An Introduction2

CONTENT • Objective • Cadbury: An Introduction • Cadbury Bournvita • Product Details • India: The Growing market for malted food drinks • Marketing Practices • Segmenting strategy • Defining the key target audience • Positioning • Place • Promotion

• Tough roads ahead • Do you know

oBJECTIVE To throw light on the Cadbury’s flagship malt based food drink “BOURNVITA” and marketing strategies practiced by the company to promote it for the understanding the marketing practices to make a successful brand.

An Introduction Cadbury began its operations in 1948 by importing chocolates and then repacking them before distribution in the Indian market. After 59 years of existence, it today has five company-owned manufacturing facilities at Thane, Induri (Pune) and Malanpur (Gwalior), Bangalore and Baddi (Himachal Pradesh) and 4 sales offices (New Delhi, Mumbai, Kolkota and Chennai). The corporate office is in Mumbai

Core Purpose "Working together to create brands people love" captures the spirit of what we are trying to achieve as a business. We collaborate and work as teams to convert products into brands

Vision To align with our core purpose, Cadbury India has defined its Vision as "Life Full of Cadbury and Cadbury Full of Life".

Cadbury India will participate in many spaces of consumer life through a cache of product offerings - be it chocolates or snacks or gum. We believe that work and fun can co-exist beautifully. Therefore at Cadbury India, it's all about work hard, play harder!. We bring moments of delight to our consumers everyday and every time. Therefore, we strongly believe that the people who create these products should also have fun while doing so.

Cadbury Bournvita was launched in year 1948. It is among the oldest brands in the Malt Based Food / Malt Food category with a rich heritage and has always been known to provide the best nutrition to aid growth and all round development. Throughout its history, Cadbury Bournvita has continuously re-invented itself in terms of product, packaging, promotion & distribution. The Cadbury lineage and rich brand heritage has helped the brand maintain its leadership position and image over the last 50 years. The brand has been an enduring symbol of mental and physical health ever since it was launched in 1948. It is hardly surprising then, that Bournvita enjoys a major presence in the Malt Food market. Given its market share of 17%, Cadbury Bournvita reaches across hundreds of cities, towns and villages through 3,50,000 outlets in India. It is a universal truth that mothers attach a lot of emotional importance to nourishment while bringing up their children. However, children always look out for the tastiest option to make their daily dose of milk more enjoyable.

Cadbury now offers two options to capture this appeal: Cadbury Bournvita, with its popular chocolate taste, and its latest offering, Cadbury Bournvita 5 Star Magic, leveraging the rich chocolate and caramel flavor of Cadbury 5 Star. Cadbury Bournvita advertising has moved with the times to reflect the changing needs of the consumers. During the '70s the communication centered on 'Good upbringing' and Bournvita became an essential building block for childhood. "Goodness that grows with you" was the campaign idea that communicated this thought. In the 80's the focus shifted from 'Upbringing' to 'Intelligence' with the more aggressive "Brought up right, Bournvita bright" campaign, which was very successful during its time. In the early '90s all brands in the category provided purely physical benefits like nourishment, energy and growth. It was at this time that Bournvita decided to raise the bar by promising physical and mental benefits. This resulted in the famous Tan Ki Shakti, Man Ki Shakti Campaign which became an anthem for the brand. In the new millennium, keeping pace with the evolving mindsets of the new age consumers, Cadbury Bournvita is about arming consumers with Confidence to take on physical and mental challenges that nobody else can, resulting in one of the most successful advertising campaigns which is based on 'Real Achievers who have grown up on Bournvita'.

Product Details Ingredients: Malt extract, sugar, cocoa powder, milk solids, liquid glucose, vitamins, permitted emulsifiers, sodium bicarbonate, mineral & salt.

Bournvita’s nutritional facts: 1) Gives protein. 2) Provides Vitamin A, Vitamin C & Vitamin B12. 3) Contains Calcium, Iron & Folic Acid. 4) It also provides our body with Niacin, pyridoxine, Riboflavin, & Thaimin which is very essential for the proper working of our nervous system.

Cadbury now offers two options to capture this appeal: Cadbury Bournvita super charger, with its popular chocolate taste, and its latest offering, Cadbury Bournvita 5 Star Magic, leveraging the rich chocolate and caramel flavor of Cadbury 5 Star. Bournvita Super Charger Pack Price (Rs.) 200gm 60 500gm 123 1kg 210 500gm Refill Pack 116

Bournvita 5 Star Magic Pack price 200gm 60 500gm 123 1kg 210 500gm Refill Pack 116

Also available in other packing sizes.

India- The Growing Market for Malted Food Drinks While western markets remain challenging for malt- and chocolate-based drinks, there has been growth in this area in developing markets, notably in China and India where malt drinks have long been drunk as a substitute for milk. Now, strong economic growth in these markets is seeing middle class consumers trading up to added-value hot drinks. The 82,000 tone, malted food drink segment

can

be

divided

into

White

Beverages and Brown Beverages. White Beverages account for 65% of the sales of the total market. Brown Beverages account for

the

Cadbury's

balance

35%

Bournvita

of

the

market.

dominates

this

segment. Other players in the segment are Boost (SBCH), Milo (Nestle) and Maltova (SBCH). India, the world's largest malt-based drinks market, accounts for 22% of world's retail volume sales. In India, malt-based drinks are traditionally consumed as milk substitutes and are marketed as a nutritious drink. Such drinks are principally targeted at older consumers, the young and the sick. Sales growth has been assisted in recent years by improved retail and distribution networks and demographic factors, namely a large consumer base in the children's and youth market. India also recorded the highest growth (53% in US$ terms) of any market between 1998 and 2003, primarily as a result of consumers trading up to value-added products.

Major global players such as

GlaxoSmithKline, Cadbury Schweppes and Nestlé are present in India.

Bournvita embarked on the 'Nutrition' journey and managed to change the paradigm for brown beverages. Today it has to compete with a heritage brand like

Brand Bournvita Boost Milo Maltova Others

Share 47% 30% 10% 8% 5%

Horlicks and also stay on course by warding of competition from Boost, Milo and others.

Brown Beverages Market

Zonal Contribution

Marketing Practices This is a brand that has sustained over time and competition. Cadbury's - true to its reputation has managed to sustain this brand over these years. The brand has sustained because of Cadbury's invested in the brand and also ensured that the brand changed in tune with the times Cadbury brought this product when there was selling concept prevailing and not so much importance given to marketing but it started marketing its product using advertising and promotions. Marketing practices includes •

Segmenting strategy

•

Defining the key target audience

•

Positioning

•

Place

•

Promotion

Segmenting strategy Cadbury has segmented the market for their flagship product “Bournvita” demographically. It has segmented the market on the bases of age group; it is targeting children aged between 5 to 16 yrs of age. It is targeting one of the biggest consumer groups in India. Bournvita is a chocolate flavored health drink. In this segment the children

give

too

much

importance to taste and their parents give importance to health

and

Cadbury

has

addressed both the things very well. Thus it builds a bridge between mom and the child. And moreover with all the fringe benefits coming

with Bournvita keeps it the most favorite drink of the child and the mom. When the brand was introduced in the market, it tried to solve a perennial problem that mother's face: a need for a healthy food which is tasty. Bournvita offered that unique combination of health and taste. To attract this segment Cadbury has taken many initiatives like •

Bournvita quiz contest

•

Bournvita confidence academy

•

All India junior badminton tournament

Latest focus on confidence is a smart move by the brand. Confidence is something that every kid looks forward to.

Defining key audience Most of the promos are targeted at children who coerce their parents into purchasing the brand. Brand loyalties are very strong as the key target audience; children are always looking for the change. Bournvita is a chocolate flavored health drink. When the brand was introduced in the market, solve

it a

tried

to

perennial

problem that mother's face: a need for a healthy food which is tasty.

Bournvita

offered

that

unique

combination of health and taste. Thus

it

targeted the mothers concern about her child's eating habits and used the 'Nutrition Meter' as an interesting device to communicate the RDA formula - " 2 Cups of Bournvita for Balanced Nutrition". To further target the child section it has offered many freebies and gifts from time to time.

Positioning In marketing, positioning has come to mean the process by which marketers try to create an image or identity in the minds of their target market for its product, brand, or organization. It is the 'relative competitive comparison' their product occupies in a given market as perceived by the target market. In 1970s the brand was positioned as a product that helps in good upbringing. The brand used the tagline: Goodness that Grows with You. During 1980's the brand changed its focus from Upbringing to Intelligence. The tagline was changed to: Brought Up Right, Bournvita Bright. In 1990's the brand felt that it should be focusing on the overall health of the kid thus changed its focus on Body and Mind. The brand also took Energy as a main focus and thus evolved the famous VO (voice over): "Bournvita has proteins, minerals and carbohydrates”. Along came the famous tagline: Tan Ki Shakthi, Man Ki Shakthi. During 1998, the brand faced intense competition from Milo from Nestle. At this time, the brown health food drink segment was facing issues of stagnation because of lack of value addition. Bournvita then changed its positioning on the health platform. The brand used an acronym RDA (Recommended Dietary Allowance) to reinforce the health positioning. The brand used a clever Nutritional meter to communicate the RDA formula: 2 cups of Bournvita for balanced nutrition.

Place Cadbury is catering Bournvita to its consumer through out India through its vast distribution channel. Bournvita is available in various medical stores, provision stores, super markets and all retail stores.

Promotion “An activity designed to boost the sales of a product or service. It may include an advertising campaign, increased PR activity, a free-sample campaign, offering free gifts or trading stamps, arranging demonstrations or exhibitions, setting up competitions with attractive prizes, temporary price reductions, door-to-door calling, telemarketing, and personal letters on other methods”. The objectives that are met by promoting are to move the target market through the following phases:

Unawareness -> Awareness -> Beliefs/Knowledge -> Attitude -> Purchase Intention -> Purchase It is believed that consumers cannot skip over a phase, but they need to move through them. Promotion is used to move the target market from one phase to another to finally purchase. Bournvita has invested heavily in product development, advertising and sales promotion. In the product development front, Bournvita had significantly changed its packaging and the latest pack is inspired by Boost. Along with packaging changes, the brand also had come out with a new variant: Bournvita Fivestar Magic. The new variant has the unique chocolate with caramel flavor of Cadbury's Fivestar. The brand is using the brand association with Five Star as a key differentiator. All these years, Bournvita has used taste as a consistent theme to attract the kids. The FiveStar Magic variant further reinforced this positioning. In the advertising campaigns, Bournvita has always been a heavy spender. Bournvita is running two different campaigns for Bournvita: one campaign for the Bournvita Fivestar Magic and another one featuring Bournvita Confidence Academy. In the sales promotion front also, the brand was active with its share of freebies and gifts. The association with Cartoon Network enabled this brand to use the famous characters like Powerpuff girls and Dexter to the brand's advantage

Focus on Confidence is a smart move by Cadbury to promote its brand BOURNVITA. Its arch rival Boost has built itself on the energy platform and recently has gained headway using Sachin. Hence to counter Boost, Bournvita needed to own an important differentiation point. Confidence is something that every kid looks forward to. By featuring real whiz kids, the brand has been able to create an impact in the Target group. Bournvita always comes up with consumer promotion activities from time to time e.g. giving free gifts like plastic mugs, kitchen appliance, chess game or ludo etc. Recently they decided to target school children by offering attractive mugs with cartoon characters design on it. They also come up with the scheme of extra Bournvita for the same price.

Taglines of Bournvita In early 1990s Cadbury reentered the health drink market with Bournvita, the product of essential vitamins and minerals with memorable campaigns based on the 'Tan ki Shakti, Man ki Shakti'. The next big breakthrough happened in 1999 when the brand was re-launched with a new RDA Balanced Formula. The brand was re-launched with a completely new identity in 2001. Bournvita has a unique taste that combines the goodness of malt and chocolate. It gives the child physical and mental alertness resulting in a healthy body and an active mind. In 2001 Bournvita, complete with new packaging and design was re-launched. A loyalty programme, in the form of a Bournvita Nutrition Centre, dedicated to counseling mothers on her child's daily nutritional needs was opened. Cadbury Bournvita has been advertising since the 1970s. In the early years the positioning centred on 'Good upbringing' with Bournvita being an essential building block for children. In the 1980-82 years it was 'Goodness that grows with you'. By 1987, it had become the more aggressive 'Brought up right, Bournvita bright'. In the last decade of the 20th Century, competition between children was becoming

intense and Bournvita was there with its 'Extra energy to stay ahead'. In the 199295 period 'Shakti har din ke champion ki' (Energy for the everyday champion) was its payoff line. In 2000, 'Bournvita poshan, sahi poshan' (Bournvita nutrition, right nutrition) encouraged consumption. In the following year 'Confidence kuch kar dikhane ka' (Confidence to achieve) became the reason to buy. The current Cadbury Bournvita positioning suggests that it contains specific ingredients that augment stamina and concentration in children.

Bournvita Quiz Contest Bournvita Quiz contest or Cadbury Bournvita Quiz Contest is one of the most famous quiz contests in India. It was first held in 1972. It is a contest sponsored by Cadbury India. Initially it was a quiz contest which was held in the cities across the length and breadth of India. But later it became a radio and then a television show. The mastermind behind this show is Derek O Brien who conducts this quiz show with great

aplomb.

Bournvita

Quiz

Contest is a respected name amongst the quizzing fraternity of India. This quiz contest is at present one of the longest running shows in Indian television and is immensely popular among the school kids of India as well as quiz enthusiasts of all ages. This show enjoys unparalleled popularity and has made quizzing the nation’s most popular events after one day cricket. The fact this quiz contest reaches out to a million students to 4,800 schools in India is a testimony to the iconic statue enjoyed by this quiz contest.

Confidence Academy In the current millennium, the brand has moved to the next level. In the typical laddering up strategy, Bournvita has identified Confidence as its Core Brand Essence. The brand realized that every kid have a chance to excel in his chosen field of Endeavour if he have confidence. The realization has enabled the brand to chalk out the current marketing strategy. The brand now uses the tagline “Do you have Bournvita Confidence ". Bournvita Confidence Academy is not a School but a reality show. The show which premiered on July 2007 in the Pogo channel is different from the usual reality shows. The show features 7 kids who have exceptional talents in various fields like dancing, racing, singing, magic, studies etc. In the reality show, these kids to act as Gurus and is expected to teach each other skills. So you have a magic whiz kid learning to sing. The point is that "You Need Confidence" to venture into unknown fields In a first of its kind initiative, young prodigies’ confidence is being put to a whole new challenge on Pogo TV with the launch of an innovative reality show “Bournvita Confidence Academy”. Debuting at 12pm Sunday (July 15, 2007), the program will showcase seven young prodigies from all across India. The programme is scheduled to air on this Sunday prime slot for 13 weeks. These young prodigies excel in their skills and are confident to showcase it. However, the BIG CHALLENGE in the Bournvita Confidence Academy will be that part pants will not be rated on the performance of their own skill, but on the skill that they will learn from their peers! - So you have the magician singing, the racer dancing, etc.

The seven selected achievers who have made it to the Academy are: 1. Magician – Karun Krishnan from Bangalore (Winner of All India Magic

Competition Amateur. He has performed in over 3500 shows) 2. Rajasthani Folk Singer – Ashraf Khan from Rajasthan (A National Child

Award winner 2004-2005, he has performed internationally) 3. Actor – Aditi R from Bangalore (A film and theatre actor, has acted in

more than 15 documentaries, awarded Special Jury Golden Cairo Award in the International film festival in Cairo 2005. Her first feature film won best children’s film from the Government of Karnataka - Candy House/MithayeMane) 4. Santoor Player - Rhitam Bhattacharya from Kolkatta (comes from a long

line of musicians, Plays in the Maihan Gharana style.

5. Dancer (contemporary) – Kabir Aurora from Mumbai (A dancer with

Shiamak's junior dance company. He has performed at PAKA 04 and 05, Filmfare awards etc) 6. Go Karter - Nikhil Kashyap from Bangalore (National Level Go Carting

Champion (Junior) 2004, National Titan Grand Prix 2005 Runner Up)

7. Academis – Ameetosri Basu from Kolkatta (Double promoted from class

5 to class 7)

Bournvita All India Junior Badminton Championship The old adage, "Confidence is the first requisite to great undertakings" can't hold more relevance than today - in this age of convergence and competition. And this famous line once again stands the test of time, as Cadbury Bournvita brings together Young Champs from all over the country for an exciting All India Junior Badminton Tournament being held in Chennai from May 26th -31st. 2007. The tournament is organized by the Express Shuttle Club and recognized by the Badminton Association of India. It features players from various states in India who will vie for the top slot in their respective categories. The finals of the championship will held on May 31st, 4 pm. Commenting Sanjay

Purohit,

on

the

association,

Director,

Marketing,

Cadbury India said, "Cadbury Bournvita is among the most loved and trusted brands in the country. With the extra physical and mental energy that Bournvita provides, youngsters have the confidence to take on the world and actualize their innate potential. Our association with this tournament aims to recognize and reward champions who through their achievements embody the Bournvita brand values." "We are delighted that Cadbury Bournvita has supported this tournament. We hope that many more corporate emulate Cadbury" Sanjeev Sachdeva, organizing secretary, All India Junior Badminton Tournament. Cadbury Bournvita has been an enduring symbol of mental and physical health ever since it was launched in 1948. It is hardly surprising then, that Bournvita has enjoyed a long association with sports. In the 1980 Moscow Olympics, Cadbury Bournvita was the official health drink for the Indian team. In the new millennium, keeping pace with the evolving mindsets of the new age consumers, Cadbury Bournvita

is about arming consumers with Confidence to take on physical and mental challenges that nobody else can, resulting in one of the most successful advertising campaigns which is based on 'Real Achievers who have grown up on Bournvita'.

Cadbury Bournvita Jugalbandi Extending its confidence challenge strategy, Cadbury Bournvita has launched a new commercial titled ‘Bournvita Folk’. The TVC showcases an interesting ‘jugalbandi’ between talents from a metro and small town. O&M is the creative agency behind the TVC, with ECD Abhijit Avasthi and Creative Director Manoj Shetty having worked on its creative execution. Infiniti Production House has produced the film, while Vishal Mangalorekar has directed it. Speaking on the thought process and the brief given by the client, Shetty explained, “For more than three years, we have been appropriating ‘confidence’ as the benefit derived from Bournvita. Over the last two years, we had moved to a testimonial format that depicted real achievers from the ‘Bournvita Confidence Academy’ show who have carved out a niche for themselves at a very young age. So, the current TVC is a creative attempt at making the ‘testimonial format’ more engaging and exciting for young consumers. Research and initial responses indicate that it has worked very well.” The TVC features Kabir Arora, a student of Shiamak Davar, and Ashraf Khan, a folk singer. Incidentally, the two boys were also finalists at the ‘Bournvita Confidence Academy’ show on Pogo. The TVC begins with Arora practising his Western dance steps, and is suddenly intervened by Khan who challenges him to dance to the tune of his folk lyrics and music. The film then flows through an interesting jugalbandi between the two.

Tough roads ahead

Do you know

•

In the 1980 Moscow Olympics, Cadbury Bournvita was the official health drink for the Indian team

•

The Cadbury Bournvita Quiz Contest, which started airing on April 12th 1972, is India's longest running national school quiz contest. Starting out as a contest held in cities, and then on radio, the contest currently has been running for over 10 years on satellite television. It has over 500 episodes to its credit, and today the contest directly reaches more than 11,25,000 students, in 4000 schools across 66 cities and 7 countries - UAE, Kuwait, Qatar, Oman, Bahrain, Nepal and India