The case examines Cadbury India Limited's (CIL) repositioning strategies for its major brands during 1999-2002. It provides a detailed account of the company's growth and strong focus on continual product launches. It also examines CIL's distribution, promotion and advertising strategies. The problems faced by CIL in the late 1990s and the initiatives taken by the company to retain its market position are examined. The case also discusses the company's attempts to reinvent its major brands.
In
March 2002, India's number one chocolate company
Cadbury India Ltd. (CIL), launched a new advertisement
campaign for its flagship chocolate brand, Cadbury's
Dairy Milk (CDM). The campaign featured a television
(TV) commercial that was significantly different from
the company's earlier commercials for the brand. It
featured Cyrus Broacha1 interviewing
college students and asking why they liked to eat CDM.
This was followed by college students `singing' their
excuses for eating CDM.
Just
as the commercial seems all set to end with the
students and Cyrus singing the famous CDM theme, Khane
Walon Ko Khane Ka Bahaana Chaahiye (those who want
to eat, will find excuses), a student comes up and
questions Cyrus, Kyon Chaahiye? (Why does one
need an excuse to eat CDM)? The advertisement aimed at
conveying the idea that no specific occasion is
required for consuming CDM. This was a significant
departure from CIL's strategy of appealing to adults
in India, who sought a rational justification for
indulging in chocolate consumption.
A
source at CIL's advertising agency, O&M,
explained, "The format (excuses campaign) was not
giving the brand a chance to explore. And the
formatting was having a marginal negative impact,
especially among the youth, who still form some 70-80%
of CDM's audience. Today, CDM is competing with colas,
snacks and burgers. And there is a feeling that
perhaps these products are speaking a lingo that is
closer to the youth, and that CDM might not be
connecting with the youth as well. Hence the change in
format." |
