Cadbury India's Sweet Success Story
Cadbury India's Sweet Success Story
The Cadbury's Inc has taken the opportunity to offer us a broader view of chocolate
category. The Cadbury's India's no.1 Chocolate is able to share with their market insights
Cadbury has grown from strength to strength with new technologies being introduced to
make the Cadbury confectionary business, one of the most efficient in the world. The
merge in 1969 with Schweppes and the subsequent development of the business have
led to Cadbury Schweppes taking the led in both, the confectionary and soft drink
market inside UK and becoming a major force in the international market. Cadbury
120.The Cadbury story is a fascinating story of a family business that grew in one of
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COMPANY OVERVIEW
Cadbury India is a fully owned subsidy of Kraft Foods Inc. The combination of Kraft
Foods and Cadbury creates a global powerhouse in snacks, confectionery and quick
meals. With annual revenues of approximately $50 billion, the combined company is the
world's second largest food company, making delicious products for billions of
consumers in more than 160 countries. We employ approximately 140,000 people and
In India, Cadbury began its operations in 1948 by importing chocolates. After 60 years of
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(Pune) and Malanpur (Gwalior), Bangalore and Baddi (Himachal Pradesh) and 4 sales
offices (New Delhi, Mumbai, Kolkata and Chennai). The corporate office is in Mumbai.
Our core purpose "make today delicious" captures the spirit of what we are trying to
achieve as a business. We make delicious foods you can feel good about. Whether
watching your weight or preparing to celebrate, grabbing a quick bite or sitting down to
family night, we pour our hearts into creating foods that are wholesome and delicious.
Currently, Cadbury India operates in four categories viz. Chocolate Confectionery, Milk
Food Drinks, Candy and Gum category. In the Chocolate Confectionery business,
Cadbury has maintained its undisputed leadership over the years. Some of the key brands
in India are Cadbury Dairy Milk, 5 Star, Perk, clairs and Celebrations.
Cadbury enjoys a value market share of over 70% - the highest Cadbury brand share in
the world! Our billion-dollar brand Cadbury Dairy Milk is considered the "gold standard"
for chocolates in India. The pure taste of CDM defines the chocolate taste for the Indian
consumer. In the Milk Food drinks segment our main product is Bournvita - the leading
Malted Food Drink (MFD) in the country. Similarly in the medicated candy category
Halls is the undisputed leader. We recently entered the gums category with the launch of
our worldwide dominant bubble gum brand Bubbaloo. Bubbaloo is sold in 25 countries
worldwide. Since 1965 Cadbury has also pioneered the development of cocoa cultivation
in India. For over two decades, we have worked with the Kerala Agriculture University to
undertake cocoa research and released clones, hybrids that improve the cocoa yield. Our
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Cocoa team visits farmers and advise them on the cultivation aspects from planting to
harvesting. We also conduct farmers meetings & seminars to educate them on Cocoa
cultivation aspects. Our efforts have increased cocoa productivity and touched the lives
of thousands of farmers. Hardly surprising then that the Cocoa tree is called the Cadbury
snacking and quick meals, we are poised in our leap towards quantum growth. We are the
world's No.1 Confectionery Company. And we will continue to make today delicious!
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WHO ARE WE
Consumers Inspire us
To make today delicious, we begin with our consumers.
We understand their joys and their challenges because were consumers too.
What we do
Whether watching your weight or preparing to celebrate, grabbing a quick bite or sitting
down to family night, we pour our hearts into creating foods that are wholesome and
delicious.
Our reach
Were constantly looking for fresh ideas to improve our workplace, our partnerships, our
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communities and our world.
We inspire trust.
We keep it simple.
How We Grow
We focus on creating sustainable, profitable growth. And our strategies guide our efforts:
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Drive down costs without compromising quality
It takes great people to make great brands. Our approximately 140,000 diverse employees
At Cadbury India we have always believed that good values and good business go hand
in hand. It's part of our heritage and the way we do things today. CSR is about growing
our business responsibly. Cadbury India has a tradition of caring for the environment and
enriching the quality of lives of the communities we live and work in, through a variety
of result-oriented programs
to look after the health and safety of our people and minimize the environmental impact
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Migratory birds stop over at our Bangalore factory!
water conservation our Bangalore factory has constructed a check dam to store the
rainwater. This dam not only acts as a major ground water replenishing source for the
bore wells in the factories and surrounding community, but is also a stopover location for
Our efforts have increased cocoa productivity and touched the lives of thousands of
farmers. Hardly surprising then that the Cocoa tree is called the Cadbury tree
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Bangalore Factory: The sun shines at nightAcknowledged as 'Preserver of
Environment'
Rising energy costs, and 300 sunny days a year, inspired the factory to
install 28 solar powered streetlights. It will reduce annual carbon dioxide (a major
greenhouse gas) emissions by ten tonnes, playing a part in the effort to reduce global
warming.
Karnataka State Pollution Control Board has honoured the Bangalore factory with the
Parisara Premi (Preserver of the Environment) Award for the second year in a row.
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HISTORY
Cadbury is a very old trusted name. It all started in Birmingham in England when John
Cadbury started his family grocery shop with side business of cocoa and chocolate
products in around 1824. His two sons, Richard and George, expanded their family
business of cocoa and chocolate. Bournville, a town near Birmingham, was build by them
TARGET MARKET
The Indian chocolate market is valued at Rs. 650 crores (i.e. rs. 6.50 billion) a year. The
India's metros proving to be the big draw clocking penetration in excess of 15%. Next,
comes the relatively smaller cities/towns where consumption lags at about 8%.
Chocolates are a luxury in the rural segment, which explains the mere 2% penetration in
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villages. The market presently has close to 60mn consumers and they are mainly located
MARKETING OBJECTIVES
appropriate pricing strategy that will create a mass market and to have offerings in
MARKET SEGMENTATION
into smaller subgroups. These markets are often termed niche markets or specialty
markets.
The purpose of segmentation is to identify and target prime customer groups (e.g. the
20% that account for 80% of your sales) so that you get maximum return from a limited
marketing budget.
PRODUCT VARIANTS
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Cadbury dairy milk, 5 star, Perk, Eclairs and Celebrations
PRODUCT INNOVATIONS
5 Star: Consumer feedback suggested that the old 5 star was too chewy, and people
complained of it sticking to their teeth. It was made softer and melted easily in the mouth
Perk: Perk was made much lighter and the size of the bar increased to match nestle's
munch. Perk had been under fire from nestles deadly duo of kitkat and munch, butafter
the re launch, its market share is two percent more than kitkats and, the five-year-old
brand is now almost as big as the decades-old 5star in size, both in the region of Rs 50-55
crore.
Heroes: packaging innovation has played a vital role in revamping of various cadburys
brands. Heroes brand is simply a multi-pack with miniatures of all its most popular
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PACKAGING- The packaging was changed to include a sealed plastic wrapper inside
the outside foil. Cadburys launched a new 'purity-sealed' packaging for its flagship
product, cadbury dairy milk. Over the next few weeks cadbury will work towards
introducing either a heat sealed or a flow-pack packaging that offers a high level of
resistance to infestation from improper storage. Cadbury invested nearly Rs 25 crore (Rs
250 million)
STRATEGY
smaller unit packs at lower price points. Simultaneously, the company seems to have
astutely juggled with the larger pack sizes and raised prices to a degree higher than what
appears at face.
strategy to control costs in several areas, including sourcing of raw materials and
packaging.
The consultancy firm will also look at the sourcing of direct and indirect materials like
renegotiating with suppliers for longer term contracts and vendor management. Other
costs (indirect expenses) like travel costs and hotels were also being studied.
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EARNINGS SENSITIVITY
FACTORS
Competition from MNCs like Nestle as well as imported brands. Increasing competition
puts pressure on advertisement budget and margins. However on the positive side, it
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DISTRIBUTION
Chocolate needs to be distributed directly, unlike other FMCG products like soaps and
detergents, which can be sold through a wholesale network. 90% of chocolate products
are sold directly to retailers. Cadbury's distribution network used to encompasses 2100
distributors and 450,000 retailers to avoid cannibalization of its higher priced products
from lower priced ones, Cadbury is setting up two separate distribution channels one
Chocolates are primarily sold through kirana stores, gift stores, medical stores, canteens,
pan-bidi stores, bakeries, sweetshops etc. This is true for chocolates also. The space
allocated for the chocolates was less when compared to the total area of the shop of the
space allocated for chocolates, cadbury brands occupied more than nestle brands.
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DEVELOPING A BRAND
A brand identity is the message sent out by the brand through its name, product shape and
design, visual symbols (such as logos), advertising etc. This identity needs to be planned
by brand management, as this is key to gaining market acceptance and leadership.
Brand core
Brand proposition
Brand style
Brand themes
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A brand pyramid can help managers plan and analyze a brands identity. The top tier of
the pyramid consists of brand core. Brand core values are the genetic code of the brand
and remain the same overtime. Closely related to these values is the brand proposition :
the promise the brand makes to the consumer. This proposition should be easy to
understand and appeal to the target market. The middle tier represents the brands style or
elements of the brands identity that represents the self image of the brand of the brand and
need to be relatively stable over time. The base of the pyramid is formed by the brand
themes which are concerned with the brand currently communicate through its
tastes.
The brand pyramid helps managers understand the strengths of the brand and ensure
Brand core
consistency of its message. This also helps to identify the opportunities for brand
stretching and brand extensions. A brand extension is the use of a well known brand name
on a new product category. We will discuss this in relation to the DAIRY MILK brand.
physical appear ance etc. Brand themes are flexible and change with
Brand starch ing is the use of an
established brand name in unrelated markets or product categories , e.g. using a well
physical appear ance etc. Brand themes are flexible and change with
known designer name on cosmetics, clothes, sunglasses etc, such as John Rocha
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Waterford Crystal
The brand CADBURY enjoys a high level of brand equity. Researches show 90% of the
people recognizes the brand while 74% state that when it comes to chocolate only
CADBURY will do.
There are three main brand name strategies:
Family brand names: The parent brand is also known as an umbrella brand. This term
is given to product ranges where the family brand name is used for all products. The
advantage of this approach is the positive associations with the parent brand will transfer
to all sub brands. The risk however is that that if one brand is unsuccessful or falls into
disrepute, the reputation of the complete family of brands can be tarnished. Cadbury is a
family brand.
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Individual brand names (Multi brands): In this case each brand is created and named
separately and has separate identity. Using a family brand may not be that suitable as
Combination brand names: This approach allows for the optional use of the corporate
brand name, while allowing an individual brand to be identified, e.g. Cadbury Dairy Milk.
Cadbury uses a combination of brand strategies. The family brand,Cadbury is linked with
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its famous sub brands , i.e. Cadbury Crme Egg, Cadbury Roses and Cadbury Flake to
name a few. The family brand identity is style communicated by packaging with the
Cadbury corporate purple color and the distinctive Cadbury script logo. The sub brand
than name of the company it incorporates the companys mission, vision and values,
example of MASTERBRAND.
Cadburys core brand values include "lifes everyday pleasures that make us feel good
and never let us down. As a reward or a pick me up, we consumer s trust Cadbury
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In the last year there has been a major development in brand strategy at Cadbury Ireland.
The Cadbury Dairy Milk brand has been stretched to become a family brand in its own
right. Of all the successful Cadbury brands, the one with the greatest loyalty is Cadbury
Dairy y Milk. In 2002 more than 19 million Dairy y Milk products were sold. Cadbury y
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
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
consumer s for a variety of offers under the brand. In addition, it is easier for consumer to
Megabrands provide economies of scale as the fixed costs of maintaining a brand name
can be spread across the sales of numerous product lines. Creating and maintaining brands
has become very expensive. Stand alone it increasingly difficult to compete with
Megabrands.
Other factors leading to the emergence of the Megabrand include growing pressures and
greater global competition. Megabrands are better resourced and have a greater chance of
When developing a Megabrand, products are chosen for inclusion on the basis of their
compatibility with the brands identity. For Cadbury, the (blocks) chocolate brands were
included as they were perceived as variants of Dairy Milk. The core proposition of the
new Dairy Milk Megabrand could be described as delivering recipes for lives upbeat
occasions - i.e. no matter what your humor or the occasion, Cadbury Dairy Milk will
Two products in the Cadbury range created a dilemma: Wispa and Caramel. Both were
standalone products with distinctive identities. Both had a loyal consumer base high
should not be abandoned. To incorporate these products into the Dairy Milk range called
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Both were blocking chocolate and provided a fit with the Dairy Milk Megabrand. Their
The Dairy Milk Megabrand without alienating loyal consumer s. The new Dairy Milk
Bubbly brand benefited from a new name which better conveys the distinctive "mouth
feel" of Wispa. The new aerated chocolate product now in square form, which is also
easier to break, proved popular. Test showed that 85% of Wispa consumers were likely to
buy Dairy Milk showed that 85% of Wispa consumers were likely to buy Dairy Milk,
while 89% of Caramel customers indicated their likelihood to buy the new Dairy Milk
Banoffi while incorporating new variants like Cadbury Dairy Milk Orange Shots.
Cadbury Boost is a chocolate bar made by Cadbury Ireland in the Republic of Ireland,
and sold in the UK by Cadbury UK and also sold in Australia and South Africa. Its
wrapper says that it consists of milk chocolate with caramel and biscuit filling. The
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Cadbury Brunch Bar is a bar of cereals (oats, bran flakes and crispies) bound
with honey and half covered in milk chocolate. They come in a variety of flavours:
Raisin, Hazelnut, Apricot & Almond, Cranberry & Orange, Fruit & Nut, Mixed Berry,
They are breakfast type bars that are quick to eat in, and ideally as a slightly healthier and
Variations available, some of them limited editions, include Caramilk made with dark
"Thick" and cylindrical versions called "Caramilk Rolls" (similar to Rolo) have also been
introduced.
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Crispy Crunch is a hard chocolate bar with a crispy peanut flake inside that is made
by Cadbury. Crispy Crunch is sold in Canada. Crispy Crunches were sold in the United
States for a brief time in the 1990s by the food distribution arm of Pro Set, the collectible
card company. Pro Set went bankrupt, resulting in Crispy Crunch no longer being
available in the United States. A lower-calorie version of Crispy Crunch was available for
a limited time in the mid-1990s. The original manufacturers, Neilson, sold all their
chocolate brands to Cadbury in 1996, though packaging continued to feature the Neilson
logo for a few years. Since Cadbury began manufacturing of the chocolate bar, the recipe
has changed in that it is less salty and more sweet as it has a more of the crunchy
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(a) Bar and a Half- In June 2009 Cadbury launched the "Cadbury Dairy Milk Bar
and a Half" range as a replacement to the Cadbury Dairy Milk "8 chunk" across
several Dairy Milk variants. The concept is that the bar is to be more
"portionable", so parts of the bar can be "saved for later" although the bar is the
same as the old 8 chunk but in Fruit and Nut, Whole Nut and Standard. This bar
A similar technique has been introduced with Cadbury Double Decker and Cadbury
Boost bars. However instead of larger bars, two separate bars are packaged together and
are called "Duo". Both brands received a packaging refresh at the same time.
Cadbury Dairy Milk Caramel is a chocolate bar that is part of the Cadbury Dairy
Milk brand and is made by Cadbury UK and Cadbury Ireland. The bar is sold in
the United Kingdom and Ireland. The bar was first launched in 1976, originally
called Cadbury Caramel until 2003, when it was renamed. In early 2009 it was
relaunched, with the Caramel name re-emphasised as the main on-pack brand, and
the Dairy Milk brand reduced in size. he product is a Cadbury Dairy Milk chocolate bar
semi-divided into blocks each of which has a caramel filling. The blocks vary in shape
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and number according to the size of the bar, but on all bars, the blocks are stamped with
Cadbury Celebrations:
Cadbury Celebrations was aimed at replacing traditional gifting options like Mithai and
like 5 Star, Perk, Gems, Dairy Milk and Nutties and rich dry fruits enrobed in Cadbury
dairy milk chocolate in 5 variants, Almond magic, raisin magic, cashew magic, nut
The super premium Celebrations Rich Dry Fruit Collection which is a festive offering is
an exotic range of chocolate covered dry fruits and nuts in various flavours and the
premium dark chocolate range which is exotic dark chocolate in luscious flavours.
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emotional route and the tag line says "rishte pakne do" which fits with the brand purpose
Cadbury 5 Star
gain share among lapsed consumers. To do this the variant Cadbury 5 Star Crunchy was
launched- which still had the richness of caramel, chewiness of nougat but also contained
rice crispies. In order to engage youth the campaign was executed across TV, radio,
Cadbury Perk
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A pretty teenager; a long line, and hunger! Rings a bell? That was how Cadbury launched
its new offering; Cadbury Perk in 1996. With its light chocolate and wafer construct,
Cadbury Perk targeted the casual snacking space that was dominated primarily by chips
& wafers. With a catchy jingle and tongue in cheek advertising, this 'anytime, anywhere'
Raageshwari started the trend of advertising that featured mischievous, bubbly teenagers
getting out of their 'stuck and hungry' situations by having a Cadbury Perk. Cadbury Perk
became the new mini snack in town and its proposition "Thodi si pet pooja" went on to
As the years progressed, so did the messaging, which changed with changes in the
consumers' way of life. To compliment Cadbury Perk's values, the bubbly and vivacious
Preity Zinta became the new face of Perk with the 'hunger strike' commercial in the mid
90's.
Cadbury Gems
The saying "Good things come in small packets" has been proven right many a times and
it couldn't have been truer for the pretty chocolate buttons called Gems. Who can forget
the unique, brightly colored chocolate buttons with crispy shells, encased in a pack that's
as colorful as the product itself? Unrivalled in all these years, Cadbury Gems has
captured every consumer's fantasy for almost 4 decades. Little wonder that Cadbury
Gems, the brand that came into India in 1968 is still going strong.
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Cadbury Gems brings happiness to the consumer's world. With this promise in mind,
Cadbury Gems has always had 'Masti' as the key proposition in all its communication. In
fact, Cadbury Gems is always a willing ally for pranks and fun.
Cadbury Bournvita
Cadbury was incorporated in India on July 19th, 1948 as a private limited company under
the name of Cadbury-Fry (India). Cadbury Bournvita was launched during the same
year.
It is among the oldest brands in the Malt Based Food / Malt Food category with a rich
heritage and has always been known to provide the best nutrition to aid growth and all
round development.
Throughout it's history, Cadbury Bournvita has continuously re-invented itself in terms of
product, packaging, promotion & distribution. The Cadbury lineage and rich brand
heritage has helped the brand maintain its leadership position and image over the last 50
years.
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INTRODUCING CADBURY AS AN AFTER DINNER SWEET
One of the biggest marketing strategy followed by Cadbury in India was introducing
Cadbury as an after dinner sweet. Indians are fond of having dessert after their dinner.
Cadbury aimed at replacing the traditional sweets. Apart from its after dinner
advertisement Cadbury targeted adults rather than children. In most of its advertisements,
the brand is endorsed and advertised by adults rather than by children even though it
basically sells chocolate. Such type of advertisements have created a very wide range of
consumers for Cadbury. Its products are not limited to children alone. Adults like the
Another reason for Cadbury being such a successful brand was that it aimed at replacing
the traditional sweet custom so prevalent in India. Indians have the habit of carrying
sweets as gifts when they visit a friend or relatives. Cadbury items became the new
sweets. It was not only considered better but also superior to carry Cadbury instead of the
normal sweets. Cadbury also aimed at selling in bulk during festive seasons such as
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Diwali and Rakhi packs are designed to give a feel of the festivities going on. They are
exclusively Indianised. The chocolate packs contain special chocolates such as dry fruits
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COMMUNICATING STRATEGY
To promote the new dairy milk megabrand, Cadbury implemented comprehensive 360
various communications channel each activity bearing the same message . This approach
The 360 degree support campaign include a point of sale competition to win a new
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look , new display units , a buy-two-get-one free promotion on 100g bars, PR and
advertisements in the trade press. The result was that sales of the new Megabrand
TV COMMERCIAL OF CADBURY
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Cadburys Christmas Club advertisement Poster-1935
Up until the year 1928, not a lot of money was put in to the advertising of the products.
By this year Cadburys was the best selling chocolate company in Britain. The Join our
Christmas club for Cadburys chocolates poster is from the year 1935.The advert has
Santa Claus on it, by using Santa Clause it means that the poster will appeal to children a
lot more than it would if Santa was not included in the poster, the idea is that children
will see santa in the poster and then want the chocolate for christmas. In the poster there
is also several cadburys products being shown, this means that many of the products are
being promoted rather that just one it also shows the variety that Cadburys sells. The
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writing on the Poster says JOIN OUR CHRISTMAS CLUB FOR CADBURYS
CHOCOLATES.
Notice how all of the letters are in capitals and the words Christmas Club and
Cadburys are larger than the rest of the words to make them stand out so that attention
The target audience for this poster would be everyone. The santa clause image makes the
poster attractive to children the bright colours may also attract the attention of youngsters,
and the fancy and attractive packaging of the boxes of chocolates would appeal to adults
as the packaging looks attractive and it may appeal as a nice Christmas present for adults
I think the message behind this poster advertising Cadburys Dairy Milk Chocolate is
that, By using Santa in the poster it promotes the idea of Cadburys Chocolate being a
product that you could give away as a Christmas present, also because Santa clause is
such an iconic figure to children, if I child sees a poster with Santa on it they will
immediately be intrigued to know what the poster is about therefore I think the message
of this poster is that you should buy this product because santa likes it, so you will like it
to.
This advert is dramatically different from the most recent adverts shown on T.V and in
poster form. The advert is much more old fashioned, naturally, compared to the adverts
which are produced now a days by Cadburys. The colours used in the modern posters are
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very bright and attractive the Cadburys Colour is purple so there tends to be a purple
theme throughout all of the posters and adverts where as in the early days of Cadburys
this wasnt particularly the case, also in the latest adverts there tends to be a slogan or
jingle but in some of the earlier promotions of the products there was no catchy slogan.
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FINDINGS
On an average more than 90% People Like Cadbury Products , moreover 60% of
the people like Dairy Milk, 20% like Gems, 15% like Eclairs and only 5% like
Bytes.
Taste & Quality wise Cadbury satisfies more than 70% of the consumer base.
Public opinion for future product launch of Cadbury is Biscuits 40% Muffins
More than 70% people says that Cadbury must launch sugar free products.
Around 50% People are satisfied with the product pricing of the Cadbury
Products, and 60% people like to buy the International Products of the Cadbury .
Special Celebration packs of Cadbury attract a lot of people more than 90% are
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CONCLUSION
importance. They can differentiate a companys products and customer loyalty, helping to
sustain profitability in the long term. The Cadbury Dairy Milk brand has evolved into a
Megabrand incorporating a range of products each with their own identity, but now under
the Dairy Milk brand. This initiative is intended to leverage the strength of the Cadbury
Dairy Milk brand to the full. The strategy involved a packaging and range refreshment
strategy which has resulted in a unified innovative Dairy Milk brand. Having exceeded
initial sales tar gets by a considerable margin, the strategy can be considered a success!
Branding is one of the most important aspects of any business, large or small, retail or
B2B. An effective brand strategy gives you a major edge in increasingly competitive
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Simply put, your brand is your promise to your customer. It tells them what they can
expect from your products and services, and it differentiates your offering from your
competitors'. Your brand is derived from who you are, who you want to be and who
people perceive you to be. Are you the innovative maverick in your industry? Or the
experienced, reliable one? Is your product the high-cost, high-quality option, or the low-
cost, high-value option? You can't be both, and you can't be all things to all people. Who
you are should be based to some extent on who your target customers want and need you
to be.
The foundation of your brand is your logo. Your website, packaging and promotional
materials--all of which should integrate your logo- communicate your brand. Branding is
all important for those of use who want to be recognized for their name, business idea,
business or product. Like the big name brands such as Sony, Amazon, Google, Yahoo,
For most, the brand name is either their own name, or else the name of the product they
developed. Not only will others know who they are dealing with, but if we brand
ourselves properly, then our name will be a synonym of quality further down the track.
We all know that big name bloggers such as ShoeMoney, John Chow, Yaro Starak, Maki
and Daren Rowse have managed to do just that. They branded themselves through
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BIBLIOGRAPHY
Websites
www.cadbury.co.uk
www.chocolatereview.co.uk
www.cadburys chweppes.com
www.wikipedia.org
www.cadbury.com
Refrences
Philip Kotler
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