Integrated marketing communication
ON
SUBMIT SUBM ITTE TET TD TO SUBMITTED BY: Prof.Dr.MADHAVI PANDYA P.SANDEEP(M5-50) THOMAS DON(M5-42) SAI SASIKANTH(M5-52)
Contents Overview of the Company:.......... C ompany:...................... ........................ ......................... .................................................. .....................................3 3 Cadbury’s CSR Vision and Strategy....................... Strategy................................... ........................ ................................ .....................5 .5 OVER ALL TURN OVER..................... OVER.................................. ......................... ........................ .......................................... ..............................6 6 CHALLENGES OF CADBURY...................... CADBURY................................... ......................... ........................ ......................... .........................8 ............8 Cadbury challenges commuters with 'Eyebrow Language' ......................................................8
WHAT IS BRAND?....................... BRAND?.................................... ......................... ......................... ......................... ....................................10 ........................10 DEVELOPING A BRAND...................... BRAND.................................. ......................... ................................................... ......................................11 11 CADBURY: THE BRAND...................... BRAND.................................. ......................... ...................................................12 ......................................12 COMPETITORS:.................... COMPETITORS:................................ ......................... ......................... ................................................. ........................................12 ...12 BUILDING A MEGABRAND: CADBURY DAIRY MILK.................... MILK................................ .........................17 .............17 SCOPE OF THE MEGABRAND.................... MEGABRAND................................ ........................ ......................... ......................... ....................18 ........18 Cadbury Advertising Timeline their products:-.................................................20 CADBURY AND ITS PRODUCTS....................... PRODUCTS.................................... ......................... ........................ .............................22 .................22 Bar and a Half...................... Half................................... ......................... ........................ ......................... ......................... ........................24 ............24 INTRODUCING CADBURY AS AN AFTER DINNER SWEET.......................... SWEET................................28 ......28 INTERSTING FACTS OF CADBURY....................... CADBURY................................... ........................ ......................... ..........................29 .............29 COMMUNICATING STRATEGY.................... STRATEGY................................. ......................... ..............................................30 ..................................30 Distribution and Selling strategy:.................................. strategy:........................................................................ ......................................32 32 SWOT ANALYSIS................... ANALYSIS................................ ......................... ......................... ......................... ........................ ......................... ..................34 .....34 BUSINESS OVERVIEW................... OVERVIEW............................... ......................... ......................... ........................ ......................... .......................35 ..........35 INTEGRATED MARKETING COMMUNICATION OF CADBURY..................................37 Marketing communication mix elements....................... elements................................... ......................... .......................37 ..........37 ADVERTISING THEIR PRODUCTS IN DIFFERENT WAYS...................................... WAYS......................................38 38 OTHER MARKETING MIX ELEMENTS OF CADBURY.......................... CADBURY...................................... ......................45 ..........45 5 P’S Of Cadbury......................... Cadbury..................................... ........................ ......................... ......................... ........................ ........................46 ............46 Segmentation, Targeting, and Positioning........................ Positioning.................................... ...................................52 .......................52 OVERCOMING THE WORM CRISIS USING IMC................................. IMC............................................. ......................57 ..........57 STEPS TAKEN TO SOLVE THE CONTROVERSY.................. CONTROVERSY...................................................59 .................................59 2
Future Strategy......................... Strategy..................................... ........................ ......................... ......................... ........................ ..........................62 ..............62 CORPORATE SOCIAL RESPONSIBILITY................. RESPONSIBILITY............................. ........................ .....................................64 .........................64 Error: Reference source not found
Overview of the Company:
Cadb Ca dbury ury India India is a food food prod produc uctt compa company ny with with inte intere rest stss in Chocolate Confectionery, Milk Food Drinks, Snacks, and Candy. Cadb Ca dbur ury y is the the ma mark rket et le lead ader er in Choc Chocol olat ate e Co Conf nfec ecti tion oner ery y business with a market share of over 70%. Some of the key brands of Cadbury are Cadbury Dairy Milk, 5 Star, Perk, Eclairs, Cele Ce lebr brat atio ions ns,, Te Temp mpta tati tion ons, s, and and Gems Gems.. In Milk Milk Food Food drin drinks ks segment, Cadbury's main product - Bournvita is the leading Malted Food Drink in the country. coun try. Its heritage can be traced back in 1824 when John Cadbury opened a shop in Birmingham selling cocoa and chocolate. Sinc Since e then then we have have expa expand nded ed our our busi busine ness ss thro throug ugho hout ut the the world by a program me of organic and acquisition led growth. On 7 May 2008, 008, the sepa epara rattio ion n of our our confe onfect ctio ione nerry and and Amer Americ icas as Beve Bevera rage gess busi busine ness sses es was was co comp mple lete ted d crea creati ting ng Cadbury plc with a vision to be the world's BIGGEST and BEST confectionery company. •
Make and sell three kinds kinds of confect confection ionery ery:: chocol chocolate ate,, gum and candy
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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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Working with around 35,000 direct and indirect suppliers
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Employs 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 orig or igin inss ca can n be trac traced ed back back to 1783 1783 when when Jaco Jacob b Schw Schwep eppe pe perfect perfected ed his proces processs for manufac manufactur turing ing carbon carbonate ated d minera minerall water in Geneva, Switzerland. In 1824, John Cadbury opened in Birmingham selling co coccoa 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. Cadb Ca dbur ury y Indi India a bega began n its its oper operat atio ions ns in 1948 1948 by impo import rtin ing g chocolates chocolates and then re-packing them before distribut distribution ion in the Indi Indian an ma mark rket et.. To Toda day, y, Ca Cadb dbur ury y has has five five co comp mpan anyy-ow owne ned d manufacturing facilities at Thane, Induri (Pune) and Malanpur 4
(Gwalior), Bangalore and Baddi (Himachal Pradesh) and 4 sales offices (New Delhi, Mumbai, Kolkota and Chennai). Its corporate offi office ce is in Mumb Mumbai ai.. Wo Worl rldw dwid ide, e, Ca Cadb dbur ury y em empl ploy oyss 60,0 60,000 00 people in over 200 countries. BOARD OF DIRECTORS C Y Pal - Chairman Matthew Cadbury - Managing Director Rajiv Wahi - Vice Chairman Jaithirth Rao - Director S N Talwar - Director Rajeev Bakshi - Director Harsh Mariwala - Director N V Iyer - Director David Kappler - Director B Puri - Executive Director P Chhaya - Executive Director J Strydom - Executive Director G Sridhar - Executive Director G M Bhat - Executive Director
Cadbury’s CSR Vision and Strategy Cadb Ca dbur ury y is co comm mmit itte ted d to grow growin ing g re resp spon onsi sibl bly. y. They They believ believe e respon responsib sible le busine business ss comes comes from from listen listening ing and lear le arni ning ng,, and and havi having ng in pla lace ce a clea clearr CSR CSR visi vision on and and strategy.
Vision – ‘Working together to create brands people love. 5
They see CSR as a positive contributor to their competitive strategy. Increasingly they think of it as more about doing responsible things profitably than just doing the profitable things responsibly. CSR strategy – Five Pillars of CSR: marketing, food and cons co nsum umer er tren trends ds;; ethi ethica call sourc ourcin ing g and and proc procur urem emen ent; t; environment; quality, health and safety; human rights and employment standards; and community investment.
OVER ALL TURN OVER The confectionary industry in India is in its growth stage. This marketing Research data from the industry shows that the indu indust stry ry has has been been ma maki king ng impr impres essi sive ve grow growth th in the the India Indian n economy. The confectionary industry is divided into the flowing speci specifi ficc indu indust stri rial al sect sector ors: s: Choc Chocol olat ate, e, Ha Hard rd-b -boi oile led d candi candies es,, Éclairs and toffees, Chewing gums, Lollipops, Bubble gums, and Mints and lozenges (Laura, 2008). The The tota totall co conf nfec ecti tion onar ary y ma mark rket et is valu valued ed at abou aboutt 41 billion Indian Rupees. It has a total turnover of about 223500 6
tones of confectionary produced every year. This is a huge overall turnover which is equal to that of established markets. Most the confectionary are consumed in the urban areas. The urban market constitutes about 73 percent of the total market. This is a skewed market share compared to the rural market which accounts for about 27% of the total market. This market data shows that the rural market has not bee een n wel elll tappe apped d into. nto. With ith mor ore e than han 50 perc percen entt of the the Indians living in the rural areas, it means that there is a high potential in the rural market (Cadbury, 2008).On the product share of the market, hard boiled candy accounts for about 18% of the market, Éclairs and Toffees has about 18% of the market share, while gums and mints and lozenges are at par accounting for 13 percent of the market share each.
Howev Ho wever er choco chocola late te has has re reco cord rded ed the the high highes estt ma mark rket et growth rate recording about 23 percent growth rate. This is a higher growth rate compared to other markets in the world. However the overall sugar confectionary segment in the Indian market has been declining with a total decline of about 19 percent recorded in 2007 (Laura, 2008). Cadbury with a number of products including Daily Milk, Perk Pe rk,, Gems Gems,, 5 Star Star,, Cel Celeb ebra rati tion on,, Byte Bytes, s, Dair Dairy y Milk Milk Écla Éclair irs, s, 7
Éclairs Crunch, Mr. Pops and Halls is the leading player in the chocolate segment, Éclairs segment, Lollipops, and the Mints Segment (Cadbury, 2008). Cadbury is also the leading player in the milk beverage segment which is valued at 16.1 billion Rupees. This segment has an annual turnover of about 63,000 tones and has been growing at a rate of 10.1 percent. Here Cadbury is the main player with Cadbury Bournvitta and Cadbury Bournvitta 5 Star Magic (Cadbury, 2008).
CHALLENGES OF CADBURY CADBURY Cadbury challenges commuters with 'Eyebrow Language'
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Cad Ca dbury ury is capit apital aliz izin ing g on the the succe uccesss of its glo lob bal "Eyebrows" campaign with a Canadian print and OOH campaign called "Eyebrow Language." Targeting the younger end of the adult demographic, the campaign's creative is based on the "Eyebrows" TV spot, in which two kids with crazy eyebrows pose for a photo. The "Eyeb Eyebro row w La Lang ngua uage ge"" crea creati tive ve,, made ade excl exclus usiively vely for the the Cana Ca nadi dian an ma mark rket et,, feat featur ures es ‘bro ‘brows ws in diff differ erent ent shap shapes es that that readers can translate into letters and words. Depending on the medium, the message either offers the reader a chance to win a prize or, in the print ads, to participate in a stunt executed at a specific time and location. On Monday, the dec eco oded newspaper ad invited readers, hundreds of whom showed up, to a sidew sidewalk alk at Col Colleg lege e Park Park in Tor Toront onto, o, where where they they were were to twirl, clap and yell "chocolate" to win a prize. The media buy, handled by Cossette with creative by The Hive, are focused on Toronto Toronto and Vancouver, Vancouver, and include include daily commuter commuter newspapers newspapers,, a billboard billboard at Yonge-Dundas Yonge-Dundas Square in 9
Toron To ronto, to, transit transit ads in both both cities cities and an online online banner banner buy. buy. Launched last week, the commuter-paper ads are running three days a week for four weeks, changing each time, as are the OOH ads. "We really wanted to make sure this had high impact with the consumer," Nina Purewal, brand manager, Cadbury Dairy Milk, tells MiC. "This is a very engaging promotion and, as you can see as you go through the elements, once [people] have comm co mmit itte ted d to the the prom promot otio ion n and and deco decodi ding ng the the me mess ssag ages es,, they're
really
committed.
It's
really
all
about
high
engagement." The The ca camp mpai aign gn has has also also take taken n over over the the Dair Dairy y Milk Milk webs websit ite, e, whic which h open openss to a sec ecre rett eyeb eyebro row w mess essage age and Eyeb Eyebro row w Language decoder overlay. The site also includes extra phrases to decode and a ringtone ringtone of the song from the ad to download. download. Visitors can also watch the original "Eyebrows" ad that first aired in Canada Sept. 14.
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WHAT IS BRAND?
A brand is a name sign symbol slogan or design or a comb co mbin inat atiion of thes these, e, inte intend nded ed to iden identi tify fy the the goo oods ds and and servic services es of one seller seller and to disti distingu nguis ish h them them from from those those of competitors". Branding helps differentiate products and can be a powe powerf rful ul tool tool of co comp mpet etit itiv ive e stra strate tegy gy.. Whil While e prod produc ucts ts ca can n come and go over time, brands (if properly managed) can live inde indefi fini nite tely ly.. Bran Brands ds have have ma many ny bene benefi fits ts for for co comp mpan anie iess and and cons co nsum umer erss. For For co com mpani panies es;; stro strong ng bra rand ndss add add valu value, e, and and consumers develop positive associations with the brand and are less likely to purchase competitors’ products. This means the bran brand d ca can n ac actt as a barr barrie ierr to co comp mpet etit itio ion. n. For For co cons nsum umer ers, s, bra rand ndss help help them them to quic quickl kly y ident dentiify prod produc ucts ts and and ma make ke 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 11
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
awar are eness,
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 12
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. Bra rand nd co core re val alue uess ar are e the genet enetic ic co cod de of the bra rand nd and remain remain the same overtim overtime. e. Closely Closely related related to these these values is the brand proposition : the promise the brand makes to the consumer. This proposition should be easy to understand and appe appeal al to the targ target et ma mark rket et.. The The midd middle le tier tier re repr pres esen ents ts the 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 the bra rand nd them themes es whic which h ar are e co conc ncer erne ned d with with the the bran brand d curre currentl ntly y commun communica icate te throug through h its adver advertis tising ing,, packa packagi ging ng,, fashio fashion, n, techno technolog logica icall develo developm pment entss and changi changing ng consum consumer er 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 helps to ident identify ify the oppor opportu tunit nities ies for brand brand stret stretchi ching ng 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 13
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 cosm co smet etic ics, s, clot clothe hes, s, sung sungla lass sses es etc, etc, such such as “Joh “John n Ro Roch cha a Waterford Crystal”.
CADBURY: THE BRAND The The bran brand d CADB CADBUR URY Y enjo enjoys ys a high high le leve vell of bran brand d equi equity ty.. Researches show 90% of the people recognizes the brand while 74% state that when it comes to chocolate only CADBURY will do.
COMPETITORS: 1.Nestle 2.GlaxoSmith Con 3. Britannia 4. Kwality Dairy
Amitabh Bachchan is Cadbury brand ambassador
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Cadb Ca dbury ury Indi India a Ltd Ltd has has anno announc unced ed that that me mega ga star star Amit Amitab abh h Bachchan will be the company's new brand ambassador. He will endorse and promote Cadbury chocolates cho colates for a period of two years. As brand ambassador, he will play a key role in brand and product communication on television, in print and outdoor media. Cadbury has launched a strengthened, new 'purity sealed' packaging for Cadbury Dairy Milk. The new packaging for 13g (Rs 5) is double wrapped for maximum protection. The chocolate is wrapped in aluminum foil and enclosed in a poly flow flow pack pack,, whic which h is co comp mple lete tely ly seal sealed ed on al alll side sides. s. In the the second phase, the larger Cadbury Dairy Milk packs will come in poly-coated aluminium foil, which will be heat-sealed and then wrapped in the branded outer package. Both these steps are a 'first ever' in chocolate packaging in India. "Over the last few months, we have had some cases of infestation due to improper storage conditions. As a company committed to ensuring that our consumers enjoy a pristine bar of chocolate each time, we decided to take steps to reduce dependency on storage conditions to the extent possible," said Bharat Puri, managing director, Cadbury India Ltd. "Cadbury will do everything it can to ensure that every bar of chocolate that a consumer buys comes full fu ll of goodness and rich taste." Commenting on Amitabh Bachchan as brand ambassador for for Ca Cadb dbur ury y choc chocol olat ates es,, Puri uri sai aid d, "Ther There e is a perf perfec ectt fit fit 15
betw betwee een n Amit Amitab abh h Bachc Bachcha han n and and Ca Cadb dbur ury y choco chocola late tess - thei theirr timelessness, and the love and trust they both share with the people across India, makes this an ideal partnership. Moreover, Mr Bachchan has a universal appeal that extends to everyone from 6 to 60, just as our chocolates do.
We believe his endorsement of Cadbury Dairy Milk will go a long way towards our objective of increasing chocolate consumption among all ages of consumers." Amitabh Bachchan said, "Most of you may not know this, but I have been a brand ambassador for Cadbury for the last 55 year yearss. Only Only,, now now it is offi offici cial al.. Brin Bringi ging ng smil smiles es,, sprea preadi ding ng happiness and joy amongst millions of people in India is what Cadbury and I shall be continuously con tinuously working towards." The The new new 13g 13g (Rs (Rs 5) Ca Cadb dbur ury y Dair Dairy y Milk Milk pack packag agin ing g is currently available only in Maharashtra and the national rollout will take place over the next three weeks. New packaging for the larger bars of Cadbury Dairy Milk, Fruit & Nut, Crackle, Bournville, Caramello, and Double Deck will be completed in six weeks. 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 16
the family brand name is used for all products. The advantage of this approach is the positive associations with the parent brand brand will trans transfer fer to all sub brand brands. s. The risk risk howeve howeverr is that 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 Individua Individuall brand brand names names (multi (multi brands) brands): in this case each
bra rand nd is crea create ted d and and nam named sepa separa rate tely ly and and has has separ eparat ate e identity. identity. Using a family brand may not be that suitable as brand values may be far apart. Combin Combinat ation ion bran brand d names names:: This This appr approa oach ch allo allows ws for for the the
optional use of the corporate brand name, while allowing an individual brand to be identified, e.g. Cadbury Dairy Milk.
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Cadbury uses a combination of brand strategies. The family bra rand nd ,Cad ,Cadbu bury ry is link inked with with its its famo famous us sub bran brands ds , i.e .e.. Cadbury Crème Egg, Cadbury Roses and Cadbury Flake to name a few. few. The The fami family ly bran brand d iden identi tity ty is styl style e co comm mmun unic icat ated ed by packa packagi ging ng with with the Cadbur Cadbury y corpo corporat rate e purpl purple e color color and the distinctive Cadbury script logo. The sub brand is then hen distinguished by its own individual livery. Recently marketers have identified particularly strong family or corporate brands as MASTERBRANDS MASTERBRANDS. Cadbury is such a brand. Howev owever er,, a true rue Maste asterrbra rand nd is mor ore e than nam name of the company company – it incorporates incorporates the company’ company’ss missio mission, n, vision 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. 18
BUILDING A MEGABRAND: CADBURY DAIRY MILK
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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 Ireland. The Cadbury Cadbury Dairy Milk brand has been stretched to become a family brand in its own right. Of all the succ succes essf sful ul Ca Cadb dbur ury y bra rand nds, s, the the one one with with the the grea greate tesst loyal loyalty ty is Cadbury Cadbury Dair Dairy y Milk. Milk. In 2002 more more than 19 millio million n Dair Dairy y
Milk Milk prod produc ucts ts were were sold sold.. Ca Cad dbury bury ma made de a strat trateg egic ic
marketing decision to leverage the value of the Dairy Milk brand (i.e. optimize the market potential of the brand ) by elevating it 23
to a Megabrand or range brand.
A Megabrand or range brand spans an entire range of products, creati creating, ng, rel relati ations onship hipss with with produ products cts which which ma may y have have been 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 Megab Megabran rand d strat strategy egy can add add visibi visibilit lity y to produ product ctss 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 Pres Pressu sure ress and and grea greate terr glob global al co comp mpet etit itio ion. n. Mega Megabr bran ands ds ar are e better resourced and have a greater chance of success than standalone brands.
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SCOPE OF THE MEGABRAND When hen deve evelopi oping a Megab gabra rand nd,, produc oductts are cho chosen sen for for inclus inclusion ion on the basi basiss of their their compat compatib ibili ility ty with with the brand brand’s ’s iden identi tity ty.. For For Ca Cadb dbur ury, y, the the (blo (block ckss) choc chocol olat ate e bran brands ds were were included as they were perceived as variants of Dairy Milk. The core co re prop propos osit itio ion n of the the new new Dairy Dairy Milk Milk Mega Megabr bran and d co coul uld d 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 abandone abandoned. d. To incorpo incorporate rate these products products into the Dairy Dairy Milk range called for a fresh strategy. Both were blockin blocking g chocolate chocolate and provided provided a fit with the Dairy Dairy Milk Milk Megabr Megabrand and.. Their Their inclus inclusion ion provi provided ded the oppor opportun tunity ity to further leverage. The Dairy Milk Megabrand without alienating loyal consumer s. The new Dairy Dairy Milk Bubbly brand benefited 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 25
Dairy Milk Caramel. Other Other range range refres refreshme hment nt initia initiativ tives es invol involved ved deleti deleting ng some some products such as Banoffi while incorporating new variants like Cadbury Dairy Milk Orange Shots. This approach will keep the range fresh.
Cadbury Advertising Timeline their products:1867
Cadbury Cocoa Essence began advertising. They highlighted the purity of the product with the slogan ‘Absolutely pure, therefore best’. 26
1900
Cadbury gained the help of a popular artist Cecil Aldin to create a series of posters and press adverts to advertise their products. 1920s-30s
Cadbury promoted their products through the war by creating the ‘Chocolate Mystery Man’ character. He gave out free gifts, but only if he could be found. 1928
Cadbury Dairy Milk poster campaigns began using the iconic ‘glass and half’ slogan and image to stress its high milk content. 1930s
Cadbury’s status as the nation’s favorite brand becomes the most important feature of the company’s advertising. 1938
150,000 people went on the factory tour every year. It began in 1902 to link people more closely with Cadbury. 1939
During the 2nd World War Cadbury Dairy Milk disappeared. Cocoa and chocolate was under government restriction and only rationed chocolate was sold. 1951
‘The Bournville Story’, a film promoting Cadbury, was made 27
and shown cinemas around the country. 1955
Cadbury Drinking Chocolate was one of the very first ads on commercial television in this year. 1957
Cadbury commissioned thirteen one-minute films shown as TV adverts. These ads described the harvesting of the Cadbury C adbury chocolate ingredient. 1959/60
Flake TV advertising began; it used the iconic theme of a woman sensually enjoying a bar of chocolate on her own. 1970-1974
Memorable television ads raised the sales of Cadbury Fruit & Nut and Whole Nuts by 73% . 1983
The Wispa Bar launched including televised ad campaigns featuring comedians and comic actors talking about the new bar. 1990
Cadbury World opened a £10 million replacement for factory tours. 350,000 people visited in the first year. 1996
Cadbury began a £10 million annual sponsorship of Coronation 28
Street, reaching an audience of eighteen million people. 2007
The Cadbury ‘Gorilla’ ad premiered, immediately becoming one of the most popular adverts in recent year. 2008
Cadbury and Schweppes demerged, splitting its confectionery conf ectionery and drinks business. 2009
Kraft made a surprise proposal to take Cadbury over for £10.2bn.
CADBURY AND ITS PRODUCTS Cadbury Boost is a chocolate chocolate bar made by Cadbury Ireland in
the Republic of Ireland, Ireland, and 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 consis consists ts of milk of milk chocolate chocolate with caramel and biscuit fillin filling. g. The wrapper also states that Boost is "Charged with glucose." glucose."
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Cadbury Brunch Bar is a bar of cereals (oats ( oats,, bran flakes and
crispies) bound with honey and half covered in milk chocolate. chocolate. They come in a variety of flavours: Raisin, Hazelnut, Apricot & Almon lmond d, Cran Cranb ber erry ry & Ora rang nge, e, Frui Fruitt & Nut, ut, Mixe Mixed d Berr Berry y, Chocolate Chip and Toasted Coconut and is made by Cadbury UK . The They y ar are e breakfast type bars that are quick to eat in, and ideally as a slightly healthier and more wholesome snack option to chocolate bars. bars. Cadbur Cadbury y Carami Caramilk lk is a caramel-f caramel-fil ille led d choc chocol olat ate e bar bar ma made de
by Cadbury Adams in Canada. Canada. It was first sold in 1968. [1] Variat Variation ionss availa available ble,, some some of them them limite limited d editio editions, ns, include include Cara Ca rami milk lk ma made de with with dark dark choc chocol olat ate e ma mapl ple, e, choc chocol olat ate, e, or cappuccino. "Chunky" (thicker) versions called Caramilk "Thick" and cylindrical versions called "Caramilk Rolls" (similar to Rolo) Rolo) have also been introduced.
a hard chocolate bar with a crispy peanut flake inside that is made by Cadbury. Cadbury. Crispy Crunch is sold in Canada. Canada. Crispy Crunche nchess were sold in the United States for a brief time in the 1990s by the food distribution arm of Pro 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 Crispy
Crunch is
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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 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 an d packaging. A similar technique has been introduced with Cadbury Double Deck Decker er and Ca Cadb dbur ury y Boos Boostt bars bars.. Ho Howev wever er inst instea ead d of larg larger er 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 Ca Cad dbury bury Dai airy ry Milk ilk brand and is made by Cadbury UK and UK and Cadbu Cadbury ry Irel Irelan and d. The bar is sold in the United 31
Kingdom and Ireland. Ireland. The bar was first launc unched in 1976, Cadbury Caramel Caramel unti originall originally y called called Cadbury untill 2003 2003,, when when it was was renamed. In early 2009 it was relaunched, with the Caramel name re-emphasised as the main on-pack brand, Dairy y Milk Milk brand and and the Dair and reduc educed ed in size. ize. he produc oductt is a Cadbur Cadbury y Dairy Dairy Milk Milk chocola chocolate te bar semi-d semi-divi ivided ded into into blocks 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 dry- fruits 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 frui fruits ts and and nuts nuts in vari variou ouss flav flavou ours rs and and the the prem premiu ium m dark dark choc chocol olat ate e ra rang nge e which which is exot exotic ic dark dark choco chocola late te in lusc luscio ious us flavours. Cadb Ca dbury ury Ce Cele lebr brat atio ions ns has becom become e a popu popula larr bra rand nd on oc occa cassions ons such uch as Diwa Diwalli, Rakhi akhi,, 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 32
purpos purpose e of streng strengthe thenin ning g your your rel relati ations onship hipss with with someth something ing 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 33
cheek advertising, this 'anytime, anywhere' snack zoomed right into the hearts of teenagers. Raag Ra ages eshw hwar arii star starte ted d the the tren trend d of adve advert rtis isin ing g that that feat feature ured d mischievous, bubbly teenagers getting out of their 'stuck and hungr hungry' y' situ situat atio ions ns by havi having ng a Ca Cadb dbur ury y Pe Perk rk.. Ca Cadb dbur ury y Pe Perk rk 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, enca encase sed d in a pack pack that that's 's as co colo lorf rful ul as the the pro rod duct uct itse itself lf?? 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.
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Cadbury Bournvita :
Cadbury was incorporated in India on July 19th, 1948 as a priv privat ate e limi limite ted d co comp mpan any y unde underr the the name name of Ca Cadb dbur uryy-Fr Fry y (India). Cadbury Bournvita was launched during the same year. ye ar. It is among the oldest brands in the Malt Based Food / Malt Food category with a rich heritage and has always been known to provid ovide e the bes best nut nutriti rition on to ai aid d growt owth and and al alll ro roun und d development. Throughout it's history, Cadbury Bournvita has continuously reinvented 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 35
replac repl acin ing g the the trad tradit itio ional nal swee sweets ts.. Apar Apartt from from its its after after dinne dinnerr advertisement Cadbury targeted adults rather than children. In most of its advertisement ents, the brand is endorsed and advertised by adults rather than by children even though it basical basically ly sells sells chocola chocolate. te. Such Such type type of advert advertise isemen ments ts have have crea create ted d a very very wide wide ra rang nge e of co cons nsum umer erss for for Ca Cad dbury bury.. Its Its prod produc ucts ts ar are e not not limi limite ted d to chil childr dren en al alon one. e. Adul Adults ts like like the the products of Cadbury as much as children do. Another reason for Cadbury being such a successful brand was that that it aime aimed d at re repl plac acin ing g the trad tradit itio ional nal swee sweett cust custom om so prevalent in India. Indians have the habit of carrying sweets as gift giftss when when they they visi visitt a frie friend nd or re rela lati tive ves. s. Ca Cadb dbur ury y item itemss 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. Diwa Diwali li and and ra rakh khii pac acks ks ar are e desi design gned ed to give give a feel feel of the the fest festiv ivit itie iess goin going g on. on. They They ar are e excl exclus usiv ivel ely y indi indian anis ised ed.. The The chocolate packs contain special chocoloates such as dry fruits rich rich choco chocola late tess as peop people le norm normal ally ly serv serve e dry dry frui fruits ts duri during ng diwali.
INTERSTING FACTS OF CADBURY 1) Cadbury was the first company company to include include pictures instead of printed text on chocolate boxes.
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2) George Cadbury didn’t want to take mothers away from their children, so he developed a company rule that women had to leave work when they got married. Each married woman was given a bible and a carnation as wedding gifts. 3) In 1886 Cadbury became one of of the first firms to have dining rooms with kitchens kitchens and food for sale. 4) A miniature metal animal (elephant, penguin, owl, fox, duck, squirrel, rabbit or turtle) was given away with specially designed cocoa tins in 1934. In the same year, Cadbury's tokens, which came with packs of cocoa, could be redeemed for lamps, kettles and saucepans. 5) So many children joined Cadbury’s Coco cub Club that it had 300,000 members in 1936. 6) Cadbury’s World Visitor Center opened in 1990, welcoming 400,000 visitors in its first year. 7) Cadbury launched a Get Active program in 2003, helping 10,000 teachers get in shape.
COMMUNICATING STRATEGY
To promote the new Dairy Milk Brand core:
This is the creed or genetic code of the brand; 37
campaign. This involved a implemented a To promote the new Dairy Milk
highly
Megabrand,
Cadbury
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 marketi marketing ng communic communicatio ations ns and and ensu ensure ress that that co cons nsum umer erss receive a clear and consistent message about a brand.
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The The 360 360 degr degree ee supp suppor ortt ca camp mpai aign gn incl includ ude e a poi oint nt of sale sale competiti competition on to win a new look , new display display units , a buy-twoget-one free promotion on 100g bars, PR and advertisements in the the tra rade de pre resss. The The re ressult ult was that that sal ales es of the the new new Megabrand products exceeded targets by 12 % !! The Strategy: •
•
•
The task was to get the youth audience to adopt Cadbury Dairy Milk in the sweet eating or " muh meetha karna" moments The campaign of " Jab Pappu Pass Ho jaye, Kuch Meetha Ho jaye" captured the thought of celebrating a moment of delight with Dairy Milk A campaign was built around the idea of how "pappu" celebrated passing his exams with Dairy Milk
The Media: •
•
•
A multi-media campaign was launched on TV, Internet, Radio and Outdoor The key was how do own the moment of " pappu passing his exams" in the media space An innovative tie -up with Reliance webworld was executed, wherein students across 66 examination boards across the company could access their results on Rworld 39
through their Reliance mobiles. If they passed a message congr congrat atul ulat atin ing g them them on their their mo mome ment nt of deli deligh ghtt from from Dairy Milk was displayed.
Distribution and Selling strategy:
About (70-80) % sugar confectionery and chocolate sales gene genera rate te thro throug ugh h whol wholes esal ale e chan channe nell depe depend ndin ing g upon upon the the nature of product and strategies of manufacturing companies. Almost all but precisely Hilal and B.P rely much on wholesale 40
channel to generate bulk chunk of their total sales. To support thei theirr sale saless thro throug ugh h this this channe channell they they adve advert rtis ise e heavi heavily ly on elect electro roni nicc me medi dia a to creat create e brand brand pull pull for for thei theirr bran brands ds and and subsequently it force retailers to buy these brands from whole sale. The underlying reason behind limited coverage in retail sector by these two companies is they do not have premium priced items that could yield sufficient revenues to make retail distribution viable for their distribution partners so they do a limi limite ted d co cove vera rage ge in re reta tail il sect sector or.. Since ince thes these e co comp mpan anie iess themselves do not emphasize on retail penetration so their distributors also take an escape route and adopt the way of easy selling through WS. However there are companies like Cadbury, Candyland, Mitchell’s and Mayfair that are fully aware of the importance of retail penetration .Hence these companies pay pay due due impo import rtan ance ce and and atte attent ntio ion n to re reta tail il co cove vera rage ge and and subs subseq equen uentl tly y allo allocat cate e re reso sour urces ces for re reta tail il sect sector or.. As stat stated ed earl ea rlie ierr the the em emph phas asis is of Hi Hila lall and and B.P B.P has has al alwa ways ys been been on building consumer pull through mass media advertising (mostly throug through h televi televisio sion) n) and pushin pushing g their their brands brands throug through h widewidespread network of distributors and wholesalers throughout the nation. This combination of “Push & Pull “ has proved to be a successful tool in their cases because the nature of their brands also support this strategy as they produce products of mass market with as low price as Rs.1 , 2 and beyond. Because of this pricing strategy their products are equally popular in rural 41
and urban towns among middle and lower middle class. B.P and Hilal having this advantage enjoy the benefits of a wide-spread distribution network in 300+ towns and over 350 distributors nation wide (as they have more than one distributors in some towns). They always try to adopt cost leadership strategy and genera generate te revenu revenues es throug through h high high volume volumess of sales sales.. Freque Frequent nt launches, re-launches, re-introduction of old brands with slight modifications, withdrawals, adjustments in packaging, product designing and even recipe change are a common phenomenon in the brands of these two major companies. Contrary to this Cadbury’s , Candyland and Mitchell’s believe on establishing brands and brand equity and therefore protraction of quality up to last possible extend remains their th eir top priority.
Until mid 80’s chocolates was supposed to be the product of upper and upper middle class segment. In 1983 Mitchell’s Jubilee was launched first time in Pakistani market at Rs.3.50 per bar. Due to its attractive packaging, quality, affordable pric price e and and an inta intact ct me medi dia a suppo upport rt the the bran brand d re rece ceiv ived ed ununmatched reception and became a success story in Pakistani industry. The brand is still very popular among masses and available in three different price points at Rs.2, Rs.5 and Rs.10. In ea earl rly y 2000 2000 Ca Cadb dbur ury’ y’ss intr introd oduc uced ed qual qualit ity y prod produc ucts ts with with affo afford rdab able le price rice.. The The la laun unch ch of Dair Dairy y Milk Milk (Rs (Rs.5/.5/-), ), 5 Star Star (Rs.5 Rs.5//-), -), Velv Velvet et (Rs (Rs.5/.5/-)) and and Pe Perk rk (Rs (Rs.3) .3) wit with attr attrac acti tiv ve 42
dispensing-chillers was the turning and revolutionary point for makin aking g choco hocollates ates the the choi choice ce for for ever every y one one. The rol ole e of Cadbur Cadbury’s y’s for expans expansion ion of chocola chocolate te ma marke rkett in Pakis Pakistan tan will will always be written in golden words.
SWOT ANALYSIS ANALYSIS
Strengths: •
•
•
Strong brand names like Cadbury Dairy Milk, Five star and Eclairs. Rich product mix. Support from the parent Cadbury Schweppes.
Weaknesses: •
Lack of launch of new brands in Chocolates segment.
Opportunities: •
•
The Indian market and more specifically the urban areas where the penetration of Chocolates is low can be developed as a future market through affordability and availability. Using information and technology to bring efficiency in logistics and distribution.
Threats: •
Stiff competition in Confectionery segment. 43
•
The company has large exposure to foreign currency exchange rate risk, mainly on account of imported cocoa beans and cocoa butter in US Dollar and Pound Sterling.
BUSINESS OVERVIEW
Cadbury India's main source of revenue is its 70% bite of the 23,000 tonnes Indian chocolate market. It is also present in the malted food market (Bournvita enjoys a 24 percent share of the 20,000 tonnes brown drinks market). Of late, the company has ventured into the 120, 120,00 000 0 tonn tonnes es suga sugarr confe confect ctio ioner nery y ma mark rket et ('Go ('Goog ogly ly') ') and has gained about 5% market share there. The revenue break up of its different business segments is as follows:
Despite the fact that Indians have strong affinity for sweets, the size of dom omes esttic co conf nfec ecttioner onery y mar ark ket is sma malll on ac acco coun untt of trad tradit itiiona onal consumer tastes and habits. The Chocolate market in India is a niche market penetrated largely in urban areas and per capita consumption is 44
low as compared to those in developed countries of the West. But future prospects of the chocolate category looks good as the company plans to move into the arena of snack foods, as it has done in the Western markets. The market for Malted food drinks is large and is characterized by a few large players. The market can be broadly segmented into white malted food drinks which dominates in the Southern and the Eastern parts of the country and Brown Malted food drinks which dominate in the North and the West. Large brands like Bournvita and Horlicks dominate in Malted food drinks sector and the growth has been steady in the last five years.
The futu futur re missi ission on of Cadb Cadbur ury y Ind India is 'A Cadb Cadbur ury y in Ever Every y Pocket'. The company's business strategy hinges on following for driving
its future growth: Incre Increas ase e the the widt width h of choco chocola late te co cons nsum umpt ptio ion, n, thro throug ugh h low low pric price e point packs and distribution focus. Inc Incre reas ase e dep depth of co cons nsum umpt ptio ion, n, targ target etiing re reg gular ular choc chocol olat ate e consumers through generating impulse and a dominant presence at Point of Sale. Maintain image leadership through a superior marketing mix. Be a significant player in the gifting segment, through occasion linked gift packs. Build critical mass in the sugar business by introducing value-added sugar confectionery products. Future revenue growth will be through increasingly higher volumes rather than price increases. The management believes that price increase can only be a short term objective. It is volumes, which are very important to achieve the long-term goal of having a wide consumer base. The company sees its growth in future in market expansion and new prod product uct launc launches hes.. Incre Increas ased ed re reac ach, h, new laun launche ches, s, high higher er ma mark rket etin ing g spend and intensive promotions - the mix, Cadbury is looking at to fuel its future growth. The company is also looking for acquisition of brands, and its huge cash reserves might be utilized for the purpose. •
•
• •
•
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INTEGRATED INTE GRATED MARKETI MAR KETING NG COMMUNI COMM UNICATION CATION OF CADBURY CAD BURY
Marketing communication mix elements Advertising:
“ Adve Advert rtis isin ing g is the the nonnon-pe pers rson onal al co comm mmun unic icat atio ion n of information usually paid for and usually persuasive in nature abou aboutt pro rodu duct cts, s, serv servic ices es or idea ideass by iden identi tifi fied ed spon sponssor orss through the various media” (Bovee, 1992). Television, the print media and posters have been the main media of commun communica icatio tion n for Cadbur Cadbury’s y’s advert advertise isemen ments. ts. Cadbur Cadbury’s y’s TV campaign was devised illustrating the essential consumption occasi asions. For example, the eight wee eek ks cam amp paign of Cadbury’s TV advertising to be showed in the evening time was seen by its target audience and it had reached 85% of the market. In addition, according to the sources from Cadbury’s 46
website, there are other types of advertising form being used in Cadbury which is the trade advertising, informative advertising and the consumer advertising. Cadbury has launched a lot of peri period odic ic trad trade e adve advert rtis isin ing g to mo moni nito torr qual qualit ity y chec checks ks and and educate its retailers as well as promoting sales. For the purpose of infor nform m and rem emiind cus custom tomer ers, s, Ca Cad dbury ury publi ublish shed ed an advertising regarding “the facts about Cadbury” in 55 trade publications. Cadbury never ignore the importance of consumer advertising that people can see many Cadbury’s advertising in news newspa pape per, r, ma maga gazi zine, ne, Ca Cadb dbur ury’ y’ss webs websit ite e and so on. on. More More importance importance,, Cadbury Cadbury has launched launched a response response cell through through toll free number and an email id to encourage its customers to give feedback. Transition of Cadbury ads from older days to present days
1)Old Ads Focuses on cricket. Spread joy Focusing on different professions 2) New ads More trendy Teenage oriented More event oriented.
ADVERTISING THEIR PRODUCTS IN DIFFERENT WAYS
The sales of product in the market depend upon advertising which is one of the factors that boosts the sales of 47
the produ product ct in the market market.. Advert Advertisi ising ng can be in the form of print advertising, banner advertising, advertising on Television, radi ra dio o adve advert rtis isin ing g and and of co cours urse e adver adverti tise seme ment nt on Inte Interne rnet. t. Over the last several years internet has emerged as a strong and and succe success ssfu full plat platfo form rm for for adve advert rtis isin ing g a prod product uct by usin using g different ways and methods to attract the attention of the cust custom omer ers. s. There There ar are e vari variou ouss ways ways to captu capture re the thoug thought ht process, which runs in the minds of the customers, and it is done on a regular basis through the medium of advertising. The purpose of running an advertising campaign is to generate the interest of new customers into the product, and to sustain the interest of regular customers in the product, so that there mind remains focused on the brand name and image of the product. Thus the advertisement of the same product can be seen simult ultaneo neousl usly
at
many any
different ent
places.
Cadbury's
advertisement can be seen during the late evening hours when differ different ent soap soap opera are broadc broadcas asted ted.. Then Then on switchi switching ng on the laptop to check the emails received during the day, the advertisement of Cadbury can be seen again, but of course, this time the form of advertisement i.e. size of advertisement is small, it looks like a teaser and the medium is different, here intern internet et playing playing an importa important nt role. role. At weekend weekend while while going through the shopping mall the same advertisement of Cadbury can ca n be seen seen high highli ligh ghte ted d in big big post poster erss and and banne banners rs,, givi giving ng more prominence to brand name, the product name and in 48
ord or der to attra ttract ct the cust custom omer er''s atte attent ntiion, on, them heme of the the advertisement also been a part of the poster, which also gets highlighted. Different brand names, different products and different ways of promoting the product. For Example:When Sun feast biscuits were initially launched, there was an aggressive advertisement campaign that was been done for the the Sun Sun feas feastt bisc biscui uits ts by putt puttin ing g stal stalls ls at diff differ erent ent place places, s, where maximum number of customers come regularly, like for instance there was a stall of Sun feast biscuit at an exhibition which was been held on a ground, where there were number of different stalls and at the end when the customers are about to leave the exhibition ther ere e are different foo food stal allls and refreshment stalls. Amongst the various different stalls in the exhibition, one stall was that of Sun feast biscuits and there were sizable number of customers, who were keen and eager to know more about Sun feast biscuits and some were even purchasing the biscuits. A few days later the same stall was seen at a shopping mall and now the number of customers were more than before. The reason being advertisements of Sun feast biscuits been shown on TV.
Later on Sha Shah Rukh was rope oped in for the the 49
advertisement of Sun feast biscuits and now Sun feast is a known to to a large number number of customer customers. s. Thus initiall initially y for any brand name it is important to gauge and know the customer's reaction, reaction, their opinion opinion and views, and then slowly slowly introducing introducing the product in the market for the customers on a regular basis. So advertising here also plays a major role, banners and dangles must be attractive at the time of initial launch of the product. While advertising on the internet there are many customers, who visit the Cybercafe and obviously they also comes across the advertisements. advertisements. So there are different different ways to gra rab b the the atte attent ntiion of thes these e cust custom omer erss.
Many Many tim times
prom promin inen entt webs websit ites es like ike MSN, MSN, Ya Yaho hoo o and and othe otherr big big name namess related to websites are roped in and then there is a different format which is used to make sure that the customers make a note of the advertisement and pay attention to the product deta detail ils. s.
Like Like for insta instanc nce e ther there e is a Co Conte ntest st which which is been been
conducted wherein the customer will have to fill in the small form which requires his Full Name, mobile number, Address and email ID. Once these details details are filled in the customer has has to make sure that he has given the correct answer to the questi question on and then submit submit the form. form. This This is where Cyberc Cybercafe afe customers are concerned. Many a times during movies and during cricket matches ther there e ar are e onli online ne co cont ntes ests ts,, whic which h ar are e co cond nduc ucte ted d wher where e the the 50
customer has to select the right answer by clicking on one of the four different options options provided to him i.e. A, B,C and D and then SMS the right answer on the given mobile number. There are ar e mo mobi bile le co comp mpai aine ness who who have have co cond nduc ucte ted d thes these e kind kind of cont co ntes ests ts,, re rece cent ntly ly Micr MicroM oMax ax has has done done this this co cont ntes estt duri during ng cricket matches. Thus Thus cus custom ome ers are always there, eac ach h indi ndividual customer has his own purchasing capacity, but when it comes to deci decisi sion on ma maki king ng by the the custo custome merr with with re resp spec ectt to bran brand d names many times advertising plays an important factor in the process process of purchasin purchasing g the product. product. This happens happens at the the time when the customer makes a final decision. Many brand names re-launch their products in the market depending upon the previous reaction received and upon the fact that what were the additional features that were required in the product because of which sales dropped. It is important that the customer knows about different brand names irrespective of the fact, which product, he buys at the end of the day. This is where where advertisi advertising ng and promoting promoting a product in the market plays a dominant role. Medi Media a Adve Advert rtis isin ingg- Use Use of avai availlable able me medi dia a chan channe nels ls,, meaning cinema, TV, radio, press and the internet. In other words the Cadbury should focus on the media through which it reaches its primary target market-young people of age 16- 35. During the pre launch campaign Cadbury should not address 51
the the co cont ntro rove vers rsy; y; howe howeve verr it shou should ld ma make ke it clea clearr that that the the product is not suitable for age below 15 and not advisable for preg pregna nant nt wome women. n. This This way way the compe competi titi tion on will will keep keep thei theirr mouth shut and their will be no post launch negativism in Singapore. This will be done a month before the launch. Direct marketing:
Direct marketing defines the practice of directly provide the prom promot otio iona nall info inform rmat atio ion n to pote potent ntia iall cust custom omer erss inst instead ead of through a media. Direct marketing enable firms to build close relationship with their customers and collect the most relevant customer information. Direct marketing is cheaper and quick way to get in touch with your target customers and offer more choi choice cess as firm firmss cuto cutout ut the the inte interr-me medi diat ator ors. s. For For exam exampl ple, e, telemarketing is a fast growing form of direct marketing in the recent years. For the purpose of boosting the awareness and stim stimul ulat atin ing g sale sales, s, Ca Cadb dbur ury y Tr Treb ebor or Bass Basset ettt had had la laun unch ched ed a series of direct marketing campaign such as the dairy milk’s door drop campaign through the leaflet firms. Mailings and inse insert rtss to hous house e is bein being g freq freque uent ntly ly used used in the the Ca Cadb dbur ury’ y’ss direct marketing campaign and those campaigns have meet the objectives of Cadbury such uch as increasing the sales dramatically during the campaign time and it conducted a lot of vali valid d custo custome merr info inform rmat atio ion. n. For For examp example le,, Cadbu Cadbury ry’s ’s mult multiiaward winning campaign like the “Real Taste of Life” to capture the child like spontaneity in every adult had reached extreme success. Moreover, in order to extend the reach of its popular gorilla campaign and capitalize the target customers of 18-34 years old, Cadbury had created the Vodafone mobile marketing to deliver extra content and take the brand awareness and brand identity to a new level amongst the target audience.
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Interactive media :
The interactive media is more effective than traditional medi me dia a becau because se it allo allows ws cust custom omers ers to part partic icip ipat ate e and and give give feedback throughout the process of purchase and consumption. Interactive media can take many forms such as the company website, mail box and virtual reality mall kiosks. The frequently asked quest estions on Cadbury’s website are being use used effectively at all time for customers. For example, the FAQ has provided information as “we were listened and fixed” as New Zealand customers complain the palm oil in Cadbury dairy milk chocolate. And now the cocoa butter only Cadbury dairy milk chocolates are back in the New Zealand market. In addition, Cadbury likes its customers to engage in the operations so as to offer the desired taste of chocolate for its target customers. Moreover, customers can chat on the Cadbury’s community webs websit ite e to obta obtain in mo more re prod produc uctt info inform rmat atio ion n and and prov provid ide e feed feedba back ck to the the Ca Cadb dbur ury y ma mana nage geme ment nt team team.. For For exam exampl ple, e, customers are encouraged to joint the promotions of Cadbury’s Online Community competition, Great Picnic Challenge and the Top Gear Live Promotion.
Sales promotion :
Sales promotion is a common strategy that used to offer extra value or incentive for the product to the sales force, distri distribut butors ors or ultima ultimate te consum consumers ers.. Sales Sales promot promotion ion can be consumer oriented and trade oriented, businesses could take one of them or combine two together if require. Samples given, coup co upon onss give given, n, bonu bonuss pac acks ks and and pric price e off off deal dealss ar are e very very common form of consumer oriented sales promotion. Trade 53
orient orie nted ed prom promot otio ion n ca can n be done done thro throug ugh h trad trade e allo allowa wance nces, s, trade shows, cooperative advertising and so on. Cadbury has laun la unch ched ed ma many ny sale saless prom promot otio ion n ac acti tivi viti ties es espe especi cial ally ly the the customer oriented promotion that customers can benefit from it such as the Cadbury dairy milk buttons had launched the kids cam ca mpai paign in the the cit city ce cent ntre re in Apr April last ast year year,, the targ target et audience nce of the ca cam mpaign is parents nts with kids and the campaign include treasure hunts, face painting, story telling and biscuit and button decorating. Furthermore, Cadbury has been launching the yearly discount selling or price off sales promotion activities during Christmas time in supermarket for a long time and it does increase sales dramatically every year. ye ar.
Publicity/public relation :
Business trend to use the news or business press to create and carry positive images or stories about their business and products for the purpose of stimulate their sales and operations. Therefore, building a good relationship with local press representatives to support good reputation in the public is sign signif ific ican antl tly y impo import rtan antt for for firm firmss beca becaus use e peop people le like like to supp uppor ortt firm firmss with ith posi ositive tive imag image e and and goo ood d reput eputat atiion. on. However, public relation is a risky way of communication due to firms cannot control the infection in negative aspects. Cadbury utilizes variety of tactics for the public relation such as the activities of spons onsorship of screencl nclick.co .com, the radio promotion, media gift, product placement and point of sales. Cadbury has put much attention to the concern of publicity such as the company always inform to consumers about its chan change gess. For For inst nstance ance,, co cons nsum umer erss ca can n see the bus busines inesss evolution evolution information information on Cadbury Cadbury website website like the “NZ Product Changes Q & A” The most distinctive form of building public rela re lati tion on for for Ca Cadb dbur ury y is its its Tr Trad adin ing g Te Term rmss that that decl declar are e the the Cadbury conditions of purchase for detailers to offer the best 54
quali quality ty of chocola chocolate te and servic service e for consume consumers rs.. The Cadbur Cadbury y Nutrition Nutritional al labeling labeling global global standard standard to explain explain about consumer heal health th and and ing ingre redi dien entt ar are e al also so indic ndicat ated ed on the the co comp mpan any y website which include the detailed product information and consumer health issues.
Sponsorships:
Sponsorships is the branding marketing that businesses invest to support a particular event, program or project so as to gain the commercial advantages and showing their advertisement. For example, firms involve coordinated beyond the banner placements in special event in order to broadening its competitive edge by improving the company’s awareness, image, prestige and credibility. Sport sponsorships is a popular tre rend nd that hat many any fir firms used used to fost foster er thei heir bra rand nd loyal oyalty ty program in the modern time. Cadbury has a long tradition of sports sponsorship hip, both in its original count untry and of supporting major international events. Cadbury New Zealand had announced to be the official treat provider of the New Zealand Olympic Teams for Vancouver 2010 and London 2012. In add addition, it’s easy to find out the infor formation about Cadbury’s international sponsorships promotions such as the Coronation Street and Cadbury's Chocolate and the Cadbury sweeten London 2012 sponsorship. Personal selling :
Personal selling is a two ways communication between sellers and buyers and it can be done through face to face, via the internet or telephone. From personal selling, firms can gain the feedback quickly from customers, demonstrate the benefits of particular products and adjust their message immediately to capture customers’ concern and desire needs. Personal selling had been used long time ago by Cadbury and it is not being 55
used anymore as brand awareness and brand identity of the Cadbury was increased dramatically.
OTHER MARKETING MIX ELEMENTS OF CADBURY Brand name and package
Cadbur Cadb ury y is the the mo most st popu popula larr choc chocol olat ate e Bran Brand d in Ne New w Zealand. Cadbury dairy milk chocolate, Cadbury Jaffas, Cadbury Moro and Cadbury Pinky and so on are all famous symbols of Cadbury series that well-known in New Zealand market. When cust custom omer erss say say some someth thin ing g about about choco chocola late te,, Ca Cadb dbury ury is the the major brand that will appear to customers’ mind. Therefore, the brand name of Cadbury is vital to all its promotion activities and campaigns. In addition, the package of Cadbury dairy milk chocolate also creates the brand image to communicate the Cadb Ca dbury ury brand brand with with co cons nsum umer ers. s. The pack packag age e of Ca Cadb dbur ury’ y’ss prod product uctss alway alwayss pack packed ed with with diff differe erent nt color colorss and and pict pictur ures es according to different tastes. For instance, the strawberry taste of Cadbury dairy milk chocolate is packaged with red-pink color and and Stra Strawb wber erry ry pict pictur ures es.. More More impo import rtan ant, t, the the la labe beli ling ng on Cadb Ca dbury ury’s ’s prod product uctss ar are e prov provid ided ed re resp spons onsib ible le co cons nsum umpt ptio ion n messages and nutrition information to help educate consumers about the role of treats in the diet.
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5 P’S Of Cadbury 1 - PRODUCT
The average company will compete for customer by conforming to his expectation consistently. But the winner will surpa urpasss them hem by co cons nsttantl antly y exce exceed edin ing g his his exp expec ecttati ation, on, delivering to his door step additional benefits which he would never have imagined. Cadbury’s offer such product. The wide variety products offered by the company include: I. Chocolate & Confectionary
1) Dairy Milk 2) Fruit & Nut 3) 5 Star 4) Break 5) Perk 6) Gems 7) Éclairs 57
8) Nutties 9) Temptation 10) Milk Treat
II. Beverages III. Food Drinks
1) Bourn vita 2) Drinking chocolate 3) Cocoa
2 – Pricing Make no mistake. Second P of marketing is not another name for blindly lowering prices and relying on this strategy alon alone e to incr increa ease se sale saless dram dramat atic ical ally ly.. The stra strate tegy gy used 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. Therefore maximizing the returns involves identifying right price level for each segment, and then progressively moving through them. Dairy Milk Rs. 15 Perk Rs. 10 5 Star Rs. 10 Fruit and Nut Rs. 22 58
Gems Rs. 10 Break Rs. 5 Nutties Rs. 18 Bournvita (500 gm) Rs. 104 Drinking chocolate Rs. 50.
3 - Physical Distribution – “Place”
Distribution Equity: It takes much more time and effort to build, but once built, distribution equity is hard to erode. The fundamental axiom of Indian consumer market is this: You can set up a state-of –the-art manufacturing facility, hire the hottest strategies on the block, swamp prime television with best Ads, but the end of it all, you should know how to sell your products. The cardinal task before the Indian market in managing is to shoe-horn its product on retail shelves. Buyers are paying for distribution equity not brand equity and market shares. India – 1 billion people, 155 million household has over 4 mill millio ion n re reta tail il outl outlet etss in 5351 5351 urban urban ma mark rket etss and 5527 552725 25 vill villag ages es,, sprea pread d cros crosss 3.28 3.28 mill millio ion n sq. sq. km. km. tele televi visi sion on has has alre al read ady y prim primed ed and and popu popula lati tion on for for co cons nsum umpt ptio ion, n, and and the the marketer who can get to the to the consum nsume er ahe ahead of competition will give a hard – to – overtake lead. But getting thei heir mea eans ns mana anaging ging wil wildly diff differ eren entt ter erra rain inss-cl -climat imate, e, language, value system, life style, transport and communication network. And your brand equity isn’t going to help when it comes to tackling these issues. Own distribution network consist of clearing and forwarding (C&F) agents & distribution stockiest. This network 59
of distribution can either contact wholesalers and which in turn retailers or the distributors can contact to the retailers directly. Once the stock product reaches retailers, the prospective custom ome ers can have ave acce cesss to the product. Cadbury’s distributes the product product in the manner stated above. above. Cadbury’s distribution network has expanded from 1990 distributors last year to 2100 distributors and 4,50,000 retailers. Beside use of TI to improve logistics, Cadbury is also attempting to improve the dist istrib ributi ution qual qualit ity. y. To addre ddress ss the issue of produc oductt stability, it has installed visit colors at several outlets. This help helpss in ma main inta tain inin ing g co cons nsum umpt ptio ion n in summ summer er when when sale saless usually drops due to the fact that the heat affects product quality and thereby off takes. Looking at the low penetration of the chocolate, a distribution expansion would itself being incremental volume. The other reason is arch rival Nestle reaches more than a million retailers. This 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 pure sugar confectionery major Parry’s 11%. The company is looking to reduce this parity level. At Cadbury, they believe that selling confectionery is it like selling soft drinks.
4 - Promotion
Effective advertising is rarely hectoring or loudly explicit…. It often both attracts and generates arm feelings. More often than not, not, a succ succes essf sful ul ca camp mpai aign gn has has a stro strong nger er el elem emen entt of the the unexpected a quality that good advertising shares with much worthwhile literature.
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To To penet penetra rate te into into the the inner inner re reces cesse sess of custo custome merr me memo mory ry,, communication must first ensure exposure, grab his attention evok evoke e his his co comp mpre rehe hens nsio ion, n, gra rab b his his ac acce cept ptan ance ce and and then 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. The strategic response addresses 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. Thereafter it was the job of the advertising to communicate customer the wonderful feeling that he could experience by re-discoursing the careful, unselfish conscious, pleasure – seeking child within him – and graft these feeling onto the Ad campaign like “Khane Walon Ko Khane Ka Bahana Chahiye” for CMD and “Thodi Si Pet Pooja – Kabhi Bhi Kahin Bhi” for Perk have been sure shot winner with the audience. Whirl with the new launched temptations with the slogan “Too To Share” 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 ATM machines for the brand. All ICICI’s ATM a message flashes on the screen as soon as customer inserts his ATM card. It tells the customer that this would be good time to get out of his temptation since he/she is bound to be alone. Something familiar is planned for phonebook as well. In cinemas, Cadbury has a message on-screen just before the lights are dimmed to give them a chance to get their temptations. There will also be after dinner sampling in restaurants – to begin with, 30 catteries in Mumbai have been selected. 61
The next round of activity will include the wafer-chocolate Perk and the Picnic 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. c ustomers. 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 ment me ntio ion n ‘e ‘e’’ word word,, the the ma mana nage geme ment nt plan planss to tap tap this this new 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 also enter entered ed into into vari variou ouss ma mark rket etin ing g re rela lati tion onsh ship ip with with othe otherr portals, specially targeted during festivals and events such as Valentines Day, etc…. It’s a combination of stiffing up its key brand, researching and improving the newer products that haven’t taken off, supported with high ad – spends that Cadbury hopes will see it emerges stronger after the current slowdown, as well as expand the market. 5 – Positioning
In the 1970s consumers were ready to pay “more for more”, and luxury goods flourished. In the 1980s, consumers began to demand “more for same”, and the discounting era grew strong. Today’s consumer demanding “more for less”, and the winner will be that super value marketers…. Some of today’s most succe success ssfu full co comp mpan anie iess re reco cogn gniz ize e thos those e custo custome mers rs ar are e mo more re educated and able to recognize true customer value… 62
Positioning is simply concentrating on an idea – or – even a word defines that company in the mind of the consumer. It is more efficient to market one successful concept to one large group of people than 50 product or service ideas to 50 separate group… repositioning is a must when customer attitude have changed and product have strayed away from the consumer’s long standing perception of them… Cadbury’s is an anchor in sea of confectionary products. As a var ariiety ety of co com mpeti petiti tiv ve clai claims ms assa assail ilss her her sens senses es,, tod today customer uses complicated decision making process to assess the alternative before making a purchase. Since Cadbury’s is more clearly associated with a particular set of attributes in terms of benefits and prices, the quicker becomes her search process.
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Segmentation, Targeting, Targeting, and Positioning
Segmentation, targeting, and positioning toget ogethe herr co com mpri prise a three hree stage tage pro roce cess ss..
We firs firstt (1) (1)
determine which kinds of customers exist, then (2) select which ones we are best off trying trying to serve and, finally, finally, (3) implement implement our segmentation by optimizing our products/services for that segment and communicating that we have made the choice to distinguish ourselves that way. Segmentation:-
It invo involv lves es find findin ing g out out what what kind kindss of co cons nsum umer erss with with different different needs exist. exist. In the auto market, market, for example, example, some consumers demand speed and performance, while others are 64
much more concerned about roominess and safety. In general, it holds true that “You can’t be all things to all people,” and expe experi rien ence ce has has demo demons nstr trat ated ed that that firm firmss that that spec specia iali lize ze in meeting the needs of one group of consumers over another tend to be more profitable. Generically Generically,, there are three approache approachess to marketing. marketing. In the undifferenti undifferentiated ated strategy, all consumers are treated as the same same,, with with firm firmss not not ma maki king ng any any spec specif ific ic effo effort rtss to sati satisf sfy y part partic icul ular ar grou groups ps.. This This ma may y work work when when the the prod produc uctt is a standard one where one competitor really can’t offer much that another one can’t.
Usually, this is the case only for
commoditi commodities. es. In the concentr concentrated ated strategy, one firm chooses to focus on one of several segments that exist while leaving othe otherr segm segmen ents ts to co comp mpet etit itor orss.
For For exam exampl ple, e, Sout Southw hwes estt
Airlines focuses on price sensitive consumers who will forego meals meals and assigned assigned seating for low prices. prices. In contrast, contrast, most airl airlin ines es follo follow w the the diff differ erent entia iate ted d stra strate tegy gy:: They They offe offerr high high priced tickets to those who are inflexible in that they cannot tell in advance when they need to fly and find it impractical to stay over a Saturday. These travelers—usually travelers—usually business business travelers— travelers— pay high fares but can only fill the planes up partially. Targeting:-
In the nex next step, we decid cide to target one or more segmen segments. ts. Our choice choice should should generall generally y depend depend on severa severall factors. factors. First, First, how well are existing existing segments segments served by other manufacturers? It will be more difficult difficult to appeal to a segment 65
that is already well served than to one whose needs are not curr curren entl tly y bein being g serv served ed well well..
Seco Second ndly ly,, how how la larg rge e is the the
segm segment ent,, and and how how can we expe expect ct it to grow? grow? (Not (Note e that that a downside to a large, rapidly growing segment is that it tends to attr attrac actt co comp mpet etit itio ion) n).. Thir Thirdl dly, y, do we have have stre streng ngth thss as a company that will help us appeal particularly to one group of consum nsume ers?
Firms
may
already ady
have
an
established
reputation reputation.. While McDonald’ McDonald’ss has a great reputati reputation on for fast, consistent quality, family friendly food, it would be difficult to convince consumers that McDonald’s now offers gourmet food. Thus, McD’s would probably be better off targeting families in search of consistent quality food in nice, clean restaurants. Posit Pos itio ioni ning ng:-
The term “positioning” is widely used within the marketing and and adve advert rtis isin ing g co comm mmun unit itie iess toda today, y, and and its its me mean anin ing g has has expanded beyond the narrow definitions of Trout and Ries. Positioning is often used nowadays as a broad synonym for mark ma rket etin ing g stra strate tegy gy.. Ho Howev wever er,, the term termss “pos “posit itio ioni ning ng”” and and “mar “m arke keti ting ng stra strate tegy gy”” shoul should d not not be used used inte interc rcha hang ngeab eably ly.. Rath Ra ther er,, posi positi tion onin ing g shou should ld be thoug thought ht of as an elem element ent of strategy, a component of strategy, not as the strategy itself. The The term term “pos “posit itio ioni ning ng”” is, is, and and shou should ld be, be, inti intima mate tely ly connected to the concept of “target market.” That is, a brand’s positioning defines the target audience. For example, an airline might position itself against other airlines, which defines the target audience as airline travelers. Or, it might position itself 66
against all modes of transportation between two destinations, which then defines the target audience as all travelers between those two markets. The second positioning reaches out to a much larger target audience. Segmentation of Cadbury:
Righ Ri ghtt now now Ca Cadb dbur ury’ y’ss new new adve advert rtis isem ement ent ca camp mpai aign gn is doing the rounds over the television. “Meetha hai khana,aaj pehli tareek hai” is the tagline that the chocolate-giant has come out with. It tries to bring forth the excitement, which lies in the minds of the general public as they wait for the first date of each month on the calendar. The monthly salary stashed in their hands enables them to celebrate and rejoice by spending it on Cadbury’s Dairy Milk. Cadbury’s Dairy Milk has come out with such memorable adcampaigns, which settled into the hearts of everyone. The story starts with “Once upon a time in 1948…” when Cadbury entered the Indian market. It originated from a town in the United Kingdom, Bournville (also the name of its recently launched high-end chocolate) in 1905. As the Cadbury’s official web site suggests, its journey in India has been an eventful one. In the early 1990s, it tried to cate ca terr to the the sweet weet too ootth of the chil child dre ren. n. Thos Those e days ays they hey steered the market and took control over the company’s major market share. However, the strategy changed by letting out the secret that “everyone has a child inside “ and thus everyone 67
crav craves es for for the the tast taste e of choco chocola late te.. Ca Cadb dbur ury y stra strate tegi gies es went went through a considerable change. It now catered from children to adults and from chocolate to mithai. As the tagline goes “Khane walon ko kahne ka bahana chahiye”. The hole-in-one for the company was when it identified sweets to be a very integral part of the Indian culture. It made sure that the festive and jubilant moods of the society that had paved the way for kilos and kilos of mithai, now made way for a large number of Cadbury’s. Meetha did to Cadbury’s what thanda had done for CocoCola. Both helped them crawl their ways through into hearts of the rural population of the country, which had an untapped and astounding potential. The The adve advert rtis isem emen entt ca camp mpai aign gn of Amit Amitab abh h Bach Bachch chan an,, dressed up as a villager, proudly announcing that his “daughter-figure” won beauty contests for cattle, brought out the laug aughs and and struck ruck a chor chord d with with the sam ame e segm egment ent of people. Latter ca La cam me the ca cam mpai paigns of “P “Pap app pu paa aass ho gaya gaya”” acknowl acknowledg edged ed the market market potent potential ial for colleg college-g e-going oing youth. youth. The treats for passing exams were now a Cadbury instead of a mithai.With Kuch Meetha Ho Jaye, we knew Cadbury’s was now a desert craving as well as a popular gift-item for festivals such as Raksha Bandhan and Diwali. Cadbury’s also diversified its rang ra nge e of prod produc ucts ts with with Wo Wowi wie( e(wi with th Disn Disney ey char charac acte ters rs for for 68
kids),Crackle,
Fruit
and
Nut(variations
of
the
Dairy
Milk),Bournvita(health drink)Deserts,Perk(wafer ingredient) and éclairs(toffee segment). Cad Ca dbury ury’s today oday hol holds 30 per ce cent nt mar arke kets ts share hare in the the confectionaries industry and sells around 1 million bars a day. Targeting of Cadbury
Cadbury is looking to attract millions of new customers by shifting its strategy to focus on low-income consumers. The British candy maker, which has been in India for more than 60 years and dominates the chocolate market, is making candy afford affordab able le to this this massi massive ve untapp untapped ed segmen segmentt with with produc products ts such as Cadbury Dairy Milk Shots--pea-sized chocolates, sold two to a package, for two rupees, or about four U.S. cents. These chocolates are encased in a sugar shell to protect them from the heat. "We seek to reach out to all of those consumers that are away from the cities and to sell [small] piece products at low price points," stated Cadbury chief executive Todd Stitzer. Positioning of Cadbury
Cadbury India has unveiled a new campaign that continues continues with the brand's brand's 'Kucch Meetha Ho Jaye' positioning. positioning. Created by Ogilvy & Mather, the campaign revolves around the theme of 'Pay Day', which is associated with happiness by most people. Brand positioning is the aspect of the brand actively 69
communi unicated
to
the target
audi udience nce,
specif cifical allly,
its
comp co mpet etit itiv ive e adva advant ntag age, e, valu values es and imag imager ery. y. It is stro strong ngly ly rela re late ted d to the the perc percep epti tion on and and imag image e of the prod product uct.. When When devising a positioning strategy for a product, marketers must establish a unique and distinctive image of that product in the mind mind of the the co cons nsum umer er.. This This will will diff differ eren enti tiat ate e a compan company’s y’s product from its competitors.
OVERCOMING THE WORM CRISIS USING IMC
The discovery of worms in some samples of Cadbury’s Chocolate in early October 2003 created one of the biggest controversies in India against a Multi National reputed for being a benchmark of QUALITY. The state Food and Drug Administration has ordered seizure of Cadbury's Dairy Milk chocolates from all over Maharashtra after worms were found in two of them in Mumbai. Cadbury India, whose chocolates had ridden into controversy late last year during the festival season because worms were disc discov over ered ed in some some stoc stocks ks of its its Dair Dairy y Milk Milk choc chocol olat ates es is prob probab ably ly hopi hoping ng the the asso associ ciat atio ion n with with Bach Bachch chan an will will help help consumers consumers forget forget the bad press the the company company got on account of the discovery. The The Foo ood d and and Drug rug Admi dminist nistra rattio ion n had had then hen sei eizzed the the comp co mpan any' y'ss stoc stocks ks and and the Ca Cadb dbur ury y India India ma mana nage geme ment nt had had exp expla laiined ned it was was bad stora torage ge prac acttices ices by re rettai aile lers rs and distributors that had led to the worms. Cadbury India's sales fell following the discovery. And even the government got into the act with the central health ministry asking for a report on the controversy. 70
The "worms "worms‟‟ controversy controversy"" came at the the worst time. time. The next few months were the peak season of Diwali, Eid & Christmas. Cadbury sells almost 1,000 tonnes of chocolates during Diwali. In that year, year, the sales sales during during festiv festival al season season dropped dropped by 30 per cent. The company saw its value share melt from 73 per cent in October 2003 to 69.4 per cent in January 2004. In May, however, it inched up to 71 per cent. CDM sales volumes declined from 68 per cent in October’03 to 64 per cent in Jan Janua uary ry 2004 2004 Cl Clear early ly,, the the worm worm co cont ntro rove vers rsy y took took a toll toll on Cadbury's Cadbury's bottom-line. bottom-line. For the year ended December December 2003, 2003, its net profit fell 37 per cent to Rs 45.6 crore (Rs 456 million) as compared with a 21 per cent increase in the previous year. The The co cont ntro rove vers rsy y crea creatted an dee eep p adve advers rse e impa impact ct on the company with their sales not only drastically dipping down, but at the same time allowing the competitors to establish their foothol old d and taki aking maximum advantage of Cadbury ury’s misfortune. The controversy, controversy, and the adverse publicity publicity received received in several countries, set back its plan of outsourcing model which would have resulted in significant revenue generation, several months back.
ROLE OF THE PUBLIC RELATIONS
PR concerns the total communications of your organization/group of organizations.
total
PUBL PUBLIC IC RELA RELATI TION ONS S FORM FORM AN INDI INDISP SPEN ENSA SABL BLE E PART PART OF ANY ANY ORGANISTION. Publi ublicc rel elat atio ions ns incl nclude ude ongo ongoin ing g activ ctiviities ties to ens ensure ure the the company has a strong public image.
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Publi ublicc rel elat atiions ons ac acttivi ivities ties inclu nclude de help helpin ing g the the publi ublicc to understand the company and its products. Often, public relations are conducted through the media that is, newspapers, television, magazines, etc. It is unlike advertising, where you are sharing skills of planning, creative and media buying teams with an out-sourced agency. PR calls for a very intimate understanding of the total inner workin workings gs of your organis organisati ation on at all levels levels worker workerss to Board Board levels. It requires the integration of knowledge and commun communica icatio tions. ns. PR if used proper properly ly can have an impact impact 10 times higher than Advertising. And at times, especially during crisis advertising doesn‟t work but only PR works. It is not a part time job for a Marketing Services Manager. If it is to work and serve the larger objective, the PR department shou should ld be inde indepe pend nden ent, t, serv servic icin ing g othe others rs like like pro rod ducti uction on,, personnel, marketing, finance, corporate agendas. Therefore, the the PR He Head ad shou should ld be par artt of the top top ma mana nage geme ment nt team team reporting directly to the CEO. He also needs to share everyone's confidences.
PR RESCUES CADBURY
The PR department of Cadbury’s played a very effective role in managing the reputation and keeping up the goodwill of the company. Afte Afterr bein being g stru struck ck with with the the Wo Worm rm Co Cont ntro rove vers rsy y it was was not not poss possib ible le to crea create te a very very goo ood d impa impact ct on co cons nsum umer erss who who trusted the company the most. But through the efforts and a 72
good PR team Cadbury’s managed to wriggle itself out of the controversy with a clean chit.
STEPS TAKEN TO SOLVE THE CONTROVERSY 1. NOT DENYING THE FACT
It helped that the Maharashtra Food and Drug Administration had given a clean chit to the company's two plants in the state. Cadbury went into overdrive to tell consumers that improper storage of what is essentially a perishable commodity might lead to worm infestation. That last November Bharat Puri, Cadbury's mild-mannered MD, went to media offices around the country meeting reporters, answering mostly hostile queries and patiently explaining the company's stand on the issue. "Unlike the cola companies which were caught in a controversy just just a mo month nth ear earlie lierr and displa displayed yed an ostrich ostrich-li -like ke attitud attitude, e, Cadbury did not go into denial mode. It accepted that there was a problem, which may not have been of its own making, and made a commitment to the consumer that it would plug all possi ossib ble safe safety ty lo loop opho holles," es," says ays a Mumb umbai ai-b -bas ased ed brand and consultant. As a result Cadbury improved the packaging and paid more atte attent ntio ion n to the the way way its its choc chocol olat ates es were were stor stored ed by near nearly ly 6,50,000 retailers across the country. 2. TAKING PRECAUTIONS
'Pro 'Proje ject ct Vis Vishwas hwas'' - “Ste “Steps ps to ensu ensure re qual qualit ity y & re rega gain in the the confidence” Follow Following ing the contro controver versy sy over over infest infestati ation on in its its chocola chocolates tes,, Cadbury India Ltd unveiled 'Project Vishwas', a plan involving 73
dist distri ribu buti tion on and re reta tail il channe channels ls to ensu ensure re the the qual qualit ity y of its its products. The The Vish Vishwa wass prog progra ramm mme e was was inte intend nded ed to buil build d awar awarene eness ss amon am ong g re reta tail iler erss on stor storag age e re requ quir irem emen ents ts for for choc chocol olat ates es,, provid ovide e ass assist istance ance in imp impro rovi ving ng stor stora age co cond ndit itiions ons and and stre streng ngth then en pack packag agin ing g of the the co comp mpan any' y'ss ra rang nge e of prod product ucts. s. Cadbury reduced the number of chocolates in its bulk packets to 22 bars from from the present present 60 bars. bars. These These helped helped stockist stockistss disp ispla lay y and and sel elll the the pro rodu duct ctss "safe safely ly and and hyg hygie ieni nica call lly" y".. 1,90 1,90,0 ,000 00 re reta tail iler erss in key key state tatess were were co cove vere red d unde underr this this awareness programme. "What you see now is the most over-engineered packaging for a Dairy Milk chocolate anywhere in the world. Even our festival packs come with a tamper-proof outer sealing and improved packaging inside," explains Purohit. The new double packaging even for the smallest offering, the 13 gm Rs 5 Ca Cadb dbur ury y Dair Dairy y Mil Milk, had had the the bar bar wrap wrapp ped in aluminium foil and enclosed in a polyflow pack, which was sealed on all sides. The The la larg rger er Ca Cadb dbur ury y Dair Dairy y Milk Milk pack packss ca came me in poly poly-c -coa oate ted d aluminium foil, which was heat-sealed and then wrapped in the bran brande ded d oute outerr pack packag age. e. Both Both thes these e init initia iati tive vess ar are e co coun untr try y spec specif ific ic and and Ca Cadb dbur ury y inve invest sted ed near nearly ly Rs 25 cror crore e (Rs (Rs 250 250 million) this year on new machinery for the improved packaging. The company's team of quality control managers, along with around 300 sales staff, checked over 50,000 retail outlets in Maha ahara rash shttra and and re rep pla lace ced d all ques questi tion onab ablle stoc stock ks with ith immediate effect. The company also carried out quality checks at its facilities as well as its carrying and forwarding warehou warehouses ses and distr distribu ibutor tor warehou warehouses ses and found found produ products cts free of infestation. 74
3. GAINING BACK TRUST
The Big B promoted the Big C in the chocolate business Cadbury in India. Indian cine superstar Amitabh Bachchan has signed on to become the brand ambassador of the chocolate major for two years. The Big „B‟ FACTOR
The The big factor factor that has pushed pushed up CDM sales sales is the Amita Amitabh bh Bachchan campaign. It helped restore consumers' faith in the qual qualit ity y of the prod product uct.. In early early Janua January ry that that year, year, Ca Cadb dbur ury y appointed Amitabh Bachchan as its brand ambassador for a period of two years. The company believed that the reputation he has built up over the last three decades complements their own, which was built over a period of 50 years. AB played a pivotal role in all communication relating to Cadbury's products and brands, brands, be it in print, print, on television television or the great outdoor outdoors, s, the company's managing director Bharat Puri has been quoted as saying in media reports. With the With the help help of its its Publ Public ic Re Rela lati tions ons Dept Dept.. and and adve advert rtis isin ing g agen agency cy O&M, O&M, it crea create ted d a ca camp mpai aign gn whic which h aime aimed d for for both both rational and emotional appeal. One One of the the ads ads showe howed d Bach Bachha han n visi visiti ting ng a Ca Cadb dbur ury y plan plant, t, inspecting the systems and processes and finally consuming a bar of chocolate to be convinced that there's nothing wrong with the brand. "Mujhe aapse aapse Addres Addressin sing g his audience audience,, Mr. Bachcha Bachchan n says, says, "Mujhe kuch kehna kehna hai, jis kaam mein mein manushya manushya ki antar aatma aatma uske saath na ho, uss kaam ko karne se usse sab kuch mil sakta hai... man ki shaanti nahin mil sakti. Isliye jab Cadbury walon ne mujhe mujhe kaha kaha ki unki unki baat baat main main aap tak pahunc pahuncha haoo oon, n, to 75
pachpan saalon se Cadbury khaane wala main bhi thoda sa hitchki hitchkicha chaya. ya.... ... ... ...Mai Maine ne unse ek sawaal poocha poocha,, ki kya iske baad main chain ki neend so paoonga ya nahin, to jawaab mein voh mujhe apni factory le gaye."
Walking into the Cadbury factory, he takes a look at their comple complete te manufa manufactu cturin ring g proces processs and continu continues, es, "Aur "Aur mujhe mujhe apni international technology.... apne kade quality controls aur doub double le prot protect ectio ion. n... .. ...p ...pack ackag agin ing g dikh dikhay ayi. i."" Sayi Saying ng which which he takes akes a bite ite of the choc chocol olat ate. e. Fina Finall lly y givi iving his pers person onal al assurance and approval he says, "Aaj kal mein badi chain ki neend so raha hoon." "Ab aapki favourite Cadbury Dairy Milk naye purity seal pack mein."
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Future Strategy
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 changin changing g attit attitude ude,, higher higher dispo disposab sable le income income,, a large large youth 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’. 77
Various measures are undertaken in all areas of operation to create value for the future. New channel of marketing such as a s gifting and child connectivity and and lo low w end end val value for for money oney produc oductt for for expa expand ndiing the consumer base have been identified. In terms of manufacturing management focus is on optimizing manufa ufacturing efficienci ncies and and crea eatting a world cla class manu ma nufa fact ctur urin ing g lo loca cati tion on for for CDM CDM (Cad (Cadbu bury ry Dair Dairy y Milk Milk)) and and Éclairs. The company is today the second best manufacturing location of Cadbury’s Schweppes in the world.
Efficient sourcing of key raw material i.e. coca through forward purchase of imports, higher local consumption by entering long term contract with farmer and undertaking efforts in expanding local coca area development. The initiatives in the terms of development a long term domestic coca a sourcing base would field maximum gains when commodity prices start moving up.
• Use of it to improve logistic and distribution competitiveness. competitiveness. • Utilizing mass media to create and maintain brands.
• Expand the consumer base. The company c ompany 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 targeted, the company has been able to increase the wid width of its co cons nsum umer er base ase thro throu ugh la laun unch ch of low pri price ced d products.
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• Improving distribution quality by addressing issues of product stability by installation of visit coolers at several outlets. This woul would d be re rea ally lly effe effect ctiv ive e in ma maiintai ntaini ning ng co cons nsum ump ption tion in summer, when sales usually dip due to the fact that the heat effects product quality and thereby consumption.
• The above are some steps being taken internally to improve futu future re oper operat atiion and and pro rofi fittabi abilit lity. At the the sam same tim 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. The 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 small to threaten its own volumes or sales in fact, the company looks at the tree important as an opportunity, where it could opti optima mall lly y use use the the glob global al Cadbu Cadbury ry Schw Schwep eppe pess port portfo foli lio. o. The The 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 pre refe fere renc nce e thro throug ugh h imp impor ortts. The The only only co conc ncer erns ns that that the company has in this regard is the current high level of duties, which limit the opportunity to launch value va lue for money products.
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CORPORATE CORPORATE SOCIAL SOCIAL RESPONSIBILITY RESPONSIBILIT Y Cadbury Schweppes approach to corporate social responsibility (CSR) stems from its founders philosophy of fair treatment of employees and philanthropy in the community. Cadburys started life in beverages, as a tea and coffee business prom promot otin ing g tea tea and and co coco coa a as an al alte tern rnat ativ ive e to al alco coho holl for for workers. When the Cadbury family established the Bourneville factory in 1879, they believed that profitable business required healthy communities. The family had a Quaker background and social benefit was a value they upheld. “Today our CSR is still about this – promoting prosperous, sustainable, educated and inclusive communities because they are good for business,” said Neil Makin, External Affairs Director. In 2001 2001 the the co comp mpany any deve develo lope ped d a five five-y -yea earr prog progra ramm mme e to review, re-articulate, update and embed its CSR commitments within the company. The programme is based on five areas: human rights and employment standards; ethical sourcing and procurement; marketing, food and consumer issues; environment, health and safety; and community investment.
The company’s approach to adding value to the community centres around three approaches: Money Money – prov provid idin ing g speci specifi ficc co contr ntrib ibut utio ions ns,, for exam exampl ple e sponsorship of community-focused events or activities; •
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Time and skills - making a greater contribution to the comm co mmun unit ity y thro throug ugh h its its peop people le,, for for exam exampl ple e by usin using g company skills for community organisations; and Gifts-in-kind – for example donation of materials, products, promotional materials, equipment and furniture.
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