1. Cadbury won the exclusive right to use its signature purple color (Pantone 2685C) on packaging over 100 years ago and has kept this color identity.
2. The 1997 "Freebird" commercial conveyed a strong message of freedom and happiness using imagery of a couple freeing caged pigeons while enjoying Cadbury.
3. After worms were found in some Cadbury chocolates in 2003, the brand invested heavily to upgrade packaging and launch a PR campaign featuring Amitabh Bachchan, rebuilding its wholesome image.
2. • Market Size: INR 113B (2016)
• CAGR: 8% till 2021
• Industry is dominated by
international brands
• Market is characterized by high
volumes, huge expenses on
advertising, low margins, and
price sensitivity
• Major Players: Cadbury India,
Nestle India, Ferrera SpA, M&M,
Hershey’s, Godrej CPL
• Mondelez India holds 49% MS
by value
• Ferrero Rocher is the fastest
growing chocolate brand,
capturing the premium
chocolate confectionery
• Chocolate industry can be
segmented by the type of
ingredients which is used to
produce the chocolates.
• Types are Dark (9%) , Milk (75%)
and White chocolates (16%)
• Cadbury and Nestle, that
account for almost 90 percent
of the market value
• Cadbury offers Dairy Milk, 5
Star, Celebrations,
Temptations, Bourneville,
Gems
• Adults represent the strongest c
onsumer base for premium choc
olates in India
• The demand for
premium chocolate is supported
by the fact that they are used as
gifts during festive seasons and
occasions across India
• It is common to consume som
ething sweet after every meal
in India
• However, increasing health
consciousness
has led consumers to opt for
dark chocolates
• Independent small grocers rema-
ins the most prominent distributi
on channel for chocolate
confectionery in India, accountin
g for 75% of value sales in 2016
• Cadbury Dairy Milk dominates
Cadbury India’s portfolio with
43.5% by value
Source: Euromonitor December 2016 report on Indian Chocolate Industry
The Chocolate Confectionery Industry in India
3. Bargaining Power of Suppliers: Moderate
• Large number of suppliers
• But Indian cacao production is very low and insufficient
and therefore most of the raw material is imported
• Differentiated raw materials in terms of taste (Foreign
Cacao is preferred to the Indian variant) makes it more
difficult to switch suppliers
Threat of substitutes: High
• Threat from both chocolate and non-chocolate products
• Products like Chocolate biscuits, spreads, syrups, milk shakes
offer different substitutes
• Non-chocolate products, especially in the Indian context, sweets
pose a major threat
• People also find snacks, fruits to be fulfilling
• Recently, a new healthier substitute to chocolate, Carob is finding
place among customers
Bargaining Power of Buyers: Moderate to High
• Large number of brands with different SKUs with
different price points
• Some amount of brand loyalty with taste and
psychological connotations
• No switching cost of buyers
Threat of New Entrants: Moderate
• Huge capital requirements and complicated supply chains make
it difficult
• However, Indian market undergoing a transformation due to
changing preferences for premium and dark chocolates,
unconventional flavors and made for Instagram-packaging which
has allowed several home grown as well as global brands to
enter the market. Eg: Earth loaf with its fusion flavors, LuvIt from
Godrej
• Also India has the lowest per capita consumption of chocolates in
the world which has made the segment attractive for the new
players
Current category rivalry: High
• Large number of competitors with offerings from cost-effective
to premium to dark chocolates available
• Dairy Milk accounts for 40% market share followed by Nestle
India with 20% market share
• Premium Brands like Ferrero, Mars and Hershey’s have made
significant inroads by launching globally accepted brands in
India. Eg: The recent launch of M&Ms by Mars, Hershey’s
Brookside
• Rise of the affluent population and changing lifestyles making it
an attractive segment for more companies
4. Political
• Chocolate industry is highly regulated by FSSAI
• Demonetization implemented in November caused a cash
crunch and therefore caused the YoY revenue of all major
companies to slide
• GST has caused a tax hike with chocolate being placed in
the highest tax slab of 28% which has caused price hikes
and in some cases like Cadbury they have been forced to
lower their margins by keeping the prices same
Economic
• Economic factors have had a mixed effect on the industry
• Rising disposable incomes due to the economic growth
observed has spurred spending on products like
chocolates
• Interest rate cuts or increases can increase and decrease
cash flows for consumers
Social
• Changing lifestyle of people has caused an increased
demand for indulgent products
• People prefer chocolates as an effective snack on-the-
go. Although, traditional sweets have a psychological
presence, rise in the premium chocolates with attractive
packaging has provided consumers a gifting alternative
to sweets.
• However, some consider it a guilt food and go for
healthier alternatives
Technological Factors
• Technological advances has caused greater variation in
the tastes and complexity of the product category
Chocolates with different fillings like the Marvelous
Creations by Cadbury and Cadbury Dairy Milk Silk Bubbly
is India’s first aerated chocolate have been created
• Innovations in packaging has also been seen which allow
for longer preservation
• Supply Chain innovations like reducing inventory pipeline
have seen product reach the consumer in shorter times
and also introduced convenience by allowing them to
shop through online stores
Environmental
• Companies are increasingly pressurized to conform to
environmental standards whether it is in terms of
manufacturing, packaging, or disposal
• Moreover, they are being forced to shift to greener
methods and compensate for the environmental damage
caused by them through CSR initiatives etc.
Legal
• Chocolates are a highly regulated company (Done by
FSSAI) and various cases of adulteration have been
discovered which have resulted in legal battles
sometimes resulting in payouts. Eg. Worms being found
in Cadbury Chocolates. Although the power of
consumers in India is quite less as compared to other
countrie
• Also health advocates have started to take action
against the obesity and other health problems
associated with it
• Legal protection is also required to protect the patents
owned by various companies
PESTEL Analysis
5. Strength
• Market leader in chocolate confectionery with Presence
in more than 200 countries
• Powerhouse of brands such as Dairy Milk, Bourneville,
Oreo, 5 star and Temptation
• Strong emotional connect/positioning with Indian
customers with even greater focus on brand
promotions
• Cadbury has a very strong distribution network across
the globe in 200 countries and even better in India with
a very strong hold in the market leading to 43.5 %
market share just for the Dairy Milk brand
Opportunities
• Being a very mature brand with good market share,
Cadbury should focus on acquiring competitors to have
a even better stronghold in the market and eliminate
competition
• Rural India consists of more than 65% of the population
which is not exploited to its potential. Cadbury should
focus on rural India and try to exploit the market
• Cadbury can also venture out for the ice cream
segment as it is an indirect competition to chocolates
and the brand can diversify the portfolio in regards
• Cadbury can also look into sugar free chocolates for the
people who suffer from Diabetes
Weakness
• Few incidents of quality issues that affected the
brand image a little
Threats
• Marketing expenditure in this category is very high, and
any increase in raw materials and greatly affect the net
margins
• Much of the population in India suffer from Diabetes
which can be a serious threat to Cadbury.
• Rising purchasing power of Indian population might
lead them to shift towards premium international
chocolate brands like Ferrero Rochers, Lindt Excellence,
etc
SWOT Analysis
6. Who They Are
o Demographic: Age groups from 5 to 40 form our
primary consumers. Geographically, urban and semi-
urban are the primary target groups
o Psychographic: Primarily, people preferring indulgent
food and snacking on-the-go are the targets. No
considerable offerings for health-conscious people.
o Behavioral: Both heavy and light users targeted.
Sometimes used as a substitute for sweets, dessert
and gifts
What they buy and how they use it
o Normally the standard variants Dairy Milk occupy the
major market share. Although, Premium chocolates
are the fastest growing segment with 19.4% growth
with Silk gaining 5.5% market share over the 3.5% in
2015
o Usage is usually fragmented ranging from as a snack
to a dessert to a gifting item to a socializing product
How do they choose what to buy
o Strong brand loyalty in this product category make
the role of influencers very low
o Word of Mouth is the most effective in terms of
influence
How they respond to marketing programs
o Generally people have a high and favorable response
to their communication efforts
o Their ads are found to have an emotional connection,
humor inducing, invoke joyous celebrationsWhen do they buy
o There is no specific pattern to the consumption due to
it being a impulse food item
o Spikes in sales are generally observed close to festivals
like Diwali, Raksha Bandhan etc.
Why they prefer a product
o Strong psychographic and brand associations are the
main reasons for people
Where Customers Buy
o Most of the customers buy through traditional
grocery stores (88.4%) whereas 10% is done through
modern retail chains (hypermarkets, Supermarkets)
o A very small percentage buy through online mediums
Customer Analysis
10. Target, Segmentation, Positioning
• Geographic segmentation – PAN India with a very strong distribution network
• Demographic Segmentation –
• Income – Targets higher income group with the Cadbury Dairy Milk Silk chocolate bars, with the variants Oreo, Chocolate, Fruit & Nut, Caramel,
Bubbly and Roasted Almond. Targets the medium and lower income group with the Cadbury Dairy Milk and other variants.
• Age – Initially it was targeted at kids and youngsters but now the target group also includes adults and elderly people.
• Behavioral Segmentation – Cadbury targets its customers based on occasions as well like celebrating Diwali, Rakshabandhan, any other joy in life or
when starting something very auspicious.
• Positioning – The brand positions itself as a premium chocolate synonymous to happiness. The ad campaign taglines ‘Real taste of life’, ‘Pappu pass ho
gaya’, ‘Asli swad zindagi ka’, validate Cadbury’s claim of being a chocolate brand to celebrate happiness. Recently, the brand has also started
positioning itself as a right thing to do before starting something auspicious with ‘Shubh Arambh - Kuch meetha ho jaye’ and also as a desert offering
with the tagline ‘Meethe me kuch meetha ho jaye’.
11. Brand Mantra
Points of Parity
Points of Difference
Substantiators
Executional Properties/Visual Identities
Values/Personality/Character
Lots of
variants
Tastes like
this feels.Strong
emotional
connect
Excellent
distribution
system
Strong advertising
campaigns
Strong legacy of
chocolate making
Good
quality
and taste
Attractive
Packaging &
Fairly Priced
Cadbury
script
logo
Dark Purple
color used
in all packs
The glass
and a half
with milk
being
poured on a
chocolate
cube
Auspicious
Kindness
and
Warmth
Fun,
excitement
and Cheerful
Young
and
Youthful
Happiness,
Romanticism
Playful
Indulgence
Long
standing
brand,
incorporated
in 1948 in
India
Market
leader in
chocolates
Years of
innovative
products
Consistent
Quality
World’s largest
confectionery company
Five
manufacturing
units in India to
meet demands
Tagline ‘Shubh Arambh - Kuch meetha ho Jaye’
Brand Positioning Framework
Return to Q&A
12. Brand Loyalty
• Consumers are highly brand loyal, Number of repeat
purchases is too high, DM enjoys loyalty in terms of
gifting options also
• Consumers are highly aware of the brand Cadbury Dairy
Milk. Consumers are highly familiar with the brand and
have high level of confidence on the brand and its taste
• Highly Reputed brand in Chocolate Confectionery
industry
Brand Associations
• Celebrations, Special occasions, Victory,
Trusted Brand, Good gifting option,
Friendship, Caring, Bonding, Happiness
• Key association: Happiness
• Number of brand extension: 4(Silk, Lickables,
Shots, Jelly Popping Candy)
Other proprietary brand assets
• The Cadbury name, The Cadbury Purple Color is
associated with DM, The Cadbury Logo and Trademark
have been recognized as a symbol of quality and trust
from Centuries, The Cadbury Cubes design
Perceived Quality
• Has a halo of being product of good quality, High
quality packaging, Reasonably priced, The purple color
is associated with premiumness and good quality, The
Cadbury logo is highly trusted, considered a solution for
sweet cravings- 'Kuch Meetha ho Jaye
Brand Awareness
• Dairy Milk is synonymous to the Brand Cadbury
• High unaided awareness, Consumers are highly familiar
with DM brand name, The logo, the purple color of the
brand, and the jingle also, consumers like the taste
Aaker Model for Brand Equity
Return to Q&A
13. Positioning Statement
To every individual who shares a chocolate and likes to spread
happiness, Cadbury Dairy Milk is a brand of chocolate that provides
the feeling of goodness and the best experience of milk chocolate
because every Dairy Milk is made with the best cocoa, the purest
milk and loads of love
Brand Mantra
Taste like this feels
Brand Tagline
• Shubhaarambh.. Kuch Meetha Ho jaaye
• Dairy Milk Silk.. Have you felt the Silk Lately?
• Dairy Milk Shots... Mann me laddu foota
Brand Mantra vs Tagline vs Positioning Statement
14. Upward Stretching
Dairy Milk Silk
Downward Stretching
Dairy Milk Shots
Line Extension
Dairy Milk Lickables
Line Pruning
Dairy Milk Wowie
Product Line Stretching
Dairy Milk Marvellous
Creations
19. Signature Stories
• One of the most known story of Cadbury is the signature Pantone 2685C purple that it has been using on its packaging for more than 100 years now. It had
also won the right to stop rival chocolate makers to use this color in their product packaging.
• 1997 campaign ‘freebird’ – The commercial shows a couple sitting on the seaside, when a pigeon vendor strolls the area with the two pigeons locked in a
cage. The woman looks at the man with disappointment, and he goes ahead to buy the two. The woman then frees both the pigeons from the cage and
feels the moment of happiness. The ad campaign portrayed a very strong message of freedom relating to true happiness of life. That’s when dairy milk is
shown with the tagline of ‘Alsi swad zindagi ka’
• In October 2003, just a month before Diwali, customers in Mumbai complained about finding worms in Cadbury Dairy Milk chocolates. The brand’s
wholesome, warm image was threatened, and sales dropped drastically. Cadbury issued a statement that the infestation was not possible at the
manufacturing stage and poor storage at the retailers was the most likely cause of the reported case of worms. Even though the cases reported were few in
number and mainly from one particular state of Maharashtra, Cadbury still went ahead the extra mile by investing up to Rs 15 crore (Rs 150 million) on
imported machinery, Cadbury's revamped the packaging of Dairy Milk to a poly flow one. The metallic poly-flow, was costlier by 10-15 per cent, but Cadbury
didn't hike the pack price. In less than two weeks, the company launched a PR campaign for the trade. And three months later, Cadbury roped in brand
ambassador Amitabh Bachchan to do some heavy duty endorsement putting his personal equity on the line for the brand.
• Cadbury Dairy Milk campaigns broke the stereotype in the early nineties that chocolates were only meant for children. Back in the early nineties, a trip to
the grocery store always meant possible treats for kids, while the mother and father never got anything. This was confusing because the chocolates were
delicious and grown ups who did like eating all these other less tasty things, would want nothing to do with the wonder that was good chocolate. Most
adults love chocolates too and they’d enjoy breaking the small bars of the chocolate and pop one in the mouth. But stereotype had shoved all that
wonderful, delicious goodness into the children’s area, and lugged the poor adults with the idea that growing up meant growing out of things which actually
had very little to do with age. Real Taste of Life” - the campaign was pure joy distilled into a few seconds of screen time where adults had a bar of Cadbury
chocolate in their hand and it was okay for them to indulge now!
Source: ‘A Sweet Story’ by Hindu (February, 2015)
20. Brand Communication Strategies
Advertisements:
Cadbury Dairy Milk ads have always been found to imbibe emotional connect with sometimes a tinge of humor. As it evolved
it started focusing on festivals, modern events and auspicious ceremonies to encourage it to be used as a substitute for
traditional sweets. Some of the major ad-campaigns:
• ‘Kuch meetha ho jaaye’: A common theme across most of the ads and encourages to use it whenever there is a craving for
something sweet or on festive occasions. ‘Pappu Paas ho gaya’ and ‘Badhti Dosti ke Naam’ are some of the more popular ones
• ‘Shubh Aarambh’: Launched in 2010, it plays on the Indian custom of having something sweet before starting any major event in life
• ‘Meethe Mein Kuch Meetha Ho Jaaye’: Encourages people to use it as a dessert instead of ice-cream, sweets etc.
• Cadbury Dairy Milk Silk focuses more on playful romance by showing chemistry between opposite sexes
• Cadbury Lickables (primarily for the kids) recently launched shows its yummy flavor and having fun along with the toys which are free
with it
Return to Q&A To Cadbury Ads
21. Promotions:
Cadbury Dairy Milk generally is not a brand that engages in extensive promotions. However some of the more prominent ones
are shown below
• Recently, offering an extra piece with the 5/- SKU
• Offer running in the first half of 2017 of getting a free coffee
at CCD with Dairy Milk Silk
• Using third parties like amazon.in to provide more combos
22. Events and Social Media Marketing
Events are regularly organized on Friendship Day, Valentines Day etc. to grow the connection between these events and Dairy
Milk. Social Media is a big forte for them and have a combined 2m followers from India
• Friendship Adda organized in collaboration with MTV
in light of upcoming Friendship Day and introducing
two new flavors.
• #RealDosti Campaign whereby people have
been encouraged to take a selfie with friends
and share with the hashtag MADFIE
23. PR & Publicity
• The Shubh Aarambh CSR Initiative and focusses on the integrated
development of children to foster nutrition/health education,
promote education and address social issues impacting young
people, gender equality and support young people to become
better citizens
• Assisting Cacao farmers through the
Cocoa Life Initiative by helping
them through the production
process
• iCARE, an employee volunteering program,
inspires employees to invest time, skills and
passion in the areas of education, child/elderly
welfare, NGO capacity building, etc.
25. 1952
Cadbury Dairy Milk
adopted Cadbury's famous signatu
re, Dropped the picture of the
churner in the center
1970
Saw the specific mention 'Milk
chocolate' in its packaging. This
continued till 1993
1993
Saw the replacement of Milk
Chocolate by the famous 'A glass
and a Half' picture in the logo
1999
The chocolate cube was shown for
the first time with milk being
poured into it from 'A glass and a
half'. The graphics in the Logo
became 3D and also a brighter
purple color was used. This was a
huge shift from the normal Dairy
Milk logo
2010
Cadbury Dairy Milk again
reintroduced The Gold Color font.
The chocolate cube was removed
and now the milk was directly
poured onto the name. They also
used 2D design and the swirl
remained. This Design, primarily
took the Cadbury Dairy Milk logo
design to the era of 1980-1993
2015
Finally they removed the swirl,
made the logo look flat, richer
purple was used and for the first
time shifted away from all Capital
letters
2003
Cadbury Rebranded Cadbury's
Dairy Milk to Cadbury Dairy Milk. A
newly altered Cadbury logo,
featuring a swirling purple oval, and
a new white, beveled, slightly
squashed typeface. They dropped
the usual Gold color font of
Cadbury
Cadbury Dairy Milk Packaging Over the Years
26. Pricing Strategy
• Hidden price increase - In 2005, a Dairy Milk chocolate of 60g priced was priced at INR16 in 2005, and currently INR 20 for
40g which is an increase of 87.5% in 12 years, 7.29% YoY
• Product Line Pricing
Premium
Pricing
Parity
Pricing
Value Pricing
Return to Q&A
28. Increasing competition with the entry of both major global
and homegrown players. Global players like Mars and
Hershey have been launching their globally iconic brands
in India looking to leverage the low penetration in India
Increased preference of premium and dark chocolates
have presented a new threat. Ferrero (due to its primarily
premium offerings) has already overtaken Nestle and is
the fastest growing company in chocolate confectionary.
Mars had recently overtaken Mondelez in the modern
retail category
Chocolates are considered a sinful indulgence and linked
to obesity which has forced people to look for healthier
alternatives. Carob, a healthier substitute to chocolate has
been finding increasing acceptance among consumers
because of the above reasons
Prying away the share from traditional sweets which are
intrinsically linked to the taste buds and traditions of the
people here is extremely difficult and is both money and
time consuming
Price points pose another challenge. Majority of Indians
still do not see paying 10 or 30 Rupees as value for money
which accounts for the low penetration in India
Increased demand for unconventional flavors has seen
brands like Earth Loaf make gains. Cadbury Dairy Milk
doesn’t have an offering in this segment
Major Threats
Return to Q&A
29. Primary Research Insights
• Reasons to Buy: To uplift mood, sweet Craving, Gifting, better alternative for a diabetic person than sweets when sweet
craving increases, Works as a energy booster
• Gift given to: Date, first meeting, child's birthday part, birthday gift, child in a home
• Consumed by everyone in the family, cubes are broken and consumed, cube helps in sharing, kids consume it by biting, fun
is in breaking and eating it
• Highly likely to gift Dairy Milk because the chocolate pack looks good
• Purple color looks good, has been the same purple color for ages, purple color means Dairy Milk, looks premium, purple
color is associated with a nice chocolate
• Cubes broken and consumed as a sweet after food on a habitual basis
• Dairy Milk is sugary, sweet, has a strong after taste
• Dairy Milk consumed when there is sugar craving
• Dairy Milk is synonymous with the brand Cadbury
30. Q & A
• There are total 5 products under Dairy Milk brand and a total of 17 variants. The number of products is optimal
• Each and every product is addressing a particular need of the customer. Dairy milk – Milk chocolate, Dairy milk silk – Premium chocolate,
Dairy milk shots– Budget Chocolate, etc.
• Products of Cadbury Dairy Milk are well differentiated from each other and its competitors. Price analysis of the products of Cadbury has
been done including that of some major competitors
• Cadbury dairy milk just launched the ‘Cadbury Dairy Milk Lickables’. It should not launch any new product now but should prepare to
venture into the ice cream and sugar free chocolate segment. Because, this is an untapped market and is a different segment altogether,
there shouldn’t be any cannibalization of the brand but rather sales and market share would increase from untapped markets. Positioning
of the brand
• Brand Equity and Positioning of Cadbury Dairy Milk
• Point of Difference – Strong brand recall of the brand; high emotional connect with the Indian consumers through strong emotional
marketing; very strong distribution network and attractive packaging
• Over time the packaging has changed very subtly and the stories have been quite consistent as well, starting from ‘Asli swad zindagi ka’ to ‘
Shubh Arambh – Kuch meetha ho jaega’, all relating to happiness quotient. The same has been advertised on media as well
• Major threat include – Consumers being health conscious, Strong international brands entering the Indian market, etc.
31. Recommendations
Cadbury can venture into the ice cream segment
as it is an indirect competition to chocolates and
the brand can diversify the portfolio in regard.
The extension will be as ‘Dairy Milk Ice Cream’
exclusive outlets where the flavors will have the
mix of the classic Dairy Milk chocolate bar with
other ingredients
Diabetes currently affects more than 69.2 million
Indians, which is more than 8.7% of the adult
population (WHO 2015 Data), restricting them to
experience their favorite Cadbury Dairy Milk
chocolates. Cadbury can extend the brand with
‘Dairy Milk Sugar Free chocolates for the people
who suffer from Diabetes as this segment is
currently untapped
While making chocolate cakes at homes, instead
of using Hershey’s chocolate sauce, people
prefer to melt and mix Cadbury cocoa and
Cadbury Dairy milk together and use it for the
icing. This insight can help Cadbury Dairy Milk to
consider launching Dairy Milk Melted Chocolate
in the near future
Return to Q&A