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Integrated Marketing Communication ON Integrated marketing communication ON SUBMITTETD TO SUBMITTED BY: Prof. Krishan Gopal Pushpander Kumar RQ3702 B28 B.Tech-MBA(IT) Contents Contents ................................................................................................................. 2 Overview of the Company: ..................................................................................... 3 Cadbury’s CSR Vision and Strategy .................................................................... 5 OVER ALL TURN OVER ......................................................................................... 6 CHALLENGES OF CADBURY .................................................................................... 8 Cadbury challenges commuters with 'Eyebrow Language' .................................... 8 WHAT IS BRAND? ................................................................................................. 10 DEVELOPING A BRAND ...................................................................................... 11 CADBURY: THE BRAND ...................................................................................... 13 COMPETITORS: .................................................................................................. 13 BUILDING A MEGABRAND: CADBURY DAIRY MILK ............................................. 18 SCOPE OF THE MEGABRAND ............................................................................. 20 Cadbury Advertising Timeline their products:- .................................................. 21 CADBURY AND ITS PRODUCTS ............................................................................. 24 Bar and a Half ................................................................................................ 26 INTRODUCING CADBURY AS AN AFTER DINNER SWEET ................................. 30 INTERSTING FACTS OF CADBURY ......................................................................... 31 COMMUNICATING STRATEGY ................................................................................ 32 Distribution and Selling strategy: ........................................................................ 34 SWOT ANALYSIS ................................................................................................... 37 BUSINESS OVERVIEW ........................................................................................... 38 INTEGRATED MARKETING COMMUNICATION OF CADBURY .................................. 40 Marketing communication mix elements .................................................................................................................. 40 ADVERTISING THEIR PRODUCTS IN DIFFERENT WAYS ................................ 41 OTHER MARKETING MIX ELEMENTS OF CADBURY ................................................ 49 5 P’S Of Cadbury .................................................................................................. 50 Segmentation, Targeting, and Positioning .......................................................... 56 OVERCOMING THE WORM CRISIS USING IMC ....................................................... 62 STEPS TAKEN TO SOLVE THE CONTROVERSY .................................................. 65 Future Strategy .................................................................................................... 69 CORPORATE SOCIAL RESPONSIBILITY .................................................................. 72 2 Overview of the Company: Cadbury India is a food product company with interests in Chocolate Confectionery, Milk Food Drinks, Snacks, and Candy. Cadbury is the market leader in Chocolate Confectionery business with a market share of over 70%. Some of the key brands of Cadbury are Cadbury Dairy Milk, 5 Star, Perk, Eclairs, Celebrations, Temptations, and Gems. In Milk Food drinks segment, Cadbury's main product - Bournvita is the leading Malted Food Drink in the country. Its heritage can be traced back in 1824 when John Cadbury opened a shop in Birmingham selling cocoa and chocolate. Since then we have expanded our business throughout the world by a program me of organic and acquisition led growth. On 7 May 2008, the separation of our confectionery and Americas Beverages businesses was completed creating Cadbury plc with a vision to be the world's BIGGEST and BEST confectionery company. • Make and sell three kinds of confectionery: chocolate, gum and candy • Operate in over 60 countries • John Cadbury opened for business in 1824 - making us nearly 200 years young • Working with around 35,000 direct and indirect suppliers • Employs around 45,000 people 3 • Every day millions of people around the world enjoy our brand Cadbury is the world's largest confectionery company and its origins can be traced back to 1783 when Jacob Schweppe perfected his process for manufacturing carbonated mineral water in Geneva, Switzerland. In 1824, John Cadbury opened in Birmingham selling cocoa and chocolate. Cadbury and Schweppe merged in 1969 to form Cadbury Schweppes plc. Milk chocolate for eating was first made by Cadbury in 1897 by adding milk powder paste to the dark chocolate recipe of cocoa mass, cocoa butter and sugar. In 1905, Cadbury's top selling brand, Cadbury Dairy Milk, was launched. By 1913 Dairy Milk had become Cadbury's best selling line and in the mid twenties Cadbury's Dairy Milk gained its status as the brand leader. Cadbury India began its operations in 1948 by importing chocolates and then re-packing them before distribution in the Indian market. Today, Cadbury has five company-owned manufacturing facilities at Thane, Induri (Pune) and Malanpur (Gwalior), Bangalore and Baddi (Himachal Pradesh) and 4 sales offices (New Delhi, Mumbai, Kolkota and Chennai). Its corporate office is in Mumbai. Worldwide, Cadbury employs 60,000 people in over 200 countries. BOARD OF DIRECTORS 4 C Y Pal - Chairman Matthew Cadbury - Managing Director Rajiv Wahi - Vice Chairman Jaithirth Rao - Director S N Talwar - Director Rajeev Bakshi - Director Harsh Mariwala - Director N V Iyer - Director David Kappler - Director B Puri - Executive Director P Chhaya - Executive Director J Strydom - Executive Director G Sridhar - Executive Director G M Bhat - Executive Director Cadbury’s CSR Vision and Strategy . Cadbury is committed to growing responsibly. They believe responsible business comes from listening and learning, and having in place a clear CSR vision and strategy. Vision – ‘Working together to create brands people love. They see CSR as a positive contributor to their competitive strategy. Increasingly they think of it as more about doing responsible things profitably than just doing the profitable things responsibly. CSR strategy – Five Pillars of CSR: marketing, food and consumer trends; ethical sourcing and procurement; 5 environment; quality, health and safety; human rights and employment standards; and community investment. OVER ALL TURN OVER The confectionary industry in India is in its growth stage. This marketing Research data from the industry shows that the industry has been making impressive growth in the Indian economy. The confectionary industry is divided into the flowing specific industrial sectors: Chocolate, Hard-boiled candies, Éclairs and toffees, Chewing gums, Lollipops, Bubble gums, and Mints and lozenges (Laura, 2008). The total confectionary market is valued at about 41 billion Indian Rupees. It has a total turnover of about 223500 tones of confectionary produced every year. This is a huge overall turnover which is equal to that of established markets. Most the confectionary are consumed in the urban areas. The urban market constitutes about 73 percent of the total market. This is a skewed market share compared to the rural market which accounts for about 27% of the total market. 6 This market data shows that the rural market has not been well tapped into. With more than 50 percent of the Indians living in the rural areas, it means that there is a high potential in the rural market (Cadbury, 2008).On the product share of the market, hard boiled candy accounts for about 18% of the market, Éclairs and Toffees has about 18% of the market share, while gums and mints and lozenges are at par accounting for 13 percent of the market share each. However chocolate has recorded the highest market growth rate recording about 23 percent growth rate. This is a higher growth rate compared to other markets in the world. However the overall sugar confectionary segment in the Indian market has been declining with a total decline of about 19 percent recorded in 2007 (Laura, 2008). Cadbury with a number of products including Daily Milk, Perk, Gems, 5 Star, Celebration, Bytes, Dairy Milk Éclairs, Éclairs Crunch, Mr. Pops and Halls is the leading player in the chocolate segment, Éclairs segment, Lollipops, and the Mints Segment (Cadbury, 2008). Cadbury is also the leading player in the milk beverage segment which is valued at 16.1 billion Rupees. This segment has an annual turnover of about 63,000 tones and has been growing at a rate of 10.1 percent. Here Cadbury is the main 7 player with Cadbury Bournvitta and Cadbury Bournvitta 5 Star Magic (Cadbury, 2008). CHALLENGES OF CADBURY Cadbury challenges commuters with 'Eyebrow Language' Cadbury is capitalizing on the success of its global "Eyebrows" campaign with a Canadian print and OOH campaign called "Eyebrow Language." 8 Targeting the younger end of the adult demographic, the campaign's creative is based on the "Eyebrows" TV spot, in which two kids with crazy eyebrows pose for a photo. The "Eyebrow Language" creative, made exclusively
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