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 segmen segment, t, Cadbur Cadbury's y's main produc productt - Bournv Bournvita ita is the leading leading Malted Food Food Drink 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 sell sellin ing g bran brand, d, Cadb Cadbur ury y Dairy Dairy Milk Milk,, was was laun launch ched ed.. By 1913 1913 Dairy Dairy Milk Milk had had beco become me 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 then re-pack re-packing ing them them before before distrib distributi ution on in the Indian Indian market market.. Today, Today, Cadbur Cadbury y has five 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 offic e 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 iden identi tify fy the the good goodss and and serv servic ices es of one one sell seller er and and to dist distin ingu guis ish h them them from from thos thosee of competitors". competitors". Branding helps differentiate products and can be a powerful tool of competitive strategy strategy.. While While products products can come and go over time, time, brands brands (if properly properly managed) managed) can live indefinitely. indefinitely. Brands have many benefits for companies and consumers. consumers. For companies; strong brands add value, and consumers develop positive associations with the brand and are less likely likely to purch purchase ase compet competito itors’ rs’ produc products. ts. This means means the brand brand can act as a barrie barrierr 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 Consumers will pay a premium premium price for a branded branded product product if they believe 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 which its has brand brand loyalt loyalty, y, brand brand name name awarene awareness, ss, percei perceived ved qualit quality y and strong 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 managers plan and analyze analyze a brand’s brand’s identity. identity. The top tier of the pyramid consists of brand core. Brand core values are the genetic code of the brand and remain remain the same overtime. overtime. Closel Closely y related related to these these values values is the brand brand proposi propositio tion n : the promise the brand makes to the consumer. This proposition should be easy to understand and appeal appeal to the target market. The middle middle tier represen represents ts the brands brands style or elements 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 The brand brand pyram pyramid id helps helps manage managers rs under understa stand nd the streng strengths ths of the brand brand and ensure 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 designer name on cosmetics cosmetics,, clothes, clothes, sunglas sunglasses ses etc, such as “John “John Rocha Waterford Crystal”
CADBURY: THE BRAND The brand CADBURY CADBURY enjoys enjoys a high level of brand equity. equity. Researches show 90% of the peo peopl plee reco recogn gniz izes es the the bran brand d whil whilee 74% 74% stat statee that that when when it come comess to choc chocol olate ate only only CADBURY will do.
There are three main brand name strategies: Family 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 Indivi Individual dual brand brand names names (mult (multii brands 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. few. The The family family brand brand identi identity ty is style style commu communic nicate ated d by packag packaging ing with with the Cadbu Cadbury ry corpo corporat ratee purpl purplee color color and the distin distincti ctive ve Cadbu Cadbury ry script script logo. logo. The The sub sub brand brand is then then distinguished by its own individual livery.
Recent Recently ly market marketers ers have have identi identifie fied d partic particula ularly rly strong strong family family or corpo corporat ratee brand brandss as MASTERBRANDS . Cadbury is such a brand. However, a true Masterbrand is more than name
of the company – it incorporates incorporates the company’s c ompany’s mission, mission, vision and values, representing them in a way that is easily understood by consumers. consumers. IBM is another example of MASTERBRAND.
Cadbury’ Cadbury’ss core brand values include "life’s everyday pleasures 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 Cadbury Dairy y Milk brand has been been stretched 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 provide economies of scale as the fixed costs of maintaining maintaining a brand name can be spread spread across across the sales of numerou numerouss product product lines. lines. Creating Creating and maintaining maintaining brands has become very expensive. Stand alone it increasingly 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 When develo developi ping ng a Megabr Megabrand and,, produ products cts are chosen chosen for inclus inclusion ion on the basis basis of their their compatibi compatibility lity with the brand’s brand’s identity. identity. For Cadbury Cadbury,, the (blocks) (blocks) chocolate chocolate brands brands were included included as they were perceived perceived as variants variants of Dairy Milk. The core propositio proposition n 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 Two produc products ts in the Cadbu Cadbury ry range range create created d a dilemm dilemma: a: Wispa Wispa and Caramel. Caramel. Both Both were 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 blocking chocolat chocolatee and provided provided a fit with the Dairy Milk Megabrand. 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 that 85% 85% of Wispa Wispa consu consumer merss were were likely likely to buy buy Dairy Dairy Milk, Milk, while while 89% of Carame Caramell 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 bar made by Cadbury Ireland in the Republic Republic of Ireland Ireland, and Cadbury Boost is a chocolate bar made sold in the UK by UK by Cadbury UK and UK and also sold in Australia and South Africa. Africa. Its wrapper says that it consists of milk of milk chocolate with caramel and biscuit filling. The wrapper also states that Boost is "Charged with glucose." glucose."
Cadbury Brunch Bar is a bar of cereals (oats (oats,, bran flakes and crispies) bound
with honey and half covered in milk chocolate 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 are breakfast type bars that are quick to eat in, and ideally as a slightly healthier and more wholesome snack option to chocolate bars. bars. caramel-filled chocolate bar made by Cadbury Adams in Canada. Canada. It Cadbury Caramilk is a caramel-filled was first sold in 1968. 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) Rolo) have also been introduced.
bar with a crispy peanut crispy peanut flake inside that is made Crispy Crunch is a hard chocolate bar with by Cadbury. 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, 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, 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 crunchy topaz 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 Milk brand and is made by Cadbury UK and UK and Cadbury Ireland. Ireland. The bar is sold in the United Kingdom and Ireland. 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 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 varia nt 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 te rms 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 adul adults ts rathe ratherr than than chil childr dren. en. In most most of its its adve advert rtis isem emen ents, ts, the the bran brand d is endo endors rsed ed and and advertised by adults rather than by children even though it basically sells chocolate. Such type type of advert advertise isemen ments ts have have created created a very very wide wide range range of consum consumers ers for Cadbur Cadbury. y. 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. relatives. Cadbury items 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 across vario various us commu communic nicati ation onss chann channel el each each activi activity ty bearin bearing g the same same messag messagee . This This approach approach is known known as integrat integrated ed marketin marketing g communi communicatio cations ns and ensures ensures that consume consumers rs receive a clear and consistent message 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 today’s ’s compet competiti itive ve busin business ess enviro environme nment nt brand brandss have have assum assumed ed a role role of growin growing g 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 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 brand pyramid pyramid can help manager s plan plan and analyse a brand’s brand’s identity. 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 top tier 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