Cadbury Bournville – The food of the

Gods and other Top Management

 Ashwini Shinde

Pramod Singh

Dharmendra Kumar

Ramesh Paloti

Vikas Misar

Prince Malhotra
 Key Learning Outcomes

•History of Chocolate
•Introduction to Cadbury
•New Product Development
•Market Research
•The Launch Strategy for Cadbury Bournville
• The Marketing Communications Mix
History of Chocolate
• Chocolate begins with a bean ... a cacao bean.
• The scientific name of the cacao tree's fruit is "Theobroma Cacao" which means
"food of the gods."
• In fact, the cacao bean was worshipped as an idol by the Mayan Indians over
2,000 years ago.
• In 1519, Hernando Cortez tasted "Cacahuatt," a drink enjoyed by Montezuma II,
the last Aztec emperor.
• By the mid-1600s, the chocolate drink had gained widespread popularity in
France.
• One enterprising Frenchman opened the first hot chocolate shop in London.
• By the 1700s, chocolate houses were as prominent as coffee houses in England.
• Sixty years later, Conrad Van Houten, a Dutch chemist, invented a cocoa press
that enabled confectioners to make chocolate candy by mixing cocoa butter with
finely ground sugar.
Introduction to Cadbury
• Cadbury India is the leading supplier of confectionery on the Indian market..
• A global leader in the confectionery/beverages market. Operating in India since
1948.
• Cadbury India has five production plants: Thane, Induri (Pune) and Malanpur
(Gwalior), Bangalore and Baddi (Himachal Pradesh) and 4 sales offices (New
Delhi, Mumbai, Kolkota and Chennai). The corporate office is in Mumbai.
• Cadbury prides itself on its market leading brands such as Dairy Milk, Bourn-
Vita, Halls, and many more……

Chocolate Confectionary Milk Food Drink Candy

The company continually strives to drive innovation within the

confectionery category and offers its brands in a variety of formats and
pack sizes, relevant to today’s changing consumer environment. Critical to
this success is innovation in the development of new products and brands.
 Background to Cadbury Bournville

As consumer’s taste for indulgence had grown, Cadbury unveiled an exciting product
innovation….offering consumers the sheer luxury and goodness of dark chocolate to
treat themselves.
 • On October 2008, Cadbury relaunched its Bournville brand of dark chocolates in
India.
• Bournville, a much neglected dark chocolate bar from Cadburys‘, has been
relaunched as a new category of dark chocolates in India.
• Dark chocolate is one of the fastest growing categories abroad. However, in
India, it is still in a nascent stage.
• The brands says that one has to EARN this chocolate and not just buy it ,
referring to the quality of this chocolate.
• Bournville is made from the finest Ghana Cocoa beans and was launched in four
variants
Rich Cocoa
Almond
Hazelnut
Raisin & Nut
The brand is retailed for Rs 75 for 80 gms.
• Bournville was targeted not for all customers. This brand is for those who love
chocolates.
• The brand is aimed at the 20-30 yr old SEC A segment.
• This is a chocolate that one will indulge when they feel like indulging. Because
this product tastes differently from ordinary milk chocolates, the brand will
The appeal
brand istoasking
a select consumers
niche. to follow a special brand ritual while eating Bournville.
One has to first enjoy the darkness of this chocolate. Then place the chocolate bar
near the ears and break one cube and hear that crisp sound. Then smell the chocolate
for that special aroma. Then slowly eat the chocolate enjoying it slowly.
New Product Development
• The development of successful new products is one of the ways in which
companies can achieve Competitive Advantage.
• New Product Development is a process which carries a great deal of risk . Over
40% of all new product introductions fail at launch.
• For NPD to be effective, companies have to nurture an innovative corporate
culture so that everyone in the organisation is encouraged to be innovative in
their work.
• Cadbury takes innovation very seriously and it is a major part of Cadbury’s
strategy for success.
• There are many great ideas – many of them generated by chance. However,
only few products make it through to the end of the process.
• As products progress, the company is making an increasing commitment in
terms of resources.
• Once a product is developed, the launch marketing costs are significant; so a
company must carry out extensive market research to ensure a product has
the best chance of appealing to the market.
 Market Research

Market research is the gathering, recording and analysing of information about

markets and their probable reaction to product, price, distribution and promotion
decisions. Market research is critical for successful NPD and marketing mix
planning.
There are various ways of carrying out market research

Do it yourself
For small companies with limited resources.
Market research department
Very large organisations may have their own dedicated market research department.
Market research agencies
Research may be done with the collaboration of the company’s marketing department,
but fieldwork will be carried out by the agency.
Problem definition
This is the realisation that a marketing problem needs information to find its solution.
Research design
This defines what form the research will take and what will be achieved. It
encompasses objectives of the
research. The research design also includes a timeframe and the all-important
costings.
Data collection,
This involves the actual carrying out of the research. There are two main categories of
market research:
Qualitative research: and Quantitative research
Data analysis
A process of gathering, modeling, and transforming data with the goal of highlighting
useful information, suggesting conclusions, and supporting decision making.
Report writing
The final report summarise the objectives of the research and give detailed analysis.
It’s important that the information is clearly presented so that managers can draw
clear conclusions from the report.
Researching Cadbury Bournville
In India Cadbury relaunched Bournville brand for following reasons .

• Cadbury had seen a major opportunity in developing a new category of

chocolates i.e Dark Chocolate Segment.
• In a market where 70 % share is owned by Cadbury, it feels that
Bournville is the right brand to develop the category.
• The research findings about the health benefits also gives an additional
marketing reason to develop this category., i.e. Bournville
• The reason for the relaunch is the competition that Cadbury face from the
imported brands, i.e., Ferrero Rocher, Mars etc.
• Most of the global chocolate brands like Hershey , Ferrero etc are
planning their entry to the lucrative Indian market. Recently the Mars
group launched their brand Snickers in the Indian market.
• The threat has forced the market leader to take a proactive defense
strategy by creating new categories for dark chocolate .
Financial projections

Television AD - 5 crores

Newspapers - 3.80

Hoardings – 1cr

magazines
( health,food,fashion) - 20
lakhs
In-store positioning
The first key challenge was to find the correct in-store position for Bournville. It
was decided to place the product in the confectionery section alongside other
confectionery products that are for ‘in-home’ consumption. Initially, Bournville
was launched in 20 cities.
The Launch Campaign
For a new product like Cadbury Bournville, the main objective of the launch
campaign was to build awareness of the new brand. Cadbury approached this
mainly in the form of advertising.
Advertising:
• Bournville is being promoted via the latest TV commercial .
• The creative agency is O&M and their interactive department Ogilvy
One has a wondrous flash website titled Bournville in promulgating the
product.
Sampling.
In terms of marketing, since Cadbury was launching this as a new
category, a lot of sampling was required. Besides traditional media
campaign, there were below-the-line activities. For example, there were
dark chocolate nights and dark chocolate and wine nights organised in
various hotels. Cadburys have created small packs especially for sampling.
Point Of Sale (POS)
Naturally, given that the product is sold in retail outlets, in-store marketing
support was also developed. This consisted mainly of attractive floor units,
shelf headers and glorifiers.
Future Challenges for Cadbury Bournville
Going forward, Cadbury will still need to inform consumers
about the usage occasions for Cadbury Bournville. The brand
will continue to be displayed in the take-home confectionery
section. Strong POS and promotion will continue to be
important.

Conclusion
The introduction of Cadbury Bournville is an example of quite
radical innovation. For such radical innovation the early stage
is not always easy as it takes time to inform consumers and
build awareness of the new product. However initial success
and continued on-shelf presence suggest that Cadbury
Bournville are here to stay!