26-06-2012, 01:35 PM
INTRODUCTION TO CADBURY
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Cadbury's presence in India dates back to 1948, when the parent Cadbury Schweppes set up a wholly owned subsidiary Cadbury Fry (India) Ltd. Cadbury, a subsidiary of Cadbury Schweppes is a dominating player in the Indian chocolate market with strong brands like Dairy Milk, Five Star, Perk, Gems, etc. Dairy milk is the largest chocolate brand in India. Chocolates & Confectionery contribute to 75% of Cadbury’s turnover. Cadbury also has a strong brand Bournvita in the malted health drink category, which accounts for 24% of turnover.
Cadbury was originally incorporated as a wholly owned subsidiary of Cadbury Schweppes Overseas Ltd (CSOL) in 1948. The company’s original name was Cadbury Fry (India) Ltd. In 1978, CSOL diluted its equity stake to 40% to comply with FERA guidelines. In 1982, the name was changed to Hindustan Cocoa Products. The parent holds over 90% of the equity capital after the first open offer. A second open offer has been made to buyback the balance shareholding, after which the company would operate as a 100% subsidiary of Cadbury Schweppes Plc.
Over the years, the company attempted several diversification in food category, albeit with little success. In 1986, Cadbury forayed into biscuits with Cadbury Butter, Glucose and Bournvita brands. The business however, could not take off and was discontinued 3-4 years later. In 1989, Cadbury diversified into ice creams with Dollops and Lopstop brands, which were sold off to Brooke Bond in 1994.
Cadbury India Limited (CIL), a part of the Cadbury Schweppes Group, is India’s leading confectionary manufacturer. Cadbury’s Dairy Milk, 5 Star, Eclairs, Perk and Gems are the largest selling brands in their segments. CIL is estimated to have a 65 percent share of the Indian chocolate market.
The Indian chocolate market is estimated to be worth
Rs. 3.2 billion, with an annual growth rate of 10 percent. Per Capita Consumption levels are very low in India, as compared to 8.7 kg per year in the U.K. The market therefore offers tremendous potential for growth.
In this analysis, we examine some of the interesting aspects of Cadbury’s advertising strategy.
The Advertising Message
Chocolates have usually been viewed as something meant only for children. Perhaps realizing that children would be attracted to any chocolate, irrespective of the brand, CIL targeted adults with their advertising since the early 1990s. Most, if not all, of Cadbury’s advertisements in India feature people over 18 years of age.
The message that CIL seems to be attempting to put across is this: “In every adult, there is a child - let that child express itself, give in to temptation, and satisfy his or her desire to sink teeth into a smooth, creamy, delicious chocolate”. This approach appears to be unique to Cadbury’s. CIL’s biggest competitor, Nestle, often stresses the energy giving aspects of chocolate (for example, in advertising for Nestle Charge), or on other attributes of the chocolate - taste in the case of Nestle Crunch, as a light snack in the case of Nestle Bar One. Nestle specifically targets children in the advertising for Milkybar, its white chocolate, again emphasizing its energy giving properties.
To counter Milkybar, CIL has the Dairy Treat - where it targets the mothers of children by trying to convey the message that its product is full of the goodness of milk, and so equivalent to consuming milk itself.
Message Execution
Cadbury’s multi-award winning campaign - ‘The Real Taste of Life’ - launched in the 90’s attempts to capture the child like spontaneity in every adult. From the old man offering his wife a Dairy Milk chocolate to the dancing girl in a crowded stadium, all reflect the impulsiveness and the spontaneity of the child in the adult.
Cadbury’s Perk, the light snack, addresses the hungry child in every adult, as exemplified by the bride who nibbles at a Perk under her ‘pallu’. Cadbury’s Dairy Treat conveys its message through the mother who refuses chocolates and other treats to her son, till Dairy Treat comes along and quickly changes her opinion about chocolates.
Catchy lines such as ‘The Real Taste of Life’, ‘Khane Walo Ko Khane Ka Bahana Chahiye’, or ‘Reach for the Stars’, are also used extensively, and to good effect in Cadbury’s advertisements.
Advertising Media
Television, the print media and posters have been the main media of communication for Cadbury’s advertisements. However, with their understanding of the peculiarities of the Indian market, CIL has also explored many new ways of getting their message across to the consumers.
Sheet Metal Dispensers: This purple salesperson for Cadbury’s is found in almost every shop stocking their chocolates. Since it is placed on the cash counter, it’s design offers visibility, ease of vending, and protection from the elements. It is also placed in the most appropriate position to cater to the impulse buyers. This ‘first’ from CIL has become so popular that is now the standard design for all chocolate manufacturers.
Visicoolers: Visibility for chocolates drops in the summer, as they disappear into the refrigerator. In high throughput outlets, the visicooler serves the need for cooling while still maintaining the visibility of the product.
Jars: These are provided to small outlets, where they are prominently displayed.
Vending machines: These high visibility machines are provided at busy locations.
Presence in Amusement Parks: Cadbury’s also maintains a presence in many amusement parks across the country, strengthening the association of its chocolates with ‘fun’ occasions.
Conclusion
Cadbury’s strategy to attract consumers is somewhat unique in a sense, instead of focusing on the product, it seeks to tap into emotions normally associated with chocolates. They have also adapted their strategies to the unique demands of the Indian retail sector. The strategy has clearly proved successful, as they have been able to build and maintain a leadership position in the market with many loyal customers.
• BIBLIOGRAPHY • Philip Kotler (Eighth Edition) “Marketing Management”, Prentice Hall of India Ltd. • Advertising and marketing Magazine • Company Literature • Market survey and questionnaires • Web site: www.cadburyindia.com • Web site: www.google.com • Business World
• QUESTIONNAIRE1. Do you eat chocolates? Yes No2. Which brand of chocolates do you use? Cadbury’s Nestle Amul Others3. Where do you buy chocolates from? Super stores Retail Stores Restaurants Movie Halls Others4. Are you aware of any campaign of the above brands? Yes No5. Which cadbury’s product do you usually prefer or use? Dairy Milk 5 Star Fruit & Nut Perk Temptation6. Do you think Cadbury’s chocolate is easily available in market ? Yes No7. Describe Cadbury’s Chocolate in one word?
V. Chocolate & Confectionary 1) Dairy Milk 2) Fruit & Nut 3) 5 Star 4) Break 5) Perk 6) Gems 7) Eclairs 8) Nutties 9) Temptation 10) Milk Treat V. Beverages VI. Food Drinks 1) Bournvita