Cadbury India

EXECUTIVE SUMMARY coffee trees had its beginnings in the times of the Mayas and the Aztecs when they beat coffee into a pulp and made a bitter frothy drinking umber divulge of them. They first became popular in Europe in a super unrefined engineer. Then the Hershey Food Comp whatever was the first to bring tabu drinking coffee berrys in the presently popular solid hammer. The primary(prenominal) ingredient of coffee trees is cocoa, giving mainly on the equatorial z mavins of S step uph America. The other ingredients that go into the fashioning of chocolates atomic number 18 clams, take come in solids, and permitted emulsifiers. Cocoa constitutes nearly 40% of the totality star topologyk(a) material apostrophize.The fol first-class honours degreeing report attempts to make a tuition on the chocolate effort and the position of the chocolate put up, Cadbury. The mail fix elect is the umbrella brand as we feel that the corporate name is recognise as a brand , non so much its individual carrefours. The study will focus on the grocery storeing and publicise strategy utilize by Cadbury in the context of the Indian macro environment and industry structure. The advertising strategy will be studied with observe to Cadburys transmission line and commercialiseing objectives. The strategies adopted will be analyzed for each merchandise religious offering.The same(p) is followed to a minimal extent for its study competitor, hold close India Limited, to work an understanding of where Cadbury stands. The report initi bothy focuses on an examination of the industry environment and the mathematical yield class. The report then goes on to analyse the corporate, tradeing and advertising strategies adopted by the selected political party and its main competitor. It concludes by looking at the prox challenges and recommendations for the industry and the comp each. TABLE OF CONTENTS Chapter 1 INTRODUCTION search METHODOLOGY1 1. Rese arch details(Type of research, Sample size, Sample design, selective informationCollection)8 2. Limitations of the project8 3. Market Segmentation9 4. Psychographics Demographics 12 Chapter 2 alliance PROFILE13 Chapter 3 KEY SUCCESS FACTORS 14 Chapter 4 PRODUCT PORTFOLIO 15 Chapter 5 STRATEGIC tick off ANALYSIS 16 Chapter 6 g overning body ANALYSIS 17 Chapter 7 COMPETITOR ANALYSIS 19 7. 1 cling to ( facultys and Weaknesses)19 7. 2 Amul (Strengths and Weaknesses)21 7. 3 Cadbury (Strategy and Future Plans) 22 Chapter 8 client ANALYSIS 24 8. 1 Need gap analysis counterpart competitors24Chapter 9 inter content ENVIRONMENT ANALYSIS29 9. 1 The Chocolate pains in India 29 Chapter 10 blot IDENTITY 30 Chapter 11 bulls eye PRISM 31 Chapter 12 BRAND POSITIONING 33 Chapter 13 BRAND IMAGE 36 Chapter 14 BRAND genius 37 Chapter 15 PORTERS phoebe bird FORCES FRAMEWORK 40 Chapter 16 FUTURE CHALLENGES42 Chapter 17 RECOMMENDATIONS TO GEAR UP FUTURE CHALLENGES 43 Annexure supplement A door guards 5 Forces Model44 addition B berth with respect to the coif divides45 Bibliography46 Chapter-1 INTRODUCTION AND RESEARCH METHODOLOGY 1. 1 Research DetailsType of Research alpha and Descriptive. Sample Units Two of the Number One brands in India namely Cadburys and nose, respectively, were chosen on the nates of their commercialize sh ars. These deuce industries were chosen on the al-Qaeda of the usage of the productions, as the usage of FMCGs is tall and noticeable. Sample approach pattern Non-probability sampling was resorted to and the methods utilise is Convenience sampling and Judgment sampling. Samples size The total sample size is 32, which includes consumers of all the 2 brands, retailers of Cadburys and snuggle. Data Collection Data was collected both from twinklingary sources as comfortably as rimary selective information was a homogeneous collected. A structured questionnaire method was used to collect special data. Secondary data was soured from various published sources which include magazine desire AM, Business India and Business world. Newspaper resembling filth E prime(a), dent wagon and The Times of India were besides used. Annual Report of Cadburys and go up were also referred. Data was analyzed manually and with the help of computer nuttyw ar EXCEL, to make graphs and pie charts. 1. 2 Limitations of the project 1. For generalization of the results a study unavoidably to be undertaken establish in a larger sample across variant industries. . Since the study is confined to Mumbai yet, the findings potnot be applied to other part of the country. 1. 3 Market Segmentation This can be d unmatched in two ways product forms and node based. With Respect To merchandise Forms in that respect ar four major divisions in the Indian Chocolate Industry Moulded Chocolate Segment This fragment constitutes 50% of the total commercialise. Cadburys dairy farm take out (CDM) Cadburys flagship brand has 50% of thi s department market. To position CDM in this plane section Cadbury used the traditional demographic variables of age, socio-economic chemical sort outs and usage intensity.CDM was positioned as a product that elders (pargonnts) bought for children. Cadbury has pieceually associated itself to enduring and stirred value of love, sharing, p atomic number 18ntal inclination, and reward. Considering that CDM practically acts as a trend setter for all the brands in this segment, this hold the posture of the good course of instruction towards children just. Amul attempted to expand the category by bringing in teenagers, but it was not successful. The Cadbury brands in this segment be CDM, Fruit grouch, crackling, Bournville.CDM is basically the leading brand here, and the others act as an contributor basket for the company. Nestle forms 25% of this segment and the companys major brands are Nestle Classic, Nestle Milk Chocolate and Nestle Crunch. From most 1993, this segm ent began showing signs of maturity. This was hurting CDM. This led to Cadbury attempting to rejuvenate the segment. They changed their core customer from children to that of the universe both children and adults. This attempt at redefining the market to enticing all age groups helped bring nearly changes in the segment.Today, the notion associated with the consumption of chocolates is that of conversance instead of just product consumption. Today, this segment grows at 40% per annum, and is believably to remain an important segment for further development. Countline Bars Segment This segment forms 33% of the chocolates market. This segment is broadly speaking tar admited at teenagers. Major Cadbury brands are 5-Star, Break, legitimate, Krisp, and soprano Decker. 5-Star is doing well here (about 50% of the segment) while the rest of the brands act as endorser brands. Nestle has a minor charge in this category with its product Bar-One.Growth of a Sub Segment Chocolate Wafers Chocolate wafers are the bran- tender products being offered by chocolate companies nowadays in ordain to expand the market. In 1995, Cadbury and Nestle launched call for and KitKat respectively. These were waferenrobed chocolates in a new context and a different benefit offering. two chocolates had a collation positioning. Perk offered the anytime anywhere snack proposition Thodi si Pet Puja, whereas KitKat act to promote snacking with Have a break, Have a KitKat. The growth rate of this segment is 15-20% annually, and is estimated to be worth over Rs. 00 crores, making it a in truth lucrative segment. Internationally, confectionery products exchangeable wafer chocolates claim a in truth high tonnage and nominate a much bigger future than plain chocolates. Market research and success of these two brands suggest that Indian consumers are ready for accepting the wafer chocolate proposition. The conviction of both Cadbury and Nestle towards this segment can be gauged fr om the fact that both brands are seeing unprecedented allocation of dramatic playds, to the tune of 60% to 70% of the total ad budget of both companies on chocolates. Choco Panned SegmentsThis segment forms 4% of the total market and Cadbury has 100% of the market in this segment. The major brands are Nutties, Caramels, Butterscotch and Tiffins. All of these brands ready been used by Cadbury to drive commixture, induce gifting practices and serve to around circumstantial taste alternatives. Cadbury does not advertise these brands. They require been used as flanker rump products. The opportunity for growth in this segment is high what with the imminent admittance of multinationals like Mars and Hersheys. This is also likely to pose a nemesis to Cadbury, what with its complacency. Sugar Panned SegmentThis segment form 15% of the total market and Cadbury has about 98% of this segment, its major brands being Gems and Eclairs. Eclairs has been used strategically to foster ch ocolate consumption among children as well as adults by offering a tiny guilt free, eat no more(prenominal) than a biteful at a at ease monetary value point. (65% of Eclairs eaters are from the households earning less than Rs. four hundred0/- per month. ) Gems is still Cadburys primary as well asl to protect its franchise in the child segment. It was antecedently associated in its commercials with the world-wide spy character, James Bond.Around 1995, Gems was repositioned to broad base its supplication from 3-6 historic period olds to teenagers as well. til now this failed due to the product form which has wrick deeply rooted with kidskins and hence the company has reverted back to the target segment of kids with a new offering of Chocogems. With Respect To The Consumer Buying Power These are 1. High income customers (price greater than Rs. 25 for 40 gm. ) who will go in for tribute chocolate brands. 2. shopping centre income customers (price in the midst of Rs. 10 25) who are price sensitive. 3. Children, who are mostly price driven and will consume more of toffees in the price range of Rs. . 50 1. 1. 4 Psychographics And Demographics This is attempted in terms of the consumers. 1. High income customers it is estimated the age group buying the chocolates will be 22 onwards. The income level is estimated to be Rs. 8000 per month. The customers are mostly urban, and are mostly professionals (engineers, doctors, executives, etc. ) The psychographic indite They can either be individuals indulging themselves, or they could be indulging their children. They are inward directed people who form their own values and norms and believe in not adhering blindly to accessible norms. They re somewhat occasion driven in their buying demeanour. 2. Middle income customers it is estimated that the age group in this segment will be 15 plus. The income level is estimated to be most Rs. 5000 per month. The consumers can be urban, getup urban, and is currentl y spreading to coarse areas. The psychographic profile they are likely to be variety seeking in their behavior. They are self expressing by nature and inner directed to an extent. They like to indulge themselves. Children the upper age limit is estimated to be 12 years. They mostly bargain for their chocolates with their pocket money.The consumers can be urban, semi urban, and rural, though their is a somewhat greater emphasis on urban. The psychographic profile they are trinket seeking in deportment. They are also fun loving. CHAPTER-2 COMPANY PROFILE Cadbury India Limited Cadbury India express was set up as a wholly owned supplemental of the UK-based Cadbury Schweppes abroad Limited in July 1948. They started off by setting up production facilities at Thane to comprise chocolates, malted regimens, cocoa powder and drinking chocolate using the technological know how of the parent company.The company has manufacturing facilities at Malanpur and Induri. During 1997, the company invested Rs. 80 crores in the two factories. At Malanpur, the capacity of Eclairs (one of the Cadbury range of products) production was subjoind, a new wafer line was installed, and the chocolate making capacity was step-upd. This increase is from 7000 to 17000 tonnes. At Induri, a new moulded line was installed to manufacture center filled moulded in orange tree and coffee Truffle. Cadbury is the market leader in the Indian chocolate market with a share of 70% and sales of around 12000 tons.It has successfully differentiate its product over the years by strategic brand building. The company had rattlingised that chocolates by itself do not accomplish any quick use ups (soft drinks would satisfy thirst, ice cream would extend relief from heat), so they would pass on to be associated with human feelings of romance, magic, love and affection. So it had at one point of time employed emotional adherence as basis of differentiation. This has lately been change to incl uding the rational perspective so as to catalyse increased consumption of chocolates in spite of appearance the family.KEY BUSINESS OBJECTIVE to continuously forget products that are value for money. CHAPTER-3 KEY SUCCESS FACTORS (KSF) On analysing the market, the phenomenal success of the company can be attributed to The pioneer advantage (first operator advantage) The company was the first to enter the Indian market, as early as 1956. For a yen time, it was practically the only dominant player in the market. It, therefore, enjoyed a large share of both customers lovingness and mind. So much so that for an absolute generation, chocolate was synonymous with Cadbury. It is only of late that the company has started facing some panic from Nestle.A besotted endorser brand Cadbury realised early that batchs would not be enough to set up all its brands with heavy adverts. Hence what they were to take CDM as the flagship brand and advertise it heavily to popularise the bra nd name to help the flanker brands around CDM. But in the get going two years the company has dog-tired broadly on the chocolate wafer segment (without treating it as a flanker brand of CDM), seeing as how the segment has been growing phenomenally. Right product formulation the climatic conditions and the Indian taste are precise different from the western markets where the company first started its operations.Cadbury was able to successfully reformulate its product as per the Indian conditions, while entrants like Nestle could not do so. Presence in all segments Cadbury has a presence in the entire range, starting from low priced hard boiled sweets and peag confectionery to the allowance range of chocolates. The company also claims success in all these segments it has been go into recently. CHAPTER-4 PRODUCT PORTFOLIO The succeeding(a) is the list of the major brands of the company Cadburys dairy Milk Cadburys Gems Cadburys Nutties Cadburys crepitate Cadburys 5 Star Cadb urys Mr.Pops Cadburys Eclairs Cadburys Truffle Cadburys Gold Cadburys Bournville Cadburys Tiffins Cadburys Butterscotch CHAPTER-5 STRATEGIC BRAND ANALYSIS OF CADBURY CHAPTER-6 ORGANIZATION ANALYSIS It was in 1824 that John Cadbury opened a shop in Birmingham in the UK. Originally shiting tea and it was, provided, the fringy lines of cocoa and chocolate that in just a fewer years took over as the mainstay of the business. The Cadbury Brothers first made draw chocolate in 1897, but by todays standards was a precise coarse change product made by blending milk powder with cocoa and sugar.The Swiss who produced a superior product by using condensed milk then dominated the milk chocolate market. In the early 1900s George Cadbury was placed to meet this challenge and, together with the experts from the Bournville factory, started to research new recipes and production methods. By June 1904 the recipe was perfected and a delicious new milk chocolate made with full cream milk, and co ntaining far more milk than any previously known product, was ready to go into production. Although considerable technological advances have since been made in the production processes, the recipe is still basically the same as it was in 1904.In 1905 the chocolate was launched under the name CadburyDairyMilk. Cadbury India limited was set up as a wholly owned subsidiary of the UK-based Cadbury Schweppes Overseas Limited in July 1948. BRAND CHARTER VISION- Cadbury in every pocket and Superior Shareholder Value PURPOSE- operative together to pee brands people love. VALUES- Cadbury is an international company, uplifted of their long heritage, respectful of the social and natural environment in which they operate, positive of their consumers, customers and colleagues and passionate about success.Cadbury believes in making, marketing and selling unique brands which collapse or bringpleasure to millions of consumers around the world every day. Cadbury is act to the highest standards of corporate governance and corporate and social responsibility. BRAND TEXTURE- Chocolate-The very word makes your mouth water. Chocolate is not just a food its a state of mind. Throughout history, chocolate has been associated with romance and sharing, and today the richness and smoothness of Cadbury chocolate is what makes it one of the worlds optite treats.Cadbury is a world-renowned name with more than 150 years of chocolate heritage. Available in over 160 countries, Cadbury is the single largest brand in chocolate on an international basis. The Cadbury name can be seen in all chocolate think categories including confectionery, ice cream, cakes, biscuits, chilled desserts and chocolate based drinks. Synonymous with the very word chocolate, Cadbury has a unique relationship with the consumer. This relationship is underpinned by the powerful visual icons of the Cadbury brands the Cadbury signature, the glossiness purple, the glass and a half trademark, and the chocolate itself .These all come together to form the brand identity-the Cadbury Master station. Cadbury had realized that chocolates by itself do not satisfy any conterminous bespeaks (soft drinks would satisfy thirst, ice cream would provide relief from heat), so they would have to be associated with human feelings of romance, magic, love and affection. So it had at one point of time employed emotional attachment as basis of differentiation. This has lately been modified to including the rational perspective so as to catalyze increased consumption of chocolates within the family. CHAPTER-7 COMPETITOR ANALYSISIndian Chocolate market having a turnover of Rs. 350 crore (20,000 tonnes) has three major market players CIL imposing the market by capturing 70% of the market share, followed by Nestle having 20% of market share, Amul having a niche market of 7% and remaining 3% with half-size players. 7. 1 Nestle India Limited Nestle is a strong player in chocolates world wide but it entered the Indian market much later (in 1991) than one of its global competitor Cadbury. . Nestle stop 1997with a 41% increase in their net profit with Rs. 74. 3 crores. The net sales of the company amounted to Rs. 425 crores, which is an 18% increase over last year. Out of this, chocolates had a 31% increase in the sales turnover. Nestles initial foray into the Indian market was not very successful. The problem was in the formulation of the product. They were soft chocolates with high fat inwardness which were un equal to the Indian climate. Also, the dissemination focus had been on the larger cities and urban areas, which limited their customer base. It was with the launch of KitKat that the companys strategy changed with respect to both product and scattering.It increased its dispersal profits to cover small towns and interiors as well, so as to increase their customer base. It also modified the formulation of the moulded chocolates to suit the Indian conditions. The company used three laye rs of gravel packaging so that KitKat could survive the summer heat. The product was targeted at the effortless consumers of chocolates primarily adults through a clear proposition of ful option a snacking neediness which basically took advantage of the fact that the existing chocolates in the market were too heavy to be had as a light snack.The company sees a huge potential in the wafer covered with milk chocolate, not only in the chocolate market but also in the premium biscuit market. The company is trying to expand the market in this command by portraying it as a product taken during the breaks. The distribution and packaging are in harmony with the broad marketing plans of the company. Nestle followed a strategy of distributing its chocolates in ice-lined Sintex tanks to protect them. KitKat currently has the maximum top in terms of the number of outlets it accesses.This has helped the company to increase the consumer base and to sell the new concept. KitKat packaging sy nergies with the total brand appeal. It has been packaged to keep the product fresh, crisp and protected from the harsh climactic conditions in the country. Special packaging is also integral to KitKat break ritual, which plays a part in the brand mystique. Nestle owes much of the success of its Eclair to the price point at which it was kept. Nestle Eclair has a filling of tweed chocolate. This makes it relatively less exposed to the perils of high chafe duties instanced by other Eclairs.The whitened chocolate filling also -makes it different in the taste and therefore Cadbury Eclairs for a long time neglected it as its competitor. taking advantage of the exemption from excise hike, Nestle has priced its Eclair appropriately in a price sensitive market. Taking this price advantage, it has been able to corner 7. 5% of the market for chocolates as a full-length and 27% of the market for eclairs. Milky Bar is a white chocolate from Nestle and is targeted primarily at children. Th e sugary taste of the white chocolate appeals to the children.It is positioned as a source of energy and nutrition (Ad stock certificate Milkybar, give me the power). The positioning is used to influence the decision-making unit for the consumers in this segment i. e. their parents. The wellness and nutrition oriented proposition is used to counter the ban perception of the parents that chocolates are bad for the teeth and unhealthy. Nestle have also entered the sugar confectionery market, in direct competition with Cadbury by offering Allens Splash, and Allens Koffees, and Allens Butterscotch.With eroding margins and increasing competition, Nestle has also started to look at exports to gain ground its turnover. Strengths Market leader in coffee and baby food domain Well-established distribution vane extending to rural areas. Strong brands in the FMCG sector. funky cost operations Large product portfolio. Weaknesses Low presence in health drinks In comparison to Bournvi ta, Horlicks and Boost the market penetration of MILO is very low. Low Market Share in chocolates as compared to Cadburys. Didnt get the first movers advantage. Initially the distribution focus had been on the larger cities and urban areas, which limited their customer base. 7. 2 Amul (Gujarat cooperative Milk Marketing coalition Limited)- Amul is the third player in the chocolate market in India. This brand does not have any international lineage and is miniscule in terms of market share in chocolates, as compared to the other two players Cadbury and Nestle. Amul had an extremely focused positioning of A gift for someone you hunch forward, albeit not targeted at a single age group. Strengths Strong and extensive distribution and sales network. Large market penetration in dairy industry Age old market presence carries a traditional image. Quality and purity and trust as consumer relationship. Value for money and low price. Weaknesses No focus on the chocolate industry. Lac k of organizational commitment. Amul chocolates have shown a very limited product differentiation. Low retailers margin. 7. 3 CADBURY Cadburys strategy is to create robust and sustainable regional positions in its two core markets, confectionery and beverages, through organic growth, acquisitions and disposals.It has exited markets where its believed it did not have or could not build, sustainable business models. It has strengthened existing positions and extended its presence in higher margin, immobileer growing product categories or geographies within its core markets. The company follows a multi branding strategy i. e. having more than one brand cater to a particular segment that may eve lead to the cannibalization of sales of one brand. The game plan for the company is to increase the consumption of chocolate and confectionery among adults by offering products in convenient packs at affordable price. FUTURE PLAN-To develop the future we need a clear understanding of the fut ure. Cadburys has these goals for the years ahead- free superior shareowner returns on the back of superior business motion Profitably and significantly increase its share of the global confectionery market Profitably secure and then grow its share of the regional beverages markets in which the company has chosen to participate To reinforce its reputation as a Company which motivates, develops and rewards employees for superior performance and make a difference in the communities in which it does business. To develop brands with mass franchise and widen out its distribution network further into the rural sector Keeping with the awareness that new product development provides the key to growth in this market plunk one new product every year and extend its sugar confectionery range The future strategy of the company is to maintain its dominance. CHAPTER-8 node ANALYSIS 8. 1 NEED GAP ANALYSIS VIS-A-VIS COMPETITORS 1. establish on Retail Price pic 2. base on Packaging pic 3. Based On blur Name pic 4. Based on CustomersHigh income customers it is estimated the age group buying the chocolates will be 22 onwards. The income level is estimated to be Rs. 8000 per month. The customers are mostly urban, and are mostly professionals (engineers, doctors, executives, etc. ) Middle income customers it is estimated that the age group in this segment will be 15 plus. The income level is estimated to be around Rs. 5000 per month. The consumers can be urban, semi urban, and is currently spreading to rural areas. Children the upper age limit is estimated to be 12 years. They mostly purchase their chocolates with their pocket money.The consumers can be urban, semi urban, and rural, though there is a somewhat greater emphasis on urban. The psychographic profile they are novelty seeking in behaviour. They are also fun loving. Consumer Buying behavior- The product category comes under Fast Moving Consumer Foods (FMCG) and the product is generally purchased as a conve nience good. The general characteristics of this product are It is a low involvement product, but there are significant differences in various brands in market. The following matrix may help in studying the behavior of consumer for this particular product category.High InvolvementLow involvement Significant differences analyzable buying behavior Variety seeking behaviour Between brands * chocolates few differencesDissonance reducingHabitual buying Between brandsbuying behaviorbehaviour In this category, consumers are often found to do a lot of brand replacement. Although the consumer expects some benefits from chocolates, but he chooses a brand without much evaluation, and evaluate it during consumption only. But next time, sort of often he may reach for another brand out of boredom or a wish for a different taste. fall guy switching occurs for the sake of variety rather than dissatisfaction. Since Cadbury has 70 % of market share, this variety-seeking behavior had not affected i ts sales negatively. This had been possible due to various factors like neglect of strong competition. However, with the new entrants in the market, there has been stiff competition. There are few segments like wafer chocolates segment where company faces strong competition from Nestle, the second major player in the market. In these segments company should try to increase brand loyalty for its brands.This increased consumer loyalty will also act as deterrent towards development of strong competitors in other segments. supercharge to increase the overall size of market, company should try to increase consumers involvement with chocolates. The company has its products focused around three basic propositions- ( Drives attitudes and behaviour This is led by the companys flagship brand Cadbury Dairy Milk (CDM). CDM is currently positioned on the emotional plank of spontaneity and self- panorama and is targeted mainly on the adult consumer. Drives Snacking outgo It has two main brands in this category 5 Star & Perk. However both the brands are positioned in a slightly different manner. Perk is positioned as a any time snack anywhere, whereas 5 star is positioned as a Energy Bar. Drives variety, gifting and taste preference The two brands in this category are Gems and Eclairs. However, there is a lot of difference between these two brands. While Gems is targeted primarily at children, Eclairs is a chocolate simulator, which sour the taste and the feel of the chocolate but has to popped in the mouth like a toffee Drives attitude and Drives snacking and consumption Drives variety, gifting and taste behaviour preference Endorsers Dairy Milk 5-Star Gems Perk Dairy Milk Eclairs Flankers Bournville Break Butterscotch Crackle Caramels Nut Milk Nutties Fruit & Nut Tiffins Creamy Bar blackguard Almond Prodigals Overtures (now withdrawn) All Silk Besides these endorsing brands, Cadbury traditionally has maintained a whole battery of fla nk and satellites in its brand portfolio.It has always focused on preempting any moves by a competitor by launching a brand of its own. The threat of Nestles compliance led to the launch of tactical brands like All Silk, Crackle and Break. Therefore, in the Cadburys brand system, the flanker brands are used for the tactical purpose of plugging a gap in the segment where the threat of entry by a rival brand was imminent. Cadbury has also entered the sugar confectionery range of Googly and Mocka with the intention of expanding its range further. However, Nestles successful entry through KitKat in the wafer segment proved that unless you support your flank brands actively, they are not going to be of any use in block up competition.And hence Cadbury is showing some active interest in the area. CHAPTER-9 EXTERNAL ENVIRONMENT ANALYSIS 9. 1 The Chocolate Industry in India The chocolate industry in India has a size of 20000 tonnes and is worth about Rs. 400 crores. The chocolate market h as been growing by nearly 35% however there has been some slowdown in the last two years. The chocolate market is predominantly urban with coverage of 95%. The sales volume have decreased by 5% in the last year and the chocolate market had declined with the average consumption coming down by 25% from 16000 tonnes to the current level of 12000 in the first quarter of 1997, generally due to the steep hike in excise duties. However, this trend has seen multifariousness of a reversal in the latter half of 1997. Cadbury India limited was set up as a wholly owned subsidiary of the UK-based Cadbury Schweppes Overseas Limited. The parent company is the fourth largest in the world chocolate market, after(prenominal) Mars, Nestle, and Philip Morris. They set up operations here as far back as 1948, and will thus be completing 50 years of its existence here. Cadburys milk chocolate was first introduced in the Indian market in 1956. It made an immediate impact, quickly becoming the market lea der a success story, even to this day. The Major Players The major national players in the chocolate market in India are Cadbury India LimitedNestle India Limited Gujarat Cooperative Milk Marketing Federation Limited (Amul) Two giants Cadbury and Nestle, dominate the have chocolate and eclair market. Together they have a 90% share of the entire market. Amul holds a 5% share, and is present only in the moulded chocolate segment of the market CHAPTER-10 BRAND IDENTITY Definition steel identity is a unique set of brand associations that the brand strategist aspires to create or maintain. These associations represent what the brand stands for and imply a promise to customers from the organization members. Brand Identity Structure of Cadbury CHAPTER-11 BRAND PRISM Picture of sender (company)Taste, sanitary Friendly, Indulgent Physique reputation Liberation,Relationship Culture Individualism, Self Indulgence Casual, commutative Reflection Self Image Free child Picture of telephone receiver (Customer) BENEFITS DERIVED FROM CADBURY BRAND Functional proceeds Taste and contented Emotional Benefit Happiness Self-Expressive Benefit Being yourself. liberation CHAPTER-12 BRAND POSITIONING Cadbury is the perfect expression of spontaneous, happy, joyous feelings. Eating Cadbury provides the Real Taste of conduct experience. pic Positioning is the space occupied by Cadbury in the minds of the consumer.For the chocolate market, Cadbury is pitted against competitors like Nestle, Amul and substitutes like, chips, biscuits and other light snacks. Idea of positioning Cadbury is to occupy a distinguishable space, which is differentiable, yet powerful. The positioning of Cadbury in India is as follows Thodi si pet puja kabhi bhi kahi bhi Kya swad hai zindagi main Khane ka bahana chahiye Cadbury is the perfect expression of spontaneous, happy, joyous feelings. Eating CDM provides the Real Taste of Life experience Basis of positioning Cadbury India believes in the follo wing when it comes to positioning Product based positioning Strong corporate brand. Product based positioning Quality/Value Associations with Use Occasion Kya swad hai zindagi main. Thodi si pet puja kabhi bhi kahi bhi. The quality aspect is hugely emphasized in Cadbury. Even the Cadbury can be consumed anytime as has been expressed in its physique, particularly the visuals(glass and a half symbol) advertisement continuously. STRONG CORPORATE BRAND Consumers know they can trust a chocolate bar that carries Cadbury branding. The relationship between Cadbury and individual brands is symbiotic with some brands benefiting more from the Cadbury relationship, i. e. ure chocolate brands such as Dairy Milk. Other brands have a more distant relationship, as the consumer motivation to purchase is ingredients other than chocolate, e. g. Crunchie. Thus the positioning of the umbrella brand Cadbury is such that it signifies trust to a great extent because of which the brand has a massiv e fan following. CHAPTER-13 BRAND IMAGE Taste of lifeBe your self, care free Brand image is what is perceived by the customers across the target segment. Its target segment can be divided into following segments Kids Teenagers Mature adults Use based segmentation Festivals such as Holi, Diwali. Occasions such as Valentines Day, birthdaysFor kids nitty-gritty enjoying the taste of chocolate and life. For adults the values are self expression. CHAPTER-14 BRAND PERSONALITY Many of the worlds most powerful brands spend a great dish of time putting disposition into their brands. It is the personality of a brand that can appeal to the four functions of a persons mind. For example, people make judgments about products and companies in personality terms. They might say, I dont think that company is very affable, I feel uneasy when I go into that branch, I just know that salesmen is not telling the truth about that product or That offer doesnt smell right to me. Their minds work in a personality driven way.Given that this is true, then how can a company create a personality for its product or for itself? The answer lies in the pick and application of personality values and characteristics. A products brand personality is a description of its characteristics in relation to the target market for the product. It assists marketers to develop suitable advertising and promotional campaigns for the product. The following diagram shows the Brand Personality of Cadbury. pic Cadburys different brands have different Brand Personalities. Some of them are discussed down the stairs Cadburys Dairy Milk The Rebel Leader Brand Personality of youthful exuberance and rebelliousness 5 Star The champion companionMale personality and reliability Perk The girl next door Brand personality of a warm, perky, naughty accessible, Indian girl next door Milk Treat Childrens Superhero For kids and School going children CHAPTER-15 PORTERS FIVE FORCES FRAMEWORK pic MAKING OF THE BRAN D CADBURY IN INDIA When Cadbury entered Indian market it knew that that India is a tough nut to crack with its vast and various geographical and ethnical diversifications. Major challenges for Cadbury India was to get people accustomed to chocolates- primarily seen as a western taste and do so by reaching out to the masses in a land where mindsets and preferences are as diverse as the country itself.It decided to use a common computer programme that is universal to all cultures The platform of love and affection. It used emotional appeals to position its brand as a surrogate to parental affection for their children. The positioning clicked for Cadbury but the brand audit done a few years later revealed that it had restricted its market to the kids. To grow it had to target the elders also. So what was the next Big Idea? The marketers decided to position the product for the kid in all of us. The communication for the new positioning was The Real Taste of Life. It portrayed itself as a perfect expression of spontaneous happy, joyous feelings.Cadbury conducts regular audits and tries to reinvent its strategies according to the findings of the audits. CHAPTER-16 FUTURE CHALLENGES Cadbury was recently plagued with allegations of supplying Worm infected chocolates. It received huge negative packaging and needs to avoid such fatal mistakes. The root cause for the higher up problem lies in the Distribution. Chocolates are a perishable product and therefore needs to be supplied to a retail outlet as fast as possible. At the same time retailers should be compensated for any stock that has expired without any hassles. The products also need to be transported in a refrigerated environment as they melt in way temperature. This Therefore needs to clearly redefine its distribution strategies.As Indian markets start out more receptive to globalization there are chances of more and more MNCs entering the Indian market. Cadbury needs to maintain its brand equity through reg ular innovative advertisements and promotions. There is a growing threat from local anesthetic substitutes. The Sweet shops are reinventing themselves and coming up with their own versions of chocolates. These find favor with the local tastes and are available in many varieties. Both MNC and local anaesthetic Bakery brands are expanding their operations. Theses bakeries are manufacturing various verities of chocolates locally with local blends. They do not have to invest in extensive distribution and have as good quality as Cadbury. Their USP is providing fresh chocolates.Cadbury has to reinvent its strategies to face such future challenges. CHAPTER-17 RECOMMENDATIONS TO GEAR UP FOR FUTURE CHALLENGES Cadburys major problems are linked to the need for very responsive distribution network due to the perishable nature of its products. Costs go up and problems like the recent worm episode arise. What we suggest is a revamping of its distribution network to make it more responsive. In dian consumers mainly consume sweets during some festivals. It must(prenominal) come up with innovative offerings for its chocolates to suit the need during such occasions. e. g. come in up with shapes similar to Indian Sweets and package it innovatively reflecting the festival colors. Start exploring newer distribution channels like E-tailing where Hi-value chocolates are sold in specialized packs. pic Appendix B Positioning with respect to the price segments Positioning Drives attitude and behaviour Drives snacking and consumption Drives variety, gifting and taste Price preferences High KitKat Cadburys Fruit & Nut (above Rs. 25 for 40 Cadburys Roast Almond gms. Cadburys Bournville Cadburys Nut Milk Tango Almond Medium Cadburys Crackle Cadburys Perk Tango Fruit & Nut (Rs. 10-25 for 40 Cadburys Dairy Milk Cadburys Creamy Bar gms. Tango cashew tree Tango Crispy Amul Fruit & Nut Nestle Crunch Low Nestle Premium Milk Nestle Milkybar Amul Milk Chocolate (below Rs. 10 for 40 Nestle Classic Kandos Amul Bitter gms. Tango Milk Chuckles Amul orange Nestle Bar One Amul Crisp Cadburys Break Cadburys Relish Cadburys Five Star Nestle Rich nighttime Mystique BIBLIOGRAPHY Kapferer, Jean-Noel. Strategic Brand instruction. The Free Press. A division of Macmillan, Inc. 1992 var. Kotler, Philip. Marketing Management summary, Planning, Implementation, and Control Prentice-Hall, Inc. Eighth Edition Aaker, David, et al, Advertising Management Prentice-Hall, Inc. Fourth Edition Business Line Catalyst Thu. Feb 19,1998. Financial express Brand Wagon Fri, Oct. 27, 1995 Internet Sources www. business-standard. com www. financialexpress. com www. conomictimes. com www. hinduonline. com www. indiaserver. com www. expressindia. com www. indiainformer. com www. cadbury. co. uk www. india-today. com/btoday Back issues of A&Ms CADBURY Competitor Analysis ? Strength & Weakness ? Strategies ? Future Plan forecast Organi zation Analysis ? Vision, values and culture brand texture ? Resource utilization Ext. Environment Analysis ? Policies & Govt. regulations (PEST) ? Technological ? Political Customers Analysis ? Need gap analysis ? Consumer behaviour Uti l ity Retail price C N A service Pkg. design A N C Utility A N C Brand name Joyful, lighthearted, CarefreeDairy Milk, Perk, Fruit and Nut, Crackle, Kit kat The real taste of life Stars Bachan, Zinta, Cyrus Real Taste of Life Brand nucleus spontaneous, happy, joyous feelings. Across the age Half full glass of milk pouring into chocolate and forming the C of Cadbury Cadbury Relationship Customer Cadbury For whom Kids, teens, mums, adults, mature adults. (FOR EVERYBODY) wherefore? Offers rich taste Kya swad hai zindagi main Against whom Competitors like, Nestle, Amul Substitutes like, Chips, Biscuits. When All purpose consumable. Gifts, Light snack Receiver current perception Sender Goal Cadburys Brand Personality Reliable Down-to-Earth Fun-Loving Indulgent Confident FriendlyCadburys Brand Personality Indian sweets having chocolate flavor Many MNCs provision to enter India. Also there threats from existing players in confectionary industry lacking to enter choclates. Vertical Integration could increase bargaining power of suppliers. Indian consumers are price sensitive and may easily switch. High aspiration but Cadbury enjoys a good brand recall. Substitutes Substitutes like IceCreams, potato chips, biscuits, soft drinks, chewing gum, are a source of threat as well as opportunity for market expansion. Suppliers Major raw material Suppliers are cocoa producers in Latin American countries. Due to negligible home(prenominal) production inIndia, suppliers enjoy high bargaining power. Milk supply also fluctuates, therefore, in summer months, milk suppliers gain sufficient bargaining power. Competitors Duopoly Both the major players have Financial muscle to sustain their Brands All players following a pull strategy. Buyers Sinc e chocolates do not satisfy any immediate needs, it is not a necessary item. Consumer power is very high and consumers need to be persuaded through various positioning planks to consume chocolates. New Entrants imminent entry of global majors like Hersheys, Mars etc. is environ to change the power equation in the Indian chocolate market. Appendix A Porters 5 Forces Model