Reinventing Cadbury*

            


Details

Case Code : CLBS024
Publication date : 2004
Subject : Business Strategy
Industry : FMCG
Length : 04 Pages
Price : Rs. 50

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Key words:

Promotional campaigns, decibel advertising, market leader, product portfolio


* This caselet is intended for use only in class discussions.
** More comprehensive case studies are priced at Rs.200 to Rs.700 (US $5 to US $16) per copy.

 


Abstract: ICMR India ICMR India ICMR India ICMR India RSS Feed

The caselet analyzes the problem faced by Cadbury India Ltd (CIL) due to the entry of Nestle in the late 1990s and the initiatives taken by the company to retain its market position. It also discusses the company’s attempts to reinvent its major brands.

Issues:

 » The marketing strategies adopted by CIL to establish itself as the market leader in the Indian chocolate market.
 » CIL’s new strategies, with reference to product launches, positioning, distribution, pricing and advertising.

Introduction

Cadbury India Ltd. (CIL) and the Cadbury’s brand are synonymous with chocolate in the minds of Indian consumers. The company began manufacturing operations in Mumbai in 1946. In the 1960s, CIL launched a range of products such as Crackle, 5 Star, Gems, Tiffins, Nutties, Butterscotch and Caramels.


Most of these products became instant successes and led to rapid growth in chocolate consumption in India. Following this, the company launched Cadbury’s Eclairs in 1972, priced at 25 paise. Eclairs, was a runaway success, despite being priced higher than the available sugar confectioneries in the market at that time....

Questions for Discussion:

1. Discuss the strategies followed by CIL until the early 1990s to establish itself as the market leader in the chocolate segment. Why did CDM change the positioning of its brand in 1994? To what extent did CIL succeed in its attempts to reposition CDM?

2. Do you think repositioning CDM in 2002 was a good strategy? Justify your stand. Discuss the future prospects of CIL in light of severe competition from Nestle. What, according to you should CIL do to retain its market position and keep the competition at bay?