cadbury silk_geetanjali gulati_pgp30136
TRANSCRIPT
Brand Extension Assignment: Cadbury Silk
Submi&ed By: Geetanjali Gula3
pgp30136 IIM Lucknow
Company: Mondelez
Parent Brand: Dairy Milk
Line Extension: STP
Sta<s<cs
Brand Extension Review
Line Extension: 4 Ps
$ 35 Billion in Revenue
Brands marketed in 165 countries
Nine Billion Dollar Brands
11,000 Employees Worldwide
Traded on Nasdaq
Chocolate
27%
Cheese and
Grocery 9%
Beverages 17%
Gum and Candy 15%
Biscuits 32%
Product PorTolio
Manufacturer
Parent Brand
1948 Incorporated on 19th July, as Cadbury-‐Fry
1964 The Company undertook development of cocoa growing in the country
1984 The company launched its dairy milk chocolate
1995 Launched Perk
1997 Launched Bournvita
1977 The name of the Company was changed from Cadbury-‐Fry (India) Pvt. Ltd., to Cadbury India Pvt. Ltd.
2003 Worm Controversy 2004: Amitabh Bachchan as brand ambassador
1967 Cadbury introduced the `Five Star and Gems' chocolates in 1967 and 1968 respec<vely.
2010 Launched Cadbury Dairy Milk
Silk
Market Size: Confectionery
Market size, 2015: $ 3577.4mn Growth Rate ~ 10-‐11%
Market Share
Market share, 2015: 30.4% Growth Rate ~ approximately same market share
Launched in 2010 in the premium category, Priced at 10 times that of CDM
Like silk to touch and feel
market share of 7.5% of the total chocolate market and 52% of the total premium market
Variants: Roast Almond, Fruit and Nut, Orange Peel, Caramelleto
Brand Extension
STP of Cadbury Silk
Segmentation and Targeting
Geographical Urban Rural
Demographic Income, SEC Age, Family Size, Occupa<on
Behavioral Personality Traits Lifestyle
Psychographic User Status, Usage Rate, Loyalty, Occasion
• Urban • Middle class • 16-‐30 Males,
Females • Couples • Everyday occasions • Special occasions
like Valen3nes
Competitive Frame of References
Chocolates: • Domes<c players
like Amul, Nestle • Foreign Players
like Ferrero and Lindt
Other sweets: • Meethai • Packaged
goods like biscuits-‐Oreo, Dark Fantasy
As Gieing Op<ons: • Tradi<onal
Meethai • Celebratory
packages like Ferrero
• Other gieing op<ons
POPs and PODs
POPs • Sweet Chocolaty Taste • Good Quality • Variants like fruit and
nuts • Special occasion packs PODs • Texture-‐silkier,
smoother, creamier • Emo<onal connect-‐
legacy • Category leader-‐trust • For all ages • Premium chocolate
experience
Positioning
Rich, Silky, Smooth Texture; Chunkier
Sweet Romance
Pleasurable experience of enjoying Silk-‐Messy way
Makes you forget everything around you
4 Ps of Cadbury Silk
Brand Extension-Product
Silk is shown as a craving for something sweet that a person might experience at normal situa<ons.
The texture is smooth, silky and creamy and is a lijle gooey at room temperature.
More about the experience of enjoying a child like pleasure in ea<ng a chocolate
The packaging is the flagship purple-‐that is used for CDM too. It has Silk wrijen on top of it in golden cursive
The SKU size is 60 gm and 150 gm. The product is thicker than a normal CDM
The brand is aptly named as Cadbury Dairy Milk Silk-‐umbrella brand to ride the established success of CDM and Silk because the chocolate is silkier and smoother.
Brand Extension-Price
Launched as premium category with 11 <mes price of CDM: 99 for a 169 gm pack.
Targeted at urban consumers to give them luxury chocolate experience
Compe<tors like Fererro are priced between 200-‐300 and 100 gm. bar of Lindt, between Rs 195 and Rs 255
Consumers are willing to pay a high price because Silk has base quali<es of taste like CDM but is smoother, richer and silkier in texture.
Brand Extension-Place
Cadbury’s distribu<on network has more than 700,000 stores and added 5,000 sub-‐stockists
Silk, though priced in the premium category makes use of the same network
Since the IMC points at people enjoying silk in everyday situa<ons availability <ll closest point to customer is required.
Available at kirana stores, convenience stores and super/hyper markets to benefit from impulse purchases.
Cadbury’s strategy throughout has been in selling like chocolates like soe drinks.
Available in urban ci<es and Tier 1 and 2 ci<es as priced at a premium, rural areas don’t have WTP.
Brand Extension-Promotion
2010 2010 2010 2012
2013 2014 2015
TVC-Across the Years
• Sweet Romance-‐except the dance troupe ad • Adults enjoying Silk unabashedly in a messy way, forgepng everything around
them • Shows all the characters enjoying the Rich, Creamy and Smooth Silk • Have you felt the silk lately? #Silk Effect • Kiss me Song as background
Print Campaign • A ribbon that could be made into
a flower and gieed along with a pack of Silk was delivered on February 14 to HT Mumbai and Delhi readers, via the front page jacket. Consumers had to only pull it out, wrap it around their Cadbury Silk packs and #SayitwithSilk to their loved ones.
• Made Silk the best op<on in the
gieing category. • On Valen<ne's Day, CDM Silk
came with a special Limited Edi<on Pack -‐ a collec<ble Silk box with a Silk pack inside, along with a #SayitWithSilk bookmark.
Digital Campaign
4,553,272 Likes
TVC Videos
Regular Updates
User Engagement
Promotion Analysis
Target Audience: Mostly young couple. SDM Silk is about sweet romance
Focus on the silky, creamy and rich taste. Adults enjoying Silk unabashedly in a
messy way. Tend to forget everything around them.
Background Score: Kiss Me Song. Align with
the characters enjoying Silk in a silky,
messy way.
Special Occasions like Valen<nes had a special campaign #SayItWithSilk,
posi<oning Silk as the best gie for Valen<nes. Used all channels and special packaging.
References
• About Mondelez, Company Informa<on: Annual Report 2014 • Percentage of product category :
hjp://in.mondelezinterna<onal.com/home • Product PorTolio: hjp://in.mondelezinterna<onal.com/home • About Cadbury • hjp://www.moneycontrol.com/company-‐facts/cadburyindia/
history/CI • Market Size: Euromonitor • Image Source:
hjp://www.borivaliflowers.com/cadbury-‐silk-‐chocolate-‐mumbai • Image Source: afaqs.com