Cadbury Marketing Strategy

CADBURY MARKETING ASSIGNMENT -II BY ALISHA ASHISH 09PG244

Overview of the Company

Cadbury India is a food product company with interests in Chocolate Confectionery, Milk Food Drinks, Snacks, and Candy. Cadbury is the market leader in Chocolate Confectionery business with a market share of over 70%. Some of the key brands of Cadbury are Cadbury Dairy Milk, 5 Star, Perk, Eclairs, Celebrations, Temptations, and Gems. In Milk Food drinks segment, Cadbury's main product - Bournvita is the leading Malted Food Drink in the country. Its heritage can be traced back in 1824 when John Cadbury opened a shop in Birmingham selling cocoa and chocolate. Since then we have expanded our business throughout the world by a program me of organic and acquisition led growth. On 7 May 2008, the separation of our confectionery and Americas Beverages businesses was completed creating Cadbury plc with a vision to be the world's BIGGEST and BEST confectionery company. •

We make and sell three kinds of confectionery: chocolate, gum and candy

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We operate in over 60 countries

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John Cadbury opened for business in 1824 - making us nearly 200 years young

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We work with around 35,000 direct and indirect suppliers

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We employ around 45,000 people

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Every day millions of people around the world enjoy our brand

Cadbury is the world's largest confectionery company and its origins can be traced back to 1783 when Jacob Schweppe perfected his process for manufacturing carbonated mineral water in Geneva, Switzerland. In 1824, John Cadbury opened in Birmingham selling cocoa and chocolate. Cadbury and Schweppe merged in 1969 to form Cadbury Schweppes plc. 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. In 1905, Cadbury's top selling brand, Cadbury Dairy Milk, was launched. By 1913 Dairy Milk had become Cadbury's best selling line and in the mid twenties Cadbury's Dairy Milk gained its status as the brand leader. Cadbury India began its operations in 1948 by importing chocolates and then re-packing them before distribution in the Indian market. Today, Cadbury 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). Its corporate office is in Mumbai. Worldwide, Cadbury employs 60,000 people in over 200 countries.

WHAT IS BRAND?

A brand is a name sign symbol slogan or design or a combination of these, intended to identify the goods and services of one seller and to distinguish them from those of competitors". Branding helps differentiate products and can be a powerful tool of competitive strategy. While products can come and go over time, brands (if properly managed) can live indefinitely. Brands have many benefits for companies and consumers. For companies; strong brands add value, and consumers develop positive associations with the brand and are less likely to purchase competitors’ products. This means the brand can act as a barrier to competition. For consumers, brands help them to quickly identify products and make shopping easier. Strong brands carry a guarantee of quality which consumers trust and are often willing to pay more for. Consumers will pay a premium price for a branded product if they believe they it provides a higher value. Building strong brand is an important marketing strategy for companies, enabling premium pricing and making widespread distribution easier to achieve. Brand loyalty helps create and

sustain high sales and profit. Brand equity is the value of a brand based on the extent to which its has brand loyalty, brand name awareness, perceived quality and strong brand association.

DEVELOPING A BRAND A brand identity is the message sent out by the brand through its name, product shape and design, visual symbols (such as logos), advertising etc. This identity needs to be planned by brand management, as this is key to gaining market acceptance and leadership. The Brand Pyramid - Brand Meaning Brand core Brand proposition Brand style Brand themes The top tier of the pyramid consists of the br and core. Brand core physical appear ance etc. Brand themes are flexible and change with physical appear ance etc. Brand themes are flexible and change with A brand pyramid can help managers plan and analyze a brand’s identity. The top tier of the pyramid consists of brand core. Brand core values are the genetic code of the brand and remain the same overtime. Closely related to these values is the brand proposition : the promise the brand makes to the consumer. This proposition should be easy to understand and appeal to the target market. The middle tier represents the brands style or elements of the brands’ identity that represents the self image of the brand of the brand and need to be relatively stable over time. The base of the pyramid is formed by the brand themes which are concerned with the brand currently communicate through its advertising, packaging, fashion, technological developments and changing consumer tastes.

physical appear ance etc. Brand themes are flexible and change with . The brand pyramid helps managers understand the strengths of the brand and ensure consistency of its message. This also helps to identify the opportunities for brand stretching and brand extensions. A brand extension is the use of a well known brand name on a new product category. We will discuss this in relation to the DAIRY MILK brand. Brand starching is the use of an established brand name in unrelated markets or product categories , e.g. using a well known designer name on cosmetics, clothes, sunglasses etc, such as “John Rocha Waterford Crystal”

CADBURY: THE BRAND The brand CADBURY enjoys a high level of brand equity. Researches show 90% of the people recognizes the brand while 74% state that when it comes to chocolate only CADBURY will do.

There are three main brand name strategies: Family brand names: The parent brand is also known as an “umbrella” brand. This term is given to product ranges where the family brand name is used for all products. The advantage of this approach is the positive associations with the parent brand will transfer to all sub brands. The risk however is that that if one brand is unsuccessful or falls into disrepute, the reputation of the complete family of brands can be tarnished. Cadbury is a family brand .\ Individual brand names (or multibrands): In this case each Individual brand names (or multibrands): In this case each Individual brand names (multi brands): in this case each brand is created and named separately and has separate identity. Using a family brand may not be that suitable as brand values may be far apart. Combination brand names: This approach allows for the optional use of the corporate brand name, while allowing an individual brand to be identified, e.g. Cadbury Dairy Milk.

Cadbury uses a combination of brand strategies. The family brand ,Cadbury is linked with its famous sub brands , i.e. Cadbury Crème Egg, Cadbury Roses and Cadbury Flake to name a few. The family brand identity is style communicated by packaging with the Cadbury corporate purple color and the distinctive Cadbury script logo. The sub brand is then distinguished by its own individual livery. Recently marketers have identified particularly strong family or corporate brands as MASTERBRANDS. Cadbury is such a brand. However, a true Masterbrand is more than name

of the company – it incorporates the company’s mission, vision and values, representing them in a way that is easily understood by consumers. IBM is another example of MASTERBRAND. Cadbury’s core brand values include "life’s everyday pleasures that make us feel good and never let us down. As a reward or a pick me up, we consumer s trust Cadbury chocolate to make us feel better

BUILDING A MEGABRAND: CADBURY DAIRY MILK

Family brand names :

The parent brand is also known as an In the last year there has been a major development in brand strategy at Cadbury y Ireland. The Cadbury Dairy y Milk brand has been stretched to become a family brand in its own right. Of all the successful Cadbury brands, the one with the greatest loyalty is Cadbury Dairy y Milk. In 2002 more than 19 million Dairy y Milk products were sold. Cadbury y made a strategic marketing decision to leverage the value of the Dairy Milk brand (i.e. optimize the market potential of the brand ) by elevating it to a Megabrand or range brand.

A Megabrand or range brand spans an entire range of products, creating, relationships with products which may have been previously unseen by customers. The rationale for a mega brand: 1. The Megabrand concept can help provide structure and unity to a strategy. 2. A Megabrand strategy can add visibility to products and provide greater credibility to consumer s for a variety of offers under the brand. In addition, it is easier for consumer to try new offers from their trusted brand. Megabrands provide economies of scale as the fixed costs of maintaining a brand name can be spread across the sales of numerous product lines. Creating and maintaining brands has become very expensive. Stand alone it increasingly difficult to compete with Megabrands. Other factor s leading to the emergence of the Megabrand include growing Pressures and greater global competition. Megabrands are better resourced and have a greater chance of success than standalone brands.

SCOPE OF THE MEGABRAND When developing a Megabrand, products are chosen for inclusion on the basis of their compatibility with the brand’s identity. For Cadbury, the (blocks) chocolate brands were included as they were perceived as variants of Dairy Milk. The core proposition of the new Dairy Milk Megabrand could be described as ‘delivering recipes for lives upbeat occasions i.e. no matter what your humor or the occasion, Cadbury Dairy Milk will provide the perfect accompaniment’ Two products in the Cadbury range created a dilemma: Wispa and Caramel. Both were

standalone products with distinctive identities. Both had a loyal consumer base high should not be abandoned. To incorporate these products into the Dairy Milk range called for a fresh strategy. Both were blocking chocolate and provided a fit with the Dairy Milk Megabrand. Their inclusion provided the opportunity to further leverage. The Dairy Milk Megabrand without alienating loyal consumer s. The new Dairy Milk Bubbly brand benefited from a new name which better conveys the distinctive "mouth feel" of Wispa. The new aerated chocolate product now in square form, which is also easier to break, proved popular. Test showed that 85% of Wispa consumers were likely to buy Dairy Milk showed that 85% of Wispa consumers were likely to buy Dairy Milk, while 89% of Caramel customers indicated their likelihood to buy the new Dairy Milk Caramel. Other range refreshment initiatives involved deleting some products such as Banoffi while incorporating new variants like Cadbury Dairy Milk Orange Shots. This approach will keep the range fresh!!!!!!!

CADBURY AND ITS PRODUCTS Cadbury Boost is a chocolate bar made by Cadbury Ireland in the Republic of Ireland, and sold in the UK by Cadbury UK and also sold in Australia and South Africa. Its wrapper says that it consists of milk chocolate with caramel and biscuit filling. The wrapper also states that Boost is "Charged with glucose."

Cadbury Brunch Bar is a bar of cereals (oats, bran flakes and crispies) bound with honey and half covered in milk chocolate. They come in a variety of flavours: Raisin, Hazelnut, Apricot & Almond, Cranberry & Orange, Fruit & Nut, Mixed Berry, Chocolate Chip and Toasted Coconut and is made by Cadbury UK.

They are breakfast type bars that are quick to eat in, and ideally as a slightly healthier and more wholesome snack option to chocolate bars. Cadbury Caramilk is a caramel-filled chocolate bar made by Cadbury Adams in Canada. It was first sold in 1968.[1] Variations available, some of them limited editions, include Caramilk made with dark chocolate maple, chocolate, or cappuccino. "Chunky" (thicker) versions called Caramilk "Thick" and cylindrical versions called "Caramilk Rolls" (similar to Rolo) have also been introduced.

Crispy Crunch is a hard chocolate bar with a crispy peanut flake inside that is made by Cadbury. Crispy Crunch is sold in Canada. Crispy Crunches were sold in the United States for a brief time in the 1990s by the food distribution arm of Pro Set, the collectible card company. Pro Set went bankrupt, resulting in Crispy Crunch no longer being available in the United States. A lower-calorie version of Crispy Crunch was available for a limited time in the mid-1990s. The original manufacturers, Neilson, sold all their chocolate brands to Cadbury in 1996, though packaging continued to feature the Neilson logo for a few years. Since Cadbury began manufacturing of the chocolate bar, the recipe has changed in that it is less salty and more sweet as it has a more of the crunchytopaz coloured candy coating around the centre.

Bar and a Half In June 2009 Cadbury launched the "Cadbury Dairy Milk Bar and a Half" range as a replacement to the Cadbury Dairy Milk "8 chunk" across several Dairy Milk variants. The concept is that the bar is to be more "portionable", so parts of the bar can be "saved for later"

although the bar is the same as the old 8 chunk but in Fruit and Nut, Whole Nut and Standard. This bar has the new logo and packaging. A similar technique has been introduced with Cadbury Double Decker and Cadbury Boost bars. However instead of larger bars, two separate bars are packaged together and are called "Duo". Both brands received a packaging refresh at the same time.

Cadbury Dairy Milk Caramel is a chocolate bar that is part of the Cadbury Dairy Milk brand and is made by Cadbury UK and Cadbury Ireland. The bar is sold in the United Kingdom and Ireland. The bar was first launched in 1976, originally called Cadbury Caramel until 2003, when it was renamed. In early 2009 it was relaunched, with the Caramel name re-emphasised as the main on-pack brand, and the Dairy Milk brand reduced in size. he product is a Cadbury Dairy Milk chocolate bar semi-divided into blocks each of which has a caramel filling. The blocks vary in shape and number according to the size of the bar, but on all bars, the blocks are stamped with the word Cadbury on the top.

Cadbury celebrations : Cadbury Celebrations was aimed at replacing traditional gifting options like Mithai and dryfruits during festive seasons. Cadbury Celebrations is available in several assortments: An assortment of chocolates like 5 Star, Perk, Gems, Dairy Milk and Nutties and rich dry fruits enrobed in Cadbury dairy milk chocolate in 5 variants, Almond magic, raisin magic, cashew magic, nut butterscotch and caramels. The super premium Celebrations Rich Dry Fruit Collection which is a festive offering is an exotic range of chocolate covered dry fruits and nuts in various flavours and the premium dark chocolate range which is exotic dark chocolate in luscious flavours.

Cadbury Celebrations has become a popular brand on occasions such as Diwali, Rakhi, Dussera puja. It is also a major success as a corporate gifting brand. The communication is based on the emotional route and the tag line says "rishte pakne do" which fits with the brand purpose of strengthening your relationships with something sweet. Cadbury five star Cadbury 5 Star needed to introduce an element of surprise in its eat experience to gain share among lapsed consumers. To do this the variant Cadbury 5 Star Crunchy was launchedwhich still had the richness of caramel, chewiness of nougat but also contained rice crispies. In o rder to engage youth the campaign was executed acrossTV, radio, internet, outdoor and print media.

Cadbury Perk: A pretty teenager; a long line, and hunger! Rings a bell? That was how Cadbury launched its new offering; Cadbury Perk in 1996. With its light chocolate and wafer construct, Cadbury Perk targeted the casual snacking space that was dominated primarily by chips & wafers. With a catchy jingle and tongue in cheek advertising, this 'anytime, anywhere' snack zoomed right into the hearts of teenagers.

Raageshwari started the trend of advertising that featured mischievous, bubbly teenagers getting out of their 'stuck and hungry' situations by having a Cadbury Perk. Cadbury Perk became the new mini snack in town and its proposition "Thodi si pet pooja" went on to define its role in the category. As the years progressed, so did the messaging, which changed with changes in the consumers' way of life. To compliment Cadbury Perk's values, the bubbly and vivacious Preity Zinta became the new face of Perk with the 'hunger strike' commercial in the mid 90's.

Cadbury Gems : The saying "Good things come in small packets" has been proven right many a times and it couldn't have been truer for the pretty chocolate buttons called Gems. Who can forget the unique, brightly colored chocolate buttons with crispy shells, encased in a pack that's as colorful as the product itself? Unrivalled in all these years, Cadbury Gems has captured every consumer's fantasy for almost 4 decades. Little wonder that Cadbury Gems, the brand that came into India in 1968 is still going strong. Cadbury Gems brings happiness to the consumer's world. With this promise in mind, Cadbury Gems has always had 'Masti' as the key proposition in all its communication. In fact, Cadbury Gems is always a willing ally for pranks and fun.

Cadbury Bournvita : Cadbury was incorporated in India on July 19th, 1948 as a private limited company under the name of Cadbury-Fry (India). Cadbury Bournvita was launched during the same year. 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 it's 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.

INTRODUCING CADBURY AS AN AFTER DINNER SWEET One of the biggest marketing strategy followed by Cadbury in India was introducing Cadbury as an after dinner sweet. Indians are fond of having dessert after their dinner. Cadbury aimed at replacing the traditional sweets. Apart from its after dinner advertisement Cadbury targeted adults rather than children. In most of its advertisements, the brand is endorsed and advertised by adults rather than by children even though it basically sells chocolate. Such type of advertisements have created a very wide range of consumers for Cadbury. Its products are not limited to children alone. Adults like the products of Cadbury as much as children do. Another reason for Cadbury being such a successful brand was that it aimed at replacing the traditional sweet custom so prevalent in India. Indians have the habit of carrying sweets as gifts when they visit a friend or relatives. Cadbury items became the new sweets. It was not only considered better but also superior to carry Cadbury instead of the normal sweets. Cadbury also aimed at selling in bulk during festive seasons such as diwali and rakhi. Diwali and rakhi packs are designed to give a feel of the festivities going on. They are exclusively indianised. The chocolate packs contain special chocoloates such as dry fruits rich chocolates as people normally serve dry fruits during diwali.

COMMUNICATING

STRATEGY

To promote the new Dairy Milk Brand core: This is the creed or genetic code of the brand; campaign. This involved a highly Megabrand, Cadbury implemented a To promote the new Dairy Milk Brand core: This is the creed or genetic code of the brand; Megabrand, Cadbury implemented a To promote the new dairy milk megabrand , Cadbury implemented comprehensive “360 degree support” campaign. This involved a highly coordinated set of promotional activities across various communications channel each activity bearing the same message . This approach is known as integrated marketing communications and ensures that consumers receive a clear and consistent message about a brand.

The 360 degree support campaign include a point of sale competition to win a new look , new display units , a buy-two-get-one free promotion on 100g bars, PR and advertisements in the trade press. The result was that sales of the new Megabrand products exceeded targets by 12 % !!

CONCLUSION In today’s competitive business environment brands have assumed a role of growing importance. They can differentiate a company’s products and customer loyalty, helping to sustain profitability in the long term. The Cadbury Dairy Milk brand has evolved into a Megabrand incorporating a range of products each with their own identity, but now under the Dairy Milk brand. This initiative is intended to leverage the strength of the Cadbury Dairy Milk brand to the full. The strategy involved a packaging and range refreshment strategy which has resulted in a unified innovative Dairy Milk brand. Having exceeded initial sales tar gets by a considerable margin, the strategy can be considered a success!

Branding is one of the most important aspects of any business, large or small, retail or B2B. An effective brand strategy gives you a major edge in increasingly competitive markets. But what exactly does "branding" mean? How does it affect a small business like yours? Simply put, your brand is your promise to your customer. It tells them what they can expect from your products and services, and it differentiates your offering from your competitors'. Your brand is derived from who you are, who you want to be and who people perceive you to be. Are you the innovative maverick in your industry? Or the experienced, reliable one? Is your product the high-cost, high-quality option, or the low-cost, high-value option? You can't be both, and you can't be all things to all people. Who you are should be based to some extent on who your target customers want and need you to be. The foundation of your brand is your logo. Your website, packaging and promotional materials--all of which should integrate your logo--communicate your brand. Branding is all important for those of use who want to be recognized for their name, business idea, business or product. Like the big name brands such as Sony, Amazon, Google, Yahoo, etc. business professionals such as freelancers, product developers, writers, pro-bloggers all need a brand to be instantly recognized by. For most, the brand name is either their own name, or else the name of the product they developed. Not only will others know who they are dealing with, but if we brand ourselves properly, then our name will be a synonym of quality further down the track. We all know that big name bloggers such as ShoeMoney, John Chow, Yaro Starak, Maki and Daren Rowse have managed to do just that. They branded themselves through continuously using their own name or that of their website.

BIBLIOGRAPHY Family brand names : The parent brand is also known as an opportunities for brand stretching and brand extensions . A br and extension opportunities for brand stretching and brand extensions . A br and extension opportunities for brand stretching

and brand extensions . A br and extension A brand pyramid can help manager s plan and analyse a brand’s identity. pyramid consists of the br and core. Brand core Closely related to these values is the brand proposition : the promise Closely related to these values is the brand proposition : the promise Closely related to these values is the brand proposition : the promise Closely related to these values is the brand proposition : the promise

The top tier of the

http://www.cadburyindia.com/home/index.asp The top tier of the pyramid consists of the br and core. Brand core http://images.google.co.in/images http://en.wikipedia.org/wiki/Cadbury_plc http://www.cadburyindia.com/brands/choco1.asp The top tier of the pyramid consists of the br and core. Brand core

CA DBURY

MARKETING ASSIGNMENT -II