1

INTRODUCTION

What Is A Product?

A good, idea, method, information, object or service created as a result of

a process and serves a need or satisfies a want. It has

a combination of tangible and intangible attributes (benefits, features, functions, 

uses) that a seller offers a buyer for purchase. For example a seller of a

toothbrush not only offers the physical product but also the idea that

the consumer will be improving the health of their teeth.

A commercially distributed good that is

(1) tangible personal property,

(2) output or result of a fabrication, manufacturing, or production process, and

(3) passes through a distribution channel before being consumed or used.

A good or service that most closely meets the requirements of a

particular market and yields enough profit to justify its continued existence.

As long as cars are manufactured, companies such as Michelin

that produce tires fill the market need and continue to be profitable.

In marketing, a product is anything that can be offered to a market that might

satisfy a want or need. In retailing, products are called merchandise. In

manufacturing, products are bought as raw materials and sold as finished goods.

Commodities are usually raw materials such as metals and agricultural products,

but a commodity can also be anything widely available in the open market. In

project management, products are the formal definition of the project

deliverables that make up or contribute to delivering the objectives of the

project. In insurance, the policies are considered products offered for sale by the

insurance company that created the contract.

2

In economics and commerce, products belong to a broader category of goods.

The economic meaning of product was first used by political economist Adam

Smith.

A related concept is that of a sub product, a secondary but useful result of a

production process.

Dangerous products, particularly physical ones,that cause injuries to consumers

or bystanders may be subject to product liability.

PRODUCT CLASSIFICATION

A product can be classified as building materials or intangible. A tangible

product is a physical object that can be perceived by touch such as a building,

vehicle, gadget, or clothing. An intangible product is a product that can only be

perceived indirectly such as an insurance policy.

Services can be broadly classified under intangible products which can be

durable or non durable. Services need high quality control, precision and

adaptability. The main factor about services as a type of product is that it will

not be uniform and will vary according to who is performing, where it is

performed and on whom/what it is being performed.

3

NEW PRODUCT DEVELOPMENT STRATEGY

With a well-considered new product development (NPD) strategy, you can

avoid wasting time, money and business resources. An NPD strategy will help

you organise your product planning and research, capture your customers' views

and expectations, and accurately plan and resource your NPD project. Your

strategy will also help you avoid:

overestimating and misreading your target market

launching a poorly designed product, or a product that doesn't meet the needs

of your target customers

incorrectly pricing products

spending resources you don't have on higher-than-anticipated development

costs

exposing your business to risks and threats from unexpected competition.

There are several important steps you will need to plan into your NPD strategy.

Define your product

An accurate description of the product you are planning will help keep you and

your team focused and avoid NPD pitfalls such as developing too many

products at once, or running out of resources to develop the product.

Identify market needs

Successful NPD requires a thorough knowledge of your target market and its

needs and wants. A targeted, strategic and purposeful approach to NPD will

ensure your products fit your market. Ask yourself:

What is the target market for the product I am proposing?

What does that market need?

What is the benefit of my proposed new product?

4

What are the market's frustrations of existing products of its type?

How will the product fit into the current market?

What sets this product apart from its competition?

Draw on your existing market research. You may need to undertake additional

research to test your new product proposal with your customers. For example,

you could set up focus groups or a customer survey.

Establish time frames

You need to allow adequate time to develop and implement your new products.

Your objectives for developing new products will inform your time frames and

your deadlines for implementation. Be thoughtful and realistic. Some objectives

might overlap but others will be mutually exclusive.

Your objective to race against your competition will require efficiency from

your team.

Your aim to achieve a specific launch date will be influenced by demand for

seasonal products and calendar events.

Your aim to be responsive to your customers' needs and demands will require

time for research to ensure you develop the right products at the right time.

Your objective to stick to business as usual and maintain other schedules will

affect the resources you make available for NPD.

5

Identify key issues and approaches

There are many tasks involved in developing a product that is appropriate for

your customers. The nature of your business and your idea will determine how

many of these steps you need to take. You may be able to skip or duplicate

certain stages, or start some of them simultaneously. Key tasks include:

generating and screening ideas

developing and screening concepts

testing concepts

analysing market and business strategy

developing and market testing products

implementing and commercialising products.

6

STEPS IN NEW PRODUCT DEVELOPMENT

Every entrepreneur knows that productivity is one of the key ingredients for

successful product development. One of the two key processes in Robert’s

Rules of Innovation is the NEW PRODUCT DEVELOPMENT PROCESS.

A formalized, NPD process – also referred to and best practice: the Stage Gate®

Process – is a must, from simple to sophisticated.

New product development

A 'new product' can be a product or a service. It can be the next revolutionary

computer chip, or a new holiday package put together by a travel agent. The

point is, it is new, so it is often risky.

This briefing will not help you generate the ideas for completely new products,

or recognise a winner when you see one. It focuses on the next stage - turning

an idea into a product, once you have decided to go ahead with it. It covers:

Reducing the risks as early as possible.

Setting a spec, a price and a schedule.

Running the project team and keeping costs under control.

The New Product Development process is often referred to as The Stage-Gate

innovation process, developed by Dr. Robert G. Cooper as a result of

comprehensive research on reasons why products succeed and why they fail.

7

When teams collaborate in developing new innovations, having the following

eight ingredients mixed into your team’s new product developmental repertoire

will ensure that it’s overall marketability will happen relatively quick, and

accurately – making everyone productive across the board.

Step 1: Generating

Utilizing basic internal and external SWOT analyses, as well as current

marketing trends, one can distance themselves from the competition by

generating ideologies which take affordability, ROI, and widespread

distribution costs into account.

Lean, mean and scalable are the key points to keep in mind. During the NPD

process, keep the system nimble and use flexible discretion over which

activities are executed. You may want to develop multiple versions of your road

map scaled to suit different types and risk levels of projects.

Step 2: Screening The Idea

Wichita, possessing more aviation industry than most other states, is seeing

many new innovations stop with Step 2 – screening.  Do you go/no go? Set

specific criteria for ideas that should be continued or dropped. Stick to the

agreed upon criteria so poor projects can be sent back to the idea-hopper early

on.

Because product development costs are being cut in areas like

Wichita, “prescreening product ideas,” means taking your Top 3 competitors’

new innovations into account, how much market share they’re chomping up,

what benefits end consumers could expect etc.  An interesting industry fact:

Aviation industrialists will often compare growth with metals markets;

therefore, when Boeing is idle, never assume that all airplanes are grounded,

per se.

8

Step 3: Testing The Concept

As Gaurav Akrani has said, “Concept testing is done after idea screening.” And

it is important to note, it is different from test marketing.

Aside from patent research, design due diligence, and other legalities involved

with new product development; knowing where the marketing messages will

work best is often the biggest part of testing the concept.  Does the consumer

understand, need, or want the product or service?

Step 4: Business Analytics

During the New Product Development process, build a system of metrics to

monitor progress. Include input metrics, such as average time in each stage, as

well as output metrics that measure the value of launched products, percentage

of new product sales and other figures that provide valuable feedback. It is

important for an organization to be in agreement for these criteria and metrics.

Even if an idea doesn’t turn into product, keep it in the hopper because it can

prove to be a valuable asset for future products and a basis for learning and

growth.

Step 5: Beta / Marketability Tests

Arranging private tests groups, launching beta versions, and then forming test

panels after the product or products have been tested will provide you with

valuable information allowing last minute improvements and tweaks. Not to

mention helping to generate a small amount of buzz. WordPress is becoming

synonymous with beta testing, and it’s effective; Thousands of programmers

contribute code, millions test it, and finally even more download the completed

end-product.

9

Step 6: Technicalities + Product Development

Provided the technical aspects can be perfected without alterations to post-beta

products, heading towards a smooth step 7 is imminent. According to Akrani, in

this step, “The production department will make plans to produce the product.

The marketing department will make plans to distribute the product. The

finance department will provide the finance for introducing the new product”.

In internet jargon, honing the technicalities after beta testing involves final

database preparations, estimation of server resources, and planning automated

logistics. Be sure to have your technicalities in line when moving forward.

Step 7: Commercialize

At this stage, your new product developments have gone mainstream,

consumers are purchasing your good or service, and technical support is

consistently monitoring progress.  Keeping your distribution pipelines loaded

with products is an integral part of this process too, as one prefers not to give

physical (or perpetual) shelf space to competition. Refreshing advertisements

during this stage will keep your product’s name firmly supplanted into the

minds of those in the contemplation stages of purchase.

Step 8: Post Launch Review and Perfect Pricing

Review the NPD process efficiency and look for continues improvements. Most

new products are introduced with introductory pricing, in which final prices are

nailed down after consumers have ‘gotten in’.  In this final stage, you’ll gauge

overall value relevant to COGS (cost of goods sold), making sure internal costs

aren’t overshadowing new product profits. You continuously differentiate

consumer needs as your products age, forecast profits and improve delivery

process whether physical, or digital, products are being perpetuated.

10

CADBURY – COMPANY PROFILE

Cadbury is a British multinational confectionery company owned by Mondelēz

International. It is the second largest confectionery brand in the world after

Wrigley's. It is headquartered in Uxbridge, Greater London and operates in

more than fifty countries worldwide. It is famous for its Dairy Milk chocolate,

the Creme Egg and Roses selection box, and many other confectionery

products.

Cadbury was established in Birmingham, England in 1824, by John Cadbury

who sold tea, coffee and drinking chocolate. Cadbury developed the business

with his brother Benjamin, followed by his sons Richard and George. George

developed the Bournville estate, a model village designed to give the company's

workers improved living conditions. Dairy Milk chocolate, introduced in 1905,

used a higher proportion of milk within the recipe compared with rival products.

By 1914, the chocolate was the company's best-selling product.

Cadbury merged with J. S. Fry & Sons in 1919, and Schweppes in 1969.

Cadbury was a constant constituent of the FTSE 100 from the index's 1984

inception until the company was bought by Kraft Foods in 2010.

Type Cadbury UK Limited (Subsidiary)

11

Industry Confectionery

Founded Birmingham, United Kingdom

(1824; 191 years ago)

Headquarters Uxbridge, London, United Kingdom

Key people Irene Rosenfeld

(Chairman and CEO)

Products See list of Cadbury products

Revenue £11,346,002,000 (2011)

Operating

income

£559,432,200 (2011)

Net income £447,545,760 (2011)

Number of

employees

71,657 (2008)[1]

Parent Mondelēz International

Slogan Working together to create brands people love

Website www.cadbury.co.uk

12

Vision :- The Barrow Cadbury Trust’s vision is of a peaceful, equitable

society, free from discrimination and based on the principle of social

justice for all.

 

Mission :- The Barrow Cadbury Trust’s mission is to promote social

justice through grant making, research, influencing public opinion and

policy and supporting local communities.

 

Values

Promotion of social justice – the Trust aims to put fairness and equality at the

heart of all its work

Empowerment – the Trust seeks to uphold and extend the rights of marginalised

groups, to reflect the grassroots experience of local communities and to support

them in making their voices heard

Partnership – the Trust works in partnership with other grant-makers and with

stakeholders at international, national, regional and local levels

Local focus – the Trust values its historic relationship with Birmingham and the

West Midlands

Relationship with funded groups – the Trust aims to be an approachable, fair

and responsive grant-maker

Valuing learning – the Trust aims to be a learning organisation open to the

exchange of information and ideas, with its work grounded in a solid evidence

base

Innovation and Independence – as an independent grant-maker, the Trust is

alive to emerging needs and new ideas and ways of working and is willing to

take risks in pursuit of social justice

Quaker ethos – while there is no requirement for Trustees or staff to be

Quakers, and most are not, the Trust values its historical roots within the

Quaker ways of working and tradition of social and penal reform. 

13

Cross-cutting themes

The Trust has a particular interest in the following themes across its work:

Supporting the independence and diversity of the voluntary sector.

Addressing gender-based disadvantage.

Addressing disadvantage based on race and ethnicity.

Funding groups, projects and programmes in Birmingham and the Black

Country.

CADBURY SWOT

Strengths

Cadbury is the largest global confectionery supplier, with 9.9% of global

market share.

Strong manufacturing competence, established brand name and leader in

innovation.

Advantage that it is totally focused on chocolate, candy, chewing gum,

unique understanding of consumer in these segments.

Weaknesses

The company is dependent on the confectionery and beverage market,

whereas other competitors e.g. Nestle have a more diverse product

portfolio, where profits can be used to invest in other areas of the

business and R&D.

Other competitors have greater international experience - Cadbury has

traditionally been strong in Europe. New to the US, possible lack of

understanding of the new emerging markets compared to competitors.

14

Threats

Worldwide - there is an increasingly demanding cost environment,

particularly for energy, transport, packaging and sugar. Global supply

chain in low cost locations.

Competitive pressures from other branded suppliers (national and global).

Aggressive price and promotion activity by competitors - possible price

wars in developed markets.

Social changes - Rising obesity and consumers obsession with calories

counting. Nutrition and healthier lifestyles affecting demand for core

Cadbury products.

Opportunities

New markets. Significant opportunities exist to expand into the emerging

markets of China, Russia, India, where populations are growing,

consumer wealth is increasing and demand for confectionery products is

increasing.

The confectionery market is characterized by a high degree of merger and

acquisition activity in recent years. Opportunities exist to increase share

through targeted acquisitions.

Key to survival within the FMCG market is increasing efficiency and

reducing costs. Cadbury Fuel for Growth and cost efficiency programmes

seek to bring cost savings by: 1) Moving production to low cost

countries, where raw materials and labour is cheaper ii) reduce internal

costs - supply chain efficiency, global sourcing and procurement, and

wise investment in R&D.

15

Innovation is key driver. To respond to changes in consumer tastes and

preferences - healthier snacks with lower calories need to be developed.

R&D and product launches have led to sugar-free & center filled chewing

gum varieties and Cadbury premium indulgence treat. Low-fat, organic

and natural confectionery demand appears strong.

had an excellent double digit volume growth

"Bournvita" didn’t have major volume growth. (but of late it is

favourably growing)

Sugar confy. had static growth with larger share of "Eclairs" (with 33% price

increase effected.

16

PRODUCT LIFE CYCLE

A concept that provides a way to trace the stages of a product’s acceptance,

from its introduction (birth) to its decline (death). The PLC of a product have 4

stages:-

1. The Introduction Stage

2. The Growth Stage

3. The Maturity Stage

4. The Decline Stage

These four stages of PLC can be understood with the help of the graph

given below:-

STAGE IN THE PRODUCT LIFE CYCLE

Cadbury Dairy Milk is in the maturity stage of the product Life cycle. It

currently has a market share of 70% in the chocolate market and is way ahead

of its competitors. There is a high degree of brand awareness. The colour purple

and the 'glass and half full' logo is amongst the most recognised logos and the

association of the two with Cadbury Dairy Milk is synonymous.

17

STEPS TAKEN BY BRAND AT EACH STAGE-

AT A COMMUNICATION AND PRODUCT LEVEL

Introduction

Cadbury Dairy Milk advertising has always depicted a rich tapestry of human

emotions and relationships. In the 1980s, it was positioned as 'the perfect

expression of love', captured in memorable copy: 'sometimes Cadbury can say it

better than words'. During the early1990s, Cadbury Dairy Milk emphasised its

international identity, communicating that it was the 'real taste of chocolate'. In

1994 came the path-breaking 'real taste of life' campaign. The ad featuring a

woman running on the cricket field celebrating the victory is still strongly

etched in our mind even today. This campaign created a dramatic shift in the

way chocolates were perceived. Cadbury Dairy Milk has increasingly become

trapped as a reward or bribe for children and this campaign unshackled the

brand by re-positioning it to the 'free-child' in every adult. Cadbury Dairy Milk

redefined itself as the perfect expression of spontaneous, shared good feelings,

providing the 'real taste of life' experience. The strategy paid off: Brand

Cadbury grew by over 50% in sales volumes. (Super brands)

Growth

Then in 1998, the next stage of growth for the brand dealt with popularising

consumption in a social context, especially in more traditional settings like

weddings. With the campaign 'Khaanein waallon ko khaanein ka bahana

chahiye' featuring Cyrus Broacha, Cadbury Dairy Milk aimed to substantially

increase penetration levels. The campaign was launched in tandem with the

award winning 'Kuchh khaas hai...'campaign and the media strategy was to let

the two co-exist towards a common vision: 'A Cadbury in every pocket'. The

brand penetrated into smaller towns and sales volumes grew by 40%

18

Crisis Management

The worm controversy resulted in Cadbury's brand image taking a beating. They

had to recall a batch of chocolates. Instead of taking any short term measures,

Cadbury used this opportunity to take action and rebuild the trust of people.

They launched a project 'Vishwas' which educated retailers and wholesalers on

storage and other aspects apart from educating consumers.

The other major step was to change the packaging. The company's repackaging

exercise, which used a combination of packaging technologies, was

unprecedented in the category. With the redesigned packaging in place, the

company decided to communicate the measures it had taken to safeguard

quality standards. To add credibility to its pitch, Cadbury took recourse to

Amitabh Bachchan's deep baritone. This was the first time that a celebrity was

used to endorse Cadbury Dairy Milk. The commercial did wonders to consumer

confidence.

A series of ads with Bachchan including "Pappu Paas ho Gaya" to "Miss

Palampur" brought back the lost credibility of the people. With Bachchan they

also launched their new positioning of "Kuch Meetha Ho Jaaye" bringing in the

tradition of celebrating a joyous occasion in India with sweets and now Cadbury

Dairy Milk in particular.

Maturity

The focus for a period shifted to taking the concept of "Kuch Meetha Ho Jaaye"

further. The "Pehli Tareekh Hai" campaigns talked about the importance of

having Dairy Milk and celebrating on getting your pay on pay-day. The ads had

a very retro-feel to it and did click with the audience. But, it is the recent string

of "Shubh Aarambh" ads that have brought back the old charm of Cadbury

Dairy Milk with its very interesting insight of mixing the traditional with the

new age.

19

MARKETING STRATEGIES

Product strategy

We have the competitive advantage that is our quality. It is recognized

throughout the world and our product is a convenience product.

Promotion strategy

We can distinguish ourselves from the competitors on the following criteria:

Important: as we are the first one launching nuts coated with chocolate .and

due to winter season it will serve as a good product to our target market.

Communicable: yes the difference is communicable to the buyers through

our advertisements on TV and billboards.

Affordable: as the result of a survey the prices set are economical.

Positioning strategy

More for the same: As we are offering the same quality same taste at a

economy price.

Brand strategy

We will position our brand at its attributes that is its innovative ingredient

and good taste. And strong beliefs and values as Cadbury’s have many loyal

customers. The product name is Enticing Treats means a mouth watering

treat which is simply irresistible

The brand is licensed and is a international brand.

20

POSITIONING

Cadbury find it easy to choose their Positioning Strategy. Cadbury is well

Known Company for its Superior Quality in certain segments and will go for

this position in new segment’s as there are enough buyers seeking quality now

day’s.

The positioning task Cadbury consists of three steps;

1. Identifying Possible Competitive Advantage

2. Choosing the Right Competitive Advantage

3. Selecting an overall Positioning Strategy

The Cadbury must effectively Communicate and deliver the Chosen Position

to the market.

Identifying Possible Competitive Advantage:

As Cadbury want to build profitable relationship with target

customer’s so Cadbury must understand Consumer’s needs better than

Competitor’s do and must deliver superior value.

Cadbury can position itself as Providing Superior Value. It will be a

competitive advantage for the Cadbury.

Cadbury position it’s product as offering the best quality and services.

But it must have to deliver the promised quality and services.

Cadbury can also differentiate the services that accompany the

product.

Cadbury can gain services differentiation through speedy, Convenient

and careful delivery.

21

Choosing the Right Competitive Advantage

Cadbury has been lucky enough to discover several potential Competitive

advantages. Cadbury must carefully select the way in which it will

distinguish itself from competitors. A difference is the worth establishing to

the extent that it satisfies the following criteria.Important: The difference

delivers a highly valued benefit to the Target buyers. Superior: The

difference is superior to other ways that consumers might obtain the same

benefit. Communicable: the difference is Communicable and visible to the

buyers.

Selecting an overall Positioning Strategy

Cadbury would be selling its high quality products at lower prices to get the

Buyer’s Greater Value.

22

MARKET MIX - CADBURY 4P'S

The market mix comprises of the 4 P’s which are product, price, place and

promotion. Those are all discussed below.

Product:

My product is a re-launch of Cadbury dairy milk. Cadbury dairy milk is made

from real chocolate. Its ingredients include cocoa butter and there is a glass and

half full cream dairy milk in every 200 grams of Cadbury dairy milk chocolate,

Cadbury buys 65 million litres of fresh milk each year to make Cadbury dairy

milk chocolate. Our product is a new product of Cadbury Chocolate. It is called

“Enticing Treats”. In this we are providing chocolate coated nuts with a low

calorie count. We have the competitive advantage that is our quality. It is

recognized throughout the world and our product is a convenience product.

The product that is discussed here is a chocolate bar which is manufactured with

different combinations including the 50% cocoa, 60% cocoa and 70% cocoa.

This means that the products can be consumed by people who are calories

conscious, has a taste for chocolate and has sweet tooth. The product is of high

quality and can be used for other direct consumption and baking purposes as

well. This helps in including people from various demographics in to the

superset of the consumers.

Price:

Price is an important element of the marketing mix. The price charged for a

chocolate bar can determine whether a consumer will buy it and the level of

sales achieved can determine whether or not Cadbury Schweppes will make a

profit. Price is also affected by factors such as the state of the economy, what

competitors are charging, the stage reached in the products life cycle and above

23

all what price the market will bear. From the marketing point of view this is

what matters. Cadbury providing good quality and economical price.

The price range of this product is slightly higher that its peer products. The

reason behind it is that the product is of high quality and is healthy in nature.

Cadbury believes in attracting people towards its products for the brand image

that they have build for them self including the reliability, friendly nature and

the grandeur its products have by default.

Deeper product penetration will drive growth in India: Cadbury

In an interview with ET, Cadbury's HR and strategy head, V Chandramouli

discussed what the company plans for the Indian market, one where it already is

the market leader by a comfortable margin.

It claims to be one of the fastest growing consumer product companies in India.

But Cadbury India still feels there is a lot of scope for growth. As the company's

HR and strategy head, V Chandramouli feels that the next phase in product

distribution and penetration will drive the next phase of the company's growth.

Place

Cadbury products are produced at the chocolate factory in Bourneville in

Birmingham. After the chocolate is produced and has undergone all the quality

checks it is transported to the stockrooms. After this Cadbury sells its products

to shops that deal with beverages and confectionery e.g. corner shops, super

stores such as Iceland, Sainsbury, Kwik save, Tesco, Asda, Safeway and petrol

station. These businesses are usually visited by customers on a daily basis.

They then sell it to the general public. Cadbury produces chocolate for more

than 200 countries so that they have a chance to enjoy it as well and make

24

profit. This gives them a wide range of consumers around the world. Cadbury

Schweppes therefore makes sure that the cultures of these different people are

kept. They can do this by producing products, which are eaten in that particular

country without upsetting religious or cultural practises.

The brand will be released in UK. These products will reach the hand of

retailers and other shopkeepers. These are places where people tend to shop the

most. People who come to malls and shops would either be there for serious

shopping or for having fun. Cadbury will appeal to both categories of people as

an instant rejuvenator and as a champion companion. These places help in a lot

of impulse purchase based on the tiredness and the instant craving for chocolate.

There will also be an option of direct purchase and home delivery in the case of

Cadburys when people are ready to make bulk purchase. This is for those

people who would like to resale or supply Cadburys in their partners and will

help in increasing the supplier base. The suppliers of Cadbury are extremely

loyal to Cadbury and keep its chocolates for sales on the counter where it gets

the maximum attention.

Promotion

We are promoting our new product with the help of advertisement on bill

boards and on television. Cadbury has a great brand image in the worldwide

market, they focused on present dominance in the chocolates market to be

maintained. Average sales to grow at least at 20% p.a. for the next 3 years,

volumes by at least 12%. 1 new major product to be launched every year. Sugar

conf Share in sales mix to be enhanced through value added niche products.

With control over costs and reduction in relative depreciation charge for the

year, steadily increase margins.

Web marketing, social marketing and bill boards will be the main ingredients

for the new product. Cadbury is highly active on face book and twitter and

25

believes in giving opportunities to its users to speak. The idea is to appeal to

targets on a timely basis. It is targeting the middle age group initially and then

the kids. We plan to capture the market in segments on a timely basis in the case

of this product instead of capturing the whole market instantly. Cadbury Gems

another product in the Cadbury tree is also using the same strategy to attract

elders after being preferred by kids, there will be competitions for public

participation to enhance the perceived image of the product. The package will

be purple and yellow in colour darkening according to the cocoa content in the

product.

26

CADBURY INDIA DESIGNS AND PACKAGING

FOR CHOCOLATE PRODUCTS

Mondelez International subsidiary Cadbury India has introduced new packaging

for its Dairy Milk products in chocolate, fruit and nut, crackle and roast almond

flavours.

Product shots have been replaced by imaginative expressions of each flavour

and brighter colours have been introduced.

Developed by the global Cadbury Dairy Milk team in co-operation with design

agency Pearlfisher, the new 'say what you see' packaging has already been

introduced in countries including the UK and Australia.

Cadbury India chocolate and media director Siddhartha Mukherjee said that the

last Cadbury Dairy Milk packaging change took place almost five years ago in

India, making it the right time to introduce the new global packaging.

"At Cadbury, we are always exploring avenues to create and maintain consumer

excitement," Mukherjee said.

Cadbury Fruit and Nut, Crackle and Roast Almond will also be undergoing a

recipe and mould change for the first time, in addition to the packaging change.

"Additionally, our consumer research shows that inclusions like nuts and

crispies are preference drivers in this category, thus making sense for us to

enhance our recipes in line with consumer needs," Mukherjee added.

27

BRAND BUILDING OF CADBURY DAIRY MILK

The story of Cadbury Dairy Milk started way back in 1905 at Bournville, U.K.,

but the journey with chocolate lovers in India began in 1948.The pure taste of

Cadbury Dairy Milk is the taste most Indians crave for when they think of

Cadbury Dairy Milk.

The variants Fruit & Nut, Crackle and Roast Almond, combine the classic taste

of Cadbury Dairy Milk with a variety of ingredients and are very popular

amongst teens & adults. Recently, Cadbury Dairy Milk Desserts was launched,

specifically to cater to the urge for 'something sweet' after meals.

Cadbury Dairy Milk has exciting products on offer - Cadbury Dairy Milk

Wowie, chocolate with Disney characters embossed in it, and Cadbury Dairy

Milk 2 in 1, a delightful combination of milk chocolate and white chocolate.

Giving consumers an exciting reason to keep coming back into the fun filled

world of Cadbury.

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. In the early 90's, chocolates were

seen as 'meant for kids', usually a reward or a bribe for children. In the Mid 90'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'.    

28

   The 'Real Taste of Life' campaign had many memorable executions, which

people still fondly remember. However, the one with the "girl dancing on the

cricket field" has remained etched in everyone's memory, as the most

spontaneous & un-inhibited expression of happiness. This campaign went on to

be awarded 'The Campaign of the Century', in India at the Abby (Ad Club,

Mumbai) awards.

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. This campaign built social

acceptance for chocolate consumption amongst adults, by showcasing collective

and shared moments.

More recently, the 'Kuch Meetha Ho Jaaye' campaign associated Cadbury Dairy

Milk with celebratory occasions and the phrase "Pappu Pass Ho Gaya" became

part of street language. It has been adopted by consumers and today is used

extensively to express joy in a moment of achievement / success. The

interactive campaign for "Pappu Pass Ho Gaya" bagged a Bronze Lion at the

prestigious Cannes Advertising Festival 2006 for 'Best use of internet and new

media'. The idea involved a tie-up with Reliance India Mobile service and

allowed students to check their exam results using their mobile service and

encouraged those who passed their examinations to celebrate with Cadbury

Dairy Milk.

29

The 'Pappu Pass Ho Gaya' campaign also went on to win Silver for The Best

Integrated Marketing Campaign and Gold in the Consumer Products category at

the EFFIES 2006 (global benchmark for effective advertising campaigns)

awards.

CADBURY COLLABORATE AND WORK AS TEAMS TO CONVERT

PRODUCTS INTO BRANDS

30

THE CADBURY BRAND'S SIZE AND SCALE IN THE INDIA

We have a 33 per cent share in the overall confectionery market. This has three

categories- gum, candy and chocolate, so we have a leadership position here. In

the chocolate market, which is our heartland, we have over 70 per cent market

share. Apart from confectionery, we also have a strong presence in the health

drinks market especially in the North and West where we are market leaders.

But what is more important than the figures and plain data is the fact that we

have a sixty-year legacy in India. Consumers know the category of chocolates

by our brand name. In the last three years, the measure of our performance is

that in 2005, we were worth about Rs 875-crore and we ended 2008 at Rs 1587-

crore, close to doubling the business in these three years. Sales growth was 22

per cent, compounded growth rate over the past three years. Operating profit of

close to 28 per cent during the time period. We have got 20 per cent-plus

growth in the first nine months this year. In the last four years, we have doubled

our turnover.

So whatever benchmarking we have done vis-à-vis other consumer goods

companies, we are amongst the fastest growing consumer goods companies in

India.

31

What has helped the company achieve such growth?

The reasons for our sustained growth have been that we have focused on power

brands, Cadbury dairy milk, Bournvita. We believe that if the company has to

grow at over 20 per cent, these key brands also have to follow suit.

We have ten power brands- six in chocolates. Cadbury Dairy Milk, gems, five

star, celebrations, bournville, two in candy- halls and Cadbury dairy milk éclairs

one in gum- bubaloo.

The second big focus is distribution. These are impulse buy products so wide

distribution makes a lot of difference. So reach or quality of availability makes a

huge difference. So clear focus there has helped us a great deal.

The third thing is focus on customer service and product freshness. The

question we constantly ask ourselves is- from the time the product is

manufactured, to the time the consumer eats it, how do we reduce this time?

How do we ensure that people consume fresher products?

The next is the fact that we have the best talent in the industry. We are

continuously scaling up on talent. We continue to hire, give regular increments.

We think that the best growth comes from the best people.

What is the sustainability focus of the company in India?

Cocoa farming is another sustainability area that we focus on, We introduced

cocoa farming in the country. We have a separate wing of people working to

ensure farmers grow cocoa and are remunerated well. We still import half our

cocoa from Africa and middle eastern countries.

32

We have targeted to plant five million trees a year. Reason why it is good for

farmers is that cocoa does not require fresh land and grows as an intermediate

crop in coconut fields. It also helps increase soil fertility. So the farmer gets

double income from the same piece of land.

What is the road ahead for Cadbury in India?

Our overall business strategy in India is simple. We are focussing on growing

the overall market. Thanks to our size, our business also grows automatically.

Per capita consumption is very low 75 grams per person per year. But as the

economy grows and income levels rise, we will definitely see this rising. The

opportunity for growth is enormous here as chocolate consumption in the

developed world is 20 times India's.

So deeper penetration of the product will drive higher consumption and drive

growth.

What are the specific areas of focus for the company?

We are focussed on increasing value. To be present in different price points.

Second is distribution. Chocolate is highly perishable. Marketing investment

level and how do we make it relevant to Indians in a cultural context. So we

have promoted asa mithai, not as an alien concept. Innovation is the last aspect.

How do we grow the market through this. Bournville is choco for adults, as

people age, taste palette changes and we want a stronger flavour.

33

PORTERS FIVE FORCE

The Supplier Power

The operations of Cadbury are well supported by the suppliers whom they are in

contract with. The company shares an extremely good connection with the

suppliers and are well appreciated for that. Since the company and the suppliers

work on a mutual basis, it can be said that the company and the suppliers have

equal amount of power on each other.

Barriers to Entry

Cadbury as a company is well known throughout the world and hence it has

trust of many. There are opportunities for competitors to rise. But it is unusual

for them to rise up to the level of the Cadbury in terms of its acceptability,

quality and affordable prices. The threat from new entrants is lower in the case

of Cadbury.

Power of the buyers

The buyers are highly health conscious now and tend to demand health

products. But irrespective of this people tend to be sensitive to prices and switch

to products that are offered at a cheaper cost by the competitors. This in turn

influences Cadbury to reduce the cost of the chocolates offered. The bargaining

power of the customers is high

Threat from the Competitors

There are many competitors for Cadbury and they tend to capture the same

target market as that of Cadbury. They do this on the basis of changing the taste

and customers requirements. The companies are now involved in making

products that are extremely innovative and are hard to be worked with.

34

Threats for substitutes

Brand image that is created by Cadburys is extremely strong and customers are

attracted to the brand for its chocolates. There are sweets of different kinds but

chocolate still remains the most preferred sweet. But the existence of the other

substitutes in the market cannot be underestimated.

All the mentioned issues above can be solved with the help of proper marketing

skills which is also the necessity of the hour where Cadbury is concerned.

Segmentation criteria

There was no segmentation in the case of Cadbury initially. But for the time

time being it seems best for Cadbury to adapt a heterogeneous segment and to

concentrate on the basis of the reasons why they buy chocolates. Market

segmentation can be defined into many ways and some of them are

demographic variables. Other factors that influence their decisions are lifestyle

of consumers, the occasions of the purchase and the benefits that people would

get out of buying that particular product. All these factors are to be considered

when a product is being made by Cadbury.

Segmentation is also done by Cadbury on the basis of behavioural

segmentation. Following are the segments that are used by Cadbury.

Break segment: products that can be snatched and consumed when there is a

break from work of office or studies. These products can be consumed in a daily

basis. Some of the examples of these products are Cadbury’s TimeOut and

snack range.

Impulse Segment: the products in this category can be purchased impulsively

for instant consumption. These products are most advertised and are made

35

available everywhere. Some of the examples for these products include Mori,

Twirl, Crunchie, Starbar, Diarymilk and Fuse.

Take home segment: the products in these segments can be taken home and

used at any further point of time and people tend to purchase it when the need

arises

Gift segment: This is a segment where people purchase boxes of chocolate and

other products for giving away gifts during special occasions and others

festivals.

Demographical segmentation is also used by Cadbury. Age is a dominant factor

used for segmentation in the case of Cadbury. The target segment for Cadbury

is from 5-60. But even kids lesser than the age of five tends to consume

Cadbury’s. One of the reasons why people in this age group are targeted is

because of the nature of the product that is sold by them. Chocolates are equally

liked by people of every age.

 Among this target segment they further divides the targeted segment on the

basis of the occasions that they tend to consume chocolates. This will further

include everyone in their segment producing variety of chocolates as per their

requirements. They also try and include obese people in their target and bring

out specialised products for them. Products are manufactured on the basis of the

perceived preferences.

An example for a product that is made available for kids are milk chocolate

covered with nuts. The kids are further attracted towards the brand for the

superheroes that are used for wrapping and as gifts in the packages. Brown

chocolate and nuts with lower calories are provided for middle age group

because of their diet conscious nature and old age targets are provided with

white chocolate and nuts.

36

Targeting Strategy

The targeted segment can be divided into three groups as far as Cadbury is

concerned and they are 5-10, 11-20 and 21-60. The segmentation strategy used

here is demographical segmentation and the major target chosen here primarily

is the segment from 21-60. One of the major reasons for this target is the

number of people from this target range are numerous and independent. They

can make impulse decisions and purchase the chocolate and not ask for

permission from their parents. The usage of advertisements will be

differentiated in nature depicting models and contexts that people in this age

group are bound to be involved in. The target segment concentrated on will be

in age limit of 21-60. But the consumption of these chocolates will not be

limited to this segment and others are also encouraged to consume the chocolate

bar. This segment is chosen on the basis of the ingredients of the chocolate

products that tend to be more appealing to 21-60 age groups.

37

INFLUENCE OF BUYER BEHAVIOUR ON MARKETING

STRATEGIES

Buyer behaviour is highly dependent on many issues including the internal and

the external factors. There are influencing factors behind every purchase made

by the customers and these influencing factors can be used positively by the

marketers in increasing the attractiveness of their products. Analysing these

behaviours is what helps Cadbury to design the best of positioning strategies to

attract more customers to the brand. Some of the factors that have higher had in

the buyer behaviour now are online feedback on the products, friends and

families opinion on the product, the cost of the product and the requirement for

consuming or not consuming the product. The range of cultural factors, social

factors, personal factors and psychological factors impact the decisions that are

taken by buyers. It is also highly critical for the marketer to decode these

influences segment and target them accordingly to enhance the chances of them

making a favourable decision.

Example: some of the qualities that are portrayed by the brand personality of

Cadburys are fun loving, down to earth, reliable, confident, indulgent and

friendly. Cadbury tends to appeal to its users on the basis of buyers behaviours

and their personality. There always tend to be synchronisation between the

brand personality and the buyer personality. Here are some of the buyer

behaviours personified and targeted by Cadbury

Cadburys Diary milk has the personality of the rebel leader and appeals to

youthful exuberance and rebelliousness

5 Star depicts a male personality and reliability, and is the champion

companion

Perk has personality of the girl next door and the main factors of its

personality includes warm, perky, naughty and accessible.

38

QUALITY ASSURANCE OF CADBURY

1. Market high quality, superior value products that consistently meet our

specifications and comply with local regulatory requirements, while

continuously improving and exceeding our consumers’ expectations.

2. Guarantee that our customers and consumers come first by actively listening

and understanding their quality and value expectations at the points of purchase

and consumption.

3. Ensure that any representation of our company image, including our products

and trademarks, meet approved standards, reinforce our commitment to quality

and safeguard the reputation of Cadbury.

4. Maintain a “right first time” culture that consistently embraces quality and

food safety, where everyone understands their responsibilities and

accountabilities.

5. Operate audited quality management systems that continually improve

processes to deliver this policy and our standards.

6. Assign clear management accountability for setting and meeting measurable

goals and targets for quality and food safety.

7. Work with our supply chain and business partners to assure compliance with

our quality policy and systems, ensuring quality throughout our supply chain.

8. Place continuous improvement at the heart of our performance enabling us to

deliver superior products and service to our consumers and customers.

9. Create a passion for quality where success and achievement are

communicated, recognised and celebrated.

39

NEW PRODUCT DEVELOPMENT – SILK

Cadbury India, a part of Mondelēz International, announced the launch of a new

TVC campaign for the all-new softer, smoother and silkier Cadbury Dairy Milk

Silk. Revolving around the theme of 'indulgence', the film effectively captures

the immersive joy of consuming a bar of Cadbury Dairy Milk Silk. This is

showcased through three young people who are shown taking hearty bites of the

new silkier chocolate and also scooping it with their fingers, enjoying the softer,

smoother and creamier sensation.

Speaking about the campaign, Chandramouli Venkatesan Director, India

Snacking and Asia Pacific and Developing Markets- Chocolate Lead, Cadbury

India said, "Silk has been a great success story for us ever since its launch. The

renovation of Silk is in line with our efforts towards providing an even more

superior chocolate eating experience in India. The new Silk TVC showcases

characters being completely immersed in the experience of consuming the new

Cadbury Dairy Milk Silk. The new product has been improved to deliver greater

softness and creaminess, while retaining the signature Silk taste, to make it the

best chocolate in India."

He further adds, "This re-launch is supported with heavy marketing investments

including outdoor, digital, on-ground engagement and differentiated POB

execution."

Manoj Shetty, Creative Director, Ogilvy India, who developed the TVC

Campaign said, "The new Cadbury Dairy Milk Silk TVC campaign is created to

cater to the fast evolving consumer tastes and trends and their compulsive need

to indulge and pamper themselves. The characters in the TVC aptly depict that

the new Cadbury Silk is softer, silkier and smoother"

40

CADBURY GLOW TO MAKE INDIA DEBUT

In what is a clear signal of the importance of India in snacks and beverage

major Mondelez International's scheme of things, the latter will be unveiling its

new chocolate   gifting brand Cadbury Glow   in the country next month.

This is the first market where the newest entrant to Mondelez's global chocolate

portfolio will be launched, Siddharth Mukherjee, director, chocolate category &

media, Mondelez India Foods Ltd, said in an exclusive conversation with

Business Standard.

Other markets will follow post the India launch, which will involve targeting

high-end retail outlets, hotels, airports, departmental stores in cities such as

Delhi, Mumbai, Pune, Ahmedabad, Bangalore, Hyderabad, Chennai, Ludhiana,

Chandigarh and Kolkata, Mukherjee said.

This is the third chocolate gifting brand in Mondelez's India portfolio

after Cadbury Celebrations   and Toblerone   and is positioned as a luxury product

with a price point of Rs 400 for a 16-unit pack and Rs 600 for a 24-unit pack,

Mukherjee said. Cadbury Celebrations one of Mondelez's chocolate gifting

brands is a mass-market product available from Rs 50 to Rs 150 for different

stock keeping units, while Toblerone is a premium chocolate gifting option that

is priced at Rs 65 per pack going upto Rs 400.

Celebrations also has a premium gifting range called Rich Dry Fruit Collection

that is available for Rs 250 going upto Rs 575 per pack.

"Cadbury Glow is an international product, which took two years to develop

and involved inputs from different centres and three intermational design

agencies. We are importing the product in bulk (from Bratislava in Slovakia

where it is made) and repacking the product in India. We will look at

manufacturing Cadbury Glow in India in the future," Mukherjee says.

41

NEW PRODUCT DEVELOPMENT

CADBURY BUBBLY

The chocolate was literally bursting out of its package.

Cadbury’s Bubbly is quite delicious. It’s the same smooth flavour that you

would expect from Cadbury’s Silk — with the added twist of bubbles

(completely non-flavour altering). It is milk chocolate, so it is on the sweeter,

milkier side. The bubbles simply make it a little bigger to bite into, a little airier

when you are chewing. When you hold it in your hand, you can actually feel the

bubbles bursting. It’s quite cute.

42

Cadbury’s Silk Bubbly Shape & Packaging

The shape is what got to me: lava-like flowing bubbly chocolate! It really looks

big and inflated. The packaging, like most Cadbury’s products, is great.

Priced at Rs 70 for a 50 gram bar, Cadbury’s Bubbly is relatively

expensive. Especially since Cadbury’s Silk costs Rs 57 for 60 gram pack. So

not are you getting less chocolate, you are paying more — for air!!!

Availability of Cadbury’s Silk Bubbly Chocolate

Cadbury’s Silk Bubbly is available in your supermarket. Cadbury’s Silk can be

ordered online on Amazon.in: Cadbury Dairy Milk, Silk Chocolate, Pouch,

160g

USER REVIEWS: Cadbury Dairy Milk Bubbly

Cadbury Dairy Milk have made their classic Bubbly chocolate even more

bubbly and more flavour-some with the new-look aery chocolate snack.

There are three delicious flavours with Milk Chocolate, Strawberry and Mint

and instead of the usual blocks of chocolate the insides are covered in yummy

chocolate, in a bubble design.

43

CONCLUSION

Cadbury Dairy Milk has adapted itself to the Indian market quite impressively.

From making a sweet eating nation to switch to chocolates to becoming the

market leader, Cadbury Dairy Milk has done it all because of the emotional

connect it established with the consumers. Its communication also always

focused on the emotional aspects and feelings of life apart from spontaneity. Its

communication has always showcased its values and personality. In my opinion,

the 'Kuch Meetha Ho Jaaye" concept is a goldmine which can be used in a

variety of ways in a country like India."

It is important to be extremely careful about the marketing strategy where

umbrella branding is concerned. Marketing strategy has in it to make or fail a

product and hence it is extremely necessary to have an innovative marketing

strategy in hand. Marketing acts as a link between the product and the consumer

and hence it should be given ultimate preference along with the quality of the

product. Cadbury has also managed to become this famous because of the

quality of their products and the marketing strategies adapted by them.

The reasons for our sustained growth have been that we have focused on power

brands, Cadbury dairy milk, Bournvita. We believe that if the company has to

grow at over 20 per cent, these key brands also have to follow suit.

44

BIBLIOGRAPHY

https://en.wikipedia.org/wiki/Product_(business)

http://www.innovationexcellence.com/blog/2013/05/27/8-step-process-

perfects-new-product-development/#sthash.tU3a8vwr.dpuf

http://www.barrowcadbury.org.uk/vision/

http://www.ukessays.com/essays/marketing/product-life-cycle-of-

cadbury-dairy-milk-marketing-essay.php#ixzz3oHgwWaPO

https://www.cadbury.co.uk/