Cadbury's Analysis (1)

3
Industry Analysis: The Confectionery Industry in India is divided into following sub-categories: 1. Chocolates 2. Hard-boiled Candies 3. Eclairs & toffee 4. Lollipops 5. Bubble Gum 6. Mints & lozenges The total confectionary market in India is valued at about Rs. 4,500 crore, out of which the chocolate sub-category is valued at about Rs. 2,000 crore. In the sub-category of chocolates about 71 per cent market belongs to Cadbury; CDM has about 35 per cent share of the Indian chocolate market. Cadbury 5-Star has about 14 per cent; while Perk and Gems have seven per cent each. Cadbury Celebrations has 5 per cent, and Cadbury Bournville has about 1 per cent market share. Nestlé with its brands, Munch, KitKat, Bar One and Milkybar, has about 25 per cent. The rest includes players such as Amul and others.(as of Aug 2010) Though CDM is the generic name for the chocolates in India, it doesn’t reflect in the substantial market share. The poor brand recognition, in the chocolate category, is ruing the market share of CDM. Shockingly, still about 80-90% of the consumers ask for chocolate or candies at the retailer’s shop without mentioning any brand name. And they accept any brand given by retailer without any hesitation; rather they don’t recognize the brand. Secondly almost 80% purch ases in the confectionary category are impulse purchase. These are the t wo reasons why Cadbury & other players are spending a lot on the brand campaigns. The key to success, in terms of market share, lies in the branding & distribution. Till you are not kn own to the consumer, you should try to be ‘the chocolate’ handed over by the retailer to the unaware consumer. One can’t totally avoid the impulse purchase but one can reduce it. Cadbury is successfully doing it by providing consumers with the ample reasons to buy its products. Be it “Pehli tarikh” or Diwali. In the chocolate business it is very difficult to differentiate your product. Firstly because of very less tangible benefits attached with the chocolate. And secondly it is low involvement product leaving very less place to play on intangible benefits

Transcript of Cadbury's Analysis (1)

Page 1: Cadbury's Analysis (1)

8/3/2019 Cadbury's Analysis (1)

http://slidepdf.com/reader/full/cadburys-analysis-1 1/3

Industry Analysis:

The Confectionery Industry in India is divided into following sub-categories:

1.  Chocolates

2.  Hard-boiled Candies

3.  Eclairs & toffee

4.  Lollipops

5.  Bubble Gum

6.  Mints & lozenges

The total confectionary market in India is valued at about Rs. 4,500 crore, out of which the chocolate

sub-category is valued at about Rs. 2,000 crore. In the sub-category of chocolates about 71 per cent

market belongs to Cadbury; CDM has about 35 per cent share of the Indian chocolate market. Cadbury

5-Star has about 14 per cent; while Perk and Gems have seven per cent each. Cadbury Celebrations has

5 per cent, and Cadbury Bournville has about 1 per cent market share. Nestlé with its brands, Munch,

KitKat, Bar One and Milkybar, has about 25 per cent. The rest includes players such as Amul and

others.(as of Aug 2010)

Though CDM is the generic name for the chocolates in India, it doesn’t reflect in the substantial marketshare. The poor brand recognition, in the chocolate category, is ruing the market share of CDM.

Shockingly, still about 80-90% of the consumers ask for chocolate or candies at the retailer’s shop

without mentioning any brand name. And they accept any brand given by retailer without any

hesitation; rather they don’t recognize the brand. Secondly almost 80% purchases in the confectionary

category are impulse purchase. These are the two reasons why Cadbury & other players are spending a

lot on the brand campaigns.

The key to success, in terms of market share, lies in the branding & distribution. Till you are not known

to the consumer, you should try to be ‘the chocolate’ handed over by the retailer to the unaware

consumer. One can’t totally avoid the impulse purchase but one can reduce it. Cadbury is successfully

doing it by providing consumers with the ample reasons to buy its products. Be it “Pehli tarikh” or

Diwali.

In the chocolate business it is very difficult to differentiate your product. Firstly because of very less

tangible benefits attached with the chocolate. And secondly it is low involvement product leaving very

less place to play on intangible benefits

Page 2: Cadbury's Analysis (1)

8/3/2019 Cadbury's Analysis (1)

http://slidepdf.com/reader/full/cadburys-analysis-1 2/3

CDM has identified the wants of Indian consumer. It started by encouraging people to celebrate the

small joys of life with CDM. And now it is encouraging people to anticipate the occurrence of something

good after consuming the CDM. Right from the celebration of pay day to the festival celebration CDM

has captured every moment of joy in the life of Indian consumer.

An insight from analyzing the ads are as follows :

CDM is targeting the start of good things and Nestle’s Kitkat is targeting the break in the good things and

again CDM is there to celebrate the end of good things with you.

Cadbury Dairy Milk has launched its new ad campaign under the broad umbrella of 'Kuch Meetha Ho

Jaye'. The umbrella, initiated six years ago, has rolled out several sub-campaigns over the years - each

with a separate message.

What started off as a message that encouraged people to celebrate the small joys of life ('Dil Ko Jab

Khushi Chhoo Jaye, Kuch Meetha Ho Jaye') and moved on to the celebrating overt occasions ('Pappu

Pass Ho Gaya') has, for the past four years, been about occasion-led celebration. The latest campaign,Shubh Aarambh, is a tad different.

Cadbury’s Shubh Aarambh Analysis: 

Though the core target group, consumers in the age group of 15-35 years, has been retained from the

previous campaign ('Aaj Pehli Tareekh Hain') that was launched about a year ago, Shubh Aarambh is

driven by an effort to refresh the take on 'Kuch Meetha Ho Jaye'. Specifically, there is a shift from the

notion of celebrating happy occasions with chocolate to the concept of anticipating the occurrence of 

something good after consuming the chocolate.

Maintaining the universal appeal of the brand, the campaign is aimed at consumers across SECs and is

supposed to have a balanced appeal across all tiers.

The media mix for this campaign includes television, radio, digital, outdoor and print. The campaign also

includes significant point of purchase (POP) activities.

In the digital space, the brand plans to tie up with marriage and job portals; and also intends to tie up

with Indian Railways for branding on tickets. This is an effort to merge the concept of a happy start -

Shubh Aarambh - with relevant occasions such as marriage, a new job and the onset of a purposeful

 journey.

The brand has also tied up with the popular TV show, Kaun Banega Crorepati (KBC) and is the key

sponsor for it.

The creative duties for the campaign lie with Ogilvy India. The creative brief was to deliver the culture of 

sweet consumption - that leads to auspicious beginnings - in a manner that is not traditional.

Shot in Pondicherry, the Bus Stop TVC, which is currently on air, is the first of at least three which form a

part of the Shubh Aarambh campaign.

Page 3: Cadbury's Analysis (1)

8/3/2019 Cadbury's Analysis (1)

http://slidepdf.com/reader/full/cadburys-analysis-1 3/3

In the TVC, the conventional practice of eating something sweet prior to executing a good deed has

been merged into the modern context - with a contemporary twist. The commercial opens with a scene

at a local bus stop, where a teenage girl is devouring a Cadbury Dairy Milk while waiting for the bus. A

humble looking, equally young boy asks her for a bite.

When she refuses, attributing her behaviour to the fact that he is a mere stranger, he goes on to explainhow his mother advocates sweet consumption before doing something noble. Drawn into this

explanation, the girl obliges and hands him a piece of her chocolate.

Curiosity gets the better of her and she asks him what the good deed is, to which he replies that he is

about to drop her home. The scene closes on two blushing teenagers.

Though this TVC seems extremely youth centric, the rest of the campaign adequately covers other

interesting occasions, not necessarily involving such young individuals.

The TVC is a good start to the campaign and a chocolate brand should try any harder than this.

For the past six years, Cadbury has managed to execute its strategy perfectly and has gradually included

a plethora of occasions for the consumption of its product. The brand's task of promoting chocolate as

something sweet that's eaten while celebrating has been established already and the current shift from

its previous campaign - Pehli Tareekh - to this one is great.

The simplicity of the ad, the direction and the casting, particularly the 'ordinary', non-glossy look of the

teenagers in the film is desirable.