cadbury dairy milk group 12
Post on 19-Jan-2015
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Agenda
o Cadbury-company overviewDairy milk-brand overview
o Frameworks appliedo Consumer behavior for
Chocolates buyingo STP & Brandingo Chocolates – Product &
Pricingo Recommendations
2Group No-12 Section-G
Company and brand overviewo British confectionery co.
founded in 1824o Second largest after Marso Began operations in 1948 in
Indiao Dairy Milk-flagship brand
started in 1905o Contributes 10% of total sales
by volume globallyo 70% market share in India by
Cadburyo 30% contributed by Dairy milk
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CadburyNestleAmul and others
16%
20%
20%
23%
21%
Parameters for going for a particular Brand
TASTE PRICE BRAND
ADVERTISEMENT PACKAGING
Chocolate Industry Analysis
4
Chocolate Market Analysisusing Porter’s Framework
RivalryRivalry between top two brands Cadbury and
Nestle but market leader is
Cadbury
Threat from new entrants
Low as Large capital requirement, existence of economy of scale,
differences in products, access to distribution channels and existing
regulations
Buyer bargaining power
Moderate as number of large volume buyers and buyers’ relatively
low profits from the product & presence of
switching costs
Threat from substitutes
High risk of substitutes from other chocolate and non chocolate
snacks like candies, sweets, cookies, ice
creams etc.
Supplier bargaining power
moderate to high as concentrated suppliers (cocoa beans) and no substitutes of inputs
present
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SWOT Analysis for Cadbury
• Brand Name• Market share of over 70 % • Financial strength • Pioneer in research of Cocoa Cultivation• Integrated campaigns• Quality and Value for money
S• Poor technology in India compared to current international technologies• Lower engagement with Rural populationW• Growing middle class and growing urban population.• Increasing gifts cultures• Substitute to “Mithais” with higher calories/cholesterol• Increasing departmental stores conceptO• Shift in Consumer buying behavior : Chocolates to Heavy Snacks• Threat from Imported chocolatesT
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Competition Analysiso Main competitors are Nestle
and Amulo Cadbury: Market leader &
Nestle: Market Challengero Cadbury and Nestle together
own 90% of market share
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Consumer Behavior
o Marketing Stimulio Campaigns -
Communicationo ‘Real Taste of Life’o ‘Khaane Walon ko
khaane ka Bahana Chhayie’
o ‘Kuch Meetha Ho Jaaye’
o ‘Pappu Pass Ho Gaya’o ‘Shubh Aarambh’o ‘Khaane Ke Baad
Meethe Mein Kuch Meetha Ho Jaaye’
20%
25%
19%
17%
20%
Punch line Preferences
SHUBH ARAMBH
KUCH MEETHA HO JAAYE
AAJ MEETHE MEIN KYA HAI
REAL TASTE OF LIFE
KHAANE WAALON KO KHANE KA BAHANA CHAHIYE
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o Consumer Psychologyo Motivation
o Maslow’s Hierarchy of Needs: Need for chocolates is social in India
o Others’ happiness, light snack, hunger, sweet craving are some of the motivations
o Perceptiono Perceived as sweet, warm & delightfulo Screening mostly through ‘selective attention’
o Learningo Taste largely determines whether consumer will repeat or not
o Memoryo Words associated with chocolates according to Associative
Network Memory Model: warmth, love, sweet, tasty, happiness, presents, birthdays
o Memory encoding attributed to taste & advertising
Consumer Behavior
9
Consumer Behavioro Buying Decision Process
o Relatively quicko Impulsive purchase depending
on availability and taste preference
o Easily switching among brandso Post Purchase Actions-largely
governed by consumer’s liking or disliking of taste
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Targetingo Full market coverage attemptso Differentiated marketing strategy
o Campaigns and products aimed at targeting different market segments
o For ex:o ‘Khane walon ko khane ka bahana chahiye’
o Target: widening chocolate consumptiono ‘Kuch meetha ho jaye’
o Target: to associate Cadbury with sweetso ‘Pappu pass ho gaya’
o Target: encourage to celebrate achievements with Dairy Milko ‘Aaj Pehli tarikh hai’
o Target: To celebrate pay day/salary day with Dairy Milk
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Positioning
For kids across India, the word ‘Cadbury’ is synonymous with chocolates
Dairy Milk positioned as ‘The perfect expression of love’
‘Kuch Meetha ho jaye’: The brand wants itself to be synonymous with sweets
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o Brand namingo Usage of ‘Cadbury’ on all confectionary
products in conjunction with product brands
o Brand elementso Catchy slogans and campaigns
o Branding decisionso Brand re-positioned itself to appeal to older
age-groupso Brand Line extension by introducing many
variants-plain, silk, fruit nuts, crackle, roasted almond, shots
15%
17%
18%16%
18%
16%
Preference of Variety
CADBURY DAIRY MILK (NORMAL)
CADBURY DAIRY MILK (SILK)
CADBURY DAIRY MILK (FRUIT & NUT)
CADBURY DAIRY MILK (ROAST ALMOND)
CADBURY DAIRY MILK (CRACKLE)
CADBURY DAIRY MILK (SHOTS)
Branding
13
Points of Parity• Similarity of products make
points of parity important for survival
Points of Differentiation• Value differentiation• Image differentiation
Branding Strategy
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o Packagingo Change in Packaging over years:
Product Analysis
15
Pricing Strategy
o Chocolate industry characterized by high volumes, huge expenses on advertising, low margins, and price sensitivity to some extent
o Products priced strategically to obtain near maximum market penetration
o Aimed at capturing all income groups: Offers standard as well as premium category chocolates
o Convenient prices: in multiples of 5/10
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RECOMMENDATIONS
Bring out new products for health conscious people (low calorie,sugar free, etc.)Continue to promote as substitute to mithaiSpecial packaging and variants for occasions and festivalsIntroduce new flavours within the product line (e.g.-strawberry,vanilla, etc.)Opening of its own chocolate outlet in major citiesAdopt new marketing strategy to harness rural segmentAdoption of e-commerce for bulk purchasers
17Group No-12 Section-G
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