A Case Study on Cadbury Dairy Milk In India

By:

Chirag Punani Bhavya Arora

Cadbury India
Cadbury India Ltd. is a part of Mondelz International. Cadbury India operates in five categories Chocolate confectionery, Beverages, Biscuits, Gum and Candy. In the Chocolate Confectionery business, Cadbury has maintained its undisputed leadership over the years. Some of the key brands are Cadbury Dairy Milk, Bournvita, 5 Star, Perk, Bournville, Celebrations, Gems, Halls, clairs, Bubbaloo, Tang and Oreo. Our core purpose "make today delicious" captures the spirit of what we are trying to achieve as a business.

HISTORY OF CHOCLATE
The origins of chocolate can be traced back to the ancient Maya and Aztec Civilization in Central America, who first enjoyed 'chocolat' a much-prized spicy drink made from roasted cocoa beans. Throughout its history, whether as cocoa or drinking chocolate beverage or confectionery treat, chocolate has been a much sought after food. Because cocoa beans were valuable, they were given as gifts on occasions such as a child coming of age and at religious ceremonies. Merchants often traded cocoa beans for other commodities such as cloth, jade and ceremonial feathers.

CADBURY DAIRY MILK

About Cadbury Dairy Milk

Dairy Milk is a brand of milk chocolate currently manufactured by Cadbury; except in the United States where it is made by The Hershey Company. It was introduced in the United Kingdom in 1905 and now consists of a number of products. Every product in the Dairy Milk line is made with exclusively milk chocolate. Cadbury Dairy Milk (CDM) entered the Indian market in 1948, and since then for consumers across India, the word Cadbury has become synonymous with chocolate. CDM remains at the top of the Indian chocolate market not only because of its most delicious, best tasting chocolate but also because of its memorable communication.

History of Dairy Milk

In June 1905, Cadbury made its first Dairy Milk bar, with a higher proportion of milk than previous chocolate bars, and it became the company's best selling product by 1913. George Cadbury Junior, responsible for the development of the bar, has said "All sorts of names were suggested: Highland Milk, Jersey and Dairy Maid. But when a customers daughter suggested Dairy Milk, the name stuck.. Fruit and Nut was introduced as part of the Dairy Milk line in 1928, soon followed by Whole Nut in 1933. By this point, Cadbury's was the brand leader in the United Kingdom. In 1928, Cadbury's introduced the "glass and a half" slogan to accompany the Dairy Milk bar, to advertise the bar's higher milk content. In September 2012, Cadbury made the decision to change the shape of the bar chunks to a more circular shape to keep the bar current. The bar had not seen such a significant change in shape since 1905.

Production

Many of the newer Dairy Milk varieties are now manufactured in the Republic of Ireland, France and Poland. Aficionados complain that the product no longer tastes as good and has lost its creamy texture. Dairy Milk itself is also manufactured in France and these products are sold in the UK. Several reformulated versions are sold in the United States as the U.S. Food and Drug Administration does not allow products that replace cocoa butter with vegetable fat to be called chocolate. In Australia, Cadbury Dairy Milk was reformulated in 2006 and again in 2009, with the addition of palm oil as a replacement for some cocoa butter. This occurred in conjunction with a weight reduction of the standard block from 250g to 200g. There has been some outcry over the reduction in block size while the price stayed the same, although Cadbury states that the wholesale cost per gram should be the same and the retailers may not have adjusted their prices. In August 2009, Cadbury announced it would return to a Cocoa Butter only formula due to a poor response from consumers.

Products of Dairy Milk

DAIRY MILK SHOTS

With a large section of Indians still choosing traditional sweets (Mithai) over chocolates, an offering was required that would seed chocolate consumption amongst non-users and help increase consumption frequency amongst fringe chocolate users. Also, even at its lowest price point, Cadbury chocolate was still inaccessible to majority of the rural population. Therefore, in an effort to upgrade the Candy and Mithai eating consumers to chocolate, Cadbury launched CDM Shots in 2008. An innovative format of sugar coated chocolate made to withstand the rural temperature fluctuations. Positioned as chocolate laddoo and priced at Rs. 2 for 2 pieces, the attempt was to introduce the product to consumers as the perfect value-for-money accompaniment for their small celebratory occasions.

Cadbury Dairy Milk Silk

Cadbury Dairy Milk has captured the heart of Indian consumers for over six decades; but there was room for a more premium entrant in the category. And enter CDM Silk. Most CDM lovers thought that nothing could taste better, but CDM Silk came as a welcome surprise! It is creamier, smoother, and tastier. Its dome shaped cubes pack more chocolate and hence provide a superior eat experience. Launched in January 2010, with a tantalizing taste that tempts the taste buds, CDM Silk delivered an exquisite chocolate eating experience in the Indian market.

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