Cadbury product life cycle
- 1. Presented by: Malvika M.E.(FT) 1 year 1955
- 2. CONTENTS • Introduction • Product introduction • Growth phase • The Worm Controversy • Maturity Phase • Decline Phase • Current Scenario
- 3. INTRODUCTION • Cadbury chocolates started in Birmingham(England) in 1824 by John Cadbury. • Dairy Milk chocolate was introduced in 1905. A higher proportion of milk was used within the recipe. In 1914 it became the company's best-selling product. • Cadbury India began its operations in 1948 by importing chocolates and then re-packing them before distribution in the Indian market. • Cadbury is a segment of Mondelez Intenational.
- 4. Manufac- tring plants 1. Thane 2. Hyderabad 3. Induri (Pune) 4.Malanp- ur (Gwalior) 5. Bangalore 6. Baddi
- 5. Sales Offices 1. New Delhi 2. Mumbai 3. Kolkata 4. Chennai Corporate Office • Mumbai
- 7. PRODUCT INTRODUCTION • Entry in India: 1948 • High failure rates as in the land of gulabjamun and rasgulla chocolate was an alien and expensive. • High importing and marketing cost. • Limited distribution. • With the introduction of Dairy Milk other products were also introduced like dairy milk fruit and nut, dairy milk bubbly, dairy milk silk, dairy milk oreo and many more. • In 80s cadbury decided to manufacture Dairy milk in India to reduce importing cost.
- 8. Growth Phase • Increasing sale • Competition with other companies • Promotion emphasize brand ads. • Manufacturing dairy milk in India could reduce the cost but other companies were already selling at lower price. So cadbury made a communication strategy in order to target the children. So in 1991 they released there first advertisement.
- 19. October :2003 • A month before Diwali, the FDA Commissioner recieved complaints about infestation in two bars of cadbury dairy milk(Market of Cadbury was 70% at that time.) • Adverse media coverage. • Sale descreased in the first 10 weeks(festival season) along with the employee morale. • The challenge was to restore confidence of the consumers,employees etc.
- 20. Defence • Cadbury issued a statement that the infestation was not possible at the manufacturing stage but poor storage at the retailers was most likely cause of the reported case of worms. • FDA Commissioner told ““It was presumed that worms got into it at the storage level, but then what about the packing – packaging was not proper or airtight, either ways it’s a manufacturing defect with unhygienic conditions or improper packaging.” The heat of negative publicity melted Cadbury’s sales by 30 per cent, at a time when it sees a festive spike of 15 per cent.
- 21. Remedy for the Worm Controversy A focused and intense communication program was implemented over the next six months to rebuild credibility and restore confidence among the key stakeholders. 1. In media, the key message that infestation was a storage-linked problem, not manufacturing related, found widespread acceptance. 2. Sales volumes climbed back to almost to pre-crisis levels eight weeks after the launch of new packaging – a concrete step taken by the company to minimize the incidence of infestation. This reflected consumer confidence in the brand and the company.
- 22. MATURITY PHASE • Sales decline. • Market become saturated. • Line extension occurs. • Stylistic product changes. • Heavy promotion to dealers and consumers. • Prices and profit fall. • Cadbury has adopted numerous extension strategies on its core dairy milk brand and its due to competitive nature of the chocolate confectionery market. These tensions are necessary in order to extend the life of a brand and drive growth in this sector.
- 25. Product Weight(gm) Dairy milk 23, 52 Dairy milk Fruit & Nut 36 Dairy milk Crackle 36 Dairy milk Silk 137 Dairy milk Silk Bubbly 120 Dairy milk silk oreo 130 Dairy milk Lickables 20 Dairy milk shots 19.8
- 26. DECLINE PHASE • Large drop in sales. • High price policy is used. • Large inventories of unsold items.
- 28. CURRENT SCENARIO • In India its approx revenue is $1 billion. • Mondelez has highest market share of Indian cadbury dairy milk globally. • 2 Lakh outlets along with 70,000 mini fridges has been installed in India. • Cadbury chocolates share 70% of market share in India.