1.

OUTLINE OF CHOCOLATE INDUSTRY ........................................................................................................ 2 HISTORY OF CHOCOLATE........................................................................................................................................... 2 CHOCOLATE MARKET IN INDIA:................................................................................................................................... 2

2.

BRIEF PROFILE OF THE COMPANY ALONG WITH ITS DIVISIONS ............................................................... 3 CADBURY INDIAS BRIEF PROFILE:- .............................................................................................................................. 3

3.

SEGMENTATION AND POSITIONING ........................................................................................................ 7 SEGMENTATION ...................................................................................................................................................... 7 GEOGRAPHIC SEGMENTATION ................................................................................................................................... 8 BEHAVIORAL SEGMENTATION .................................................................................................................................... 8 POSITIONING OF CADBURYS DAIRY MILK ..................................................................................................................... 9

4.

MARKETING MIX ................................................................................................................................... 10 PRODUCT .......................................................................................................................................................... 10 PRICE ................................................................................................................................................................ 10 PROMOTION ..................................................................................................................................................... 11 PLACE................................................................................................................................................................ 12

5.

STUDY THE NEAREST COMPETITORS ..................................................................................................... 13 NESTLE INDIA .................................................................................................................................................... 13 AMUL ................................................................................................................................................................ 14

6.

ANALYSING THE BRAND VIS--VIS COMPETITION ................................................................................. 15 COMPANIES & BRANDS .......................................................................................................................................... 15 EXPANDING THE TOTAL MARKET .............................................................................................................................. 16 DEFENDING MARKET SHARE ............................................................................................................................ 16 ADVERTISING WARFARE ......................................................................................................................................... 17 COMBATING WORM CONTROVERSY ................................................................................................................ 17

7. 8. 9.

SWOT ANALYSIS .................................................................................................................................... 19 SUGGESTIONS AND RECOMMENDATIONS ............................................................................................. 20 BIBLIOGRAPHY ...................................................................................................................................... 22

1. Outline of Chocolate Industry

History of Chocolate

Chocolate! The name brings memories of a sugary and scrumptious sweet in your mouth. Each and every person in the world, whatever is his age or sex, loves the delicious sin. In fact, chocolate is one of the most preferred gifts on every occasion, birthday or anniversary, Valentines Day or Christmas, wedding or farewell. Whether it is your wife or your boyfriend, your kids or your in-laws, you can present chocolates to almost everyone. While eating a chocolate, have you ever thought how it came into being? If you are ignorant about the origin of chocolate till date, use the interesting information on its background, given below. The oldest records related to chocolates date back to somewhere around 1500-2000 BC. The high rainfall, soaring temperatures and great humidity of Central American rain forests created the perfect climate for the cultivation of the Cacao Tree. During that time, the Mayan civilization used to flourish in that region. Mayan people worshipped Cacao Tree, believing it to be of divine origin. They also used to roasted and pounded seeds of the tree, with maize and Capsicum (Chilli) peppers, to brew a spicy, bitter sweet drink. The drink was consumed either in ceremonies or in the homes of the wealthy and religious elite. It is said that the word Cacao was corrupted by the early European explorers and turned into 'Cocoa'. Even the Aztecs, of Central Mexico, are believed to have acquired the beans through trade and/or the spoils of war. In fact, Cacao beans were considered to be so prized by Aztecs that they started using it as a type of currency. They also made a drink, similar to the one made by Mayans, and called it Xocolatl, the name which was later corrupted to 'Chocolat', by Spanish conquistadors. The further corruption of the word, which finally gave it its present form Chocolate, was done by the English.

Chocolate market in India: Cadbury entered into Indian market in the year 1948. Chocolate market is estimated to be around 1500crores growing at 18-20% per annum. The Dairy Milk brand alone accounts for approximately 33% of Cadbury's total chocolate blocks and bars sales, making it the number one confectionery brand in the market. The continued success of the Dairy Milk brand is testament to the quality of its brand management.
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2. BRIEF PROFILE OF THE COMPANY ALONG WITH ITS DIVISIONS

Cadbury Indias brief profile:Cadbury India Ltd, a subsidiary of Cadbury Schweppes Overseas Ltd is a leading global confectionery company with an outstanding portfolio of chocolate, gum and candy brands. The company manufactures and sells chocolate blocks, slabs, or bars; coated wafer biscuits; malted food; and sugar confectionery. Cadbury India Ltd was incorporated in the year 1948 as a private limited company with the name Cadbury Fry (India) Pvt Ltd. The company began their operations in India by importing chocolates. In the year 1950s, the company started the manufacture of Chocolate and Bournvita. Also, they launched Cadbury's Fruit & Nut. The company has manufacturing facilities at Thane and Induri in Maharashtra, Malanpur in Madhya Pradesh, Bangalore in Karnataka and Baddi in Himachal Pradesh and 4 sales offices at Mumbai, Kolkata, New Delhi, and Chennai. The corporate office is in Mumbai. The company operates in four categories namely, Chocolate Confectionery, Milk Food Drinks, Candy and Gum category. In the year 1960s, the company set up a Cocoa Research Centre in Kerala. In the year 1970s, the company commissioned the Malt Extract Plant at Induri in Maharashtra In the year 1990s, the company launched the Sugar Confectionery business with Trebor Googly. They launched Cadbury's Perk, Cadbury's Truffle and Picnic during this period. In the year 2002, the company increased the production of Malted Foods from 6,570 tonnes to 7,900 tonnes. In the year 2005, the company increased the production capacity of Malted Foods by 4,600 tonnes to 13,200 tonnes and Hard Boiled confectionery & Gums by 1,026 tonnes to 8,651 tonnes. In March 2008, the company launched Cadbury Lite for consumers with diabetes, which contains a sugar substitute called Maltilol that ensures a low glycemic index in the product. In May 2008, the company joined hands with Tamil Nadu Agricultural University for a research project to promote Cocoa cultivation in Tamilnadu. In October 2008, the company launched their dark chocolate Cadbury Bournville Fine Dark Chocolate in India, which is the fastest growing segment in the confectionary category.
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The chocolate is available in four different variants namely, Rich Cocoa, Almond, Hazelnut and Raisin & Nut. In February 2009, they launched Cadbury Bournvita Li'l Champs, their latest offerings for children. In 2009,the company set up a new manufacturing facility (Unit 2) at Baddi, Himachal Pradesh. Sales and Profit of Cadbury India (yearly) Dec '10 Dec '09 Dec '08 Dec '07 Dec '06 Dec '05

Net Sales

2,234.67

1,934.37

1,588.59

1,293.47

1,058.24

879.78

Reported Net Profit

229.83

188.63

165.78

117.65

68.81

45.95

Cadbury is mainly into three segments:Chocolates- out of total market size (volume) of 22500 tpa, Cadburys share has been 69.2 %, recorded a turnover of over US$ 37m in 2009. Sugar Confectionery out of the total market size (volume) of 163000 tpa, Cadbury enjoys 4 % market share in this category. Food drinks out of total market size (volume) of 73500 tpa, 14.2 % share has been rewarded to Cadbury in this segment. Contribution to turnover 2001 65% 10% 24% Contribution to turnover 2009 73% 9% 18%

Chocolate Sugar Confectionery Food Drinks

(Source: Company websites, News)

Chocolates (73% of turnover) For more than five decades now, Cadbury has enjoyed leadership position in the Indian chocolate market to the extent that 'Cadbury has become a generic name for chocolate products. Cadbury has leading brands in all the segments viz bars (Dairy Milk, Crackle, Temptations), count lines (5 star, Milk Treat). Cadbury Dairy Milk Cadbury Dairy Milk has been the market leader in the chocolate category for years. And has participated and been a part of every Indian's moments of happiness, joy and celebration. Today, Cadbury Dairy Milk alone holds 30% value share of the Indian chocolate market. 5 star Chocolate lovers for a quarter of a century have indulged their taste buds with a Cadbury 5 Star. A leading knight in the Cadbury portfolio and the second largest after Cadbury Dairy Milk with a market share of 14%, Cadbury 5 Star moves from strength to strength every year by increasing its user base. Eclairs and Toffees Eclairs and Toffees accounts for 18%. clairs was first discovered by a local confectionery firm in London, England in the 1960s. The firm then became part of Cadbury in 1971 making Cadbury clairs the second largest brand in the company. The experience of eating a Cadbury Dairy Milk clairs is truly unique because of its creamy caramel exterior and rich Cadbury Dairy Milk chocolate at the center. Boiled candy Boiled candy accounts for 18%. Gums andMints and lozenges Gums andMints and lozenges are at par and account for 13%. Bubbaloo, Cadburys bubble baby, took its first steps in the international confectionery market in the year 1984. With its launch in the Indian market in 2007, the definition of bubble gum underwent a juicy change! Digestive Candies Digestive Candies and Lollipops account for 2.0% share respectively.

SHARE
2.00% 13% 30%

Cadbury Dairy Milk 5 star Eclairs and Toffees boiled candy

18%

18%

14%

Gums andMints and lozenges Digestive Candies

Sugar Confectionery (9% of turnover) The Indian confectionery industry can be segmented into sugar-boiled confectionery, chocolates, mints and chewing gums. The confectionery market is highly fragmented with players having a strong regional presence. The annual per capita consumption of branded confectionery in India is estimated to be under 100 gms. The total market for sugar boiled confectionery (comprising plain/hard boiled candies, toffees, eclairs and gums) is estimated at EUR 1.15 bn of which the organised sector is around EUR 460 mn.(source:-kpmg). Cadbury has brands in Confectionery the segments like halls(candy), bubaloo(gum) Food Drinks (18% turnover) In the milk food drinks segment Cadbury's main product is Bournvita, the leading malted food drink in the country. Cadbury Bournvita is about arming children with Confidence to take on physical and mental challenges that nobody else can, resulting in one of the most successful advertising campaigns based on 'Real Achievers who grew up on Bournvita'.

3. SEGMENTATION AND POSITIONING

Segmentation

Market Segmentation It means divide the market into group of potential customers by looking at descriptive characteristics: Geographical, Demographic, Psychographic and Behavioral. Demographic Segmentation 1. Age and life cycle Based on age, dairy milk is targeted to Children (upto 18 years They are mostly crazy of chocolate having a sweet tooth) Youth (20-30years Consider giving dairy milk as a gift) Parents (above 30 Care for own children) Older age (above 50 Dairy milk as a light dessert after a heavy meal) 2. Gende

For purchasing Cadbury dairy milk gender does not matter. Cadbury dairy milk is targeted to all type of persons whether male or female. However, women indulge in impulse buying especially when it comes to chocolates. 3. Income

Cadbury dairy milk is priced reasonable and affordable, so a person does not need to think much before purchasing. They can easily buy it any time when they want to buy. From lower to middle class to elite class, everyone can afford it. Income of a person does not play a very important role.

4. Generation Cadbury dairy milk is targeted to all kinds of generation from younger to older people. All type of people like to purchase the Cadbury dairy milk when they want to buy it.

Geographic Segmentation

The product is highly focused in the Suburban and Urban regions. The consumption pattern, behavior and disposable income are limiting factors in the widespread consumption of dairy milk in rural markets.

Behavioral Segmentation

1. Occasion

Cadbury dairy milk is promoted as gift on special occasions. Like for example, the advertisements project that dairy milk can be gifted on special days like Mothers day, Diwali, Raksha Bandhan, Valentines Day and other occasions. This immensely helped to increase the product usage. 2. User status

There are mainly the regular users found in the user status of Cadbury dairy milk. It retains the regular users by offering a wide range of variants of the product and attractive packaging along with aggressive promotions. 3. User rate

The user rate is heavy in the behavioral segmentation of Cadbury dairy milk. 4. Loyalty status

The loyalty status of heavy users is mainly Hard core and sometimes consumers may exhibit Spilt loyalty status. 5. Attitude

There is an enthusiastic and positive type of attitude of buyers.

Positioning of Cadburys Dairy milk The Cadbury Dairy Milk was targeted The chocolate for the kid in all of us. The Communication that was used during this time was The Real Taste of Life. The message that was conveyed was that CDM is the perfect expression of spontaneous, happy, joyous feelings. The Positioning/Communication of Cadburys dairy milk was through: THE REAL TASTE OF INDIA

Real Taste of Life Campaign Promotions in the early 90s, chocolates were seen as meant for kids. In the Mid90's the category was re-defined by the very popular `Real Taste of Life campaign, shifting the focus from `just for kids' to the `kid in all of us'. It appealed to the child in every adult. And Cadbury Dairy Milk became the perfect expression of 'spontaneity' and 'shared good feelings'. The 'Real Taste of Life' campaign which people still fondly remember was that of a girl dancing on the cricket field which remained etched in everyone's memory, as the most spontaneous & un-inhibited expression of happiness. Khanewalon Ko Khane Ka Bahana Chahiye Campaign In the late 90's, to further expand the category, the focus shifted towards widening chocolate consumption amongst the masses, through the 'Khanewalon Ko Khane Ka Bahana Chahiye' campaign. That meant that people who want to have a chocolate can find any reason to have one and no particular occasion is required to wait for consuming the chocolates. This campaign showed that even the adults could have chocolates and this was showcased by showing collective and shared moments among themselves. This campaign took the previous ad campaign even further which showed that adults could go to any lengths to get their own bar of chocolate. Kuch Meetha Ho jaye After this campaign to capture more and more target segments Cadburys positioned itself with Kuch Meetha Ho jaye. The message was clear that when anytime you feel that you are happy and want to celebrate then you can have Cadburys Dairy Milk to celebrate the occasion. Amitabh Bachan was used as the celebrity endorser in this ad showcasing that these moments are meant to be celebrated and so go on and celebrate them with Cadburys Dairy Milk. Then the campaign using the line Pappu Paas Ho gaya became a street buzz and got huge success and in this campaign also Amitabh Bachan was used as the Brand Ambassador for the brand to spread the message that Jab Pappu paas ho jaye tho kuch meetha ho jaye.

5. MARKETING MIX

PRODUCT Cadbury Dairy Milk is a chocolate made out of cocoa, cocoa butter, powered or condensed milk, sugar, cream and flavoring agents. It contains more milk than any other chocolate bar. Cadbury Dairy Milk has several variants which include Fruit & Nut, Crackle, Roast Almond, Cadbury Dairy Milk Desserts, Cadbury Chunky, Cadbury Dairy Milk Wowie, Cadbury roasted almond, Cadbury Caramal and Cadbury Dairy Milk 2 in 1. It is available in various sizes 10.5g, 22g, 95g, 165g and other premium packs. It comes in various sizes and targets children, adults and the elderly as well. Over the years, packaging style has been changing. It basically uses a aluminum foil, purple plastic cover and the paper cover. All this ensures the product from physical damage or deterioration, improving efficiency and attracting consumers with attractive packaging.
Benefits

a) Cocoa contains high levels of naturally occurring compounds called flavanols and a range of other polyphenols that have been shown to reduce blood pressure helping to improve heart health. b) Contains many vitamins including B1, B2, and E as well as minerals including potassium, sodium, magnesium, phosphorus, zinc, copper and by far the most important, calcium, providing over 15% of the recommended daily requirement in a 49g bar of Cadbury's Dairy Milk. c) Eating chocolate triggers the release of endorphins, mood enhancing chemicals produced by the brain. These produce feelings of pleasure. PRICE It is an important element of the marketing mix. The price for a chocolate bar can determine whether a consumer will buy it or not. Strategy Cadbury dairy milk applies reasonable and affordable pricing strategy to charge the price compared to its competitors. Because it is the vision of Cadbury is that Cadbury is in every pocket. It charges lesser price from its competitors and provides better quality also. We can say it is used penetration strategy because have low prices as compare to its competitors and have long life cycle of the product.

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Given below is the price range of dairy milk:

WEIGHT (gm) 10.5 22 40 42 (Crackle) 95 80 (Fruit & Nut) 165

PRICE 5 10 20 25 50 55 90

PROMOTION Strong brands are very important in the chocolate confectionery market Almost 80% of chocolate purchases are made on impulse. The media mix for the campaign comprises TV, outdoor, Internet and radio. It uses emotional appeals in advertising.

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A few advertisements The Real Taste of Life with the girl dancing on the cricket field The message: Dairy Milk is for enjoyment

During late 90s Campaign: Khanewalon ko khane ka bahana chahiye Target: widening chocolate consumption among the masses.

More recently Campaign: Kuch metha ho jaye Target: to associate Cadbury with celebratory occasion. Campaign: Pappu pass ho gaya. Target: encourage those who have passed the exams to celebrate with Dairy Milk. Campaign: Miss Palampur Target: Focusing on the rural markets. Campaign: Aaj pahli tareek hai Target: To celebrate pay day / salary day.

PLACE The Corporate head office is located at Mumbai. In India, the company has 5 manufacturing facilities located at Thane, Induri (Pune), Malanpur (Gwalior), Bangalore and Baddi (Himachal Pradesh). The company has 4 sales offices located at New Delhi, Mumbai, Kolkata and Chennai. Distribution Cadburys dairy milk is sold directly to Wholesalers and Retailers. Its distribution network encompasses around 2100 distributors and 450,000 retailers. The placement strategy of Cadbury dairy milk is to sell the chocolate at every corner shop, super stores, bakery shops, petrol pumps including medical stores. Keeping this strategy in place, Cadburys dairy milk is available in every nook and corner.

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6. STUDY THE NEAREST COMPETITORS

The two nearest competitors of Cadbury Dairy milk are Nestle and Amul. NESTLE INDIA

Nestle India was promoted by Nestle Alimentana, Switzerland, a wholly owned subsidiary of Nestle Holdings Ltd., Nassau, Bahama Islands. Nestle is one of the oldest food MNC operating in India. It has a presence in 83 countries worldwide. The Swiss food giant has been in India for 90 years, with six manufacturing plants, 3500 employees and almost $500 million in sales in 2002. Nestle has a presence in the following categories - Baby Food, Milk products, Beverages (Coffee, malted beverage), Chocolates & confectionery and other processed food products. Nestle forayed into chocolates & confectionery in 1990 and has cornered a fourth share of the chocolate market in the country. Chocolates contribute 14% to Nestles turnover. It has expanded its products range to all segments of the market. In fact, Nestle is the fastest growing company in chocolates in India. Kit-Kat, one of worlds most popular chocolate, was launched in India in 1995. Within months of its launch, it fulfilled every target Nestle had set. Kit Kat has been able to define a new segment in the industry in the form of the wafer enrobed any time snack. Other brands include Milky Bar, Marbles, Crunch, Nestle Rich Dark, Bar-One, Munch etc. Nestle achieved roaring success by grabbing the Rs 5 price point. From Jan Sep 05, Nestle chocolates witnessed a growth of 14.8 per cent. To counter high temperature in summer, Nestle introduced an innovative liquid chocolate choco stick at a price tag of Rs. 2/- which was an instant hit. The Company sustained momentum during the year by driving distribution through innovative consumer promotions and trade offerings and supporting key price points. Nestle Munch, which is the largest selling unit in the wafer segment and the most widely distributed, continued to gain in volumes. Nestle Chotu Munch, which was launched at Rs. 2/- price point, was well received. A range of other innovative and renovated products were launched which included Nestle milk chocolate, Nestle fruit & nut, Nestle krunchy, Nestle milkybar starz, Nestle choo, Nestle chocolate eclairs, Nestle coffee eclairs and various flavours for chocostick. Nestle Munch has sojourned from Cant stop munching with Rani Mukherjee to Mera crunch mahaan with Boxing champ Vijendra Singh. The Nestle advertisement of KitKat break banta hai is quite popular, which recently showed dancing animated squirrel and in a separate ad during IPL cricket season, it featured top IPL stars.

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AMUL The Rs 2,748-crore AMUL is in chocolate segment since quite some time. However, with its milk chocolates, Badam Bar, Crunch and Fruit n Nut has a market share of about 5 % and the company did not look aggressive till recently. AMUL is involved in a large number of products, of which chocolates constitutes just 1-2 %. The company was not concentrating much on its chocolate business. Amul chocolates were not on companys focus. Due to lack of focus and with multinationals spending huge amounts on advertisements its market share has been falling. Interestingly, Kaira District Cooperative Milk Producers Ltd. (KDCMPL) - the manufacturer of Amul chocolate - is selling whatever it produces. Limited capacity is also a reason for the share it has. Though Amul chocolates have maintained a low profile, things have changed and for good. Amul is an important player in this growing chocolate industry. It has firmed up its measures with marketing and new product launches And revamping its packaging. Amul just recently launched new chocolate brands in the market - Rejoice, Kite Bite, Chocozoo and Nuts `bout You. Amuls memorable advertising campaign positioning it as a A Gift for Someone You Love, saw the sales graph rising. Amuls sales grew by 39% then. Amul benefitted during Cadburys worm controversy and in an attempt to boost sales, the company launched three new chocolates in Mumbai under the brands Fundoo, Bindaas and Almond Bar. While the first two were been priced at Rs 10 for a 30 gm stick, Almond Bar carried a price tag of Rs 10 for a 35 gm chocolate. Amul is strategized to capture a lion's share in the cooking chocolate segment by tapping the hitherto untouched sub-segments with the launch of its new brand Amul Chef in July 2003, making it the first ever branded cooking chocolate to be made available in the Indian market. The `premium' variant of the cooking chocolate was priced at Rs 110 for 500 grams and the `classic' variant was priced at Rs 100 for 500 grams. Amul targeted various segments with its new product and aimed to capture a market share of 20 per cent in the first two months in Delhi and Mumbai. Amul has decided to segment the market with brands catering to the `impulse and `teen segments, as well as having brands catering to different occasions. Amul, which reaches out to over five lakh retail outlets, has over 2,600 distributors under its
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fold. Amul has also drawn up plans to make its chocolate business a separate division of the Company.

7. ANALYSING THE BRAND Vis--Vis COMPETITION

Companies & Brands Cadbury - Cadbury Dairy Milk, 5 Star, Celebration, Gems, Perk Nestle - Kit Kat, Bar One, Milkybar, Munch Amul - Amul (Chocozoo, Chocomines) CDM has about 35 per cent share of the Indian chocolate market 5 Star has a market share of over 14% Kit Kat contributes 12% market share points to Nestle while Bar One chips in with 6% market share. Perk and Gems have seven per cent each. Cadbury Celebrations has 5 per cent, and Cadbury Bournville has about 1 per cent market share.

Chocolate Market in India

3% 2% 25% Cadbury 70% Nestle Amul Others

Cadbury and Nestle has been dominating the chocolate industry in India over the last few decades due to their deep penetration levels and strong customer base. Cadbury over the years has become synonymous with chocolates in the country. Be it the quality of the chocolate, the packaging, the marketing or the advertising Cadbury has been ruling the chocolate industry since quite a few decades now. But, staying the number-one firm calls for action
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Expanding the Total Market

New Customers - Up-ageing is the way by which Cadbury wants to grow the category. Adult chocolate consumption in India is very low. The famous Cadbury ad, 'kuchh khaas hai hum sabhi mein' aimed to do this. More Usage - Gifting with the Cadbury Celebrations portfolio has been another way of achieving the same task. Meetha chase (take market share from 'mithai', and hence, grow by eating into traditionally non-chocolate occasions) -- the communication right from Miss Palampur to Khane ke baad Kuchh Meetha ho jaye is strategically built to unlock this task.

DEFENDING MARKET SHARE

Position Defense
Cadburys made a strategic marketing decision to leverage the value of the Dairy Milk brand (i.e. optimize the market potential of the brand) by elevating it to a Megabrand or range brand. A Megabrand or range brand spans an entire range of products, creating, relationships with products which may have been previously unseen by customers. The rationale for a mega brand: 1. The Megabrand concept can help provide structure and unity to a strategy. 2. A Megabrand strategy can add visibility to products and provide greater credibility to consumers for a variety of offers under the brand. In addition, it is easier for consumer to try new offers from their trusted brand.

Counteroffensive Defense
Within months of Nestle Kit-Kats launch, Cadbury launched Perk in order to counter Kit Kat and safeguard the flagship brand Cadbury Dairy Milk. In 2002, when Nestle introduced Chocostick for Rs.2, as a rejoinder, Cadbury introduced Chocki at the same price. Today, both the players have got almost all of their products at low to high but similar price points. CIL also introduced a range of new, international pack formats a CDM for every need. It said that for chocoholics, there was CDM Chunky, while for Connoisseur, there was Bournville and Fruit & Nut.

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 Preemptive Defense Cadbury came up with variants of Dairy Milk like Wowie, Crackle, and Caramel etc. before its competitors could have reacted. Wowie especially had cartoon characters for attracting children. In addition, Cadbury has been quite proactive with changing Dairy Milks positioning, identifying and catering to consumers demands earliest than its competitors. Thus, Cadbury adopts a more aggressive maneuver to attack before the enemy starts its offense. Advertising Warfare In 2009, Cadbury came up with an ad campaign titled Aaj Pehli Tarikh Hai. The agency that wrote this ad (O&M) chose the theme of Pehli Taarik because pay day invokes feelings that are celebratory in nature and it should be celebrated with Cadburys chocolates. Soon after this, an ad for Nestls Munch aired on TV with the tagline Sirf Pehli Tarikh Ko Nahin, Kabhi Bi Kha Sakte Hain. This was a spoof of the Cadbury ad, but Cadbury refused to react to it through another advertisement. Instead, the national creative director of O&M told the press that this was clearly an instance of how some companies try to attract attention by riding on the market leaders advertising. He also added, In principle, this is not wrong. But one should be able to pull off a spoof like this with finesse and style. In my opinion, Nestls ad did not succeed.

COMBATING WORM CONTROVERSY

On October 3, the Food and Drug Administration Commissioner received complaints about infestation in two bars of Cadbury Dairy Milk., ordered enquiry and went directly to media. The companys reputation and credibility was under intense scrutiny. Sales volumes came down drastically in the first 10 weeks. A focused and intense communications program was implemented over the next six months to rebuild credibility and restore confidence among the key stakeholders. This was done through setting up media desk to address every question with key messages like Infestation is storage linked problem, releasing press ads, posters and leaflets to help them share Cadbury point-of-view with their customers. Cadbury started Project Vishwas (Trust), which entailed- A retail monitoring and education program undertaken on a war footing to address storage problems and Significant packaging changes, new purity sealed packaging, to reduce dependency on storage conditions as much as possible was launched within two months. Cadbury brought in Amitabh Bachchan, as a brand ambassador to reinforce the credibility that the company had demonstrated through its actions. The announcement of the
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new pack was done through a testimonial advertisement on TV called Sincerity. As a result, Sales volumes climbed back almost to the pre-incident levels by week, within 8 weeks of introduction of new packaging and communication. There was significant upward movement in ratings amongst consumers on parameters like company image, responsiveness of company and behavioral parameters. Cadbury Dairy Milk in relation to Competition

Stronger brands in Chocolates Defining Chocolate taste Dominant Chocolate market shares First mover advantage Established distribution network. Aggressive market development Only one player (Nestle) who competes across all categories. Concentrated advertising campaign to ensure positioning and recall.

Competition with respect to 4Ps Product: People remember most Cadburys chocolate products, but not many realize that products like Bar One is a Nestle product because for Nestle there is no over-arching brand identity and its chocolate category communication requires rethinking. Price: It may be a different ball game altogether once prices cross Rs.30 mark, but within that range, certainly, Nestle must be a little more accommodative like Cadbury, which has very convenient prices for all its products below Rs.30. Place: Both Cadbury and Nestle enjoy a well-knit distribution network which falls in place for them all the time. But while Cadbury chocolates have a tropicalized formulation, Nestle loses out on that bit and thus becomes difficult to distribute stock and store. Promotion: Though, the Kit Kat squirrel commercial, is a refreshing innovation but the ad doesnt seem to look like a part of a long term strategy. Marketing campaigns for Munch have also not been that great of late. On the other hand, Cadburys advertising includes a larger brand idea, their advertising is based on consumer insights and it is drawn heavily from Indian culture. Cadbury spends maximum on advertisements in chocolate confectionary industry.
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8. SWOT ANALYSIS
Strength

Dairy Milk is associated with Cadbury which is a globally established brand name known for its manufacturing competency and leadership in innovation. Cadbury Dairy Milk has been able to establish a clear & consistent Brand Image over the years through quality product offerings, careful yet innovative product additions to the brand as well as a well crafted communication campaign. Dairy Milk commands a great reach to consumers through an extensive distribution network spanning across India. Dairy Milk has also been able to create clear connections of its brand elements with it over the years. One may safely say that Brand Elements associated with Cadbury Dairy Milk occupy a unique position in customers mind. Strong Brand positioning and concentrated advertising campaign The presence of Dairy Milk in form of multiple variants (Crackle, Silk, Shots etc) ensures that the brand is present across all related product categories. Dairy Milk also enjoys a great recall value (inferred from the Brand Survey) when comes to milk chocolates. This recall value is not just limited to kids but also to people belonging to middle aged groups, proving that this chocolate is not just seen as a product offering for kids.

Weakness

Apart from India, the brand has traditionally been strong in Europe. Lack of experience in tackling emerging markets is a major weakness of Cadbury & this also shows in the brand Dairy Milk. The recent acquisition of Cadbury by Kraft Foods Inc. may result in Dairy Milk getting side-lined as a brand. Quality deterioration

Opportunities

Sugar Free category is a major opportunity for Cadbury Dairy Milk.

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The Dairy Milk brand may also try innovating in taste by introducing more international flavors Better product packaging and preservation

Threats

Increasing competition from international front is one of the biggest threats to Cadbury Dairy Milk. The highly price sensitive nature of the industry is also a threat for the Dairy Milk brand. Rapid innovation and introduction of a variety of chocolates in the market also increases the consumer propensity to switch. This is a threat to Cadbury Dairy Milk

9. SUGGESTIONS AND RECOMMENDATIONS

Cadbury can work on Marketing mix in the following aspects: Product Instead of the same flavor of Cadbury Dairy Milk, they can introduce variety by bringing a white chocolate of dairy milk. Also in packaging aspect, instead of having the monotonous purple color, they can introduce various colored packs to attract kids. Cadbury should seriously consider focusing on the energy/ health bar segment for the Indian market. It should also innovate to cater to the calorie conscious. Cadbury dairy milk can get over the boring old rectangular slabs of cocoa and can come up with new, innovative and attractive shapes of the chocolate bar. For festivals like Christmas Dairy milk can introduce special chocolates like rum and champagne flavored chocolates.

Promotion Can introduce sales promotion schemes like giving tattoos like big babbol, cartoon stickers, paper masks of cartoons, pranky etc.

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 Place

Advertisement can be done with the help of animations that attracts more and more kids and teenagers because chocolate is consumed largely in this segment. They can also consider coming up with their exclusive Chocolate Boutiques.

Can increase the availability of the product by selling it in popular bookstores, music stores and apparel outlets, small end theatres, amusement parks, CCDs etc. By introducing chocolate carts (similar to traditional bicycle ice cream carts) near schools and colleges.

Price Consumption of chocolate in Indian market is skewed toward the urban market. More than 70 to 80% of the chocolate is sold in urban and semi urban areas. By reducing both price and quantity, for example, dairy milk chocolate bars for Rs 1/- , 2/- can be introduced. By introducing various price points in this way, Cadbury dairy milk can foray into the rural market. In addition they can come up with incentive schemes, like Nestle Maha munch gives more quantity for the same price.

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10.BIBLIOGRAPHY
http://mbamarketingproject.blogspot.com/2010/05/cadbury-project.html http://www.scribd.com/doc/48052267/Chocolate-Market-in-India http://www.slideshare.net/hemanthcrpatna/a-marketing-project-report-on-nestle-vs-cadbury http://www.slideshare.net/hemanthcrpatna/a-project-report-on-analysis-of-cadbury-chocolatein-the-market-with-its-competitors http://www.slideshare.net/nimishakul/branding-with-cadbury-presentation http://www.business2000.ie/pdf/pdf_8/cadbury_8th_ed.pdf http://basicmarketingfundas4u.blogspot.com/2010/11/cadbury-india-very-successful-storyof.html http://www.scribd.com/doc/41504728/Cadbury-s-Dairy-Milk http://www.scribd.com/doc/45686637/Final-Cadbury http://lifestyle.iloveindia.com/lounge/history-of-chocolate-1723.html http://www.slideshare.net/emilyhales123/dairy-milk-advert-research-and-developing-idea

http://www.slideshare.net/RayM2/cadburys-dairy-milk-chocolate http://www.oppapers.com/search_results.php?action=search&query=cadbury+dairy+milk http://www.slideshare.net/hemanthcrpatna/a-marketing-project-report-on-nestle-vs-cadbury http://www.slideshare.net/hemanthcrpatna/a-dissertation-report-on-indian-chocolate-industry http://www.scribd.com/doc/29413829/How-Cadbury-Dairy-Milk-Came-About http://collaboration.cadbury.com/allaboutus/ourbrands/featurebrands/Pages/CadburyDairyMil k2.aspx

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