Report On Cadbury's

PROJECT B: MARKETING PLAN

INSTRUCTIONS:

1. The groups are required to prepare a "Marketing Plan" in the prescribed format i.e. Using this format will produce a 30 to 40 page plan.

2. The report should have the relevant material under the following headings:

* Executive Summary- talk about the macro environment (economy, legal, sociocultural etc.)

* Market Analysis-

Define market in general and for your chosen product/company

Successful businesses and products are built on a thorough definition of their markets. Who are the customers - as well as the potential customers who will expand the business of the company? What are their unmet needs and aspirations? Where are they going - and how can you reach them?

The marketing communications strategy for CDM evolved over the years. From the mid-nineties, the company decided to target the Indian adult through Cadbury's Dairy Milk. The CIL also made efforts to manage the 'worm controversy' in October 2003 to maintain the brand image of the company. Cadbury's Dairy Milk (CDM) is its flagship brand, having a market share of 30% and average daily sales of 1 million bars. Till the mid-nineties, CIL's marketing communication campaigns for CDM were targeted at kids. The advertisements focused on the relationship between the parents and their children, where parents expressed their love by gifting the child a Dairy Milk. However, in 1994, CIL changed its tack and the communication campaigns were targeted at adults, to expand the chocolate market and increase sales.

Market size

Sizing opportunities is critical in today's market, because each individual product has a smaller, more targeted sweet spot; so over- or underestimation of an opportunity can have devastating effects. The approach goes beyond sizing the current market to explore other possibilities and scenarios, based largely on an understanding of whom target consumers are and where their lives are taking them. This is essential to creating products that have to stay for a long term and not just a short-lived outburst of success.

In the Chocolate Confectionery business, Cadbury has maintained its undisputed leadership over the years. Some of the key brands are Cadbury Dairy Milk, 5 Star, Perk, Йclairs and Celebrations. Cadbury enjoys a value market share of over 70% - the highest Cadbury brand share in the world! Our flagship 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 Bourn vita - the leading Malted Food Drink (MFD) in the country. Similarly in the medicated candy category Halls is the undisputed leader.

Cadbury's Dairy Milk (CDM) is its flagship brand, having a market share of 30% and average daily sales of 1 million bars.

Market segmentation

Segmentation enables you to identify portions of any market that are different from one another. It is a tool that can help you understand how your target audience may differ from the general market, as well as the commonalities and differences among various groups that may make up your target audience. Segmentation is critical for developing and channeling marketing communications because it can incorporate a variety of attitudinal, behavioral, demographic, and life-style information. Through segmentation, you can develop a definition of your target market that can focus and enhance your marketing efforts. By incorporating multiple dimensions, you can derive richer and more meaningful definitions of your market.

They have focused heavily on the following points:

* what are their most important and trusted sources of information about your category

* where and when they may be most - and least - receptive to advertising and other messaging

* whether your positioning fits with their feelings about products such as yours

In order to implement the above points the following was issues were handled:

* Use of emotional appeals in advertising Customer surveys as a means to align the advertisements with evolving consideration sets of customers

* Packaging as a tool to communicate quality.

* Used its ad campaigns to make chocolate eating a habit among the consumers, especially the adults.

Industry structure

The confectionery industry in India is approximately divided into:

* Chocolates

* Hard-boiled candies

* Eclairs & toffees

* Chewing gums

* Lollipops

* Bubble gum

* Mints and lozenges

The total confectionery market is valued at Rupees 23 billion with a volume turnover of about 145000 tonnes per annum. The category is largely consumed in urban areas with a 70% skew to urban markets and a 30% to rural markets.

Hard boiled candy accounts for 20%, Eclairs and Toffees accounts for 18%, Gums and Mints and lozenges are at par and account for 13%. Digestive Candies and Lollipops account for 1.5% share respectively.

Overall industry growth is estimated at 2.5 % in the chocolates segment and sugar confectionery segment has declined by 3%.

The Milk Beverages industry is valued at Rupees 13.8 billion with an annual turnover of approx 60,000 tonnes. As per Nielsen estimates the industry is growing at 7.4%.

The total confectionery market is valued at Rupees 23 billion with a volume turnover of about 145000 tonnes per annum. The category is largely consumed in urban areas with a 70% skew to urban markets and a 30% to rural markets.

Hard boiled candy accounts for 20%, Eclairs and Toffees accounts for 18%, Gums and Mints and lozenges are at par and account for 13%. Digestive Candies and

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