Advertising Project

on
CADBURY

Submitted By –

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Cadbury- The Introduction

For many people chocolate means Cadbury, and no other brand

will do. This consumer loyalty is critical. Chocolate is considered an
impulse product and thus, the task before the company has been to
break this mould and make chocolate consumption a more regular
habit. Industry analysts said that the long-term growth and
sustainability in chocolate confectionery will come if chocolate as a
category grows with increased adult consumption. Cadbury brand
equity is highly differentiated from other brands with consumers.
Brand equity is the value consumer loyalty brings to a brand, and
reflects the likelihood that a consumer will repeat purchase. This is a
major source of competitive advantage. The Cadbury umbrella brand
has endured in a highly competitive market, and has established the
link, in the mind of the consumer, that Cadbury equals chocolate.
The Cadbury umbrella brand image consists of four icons namely
the Cadbury script, the glass and a half, dark purple and the swirling
chocolate image. These elements create a visual identity for Cadbury
that communicates the ultimate in chocolate pleasure. Consumer
research is conducted regularly so managers can learn more about
how the market perceives the brand. This research has confirmed that
the swirling chocolate and ‘glass and a half’ are powerful images. Both
clearly portray a desire for chocolate while the half full glass suggests
core values of goodness and quality

Cadbury- The Story

Fifty years ago, the real taste of chocolate as we know

it today, landed on Indian shores. An event that carried
forward the entrepreneurship and vision born as far
back as 1824, when John Cadbury set up shop in
Birmingham (UK) to sell among other things - his own

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cocoa concoction. From these modest beginnings emerged Cadbury
Schweppes - that is today the leading manufacturer of confectionery
and beverages in the United Kingdom. A company that has its
presence in over 200 countries worldwide and has made the name
'Cadbury' synonymous with cocoa products in countries across the
planet.

This is the brand that came to India in 1947 - to a nation that was in its
infancy, a market that was ready for the world and a people that were
open to new ideas, new products.

Within a year of being set up as a trading concern, Cadbury Fry India

was incorporated as a Private Limited company, set up for processing
imported chocolates and Bournvita. The same year saw the launch of
Cadbury's Milk Chocolate - a brand which till today defines the taste of
chocolate for millions of Indians.

Through 50 years of investment in capital and marketing, the scale

and scope of the operations has expanded to cover a range of brands
in the chocolate, sugar confectionery and malted food drinks
segments. Cadburys has a majority share in the Indian chocolate
market and a significant presence in sugar confectionery and food
drinks.

Today Cadbury India Ltd., a subsidiary of Cadbury Schweppes employs

over 2000 people across the country. And operates in one of the
fastest growing chocolate markets for the Cadbury Schweppes group
across the globe.

Cadbury- The Vision

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The governing objective for Cadbury India is to deliver :

Cadbury in every pocket

When Cadbury arrived in 1947, independent India was a nation in her
infancy. A market that was ready for the world. And a people were
open to new ideas, new products.

Today Cadbury dominates a daunting 70% of the market. Yet, the

urban penetration of chocolates among adult Indians is a mere 15% as
compared to 34% for soft drinks. And the per capita consumption
remains a minuscule 160g/yr. compared to 8.7kg/yr. in the UK. This
implies the need and opportunity for:

• Mass value for money brands

• Profitable enfranchisement of a large number of consumers,
including the rural
• Profitable explosive growth
• Strong consumer focus

The potential for continuous growth and expansion of the Indian

chocolate market is therefore truly immense. And Cadbury aims to
exploit this.

Cadbury believes this requires :

• Broadening the consumer appeal and extending their reach to

newer markets
• Sustained growth of the market share through aggressive
product development
• Striving for international quality in the products and processes
• Focusing on cost competitiveness and productivity in the
operations and innovative utilisation of the assets
• Investing to develop the people

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Cadbury- Brand Building

Since its inception, Cadbury India has stayed ahead thanks to its
constant marketing initiatives, that have at all points in time
understood the needs of and opportunities in a changing nation.

The '60s was a decade which saw the launch of brands that are etched
in the hearts of generations of Indians - Tiffins, Nut Butterscotch,
Caramels, Crackle, 5 Star and Gems. It was a strategy that introduced
consumers to a variety of tastes and product forms leading to a rapid
increase in chocolate consumption.

Cadbury's Eclairs was launched in 1972, and was an instant hit. It

continues to be one of the biggest brands in the Cadbury portfolio and
offers the lowest price point at which consumers can
experience the real taste of chocolate.

In the years that followed, Cadbury invested in

technology and made an impact through innovative
packaging. This decade experienced a continuous growth in volumes
as Cadbury launched a flurry of brands with different pack sizes, at
various price points. The now ubiquitous Sheet Metal Dispenser seen
on cash counters of thousands of shops dispensing chocolates, was an
innovation that helped brand the colour purple in the minds of the
Indian consumer.

In the 90's Cadbury realised both the scope and the need to expand
the market. Hitherto perceived only as a children's product, Cadbury
'universalised' the chocolate market. The multi-award winning
advertising campaign - 'The Real Taste of Life' - was launched,
capturing the childlike spontaneity in every adult.

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Cadbury 5 Star with its 'Reach for the Stars' campaign targeted the
youth, offering them a mind and body charge. While pre-empting
competition, Cadbury Perk - the light chocolate snack - pushed
chocolates into the wider area of snacking by promising 'Thodi Si Pet
Pooja' anytime, anywhere.

With the launch of Trebor Googly, the tangy, fizzy candy, Cadbury took
the market by surprise and marked the entry of Trebor into the fast
growing Indian sugar confectionery market. The extension of Googly to
a Mint flavour reinforces Cadbury's commitment to establish the Trebor
name as a strong player in the value added sugar confectionery
market.

For 50 years, Cadbury's has successfully played the role of market

leader and market maker by building brands that have a large base of
loyal consumers. The last few years especially, have seen the company
invest heavily in the entire value chain to successfully combat
competition and continually move the market to the next stage of
evolution.

Cadbury- Production

Cadbury India's first manufacturing facility was set up at Thane

(Mumbai) in 1966. Today, the factory has grown manifold and
manufactures a range of products that include Cadbury Dairy Milk, 5
Star, Nutties, Gems and Bournvita. The factory employs about 750
people and houses the R&D and engineering development facilities of
the company.

In a move towards backward integration, Cadbury bought Induri Diary

farm in Pune in 1964. Recently, a major investment program resulted
in the installation of modern moulding, crumb and chocolate making

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facilities. Today, the Induri Factory manufactures intermediate
products like milk crumb and a range of finished chocolates.

In 1989, they began operations in the newest and most modern plant
at Malanpur. Equipped with state-of-the-art technology and backed by
constant investment, this unit manufactures Eclairs, Gems, Perk and
Picnic

Cadbury-Trade Marketing

The Cadbury Sales and Distribution network directly services over 3.5
Lakh dealers across the country, once a week. Confectionery purchase
being impulse led, demands eye catching, on-the-cash-counter
visibility in as many of these outlets as possible.

In order to best meet the dealer's display and vending needs, they
have invested in an array of inputs to the trade :

The Sheet Metal Dispenser : This ubiquitous, purple salesperson for

Cadbury is found in almost any shop stocking the chocolates. While
being on the cash counter, it's unique design offers visibility, ease of
vending and protection from the elements. Available in various sizes, it
can meet the needs of any outlet. This 'first' from Cadbury, has
become so popular, today it is the standard dispenser design for all
chocolate manufacturers.

Visicoolers : Come summer, visibility for chocolates

drop as they disappear into the refrigerator. In high
throughput outlets, the visicooler with a glass front
not only maintains eye contact with the consumer,
but offers perfect chocolates throughout summer as well.

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Vending machines : First introduced in the country by Cadbury, these
impressive coin operated machines can be seen dispensing chocolates
in high traffic areas from the World Trade Centre at
Mumbai to New Delhi railway station.

Jars : Outlets like the neighbourhood Paan shop

have just enough place for simple dispensers like jars. Attractive jars /
merchandising units in such shops ensure places of pride for Cadbury.

Star Outlets : Key Cadbury outlets across the country are given a
special status, with discounts given in lieu of solus vending and display
space for all Cadbury products.

Amusement Parks : Cadbury's presence in the premier amusement

parks such as Esselworld and Appu Ghar adds to the magic of
chocolates by 'coming alive' for the consumer.

Cadbury- Business

Cadbury dominates the Indian chocolate market with a 65% market

share. Besides, it has a 4% market share in the organized sugar
confectionery market and a 15% market share in milk/ malted foods
segment.

Changing product mix

Contribution to turnover Contribution to turnover

1994 2001
Chocolate 59% 65%
Sugar Confectionery 9% 10%
Food Drinks 32% 24%

Chocolates and confectionery products (75% of turnover)

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For more than five decades now, Cadbury has enjoyed leadership
position in the Indian chocolate market to the extent that 'Cadbury’
has become a generic name for chocolate products. Cadbury has
leading brands in all the segments viz bars (Dairy Milk, Crackle,
Temptations), count lines (5 star, Milk Treat), panned confectionery
(Gems) and wafer chocolates (Perk), eclairs (Cadburys' Eclairs), tofees
(English Toffee).

During 2001, Cadbury’s chocolate sales (65% turnover) registered a

9% value growth, aided primarily by growth in the flagship brand Dairy
Milk. Dairy Milk contributes an estimated 30% to Cadbury’s sales.
Gems and Five Star were relaunched during the year to stem their
degrowth. Perk registered a degrowth during 2001 despite launch of
new variants. New brand initiatives included the launch of Temptations
in the premium segment and Chocki a low priced chocolate
confectionery targeted at children.

Cadbury entered the hard-boiled sugar confectionery market with the

launch of Googly in 1996. In 1997, the company launched a coffee
based sugar confectionery product Mocka. Cadbury has a 4% market
share in the confectionery segment, largely contributed by Eclairs.
Other confectionery brands such as Gollum, Frutus, Nice Cream, etc
launched in the last two years did not receive a good market response
and the company has decided to minimize focus on those brands.
Eclairs was relaunched with unique packaging in cartons during 2001.

Food drinks (25% of turnover)

Cadbury’s Bournvita is the leading brand in the brown drinks segment

of milk/ malted food products. Overall share in the malted food drinks
market is estimated at 15%. Brown drinks earlier positioned as taste
enhancers were losing market to white drinks during the last few

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years. Cadbury relaunched Bournvita with a new formulation and
advertising campaign positioning it on the health benefit platform to
compete with white drinks. The brand was relaunched in the South –
the largest food drink market in the country, during 2001. Bournvita
sales registered a 12% growth in value terms in 2001 contributing 24%
to total turnover.

Cadbury’s other products include Cadbury’s Drinking Chocolate and

Cadbury’s Cocoa powder. These account for only 1% of Cadbury’s
turnover.

Cadbury-Distribution

Cadbury's distribution network encompasses 2100 distributors and

450,000 retailers. The company has a total consumer base of over
65mn. Besides use of IT to improve distribution logistics, Cadbury is
also attempting to improve distribution quality. To address the issues
of product stability, it has installed Visi coolers at several outlets. This
helps in maintaining consumption in summer, when sales usually dip
due to the fact that the heat affects product quality and thereby
offtake.

Cadbury- Strategy

Increasing the consumer base by focusing on the twin proposition of

affordability and availability is being followed to drive future growth.
Small affordable priced packs have been launched, which have helped
improve penetration. Also advertising for chocolates is aimed at
changing consumer perception and eating habits by creating new
reasons for consumption.

Cadbury-Financial analysis

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Cadbury India Ltd has posted a net profit of Rs 190 million for the
quarter ended 16 June 2002 as compared to Rs 93.60 million for the
quarter ended 17 June 2001.

The total income has increased from Rs 1,206.80 million for JQ01 to Rs
1,363.40 million for JQ02. The other income for the current quarter is
at Rs 127.70 million (corresponding quarter last fiscal: Rs 21.90
million) out of which Rs 107.70 million is on account of the profit on
sale of excess immovable property at Thane, Maharashtra.

Cadbury had sold the land near its factory at Thane for Rs 11 crore
early this year. The company says it has struck an agreement with
Kalpataru Properties, Thane, for selling the land, which measured
about 27,520 square metres. The deal helped Cadbury unlock the
value of its investments and helped it to shore up its bottomline.

Recently Cadbury India also refurbished its old office block in Mumbai
and is now planning to lease out the extra space available after the
renovation, with a view of earning some funds. Cadbury India has three
factories, which it operates on its own, while three other facilities are
run through arrangements with third parties.

To overcome the negative impact of sluggishness in the fast-moving

consumer goods market on its performance, the company undertook
cost-cutting exercises over the past one year, say analysts. As a future
strategy, it plans to reduce manufacturing and supply-chain costs.
During the past few months, Cadbury India had offered a voluntary
retirement scheme to 29 employees in order to bring down costs.

Cadbury Schweppes recently took Cadburys India, off Indian bourses

and has made it a wholly owned subsidiary of the parent company,

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Cadbury Schweppes. Cadbury’s was delisted at the closing of the
Stock Exchange on the 22nd of February 2002.

Cadbury Brands- Not Visible in India

The Cadbury brand has a profound impact on individual product
brands. Brands have individual personalities aimed at specific target
markets for specific needs e.g. TimeOut, for example, is an ideal
snack to have with a cup of tea. A Flake,
Crunchie or TimeOut are clearly different and
are manufactured to appeal to a variety of
consumer segments. Crunchie has a more
distant relationship, as the consumer
motivation to purchase is ingredients other
than chocolate. However although all these
brands are relished abroad they hardly have an existence in India. Not
only are they are not kept in retail shops, people have hardly heard
about them.

Cadbury- Advertising

Cadbury provides one of the most successful examples of how an

advertising message can be modified from one campaign to the next
to attribute new values to a brand giving consumers more reasons to
buy Cadburys. Healthy brand equity or brand strength is critical in an
impulse-driven, competitive market. Advertising plays a key role in
maintaining this strength. Cadbury employs all types of advertising
from the internet to posters, from TV, radio and cinema to print media.
This same creative message is then communicated through point of
sale, merchandising, package design and public relations.

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The ‘glass and a half ’, corporate purple and flowing script has become
synonymous with Cadbury: these design elements have been used to
great effect in developing the connotation of goodness that this
imagery suggests. In the 1980s another vital attribute - taste - was
highlighted. Regardless of national preferences about how
chocolate should taste (e.g. dark chocolate is traditionally
more popular in Europe whereas Australians prefer creamier
milk chocolate) the implication was clear - Cadbury offers
taste and texture that appeals to all. In the 1990s further
emphasis was placed on ‘taste’. The strapline ‘Chocolate is
Cadbury’, which was built upon previous brand values and
allowed Cadbury to stake its claim and taking ownership of the word
‘chocolate’ and the chocolate eating experience.

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Cadbury – A SWOT Analysis
Strenghts

The ‘Cadbury’s
Cadbury’s’ Name
Cadbury’s is an established name in the Indian Market. Have been
present for more than half a century, Cadbury’s has embedded itself in
the minds of Indian Consumers.

Rich Product Mix

Cadbury’s has a large variety of products
in the market, specifically in the chocolate
field, like Dairy Milk, 5star, Fruit and Nut,
Roasted Almond, Eclairs, Gems, Choki and
also in the malted drinks segment –
Bournvita. The Cadbury product range addresses the needs of each
and every consumer, from childhood to maturity, from impulse
purchase to family treats.

The Choose Cadbury Campaign

In UK, Cadbury introduced a new global marketing strategy called
‘Choose Cadbury’. This strategy came about as a result of extensive
research into consumer behaviour and perception. It is a campaign
that perfectly illustrates how a brand can evolve and how different
messages can be communicated without losing the core strength and
brand values that are already established.

Cadbury- Institutional Buyers

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Cadbury India supplies cocoa, drinking and covering chocolate in bulk
to Biscuit and Malted Drinks manufacturers across the country. These
high quality chocolate ingredients are also sold to Bakeries, Hotels and
other institutions.

Weaknesses

Dependent on Single Category

Cadbury’s depends largely on their sales in the chocolate market.
They hav3e not made much headway in the with their products like
Bournvita, Cadbury’s Drinking Chocolate or Cadbury’s Cocoa.

Instability in the Supply of Cocoa

A huge amount of the Cocoa used world wide is comes from The Ivory
Coast. Due to the domestic uncertainty and tensions, the supply of
cocoa world wide has been made vulnerable. A shrinkage in supply
inevitably implies a price rise, which would force Cadbury’s to either
cut sacrifice profits or raise process.
Cadbury’s has been shielded from this crisis to a certain extent
because of their foresight in promoting domestic production of cocoa
beans.

Unable to Achieve targets

The Cadbury management has been unable to achieve the volume
growth targets set during the last two years. The company remains
dependent on a single category – Chocolates to drive growth. Sugar
confectionery ventures have not yielded desired results. In the malted
food drinks category too, Bournvita market share has remained
stagnant at 14-15% in the last few years, despite the company’s
efforts and investments in repositioning the brand.

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Opportunities

Huge Indian Market

The Indian Market for Chocolate is far from mature, and thus offers a
plethora of opportunities to all chocolate manufacturers. Since
Cadbury’s is already a known name in India, it will have and edge over
it’s competitors in tapping this market. Cadbury’s also has brands that
are relatively unknown in the Indian market.

Diversification

Cadbury’s can follow the example of brands like Nestle which has
products in competition with all of Cadbury’s and also several others,
like Breakfast Cereals and Baby Food.

Tie – Ups

Cadbury can tie up with companies like those in the airline industry.
Since Cadbury’s is an established Brand World Wide, it would be
beneficial to them to promote their products on airplanes.

Targeting the Take Home Segment

The transactions are divided into the categories of ‘Impulse’ and ‘Take
Home and Gift’. The second represents the more calculated and
rational purchases, most often driven by a specific need. Advertising
can be focused on this segment which may yield better results. This
can increase chocolate consumption among individuals and
households.

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New Products Reflecting Consumer Lifestyles

New product development has played a key role in developing markets

as brands strive to offer something to a consumer that is truly
different. We take a crumbly flake texture or honeycomb for granted
but, when introduced, they were remarkably innovative. Changing
lifestyle patterns; eating on the go, and impulse snacking has and
continues to play a pivotal role in the confectionery market. Cadbury
can promote is brands like Wispa and Double Decker which lack
presence in the Indian Market.

Threats

Competitors

Nestle is one of the strongest competitors. The increasing imports of

brands like Hershey’s and Lindtt also threaten the current market
leader’s position. The local and Unorganised also constantly compete
in the market. Cadbury has been losing market share, but continues to
dominate the chocolate market with about 65% market share. Nestle
has emerged as a significant competitor with about 24% market share.
Other national players in segment include co-operative owned Amul
and Campco, besides a host of unorganized sector players. The sugar
confectionery segment is largely dominated by the unorganized
players. Leading national players in this category include Nutrine,
Parry's, Ravalgaon, Candico, Parle’s, Joyco India and Perfetti. The
MNC’s such as Joyco and Perfetti have aggressively expanded their
presence in the country in the last few years.

Fluctuations in Value of Foreign Transactions

Variations in the value of the Rupee, may cause Cadbury’s losses,

since they import certain ingredients.

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We belive that by adopting the recommended Opportunities, Cadbury
can grow and thus face it’s competition better. When they can achieve
the targets they set for themselves, and will thus have the strength to
push forward their Brands in other segments, as well as new variants
in the same market.
Cadbury will be able to eliminate the threats caused by
importing, only when Indeginous Production of Cocoa is sufficiently
large to fulfil the need.

1) Target Audience -
It is not restricted to any age category. Cadbury is known for all
as chocolate or a snack. The advertisement says the same thing. The
message is very clear and no need to change in that perspective. It is
targeting most of the masses as well as classes.

2) Current Belief –

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 After the worm disaster and Cadbury’s make over, people
believe that best of the precautions are taken into account. By the
image of Amitabh Bachhan who is most trusted person in the country
and media. He is like a God of the industry who is saying that Cadbury
is safe so people are now convinced.
3) Current Do –
Cadbury should penetrate through the rural area. There is so
much potential consumer available which can be explored with cost
effective product.
4) Proposition –
Cadbury carries the value of anytime usage which can be
celebrated on various occasions. It’s like a all time eating
5) Desired Belief –
Cadbury wants to expand the consumer base mostly in the urban
area through brand building and value proposition.

Story Boards –

Shot of a guy relaxing on a bench... A man in a bus, smiling away for no

upside down! Soon a jingle begins apparent reason as the jingle goes,
which captures the essence of the hamakha muskuraoon, khamakha gungunaoon...
series of images

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...khamakha chalta jaon main." A taxi driver can't help smiling at his
while a schoolboy in a playful cheerful and grinning passenger. The score
mood attempts some continues," Khamakha machalta hun khamakha...,
balancing acts

...phisalta hoon, khamakha uchalta hun In the next shot a guy sings merrily,
main" even as a young executive enjoying the attention of a dog, as
happily humming away irritates the the jingle continues, "Main khush hoon
shoe shiner with his foot tapping. aaj khamakha, main khush hoon...

...aaj khamakha, main kush hoon ...changes place to receive it

aaj khamakha yaaron" as a young again. MVO: "Nayi nayi

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woman offers her Dairy Milk to khushiyan,naye naye
an imaginary friend and... swad, aur kayi nayi Cadbury Dairy Milk

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