Reinventing Cadbury

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Case Details:

Case Code : MKTG030
Case Length : 13 Pages
Period : 2002
Pub Date : 2002
Teaching Note : Available
Organization : Cadburys India Ltd
Industry : FMCG
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

Reinventing The Brands - Ceaselessly

CIL launched a number of new products in 1998, such as Picnic (a chocolate bar with wafer, peanuts, raisins and caramel), Byte (a strawberry flavoured candy), English Toffee (a chewy toffee) and Cadbury Gold (a CDM with a soft center). While Picnic was promoted as a 'solid, filling and ingredient-packed' chocolate, Cadbury Gold was promoted through an 'emotional' appeal.

The advertisement featured a woman by a poolside eating a bar of Cadbury Gold and fantasizing about being in the men's changing room, with the men running desperately to cover themselves. The commercial ended with the woman smiled in a self-chiding but mischievous manner.

This advertisement aimed at changing the existing brand image in the consumer's mind (of family values and wholesomeness), by emphasizing self-indulgence and mood-upliftment. Cadbury Gold thus tried to add a new dimension to traditional CIL brand values of family values and wholesomeness.

Marketing Management Case Studies | Case Study in Management, Operations, Strategies, Marketing Management, Case Studies

Much to the company's dismay, these new products failed to click with the consumers, largely because of their taste. During that same period (the late 1990s) Nestle's range of snack-substituting chocolates such as Charge, Nuts, KitKat orange and Crunch, ate into the share of most of CIL's new launches (Picnic and Cadbury Gold were eventually discontinued)...

A Change in Focus

Puri changed CIL's vision statement from 'A Cadbury in every pocket' to 'Life full of Cadbury and Cadbury full of life.' As a result, the company shifted its focus from launching new brands to rejuvenating and strengthening the existing brands (CDM, 5-Star, Perk, Gems and Eclairs). In addition, CIL planned to extend its reach to semi-urban and rural markets. Puri said, "Small towns present tremendous opportunities." CIL also decided to sell its products through 'non-traditional' outlets like music stores (such as MusicWorld), malls, renowned bookstores and popular apparel outlets (such as Pantaloons and Wills Sport boutiques)...

Exhibits

Exhibit I: CIL - Product Profile
Exhibit II: Financial Performance of CIL (1993-2001)
Exhibit III: Nestle India - Product Portfolio
Exhibit IV: Nestle India - Financial Results (2000-2001)

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