MM Presentation 2003

7/31/2019 MM Presentation 2003

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FAILED PRODUCT IN INDIAN MARKET

Presented By :

Ankita SaxenaPushplaxmi ShettiyarKirti Shinde

Shweta MalviyaShenal MuleyVandana TeotiaSuraja Palekar

SKN SINHGAD SCHOOL OF BUSINESS MANAGEMENT



Indians felt that this chocolate had too many textures and too many flavours,none of which really made a coherent experience. Indians are very particularabout tastes and may not have taken the product taste too well. Picnic was re-

launched with a changed composition in smaller packs in the year 1999 – 26gm pack priced at Rs. 10 and 43-gm pack priced atRs.15.Picnic is shaped in avery rough manner and can rightly be called ugly looking. Nothing agreeswith this better than the slogan for this particular product "Deliciously Ugly".The bars are lumpy in shape and may not have been liked by the Indianconsumer.

1998 was a time when India was not really open to such a product. Targeted atmales of 18-29 at time when a third of population was below 15 years of age in2000 points that timing was not correct.Picnic was “wrong product in wrong time at wrong place” destined to fail !!



CADBURY PICNIC: AN APPEAL TO THE FIVESENSES

The Packaging • The packaging is purple. • The word „Picnic‟ covers most of the front and also it depictspeanuts and raisins.

• The packaging informs you in gold writing that it‟s „Packed withPeanuts and Raisins‟. • Turning the bar over, the – nutritional information, barcode, bestbefore date, weight, ingredients and contact information can be seen.

Appearance upon Opening • Cadbury PICNIC is around five inches long and it appears to bepacked with SOMETHING. There are large bumps all over the uppersurface of the rounded bar.• The chocolate is brown coloured milk chocolate.



The Smell• The smell of the chocolate lacks the appealing smell associated with

other chocolates.

The Taste• Cadbury PICNIC is crunchy

(at the top teeth) and chewy (bottom)(due to the cereal and nuts for thecrunch, and the caramel and raisinsfor the chew).• The peanuts are not a dominating flavour in the Picnic unlike in

Snickers; in fact, the raisins have a stronger flavour. The cereals are themost noticeable crunch texture, and the caramel makes the bar chewy.• The flavour is difficult to describe, perhaps because there were somany different flavours and textures presenting in one bar. Theflavours bind together, providing a very appealing taste sensation.



Advertisement

Advertisement 3Part2Advertisement 3 is aninnovative advertisement,in which the 1st page

would be part 1and it willopen out to part 2 of theadvertisement. Cadbury‟s“Pappu Pass HoGaya”was a Hit campaignand trying to leverage thatsame Advertisement“Pappu PahalwanbanGaya” campaign could belaunched.



RECOMMENDATION

REASONS FOR FAILURE

Physical appearance• Its irregular shape did not appeal to the customers.•

Varying quantity of peanuts and raisins in each PICNIC bar resultinginto low standardization.• Due to irregular mould of the chocolate opening and eating it was aproblem.

Packaging • In the packaging the letter PICNIC was so large that it covered most ofthe front side which was unlikely the Cadbury way to brand.



• This resulted in poor brand association with the customers.• Also the name Cadbury could not be clearly and easily seen.•

The word picnic was surrounded by what looked like a jam spoilageor maybe blood giving a negative impact about the product to thecustomers.

Pricing • The PICNIC bar was priced at Rs.10 whereas its competitor Nestlesold Munch for Rs.5 and used aggressive marketing.

Inconsistent taste

• Due to inconsistent proportion of raisins and peanuts taste variedfrom each picnic bar to bar.• Also due to this the chocolate could not meet the taste requirement ofsome customers resulting in unsatisfied customers.



• Also peanuts and raisins were not properly fried resulting in varyingtaste.

• Improper communication about the value proposition to the targetaudience

• Cadbury PICNIC chocolate was not properly promoted by the

company since it was not its flagship product.

• Also lack of association with brand ambassador when compared to itscompetitors resulted into low sales.

• Also the promotional campaign positioned it as an alternate to fulldiet which is contrary to the mindset of an Indian customer.



PROPOSED RE-LAUNCH OF PICNIC

Rationale behind the re-Launch• Considering the currentcompetitive market and intense competitionCadbury can no longer rely on its flagship product even though it faces lowcompetition in the market.

• By re-launching Cadbury PICNIC chocolate as an energy bar the productportfolio should be expanded which can prove to be a flanking strategy forCadbury.• Considering the average age composition of the Indian population which lies

around 25-30 Cadbury PICNIC chocolate if launched as energy bar on themove it can have a huge target segment.



• Also the company has a state of art manufacturing unit for theproductionof Cadbury PICNIC bar which can be used

without causing additional cash outflowIn infrastructure development• Cadbury PICNIC chocolate being rich with peanuts and raisins should be re-launched sinceit can fulfill energy needs in a tasty way

and its nutritional facts can be highlighted for this purpose.• Cadbury can use the re-launchto make competitors re-strategizealso it can have the first mover advantage.• There is avery low competition in the market for an energy bar at an affordable price.So, Cadbury being the market leader in Indian chocolate industry with deepfinancial backing, advanced technology, extensive distribution network and atrusted name can easily cover the gap.



STP ANALYSIS

Segmentation

• Cadbury‟s „Picnic‟ is a mass market product. This confirms that alldemographic segments & geographic segments have the potential.

• Customers for chocolate can be distinctly identified by their behaviourpatterns(perceived benefit of the product). Thus, behavioural segmentation

is adopted as the basis of segmentation.

• The market is segmented as per the benefit sought by the consumers.

• The market can be divided into customers looking for – Fun & Relishing,Filling, Instant Energy, Socializing.



Targeting

• The target chosen for re-launching this product are the consumerslooking for Instant energy amidst their fast-paced life.

• Cadbury Picnic scoring high on nutritional facts and has energygiving ingredients like peanuts, raisins it can initially target fromteenagers to working class people.

• These would involve school-going children during their lunchbreaks, college students, working people under stress during theoffice hours.

Positioning

• We propose to position Cadbury Picnic Bar as “TOTAL ENERGYREPLENISHERON THE MOVE” as a meal between the meals.



MARKETING MIX:

Product :

• Cadbury PICNIC should be showcased as an Instant Tasty Energy Bar forall those who have the need for energy replenishment on the run.

• Cadbury Picnic should have a proper mould which would give all thePicnic Bars a uniform shape and size making it much more acceptable.

• The Picnic Bars should also have a prefixed amount of peanuts and raisinswhich will make the taste of the Picnic bar uniform and also the calories ineach bar at the same quantity.

Place :

• Cadbury PICNIC should make full utilization of the highly efficientdistribution network.

• To make sure that Cadbury Picnic taps the full potential market.



• One more strategy that Cadbury Picnic should use is a higher or an increase in the trade discount should be given.

• Also Cadbury Picnic has to concentrate more on the

Tier I and Tier II cities where the people would actually like a chocolateenergy bar to fulfill their energy needs.

Price :

• The price of the energy bar should be around 10 Rs. per bar which would

not only be the same as that of the older price but will also be incorrespondence to the similar products available in the market today.

Promotion :

• Cadbury Picnic has to go for an aggressive promotion and marketingcampaign.

• The traders should be motivated to gain maximum shelf space for PICNICleading to more visibility.



• Selection of a brand ambassador for the bar who should be such that

there is an easy association for the ambassador and the energy barPicnic. Brand Ambassador like Akshay Kumar should be roped in ashe is considered a Man with of lot energy and has a good popularityamong the Indian Masses.

• Heavy display of the Cadbury Picnic bar at Public Places by the useof banners, billboards, dazzlers and kiosks.

• Sponsoring of certain sports and other energy sapping events shouldbe done in such away that would help in gaining a good presence inthe consumers mind.

•Also advertisements should be displayed or telecasted during theprimetime in order to get the maximum viewership.



SWOT ANALYSIS OF CADBURYS

Strength

1. Cadbury is a company, which is reputed internationally as thetopmost chocolate provider in the world.

2. The brand is well known to people & they can easily identify it fromothers.

3. Cadbury the world leaders in chocolate, is a well-known force in

marketing and distribution.4. Users have a positive perception about the qualities of the brand.5. Cadbury main strength is Dairy milk. Dairy milk is the most

consumed chocolate in India.6. By using popular models like Cyrus Brocha, Preety Zinta and others

Cadburys has managed to portray a young and sporty image, which

has resulted in converting buyers of other brands to become itsstaunch loyalists.

7. Cadbury has well adjusted itself to Indian custom.8. It has properly repositioned itself in India whenever required i.e.

fromchildren to adults, togetherness bar to energizing bar for young ones

etc.



Weaknesses

1. There is lack of penetration in the rural market where people tend todismiss it as a high end product. It is mainly found in urban and semi-

urban areas.2. It has been relatively high priced brand, which is turning the price

conscious customer away.3. People avoid having their chocolate thinking about the egg ingredients.

Opportunities

1. The chocolate market has seen one of the greatest increases in the recenttimes(almost @ 30%)

2. There is a lot of potential for growth and a huge population who do noteat chocolate seven today that can be converted as new users.

Threat

1. There exists no brand loyalty in the chocolate market and consumersfrequently shift their brands.

2. New brands are coming and existing brands are introducing new variants

to add upto an already overcrowded market.



Re-launch strategy of Cadbury’s Picnic



The Indian Chocolate Industry is a unique mix with extreme consumptionpatterns, attitudes, beliefs, income level and spending. At one hand, we have

designer chocolates that are consumed when priced at even Rs 2500/kg whilethere are places in India where people have never even tasted chocolates once.Understanding the consumer demands and maintaining the quality will beessential. Companies will have to keep themselves abreast with thedevelopments in other parts of the world. PRICING is the key for companiesto make their product reach consumers‟ pockets. Right pricing will make or

break the product SUCCESS. Economical distribution of the products will alsobe equally important. The companies‟ strategies should focus on driving salesthrough a right product mix, efficient materials procurement, reducedwastages, increased factory efficiencies and improved supply chainmanagement. There‟s an immense scope for growth of chocolate industry inIndia - geographically as well as in the product offering. The Indian ChocolateIndustry is destined to grow and will do so.

CONCLUSION



THANK YOU

MM Presentation 2003

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