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Cadbury investing heavily in sales to expand market in India as sales slip
According to the Indian Times, Cadbury brand owner Mondelez International is investing heavily in sales and route-to-market expansion in India, a priority market for the American food giant where sales have slumped to their lowest since 2005.
Cadbury’s factory was set up in India in 1948 and the brand is a significant player within the confectionery market with a value market share of over 70% (in the chocolate category). Cadbury Dairy Milk is considered the ‘gold standard’ for chocolate in India. Cadbury has six company- owned manufacturing facilities in India and since 1965 has also pioneered the development of cocoa cultivation in India. Cadbury’s long-established ties with retailers and distributors have been a major driving force behind its success in growing the business.
This division has been growing at a fast pace and has become fiercely competitive over the years with competitors such as Nestle, Amul and CAMPCO chocolate. During the 1990s, Cadbury had a higher market share; however the entry of competitor Nestle forced Cadbury to extend its target market to include not only children but also adults. This strategy proved to be successful because Indian consumers were already familiar with the brand name and it was therefore not difficult for Cadbury to extend its target market.
After the takeover the Cadbury team also looked at innovations within its advertising campaigns. Cadbury’s campaign, ‘Kuch meetha Ho Jaye!’ (Let’s have something sweet) was a major success with Indian consumers, who associated Cadbury Dairy Milk with celebratory occasions. Campaigns are simple and very relevant to Indian themes. Cadbury understands that India is a country where many festive events such as Eid and Diwali take place; the company’s adverts engage the consumer by showing families celebrating whilst eating Cadbury’s chocolate, this almost gives the impression that Cadbury is an Indian company and cements its reputation as the gold standard for chocolate in the country. Cadbury has connected well with the Indian audience and formed a strong, loyal consumer base.
Moreover, Cadbury was aware that a large number of consumers were still choosing traditional Indian sweets (Mithai/ladoo) over chocolate. The company therefore launched Cadbury Dairy Milk Shots in 2008. The shape of these chocolates resembled traditional Indian sweets and was positioned in the market as ‘chocolate ladoo’.
To read more about Cadbury see our report on Cadbury: losing brand value after acquisition by Kraft.