3. Company and brand overview
o British confectionery co.
founded in 1824
o Second largest after Mars
o Began operations in 1948 in
India
o Dairy Milk-flagship brand
started in 1905
o Contributes 10% of total sales
by volume globally
o 70% market share in India by
Cadbury
o 30% contributed by Dairy milk
3Group No-12 Section-G
5. Chocolate Market Analysis
using Porter‟s Framework
Rivalry
Rivalry 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, cookie
s, ice creams etc.
Supplier bargaining
power
moderate to high as
concentrated suppliers
(cocoa beans) and no
substitutes of inputs
present
5Group No-12 Section-G
6. 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 population
W
• 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 chocolates
T
6Group No-12 Section-G
7. Competition Analysis
o Main competitors are Nestle
and Amul
o Cadbury: Market leader &
Nestle: Market Challenger
o Cadbury and Nestle together
own 90% of market share
7Group No-12 Section-G
8. Consumer Behavior
o Marketing Stimuli
o Campaigns -
Communication
o „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%
16%
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
8Group No-12 Section-G
9. o Consumer Psychology
o 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 Perception
o Perceived as sweet, warm & delightful
o Screening mostly through „selective attention‟
o Learning
o Taste largely determines whether consumer will repeat or not
o Memory
o 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
9Group No-12 Section-G
10. Consumer Behavior
o Buying Decision Process
o Relatively quick
o Impulsive purchase depending
on availability and taste
preference
o Easily switching among brands
o Post Purchase Actions-largely
governed by consumer‟s liking
or disliking of taste
10Group No-12 Section-G
11. Targeting
o Full market coverage attempts
o 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 consumption
o „Kuch meetha ho jaye‟
o Target: to associate Cadbury with sweets
o „Pappu pass ho gaya‟
o Target: encourage to celebrate achievements with Dairy Milk
o „Aaj Pehli tarikh hai‟
o Target: To celebrate pay day/salary day with Dairy Milk
11Group No-12 Section-G
12. 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
12Group No-12 Section-G
13. o Brand naming
o Usage of „Cadbury‟ on all confectionary
products in conjunction with product brands
o Brand elements
o Catchy slogans and campaigns
o Branding decisions
o Brand re-positioned itself to appeal to older
age-groups
o 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
13Group No-12 Section-G
14. Points of Parity
• Similarity of products make
points of parity important
for survival
Points of Differentiation
• Value differentiation
• Image differentiation
Branding Strategy
14Group No-12 Section-G
15. o Packaging
o Change in Packaging over years:
Product Analysis
15Group No-12 Section-G
16. 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
16Group No-12 Section-G
17. RECOMMENDATIONS
Bring out new products for health conscious people (low calorie,
sugar free, etc.)
Continue to promote as substitute to mithai
Special packaging and variants for occasions and festivals
Introduce new flavours within the product line (e.g.-strawberry,
vanilla, etc.)
Opening of its own chocolate outlet in major cities
Adopt new marketing strategy to harness rural segment
Adoption of e-commerce for bulk purchasers
17Group No-12 Section-G
