Product Life Cycle Of Cadbury 3d270

ABSTRACT This case study enables an interesting analysis of how a category's product life cycle can be managed over its product value chain using a set of competitive strategies (for protecting and increasing market share). Cadbury India, present in India since independence, July 1948, had been reinventing itself over the last seven decades by making itself relevant AIDed by its ments, Innovation and Distribution. Having about 70% of market share in Indian chocolate market, Cadbury faces a major challenge: what should it do to increase Indian per-capita chocolate consumption levels (at ₹80 per year currently) to UK (₹10,000 per year) and US (₹5,000 per year) consumption levels? AIDed (ments, Innovation and Distribution) by its mulch-pronged approach of changing consumption behavior of Indians in general and rural Indians in particular, would it be able to stay ahead of the pack?

Pedagogical Objectives  To understand how product life cycle (of a product category) can be managed through its product value chain through a firm's competitive strategies  To understand how Cadbury India stayed relevant and stayed ahead of competition with continuous innovation through its product value chain  To examine how Advertising, Innovation and Distribution (AID) channels can be used to manage/extend the product life cycle more effectively

 To discuss and debate on what would it take for Cadbury India to increase the per-capita chocolate consumption level in India from ₹80 per year to either ₹10,000 a year or ₹5,000 a year

Positioning/Case Setting  This case study can be used for either of the following modules/topics in the Marketing Management Course:  Competitive strategies - to understand how companies have to device their strategies to stay ahead of its competitors  Product Life Cycle - to understand the various stages of a Product Life Cycle and what the company needs to do to extend the life of its products  Advertising - to understand how ments can be used in repositioning and changing the consumer perceptions with respect to its products  Distribution - to understand the role of a company’s distribution network in growing its consumer base

Product Life Cycle Of Cadbury Dairy Milk Cadbury chocolates was started in Birmingham in 1824 by John Cadbury. Chocolate in those days was a very elitist product. Cadbury Dairy Milk came up with the mix of milk and chocolate tray which is pretty much how the product still is. There has been no drastic change in the recipe of the product but the packaging and the representation and prominence of the 'glass and half of milk' logo has changed over a period of time.

A Timeline  1824 — Cadbury Dairy Milk was invented with the mix of milk and chocolate tray by John Cadbury.  1904 A new recipe is perfected by George Cadbury for milk chocolate.  1905

Cadbury launches Dairy Milk onto the market - a new milk

chocolate that contains far more milk than anything previously tasted and with a unique creamy taste.  1913 Dairy Milk becomes Cadbury's best selling line.

 Mid 1920s

Dairy Milk becomes UK brand leader - a position it still

enjoys today.  1928 Fruit & Nut is introduced as a variation of Dairy Milk. The "glass and a half" advertising slogan is introduced.  1933 WholeNut is added to the Dairy Milk family.  1948 Cadbury Dairy Milk is sold in India  1998 Dairy Milk is re-launched with the new and modern pack design, but its recipe and unique taste are still very similar to the original recipe.  2005 Cadbury Dairy Milk celebrates its 100th birthday.

Cadbury India Introduction Cadbury India began its operations in 1948 by importing chocolates and then re-packing them before distribution in the Indian market. Today, Cadbury has five company-owned manufacturing facilities at Thane, Induri (Pune) and Malanpur (Gwalior), Bangalore and Baddi (Himachal Pradesh) and 4 sales offices (New Delhi, Mumbai, Kolkota and Chennai). Its corporate office is in Mumbai.Worldwide.

Products of Cadbury ChocolatesCadbury Dairy Milk Cadbury Celebrations Bournville 5 Star

Perk Gems Toblerone BeveragesBourn vita Tang BiscuitsOreo CandyEclairs Halls GumBubbaloo

Brand Identity : Kapferer's model Current 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 recognized logos and the association of the two with Cadbury Dairy Milk is synonymous.

Market Scenario/Challenges (According

to AC Nielson study of

2007)  The Indian Chocolate market is estimated to beat around 1500crores.  It is growing at the rate of 18-20% per annum  With 72% of the market share in India, Cadbury is the market leader.

Companies/Competitors The 2 main competitors in the Indian market that Cadbury faces any competition from are Nestle and Amul. There are several new and local brands like Candico, Sweet World etc. which are trying to make its presence felt.

Consumer Trends  The Mithaai or sweet has been the tradition in India so far. Chocolates are now trying to break into that league and hence faces stiff competition more from this product category than its immediate competitors.  Chocolates are more of an impulse buy.  Consumers are preferring chocolates to Mithaai because of proper packaging, longer shelf life, mid-range pricing and convenience.  Consumers have started showing interest in not just milk chocolates but other varieties like Dark Chocolate etc.  One of the major challenges that Cadbury Dairy Milk faces is a decline in sales due to new variants being introduced in the market by other brands which could result in the product moving from maturity to decline stage. Another major challenge comes from a different product category altogether which is the Indian Sweets or Mithaai.

Introduction to product life cycle of Cadbury

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 emphasized 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)  1824 — Cadbury Dairy Milk was invented with the mix of milk and chocolate tray by John Cadbury.  1904 — A new recipe is perfected by George Cardbury for milk chocolate.  1905 — Cadbury launches Dairy Milk into the market. (UK)  Cadbury Dairy Milk in India redefined itself as the perfect expression of spontaneous, shared good feelings, providing the real taste of life experience through its brand strategy  The brand grows by over 50% in sales volume.  1928 — Heavy investment begins in Cadbury Dairy Milk ads stressing its high milk content. (UK)

Growth Then in 1998, the next stage of growth for the brand dealt with popularizing 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% (Source: Internal Sales Data). (Super brands)

 1928 — Fruit and Nut is introduced as a variation of Dairy Milk.  1933 — Whole Nut is added to the Dairy Milk Family.  1948 — Cadbury Dairy Milk in sold in India.  1998 — Cadbury Dairy Milk popularized its consumption in a social context, especially in more traditional settings such as Weddings which are prevalent in India with the campaign “Khaanein waallon ko khaanein ka bahana chahiye” meaning “  Cadbury Dairy Milk aimed to substantially increase penetration levels through its award winning campaign “Kuchh khaas hai”  The brand penetrated into smaller towns and sales volume grew by 40%

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.  1913 — Dairy Milk becomes Cadbury’s best selling line (UK).  Currently, Cadbury Dairy Milk is prospering in this stage.  Has India’s 70% of Chocolate consumption Market Share and is the market leader.  2004 — Using Amitabh Bachhan CDM launched their new positioning of “Kuch Meetha Ho Jaaye” bringing in the tradition of celebrating a joyous occasion in India with sweets (Mithaai) along with the Cadbury Dairy Milk.  The “Pehli Tareekh Hai” campaigns talked about the importance of celebrating with a Dairy Milk on pay-days.  2010 — “Shubh Aaramb” brought in the old charm of Cadbury Dairy Milk with its unique strategy of mixing traditions with the new age.  Cadbury Dairy Milk introduces new product “Silk” as the brand is doing very well.  2013 — Introduces the campaign “Khaane ke baad kuch meetha ho jaaye” aiming to inculcate the idea of having a Cadbury Dairy Milk as an everyday post dinner dessert.

Decline / New product Introduction (Potential Challenges and Threats)

Consumers have started showing interest in other categories of chocolate such as dark chocolate (Bournville).A major challenge is the growing popularity of fresh Indian sweets or Mithaai. Many marketing experts would agree that the best time to reinvent for a brand is when the going is still good. No brand can afford to assume it’s created the definitive product.Cadbury Dairy Milk(CDM) introduce the sub brand Silk.