Cadbury India Targets the Adult Segment with Cadbury’s Dairy Milk

Details

Case Code : CLMC-007
Publication date : 2005
Subject : Marketing Communications
Industry : FMCG
Length : 05 Pages
Price : Rs. 100

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Key words:

Cadbury India Ltd. (CIL), Cadbury Schweppes, Cadbury’s Dairy Milk (CDM), Food and Drug Administration, Amitabh Bachchan, O&M , Consideration Set, Consumer Behavior

Note

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

 

Abstract:

The caselet discusses the marketing communications strategies followed by Cadbury India Ltd. (CIL), for its flagship brand Cadbury’s Dairy Milk (CDM) in India. The caselet describes how the marketing communications strategy for CDM evolved over the years. From the mid-nineties, the company decided to target the Indian adult through Cadbury’s Dairy Milk. The caselet also describes the efforts made by CIL to manage the ‘worm controversy’ in October 2003 to maintain the brand image of the company.

Issues:   » Use of emotional appeals in advertising   » Customer surveys as a means to align the advertisements with evolving consideration sets of customers.   » Packaging as a tool to communicate quality Introduction Cadbury India Ltd. (CIL) is the wholly-owned subsidiary of the leading global confectionery and beverages major -- Cadbury Schweppes. From a trading corporation that began operations in India in 1947, CIL has become a market leader in the confectionary segment. Cadbury has a 70 percent market share in chocolates. Some of its brands are Dairy Milk, 5 Star, Gems and Perk.

Cadbury’s Dairy Milk (CDM) is its flagship brand, having a market share of 30% and average daily sales of 1 million bars. Till the mid-nineties, CIL’s marketing communication campaigns for CDM were targeted at kids. The advertisements focused on the relationship between the parents and their children, where parents expressed their love by gifting the child a Dairy Milk. However, in 1994, CIL changed its tack and the communication campaigns were targeted at adults, to expand the chocolate market and increase sales.

Questions for Discussion:

1. “While the central proposition of the brand has not changed, the communication focus has evolved over time to appeal to different consideration sets”. How did CIL use its ad campaigns to make chocolate eating a habit among the consumers, especially the adults?

2. Children are the major segment for any confectionery company. Do you think CIL has adopted the right strategy in focusing its marketing communication campaigns at adults, when other confectionery manufacturers are increasingly directing their efforts on the children’s segment, which has gained prominence due to its increasing pester power?