Cadbury Dairy Milk 2012

 Cadbury Milk Milk 2012 Essay

Company of Practitioners in Advertising

Gold, Ideal Use of Understanding, IPA Success Awards, 2012

www.ipa.co.uk

Cadbury Dairy Milk: A meetha journey

Main authors: Ganapathy Balagopalan and Nirav Parekh, Ogilvy & Mather India Contributing writers: Kawal Shoor and Madhukar Sabnavis, Ogilvy & Mather India

SYNOPSIS

This case reveals how marketing re-invented the particular essence with the product, therefore it became different things, and by this, unlocked manufacturer growth for Cadbury's Dairy products Milk.

This did this by transposing culture codes that received a new potential audience to view a well-known brand within a new lumination; it became a fresh product, producing a desire to have purchase.

The size of the achievement is remarkable. After dropping 78% in value, we all will show the way the campaign grew the business coming from 3% to 23% within just seven numerous years of the marketing campaign launch.

The situation shows how this expansion led to a massive increase in earnings and income; and was performed possible by advertising. Background

Origins in India

Cadbury Dairy Dairy (CDM) found India in 1948, 12 months after the independent country's birth and the British had still left Indian shores. This The english language icon has over the years cultivated into one of the extremely loved and recognized brands in India. CDM is a part of fairly sweet childhood thoughts, for a lot of Indians.

Circa 2004:

Cadbury was the biggest player in the chocolate industry in India with almost 65% discuss of the category and Cadbury Dairy Dairy (CDM) it is flagship manufacturer with 31%.

CDM accounted for over half of Cadbury India's chocolate income in 2004, and this certainly meant Cadbury India's prospects (read profitability) was linked with CDM's performance (compared to Nestle Chew its nearby competitor, which has been less than 10% of Nestle India in 2004, regardless of being more widely available than CDM).

CDM was certainly Cadbury India's bread and butter brand and to the majority of Indians: Chocolates = Cadbury = Cadbury Dairy Milk.

Market Situation

While the 90's were kind to Cadbury, by early 2000's development began drying up.

The flattening of product sales is clear – among 2000 and 2004, CDM growth level dropped by 78% above the previous several year period from 1996 to 2k.

CDM growth was running out of fuel. There were to find fresh triggers to fuel growth. However , presented CDM's criticality to Cadbury bottom-line, we had to manage progress without limiting profits.

BUSINESS OBJECTIVE

Grow CDM top rated line (Sales Value) devoid of compromising success

CHOOSING THE PROGRESS DRIVER

A.

Market share of most Cadbury brands put together had been 65%. Playing a share game would inevitably entail cannibalizing very own brands

M.

CDM's competition came mainly from VFM offerings (chocolate-coated wafer cookies had reduce chocolate articles or, a whole lot worse, used chocolate substitute; which meant these types of brands present more for sale – discernibly bigger pubs than CDM for same price). Clashing with these people for share was bound to be unprofitable.

C.

Increasing trend of commodity rates (cocoa) might only increase the pressure upon sales volumes, testing the brands value elasticity. While prices fluctuated, they had nearly doubled over several years via 2000 to 2004.

Deb.

Possibility of talk about gain through promotions was bound to be costly and improbable to preserve long term development. Moreover, the inevitable competition response, compounded by cost pressures mentioned in level 'C' previously mentioned, would even more erode success.

All these factors appeared to suggest growing business may not be one of the most profitable development avenue pertaining to CDM.

THE WAY TO GROWTH

Cadbury had started out by selling to kids, when it was felt it really is easier to develop a new flavor with kids than with tradition-bound adults; but the approach made an unexpected obstacle for further growth. We had become an occasional overseas treat 'for kids'. As people was raised, they grew out of chocolate rather than growing up with it. Usage among Teens and Adults was suprisingly low.

MARKETING TARGET

Increase CDM...

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