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How Cadbury Positioned Itself in the Indian Market?


How Cadbury Positioned Itself in the Indian Market?

Cadbury came to India in 1948 by importing chocolates. The brand faced competition from the large unorganized market of local sweet shops but became an acceptable part of the Indian festive culture Cadbury's success in India can be attributed to its deep-rooted connection with Indian consumers, who consider it a part of their daily lives.

This report delves into the success of Cadbury in the Indian chocolate market, where it has become the brand synonymous with chocolate. Key findings from various sources highlight Cadbury's market leadership and its deep-rooted connection with Indian consumers. The report covers the following aspects:

Cadbury's strong position in the Indian chocolate market accounts for two-thirds of all sales. The enduring nostalgia and affinity for Cadbury among Indians, make it a part of their daily lives.
Cadbury's marketing strategies, include leveraging Indian traditions and positioning itself as a substitute for traditional sweets.
Cadbury's innovative advertising campaigns and use of digital marketing platforms like YouTube



Observations -

1. The trend of substituting traditional Indian sweets (mithai) with chocolates is increasing, especially during festivals like Raksha Bandhan, Bhai Dooj, and Diwali.
2. The range and variety of chocolates available in malls are growing, leading to impulse sales for chocolate companies.
3. Chocolates are now considered more affordable than mithai, and their packaging and longer shelf life make them convenient options for both middle-class and affluent Indians.
4. The availability of different types of chocolates, including those with almonds, raisins, and other nuts, has increased in recent years.
5. There has been a shift in the Indian palate, with an increasing preference for dark chocolates.



In terms of advertisement trends:

1. Chocolate advertising has significantly increased during the Raksha Bandhan festival and other festivals.
2. Cadbury India Ltd dominates chocolate advertising on television.
3. There was a 17% increase in advertising during the third quarter, which includes Raksha Bandhan.
4. Cadbury India Ltd had the highest share of chocolate advertising, followed by Nestle India Ltd and Parle Products Pvt Ltd.


Overall, the substitution of mithai with chocolates, the growing variety of chocolates, and the increase in chocolate advertising during festivals contribute to the spurt in advertisements between July and September.



Cadbury Dairy Milk has continuously worked on market penetration strategies by identifying new segments and sub-segments. Here is a summary of the brand's evolution and marketing strategies:

1. Initially, Cadbury Dairy Milk was considered a surrogate of parental affection for children and was seen as an indulgence product.

2. The brand faced stagnation as consumption was restricted to the kids' segment.

3. In 1994, Cadbury Dairy Milk made efforts to expand its consumer base by making the brand aspirational and desirable to the adult segment.

4. Extensive brand audits revealed that Cadbury Dairy Milk was associated with spontaneous, carefree, and memorable moments.

5. The "Taste of Life" communication campaign was launched, which changed the format in which chocolates were sold and helped the brand break free from clutter.

6. However, the market started to stagnate again when competitors like Kit Kat and Cadbury's own brand Perk introduced new variants of chocolate.

7. Cadbury Dairy Milk conducted research and found that the "Real Taste of Life" campaign resonated mainly with the metro audience, while barriers remained for middle and bottom-end consumers.

8. In the second phase, Cadbury Dairy Milk aimed to capture a larger section of the audience by integrating with Indian culture and positioning itself as a substitute for sweetmeat.

9. The "Kuch Meetha Ho Jaye" campaign was launched, which tapped into the traditional customs of sharing sweets during festivals and celebrations. This was the game changer for CADBURY. In 2023 the campaign is still running because of its effectiveness.

As per the traditional Indian custom to have curd and sugar before doing something important like going for an exam or an interview, it is auspicious to have it. Now mostly it was done by Indian mothers to their children. Now people tend to live away from their homes or are in a rush, so they tend to buy Cadbury chocolate just to fulfil the tradition.


Overall, Cadbury Dairy Milk's market penetration strategy involved developing new associations with festivals, and marriages, and sharing the good news to extend the product's usage platform and appeal to a wider audience. The brand's efforts to make the brand relevant and integrate with Indian customs and mores contributed to its success and growth.

In India, there are over twenty brands of chocolate confectionary, both local and foreign, with Cadbury Dairy Milk being the market leader. Established brands face intense competition from affordable localized brands with high sugar content targeted at low-income groups. To maintain market leadership, established brands need to employ brilliant advertising and branding strategies to influence consumer behaviour.

Cadbury Dairy Milk's success in India can be attributed to its pure taste, accessibility, and diversification according to Indian traditions. The brand has attracted consumers from all age groups and has been successful in providing high-quality chocolates. Cadbury Dairy Milk's advertising campaigns have evolved over time, from making the brand aspirational and desirable to the adult segment to integrating with Indian culture and positioning itself as a substitute for sweetmeat. The brand has also successfully associated itself with festivals, marriages, and sharing the good news to extend its usage platform and appeal to a wider audience.

Amul is slowly but steadily gaining more market share in recent years. It is because of the quality and brand name. From a consumer's point of view - Amul chocolate taste is quite different from the other brands. 

Other chocolate brands in India are also experiencing growth in sales due to higher prices for groceries and snacks, including chocolate. Consumers are not that sensitive to changes in the price of chocolate, and they continue to turn to chocolate and candy to bring a little fun to their experiences. The shift to home-centricity has also created new opportunities for confectionery companies and their retail partners as consumers seek new treatment moments with new items, new pack sizes, and new brands.

Cadbury's latest advertising campaigns, showcase the brand's focus on generosity, unlocking happy moments, and spreading joy. the following campaigns:

1. "Garage" campaign, which shows how generosity brings people closer.
2. "Unlock the Happiest Moments of 2022" campaign, which allows people to unlock their happiest moments of the year.
3. "Purpose Should Be Far Greater Than a Campaign" campaign, which focuses on Cadbury's purpose of inspiring others to be more generous.
4. "Speakerphone" campaign, which is part of the "There's a Glass and a Half in Everyone" series, and spreads joy through storytelling.

These campaigns showcase Cadbury's evolving marketing strategies, which focus on new opportunities and changing messages to suit the times. Cadbury's campaigns also leverage the brand's core values of generosity and spreading joy, which have been part of the brand's DNA since its Quaker origins. The campaigns also showcase Cadbury's use of digital marketing platforms like YouTube to reach a wider audience.

Overall, Cadbury's latest advertising campaigns demonstrate the brand's commitment to spreading joy and inspiring generosity among its consumers. These campaigns showcase how Cadbury continues to evolve its marketing strategies to stay relevant and appeal to a wider audience.
What's next - Cadbury must try to penetrate into the rural market as one-third of the population lives in scattered rural areas in India. They can introduce new ad campaigns on television or radio channels. The use of small-unit packaging can help a lot to market the product in the rural segment. Children are always attracted towards chocolate so that must be their primary target.
Cadbury is not only a brand but an emotion to Indian consumers. The simple subtle ads focusing on our day to lives make it more relatable. The beautiful jingle on Cadbury Silk Chocolate (targeting couples) was so well designed that every other person started gifting a Cadbury silk to their partners. I only see growth for Cadbury in the future. But they also have to adapt and introduce a new variety of chocolates to keep dominating the market.

One thing is common we all like Cadbury Dairy Milk. Don't we?



Published by Rishav Basak


 

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