STP and 4P's of Cadbury Dairy Milk

1. By
Chanchal
Hari
Jayesh

2. About Cadbury
 Cadbury Dairy Milk (CDM) was launched in 1905 in
U.K
 Cadbury began its operations in India in 1948 by
importing chocolates
 It is the market leader in the chocolate confectionery
business with a market share of over 70% in India
 Cadbury India, on 21 April 2014, changed its name to
Mondelez India Foods Limited

3. Global Chocolate Market
Global market is still dominated
by Western Europe and North
America, emerging markets
clearly represent the future. The
BRIC countries (Brazil, Russia,
India and China) accounted for
55% of global confectionery
retail growth in 2011.
Right now, Indians eat
only 165 grams (less
than 6 ounces) of
chocolate a year. The
Chinese eat only 99
grams (3.5 ounces).

4. Indian Chocolate Market
• India is the world's fastest growing market for chocolates.
• Registering 15% annual growth between 2008 and 2012.
• The Indian chocolate market is worth around Rs 5,562 crore.
• 400 Kgs of chocolate consumption in India per minutes.
• Low priced unit packs, increased distribution reach and new
product launches can be said to have fuelled this growth.
India chocolate
industry will be
growing at the CAGR
23% by volume
between the years
2013-2018 and reach
at 3,41,609 Tons.

6. Segmentation
 Demographic Segmentation
 Income –
 Premium products – Dairy milk silk, Dairy milk glow
etc.
 Basic products – Dairy milk, Dairy milk shots etc.
 Behavioural Segmentation
 Occasion Segmentation – Celebration, After
Dinner as a dessert.

7. Targeting
 Mass Targeting – Targets everyone

8. Positioning
 Youth see Cadbury as a synonym for chocolate
 In the initial stage it positioned itself as
Spontaneous, special, carefree, real moments
(Mazza aa gaya)
 The tagline “Meethe mein kuch meetha ho
jaaye” positions Dairy Milk as a dessert (sweet)
 CDM Silk has been positioned to be about
'moments' -- moments when the chocolate is
enjoyed, moments which are like silk.

9. Market Share
 CDM has about 35 per cent share of the Indian
chocolate market.
 Nestle with its brands, Munch, KitKat, Bar One
and Milkybar, has about 25 per cent.
 Cadbury 5-Star has about 14 per cent; while
Perk and Gems have 7 per cent each.
 Cadbury Celebrations has 5 per cent and
Bournville has about 1 per cent market share.

11. Product
 The amount of milk content in dairy milk is
highest when compared to its competitors
 The components used are sugar, cocoa butter,
vegetable fats, cocoa mass and emulsifiers
 It comes in various sizes and targets all
 The design of the chocolate is nearly the same
throughout the world

12. Product Depth

13. Products in India
• Dairy Milk
• Dairy Milk Shots
• Dairy Milk Fruit & Nut
• Dairy Milk Roasted
Almonds
• Dairy Milk Crackle
• Dairy Milk Glow
• Dairy Milk Wowie
• Dairy Milk Silk
• Dairy Milk Silk Fruit &
Nut
• Dairy Milk Silk Carmelo
• Dairy Milk Silk Roasted
Almonds
• Dairy Milk Silk Orange
Peel

14. CDM Product Life Cycle
1905
2010
Life Cycle
Extension

15. Sizes
 Dairy milk - 14gm and 38gm Pack
 Dairy Milk Silk - 60gm and 160gm pack
 Dairy milk shots – 5gm, 20gm and 220 gm
 Dairy Milk Glow – 240 gm

17. Price
 It is priced same through out the country
 It has adopted competitive pricing for basic
products and premium pricing for other
products
 It is available in the price range of Rs 2 to Rs 600
 Available in various sizes

18. Pricing
Type Quantity (Grams) Price (Rs)
Dairy Milk 60 40
Dairy Milk Silk 60 60
Dairy Milk Glow 60 150
Dairy Milk Wowie 60 45
Dairy Milk Shots 60 30
Dairy Milk Caramello 60 70

19. Distribution
• Cadbury product are sold to Wholesalers and
retailers
• 2100 distributors
• 450000 retailers
• Available in all supermarkets and Kiryana stores

20. Business Operations
5 Company owned Manufacturing Services
•Thane
•Pune
•Gwalior
•Bangalore
•Himachal Pradesh
4 Sales office
•New Delhi
•Mumbai
•Kolkata
•Chennai
Corporate Head Office
•Mumbai

21. Promotion
 The media mix for any campaign for diary milk
comprises of TV, radio, print, OOH and Internet
 The advertisements are used to create an emotional
bonding with the consumers
 The promotions increase brand loyalty, encourage
repeat purchases and at the same time increase
market share
 Cadbury spends approximately 45 crore on
advertising.

22. Asli Swad Zindagi Ka
Adult chocolate consumption in India is very low the
famous Cadbury ad, 'kuchh khaas hai hum sabhi mein'
aimed to do this."

23. Pappu Paas Ho Gaya
This ad aimed at positioning CDM as a sweet. In India people celebrate
every happy occasion by distributing sweets. It was aimed to address
the lower SEC in small towns.
https://www.youtube.com/watch?v=xs-r6wJ7k0c

24. Kuch Meetha Ho Jaaye
Tried to relate to the consumers culturally by positioning it as a
sweet. All the ads are based on a joint family thus relating to India
culturally.

25. Meetha Hai Khaana Aaj Pehli Taarek
Hai
Cadbury 'pays' a tribute to the salaried employees by giving them
another reason to celebrate the payday.

26. Shubh Aarambh

27. Dairy Milk Silk
"The obvious part of the communication is the self-indulgent
product and the irresistibility of it

28. Out Of Home Advertising

29. Evolution of Promotion Techniques

30. Website
• The four flavors are distinctly & prominently displayed on
the site.
• Clicking on any of the four icons leads to the related game,
TV commercial, Social Buzz, recommendation of Mobile
Apps & in the end a page to vote for the favourite flavour.

31. Facebook Promotions
The first post which was about the favourite flavour elections of
dairy milk chocolates coincided with the general election-results
day. Similarly the latter post added a pinch of humour &
coincided with the IPL playoffs.

32. Packaging

33. S.W.O.T Analysis
Strength
• Topmost chocolate provider in the
world
• Brand loyalty
• Low cost of production due to
economic of scale
• Strong distribution network.
Weaknesses
• Lack of market penetration
• Relatively high Price Brand
• Limited variety of products
• Poor technology in India compared to
current international technologies
Opportunities
• India CAGR 2013-18 is 23%
• Population 1.27 Billion
• Bring efficiency in logistics and
distribution with the help of
technology.
• Introduction of foreign products in
India.
Threats
• Faced a worm scandal
• In confectionery segment Threats from
company like Amul & Nestle.
• Government Policies
• Rise in raw materials cost cocoa beans,
dairy products & Sugar.