Cadbury Dairy Milk's Advertising Campaigns in India

            
 
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Case Details:

Case Code : MKTG287
Case Length :14 Pages
Period : 1990-2011
Pub Date : 2012
Teaching Note : Not Available
Organization :Cadbury India
Industry : Consumer Packaged Goods (Food)
Countries : India

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This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.



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Excerpts

A Sweet Journey

Real Taste of Life
Before this campaign began, the chocolate industry had faced some major problems. The price of cocoa had gone up steeply in 1991 while the excise duty on it had increased from 16.5% to 27.5%. As a consequence, the price of chocolates went up. The 40 gm pack of Diary Milk went up from Rs.6 to Rs. 10 in 1994. Cadbury had decreased its production as well. Adults refrained from eating chocolates and were in a way reluctant to do so because of the kids' image associated with it...

'Pappu Paas Ho Gaya'
This was another popular campaign for Diary Milk, launched in 2005.

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Bachchan acted as a shopkeeper in the advertisement. Two guys approach the shopkeeper and ask him for a Diary Milk. They leave without paying and tell him that Pappu will pay. A group of girls come up and again the same thing happens...

'Kuch Meetha Ho Jaye'
The company came up with more innovative campaigns to increase the number of occasions on which people could eat a Diary Milk. The 'Kuch meetha ho jaye' campaign was an effort to try and replace the traditional Indian sweets with Diary Milk. In the Indian tradition, people generally eat and distribute sweets on any joyous, festive occasion and Cadbury tried to depict all those occasions...

Sweet Results?

After 2005, Cadbury in India almost doubled the business in three years. Sales growth was 22% - the compounded growth rate over the past three years from 2005 to 2008. In the years from 2005 to 2009, it also doubled its turnover. The impact of the inflation in 2009-2010 on the FMCG market was strange. Categories like baby foods and packaged attas declined quite drastically, whereas categories like chocolates, biscuits, and namkeens grew quite a bit compared to the previous year. Chocolates especially had a growth in volumes from 2% to 21.8%. The reason could have been the increase in advertising and promotions spending as Cadbury India did by 40%...

Way Ahead

Cadbury planned to promote new ideas and occasions and give new reasons to the people to consume their product and associate 'meetha' with Diary Milk in people's minds. It also utilized the strategy of using Indian traditions and customs to connect with people and form a special bond with them i.e. 'Indianization' of the brand, besides giving it a contemporary image to connect with the youth as well. Cadbury also tried to bring in new and different variations of CDM like CDM Silk which was supposed to be even better and smoother than the original CDM...

Exhibits

Exhibit I: Share of different Categories in the Food and Beverages Sector on TV in 2010
Exhibit II: Share of Advertisers in the Food and Beverages Sector on TV in 2010
Exhibit III: Overview of the Chocolate Market in India
Exhibit IV: Demand for Chocolates over the Years
Exhibit V: Market Share by Age for Chocolates in 2007
Exhibit VI: Market Share by Region for Chocolates in 2007
Exhibit VII: Market Growth Rates for Chocolates


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