @ at cash

counters.

7.c Globalization: optimal use of global Cadbury Schweppes.

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a)c  $ :-

None. Due to low cost and highest brand equity it is today in India.

b)c  % :-

Globalization will being in better brands for upper end of the market
(Liest Monarch Godiva etc«).

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îrior to deciding on the communication strategy for Cadbury Dairy Milk it
was important to understand the habits and mindset towards chocolates. A
large scale usage and attitude study was conducted among adults. he
research revealed that:

Adults were primarily purchasers and not consumers of chocolates.

However as for most children·s product they exercised a strong influence
on the children·s consumption behavior. Adults acted as gatekeepers of
sorts when it came to food items. Considering the advertising history it
came as no surprise that chocolate were perceived as ´kiddyµ product and
certainly not part of the repertoire for prod ucts consumed socially.
Chocolate consumption among adults evoked feeling of self indulgence and
guilt.

Chocolates seemed to offer virtually no significant positive and certainly no

overt psychogenic benefits. Food and nutritive values associated with
chocolates were low. And in fact they were categorized as a hazard being
responsible for obesity dental and respiratory problems.

Brands images were undifferentiated and the category had low saliency
´can do withoutµ.

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he only variation was in the Rituals where communication had shifted
from and special occasion to every moment. A strong volume growth was
witnessed in the early 90·s when Cadbury repositioned chocolates from
children to adult consumption. he biggest opportunity is likely to stem
from increasing the consumer base.

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Satisfaction suffices. But delight dazzles the average company will

compete for customer by conforming to her expectation consistently. But the
winner will surpass them by constantly exceeding her expectation delivering
to her door step additional benefits which she would never have imagined
possible. Cadbury·s offer such product. he wide variety products offered by
the company include:

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1) Dairy Milk

2) Fruit & Nut

3) 5 Star

4) Break

5) îerk

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7) Éclairs

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1) Bournvita

2) Drinking chocolate

3) Cocoa

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Make no mistake. Second î of marketing is not another name for blindly

lowering prices and relying on this strategy alone to increase sales
dramatically. he strategy used by Cadbury·s is for matching the value that
customer pays to buy the product with the expectation they have about
what the production is worth to them.

Cadbury·s has launched various products which cater to all customer

segments. So every customer segment has different price expectation from
the product. herefore maximizing the returns involves identifying right
price level for each segment and then progressively moving through them.

Dairy Milk Rs. 17

îerk Rs. 10

5 Star Rs. 10

Fruit and Nut Rs. 26

Gems Rs. 10

Break Rs. 5

Nutties Rs. 20

Bournvita (500 gm) Rs. 120

Drinking chocolate Rs. 70

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Own distribution network consist of clearing and forwarding (C&F) agents &
distribution stockiest. his network of distribution can either contact
wholesalers and which in turn retailers or the distributors can contact to th e
retailers directly.

Once the stock product reaches retailers the prospective customers can
have access to the product.

Cadbury·s distributes the product in the manner stated above.

Cadbury·s distribution network has expanded from 1990 distributors last

year to 2100 distributors and 450000 retailers. Beside use of I tom
improves logistics Cadbury is also attempting to improve the distribution
quality. o address the issue of product stability it has installed visi colors
at several outlets. his helps in maintaining consumption in summer when
sales usually drops due to the fact that the heal effects product quality and
thereby off takes.

Looking at the low penetration of the chocolate a distribution expansion

would itself being incremental volume.  he other reason is arch rival Nestle
reaches more than a million retailers.

his increase in distribution is going to be accompanied by reduction in

channel costs. Cadbury·s marketing costs at 18 * of total costs is much
higher than Nestlé·s 12* or even p ure sugar confectionery major îarry·s
11* . he company is looking to reduce this parity level. At Cadbury they
believe that selling confectionery is it like selling soft drinks.

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If an advertisement is to communicate effectively the receiver must at least
half want it to and be prepared too take step toward the sender. ffective
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.

o penetrate into the inner recesses of her memory communication must

first ensure exposure grab her attention evoke her comprehension grab her
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. he strategic response address 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. hereafter
it was the job of the advertising to communicate customer the wonderful
feeling that he could experience by re -discoursing the careful unself
conscious pleasure ² seeking child within himself ² a graft these feeling
onto the Ad campaign like *2c*c*c2cc"2c
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for CMD and *2*c c ,c ,**Hc <c -2c "2c 2c "2. for îerk have
been sure shot winner with the audience.

Whirl with the new launched temptations with the slogan ´oo o Shareµ 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 AM machines for the brand.

All ICICI·s AM a message flashes on the screen as soon as customer insert
his AM card. It tells the customer that this would be good time to get out of
her 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

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temptations. here will also be after dinner sampling in restaurants ² to

begin with 30 catteries in Mumbai have been selected.

he next round of activity will include the wafer -chocolate îerk and the
îicnic 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 sniffing up its key brand researching and improving

the newer products that haven·t taken off supported with high ad ² spends
that Cadbury hopes will see it emerges stronger after the current slowdown
as well as expand the market.

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In the 1970s consumers were ready to pay ´more for moreµ and luxury
goods flourished. In the 1980s consumers began to demand ´more for
sameµ and the discounting era grew strong. oday·s consumer dema nding
´more for lessµ and the winner will be that super value marketers«. Some
of today·s most successful companies recognize those customers are more
educated and able to recognize true customer value«

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than 12 years with ¶Gems Bond· advertising. Cadbury decided to too

teenagers with the ¶Smart Very Smart· campaign. But now the company
is retargeting children with its animated commercial. ´Gems are the best
brand to speak to children. Colorful chocolate buttons appeal most to
children and that is why Cadbury is re-targeting children.µ

:!
Crackle: it was the first Cadbury·s chocolate to have crunch in it. It
was targeted as a funky chocolate to add spark to life.

6!
îerk: in September 1995 Cadbury preempted the launch of Nestlé·s

Kit-Kat by rushing a new brand îerk into the market . îositioned
much further on the functional scale than 5 star îerk was meant to
be light snack-product for subduing the first pangs of hunger.

7!
Bournvita: positioned as tasty health drink. While its competitors

concentrated only on health aspect Bournvi ta combined the
nutritious value with taste.

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Data was tabulated manually and was also analyzed

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Main techniques used were:

Modal value was used to analyze the questions which has 2

or more choices as their answers.

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It was the market ² 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 199s?

%c c c * c * coming. And it wasn·t so much a re-launch
as it was a proce ss 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 ´Cadburyµ.

More proof of the chocolate is in the eating: two years into process CDM·s
market share at 253  with sale rising by an average 403 per annum.

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oday he Real aste of Life campaign which served

Up chocolate in general and COM 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 703  trying to win away customers from competitors in this
stagnant market wouldn·t help. hey had to find new customers people
who·d never bought chocolate before. Or they had to increase consumption
levelsµ. he 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. he market
research revealed the cause of the graying: chocolate wasn·t a snack in

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India. ´In mature markets chocolate straddle a continuum from boutique

product ² packaged raw indulgence ² to a casual foodµ. 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.

he 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.

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How? he company had over decades created a context of chocolate

consumption that was now chocking growth possibilities. ´he baggage of

the past was so overpowering that people didn·t get influenced by minor

shifts in the messageµ.

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 COM as a product that elders ²

typically parents ² bought for children ² typically their own.

But admittedly ² 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 relations hip with customers had relegated it to being a

special ² 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. he punch line ² *c
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unwelcome side ² effect: adults as research showed felt distinctly guilty

and embarrassed about eating chocolate whether alone or socially.

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´Not only were adults not indulging in chocolates but they were also actively

curtailing child consumptionµ solution? Forget children as the core

consumer. Universalize the product targeting the parents.

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Despite the Need o Clear he residual memory of CDM·s former

association caution prevented a big break with the p ast forcing Cadbury to

experiment with a combination of continuity and change. he process

entailed understanding the foundation of the brand since it was these that

would support the new structureµ. Out went the caring - and - sharing

element but the family context stayed. ´Cadbury had two pillars so it made

sense to change oneµ.

Chocolate should be eaten whenever you feel like. It was an impulse item so

why shouldn·t it be sold as one?µ. he first of the two commercial focused on

functionality purging the emotional element.

Is the storyline the father watches V engrossed gnawing away at a bar of

CDM. he children enter followed by the mother -but by that time the

father has completed the distinctly un paternal act of devouring the entire

bar. he 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. he last shot more CDM bars strew around casually.

he second commercial conveyed the same message depic ting four member

of a family doing their own thing on a Sunday afternoon each casually

munching away on chocolates. he less than ² subtle message: eating

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chocolate·s just an everyday affair without special occasion or relationship

coming into play. Desp ite their strategic intent both ads failed on pre ²

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.

here had to be magic romance love and emotion. hese elements had

been ripped away from the advertising. It was sans emotionµ.

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ven 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. îeople forbid their children from having chips but

gorge themselves. ´he implicationµ: -

´he 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 upµ.

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he crucial question that Cadbury was confronted with: what strategy

should it deploy to rejuvenate COM in a way that would appeal to the child

lurking within the adult? o inject a modern flavor into COM 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.

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´he consumer will always tell what his current belief system is not what it

should be Cadbury·s job to mould has habits and behavior in a way that

would increase consumption for product and brandµ.

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One of the tools Cadbury·s used was Jean ² Neal Kapferer·s Brand îrism

model to examine whether contemporary value systems offered a peg on

which the brand could be judge. he study disclosed interlaid a distinct

shift from collectivism to individuali sm with the pre ² 1990·s sacrosanct

values of filial and family love being overshadowed by the manifestation of a

larger need for self ² expression. ´here was a definite yearning to be free

childµ. herein lay the opportunity for both unshackling consump tion and

creating all-new association for CDM.

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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 ² and

equally enduring ² positive values: universal truths enduring human

values and universal moment of joy. o 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.

´hey left the connection to be made by the customerµ ´In the process they

were able to get viewer involvement and high levels of empathy. Nowhere did

they actually say you·re an adu lt you can eat it. Because nobody wants to

be toldµ. hus 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 chocolat e at his sweet-

heart departing in a bus-was created.

hat the consumption had to be liked before it could penetrate the cultural

resistance to chocolate consumption by adults was obvious. aking a

contrition stance Cadbury decided to test the commercial b eing devised by

O&M·s creative team not for the tire battery of likeability comprehension

credibility and behavior modification ² 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 her announcing an

immediate change in behaviorµ. But why likeability and comprehension?

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he very first ad in the campaign in 94 was ¶block ² 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 chocola te inside the pack that
children like. he mnemonic of 1 ½ glass reached to consumer through
every magazines poster .V newspaper.

he second ad was montage of vignettes from every day lives of young and
old which focused on showing a series of emotions . he ad created a being
out the child in the man created to bring out the child in the. he 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. he common refrain linking them was the adult
in a free child mode ² spottiness impulsive and carefree.

he ad was protested among adult·s trough focus groups. he ad received an
overwhelming response. It was high on likeability evoke d a great degree of
empathy and identification consumers· response were those me«« ´Feel
like that««.µ. ´ very feels like thisµ««.. Brand usage was perceived to cut
across all age groups and accessions. Consumers described dairy milk as
´« of all agesµ

´ at when ever you feel like it«you do not have to wait for an occasion.µ

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

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hands. he idea behind this advertisement was to show the nature of
chocolate as an impulse ² driven product. îost 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. he campaign
succeeded I 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 diffe rent things to different
people at different times but most importantly chocolate is Cadbury.

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And finally with the launch of the new colloquial advertising campaign
¶Khaannein Wallon Khaannein Ka Bahana Chahiya featuring MV VJ Cyrus
Broacha Cadbury India aimed to ¶substantially· increase penetration level of
the chocolate category in the next fe w years.·

he 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 ² driven product. he attempt now is to change the image
to make chocolate eatin g a regular habit.

he current estimated penetration level of the chocolate category is 198 in

the urban market. he objective behind the new communication on Cadbury
Dairy Milk is to make the chocolate category more socially and culturally
relevant and drive penetration in the process.

he new campaign has been launched in tandem with the old are@ Winning
¶Kuch Khass Hai· campaign and the media strategy is to let the two co ² exist
towards a common vision ´providing a Cadbury in every pocketµ.

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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 vita in the malted health drink
category which account for 24: of turnover.

here 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 îary·s Ravalgoan Candico îarle Joyoco India
and îerfetti the MNCs such as Joyco and îerfetti have aggressively
expanded their presence in the country in the last few years.

Malted food drinks category consists of white drink and down drink. White
drinks accounts for almost two third market of the 82000 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 down 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. he
company achieved a volume growth of 5.2: . hi s was achieved through
innovative marketing strategies and focused advertising campaign foe
flagship brand Dairy Milk. Net profit rose sharply by 41.8: to Rs. 520
million. Reduced material and energy cost and tioter 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 pork with 4:. For the Chow late Company Khane Walo Ko Khane
Ka Bhahana and the Karwa Chauth Sports are clear winners.

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Cadbury ´he Real Classic Milk îositioned as

Dairy Milk aste of Lifeµ Chocolate an affordable
enriched
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chocolate
Fruit n Nut îosition as Bar One
adults as an îositioned as
Creamy bar rendy Cool
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values
attached

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îerk/Break îositioned as a snacking
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consumption ´Have a
´hodi is îet Break Have
îoojaµ a Kit Katµ
5 Star
nergy bar
Reach for the
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1.c îoor technology in India co mpared to current international
technologies (Godiva Mozart Fazer Dint Naushans etc...)

2.c Ltd. Key products only one central brand (CDM). îralines range
totally wising in India.

3.c ´Make in Indiaµ tag once the economy opens up wore and imports
rush in.

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c A L Ries (1996) ´Focusµ Harper Collins îublishers Ltd.
c David A. Aaker (1991) ´Managing Brand quityµ he Free îress.

c David A. Aaker (1996) ´Building Strong Brandsµ he Free îress.

c îhilip Kotler ( ighth dition) ´Marketing Managementµ îrentice
Hall of India Ltd.

c Advertising and marketing Magazine

c he conomic imes ² ´Brand quityµ

c Company Literature
c Market survey and questionnaires
c Web site: === - *
c Web site:c===
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