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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 India
Nestle India
Ferrero India
Amul India
Mars
Others
Statista.com
Euromonitor
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 Ka
Message 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
faces
Target 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 love
Target 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 exams
Target 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 chocolate
Target 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
celebrated
Target Group: This ad focused primarily on service class
people for whom this day is of immense importance
Shubh Aarambh
Message 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 Respondents
18-25 83
26-35 14
36-45 4
46-60 9
Total 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%
18%
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 packaging
I love the taste
It is easily available
It is not at all
expensive
21%
16%
35%
28%
Reasons for purchasing a Dairy Milk
As a Sweet Dish
As a gift during
festivals
For self-
consumption as a
snack
To give it as a gift to
your
friend/girlfriend/boy
friend/husband/wife
25%
45%
25%
5%
Reasons that helped Cadbury build a
good brand image?
Quality
Taste
Unique
Advertisements
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

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Marketing : Repositioning Strategies of Cadbury Dairy Milk

  • 2. 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.
  • 3. 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.
  • 4. 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 India Nestle India Ferrero India Amul India Mars Others Statista.com Euromonitor International
  • 7. 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.
  • 8. 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.
  • 9. 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
  • 10. 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
  • 11. Packaging • Cadbury introduced “purity-sealed” packaging in January 2004 • Three-layer packaging
  • 12. 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.
  • 13. 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
  • 14. Journey of Cadbury Dairy Milk
  • 15. Chocolates in India Chocolates were perceived as:  Unhealthy  Impure  Unaffordable  Only for Kids
  • 16. 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’
  • 18. Asli Swad Zindagi Ka Message 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
  • 19. 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
  • 20. 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 faces Target Group: No age limit as people all across different age groups are portrayed in the ad
  • 21. Kuch meetha ho jaye Message Delivered: Even small events in life deserve to be celebrated and a bar of Dairy Milk signifies love Target Group: All people who care for each other and like to celebrate the small events of life
  • 22. 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 exams Target Group: People who like to celebrate success in life, this ad attracted a lot of attention from the students
  • 23. 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 chocolate Target Group: Majorly the rural population, a 5 Rs. Bar of Dairy Milk was introduced post this ad
  • 24. Aaj Pehli Tarikh Hai Message Delivered: A thing as usual a Salary Day also deserves to be celebrated Target Group: This ad focused primarily on service class people for whom this day is of immense importance
  • 25. Shubh Aarambh Message 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
  • 26. Survey Analysis Total Respondents – 110 Age Group No. of Respondents 18-25 83 26-35 14 36-45 4 46-60 9 Total 110 Gender No. of Respondents Male 65 Female 45 Total 110
  • 27. • 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.
  • 28. 63% 18% 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
  • 29. 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 packaging I love the taste It is easily available It is not at all expensive
  • 30. 21% 16% 35% 28% Reasons for purchasing a Dairy Milk As a Sweet Dish As a gift during festivals For self- consumption as a snack To give it as a gift to your friend/girlfriend/boy friend/husband/wife 25% 45% 25% 5% Reasons that helped Cadbury build a good brand image? Quality Taste Unique Advertisements Well known Brand Ambassador
  • 31. 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
  • 32. 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.
  • 33. Differentiating Factor The USP of the brand is:  Ultimate Purity  Irresistible Taste  Unmatchable quality  Moment of pure magic and happiness
  • 34. Positioning Dairy Milk has placed itself at the pinnacle of Brand Value pyramid by associating itself with:  Emotions  Culture  Traditions  Achievements  Celebrations  Occasions
  • 35. 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
  • 36. Conclusion Dairy Milk has now become an expression of:  Joy  Emotions  Indulgence  Shared good feelings  Spontaneity
  • 37. • 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
  • 38. 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
  • 39. Dairy Milk introduced delicious variants giving consumers an exciting reason to keep coming back into the fun filled world of Cadbury Conclusion
  • 40. • 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
  • 41. Dairy Milk : Spreading Happiness since 1905