CLMC-007 Cadbury India targets the Adult Segment with Cadbury s Dairy Milk Cadbury India Ltd. (CIL) is the wholly-owned subsidiary of the leading global confectionery and beverages major -- Cadbury Schweppes. From a trading corporation that began operations in India in 1947, CIL has become a market leader in the confectionary segment. Cadbury has a 70 percent market share in chocolates. Some of its brands are Dairy Milk, 5 Star, Gems and Perk. Cadbury s Dairy Milk (CDM) is its flagship brand, having a market share of 30% and average daily sales of 1 million bars 1. 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. In 1994, the company brought out a new ad campaign with the tagline Kya Swaad Hai Zindagi ka (Real taste of life), which tried to associate the brand with shared good feelings and reposition the brand for the adults. The first series of ads focused on adults from different walks of life enjoying a chocolate. This was followed by a campaign that highlighted the simple joys of life. One of the ads in the campaign ( a cricket commercial ), showed a girl breaking into an impromptu dance on the cricket field after her boyfriend scored the winning run in a tense match. This ad campaign 1 http://www.indiainfoline.com/nevi/cadu.html This caselet was written by Satya Srinivas Srikanti, under the direction of Jitesh Nair, ICFAI Center for Management Research. Caselets are intended to be used as a basis for class discussion rather than to illustrate either effective or ineffective handling of a management situation. 2005, ICFAI Center for Management Research. All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, used in a spreadsheet, or transmitted in any form or by any means electronic or mechanical, without permission. To order copies, call +91-40-2343-0462/63 or write to ICFAI Center for Management Research, Plot #49, Nagarjuna Hills, Hyderabad 500 082, India or email icmr@icfai.org. Website: www.icmrindia.org
helped change the kiddy image of the brand and increasing sales volumes by 50%. This was followed by a series of ad campaigns over the years under the Kya Swaad Hai Zindagi ka tagline. All the advertisements depicted people from various backgrounds celebrating life, with CDM in the backdrop to woo the adult consumers. To increase its reach in towns and rural areas, CIL launched a new ad campaign in 1998 with a mass appeal, targeted at rural consumers who were not yet convinced of the rational need to eat a chocolate. This was because the earlier campaigns were more urban-centric and the sales were largely restricted to the urban areas. The ad with the tagline Khane Walon Ko Khane Ka Bahaana Chaahiye (those who want to eat, will find excuses) featured MTV s popular anchor Cyrus Broacha. The advertisement campaign aimed to convey the idea that no specific occasion was required to eat a CDM. The campaign helped CIL increase its penetration in the towns and rural areas and improve its overall sales by 40%. To further increase the consumption, CIL tried to associate the brand with socio-cultural situations. In 2001, the company developed ad campaigns with wedding and family & college as themes, under the same tagline Khane Walon Ko Khane Ka Bahaana Chaahiye. In line with the global alignment exercise of brands by the parent company, CIL made some changes in the product and re-launched it in August 2003. CDM was made smoother and richer in texture. The packaging was also changed to make it more contemporary. The company adopted a master branding strategy which involved bringing all the variants of CDM under the Dairy Milk brand, and launched new flavors Caramello and Double Deck which were targeted at the premium segment. It also launched the Khush hoon khaamakhaa commercial that aimed at dispelling the notion that an occasion was needed to have a Dairy Milk chocolate. However, the campaign was cut short when the company faced a major image crisis in October 2003. Worms were found in the CDM bars at some retail outlets in Maharashtra, and the state s Food and Drug Administration (FDA) ordered seizure of the chocolate stocks. This incident generated bad publicity for the company and affected customers perception of the brand. As a result, CIL had to take emergency 2
corrective steps to tide over the crisis. It immediately made changes to the packaging by using a poly-coated aluminum foil that was heat sealed on all four sides of the chocolate packs, to ensure safety and hygiene. The company also launched a retail education program, Project Vishwas, under which 190,000 retailers were told about correct storage practices. CIL roped in Amitabh Bachchan as a brand ambassador to restore consumers confidence in the brand and with the help of its agency O&M, it launched the purity sealed Dairy Milk brand through a series of campaigns. The first in the series was a 60-seconder that showed Amitabh Bachchan visiting and assessing Cadbury s manufacturing plants and getting convinced about the quality standards maintained by the company. To reaffirm that, he eats a bar of Dairy Milk. This ad was aired to reinstate the sense of trust among the consumers. The next ad in the series showed Mr. Bachchan interacting with his granddaughter. The ad with the tag line Don t worry. Be Happy sought to communicate the message that the Dairy Milk was safe to be consumed by children. These ads helped the company restore the consumer s confidence in the brand. The market share that had decreased to 69.4% in January 2004 from 73% in October 2003 gradually rose to 71% by May 2004 (after the first campaign, which was aired in November 2003). Customer tracking studies revealed that consumer confidence had improved from the time the campaign was aired. Soon CIL again returned to its earlier marketing communication theme of -- joy of chocolate, with Amitabh Bachchan in the central role. In June 2004, the company came out with an ad campaign with the tagline Kuch meetha ho jaye. Speaking about the underlying theme of the ad campaign, Sanjay Purohit (Purohit), Director, Sales and Marketing, Cadbury, said, The aim (of the ad campaign) was to illustrate everyday people celebrating special moments in their lives. So when a man runs into Amitabh Bachchan, the star, it is reason enough to celebrate with a Dairy Milk bar. 2 The company launched another ad campaign in January 2005 with a similar theme. In this ad, Amitabh Bachchan who manages a small store suddenly receives an influx of students who ask for a pack of Dairy Milk. When he asks for the payment, they reply, 2 3
Paise Pappu dega! ( Pappu will pay the money). Puzzled, Amitabh asks a student about Pappu and the student answers, Pappu pass ho gaya! (Pappu has passed). Pappu, a middle-aged man, arrives at the store and with an air of achievement, exclaims, Akhir main barwi pass ho gaya! (At last I have passed the12th standard). The ad ends with Bachchan offering Pappu a Dairy Milk bar and saying, Paise Pappu dega! This advertisement also aimed at communicating the happy moments of life. With this ad campaign, CIL completed a full circle and was back to its everlasting theme Kya Swaad Hai Zindagi ka (shared good feelings), though in a more subtle manner. This was evident from Mr. Purohit s comment on the marketing communication strategy adopted by the company since 1994, While the central proposition of the brand has not changed, the communication focus has evolved over time to appeal to different consideration sets. 3 Speaking about the motive behind such a communication strategy, he added, With a market share of 70 per cent-plus, we don t need a brand-building exercise, but push a certain consumer behavior. We want our patrons to consume chocolates whenever there is an urge to celebrate on a sweet note. 4 Questions for Discussion: 1. While the central proposition of the brand has not changed, the communication focus has evolved over time to appeal to different consideration sets. How did CIL use its ad campaigns to make chocolate eating a habit among the consumers, especially the adults? 2. Children are the major segment for any confectionery company. Do you think CIL has adopted the right strategy in focusing its marketing communication campaigns at adults, when other confectionery manufacturers are increasingly directing their efforts on the children s segment, which has gained prominence due to its increasing pester power? 3 4 4
Additional Readings and References: 1. Cadbury Dairy Milk: No More Excuses, Please. www.agencyfaqs.com. 01, April, 2002. 2. Cadbury ropes in Amitabh as its brand ambassador. The Economic Times. 07, January, 2004. 3. Cadbury ropes in Big B as brand envoy. The Hindu Business Line. 08, January, 2004. 4. Bhushan, Ratna. Celebrities: Bang for Buck? The Hindu Business Line. 29, January, 2004. 5. Shatrujeet N. Cadbury makes measured return to 'Joy' platform. www.agencyfaqs.com. 23, February, 2004. 6. Chatterjee, Purvita. Cadbury's big bytes. The Hindu Business Line. 16, September, 2004. 7. Kumar, Ramesh S. Kal Aaj Aur Kal. Strategic Marketing. September/October, 2004. 8. Vivek T. R. Cadbury makes a sweet comeback. www.rediff.com. 30, October, 2004. 5