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“An Analytical Study of Chocolate Industry in India with Special Reference to Cadbury’s
India” is a sweet CHOCOLATE story of chocolates in the hot and humid plains of INDIA,
enlightens us about the size & status of chocolate industry in India. The project gives information
about the competitors, their market share, and their product basket and highlights success
The project also presents data on types & categories of chocolates, a brief study of chocolate
manufacturing process
The project also covers a brief study of Cadbury’s India Limited – the biggest player in the
Indian Chocolate Industry with reference to its presence, market share, product offerings,
strategies, strengths & weaknesses, success factors and Worm Controversy Management. Also,
implication of pricing, distribution strategies and impact of external environment has been
The project throws light on problems and challenges of the Indian Chocolate Industry, growth
opportunities and strategies to be adopted for growth in this industry.
Finally, the project gives information about home-made chocolates and Chocolate Boutiques
and the ways in which Indian consumers and Chocolate players are experimenting and
chocolates and giving the Indian Chocolate Industry a new sweetness.
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Table of contents
Sr. No Topic Page
1 Project Objective 6
2 An Overview of Chocolate Industry in India 8
3 Types of Chocolates 12
4 Categories of Chocolates & Form of Consumption 14
5 Chocolate Manufacturing Process 15
6 Market Size (by value & by volume) 16
7 Major Players & their Market Share 17
8 Cadbury’s India Limited – A Study 18
9 Cadbury & The Worm Controversy 37
11 Nestle India 50
12 Amul (GCMMF) 53
13 CAMPCO 59
14 Home-made Chocolates 62
15 Interesting Chocolate Facts 63
16 Problems & Challenges in Indian Chocolate Industry 64
17 External Factors affecting Growth of Chocolate Industry in INDIA 66
18 Growth Opportunities in Indian Chocolate Industry 67
19 Strategies for Growth & Success in India 69
20 Chocolate Boutiques & Designer Chocolates 70
21 Conclusion 72
22 Bibliography 73
Project Objective
This project aims at understanding the overall Chocolate Industry in India, the product
portfolios of different players in the market, various factors affecting the growth and success of
chocolate industry in India, the challenges and opportunities which the market offers and the
changing trends in the Indian Chocolate Industry. The project also covers a brief study of
India with reference to above points.
An Overview of Chocolate Industry in India
The chocolate industry in India as it stands today is dominated by two companies, both
multinationals. The market leader is Cadbury with a lion's share of 70 percent. The company's
brands (Five Star, Gems, Eclairs, Perk, Dairy Milk) are leaders their segments. Till the early 90s,
Cadbury had a market share of over 80 percent, but its party was spoiled when Nestle appeared
the scene. The latter has introduced its international brands in the country (Kit Kat, Lions), and
commands approximately 15 percent market share. The Gujarat Co-operative Milk Marketing
Federation (GCMMF) and Central Arecanut and Cocoa Manufactures and Processors Co-
(CAMPCO) are the other companies operating in this segment. Competition in the segment will
keener as overseas chocolate giants Hershey's and Mars consolidate to grab a bite of the Indian
chocolate pie.
Per Capita Chocolate Consumption (in lb) of first 15 countries of the world
Rank Countries Per Capita
Consumption (in lb)
1 Switzerland 22.36
2 Austria 20.13
3 Ireland 19.47
4 Germany 18.04
5 Norway 17.93
6 Denmark 17.66
7 United Kingdom 17.49
8 Belgium 13.16
9 Australia 12.99
10 Sweden 12.90
11 United States 11.64
12 France 11.38
13 Netherlands 10.56
14 Finland 10.45
15 Italy 6.13
INDIA, stands nowhere even near to these countries when compared in terms of Per Capita
Chocolate Consumption. The Indian chocolate industry is extremely fragmented with a
range of
products catering to a variety of consumers. We have the bars/slabs, jellies, lollipops, toffees
sugar candies.
Given India's mammoth population, it comes as a surprise that per capita chocolate consumption
the country is dismally low - a mere 20 gms per Indian. Compare this to over 7 kgs in most
developed nations.
However, Indians swallowed 22,000 tonnes of chocolate last year and consumption is
at 10-12 percent annually.
The market size of chocolates was estimated to be around 16,000 tonnes, valued around Rs.
4.16 billion in 1998. Volume growth which was over 20% pa in the 3 years preceding 1998,
down thereafter.
Both chocolate and sugar confectioneries have abysmally low penetration levels, in fact, even
lower than biscuits, which reach 56 per cent of the households. Market growth in the chocolate
segment has hovered between 10 to 20%. In the last five years, the category has grown by 14-
on an average and will expect it to continue growing at a similar rate in the next five years.
The market presently has close to 60mn consumers and they are mainly located in the
urban areas. Growth will mainly come through an increase in penetration as income levels
However, almost all of this consumption is in the cities, and rural India is nearly
‘chocolate-free’. But the fact is that three quarters of Indians live in Rural Areas. “Average
summertime temperatures reach 43 degrees Celsius in India. Chocolate melts at body
temperature of
36 degrees.”
Per capita consumption of chocolates in India is minuscule at 20gms in India as compared
to around 5-8 kgs and 8-10 kgs respectively in most European countries. ... Awareness
chocolates is very high in urban areas at over 95%. ...
Growth of other lifestyle foods such as malted beverages and milk food have actually
declined by 3.7 per cent and 11.7 per cent, however the CHOCOLATES continue to grow at
the rate of 12.6%.
Low priced unit packs, increased distribution reach and new product launches can be
said to have fuelled this growth.
The launch of lower-priced, smaller bars of chocolate in the last two years and
positioning of chocolate as a substitute to traditional sweets during festivals, have boosted
consumption. This is also because chocolate, which was considered to be an elitist food, has
the fancy of buyers looking for a lifestyle item at affordable cost.
Till recently, chocolate consumption had been restricted by low purchasing power in the
market. Chocolates and other cocoa-based snack foods were looked upon as food suitable only
the well-off.
After economic liberalization in 1991, major changes have occurred in food habits, partly on
account of rise in gross domestic product (GDP) growth and higher purchasing power in the
hands of
the middle-class representing a third of the total population. Availability of chocolate products
also exploded.
A study had projected that sales of the Indian chocolate industry would rise from $125/$130
million in 1998 to $175/$180 million by the year 2000 and to $450 million by the year 2005
ACTUALLY happened irrespective of various negative factors.
Per capita chocolate consumption continues to be low at about 200g per person, being
mainly consumed in urban areas. In the middle and higher income groups, 70 per cent of
children, 43
per cent of young adults and 16 per cent of adults consume chocolate.
Chocolate Consumption Structure - 2004
Young Adults
Chocolate & Confectionery Market of India - 2004
Chocolate Counts
Rs. 250 Cr.
Chocolate Bar
Rs. 350 Cr.
Mints & Chew ing
Rs. 325 Cr.
Sugar Boiled
Rs. 1600 Cr.
AC Nielsen ORG Marg report estimates the Indian Chocolate Industry’ worth at Rs
2,000-crore (Rs 20 billion)
Types of Chocolates
Depending on what is added to (or removed from) the chocolate liquor, different flavors and
varieties of chocolate are produced. Each has a different chemical make-up, the differences are
solely in the taste.
1. Unsweetened or Baking chocolate is simply cooled, hardened chocolate liquor. It is used
primarily as an ingredient in recipes, or as a garnish.
2. Semi-sweet chocolate is also used primarily in recipes. It has extra cocoa butter and sugar
added. Sweet cooking chocolate is basically the same, with more sugar for taste.
3. Milk chocolate is chocolate liquor with extra cocoa butter, sugar, milk and vanilla added.
This is the most popular form for chocolate. It is primarily an eating chocolate.
Cocoa is chocolate liquor with much of the cocoa butter removed, creating a fine powder. It can
pick up moisture and odors from other products, so you should keep cocoa in a cool, dry place,
tightly covered.
There are several kinds of cocoa
Low-fat cocoa has the most fat removed. It typically has less than ten percent cocoa butter
Medium-fat cocoa has anywhere from ten to twenty-two percent cocoa butter in it.
Drinking or Breakfast cocoa has over twenty-two percent left in it. This is the cocoa used in
chocolate milk powders like Nestle's Quik.
Dutch process cocoa is cocoa which has been specially processed to neutralize the natural
acids in the chocolate. It is slightly darker and has a much different taste than regular cocoa.
Decorator's chocolate or confectioner's chocolate isn't really chocolate at all, but a sort of
flavored candy used for things such as covering strawberries. It was created to melt easily and
quickly, but it isn't chocolate.
Categories of Chocolates
Commercial Chocolates are available in the following forms:
1. Bars or Moulded Chocolates
2. Counts
3. Panned Chocolates (Gems)
4. Éclairs
5. Assorted Chocolates
Bars or moulded chocolates (like Dairy Milk, Truffle, Amul Milk Chocolate, Nestle Premium,
Nestle Milky Bar) comprise the largest segment, accounting for 37% of the total chocolate
market in
volume terms. ... Wafer chocolates such as Kit-Kat and Perk also belong to this segment. Panned
chocolates accounts for 10% of the total chocolate market. ... Wafer chocolates such as Kit-Kat
Perk also belong to this segment. ..
Form of Consumption
a. Pure Chocolates
b. Toffees
c. Cakes & Pastries
d. Malted Beverages
e. Wafer Biscuits & Baked Biscuits
f. Chocolate Desserts
Chocolate Manufacturing Process
Workers cut the fruit of the cacao tree, or pods open and scoop out the beans. These beans are
allowed to ferment and then dry. Then they are cleaned, roasted and hulled. Once the shells have
been removed they are called nibs. Nibs are blended much like coffee beans, to produce different
colors and flavors. Then they are ground up and the cocoa butter is released. The heat from the
grinding process causes this mixture of cocoa butter and finely ground nibs to melt and form a
substance known as chocolate liquor. From there, different varieties of chocolate are
What is conching?
Raw unprocessed chocolate is gritty, grainy and really not suitable for eating. Swiss
chocolate manufacturer Rudolph Lindt discovered a process of rolling and kneading chocolate
gives it the smoother and richer quality that eating chocolate is known for today. The name
'conching' comes from the shell-like shape of the rollers used. The longer chocolate is conched,
more luxurious it will feel on your tongue.
Market Size (by value & by volume)
The Indian chocolate market is valued at Rs. 650 crores (i.e. Rs. 6.50 billion) a year. The
Indian chocolate bazaar is estimated to be in the region of 22,000-24,000 tonnes per annum, and
valued in excess of US$ 80 million.
Chocolate penetration in the country is a little over 4 percent, with India's metros proving to
be the big draw clocking penetration in excess of 15 percent. Next, comes the relatively smaller
cities/towns where consumption lags at about 8 percent. Chocolates are a luxury in the rural
which explains the mere 2 percent penetration in villages.
The market presently has close to 60mn consumers and they are mainly located in the
Major Players & their Market Share
The major players in the Indian Chocolate Industry are:
1. Cadbury’s India Limited
2. Nestle India
3. The Gujarat Co-operative Milk Marketing Federation (GCMMF) – AMUL
4. Cocoa Manufactures and Processors Co-operative (CAMPCO)
Bars Count
Lines Wafer Panned Premium
Cadbury’s Dairy Milk &
5-Star, Milk
Treat Perk Gems,
Temptation &
Nestle Milky Bar Bar One,
Kit Kat,
Munch Nutties
Milk Chocolate
Fruit ‘n’ Nut
Almond Bar
Campco Campco Bar,
Turbo Treat
Cadbury’s India Limited – A Study
Cadbury is a very old trusted name. It all started in Birmingham in England when John
Cadbury started his family grocery shop with side business of cocoa and chocolate products in
around 1824. His two sons, Richard and George, expanded their family business of cocoa and
chocolate. Bournville, a town near Birmingham, was build by them as a part of expansion of
Cadbury family is also known for their contribution in social reforms and considered as liberals.
This family was in the forefront of adult education movement in England.
Cadbury was originally incorporated as a wholly owned subsidiary of Cadbury Schweppes
Overseas Ltd (CSOL) in 1948. The company’s original name was Cadbury Fry (India) Ltd. In
CSOL diluted its equity stake to 40% to comply with FERA guidelines. In 1982, the name was
changed to Hindustan Cocoa Products. CSOL’s shareholding was increased to 51% in Jan ’83
through a preferential rights issue of Rs700mm. The current name was restored in Dec ’89. In
Cadbury Schweppes made an open offer to acquire the 49% public holding in the company. The
parent holds over 90% of the equity capital after the first open offer. A second open offer has
made to buyback the balance shareholding, after which the company would operate as a 100%
subsidiary of Cadbury Schweppes Plc
Ever since the Cadbury is in India in 1947, Cadbury chocolates have ruled the hearts of
Indians with their fabulous taste. The company today employs nearly 2000 people across India.
Its one of the oldest and strongest players in the Indian confectionary industry with an
estimated 68 per cent value share and 62 per cent volume share of the total chocolate market. It
exhibited continuously strong revenue growth of 34 per cent and net profit growth of 24 per cent
throughout the 1990’s. Cadbury is known for its exceptional capabilities in product innovation,
distribution and marketing.
With brands like Dairy Milk, Gems, 5 Star, Bournvita, Perk, Celebrations, Bytes, Chocki,
Delite and Temptations, there is a Cadbury offering to suit all occasions and moods.
Today, the company reaches millions of loyal customers through a distribution network
of 5.5 lakhs outlets across the country and this number is increasing everyday.
Our objective is to
Grow shareholder value…over the long term
Cadbury in every pocket
Our marketing strategy is aimed at achieving this vision by growing the market, by
pricing strategy that will create a mass market and to have offerings in every category to
widen the
Our Managing For Value Process incorporates
Setting stretched financial objectives.
Adopting Value Based Management for major strategic and operational decisions and business
Creating an outstanding leadership capability within our management.
Sharpening our company culture to reflect accountability, aggressiveness and adaptability.
Aligning our management rewards structure with the interests of our shareowners.
Life Full Of Cadbury
Cadbury is an organisation which impacts and interacts with the consumers.
Cadbury is present in most happy occasions in the life of our consumer.
Our brands excite our consumer.
Cadbury is an expression of a consumer's life.
Cadbury Full Of Life
Cadbury as a company is vibrant.
Cadbury ia a fun and energising workplace.
Cadbury is robust and alive.
Cadbury dominates the Indian chocolate market with above 65 – 70 % market share. Besides, it
has a
4% market share in the organized sugar confectionery market and a 15% market share in milk/
malted foods segment.
Changing product mix
Contribution to turnover
Contribution to turnover
Chocolate 59% 65%
Sugar Confectionery 9% 10%
Food Drinks 32% 24%
Categories/ Brands
Chocolate Bars , Count lines , Panned confectionery ,
Wafer chocolates, Assorted Chocolates & Gift Chocolates
Sugar Confectionery Googly , Mocka, Gollum, Frutus & Nice Cream
Food Drinks Bournvita, Delite & Drinking Chocolate
Cadbury's Indian operations are not just the largest in Asia but also the cheapest. In India,
Cadbury has the largest market share anywhere in the world and has been the fastest
FMCG Company in the last three years with a compound annual growth rate of 12.5 per
Plant locations
Cadbury’s manufacturing operations started in Mumbai in 1946, which was subsequently
transferred to Thane. In 1964, Induri Farm at Talegaon, near Pune was set up with a view to
modern methods as well as improve milk yield. In 1981-82, a new chocolate manufacturing unit
set up at the same location in Talegaon. The company, way back in 1964, pioneered cocoa
farming in
India to reduce dependence on imported cocoa beans. The parent company provided cocoa seeds
clonal materials free of cost for the first 8 years of operations. Cocoa farming is done in
Kerala and Tamil Nadu. In 1977, the company also took steps to promote higher production of
by setting up a subsidiary Induri Farms Ltd near Pune. In 1989, the company set up a new plant
Malanpur, MP, to derive benefits available to the backward area. In 1995, Cadbury expanded
Malanpur plant in a major way. The Malanpur plant has modernized facilities for Gems, Eclairs,
Perk etc. Cadbury also operates third party operations at Phalton, Warana and Nashik in
These factories churn out close to 8,000 tonnes of chocolate annually.
Raw Material Composition in 2004
Product Name Quantity
(in Kgs)
(Rs) / Ut
Total Cost
(in Rs.)
Milk Powder / Liquid Milk / Cream 26232610 15.79 414212911.9
Dry Fruits 432340 162.6 70298484
Edible Oil 2167450 51.72 112100514
Glucose-Liquid 27061090 13.17 356394555.3
Cocoa Beans / Butter/ Powder 8478460 109.95 932206677
Malt Extract 8679690 20.39 176978879.1
Total 2062192021
Cadbury's India Limited
Raw Material Composition in 2004
(in Rs.)
Malt Extract
Cocoa Beans/
Edible Oil
Dry Fruits
Milk Powder/
Liquid Milk/
Cream 20%
Product Name Stock
Sales Qnty
(Rs. Cr.)
Chocolates / Coated Wafer & Confectionery 58.57 23810373 22064912 518.51
Malt Foods (Jar/Refill/Tin) 22.02 3206253 3030579 194.97
Excise duty 13.69 - - 121.23
Confectionery- Hard Boiled 4.04 4425758 4023276 35.79
Cocoa powder (Tin/Bags) 1.67 33312 29904 14.78
Total 99.99 31475696 29148671 885.28
Cadbury's India Limited
Finished Products - Sales Revenue - 2004
(in Rs. Crores)
Cocoa powder
Hard Boiled
Excise duty
Coated Wafer/
Malt Foods
Cadbury’s India Limited
Sales in Rs. Million
Years 1998 1999 2000 2001
Sales 3354 3892 4324 4716
98 99 00 01
Rs. Million
Category Brand Variants
Bars Dairy Milk
Fruit n Nuts
Double Decker
Roasted Almond
5 Star
Count Lines 5 Star Chrunchie
Milk Treat Chocolate
Wafer Chocolate Perk Perk
Perk XL
Other Chocki Mint, Strawberry & Chocolate
Premium/ Gift Chocolates Temptation Rum, Cashew, Almond & Orange
Celebrations Various Gift Packs
Cadbury’s Dairy Milk (CDM):
Cadbury’s Dairy Milk is the flagship brand of Cadbury’s not only in India but world wide. CDM
the single largest selling unit in India. It has annual sales to the tune of Rs 200 crore. CDM not
accounts for 30 per cent of the total chocolate market in value, but commands nearly 26 per cent
volume terms and close to 30 per cent of Cadbury’s annual turnover.
Moving from a predominantly adult positioning in the days of the legendary dancing girl ad, to
the teens and the tweens, when the Cyrus Broacha ads hit the airwaves, CDM has made a long
journey. In spite of the new categories being explored by Cadbury, its star brand remains
Dairy Milk (CDM) which continues to corner almost 30 per cent of the chocolate market.
Cadbury’s Temptation:
Cadbury’s Temptation is premium chocolate brand aimed for high value consumption. Various
variants available are Almond, Rum, Cashew & Orange. Cadbury’s temptation is priced at Rs. 40
Cadbury’s Celebration
Cadbury India launched its premium Celebrations range, which contains traditional Indian dry
fruits wrapped in Dairy Milk chocolate. This gifting option combines the pleasure of giving
away dry
fruits — which Indians traditionally consider a premium, healthy gift — with chocolate.
now has 90 per cent market share in this profitable segment.
Cadbury’s chocolate brands registered double-digit growth in 2002, touching an astounding
19 per cent in the second half of that calendar year. Getting the power brands right was the first
priority, so genuine re-launches of the products were made.
However, the growth rate was declining after that. The growth went down from 19 per cent
in 1999 to 12 per cent in 2000 to single-digits, with seven per cent in 2001. If it staged a smart
recovery to nearly 10 per cent in 2002, it was largely on the back of Chocki and the revamped
Consumer feedback suggested that the old 5 Star was too chewy, and people complained of it
sticking to their teeth. It was made softer and melted easily in the mouth & introduced as 5 Star
Perk was made much lighter and the size of the bar increased to match Nestle’s Munch. Perk
had been under fire from Nestle’s deadly duo of KitKat and Munch, but after the relaunch, its
marketshare is two per cent more than KitKat’s. And, the five-year-old brand is now almost as
big as the decades-old 5 Star in size, both in the region of Rs 50-55 crore.
Packaging innovation has played a vital role in revamping of various Cadbury’s brands.
Heroes brand is simply a multi-pack with miniatures of all its most popular brands in a single
outer case.
Rich Dry Fruit Collection
For Gifting Festive Season
Cadbury Celebrations’ Rich Dry Fruit
Collection – a range of premium
chocolate gift boxes.
Available in attractive packs, the Collection caters to a premium gifting consumer and is an ideal
festive gift. It is a unique combination of the best Cadbury chocolate and premium dry fruits and
comes in four different formats each of which is a mix of select premium dry fruits enrobed in
Cadbury Dairy Milk chocolate.
Cadbury's Creative Launch
A new ‘after dinner' segment
Cadbury Desserts
“for sweet moments after dinner”
“Khaane Ke baad Kuch Meetha Ho Jaye”.
Rs. 20/- per packet of 44 gms
Cadbury Dairy Milk (CDM) Desserts – with rich indulgent crème center, in exotic & traditional
flavors of Tiramisu and Kalakand. CDM Desserts offer the perfect rounding off taste, after meal
adds special ‘Meetha' moments to the family. The rich tastes of CDM combined with the unique
crème center in exotic flavors provide a special chocolate experience. CDM Desserts add delight
the after-meal moments, especially with the consumers whose current choice of sweets range
home made delicacies to fruits to meethai.
After the roaring success of Nestle’s Munch and Chocostick, Cadbury’s empire struck back hard.
The Rs 5 price point accounts for more than half of all chocolate sales. Nestle had seized the
initiative at this price point, with its launch of Munch, now a roaring success (and the largest
product at that price point). Today, Cadbury has four products at this price point: CDM, Perk, 5
and Gems — and the five-rupee CDM bar is its single largest-selling SKU.
“This is a potent price point in India, because the average purchasing power is abysmally
low,” is what industry analyst have to say.
Nestle kicked off one of the biggest success — the liquid chocolate category with its brand
Chocostick priced at Rs.2 — three months ahead of competition. Cadbury did react with Chocki,
priced at Rs 2, expanding the concept of sachetisation to new frontiers. Chocki has been the
biggest growth driver for Cadbury as well as the entire chocolate category. The novelty of
format endeared itself to the existing customer. In less than one year, it constituted nearly 10 per
of the total chocolate market, split equally between Cadbury and Nestle.
Volume led growth strategy
Cadbury has followed a well-planned strategy of fuelling volume growth by introducing smaller
packs at lower price points. Simultaneously, the company seems to have astutely juggled with the
larger pack sizes and raised prices to a degree higher than what appears at face. The strategy has
driven volumes in the last two years and we expect the volume growth to continue in the next
Chocki, selling at a potent price point of Rs 2, was ideal for smaller towns, especially since it did
need refrigeration. But Chocki started to cannibalise other higher-priced chocolates in larger
The students of Bombay Scottish (an upmarket school in Mumbai) are not supposed to eat
Chocki, they should not have even heard of the product.
Chocolate needs to be distributed directly, unlike other FMCG products like soaps and
detergents, which can be sold through a wholesale network. 90% of chocolate products are
directly to retailers.
Distribution, in the case of chocolates, is a major deterrent to new entrants as the product has
to be kept cool in summer and also has to be adapted to suit local tropical conditions.
Cadbury's distribution network used to encompasses 2100 distributors and 450,000 retailers.
The company has a total consumer base of over 65 million. Besides use of IT to improve
logistics, Cadbury is also attempting to improve distribution quality. To address the issues of
stability, it has installed VISI coolers at several outlets. This helps in maintaining consumption
summer, when sales usually dip due to the fact that the heat affects product quality and thereby
To avoid cannibalization of its higher priced products from lower priced ones, Cadbury is
setting up two separate distribution channels – one for CORE business & other for MASS
with different stockists, wholesalers and retailers. One set will be dedicated to Cadbury’s high-
products and traditional chocolates. The other will cater to the mass market brands namely
Halls, Eclairs et al — all products priced below Rs 3.
But today, Cadbury's distribution network reaches out to six lakh outlets each for its
chocolate & confectionery brands (i.e. total reaching12 lakh outlets).
Typically it is said that chocolates are being eaten when everyone is happy. And this is
something advertising has always portrayed. But it is found chocolates are eaten under diverse
conditions and moods - when people are anxious, when they are sad, when happy - a whole
range of
emotions. Condensing these views & thoughts, it can be said chocolate is a true soul mate.
who is with you through the ups and downs of life, helping you bounce back. And that's what
Cadbury's Dairy Milk (CDM) positioned itself as - a special friend.
% Share of various Brands Ad spending of Cadbury
Here, the 6 Cadbury brands shown in the graph comprise 85% of the advertising pie, whereas,
rest of
the 9 brands advertised by Cadbury comprise 15% of the advertising. Cadbury Dairy Milk
is the most advertised brand (with 22%).
“Kya Swad Hai Zindagi Mein” redefined the way Indians looked at Cadbury
Chocolates. (The commercial showed a beautiful young lady overcoming all obstacles on the
ground, crossing boundary, watchman, securities and embracing her lover who won the game by
hitting a six). This theme introduced in around mid 90’s bought instant growth to Cadbury’s
Milk. The Ad campaign ran successful for about four years and immersed deeper inside hearts of
In March 2002, Cadbury launched its next advertisement campaign for its flagship chocolate
brand, Cadbury's Dairy Milk (CDM). The campaign featured a television (TV) commercial that
significantly different from the company's earlier commercials for the brand. It featured Cyrus
Broacha interviewing college students and asking why they liked to eat CDM. This was followed
college students 'singing' their excuses for eating CDM. Just as the commercial seems all set to
with the students and Cyrus singing the famous CDM theme, 'Khane Walon Ko Khane Ka
Bahaana Chaahiye' (those who want to eat, will find excuses), a student comes up and
The advertisement aimed at conveying the idea that no specific occasion is required for
consuming CDM. This was a significant departure from CIL's strategy of appealing to
in India, who sought a rational justification for indulging in chocolate consumption.
Cadbury roped in Preity Zinta for its PERK brand. Preity Zinta’s angelic dimples laid the
foundation for what would become the Indian teenager’s favorite snack. After this campaign,
PERK’S sale surged
Cadbury’s advertising has, over the past few years, aptly reflected India’s passion for
Dil ko jab kushi choo jaye..."...kuch meetha jo jaye.."
Akhir barvi pass ho hi gaya." kuch meetha jo jaye..
Log Cadbury Kyon Khate Hai….Khaane waalon ko khaane ka bahaana."
Cadbury’s Dairy Milk…..Asli swad zindagi ka
“khaane ke baad kuch meetha ho jaaye.”
Looking wistfully at a photograph, Mr. Bachchan
thinks, he recollects the photo-shoot when he had
thrown the cap off his friend's head.
Aaj dil ne socha yun, kissi apne ko kya doon?
Jo usse kahe tum apne ho,
.jo apne aap mein khaas ho,
jo sirf taufa nahin ehsaas ho
Jisme rishto ki mithas ho….
Cadbury’s Celebrations
Rishto ki Mithas
Cadbury And The Worm Controversy
The discovery of worms in some samples of Cadbury’s Chocolate in early October 2003
created one of the biggest controversies in India against a Multi National reputed for being a
benchmark of QUALITY.
The controversy created an deep adverse impact on the company with their sales not only
drastically dipping down, but at the same time allowing the competitors to establish their
and taking maximum advantage of Cadbury’s misfortune.
The controversy, and the adverse publicity received in several countries, set back its plan of
outsourcing model which would have resulted in significant revenue generation, several months
The "worms’ controversy" came at the worst time….the next few months were the peak
season of Diwali, Eid & Christmas. Cadbury sells almost 1,000 tonnes of chocolates during
Diwali. In that year, the sales during festival season dropped by 30 per cent. The company
its value share melt from 73 per cent in October 2003 to 69.4 per cent in January 2004. In
however, it inched up to 71 per cent. CDM sales volumes declined from 68 per cent in
’03 to 64 per cent in January 2004
Clearly, the worm controversy took a toll on Cadbury's bottom-line. For the year ended
December 2003, its net profit fell 37 per cent to Rs 45.6 crore (Rs 456 million) as compared
with a 21 per cent increase in the previous year.
However, Cadbury’s reiterated that all through the 55 years of leadership in India, that it has
remained synonymous with chocolates and have remained committed to high quality and
'Project Vishwas'
“Steps to ensure quality & regain the confidence”