Repositioning Strategies

Background

• Cadbury founded almost 200 years ago, is a British multinational confectionery company owned by Mondelēz International.

• Worldwide, Cadbury employs 60,000 people in over 200 countries.

• Cadbury India began its operations in 1948 by importing chocolates and then re-packing them before distribution in the Indian market.

Chocolate Industry in India

• Value : Rs. 10,000 crore in FY 2014.• CAGR of 15% over the last 3 years.• Estimated Value: Rs. 25,000 crore in FY 2019.• Growth drivers:a. Increasing disposable income b. Changing lifestyle c. Rising trend of gifting chocolates instead of traditional Indian sweets.d. Surge in the sale of Dark Chocolates.

Cadbury’s Market Share•Cadbury India has a market share of 56% and Dairy Milk is the most favoured chocolate in India with a 30% Market share

•Cadbury Dairy Milk was regarded as the “Gold standard”

56%

17%

5%

1%

1% 20%

Market Share in FY 2014

Cadbury IndiaNestle IndiaFerrero IndiaAmul IndiaMarsOthers

Statista.comEuromonitor International

articles.economictimes

The Worm Controversy

October 2003• “Festival of lights,” Diwali, was approaching• Fresh stocks of chocolate bars were being shipped out to

650,000 outlets across all of India• Worms reported in Cadbury Dairy Milk chocolate bars in

Mumbai• Media started their questioning• FDA seized chocolate stocks, sent them for sampling, and was

investigating Cadbury.

The Crisis Snowballs• The media continued

its onslaught • In 3 weeks, there were

close to 1,000 adverse newspaper articles and about 120 TV clips in ten languages.

• The infestation incident became the subject of SMS jokes and warnings, cartoons and TV tickers.

• The heat of negative publicity melted Cadbury’s sales by 30 per cent, at a time when it sees a festive spike of 15 per cent.

Figures post crisis

•For the year ended December 2003, its net profit fell 37% to Rs 45.6 crore as compared with a 21% increase in the previous year.

•The company saw its market share melt from 73% in October 2003 to 69.4% in January 2004. In May, however, it inched up to 71 per cent.

•CDM sales volume contribution declined from 68% in October to 64% in January 2004. It edged back to 65.9% in May 2004.

Source: http://www.business-standard.com/article/companies/cadbury-recovers-from-worm-shock-104070301003_1.html

Three key messages

• Infestation was a storage problem

• It was safe to eat Cadbury chocolates

• Exercise same care in purchasing a chocolate as buying any food item.

Internal Response

• Consumer first

• Truth always

• Dare greatly, act quickly

Consumers

• Loyalists• Fence-sitters• Pseudo-

rejectors • Rabid

rejectors

Response Of Cadbury

Packaging

• Cadbury introduced “purity-sealed” packaging in January 2004

• Three-layer packaging

Brand Ambassador

AMITABH BACHCHAN

Chosen because he embodied the values of Cadbury as a brand and connected with all of India: mothers, teenagers, children, media persons and business partners.

PROJECT VISHWAS (“PROJECT TRUST”)“Facts about Cadbury,” released in 55 publications in 11 languages

RETAIL MONITORING implementation of a retail monitoring and education program to address storage problems

Journey of Cadbury Dairy Milk

Chocolates in India

Chocolates were perceived as: Unhealthy Impure Unaffordable Only for Kids

Advent of Cadbury Dairy Milk

Then came a chocolate that altered the entire mind-set of the people and won hearts of souls and masses to the extent that now it alone holds 30.6% value share of the entire Indian chocolate market – ‘Cadbury Daily Milk’

Perceptual Mapping

Asli Swad Zindagi KaMessage Delivered: No particular situation or moment to enjoy with Cadbury Dairy milk.Target Group: For people of all ages, helps bringing out the child in them

Khane walon ko khane ka bahana chahiye

Message Delivered: There is no occasion for eating chocolates, every time is a Cadbury Time Target Group: Anyone and everyone, no reason is required for Cadbury Dairy Milk consumption

Aaj khush hoon main khwamakhaah

Message Delivered: Big achievements are not required for happiness but simple things in life can also bring a smile to people's facesTarget Group: No age limit as people all across different age groups are portrayed in the ad

Kuch meetha ho jaye

Message Delivered: Even small events in life deserve to be celebrated and a bar of Dairy Milk signifies loveTarget Group: All people who care for each other and like to celebrate the small events of life

Pappu Pass Ho Gaya

Message Delivered: Cadbury Dairy Milk associated itself with celebration and success even in the small things of life like a student passing in his / her examsTarget Group: People who like to celebrate success in life, this ad attracted a lot of attention from the students

Miss Palampur

Message Delivered: Chocolate is not only something people in the urban areas enjoy, people in the rural areas also enjoy celebrating successes with a chocolateTarget Group: Majorly the rural population, a 5 Rs. Bar of Dairy Milk was introduced post this ad

Aaj Pehli Tarikh Hai

Message Delivered: A thing as usual a Salary Day also deserves to be celebratedTarget Group: This ad focused primarily on service class people for whom this day is of immense importance

Shubh AarambhMessage Delivered: It is known that Indians are very superstitious and generally known to eat curd which is considered as a good way to start something new. Dairy Milk started to portray that anything new can be started with a Dairy Milk for an auspicious beginning. Target Group: All people who believe in good beginnings and luck

Survey Analysis

Total Respondents – 110

Age Group No. of Respondents18-25 8326-35 1436-45 446-60 9Total 110

Gender No. of Respondents

Male 65

Female 45

Total 110

• 29% of the respondents said Dairy Milk comes to their mind when they hear “Purple & White”

• 76% of the respondents said Cadbury Dairy Milk comes to their mind when they hear the word “Chocolate”

• 62% of the respondents said that their favorite chocolate is Dairy Milk

• 66% of the respondents said that they are a loyal customer of Cadbury Dairy Milk.

• 52 (47% of the respondents said that they love dark chocolate and 39 respondents said that they would love a Bournville over Dairy Milk.

• 73 (66% of the respondents knew that the brand Ambassador of Dairy Milk is Mr. Amitabh Bachchan.

63%19%

15%4%

Reasons for having a Dairy Milk

I can eat it anytime & anywhere

When I am happy and want to celebrate success

When I am hungry and want some dose of energy

When I am sad and want to divert my mind

3% 1%18%

78%

Perception about Chocolate

Chocolate makes you live longer

Chocolate makes you slim

Chocolates as an energy booster

Chocolates make you feel happy

21%

25%20%

12%

22%

Most liked variant of Cadbury Dairy Milk

Crackles

Fruit & Nut

I love the plain one!

Roast Almond

Silk

2%

77%

17%4%

Reasons for eating Cadbury Dairy Milk

I love the packagingI love the tasteIt is easily availableIt is not at all ex-pensive

21%

16%

35%

28%

Reasons for purchasing a Dairy Milk

As a Sweet DishAs a gift during fes-tivalsFor self-consumption as a snackTo give it as a gift to your friend/girl-friend/boyfriend/husband/wife

25%

45%

25%5%

Reasons that helped Cadbury build a good brand image?

Quality

Taste

Unique Adver-tisements

Well known Brand Ambassador

50%

17%

33%

Would you switch to a different chocolate if Cadbury raises the price of Dairy Milk by 100%? (Eg: From Rs.

10 to Rs. 20)?

Maybe

Never. I am in love with Dairy Milk

Yes. I am not that crazy for it.

46%

11%

4%

39%

How often in a month do you eat Dairy Milk After hearing “kuch

meetha ho jaye”?

2-5 times

5-10 times

More than 10 times

Never

Summary

• Cadbury today is synonyms with chocolate just like Maggi with noodles and Bisleri with mineral water.

• People love Dairy Milk for its taste and according to them, it’s the taste that has created the brand image of Cadbury Dairy Milk.

• Most of them recall the brand ambassador of CDM but don’t feel it has contributed much to its brand image.

• People have now started using Dairy Milk for gifting purpose too apart from consuming it as a normal sweet.

• There is a new liking towards dark chocolates and a considerable amount of people prefer dark chocolate over the normal one due to health reasons and taste.

Differentiating Factor

The USP of the brand is: Ultimate Purity Irresistible Taste Unmatchable quality Moment of pure magic and happiness

Positioning

Dairy Milk has placed itself at the pinnacle of Brand Value pyramid by associating itself with: Emotions Culture Traditions Achievements Celebrations Occasions

Brand Persona & Brand Essence

Brand Persona Lively Energetic Bubbly Sparkling

Brand Essence Pure happiness in every

moment It is not just a chocolate,

it is an ultimate experience of pleasure

Conclusion

Dairy Milk has now become an expression of: Joy Emotions Indulgence Shared good feelings Spontaneity

• Dairy Milk has now become a part of every Indian’s moments of happiness and celebration to the extent that it defines the chocolate taste of Indian consumers.

• The word chocolate resonates with Dairy Milk in India.

Conclusion

Through it’s splendid positioning strategies and memorable ad campaigns Dairy Milk perfectly catered to it’s Target Market which is “Anyone and Everyone” because every time is a Cadbury time

Conclusion

Dairy Milk introduced delicious variants giving consumers an exciting reason to keep coming back into the fun filled world of Cadbury

Conclusion

• Brand Penetration became so extensive that people started believing that no one needs a reason to eat Dairy Milk.

• Dairy Milk encapsulates an enormous breadth of emotions from shared values of Family Togetherness, Liveliness, Reliability and Fun to personal values of Individual Enjoyment and Indulgence which is also it’s Brand Personality.

Conclusion

Dairy Milk : Spreading Happiness since 1905