BRAND MANAGEMENT

Cadbury India is a food product company with interests in Chocolate Confectionery, Milk Food Drinks, Snacks, and Candy. Cadbury is the market leader in Chocolate Confectionery business with a market share of over 70%.

key brands of Cadbury

Cadbury Dairy Milk, 5 Star, Perk, Eclairs, Celebrations, Temptations, and Gems. In Milk Food drinks segment Cadbury's main product - Bournvita is the leading Malted Food Drink in the
country.

Cadbury India began its operations in 1948 by importing chocolates and then re-packing them before distribution in the Indian market. Today, Cadbury has five company-owned manufacturing facilities at Thane, Induri (Pune) and Malanpur (Gwalior), Bangalore and Baddi (Himachal Pradesh) and 4 sales offices (New Delhi, Mumbai, Kolkota and Chennai). Its corporate office is in Mumbai. Worldwide, Cadbury employs 60,000 people in over 200 countries.

A brand is a name sign symbol slogan or design or a combination of these, intended to identify the goods and services of one seller and to distinguish them from those of competitors". For companies; strong brands add value, and consumers develop positive associations with the brand and are less likely to purchase competitors products. This means the brand can act as a barrier to competition. For consumers, brands help them to quickly identify products and make shopping easier. Strong brands carry a guarantee of quality which consumers trust and are often willing to pay more for. Consumers will pay a premium price for a branded product if they believe they it provides a higher value.

The brand CADBURY enjoys a high level of brand equity. Researches show 90% of the people recognizes the brand while 74% state that when it comes to chocolate only CADBURY will do.

COMPETITORS:

1.Nestle 2.GlaxoSmith Con 3. Britannia 4. Kwality Dairy

Market Share
9% 15% 70% 6% Cadbury Nestle Britannia Glaxo Smith

To promote the new dairy milk megabrand , Cadbury implemented comprehensive 360 degree support campaign. This involved a highly coordinated set of promotional activities across various communications channel each activity bearing the same message . This approach is known as integrated marketing communications and ensures that consumers receive a clear and consistent message about a brand. The 360 degree support campaign include a point of sale competition to win a new look , new display units , a buy-two-get-one free promotion on 100g bars, PR and advertisements in the trade press. The result was that sales of the new Megabrand products exceeded targets by 12 % !!

SWOT ANALYSIS Strengths: Strong brand names like Cadbury Dairy Milk, Five star and Eclairs. Rich product mix. Support from the parent Cadbury Schweppes. Weaknesses: Lack of launch of new brands in Chocolates segment. Opportunities: The Indian market and more specifically the urban areas where the penetration of Chocolates is low can be developed as a future market through affordability and availability. Using information and technology to bring efficiency in logistics and distribution. Threats: Stiff competition in Confectionery segment. The company has large exposure to foreign currency exchange rate risk, mainly on account of imported cocoa beans and cocoa butter in US Dollar and Pound Sterling

Advertising

Advertising is the non-personal communication of information usually paid for and usually persuasive in nature about products, services or ideas by identified sponsors through the various media
Television, the print media and posters have been the main media of communication for Cadburys advertisements. More importance, Cadbury has launched a response cell through toll free number and an email id to encourage its customers to give feedback.

1)Old Ads Focuses on cricket. Spread joy Focusing on different professions 2) New ads More trendy Teenage oriented More event oriented.

Direct marketing defines the practice of directly provide the promotional information to potential customers instead of through a media

For the purpose of boosting the awareness and stimulating sales, Cadbury Trebor Bassett had launched a series of direct marketing campaign such as the dairy milks door drop campaign through the leaflet firms.
For example, Cadburys multi-award winning campaign like the Real Taste of Life to capture the child like spontaneity in every adult had reached extreme success Cadbury had created the Vodafone mobile marketing to deliver extra content and take the brand awareness and brand identity to a new level amongst the target audience.

The frequently asked questions on Cadburys website are being used effectively at all time for customers. customers can chat on the Cadburys community website to obtain more product information and provide feedback to the Cadbury management team. For example, customers are encouraged to joint the promotions of Cadburys Online Community competition, Great Picnic Challenge and the Top Gear Live Promotion.

Sales promotion

Cadbury has launched many sales promotion activities especially the customer oriented promotion that customers can benefit from it such as the Cadbury dairy milk buttons had launched the kids campaign in the city centre in April last year, the target audience of the campaign is parents with kids and the campaign include treasure hunts, face painting, story telling and biscuit and button decorating.

Publicity/public relation

Cadbury utilizes variety of tactics for the public relation such as the activities of sponsorship of screenclick.com, the radio promotion, media gift, product placement and point of sales.

Personal selling

Personal selling had been used long time ago by Cadbury and it is not being used anymore as brand awareness and brand identity of the Cadbury was increased dramatically.

1 - PRODUCT The wide variety products offered by the company include: I. Chocolate & Confectionary 1) Dairy Milk 2) Fruit & Nut 3) 5 Star 4) Break 5) Perk 6) Gems 7) clairs 8) Nutties 9) Temptation 10) Milk Treat

II. Beverages III. Food Drinks 1) Bourn vita 2) Drinking chocolate 3) Cocoa

2 Pricing

The strategy used by Cadburys is for matching the value that customer pays to buy the product with the expectation they have about what the production is worth to them. Cadburys has launched various products which cater to all customer segments. So every customer segment has different price expectation from the product. Therefore maximizing the returns involves identifying right price level for each segment, and then progressively moving through them. Dairy Milk Rs. 15 Perk Rs. 10 5 Star Rs. 10 Fruit and Nut Rs. 22 Gems Rs. 10 Break Rs. 5 Nutties Rs. 18 Bournvita (500 gm) Rs. 104 Drinking chocolate Rs. 50.

3 - Physical Distribution Place

Distribution Equity: It takes much more time and effort to build, but once built, distribution equity is hard to erode. India 1 billion people, 155 million household has over 4 million retail outlets in 5351 urban markets and 552725 villages, spread cross 3.28 million sq. km. television has already primed and population for consumption, and the marketer who can get to the to the consumer ahead of competition will give a hard to overtake lead. Cadburys distribution network has expanded from 1990 distributors last year to 2100 distributors and 4,50,000 retailers Looking at the low penetration of the chocolate, a distribution expansion would itself being incremental volume. The other reason is arch rival Nestle reaches more than a million retailers. This increase in distribution is going to be accompanied by reduction in channel costs. Cadburys marketing costs, at 18% of total costs, is much higher than Nestls 12% or even pure sugar confectionery major Parrys 11%. The company is looking to reduce this parity level. At Cadbury, they believe that selling confectionery is it like selling soft drinks.

Effective advertising is rarely hectoring or loudly explicit. It often both attracts and generates arm feelings. More often than not, a successful campaign has a stronger element of the unexpected a quality that good advertising shares with much worthwhile literature. Ad since any discussion today would be incomplete without mention e word, the management plans to tap this new channel of marketing. Beside three company website (i.e.www.cadburyindia.com, wwww.bourvita.com, www.cadburygift.com) that the company has launched, it had also entered into various marketing relationship with other portals, specially targeted during festivals and events such as Valentines Day, etc.

In the 1970s consumers were ready to pay more for more, and luxury goods flourished. In the 1980s, consumers began to demand more for same, and the discounting era grew strong. Todays consumer demanding more for less, and the winner will be that super value marketers. Some of todays most successful companies recognize those customers are more educated and able to recognize true customer value

Cadburys is an anchor in sea of confectionary products. As a variety of competitive claims assails her senses, today customer uses complicated decision making process to assess the alternative before making a purchase. Since Cadburys is more clearly associated with a particular set of attributes in terms of benefits and prices, the quicker becomes her search process.

Segmentation of Cadbury: Cadburys Dairy Milk has come out with such memorable ad-campaigns, which settled into the hearts of everyone. The advertisement campaign of Amitabh Bachchan, dressed up as a villager, proudly announcing that his daughter-figure won beauty contests for cattle, brought out the laughs and struck a chord with the same segment of people. Cadburys today holds 30 per cent markets share in the confectionaries industry and sells around 1 million bars a day. Targeting of Cadbury

Cadbury is looking to attract millions of new customers by shifting its strategy to focus on lowincome consumers. The British candy maker, which has been in India for more than 60 years and dominates the chocolate market, is making candy affordable to this massive untapped segment with products such as Cadbury Dairy Milk Shots--pea-sized chocolates, sold two to a package, for two rupees, or about four U.S. cents. These chocolates are encased in a sugar shell to protect them from the heat. "We seek to reach out to all of those consumers that are away from the cities and to sell [small] piece products at low price points," stated Cadbury chief executive Todd Stitzer.

Brand positioning is the aspect of the brand actively communicated to the target audience, specifically, its competitive advantage, values and imagery. It is strongly related to the perception and image of the product. When devising a positioning strategy for a product, marketers must establish a unique and distinctive image of that product in the mind of the consumer. This will differentiate a companys product from its competitors.

The discovery of worms in some samples of Cadburys Chocolate in early October 2003 created one of the biggest controversies in India against a Multi National reputed for being a benchmark of QUALITY. The state Food and Drug Administration has ordered seizure of Cadbury's Dairy Milk chocolates from all over Maharashtra after worms were found in two of them in Mumbai. The controversy created an deep adverse impact on the company with their sales not only drastically dipping down, but at the same time allowing the competitors to establish their foothold and taking maximum advantage of Cadburys misfortune. The controversy, and the adverse publicity received in several countries, set back its plan of outsourcing model which would have resulted in significant revenue generation, several months back.

1. NOT DENYING THE FACT Cadbury went into overdrive to tell consumers that improper storage of what is essentially a perishable commodity might lead to worm infestation. As a result Cadbury improved the packaging and paid more attention to the way its chocolates were stored by nearly 6,50,000 retailers across the country. 2. TAKING PRECAUTIONS 'Project Vishwas-Steps to ensure quality & regain the confidence Following the controversy over infestation in its chocolates, Cadbury India Ltd unveiled 'Project Vishwas', a plan involving distribution and retail channels to ensure the quality of its products. 3. GAINING BACK TRUST The Big B promoted the Big C in the chocolate business - Cadbury in India. Indian cine superstar Amitabh Bachchan has signed on to become the brand ambassador of the chocolate major for two years.

The companys approach to adding value to the community centres around three approaches: Money providing specific contributions, for example sponsorship of communityfocused events or activities; Time and skills - making a greater contribution to the community through its people, for example by using company skills for community organisations; and Gifts-in-kind for example donation of materials, products, promotional materials, equipment and furniture.

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