Millions of people all around the world have a special place in their hearts for Cadbury, a well-known name in the chocolate industry. Its experience in India, however, has been particularly remarkable since it was characterised by a strategic approach that allowed it to not only survive but also prosper in a brutally competitive market.
In the 1950s, chocolate was seen as a luxury in India, especially among the powerful urban elite. However, for the great majority of people, chocolate was something that only the British and upper class Indians could afford. 'Mithai' was the preference of the Indian. Dairy Milk was introduced by Cadbury in India in 1948. It didn't have the typical bitter chocolate flavour, making it the ideal chocolate for Indian taste buds. The higher milk content made it more palatable to the Indian tongue.
When Cadbury first entered the Indian market in the 1940s, the country's chocolate consumption was minimal due to factors like affordability, lack of awareness, and the strong presence of traditional sweets. Over time, various international and local chocolate brands attempted to establish themselves, but none succeeded in capturing a significant market share.
Cadbury's Strategy in Making its Mark in The Nation
The dedication to quality that Cadbury has was one of the pillars of its success. The firm constantly provided items that were both safe to consume and consistent in flavour. This dependability promoted customer trust, which was important in a market where worries about food safety were pervasive. Cadbury understood that to succeed in a diverse country like India, a one-size-fits-all strategy wouldn't work. They adopted a localised approach, introducing products that catered to Indian tastes while retaining their international essence. Innovations like the Dairy Milk Silk, which combined their classic taste with an Indian touch, struck a chord with consumers.
Cadbury also followed the Indian custom of giving sweets as gifts on significant days like Diwali, Holi, Rakshabandhan, and other notable festivals. However, the majority of Indians choose to give 'Mithai' instead of a box of chocolates on this occasion. Ogilvy created the well-known "Kuch meetha ho jaye" campaign as a result.
The commercials continue to target the urban demographic and the young, independent workforce that work in offices, particularly in large cities. The television commercials aided Cadbury in becoming a viable substitute for traditional "mithai." particularly if it had to do with the term "Mitha" in the slogan.
Here, the word "Mitha" signifies anything sweet. The firm was better able to relate to Indian culture because of the focus on the term "mitha." Offering someone 'Mitha' is akin to offering an invitation to celebrate all types of joyous occasions, such as passing an exam, a wedding, or even just an old friends' reunion during Diwali.
Distribution and Accessibility
In order to combat the notion that chocolate is an expensive luxury, Cadbury concentrated on making its goods more accessible to a larger spectrum of consumers. This strategy increased the company's consumer base by tapping into India's expanding middle class. Dairy Milk was able to transition from a sweet that we occasionally consume to something to be gifted occasionally by targeting a variety of age groups, demographics, and economic levels. Local merchants of sweets began selling Cadbury Celebration alongside the traditional "Mithai." Around the time of several Indian festivals, even ordinary merchant stores set up special kiosks providing Cadbury celebrations
Recognizing the challenges of reaching consumers across diverse regions, Cadbury established an extensive distribution network. This allowed its products to be available even in remote areas, ensuring that consumers from all walks of life could enjoy their chocolates.
Cadbury's journey from being a relatively unknown player in the Indian chocolate market to becoming an industry leader is a testament to its strategic prowess and understanding of the Indian consumer psyche. By building trust, embracing localization, and consistently innovating, Cadbury managed to carve a niche for itself and reshape the chocolate consumption landscape in India.
While Cadbury's success was marked by its ability to understand and adapt to the Indian market, it also highlighted the importance of a comprehensive strategy that incorporates quality, marketing, distribution, and community engagement.