Understanding the emotional association between cadbury & youth of Mumbai.
1. Nagindas Khandwala College of Commerce, Arts, Science and
Management Studies.
Submitted By:
Nishit Mehta
TY BMS
Semester V
Project Report On:
Understanding the Emotional Association between Cadbury and the
Youth of Mumbai.
Project Guide:
Prof. Mona Bhatia
University of Mumbai
Academic Year
2010-2011
Cadbury | Kraft Food INC. | The Merger | Emotional Association | Youth | Mumbai 1
2. A cknowledgment
At the outset of this project I would like to thank P M Bhatia
for her moral support for making me go through the completion of this
project without any stressful method.
I would like to thank my college Nagindas Khandwala College and even
the Mumbai University for giving me this opportunity.
Nishit Mehta
T.Y. B.M.S
Nagindas Khandwala College
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3. Table of Contents
Summary............................................................................................................... 5
Chapter 1: Research Methodology ......................................................................... 6
Chapter 2: History ............................................................................................... 14
2.1 Chocolate
2.2 Chocology
2.3 Body of evidence
2.4 Myths and facts about chocolate
2.5 Cadbury – History
2.6 Kraft food INC. - History
2.7 Some important dates
Chapter 3: Brand Prism – Cadbury ....................................................................... 30
Chapter 4: Company Overview ............................................................................ 32
4.1 Cadbury world wide
4.2 Corporate Social Responsibility Awards
Chapter 5: Brands ................................................................................................ 37
5.1 Cadbury Dairy Milk
5.2 Perk
5.3 5 star
5.4 Celebration
5.5 Temptaions
5.6 Eclair
5.7 Gems
5.8 Hall
Chapter 6: Advertisements .................................................................................. 47
6.1 Shubh aarambh
6.2 5 star
6.3 Perk
6.4 Fruit and nuts
6.5 Silk
6.6 Bournville
Chapter 7: Case Study (worms) ............................................................................ 59
7.1 Winning the battle
7.2 Repackaging for INDIA
Chapter 8: Kraft - Cadbury Merger ....................................................................... 63
8.1 The legacy dies
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4. 8.2 A heritage sold, a tradition killed
8.3 Impact on the brands – A cultural change
Chapter 9: SWOT ................................................................................................. 70
Chapter 10: Emotions .......................................................................................... 73
10.1 Positive emotions
10.2 Negative emotions
10.3 List of few emotions with their meaning
Chapter 11: Youth ............................................................................................... 78
11.1 The youth of India
11.2 The connectivity – Cadbury
Chapter 12: Mumbai............................................................................................ 82
12.1 Introduction
12.2 Climate
12.3 Economy
12.4 Regions
12.5 Demographics
12.6 Culture
Chapter 13: Questionnaire | Analysis | Findings .................................................. 84
Chapter 14: Conclusion – Recommendation ......................................................... 96
14.1 General conclusion
14.2 Conclusion about merger
Chapter 15: Bibliography ..................................................................................... 99
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5. Summary
‘Understanding The Emotional Association Between Cadbury & Youth Of Mumbai’
This project gives an inside about how the youth of Mumbai, can easily connect
Cadbury with their lives. The project gives the information about the various moods/
emotions/ temperaments that the youth associates with Cadbury.
The project also represents data of how often the youth consumes Cadbury and the
reasons why Cadbury has such a strong impact on the minds and hearts of the
youth.
This project also covers brief information of Cadbury –worldwide, the problems
faced by Cadbury and the recent takeover of Cadbury by KRAFT food INC. and its
impacts all over the world.
This project also contains the Strengths, Weaknesses, Threats and Opportunities of
Cadbury.
Finally the project gives a brief idea about what the youth feels about Cadbury and
where it should improve so that the youth connects with Cadbury with a stronger
BEAT.
The project also captures the various emotions of today’s youth and also the
characteristics of the youth of Mumbai.
The recent merger of Cadbury and Kraft food Inc. have made waves world wide. It’s
not only the youth that fears loosing Cadbury but also the employees of Cadbury.
‘British flags fluttered outside chocolate-maker Cadbury's sprawling Bournville site as
employees lamented the news that a beloved national brand had falling into
American hands’
It’s not only about the chocolate but about the lives of people linked with Cadbury
since the World War II.
There’s no doubt that Cadbury has become synonymous to chocolate, but they say
‘It’s not the capacity but consistency that matters in the end’
Now there’s a strong doubt in the minds and hearts of the youth, that whether
KRAFT food INC. would be able to maintain such a strong image of CADBURY
WORLD WIDE.
‘Let’s hope it does’ – The YOUTH
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6. Chapter 1: Research Methodology
‘If we knew what it was we were doing, it would not be called
RESEARCH, would it?’ – ALBERT EINSTEIN
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7. R esearch Methodology:
9 steps of research.
Formulating
Preparing the Collection of
Research
Research Design Data
Problem
Objectives of Determining Execution of
Research sample Design Project
(2)
Extensive
Sources of Data Analysis of Data
Literature Survey
(6)
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8. Formulating
Research
Problem
Understanding The Emotional Association Between Cadbury & Youth Of Mumbai
Unit Of
Analysis
Youth is the period between childhood and adulthood,
Youth {AGE: 18 described as the period of physical and psychological
to 24} development from the onset of teens to maturity and early
adulthood.
Characteristic of
Analysis
Emotion is subjective experience, associated with mood,
Emotional temperament, personality, and disposition.
Association Emotional association is the association of the experiences with
something we like.
Time & Space
Boundaries
Time August, September, October
Space Only the Youth
Environmental
Conditions
Environment Mumbai city
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9. Examples of Emotional Association:
Love, Passionate
Grateful Compassion
Excited
Depressed
Relaxed
Confused
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10. Objectives of
Research
The objective:
Is to understand the emotions of youth attached with Cadbury
To understand why Cadbury is synonymous to Chocolate
To know why Cadbury has such a strong impact on the minds and hearts of the
youth
Extensive
Literature Survey
Articles Related to Cadbury
Marketing Research – GC BERI
Preparing the
Research Design
The research design is conclusive and is descriptive in nature.
Research Design
Explorative Conclusive
Descriptive Causal
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11.
D escriptive Research Design
The major objective of this research is to describe something.
It is useful to collect demographic information of consumers (YOUTH) of a
product under study (CADBURY).
It is Useful to find out views and attitudes(EMOTIONS) of customers(YOUTH)
It helps to discover the relationship between customer (YOUTH) and product
(CADBURY)
The data collected can be used directly for marketing decision making.
Determining
sample Design
Sample design is the way of selecting the sample
Exact number of youth not known
Therefore, Non-Probability sampling will suit the best
Sources of Data
Primary Data Questionnaire
Secondary Data Articles
Collection of
Data
Survey
Observation Telephonic PI
Schedule
Interview
E mail Questionnaire
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12. 80
Analysis of Data
60
40
20
0
Pyramids A B C D
Pie Chart
A, Radar
33
D, 80
A
B, 45
80 Radar
60
40 33
C, 67 20
D 0 45 B
80
67
C
100
50
Lines 0
A B C D
Serie
33 45 67 80 Doughnut A
s1 15%
D
35%
B
20%
Factors Percentages
A 80% C
30%
B 45%
C 32%
D 55%
Tabulation
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13. L
Imitations
Sample size is very small i.e. only 100 youths
Therefore convenience sampling is taken into account
The project has been done in span of 3 months only
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14. Chapter 2: History
‘Copy from one, it's plagiarism; copy from two, it's research.’
– Wilson Mizner.
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15. History
C
hocolate
The origins of chocolatecan be traced back to the ancient Maya
and Aztec civilisations in Central America, who first enjoyed
'chocolatl'; a much-prized spicy drink made from roasted cocoa beans.
Throughout its history, whether as cocoa or drinking chocolate beverage or
confectionery treat, chocolate has been a much sought after food.
Because cocoa beans were valuable, they were given as gifts on occasions
such as a child coming of age and at religious ceremonies. Merchants often
traded cocoa beans for other commodities such as cloth, jade and ceremonial
feathers.
The Aztec Empire
Chocolate (in the form of a luxury drink) was consumed in large quantities
by the Aztecs: the drink was described as 'finely ground, soft, foamy,
reddish, bitter with chilli water, aromatic flowers, vanilla and wild bee
honey'.
The dry climate meant the Aztecs were unable to grow cocoa trees, and had
to obtain supplies of cocoa beans from 'tribute' or trade.
Don Cortes
The Spanish invaded Mexico in the 16th century, by this time the Aztecs had
created a powerful empire, and the Spanish armies conquered Mexico. Don
Cortes was made Captain General and Governor of Mexico. When he
returned to Spain in 1528 he loaded his galleons with cocoa beans and
equipment for making the chocolate drink. Soon 'chocolate' became a
fashionable drink enjoyed by the rich in Spain..
Chocolate across Europe
An Italian traveller, Francesco Carletti, was the first to break the Spanish
monopoly. He had visited Central America and seen how the Indians
prepared the cocoa beans and how they made the drink, and by 1606
chocolate was well established in Italy.
Drinking Chocolate
The secret of chocolate was taken to France in 1615, when Anne, daughter of Philip
II of Spain, married King Louis XIII of France.
The French court enthusiastically adopted this new exotic drink, which was
considered to have medicinal benefits as well as being a nourishing food.
Gradually the custom of drinking chocolate spread across Europe, reaching England
in the 1650s.
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16. First Eating Chocolate
Up until this point all chocolate recipes were based on plain chocolate.
It was an English doctor, Sir Hans Sloane, who - after travelling in South America -
focused on cocoa and food values, bringing a milk chocolate recipe back to England.
The original Cadbury Milk Chocolate was prepared to his recipe.
C hocology
People around the world have grown up enjoying chocolate as
a favourite treat for countless generations. But just how much
does the average person really know about the potential benefits,
beyond the great taste, that chocolate and its key ingredient -
cocoa - provides? We all know that a bit of chocolate tends to
make you feel good, but a wealth of research suggests that
people can now have even more reasons to enjoy it. The last
decade has seen a significant increase in our research and
understanding of cocoa and chocolate. But understanding the properties of
chocolate is not just a recent development. For centuries, civilizations from Mexico
to Europe have recognised the benefits of cocoa and chocolate for medicinal and
therapeutic uses as well as a food, beverage or treat. It has even been hailed as an
aphrodisiac!
Of course, we all need to ensure we don't over indulge and that we see chocolate as
a treat but researchers are continuing to uncover more reasons to enjoy cocoa and
cocoa products. "Chocology", the science behind chocolate, opens up that research
and presents the facts in an easy to use report that we hope will be a useful resource
when talking about the benefits that chocolate can offer.
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17. Cocoa
Long before the current trend towards organic ingredients, cocoa
was one of the best known natural foods. In its purest form cocoa is
a natural food. The cocoa tree produces cocoa pods that grow from
the trunk or branch of the tree. These pods contain the beans
which characterise the finished chocolate. The cocoa beans are
fermented under banana leaves to bring out the chocolate flavour
and then dried under the tropical sun. They are then shelled and
ground to produce chocolate liquor, an essential ingredient for
making chocolate. The liquor can also be pressed to remove the fat
and is cooled and ground to produce pure cocoa powder.
AntioxidantPower
Cocoa contains high levels of naturally occurring compounds called flavones and a
range of other polyphenols that have been shown to reduce blood pressure helping
to improve heart health. Polyphenols have antioxidant properties and work by
fighting the free radicals which attack cells causing disease and accelerated ageing.
They are believed to impact on arteries and blood qualities, helping to reduce the
risk factors for cardio-vascular disease, through lowering blood pressure and
improved blood platelet function. Scientists have found that the polyphenols relax
vessels by increasing the chemical nitric oxide. This has been shown in new studies at
many universities around the World1.
Dark chocolate contains especially high levels of flavones and other polyphenols -
this helped to boost sales of dark chocolate by over 15% in the UK last year.
It's not just bars of chocolate that have these high levels of antioxidants - a recent
study revealed that hot chocolate beverages, high in cocoa content, can contain
concentrations of antioxidants similar to those in red wine or tea.
Deliciously Nutritious
Chocolate and cocoa containing products are often criticised as being low in
nutritional value and "empty calories". On the contrary, milk chocolate for instance
contains many vitamins including B1, B2, and E as well as minerals including
potassium, sodium, magnesium, phosphorus, zinc, copper, manganese and by far the
most important, calcium, providing over 15% of the recommended daily
requirement in a 49g bar of Cadbury's Dairy Milk, all of which help to keep us
healthy. In light of recent research which suggests taking supplements may be
detrimental to your health, it's good to know that chocolate and cocoa contain so
many nutrients!
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18. B ody of Evidence –
Where can you feel the benefits?
Teeth
While you should always brush teeth, naturally occurring
substances in cocoa, such as tannins, may play a role in inhibiting plaque formation
by coating the teeth to protect them6.
Brain
Eating chocolate releases endorphins, hormone-like natural substances, which
produce a feeling of pleasure and reduce sensitivity to pain. Chocolate contains
many substances that act as stimulants, such as theobromine, phenyl ethylamine,
and caffeine. Research has found that consuming chocolate can lead to increased
mental performance.
Throat
A study carried out by Imperial College, London in 2004 claimed that high doses of
theobromine contained in chocolate are a third more effective at stopping persistent
coughs than codeine.
Heart
Research by Professor Carl Keen at the University of California in 2000 has shown
that a bar of milk chocolate (45g) contains the same quantity of antioxidants as a
150ml glass of red wine. Dark chocolates with higher levels of cocoa contain even
more, as presented in February 2006 at the American Association for the
Advancement of Science's (AAAS) annual meeting in Boston.
Circulation
A number of studies, including one at the University of Cologne revealed that dark
chocolate helps lower blood pressure10. The study focused on adults with untreated
mild hypertension, some of whom had white chocolate, some dark. Blood pressure
remained fairly unchanged in the group that ate white chocolate, which does not
contain flavours. But after two weeks, blood pressure readings had dropped
significantly in the group who consumed dark chocolate.
Bones
Milk and milk products have been part of our diet for thousands of years and the
milk in chocolate - particularly milk chocolate - provides useful quantities of a wide
range of nutrients including calcium. A 49g bar of milk chocolate provides over 15%
of the adult Reference Nutrient Intake (RNI) of calcium. Drinking chocolate made
with milk contains even more calcium
Boosting Brain Power
A recent study in the United States at Wheeling Jesuit University, West Virginia (May
2006) has suggested that eating chocolate may improve the way our brains work.
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19. The theobromine and phenylethylamine, as well as the caffeine in chocolate appear
to increase alertness and mental performance4. The team found that scores for
verbal and visual memory were significantly higher for those people who had eaten
milk chocolate, and the consumption of milk and dark chocolate was associated with
improved impulse control and reaction time.
Similar work at the University of Nottingham has shown that the consumption of
dark chocolate can increase blood flow to the brain leading to improved cognitive
function
In the Mood
Chocolate is said to contain at least 300 natural chemical compounds, resulting in a
complex range of tastes and odours that connect with the human brain as it runs
over the taste buds of the tongue. The slowly released energy and feelings of fullness
and satisfaction induced by its sugar and fat content refuel the body's energy levels
and create feelings of wellbeing. Eating chocolate triggers the release of endorphins,
mood enhancing chemicals produced by the brain. These produce feelings of
pleasure.
Chocolate has such a luscious texture and aroma that all the body's taste and
olfactory sensors are fully exploited, heightening the pleasure of the experience. So
much so that a recent survey by Cadbury has found that 52% of women prefer eating
chocolate to having sex! Over the years, psychiatrists and researchers have pointed
out substances in chocolate that they think may make us like it so much - however,
they're in such small amounts they can't really be the reason we crave chocolate.
The simple pleasure of chocolate melting in the mouth adds to the pleasure of eating
it - chocolate has the property of melting at body temperature, cooling the mouth
slightly as it does so. Most interestingly, one expert has pointed out that "chocolate's
a blend of flavours and aromas so complex that food chemists have never been able
to duplicate it in the lab 5 ." We may never understand why chocolate makes us feel
good, adding to its mystery. A standard 45g bar of dark chocolate contains 12% of
the Recommended Dietary Allowance (RDA) of iron. Iron is essential in transporting
oxygen in the blood to all parts of the body, and an iron deficiency can cause
anaemia.
When cocoa is combined with ingredients such as milk, sugar, fruit and nuts
significant quantities of nutrients are provided- giving nutrition and energy as well as
great taste. But as the products are often high in fats and sugars it is important that
consumption is in moderation and that such products are consumed infrequently as
"treats" - but are certainly not "empty calories"
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20. M yths and Facts
Eating Chocolate Is Inconsistent With A Healthy Diet
With so much going for it, it's unfortunate that chocolate is often surrounded by
myths and misconceptions that result in its unjustified reputation as an 'unhealthy'
food. Scientists are beginning to dispel common myths about the concerns of eating
chocolate, demonstrating the ways in which chocolate can make us feel good when
enjoyed in moderation. One example of this would be the high levels of
cardiovascular friendly antioxidants contained in chocolate - in fact, dark chocolate
in particular contains more antioxidants by volume than red wine. There is no need
to exclude chocolate from a healthy diet as long as it is consumed responsibly and in
the context of the dietary needs of the individual and their energy balance.
Chocolate causes Tooth Decay
Chocolate has sometimes been blamed for tooth decay but there is research
showing that chocolate isn't as bad for your teeth as people think. Research has
indicated that naturally occurring substances in cocoa, such as tannins, may play a
role in inhibiting plaque formation.
Eating Chocolate gives you spots
Despite the persistence of this myth, research by the Pennsylvania School of
Medicine and also by the U.S. Naval academy13 found no link between acne and
chocolate consumption.
Chocolate has no nutritional value
Few people know that chocolate actually contains a number of important nutrients.
Milk chocolate is a source of potassium, calcium and magnesium, while being low in
sodium. It also provides us with vitamins - including B1, B2 and E.
Chocolate is Aphrodisiac
Though not definitively proven, recent research has indicated that this might not be
a myth after all! A study conducted by San Raffaele hospital, Milan has found greater
levels of sexual desire in the group that reported daily chocolate intake as opposed
to those who did not eat chocolate.
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21. H istory Of Cadbury
The history of Cadbury as manufacturers of chocolate products in Birmingham dates
back to the early part of the 19th century, when John Cadbury opened a shop in the
centre of the city, trading as a coffee and tea dealer. Soon a new side-line was
introduced - cocoa and drinking chocolate, which he prepared himself using a mortar
and pestle.
The founding of the Cadbury business dates back to 1831 when John Cadbury first
made cocoa products on a factory scale in an old malt house in Crooked Lane,
Birmingham.
In 1847 the business moved to larger premises in Bridge Street, which had its own
private canal spur linking the factory via the Birmingham Navigation Canal to the
major ports of Britain.
Business continued at the Bridge Street site for 32 years and by 1878 the workforce
had expanded to 200, so more space was needed. This heralded the move to
Bournville and the building of what is now one of the largest chocolate factories in
the world. John Cadbury retired in 1861 handing over the business to his eldest sons
Richard and George. It is to their leadership that the success of the enterprise is
owed as the company prospered.
The origin of the group goes back over two centuries. Some of the most loved
international brands are from the stable of Cadbury Schweppes – Cadbury Dairy
Milk, Dr Pepper, Flake, Trebor Basset, Snapple, Motts and with the acquisition of
Adams, brands like - Halls, Clorets, Trident, Dentyne and Bubbas bubble gum range
will now be part of the Group’s portfolio. 55,000 people populate the humming
offices of Cadbury Schweppes across the globe.
Cadbury Schweppes is the No.1 confectionery and third largest soft drinks company
in the world. They manufacture, market and distribute branded chocolates,
confectionery and beverages that bring smiles to millions of consumers across 180
countries.
The Core purpose of Cadbury Schweppes is “Working better together to create
brands people love”.
They are respectful of the social and natural environment in which they operate;
supportive of our consumers, customers and colleagues; proud of our heritage, and
passionate about success.
This passion for success led to the company expanding its business overseas and
thus bringing the flavour of chocolate to people and tickling their taste buds.
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22. Cadbury’s expanded their business to many countries like Australia, America,
Canada, India etc.
When Cadbury Dairy Milk chocolate was first introduced in the early 1900s it made
an immediate impact quickly becoming the market leader. The success story has
continued. It is still the top selling chocolate brand in the country and the Cadbury
Mega Brand's broad family of products today has an international retail value
approaching US$1billion.
Did You Know?
As an international brand Cadbury Dairy Milk carries the same distinctive image
all over the world. Wherever you buy a bar of Cadbury Dairy Milk the pack
design will be exactly the same, only the language will be different. The famous
slogan "glass and a half of full cream milk in every half pound" with the picture
of milk pouring into the chocolate bar, is one of the all-time greats of British
advertising.
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23. H istory of Kraft food INC.
All About Kraft
Kraft Foods Inc. is a company with many different roots and
founders, all sharing a commitment to quality, a willingness to take risks and a spirit
of innovation. Among the products now sold by Kraft Foods Inc. are so many “firsts”
and innovations that a history of the company is almost a history of the food
industry. Kraft traces its history to three of the most successful food entrepreneurs
of the late 19th and early 20th centuries —
J.L. Kraft, who started his cheese business in 1903;
C.W. Post, who founded Postum Cereal Company (later renamed General Foods
Corporation) in 1895; and
Oscar Mayer, who began his meat business in 1883.
The Story of J.L. Kraft
The history of KRAFT goes back to 1903, when, with $65 in capital, a rented wagon
and a horse named Paddy, J.L. Kraft started purchasing cheese at Chicago’s Water
Street wholesale market and reselling it to local merchants. Within a short time, four
of J.L. Kraft’s brothers joined him in the business, and, in 1909, they incorporated as
J.L. Kraft & Bros. Co. In 1914, J.L. Kraft and his brothers purchased their first cheese
factory in Stockton, Illinois. In 1915, they began producing processed cheese. J.L.
Kraft’s method of producing processed cheese was so revolutionary, in 1916 he
obtained a patent for it and in 1917 the company started supplying cheese in tins to
the U.S. Government for the armed forces in World War I.
J.L. Kraft followed up on his success with processed cheese in tins by introducing or
acquiring many additional products, including processed cheese in loaves, VELVEETA
Process Cheese, PHILADELPHIA Cream Cheese, MIRACLE WHIP Salad Dressing and
KRAFT DINNER Macaroni and Cheese.
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24. The success of J.L. Kraft and his company was noted by Thomas McInnerney,
founder of National Dairy Products Corporation. In 1930, Kraft-Phenix Cheese
Corporation (as it was then called) was acquired by National Dairy Products
Corporation. Kraft continued to operate as an independent subsidiary of National
Dairy Products Corporation for many years, but eventually was absorbed into the
operating structure of the parent company, which changed its name to Kraftco
Corporation in 1969 and again to Kraft, Inc. in 1976.
The Story of C. W. Post
In 1895, C.W. Post made his first batch of POSTUM Cereal Beverage in a little white
barn in Battle Creek, Michigan. With that step he entered the brand new retail cereal
industry. In 1897, he introduced POST GRAPE-NUTS Cereal, one of the first ready-to-
eat cold cereals. He followed that success with a corn flakes product in 1904 which
he called ELIJAH’S MANNA (renamed POST TOASTIES in 1908). In 1911, Post
introduced a refinement of his original product, POSTUM Instant Cereal Beverage.
Post used marketing techniques that are now considered industry standards, but
which were innovative for their time.
Post died in 1914, but Postum Cereal Company continued to follow the formula for
success which he had established: selling high-quality, nutritious cereal products
through marketing and advertising techniques that appealed to the common man
and woman. Then, in 1925, the company acquired the Jell-O Company, marking the
start of an aggressive acquisition effort. Over the next four years, Postum acquired
over a dozen companies and expanded its product line to more than 60 products.
Some of the products acquired at that time included MINUTE Tapioca, BAKER’S
Chocolate, BAKER’S Coconut, LOG CABIN Syrup, MAXWELL HOUSE Coffee and
CALUMET Baking Powder.
By the time Postum purchased the rights to Clarence Birdseye’s new method for
producing quick-frozen foods in 1929, a change of name seemed appropriate. So
the name of Birdseye’s company was changed from General Foods Company to
Frosted Foods Company and the name of the parent corporation was changed to
General Foods Corporation. (The BIRDSEYE business was sold to Dean Foods
Company in 1993.)
Through the years, the management at General Foods refined and improved its
product line in part through acquisitions and divestitures and, in part, through
research and development. Internally-developed products included JELL-O Pudding
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25. and Pie Fillings (1936), MAXWELL HOUSE Instant Coffee (1945), TANG Flavour
Crystals (1957), DREAM WHIP Topping Mix (1957) and COOL WHIP Whipped
Topping (1966).
In 1981, General Foods expanded into a new product category by acquiring Oscar
Mayer & Co., a leader in the processed meats industry. Four years later, General
Foods Corporation was acquired by Philip Morris Companies, Inc.
After Philip Morris acquired Kraft, Inc. in 1988, the two food subsidiaries were
combined to form Kraft General Foods, Inc. in 1989.
The Story of Oscar Mayer
Oscar F. Mayer was a Bavarian immigrant who started his career in 1873 at the age
of 14 as a “butcher’s boy” in a Detroit meat market. By 1883 he had saved up
enough money to lease a failing Chicago meat market.
With the help of his brothers Gottfried and Max, he made the business such a
success that the landlord refused to renew the lease when it came up for renewal
in 1888. So that year Oscar Mayer and his brothers started again from scratch, this
time building their own meat market just down the street from the original leased
market.
As a result of the Mayer brothers’ attention to quality and customer service, their
original landlord was soon out of business.
Extended product shelf life enabled Oscar Mayer to expand the distribution of its
products across the country.
For nearly a century, Oscar Mayer remained an independent company owned
primarily by descendants of the Mayer brothers who started it all. Then in 1981,
Oscar Mayer stockholders elected to sell their company to General Foods
Corporation, which had the resources to stimulate even further growth for the
business. Four years later, Philip Morris Companies, Inc. acquired General Foods
Corporation, and in 1989 merged General Foods with the newly acquired Kraft, Inc.
The Story of Nabisco
The history of Nabisco starts in 1792, when Pearson & Sons Bakery opened in
Massachusetts to make “pilot bread,” a tough and durable biscuit to sustain sailors
on long journeys. Then, in 1801, the Josiah Bent Bakery baked their first biscuit
other than pilot bread. They were called crackers because of the sound they made
when someone bit into them. In 1889, believing he could improve quality and
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26. efficiency through combination, William Moore united Pearson, Bent and six other
eastern bakeries into the New York Biscuit Company.
For several decades National Biscuit Company, often referred to by the abbreviation
N.B.C., grew by acquiring companies such as the F.H. Bennett Company, maker of
MILK-BONE Pet Products, and the Shredded Wheat Company, maker of TRISCUIT
Wafers and SHREDDED WHEAT Cereal.
During this time, the company was also busy developing numerous cookies and
crackers, many of which continue to be family favorites in the 21st century, such as
OREO Cookies, RITZ Crackers, and HONEY MAID Graham Crackers.
National Biscuit Company also expanded outside the United States with the
acquisition of Christie Brown & Company in Canada.
The name Nabisco first appeared on a new sugar wafer product in 1901, but the
corporate name did not change until 1971. In 1981 Nabisco merged with Standard
Brands, maker of PLANTERS Nuts, LIFESAVERS Candies and other successful
businesses.
About four years later, Nabisco Brands merged with R.J. Reynolds and added GREY
POUPON and
A.1. brands to its portfolio. Philip Morris Companies, Inc. acquired Nabisco in
December of 2000 and merged it with Kraft Foods, Inc.
The Story of W.M. Christie
William Mellis Christie — a man who changed the course of the Baking Industry —
came to Canada from Huntley, Aberdeenshire, Scotland at the age of 19 in the year
1848. He had apprenticed to the baking business in Turriff, Aberdeenshire for four
years and, finding the prospects of the economy too limited, decided to move to
Toronto where he worked as a baker. In September of 1849 a partnership was
formed by James Mathers and Alexander Brown with William Christie as an assistant
Baker and Traveling Salesman.
When Mr. Mathers retired in 1850, Alexander Brown took William Christie into the
partnership. In 1853, Alexander Brown retired to the country and left the business
with William Christie. In 1861, Christie suffered financial setbacks and Brown
returned to the business which then adopted the name Christie, Brown & Company.
As of January, 1986 Christie Brown & Co. and Associated Biscuits of Canada
integrated. Christie Brown & Co. now operates five Biscuit Bakeries in Toronto and
Montreal, producing such well known products as Oreo Cookies, Premium Plus
Cadbury | Kraft Food INC. | The Merger | Emotional Association | Youth | Mumbai 26
27. Crackers and Ritz Crackers; Peek Frean Fruit Creme Cookies; Dad’s Oatmeal
Cookies, David Strawberry Tarts and Harnois Winsor Cookies.
Kraft Foods Inc. today
In January 1995, Kraft General Foods became Kraft Foods, Inc. and was reorganized
into a single operating company. Kraft Foods continues to grow and change to meet
changing consumer needs, in part by building on its history — the legacy of its well-
known brands, the character of its founders and the dedication of its employees.
The company has continued to build on the innovative spirit of its past, with new
products such as low-fat and fat-free products in a variety of categories.
It has also grown through acquisitions, including BOCA BURGER and BALANCE BAR
in early 2000, and the family of Nabisco brands in December of 2000. Kraft Foods
Inc.’s product portfolio is one of the finest in the world, including more than
70 major brands such as KRAFT Cheeses, MAXWELL HOUSE and NABOB Coffees,
POST ready-to-eat Cereals, OREO Cookies, RITZ Crackers, LIFESAVERS Candies,
PLANTERS Nuts and Snacks, JELL-O Desserts, KOOL-AID Beverages, PHILADELPHIA
Cream Cheese, TOMBSTONE Pizza, STOVE TOP Stuffing Mixes and MIRACLE WHIP
Salad Dressing.
And on 2nd February, 2010 Kraft food INC. acquired its single most giant competitor,
Cadbury | Kraft Food INC. | The Merger | Emotional Association | Youth | Mumbai 27
28. I mportant Dates
1765: A Dorchester, Massachusetts, physician, Dr. James Baker, went into
partnership with a Irish chocolate-maker, John Hannon and made America's first
chocolate mill.
1780: The mill made the famous BAKER'S chocolate.
1831: John Cadbury first made cocoa products on a factory scale in an old malt
house in Crooked Lane, Birmingham.
1847: The business moved to larger premises in Bridge Street, which had its own
private canal spur linking the factory via the Birmingham Navigation Canal to the
major ports of Britain.
1861: John Cadbury retires, handing over the business to his eldest sons Richard
and George
1903: J.L. Kraft started a wholesale cheese business in Chicago.
1905: YUBAN coffee blend was created by John Arbuckle.
1906: Oscar Mayer is one of the first meatpackers to obtain the Federal Meat
Inspection stamp of approval.
1907: Legend claims that when President Theodore Roosevelt was served a cup of
MAXWELL HOUSE coffee and he proclaimed that it was "GOOD TO THE LAST DROP."
1914: J.L. Kraft & Bros. Co. opened their first cheese factory in Stockton, Illinois,
within a year they begin producing process cheese in tins. The U.S. government
provided cheese in tins for the armed forces during World War I.
1921: Louis Rich bought a truck and started his business in Rock Island, Illinois.
1927: Edwin Perkins created a powered fruit drink called KOOL-ADE, later called
KOOL-AID. Perkins created KOOL-AID from his first product the popular soft drink
syrup called Fruit Smack.
1928: Kraft introduced VELVEETA process cheese.
1933: Kraft introduced MIRACLE WHIP salad dressing at Chicago's Century of
ProgressWorld's Fair.
Cadbury | Kraft Food INC. | The Merger | Emotional Association | Youth | Mumbai 28
29. 1937: KRAFT Macaroni and Cheese Dinner was introduced with the advertising
slogan of "Make a meal for 4 in 9 minutes."
1946: MAXWELL HOUSE instant coffee was introduced to the American public after it
was used by the armed forces in World War II.
1950: KRAFT Deluxe process cheese slices, the first commercially packaged sliced
process cheese was introduced.
1952: CHEEZ WHIZ pasteurized process cheese spread was introduced.
1954: Kraft introduced CRACKER BARREL brand natural cheese.
1957: The General Foods Corporation introduced TANG, breakfast beverage crystals.
1981: General Foods Corp. bought Oscar Mayer & Co.
1983: Kraft introduced LIGHT N' LIVELY lowfat yogurt, the first US yogurt in a six-
pack.
1989: Philip Morris Companies combined Kraft, Inc. and General Foods Corporation
to form Kraft General Foods, the largest food company in the U.S.
1989: DI GIORNO brand refrigerated pastas and sauces were introduced.
1990: Cadbury Dairy Milk was introduced.
1993: Kraft General Foods acquired NABISCO ready-to-eat cold cereals from RJR
Nabisco.
1995: Kraft General Foods was renamed Kraft Foods, Inc. DI GIORNO RISING CRUST
pizza was introduced.[
1997: Sparkling White Grape flavored JELL-O gelatin was introduced in celebration of
the brand's 100th anniversary.
2010: Cadbury was acquired by Kraft food INC.
Cadbury | Kraft Food INC. | The Merger | Emotional Association | Youth | Mumbai 29
30. Chapter 3: Brand Prism – Cadbury
‘In much of society, research means to investigate something you do
not know or understand.’
– Neil Armstrong
Cadbury | Kraft Food INC. | The Merger | Emotional Association | Youth | Mumbai 30
31. B
rand Prism – Cadbury
Purple
Young
White
Beautiful
Brown color
Slim & sleek
Relationship Culture
Friendly Chocolate that suits
Caring the taste of all the
Loyal ages
Continues innovation
to provide different
flavors and taste to
the customers
Cadbury has created a
I Feel Young And Alive
360O Ad Campaigns for
people across all the
age groups
Cadbury | Kraft Food INC. | The Merger | Emotional Association | Youth | Mumbai 31
32. Chapter 4: Company Overview
‘Research is what I'm doing when I don't know what I'm doing.’
– Wernher von Braun
Cadbury | Kraft Food INC. | The Merger | Emotional Association | Youth | Mumbai 32
33. C ompany 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 have operations in more than 70 countries.
In India, Cadbury began its operations in 1948 by importing chocolates. After 60
years of existence, it today 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). 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, Éclairs 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
Cadbury | Kraft Food INC. | The Merger | Emotional Association | Youth | Mumbai 33
34. 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 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 tree!
Today, as a combined company with an unmatched portfolio in confectionery,
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”!
C adbury World Wide
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. They are currently the world's No.1 confectionery and biscuit company.
They are also the world’s second-largest food company with sales in approximately
160 countries. They employ approximately 140,000 people.
With an incredible brand portfolio, they contrive to make a delicious difference,
today and everyday.
Heritage: They have come a long way since J.L Kraft started selling cheese from a
horse drawn wagon in 1903. Hard work, imagination and commitment to bring the
world its favorite foods has helped them grow into a company that touches more
than a billion people in 160 countries. Everyday. One at a time.
Some fast facts on the combined company:
Global Reach
Approximately $50 billion in revenues
25%+ of global revenue from emerging markets
1 in global confectionery
1 in global biscuits
More than 50% of global revenue from snacks and confectionery
Brand Portfolio
11 brands with more than $1 billion in revenue
70+ brands with more than $100 million in revenue
40+ brands over 100 years old
Cadbury | Kraft Food INC. | The Merger | Emotional Association | Youth | Mumbai 34
35. C orporate Social Responsibility
Migratory birds stop over at our Bangalore factory
Water is a precious resource. As part of Cadbury India's efforts
to continuously increase 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 some of the migratory birds!
Dam at Bangalore factory
Pioneering cocoa cultivation in India
Since 1974 Cadbury has 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 hybrids that improve the cocoa yield.
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.
A Wards
Asian Marketing Effectiveness Awards 08
Asian Marketing Effectiveness Awards 2008 for Bournvita
Folk/Fusion campaign - GOLD award for the "Best Insights and
Strategic Thinking" and SILVER award for the 'Most Effective Use of Advertising'.
The Asian Marketing Effectiveness Awards are the region's most prestigious awards
that celebrate resourceful Asian marketing. They are designed to set the standard
for effective marketing within the region, and aim to uncover the campaigns that
show results through innovative spirit and combining creativity with effectiveness to
build world class brands.
Cadbury India has been ranked as the 7th Great Place to Work and the
No. 1 FMCG company in India in 2008, by the Great Place to Work
Institute.
Cadbury | Kraft Food INC. | The Merger | Emotional Association | Youth | Mumbai 35
36. This study, in its fifth year in India , has a presence in 30 countries and is the oldest,
most comprehensive and respected workplace study worldwide. Over two hundred
companies throughout India participated in the survey, which measured the degree
of satisfaction of employees with their place of work and picked out the best
working environments. This is the fourth time we have featured amongst the Great
Places to Work in India . We were ranked 10th in 2003, and were among the top 25
in 2004 and 2005
The prestigious ABBY awards, held in March, recognise creative
excellence in the Indian Advertising Industry. The Ulta Perk campaign
won four Silver Awards in total and the Cadbury Dairy Milk Campaign,
Miss Palampur, also won a Silver Award. This year Cadbury also
sponsored the new 'Young ABBY' Award.
Cadbury India has been ranked 5th in the FMCG sector, in a survey on India's
most respected companies by sector conducted by Business World magazine
in 2007.
The 'Great Place to Work' Institute study listed Cadbury India as a Great Place to
work in 2005 for the third time in a row. Incidentally, Cadbury was in the Top 25 in
2003, 2004 and 2005 too.
Cadbury | Kraft Food INC. | The Merger | Emotional Association | Youth | Mumbai 36
37. Chapter 5: Brands
‘All my knowledge comes from research.’
– Stan Sakai
Cadbury | Kraft Food INC. | The Merger | Emotional Association | Youth | Mumbai 37
38. C adbury 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.
Journey
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'.
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.
Cadbury | Kraft Food INC. | The Merger | Emotional Association | Youth | Mumbai 38
39. 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.
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.
Did You Know?
Cadbury Dairy Milk emerged as the No. 1 most trusted brand in Mumbai for
the 2005 edition of Brand Equity's Most Trusted Brands survey.
During the 1st World War, Cadbury Dairy Milk supported the war effort. Over
2,000 male employees joined the armed forces and Cadbury sent books,
warm clothes and chocolates to the front.
Cadbury | Kraft Food INC. | The Merger | Emotional Association | Youth | Mumbai 39
40. P erk
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' snack zoomed right into the hearts of
teenagers.
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 define its role in the category.
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.
In the new millennium, Cadbury Perk moved beyond just owning 'hunger' to a
"Kabhi bhi kaise bhi" position, because the urge for Cadbury Perk could strike
anytime and anywhere.
With the rise of more value-for-money brands in the wafer chocolate segment,
Cadbury Perk unveiled two new offerings - Perk XL and XXL.
The temptation to have more of Cadbury Perk was made even greater with the
launch of Cadbury Perk Minis in 2003 for just Rs. 2/-
In 2004, with an added dose of 'Real Cadbury Dairy Milk' and an 'improved wafer',
Perk became even more irresistible. The product was supported in the market with a
new look and a new campaign. The advertisement spoke of the irresistible aspect of
the brand, with 'Baaki sab Bhoola de' becoming the new mantra for Cadbury Perk.
Did you know?
Cadbury Perk advertising has been a launch pad for Bollywood stars -
PreityZinta, Raageshwari, Gayatri Joshi and Amrita Rao, were all Perk
models before they made it big on cinema screens.
Cadbury | Kraft Food INC. | The Merger | Emotional Association | Youth | Mumbai 40
41. 5 Star
Chocolate lovers for a quarter of a century have indulged their taste buds with
a Cadbury 5 Star. A leading knight in the Cadbury portfolio and the second largest
after Cadbury Dairy Milk with a market share of 14%, Cadbury 5 Star moves from
strength to strength every year by increasing its user base.
Launched in 1969 as a bar of chocolate that was hard outside with soft caramel
nougat inside, Cadbury 5 Star has re-invented itself over the years to keep satisfying
the consumers taste for a high quality & different chocolate eating experience.
One of the key properties that Cadbury 5 Star was associated with was its classic
Gold colour. And through the passage of time, this was one property that both, the
brand and the consumer stuck to as a valuable association.
Cadbury 5 Star was always unique because of its format and any communication
highlighting this uniqueness, went down well with the audiences. From 'deliciously
rich, you'd hate to share it' in the 70's, to the 'lingering taste of togetherness'&'Soft
and Chewy 5 Star' in the late 80's, the communication always paid homage to the
product format.
More recently, to give consumers another reason to come into the Cadbury 5 Star
fold, Cadbury 5 Star Crunchy was launched. The same delicious Cadbury 5 Star was
now available with a dash of rice crispies.
Cadbury 5 Star & Cadbury 5 Star Crunchy now aim to continue the upward trend.
This different and delightfully tasty chocolate is well poised to rule the market as an
extremely successful brand.
Did you know?
Cadbury 5 Star played an adept cupid for young couples in love in
the 70's. In fact, Cadbury 5 Star was a way of professing undying
love for the significant other.
Cadbury | Kraft Food INC. | The Merger | Emotional Association | Youth | Mumbai 41
42. C elebration
Cadbury Celebrations was aimed at replacing traditional
gifting options like Mithai and dry- fruits during festive seasons.
Cadbury Celebrations is available in several assortments: An
assortment of chocolates 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
butterscotch and caramels.
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.
Cadbury Celebrations has become a popular brand on occasions such as Diwali,
Rakhi, Dussera puja. It is also a major success as a corporate gifting brand. The
communication is based on the emotional route and the tag line says "rishte pakne
do" which fits with the brand purpose of strengthening your relationships with
something sweet
Did you know?
The "Rishte Pakne do" jingle was penned by noted writer Gulzar.
Cadbury | Kraft Food INC. | The Merger | Emotional Association | Youth | Mumbai 42
43. T
emptations
Ever see people hide away their
chocolate since they don’t want to share
it! If you have, then it’s likely to be a bar
of Cadbury Temptations! Cadbury
Temptations is a range of delicious
premium chocolate in fiveflavours.
Research revealed a niche segment of
“ chocoholics” - those exposed to
international chocolates and those who
love a variety of chocolates but possibly
find the price of international chocolates too high. Cadbury Temptations is a range
targeted at this segment of discerning chocolate lovers.
The Cadbury Temptations range is available in 5 delicious flavour variants - Roast
Almond Coffee, Honey Apricot, Mint Crunch, Black Forest and Old Jamaica. With its
international quality chocolate Temptations soon became a popular brand for
"chocoholics"
The advertising positioned Cadbury Temptations as a chocolate range so delicious
that it was "too good to share”
Did you know?
Cadbury Temptations advertising won an advertising
effectiveness -
EFFIE award in 2001
Cadbury | Kraft Food INC. | The Merger | Emotional Association | Youth | Mumbai 43
44. clair
É Eclairs was first discovered by a local confectionery firm in London,England in
the 1960s. The firm then became part of Cadbury in 1971makingCadbury Eclairs the
second largest brand in the company.The experience of eating a Cadbury Dairy Milk
Eclair is truly uniquebecause of its creamy caramel exterior and rich Cadbury Dairy
Milkchocolate at the center. In 2006 Cadbury Dairy Milk Eclairs launcheda crunchy
Eclair with a hard caramel outside and delicious Cadbury Dairy Milk chocolate inside
called Cadbury Dairy Milk Eclairs Crunch.
Journey:
In India, Cadbury Dairy Milk Eclairs has been the
most preferred brand inthe Eclairs category for
years and has always been a favourite with
consumers.
Eclairs advertising over the years have talked
about the mesmerizing taste of Eclairs because of the Cadbury Dairy Milk chocolate
it contains at its center. The 'Kar De Dil Pe Jadoo' campaign illustrated this in a
youthful college context. The Eclairs Crunch variant has also had an encouraging
response from both teens and pre-teens. Currently, the chewy and the crunchy
variants are both enjoyed by the Eclair consumer.
Did you know?
A sign in front of Nigeria factory describes Choclairs as "the
sweet with heart on the inside”.
Cadbury | Kraft Food INC. | The Merger | Emotional Association | Youth | Mumbai 44
45. G ems
Cadbury Gems occupies a very
special place in the hearts of kids; present
and past. Its unique shape, size, colours
and format instantly set it apart. These
tasty, colourful, chocolate buttons have
become an integral part of the lives of
both children and adults.
Launched in 1968, Cadbury Gems has
captured the fancy of children for more
than 4 decades now. Supported by a number of popular TVCs since the Eighties,
Gems is uniquely positioned because of its chocolate taste, colourful buttons and
multiplicity. The taste and fun associated with eating Cadbury Gems and the joy of
sharing it with friends has also made the brand a source of nostalgia for older
consumers. Simply put, eating Gems brings happiness, fun and mischief to a kid's
world. Which is why, Cadbury Gems has always had Fun and Masti as the proposition
in all its communication.
Gems, available in a Pouch and a Carton, is also available in a Re. 1 pouch.
Do you know?
The colourful world of Cadbury Gems has six colours
– Red, Green, Pink, Yellow, Orange and Blue.
Cadbury | Kraft Food INC. | The Merger | Emotional Association | Youth | Mumbai 45
46. H alls
Halls accounts for 50% of international cough drop sales and is the leading
sugar confectionery brand in the world. In 1930’s, the Hall brothers invented its
Mentho-Lyptus formula, using a combination of menthol and eucalyptus, and began
producing cough drops. The cough drops were introduced into the US during the
mid-1950s. Warner-Lambert recognised the potential of the product and acquired
Halls in 1964. In 1971, Warner Lambert began selling Halls under the Adams family,
and the first national television campaign was aired in the US & the results were a
resounding success.
Our Journey:
Halls was first launched in India in 1968 & soon established itself
as
a ‘therapeutic’ candy competing in the cough lozenge market.
Halls has been sold in India as part of the Pfizer & Warner Lambert networks before
it came into the Cadbury fold in 2003 as part of a global merger with Adams
Confectionery.
Halls has had a colourful advertising history in India & was infact, one of the earliest
brands to advertise on television in India. In the 1980’s, Ad’s featuring Meenakshi
Sheshadri and later, Vijeta Pandit on its unique ‘vapour action’ formula with a classic
Halls Jingle were aired which established the brand firmly in the market. In the 90’s,
Halls advertising adopted a different take with its ‘Traffic Jam’ Ad where Halls
restores order to a situation of chaos & the early 2000’s saw Halls advertising on the
‘refreshment’ platform. Over the years Halls has been strongly positioned on the`
soothes sore throat ’ benefit in the consumers mind.
Halls continues to be one of the leading mint brands in India even in the changed
competitive context.
Did You Know?
Halls is marketed in 24 different countries around the world & is
offered in over 26 flavours.
Halls produced the largest sweet in the world in 1964. Weighing
76kilos, the sweet was put on exhibition in New York.
Halls accounts for more than 50% of international cough drop sales.
In 2002, people consumed 100,000 tons of Halls!
Cadbury | Kraft Food INC. | The Merger | Emotional Association | Youth | Mumbai 46
47. Chapter 6: Advertisements
‘Advertising people who ignore research are as dangerous as generals
who ignore decodes of enemy signals.’
– David Ogilvy
Cadbury | Kraft Food INC. | The Merger | Emotional Association | Youth | Mumbai 47
48. A dvertisements
Cadbury Dairy Milk launches a new
campaign Shubh Aarambh
Cadbury India, launched a new campaign,
“Shubh Aarambh”. This campaign is based
on the concept of the Indian tradition of
having
something sweet before every auspicious
occasion, with the belief that it leads to a
favourable outcome. Over the years, CDM
has been a special part of every Indian's
moments of happiness, joy and
celebration. This year, for the first time
ever, CDM urges consumers to also enjoy
their much loved chocolate before embarking on an important task, in anticipation
of a successful outcome.
Over the last six decades, CDM has always given its consumers numerous reasons to
celebrate every joyous occasion. Its campaigns right from, “The real taste of life’ to
‘Kuch meetha ho jaye’ have been instrumental in bringing CDM closer to the heart
of every Indian chocolate aficionado. With the more recent “Pappu pass ho gaya”
and “Miss Palampur” campaigns, CDM created a special space for itself during
moments of celebration amongst large communities. The latest “Payday” campaign
gave CDM lovers another moment of happiness that life has to offer. This year,
“Shubh Aarambh” extends within the "Kuch Meetha Ho Jaye" space, urging
consumers to enjoy a bar of CDM stating, “Koi bhi shubh kaam karne se pehle kuch
meetha khalena chahiye. Kaam acha hota hai”.
The new commercial opens with a young girl standing at a bus stop relishing a bar of
CDM, as a young boy comes up to her and requests her for a cube of the chocolate.
Astonished, the girl asks if she knows him, to which the he nods in negation. To this,
the girl nonchalantly then asks him for a reason for her to share her CDM. The boy
then explains to the girl that his mother tells him that before starting anything
auspicious, it is a must to have something sweet which then leads to success. The girl
ponders over this, only to then reluctantly give him a cube of CDM. After the boy
relishes the chocolate, the girl inquisitively questions him as to what auspicious work
was he planning to do. To this, with eyes of hope, the boy promptly tells her that he
was thinking of dropping her back home. Amazed, the girl looks at him, and the boy
smiles sweetly at her. The film closes with the coy girl blushing and the boy smiling
having silently understood her reciprocation. The VO then states, “Shubh Aarambh.
Kuch Meetha Ho Jaye
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49. Cadbury 5 Star launches its new television commercial
To further build on the strong connect that patrons share with Cadbury 5 Star, the
brand recently launched its new television commercial. In line with its “Jo khaye,
kho jaaye” advertising campaign, the commercial takes the brand proposition one
step forward, of losing one self in every bite of the delicious Cadbury 5 Star. With
humour as the trademark of all its communication, the film uses friendship as a
platform to reinforce the brand’s appeal amongst teenagers.
Speaking of the campaign, a Cadbury official said, “Cadbury 5 Star is the second
largest brand in the Indian chocolate market after Cadbury Dairy Milk and its unique
involving taste with Chocolate, Caramel and Nougat makes for sheer indulgence.
Getting lost in the taste of 5 Star has been a successful platform for the brand for last
3 years, and over several varied creative executions on this platform, the brand has
posted high double digit growths consistently year after year."
This TVC follows the ‘thief’ commercial, which urged consumers to be good citizens
with its tagline “Ek acche nagrik bane, 5 Star khane walo ki madat karein!”. Taking
the theme “Jo khaye, kho jaaye” forward, the new commercial showcases how two
long lost friends Ramesh and Suresh are ecstatic to meet each other, only to keep
forgetting their meeting after getting lost in every bite of Cadbury 5 Star.
Speaking on the creative thought of the commercial, Abhijit Avasthi, National
Creative Director, Ogilvy & Mather India said, “The 'Lost in the taste of 5 Star'
proposition and the quirky brand of humour has been highly appreciated in the past.
So we wanted to continue the theme with yet another interesting rendition.”
The TVC opens with Ramesh and Suresh who happen to visit the same local stall to
buy a Cadbury 5 Star. As the two unwrap their bars of Cadbury 5 Star, they
coincidently look at each other. Just then, they realize that they are long lost friends
and excitedly embrace each other. As they begin to chat, they take a bite of their bar
of Cadbury 5 Star. Instantly, they get lost in the taste of the chewy chocolate. This
happens for the second time. And it happens for the third time too. The two friends
are ecstatic to meet each other, after getting lost in the taste of the Cadbury 5 Star.
And they embrace each other again. The commercial closes with the stall owner
baffled, with the VO stating “Cadbury 5 Star ki har bite mein hai Chocolate, Caramel
aur Nougat. Toh bus khaiye, aur sab….bhool jaiye!”
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50. Sapno se tu race laga le with Perk with Glucose Energy
Cadbury India’s iconic youth brand Perk - packed with Glucose Energy has launched a
new TVC targeting the Youth on the run.
Teens today lead a hectic life that requires them to be on the go, chasing their
dreams – moving from one activity to another nonstop through the day and they do
encounter moments when they crave for an instant recharge.
The new Perk TVC with the tag line ‘Sapno se tu race laga le’ targeted at 14-18 year
olds beautifully captures a typical low moment in a busy day spent chasing one’s
dreams and shows how Perk with glucose energy fulfills the need for an instant
energy recharge.
V. Chandramouli, Executive Director, HR & Strategy, Cadbury commenting on the
campaign said, “Perk with Glucose Energy is the result of an extensive in-house
research program that is aimed to appeal to consumers taste buds and provide an
energy benefit as well. Through this new communication we aiming to drive home
the message of tasty re-charge of energy"
The new TVC for Perk opens with a boy waking up early in the morning and rushing
to his college. He moves from one activity to another through the entire day. Later,
Cadbury | Kraft Food INC. | The Merger | Emotional Association | Youth | Mumbai 50
51. in the evening he arrives at a rock show but as he sits on the drummer’s seat to
perform, he feels totally exhausted. A band member asks him if he will be able to
perform. At this moment, the boy takes out the new Perk from his drum sticks kit
and after consuming the bar feels energised and gives a power packed performance
in front of a huge crowd. The film ends with the bass drums electrified with Cadbury
Perk written on it.
Cadbury Perk is among the leading brands from the Cadbury stable and since its
launch in 1996 has been a preferred taste of casual snacking with its wafer construct.
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52. Cadbury 5 Star launches a new TVC for its 'Fruit & Nut' variant
Cadbury 5 Star, the second largest chocolate brand in the Cadbury portfolio, has
launched a new TVC for its variant 5 Star Fruit & Nut to strengthen the indulgent 5
Star chocolate experience.
Launched in 1969 as a bar of chocolate that was hard outside with soft caramel
nougat inside, Cadbury 5 star has re-invented itself over the years to keep satisfying
the consumers taste for a high quality and different chocolate eating experience.
The new TVC which revolves around the theme “Jo Khaye, Kho Jaaye” combines the
great taste indulgence of 5 Star Fruit & Nut and enhances credence to the brand
USP.
The TVC opens with a teacher taking class attendance. She calls out names of
students which are actually the ingredients of the product. After calling out the last
name she puts her pen down and looks at the class. She sees a bar of 5 Star Fruit &
Nut seated on one of the benches with the rest of the class empty. The teacher yells
at the class asking “Where are you all?” Again the bar of 5 Star Fruit & Nut is shown
sitting on the bench with the teacher looking at it totally surprised! A VO informs her
that she won’t be able to see chocolate, nougat, caramel, raisins, almonds and
cashew nuts as they all are inside 5 Star Fruit & Nut. The teacher eats the chocolate
and gets completely involved in its taste. The film ends with the teacher slapping the
bar of 5 Star Fruit & Nut.
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53. Commenting on the campaign, Sanjay Purohit, Executive Director – Marketing,
Cadbury India said, “The new TVC seeks to marry a consumer insight with the
product USP in a fun & humorous manner. The TVC will play a momentous role in
enhancing the brand connects with both brand loyalists and inquisitive potential
customers.”
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54. Cadbury launches CDM Silk
Smoother, Creamier and more curvy for the
divine melt-in-mouth experience
Mumbai, January 27, 2009: Cadbury India Ltd. recently announced the launch of
Cadbury Dairy Milk Silk its premium offering under the Cadbury Dairy Milk brand
(CDM). Smoother, creamier and chunkier the new CDM Silk chocolate has been
formulated to provide superior ‘eat’ experience.
Developed specially for the Indian consumer, the new CDM Silk
provides the most divine ‘Melt in the Mouth’ feel. CDM Silk is finer than the finest
chocolates and comes in a premium, internationally developed packaging.
Attractively priced at Rs. 49 for 69 gms and Rs. 99 for 160 gms bar the new CDM Silk
will be available in Milk chocolate, Roast Almond and Fruit & Nut variants.
Since its launch in 1948, CDM has been Cadbury’s flagship brand in India. CDM is the
gold standard for chocolates and stands for the best tasting chocolate amongst all
consumers. Over the years, CDM has successfully built a unique relationship with
consumers across age groups.
Sanjay Purohit, Executive Director - Marketing, Cadbury India Ltd. commenting on
the launch, said, “Our newest offering, CDM Silk has been specially formulated to
cater to the Indian consumers craving for smoother, creamier and finer chocolate
available internationally. Infact, the initial consumer feedback during the test
marketing has been very encouraging and many perceive CDM Silk to be superior to
other international chocolate brands available in the country.”
CDM Silk will be promoted extensively through a 3600 campaign created by Ogilvy &
Mather Advertising. The marketing communication will encompass TV, print,
outdoor and internet
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55. Cadbury Dairy Milk in an all new premium, international pack
Cadbury’s much loved flag-ship brand Cadbury Dairy Milk now comes to its loyal
consumers’ in a brand new, premium packaging. The change into a premium,
international packaging is the first in 7 years for the biggest chocolate brand in India!
The fine purple and gold packaging portrays the rich and creamy taste of Cadbury
chocolate. The smooth and sophisticated eating experience of India’s most loved
chocolate brand is creatively conveyed in the new international pack with the gold
Cadbury logo.
“The new international packaging while retaining the color purple, a color that has
become synonymous with Cadbury, creatively works the other graphic elements. The
gold Cadbury Logo embodies the premium and sophisticated eating experience of
Dairy Milk , while the real chocolate chunk on the pack enhances its chocolate
appeal. The new Dairy Milk logo against the all purple backdrop helps reinstates the
goodness of milk in CDM”, said Sanjay Purohit, Executive Director- Marketing ,
Cadbury India .
The chocolate that has a huge fan base across many countries will now also have a
more integrated look and feel. The new design is the international pack sold across
the world
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56. Cadbury Spreads Mithas and brings people closer this Diwali
Over the last six decades, Cadbury Dairy Milk (CDM) has always been a part of every
Indian's moments of happiness, joy and celebration. It’s many successful campaigns
– right from ‘Sometimes Cadbury can say it better than words’ to ‘Kuch meetha ho
jaye’ - have not just been instrumental in building the brand but have also helped
achieve phenomenal penetration into various markets. This festival season Cadbury
is embarking on a journey to encourage people to multiply their joy by making
others happy. This message is being conveyed through the new CDM Diwali
commercial which revolves around the theme “Iss Diwali Kyun na kuch Mithas ho
jaye”
The concept of Cadbury’s new Diwali campaign is to seed the thought of sharing and
bringing happiness to people’s lives, through the message “Iss Diwali Kyun ka kuch
Mithas ho jaye”. So be it a simple act of kindness or taking the effort to fulfill
cherished wishes, Cadbury hopes to motivate thoughts and behaviour that bring a
smile. The main focus of the TVC is to awaken & inspire people to appreciate those
people around them who contribute a lot to their lives but whose efforts they rarely
recognize and reciprocate.
Sanjay Purohit, Executive Director - Marketing, Cadbury India Ltd said, “This new
campaign gives a different and altruistic twist to Diwali celebrations. While keeping
the core promise of spreading happiness intact, the commercial encourages people
to spread happiness in a larger sphere- the community, thus creating “Mithass”! The
communication also gives the Indian tradition a refreshing new approach by bringing
the lives of the people closer and thus spreading cheerfulness and delight in each
ones hearts”.
The commercial begins with two postmen entering a quiet and dull neighborhood.
One of the postmen observes that the society is too silent for the festive season of
Diwali. Hence they decide to intentionally interchange the letters of the residents of
the society. As each resident start reading the letters, they are stunned to read the
good news, but soon realize that the letters belong to their neighbours. They
therefore come out to congratulate each other.
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57. According to Indian tradition good news is shared by distributing sweets. One of the
residents therefore insists that they should share good news with their neighbour
with Cadbury Dairy Milk chocolates. This results in people coming out of their homes
and sharing each other’s good news and happy moments with Cadbury Dairy Milk
chocolate.
The creative approach has taken the strategy forward beautifully. The commercial
captures the infectious happy mood of the residents of the society, and in that
context, pitches the brand in a compelling manner
Cadbury | Kraft Food INC. | The Merger | Emotional Association | Youth | Mumbai 57
58. CADBURY Bournville Fine Dark Chocolate
As India’s taste for indulgence grows, Cadbury today unveils an exciting product
innovation… offering consumers the sheer luxury and goodness of dark chocolate to
treat themselves.
Cadbury India Ltd. today announced the launch of
CADBURY BOURNVILLE FINE DARK CHOCOLATE,
the first dark chocolate product from the much-
loved Cadbury India basket.
Globally, dark chocolate is the fastest growing
segment within the confectionary category. It is
loved by millions of consumers because of the rich
taste and intrinsic health and well-being benefits
(please refer to the Chocology Report in your
press kit). The launch of CADBURY BOURNVILLE
FINE DARK CHOCOLATE in India is timely, as it will
cater to the evolving consumer preferences and
serve as a treat for consumers looking for a
moment of sheer indulgence.
Made from the finest ingredients, each
individually presented CADBURY BOURNVILLE
FINE DARK CHOCOLATE is an irresistible in-the-
mouth delight specially created to savour the
Indian palate. And with 44% cocoa from the
world’s finest Ghana beans and an ever so smooth
texture, each little chunk is dark and undeniably good.
A natural source of anti-oxidants, CADBURY BOUNRVILLE FINE DARK CHOCOLATE just
makes you feel good about giving in to your chocolate cravings. Dark Chocolate acts
as a mood-booster; by boosting serotonin and endorphin levels that generate the
feel-good factor. This more than a perfect bar of dark chocolate turns the simple act
of eating it into a form of art. It demands a certain ritual, where, in a way, each of its
steps offers a tribute to every stage of your journey.
Speaking on the launch, Anand Kripalu, Managing Director – Indian Sub-Continent,
Cadbury Ltd. said “This launch is our commitment to innovation and to meet the
ever-changing consumer needs in our market. The dark chocolate category will grow
strongly in the coming years because of its sophisticated taste and health benefits,
and Bournville is our special offering to capture this opportunity.”
Beginning this month, the CADBURY BOURNVILLE FINE DARK CHOCOLATE will appear
on shelves in modern retail outlets across major cities in the country. CADBURY
BOURNVILLE FINE DARK CHOCOLATES will be available in four different variants Rich
Cocoa (80g), Almond, Hazelnut and Raisin & Nut (90g each) and will retail at Rs. 75.
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59. Chapter 7: Case Study (worms)
‘Academic success depends on research and publications.’
– Philip Zimbardo
Cadbury | Kraft Food INC. | The Merger | Emotional Association | Youth | Mumbai 59
60. How Cadbury's won the battle of worms
Three years back, Cadbury's found itself in the eye of a storm, when a few instances
of worms in its Dairy Milk bars were reported in Maharashtra. In less than two
weeks, the company launched a PR campaign for the trade. And three months later,
came an ad campaign featuring Big B and a revamped poly-flow packaging.
Marketing and communications experts brought together by AICAR and the Subhash
Ghoshal Foundation say that Cadbury moved quickly to bear the cost of damage.
And thanks to its equity with the consumers, Cadbury's won back consumer
confidence, with hit on sales notwithstanding.
In October 2003, just a month before Diwali, customers in Mumbai complained
about finding worms in Cadbury Dairy Milk chocolates. Quick to respond, the
Maharashtra Food and Drug Administration seized the chocolate stocks
manufactured at Cadbury's Pune plant.
In defense, Cadbury issued a statement that the infestation was not possible at the
manufacturing stage and poor storage at the retailers was the most likely cause of
the reported case of worms.
But the FDA didn't buy that. FDA commisioner, Uttam Khobragade told CNBC-TV18,
"It was presumed that worms got into it at the storage level, but then what about
the packing - packaging was not proper or airtight, either ways it's a manufacturing
defect with unhygienic conditions or improper packaging."
That was followed by allegations and counter-allegations between Cadbury and FDA.
The heat of negative publicity melted Cadbury's sales by 30 per cent, at a time when
it sees a festive spike of 15 per cent.
For the first time, Cadbury's advertising went off air for a month and a half after
Diwali, following the controversy. Consumers seemed to ignore their chocolate
cravings.
As a brand under fire, in October itself, Cadbury's launched project 'Vishwas' - a
education initiative covering 190,000 retailers in key states. But what the company
did in January 2004 is what really helped de-worm the brand.
By investing up to Rs 15 crore (Rs 150 million) on imported machinery, Cadbury's
revamped the packaging of Dairy Milk. The metallic poly-flow, was costlier by 10-15
per cent, but Cadbury didn't hike the pack price.
Bharat Puri, managing director, Cadbury's India says, "While we're talking about
a few bars of the 30 million we sell every month - we believe that to be a responsible
company, consumers need to have complete faith in products. So even if it calls for
substantial investment and change, one must not let the consumers confidence
erodes."
Simultaneously, Cadbury's roped in brand ambassador Amitabh Bachchan to do
some heavy duty endorsement putting his personal equity on the line for the brand.
The company upped ad spends for the Jan-March quarter by over 15 per cent. The
recovery began in May 2004, and by June, Cadbury's claimed that consumer
confidence was back.
These experts believe that the reason for Cadbury's success was that it took
crisis head-on. And the consumers were more forgiving, because the brand enjoyed
an emotional equity in India.
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61. Santosh Desai, former president, McCann-Erickson says, "The nature of the
relationship that Cadbury's has built with the consumer is responsible for latitude
the consumers are giving it.
"They are seeing it as a lapse, not a breach of trust - this difference is key. What
Cadbury's set out to deliver, it goofed up once but it seemed to be very sincere in
its intent to get things right."
Even so, other experts felt Cadbury's was itself to blame for the worm crisis.
Mahnaz Curmally, PR counsel, explains, "Cadbury's had known for a long time that
packaging needed change, so in a sense, they waited for something to happen
before they made that change and perhaps in hindsight, they could have made that
change voluntarily."
Cadbury's could be case study of a sweet recovery from a crisis. It continues to lead
the Indian chocolate market with over 70 per cent market share. However, the
experts feel that today's constantly changing environment should keep the company
on guard.
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62. Cadbury repackages for India
Cadbury India has announced that it is to change the packaging for its Dairy Milk
chocolate bar following last month's allegations that a batch had been infested with
insects. The consumer scare is believed to have seriously impacted sales of the
nation's leading chocolate bar.
As of January 2004, the packaging for Cadbury's Dairy Milk bars will be completely
changed, creating what the company says is an impenetrable wrapper.
Although the move is in direct response to the allegations of infestation, the
company continues to deny that its production methods at the Indian facilities are of
anything but the highest standards and that there is "absolutely" no way that such
an infestation could occur. The company has pointed the finger of blame to
distributors, saying that unhygienic storage methods were the likely source of the
infestations.
Cadbury India has even posted a public notice on its website, refuting all allegations
of the infestation during manufacture.
The statement states that "the manufacture of chocolates involves conching process
that takes place at high temperatures (up to 55 C), making it impossible for any
infestation to take place during the process.
"Our factory-control samples of each batch of Cadbury Dairy Milk produced over the
past few months have been checked and found to be free of any infestation".
Media reports were widespread throughout India on the subject, focusing on a
Bombay suburban store where consumers are thought to have purchased a series of
contaminated chocolate bars.
"While our current packaging of Cadbury Dairy Milk has proved us in good stead for
the past 30 years, we believe that this change will strengthen protection to the bar
through complete sealing," Cadbury India managing director Bharat Puri told the
Financial Express.
Indian consumers are known to be particularly reactionary to any allegations of foul
play by large corporate players. Back in August, a huge furore blew up when an
independent consumer organisation tested Pepsi Cola soft drinks, finding them to
have dangerously high levels of pesticide.
As with the problems faced by Cadbury India, the allegations were vehemently
denied. Government-backed tests that were later carried out proved that a random
selection of Pepsi soft drinks were in fact well within Indian standards for pesticide
residues.
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63. Chapter 8: Kraft - Cadbury Merger
‘It’s a MISTAKE’
– Warren Buffett
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64. Kraft - Cadbury merger: A British icon loses its Independence
Cadbury & Kraft: The legacy
Cadbury’s acceptance of a multi-billion-dollar takeover by US giant Kraft Foods ends
almost two centuries of independence for the British chocolate maker born out of
humble beginnings.
Cadbury, which began as a small grocer’s shop in Birmingham, central England, in
1824, has agreed to an £11.5-billion ($18.9-billion) takeover by Kraft Foods, famous
for its snack products. The British company’s founder John Cadbury began his
business by selling cocoa and drinking chocolate from a small shop in 1824. Being a
Quaker, he wanted to provide an alternative to alcohol.
In 1831, John Cadbury began manufacturing on a commercial scale and later
handed over the business to his sons, who moved the business to Bournville, near
Birmingham, where the group still has a chocolate factory. As Quakers, the family
worked hard at improving the social conditions of Cadbury workers, creating an
entire village in Bournville.
Cadbury had launched its first solid milk chocolate for eating in 1897 and a few years
later the company’s famous Dairy Milk bar was born. The company quickly expanded
and began making chocolate boxes before buying out smaller confectionery brands.
After the Second World War, Cadbury joined with US drinks giant Schweppes in the
1960s as it looked to expand overseas, but the firms split in 2008.
Kraft Foods (KFT.N) sealed a friendly deal to buy British candy maker Cadbury CBRY.L
for about $19.6 billion (11.9 billion pounds).
It marks the largest European food and beverage deal on record.
"Kraft has acquired a great asset at a great price and should be given credit for this,"
said Sanford C. Bernstein analyst Andrew Wood.
Impact of the Merger: A HERITAGE SOLD, A TRADITION KILLED.
British flags fluttered outside chocolate-maker Cadbury's sprawling Bournville site as
employees lamented the news that a beloved national brand was falling into
American hands.
"Hang your heads in shame," read one banner, capturing a feeling at the
company's home in Birmingham in central England that patriotic pride as well as
future prospects for employees were at stake in the takeover by U.S. giant Kraft.
"It is history, and what is England without its history?" asked Janet Wright, a 59-year-
old machine operator, who started work at the Cadbury factory at the age of 15.
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65. British Prime Minister Gordon Brown said he wanted to protect British investment
and jobs at Cadbury, illustrating the political sensitivity of the deal in an election
year.
Cadbury has been in Bournville since 1879 and the sense of community remains
strong there, compounding the fears and disappointment felt by the workforce.
The site, which employs about 2,500, consists of a mix of sturdy 19th-century brick
buildings, monolithic structures in the style of the 1930s, and square blocks
reminiscent of the 1960s, stretching as far as the eye can see and reflecting the
company's long history.
"It's not just about jobs, it's also about being British. It's the end of a great British
company," said one woman, 51, who did not wish to give her name but said she had
worked at the factory for 31 years and had met her husband there.
Impact of the Merger: IT’S SAD, VERY SAD
Felicity Loudon, a member of the fourth generation of Cadbury's founding family,
said the deal was a tragedy.
"I think my grandfather and great grandfather and great, great grandfather would
all be turning in their graves. I think the idea that Cadbury could be anything but
British would be just a horror story to them,"
The company's Quaker-inspired tradition of caring for staff, established by its
founders, is still in evidence despite the family retreating from the day-to-day
running of the business.
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66. The site has a dentist, chiropodist, swimming pool and pensioners' club, and a
clocktower stands over a war memorial decorated with poppies paying tribute to
dozens of Cadbury workers who died in the two World Wars.
Some workers live in company houses at discounted rents, and when the
supermarket chain Tesco opened a store at the site it was barred for a time from
selling alcohol.
Myriam Jordan, 82, who worked for Cadbury for 15 years, as did her father-in-law
for 46 years, still receives a free Cadbury parcel at Christmas and a free trip every
year.
"It adds a bitter taste having an American company buy Cadbury's,"
The uncertainty over job security has angered the workers.
"Everybody, from the lollipop lady to the people in the school playground, said
they would stop buying chocolate bars if Cadbury is taken over by the American
company," said a 54-year-old woman who had worked at the firm for more than 20
years and did not wish to give her name.
But some felt the great Quaker traditions had disappeared over the years, with
diminishing pension and pay packages.
"They set up a great legacy but all that has gone," said Pete, 48, who declined to
give his second name. He had worked in production for 17 years. However, even he
was downhearted about the likely takeover.
Cadbury’s Employees and people of England are not happy
with the merger.
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