Bournville

1.2 STP Analysis 1.2.1 Segmentation Cadbury has segmented the market based on 3 parameters: DEMOGRAPHIC: Age: Under 6 years ,6-11 years, 12-19 years, 20-34 years, 35-49 years,50-60 years,60+ PSYCHOGRAPHIC: Socio-economic classification: A1,A2,B1,B2,C,D,E1,E2 1.2.2 Targeting Chocolate Lovers Aimed at 20-30 year olds Target arket Appeal to a select niche People with higher purchasing power Bournville is targeting not all customers. This brand is for those who love chocolates. The brand is aiming the 20 -30 yr old SEC A segment. This is a cho colate that one will indulge when they feel like indulging. Because this product tastes differently from ordinary milk chocolates, the brand was targeted to appeal to a select niche. Bournville is available only in the top 20 cities of India, in most store s that maintain cold storage facilities. Sanjay Purohit, director of marketing, Cadbury India, says, "Mumbai airport has the highest traffic in the country. Since our TG (target group) is SEC A1, this was a good place to make them notice our brand in a dif ferent light. Six lakh people should see the airport model in just one month ± in a never-before way." 1.2.3 Positioning and Unique Value Proposition ³You don't just buy a Bournville; you earn it.´ Bournvilla is being positioned as the finest dark chocolate. The brand is currently promoted as the category innovator. The aura of sophistication and high living is created to place the dark chocolate in the same category as malt whiskey, old wine or champagne -- which is to be enjoyed when you have achieved something, or in other words, earned it. Nikhil Rao, assistant vice-president, marketing, Cadbury India, explains, "People have to acquire this taste. The chocolate is positioned as a chocolate for people who have been abroad and are looking for an i nternational taste of chocolate - those who demand really fine stuff and are interested in knowing what has gone into making chocolates." Internationally, a lot of chocolates are meant for special occasions and are also expensive. But in India, the chocola te market has been made accessible by introducing chocolates at Rs 5 and Rs 10 for the masses. To make Bournville a chocolate for discerning tastes, the company came up with the concept of having it only after you have achieved something, that is, the conc ept of 'earning' the chocolate. The chocolate is for those special occasions, where a person wants to treat himself or herself on any of his achievements. It is like opening a bottle of champagne on your promotion. 1.3 4P Analysis 1.3.1 Product On October 2008, Cadbury relaunched its Bournville brand of dark chocolates in India. Earlier Indian consumers hardly had one or two options (Lindt or Vochelle) in dark chocolates to satisfy their taste buds. However Cadbury lost its hold on the premium chocolate segment to imported brands. This threat forced the market leader to take a proactive defense strategy by creating new categories. By creating the new category of dark chocolates, Cadbury wanted the first mover advantage. y o y y Product life cycle Bournville is a growing brand and is a Dog for Cadbury . This is because of it being the market leader in the ³Dark Chocolate´ category in the Indian brands. Product Innovation o The erstwhile gold coast or present day Ghana houses some of the worl d¶s finest cocoa plantations. The genesis of this fine dark chocolate lies in the little white flowers cocoa flowers that blossoms in the Ghana jungles. The cocoa pods are then cut to collect the cocoa beans which travel all the way to Bournville in Englan d, where they are grinded and roasted with utmost care to give each bar of Bournville its characteristic bittersweet taste. The cocoa liquor is the essence of the cocoa bean that imparts the chocolate its intense flavor. Extracted after an elaborate proces s, pure cocoa butter is added to it. It¶s then mixed, stirred and cooled to finally transform into the fine dark chocolate that is Bournville. o Bournville chocolate is made by adding sugar, vegetable fat, and soya as emulsifier into the cocoa. o Being a dark chocolate, it contains many of the health benefits of dark vegetables. Packaging and SKU o Bournville comes in elegant packets, wrapped in metallic red colored foil which sports good appeal and distinct gloss making it perfect for gifting purpose. o l f i ti l f t ill B iti i li i f SK . t i ft i ft t l t it t tt i t it S itz l i t f lt l t . l t lti fit , i i t l t l o o it. i i l i ,9 . BOURNVILLE EARLIER y V i t o B BOURNVILLE NOW ill i 4 i . Ri h C t t .H z l t tt f ll t .R i i N t i t ft i i t . lm t i ft t t . t i . ti i l t ft z l t l t i li t l l i fl ft i i l t ft t t i t t i t i t i t l t i it t t . . Pl fi l l i, f t i li ,B l i, K l t t l t B t f t i i i i. f f iliti lP t i I i : .It ffi ,I f i i l i P ffi i i. , l t ll . y Di ib i o f l t t o o t t l t l t t l i . s ist i ti t ist i t s 4 , et ilers. i i liz ti f its i er ri ed roducts from lower riced ones, dbury s set up two separate distribution channels one for core business and other for mass markets. i ti i t i tl , li l t tl t t il sses t F l t li .9 % y In-store positioning: y 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. Point Of Sale o 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. o 1.3.3 Promotion Some of the highlights of the promotion and adverti sing strategy used by Bournville are: y y ine chocolate meant for th e discerning connoisseur o Commenting about the consumer insig t e ind t e cam aign , Avasthi elaborates, "Typically, consumers buy ultra- remium roducts on imagery w ic derives from legend , pedigree and rituals around the product International look and an international cast to compete with foreign brands o The spot opens on an Englishman holding a slab of Cadbury Bournville in his hand, and explain ing the legend behind it. It aimed at telling the viewers about the tradition in Bournville (where the chocolate originates from). The look of the ad is designed to help Cadbury leverage on the international appeal of Bournville. o ³Since the chocolate was born in Britain, we wanted its pedigree to be reflected in the commercial,´ reveals Avasthi. y Use of social media marketing o Cadbury India has created a blog, the -dark-truth.com, and a virtual character named Old Hound to strengthen the positioning of its dark chocolate brand, Bournville. y y Instead of banner ads, they wanted to engage the SE A on a higher level so as to create the right imagery of the dark chocolate brand in India. Use of raditional media o he brand, positioned on the plank of You don't just buy a Bournville, you earn it' has mainly used traditional media such as V, print and outdoor so far. Tie-ups ith arious organisation for promotion he company also samples the chocolates with Jet A irways customers from o time to time. o It has also tied up with the Wine Society of India, where during the tasting sessions in various cities, Bournville is sampled with the participants. Participants are also told about how to appreciate dark chocolates wih red t wine. o y Outdoor Promotion o A huge oversized bar of partially uncovered dark chocolate at the umbai airport seems to have both travellers and visitors drooling. o As part of the outdoor campaign running in umbai and the ational apital egion, four other outdoor creatives were designed and displayed on hoardings, bus shelters and foot overbridges. he four creatives read: 44% ocoa, % Bliss´; Fine. ark. hocolate´; ich ocoa, azelnut, Almond, aisin & ut. hoices, hoices´; and You don't buy a Bournville, you earn it´. he high-visibility Patel Bridge on arine rive in South umbai was also taken up for the launch campaign. 1. . Pri e Figure 2: Cadbury Bournville Pricing Strategy vis-a- vis Competitors SZ $ -Price 5% ss  ¨    ©¨§ "! Pre ¢ ¡¥£ ¦¥¤£¢¡   N S v e Te S %# $ !# Variants Rich Cocoa Ha elNut Raisin and Nut Almond SKU 80gm 0gm 0gm 0gm MRP in Rs. 75 75 75 75 1.5 SWOT Analysis 1.5.1 Strengt s 1. Health Benefits: Analysts say the "premiumisation" trend in the chocolate market will pick up further as a growing body of medical evidence suggests that chocolate with a high cocoa content is actually good for health. 2. Strong Brand Image: A dominant leader in the volume segment, the company s latest move is designed to strengthen its presence in the value market as well. Cadbury is a major player in Indian confectionary segment. It gives a strong and complementary strategic fit in Indian market for the combined group. Cadbury¶s main source of revenue is from chocol te market which is a 70%. It captured the market with affordable prices. 3. Continuous Innovation: The brand has been continuously launching variants to target different consumer segments . . Sole Product in Dark -chocolate category: 5. High Distribution Reach: CADBURY IS HAVING A VERY STRONG DISTRIBUTION NET ORK. IT IS HAVING TIE-UP ITH 1.2 MILLION SHOPS THROUGHOUT INDIA. CADBURY'S DISTRIBUTION NETWORK ENCOMPASSES 2100 DISTRIBUTORS AND 450,000 RETAILERS . 1.5.2 Weaknesses 1. High Price: Bournville is priced higher than other chocolates limiting its target customer 2. Small market for bitter chocolates in India : People in our country generally prefer sweet and milky chocolates. So establishing a position was difficult. 3. Classist Perception: The message of µearning it¶ and the µnot -for-everyone¶ aura keeps a considerable section away from consuming the chocolate. . Promotion: Consumers are not able to relate to the advertisements and promotions. O ortunities 1. Changing lifestyles- Greater disposable income and increased purchasing power among the Indian consumers can be further capitali ed. 2. Gap in the ³Dark chocolate´ category : The dark chocolate market segment is still unexplored and faces no competition from other Indian brands in this segment. 1.5. Threats & &4 & 3 Tabl 1 ill P i 1 0) ' & 21 ( Tabl oreign competition: aces tough competition from foreign brands like Mars, erro Rocher and Hershey. 2. Shift in consumer preference : The premium segment in India is getting more inclined towards foreign brands in the dark chocolate category. 1.