FAILED PRODUCT IN INDIAN MARKET

Presented By : Ankita Saxena Pushplaxmi Shettiyar Kirti Shinde Shweta Malviya Shenal Muley Vandana Teotia Suraja Palekar
SKN SINHGAD SCHOOL OF BUSINESS MANAGEMENT

BACKGROUND
Cadbury Picnic is a chocolate bar with milk chocolate and peanuts, covering nougat, caramel, and puffed rice. Picnic is a random composition and has different fairly chunky ingredients. The Picnic brand was launched in India in the year 1998. Cadbury launched Picnic, which is one of its major chocolate from its international portfolio. Picnic was launched to further evolve the chocolate market into the snacking area, a task that has already been initiated by Perk. Picnic was specifically designed for Russian taste thus not suited to the Indian consumer.

Indians felt that this chocolate had too many textures and too many flavours, none of which really made a coherent experience. Indians are very particular about tastes and may not have taken the product taste too well. Picnic was relaunched with a changed composition in smaller packs in the year 1999 26 gm pack priced at Rs. 10 and 43-gm pack priced atRs.15.Picnic is shaped in a very rough manner and can rightly be called ugly looking. Nothing agrees with this better than the slogan for this particular product "Deliciously Ugly". The bars are lumpy in shape and may not have been liked by the Indian consumer. 1998 was a time when India was not really open to such a product. Targeted at males of 18-29 at time when a third of population was below 15 years of age in 2000 points that timing was not correct. Picnic was wrong product in wrong time at wrong place destined to fail !!

CADBURY PICNIC: AN APPEAL TO THE FIVE SENSES

The Packaging The packaging is purple. The word Picnic covers most of the front and also it depicts peanuts and raisins. The packaging informs you in gold writing that its Packed with Peanuts and Raisins. Turning the bar over, the nutritional information, barcode, best before date, weight, ingredients and contact information can be seen.
Appearance upon Opening Cadbury PICNIC is around five inches long and it appears to be packed with SOMETHING. There are large bumps all over the upper surface of the rounded bar. The chocolate is brown coloured milk chocolate.

The Smell The smell of the chocolate lacks the appealing smell associated with other chocolates. The Taste Cadbury PICNIC is crunchy (at the top teeth) and chewy (bottom) (due to the cereal and nuts for the crunch, and the caramel and raisins for the chew). The peanuts are not a dominating flavour in the Picnic unlike in Snickers; in fact, the raisins have a stronger flavour. The cereals are the most noticeable crunch texture, and the caramel makes the bar chewy. The flavour is difficult to describe, perhaps because there were so many different flavours and textures presenting in one bar. The flavours bind together, providing a very appealing taste sensation.

Advertisement Advertisement 3Part 2Advertisement 3 is an innovative advertisement, in which the 1st page would be part 1and it will open out to part 2 of the advertisement. Cadburys Pappu Pass Ho Gayawas a Hit campaign and trying to leverage that same Advertisement Pappu Pahalwanban Gaya campaign could be launched.

RECOMMENDATION
REASONS FOR FAILURE
Physical appearance Its irregular shape did not appeal to the customers. Varying quantity of peanuts and raisins in each PICNIC bar resulting into low standardization. Due to irregular mould of the chocolate opening and eating it was a problem.

Packaging In the packaging the letter PICNIC was so large that it covered most of the front side which was unlikely the Cadbury way to brand.

 This resulted in poor brand association with the customers. Also the name Cadbury could not be clearly and easily seen. The word picnic was surrounded by what looked like a jam spoilage or maybe blood giving a negative impact about the product to the customers. Pricing The PICNIC bar was priced at Rs.10 whereas its competitor Nestle sold Munch for Rs.5 and used aggressive marketing. Inconsistent taste Due to inconsistent proportion of raisins and peanuts taste varied from each picnic bar to bar. Also due to this the chocolate could not meet the taste requirement of some customers resulting in unsatisfied customers.

 Also peanuts and raisins were not properly fried resulting in varying taste. Improper communication about the value proposition to the target audience Cadbury PICNIC chocolate was not properly promoted by the company since it was not its flagship product. Also lack of association with brand ambassador when compared to its competitors resulted into low sales. Also the promotional campaign positioned it as an alternate to full diet which is contrary to the mindset of an Indian customer.

PROPOSED RE-LAUNCH OF PICNIC

Rationale behind the re-Launch Considering the current competitive market and intense competition Cadbury can no longer rely on its flagship product even though it faces low competition in the market. By re-launching Cadbury PICNIC chocolate as an energy bar the product portfolio should be expanded which can prove to be a flanking strategy for Cadbury. Considering the average age composition of the Indian population which lies around 25-30 Cadbury PICNIC chocolate if launched as energy bar on the move it can have a huge target segment.

 Also the company has a state of art manufacturing unit for the production of Cadbury PICNIC bar which can be used without causing additional cash outflow In infrastructure development Cadbury PICNIC chocolate being rich with peanuts and raisins should be relaunched since it can fulfill energy needs in a tasty way and its nutritional facts can be highlighted for this purpose. Cadbury can use the re-launch to make competitors re-strategize also it can have the first mover advantage. There is a very low competition in the market for an energy bar at an affordable price .So, Cadbury being the market leader in Indian chocolate industry with deep financial backing, advanced technology, extensive distribution network and a trusted name can easily cover the gap.

STP ANALYSIS
Segmentation Cadburys Picnic is a mass market product. This confirms that all demographic segments & geographic segments have the potential. Customers for chocolate can be distinctly identified by their behaviour patterns(perceived benefit of the product). Thus, behavioural segmentation is adopted as the basis of segmentation. The market is segmented as per the benefit sought by the consumers. The market can be divided into customers looking for Fun & Relishing, Filling, Instant Energy, Socializing.

Targeting The target chosen for re-launching this product are the consumers looking for Instant energy amidst their fast-paced life. Cadbury Picnic scoring high on nutritional facts and has energy giving ingredients like peanuts, raisins it can initially target from teenagers to working class people. These would involve school-going children during their lunch breaks, college students, working people under stress during the office hours. Positioning We propose to position Cadbury Picnic Bar as TOTAL ENERGY REPLENISHERON THE MOVE as a meal between the meals.

MARKETING MIX:
Product :

Cadbury PICNIC should be showcased as an Instant Tasty Energy Bar for all those who have the need for energy replenishment on the run.
Cadbury Picnic should have a proper mould which would give all the Picnic Bars a uniform shape and size making it much more acceptable. The Picnic Bars should also have a prefixed amount of peanuts and raisins which will make the taste of the Picnic bar uniform and also the calories in each bar at the same quantity. Place : Cadbury PICNIC should make full utilization of the highly efficient distribution network. To make sure that Cadbury Picnic taps the full potential market.

 One more strategy that Cadbury Picnic should use is a higher or an increase in the trade discount should be given. Also Cadbury Picnic has to concentrate more on the Tier I and Tier II cities where the people would actually like a chocolate energy bar to fulfill their energy needs. Price : The price of the energy bar should be around 10 Rs. per bar which would not only be the same as that of the older price but will also be in correspondence to the similar products available in the market today. Promotion : Cadbury Picnic has to go for an aggressive promotion and marketing campaign. The traders should be motivated to gain maximum shelf space for PICNIC leading to more visibility.

 Selection of a brand ambassador for the bar who should be such that there is an easy association for the ambassador and the energy bar Picnic. Brand Ambassador like Akshay Kumar should be roped in as he is considered a Man with of lot energy and has a good popularity among the Indian Masses.
Heavy display of the Cadbury Picnic bar at Public Places by the use of banners, billboards, dazzlers and kiosks. Sponsoring of certain sports and other energy sapping events should be done in such away that would help in gaining a good presence in the consumers mind. Also advertisements should be displayed or telecasted during the primetime in order to get the maximum viewership.

SWOT ANALYSIS OF CADBURYS

Strength
1. Cadbury is a company, which is reputed internationally as the topmost chocolate provider in the world. 2. The brand is well known to people & they can easily identify it from others. 3. Cadbury the world leaders in chocolate, is a well-known force in marketing and distribution. 4. Users have a positive perception about the qualities of the brand. 5. Cadbury main strength is Dairy milk. Dairy milk is the most consumed chocolate in India. 6. By using popular models like Cyrus Brocha, Preety Zinta and others Cadburys has managed to portray a young and sporty image, which has resulted in converting buyers of other brands to become its staunch loyalists. 7. Cadbury has well adjusted itself to Indian custom. 8. It has properly repositioned itself in India whenever required i.e. from children to adults, togetherness bar to energizing bar for young ones etc.

Weaknesses
1. There is lack of penetration in the rural market where people tend to dismiss it as a high end product. It is mainly found in urban and semiurban areas. 2. It has been relatively high priced brand, which is turning the price conscious customer away. 3. People avoid having their chocolate thinking about the egg ingredients.

Opportunities
1. The chocolate market has seen one of the greatest increases in the recent times(almost @ 30%) 2. There is a lot of potential for growth and a huge population who do not eat chocolate seven today that can be converted as new users.

Threat
1. There exists no brand loyalty in the chocolate market and consumers frequently shift their brands. 2. New brands are coming and existing brands are introducing new variants to add upto an already overcrowded market.

Re-launch strategy of Cadburys Picnic

CONCLUSION
The Indian Chocolate Industry is a unique mix with extreme consumption patterns, attitudes, beliefs, income level and spending. At one hand, we have designer chocolates that are consumed when priced at even Rs 2500/kg while there are places in India where people have never even tasted chocolates once. Understanding the consumer demands and maintaining the quality will be essential. Companies will have to keep themselves abreast with the developments in other parts of the world. PRICING is the key for companies to make their product reach consumers pockets. Right pricing will make or break the product SUCCESS. Economical distribution of the products will also be equally important. The companies strategies should focus on driving sales through a right product mix, efficient materials procurement, reduced wastages, increased factory efficiencies and improved supply chain management. Theres an immense scope for growth of chocolate industry in India - geographically as well as in the product offering. The Indian Chocolate Industry is destined to grow and will do so.

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