CADBURY DAIRY MILK

Group Presentation

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Agenda
o Cadbury-company
overview
Dairy milk-brand
overview
o Frameworks applied
o Consumer behavior for
Chocolates 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 in
India
o Dairy Milk-flagship brand
started in 1905
o Contributes 10% of total sales
by volume globally
o 70% market share in India by
Cadbury
o 30% contributed by Dairy milk

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Chocolate Industry Analysis

Parameters for going for a particular Brand

Cadbury

21%

16%

Nestle

20%
23%

Amul
and
others

20%

TASTE

PRICE

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BRAND

ADVERTISEMENT

PACKAGING

Chocolate Market Analysis

using Porters Framework
Threat from new
entrants
Low as Large capital
requirement, existence
of economy of scale,
differences in products,
access to distribution
channels and existing
regulations

Supplier bargaining
power
moderate to high as
concentrated suppliers
(cocoa beans) and no
substitutes of inputs
present

Buyer bargaining
power

Rivalry
Rivalry between
top two brands
Cadbury and
Nestle but
market leader is
Cadbury

Moderate as number
of large volume buyers
and buyers relatively
low profits from the
product & presence of
switching costs

Threat from
substitutes
High risk of substitutes
from other chocolate
and non chocolate
snacks like candies,
sweets, cookies, ice
creams etc.

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SWOT Analysis for Cadbury

W
O
T

Brand Name
Market share of over 70 %
Financial strength
Pioneer in research of Cocoa Cultivation
Integrated campaigns
Quality and Value for money

Poor technology in India compared to current international technologies

Lower engagement with Rural population

Growing middle class and growing urban population.

Increasing gifts cultures
Substitute to Mithais with higher calories/cholesterol
Increasing departmental stores concept

Shift in Consumer buying behavior : Chocolates to Heavy Snacks

Threat from Imported chocolates

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Competition Analysis
o Main competitors are Nestle
and Amul
o Cadbury: Market leader &
Nestle: Market Challenger
o Cadbury and Nestle together
own 90% of market share

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Consumer Behavior
Punch line Preferences

20%

o Marketing Stimuli
o Campaigns Communication

20%

16%
25%
19%

SHUBH ARAMBH
KUCH MEETHA HO JAAYE
AAJ MEETHE MEIN KYA HAI
REAL TASTE OF LIFE
KHAANE WAALON KO KHANE KA BAHANA CHAHIYE

Group No-12 Section-G

o Real Taste of Life

o Khaane Walon ko
khaane ka Bahana
Chhayie
o Kuch Meetha Ho
Jaaye
o Pappu Pass Ho Gaya
o Shubh Aarambh
o Khaane Ke Baad
Meethe Mein Kuch
Meetha Ho Jaaye

Consumer Behavior
o Consumer Psychology
o Motivation
o Maslows Hierarchy of Needs: Need for chocolates is social in
India
o Others happiness, light snack, hunger, sweet craving are
some of the motivations

o Perception
o Perceived as sweet, warm & delightful
o Screening mostly through selective attention

o Learning
o Taste largely determines whether consumer will repeat or not

o Memory
o Words associated with chocolates according to Associative
Network Memory Model: warmth, love, sweet, tasty,
happiness, presents, birthdays
o Memory encoding attributed to taste & advertising

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Consumer Behavior
o Buying Decision Process
o Relatively quick
o Impulsive purchase depending
on availability and taste
preference
o Easily switching among brands
o Post Purchase Actions-largely
governed by consumers liking
or disliking of taste

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Targeting
o Full market coverage attempts
o Differentiated marketing strategy
o Campaigns and products aimed at targeting different market
segments
o For ex:
o Khane walon ko khane ka bahana chahiye
o 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 hai

o Target: To celebrate pay day/salary day with Dairy Milk

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Positioning

For kids across

India, the word
Cadbury is
synonymous with
chocolates

Dairy Milk
positioned as The
perfect expression
of love

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Kuch Meetha ho
jaye: The brand
wants itself to be
synonymous with
sweets

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Branding
o Brand naming
o Usage of Cadbury on all confectionary
products in conjunction with product brands

o Brand elements

Preference of Variety
16%
18%

15%
17%

o Catchy slogans and campaigns

16%

o Branding decisions
o Brand re-positioned itself to appeal to older
age-groups
o Brand Line extension by introducing many
variants-plain, silk, fruit nuts, crackle,
roasted almond, shots

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18%

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)

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Branding Strategy

Points of Parity

Points of Differentiation

Similarity of products make

points of parity important
for survival

Value differentiation
Image differentiation

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Product Analysis
o Packaging
o Change in Packaging over years:

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Pricing Strategy
o Chocolate industry characterized by
high volumes, huge expenses on
advertising, low margins, and price
sensitivity to some extent
o Products priced strategically to obtain
near maximum market penetration
o Aimed at capturing all income groups:
Offers standard as well as premium
category 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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THANK YOU
Q&A

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