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Comm Strat 2010

CDM

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The Brief

Business objective:

Increase sales volume of CDM, especially 40g and 175g.

Communication objective:

We want consumers to fall in love (again) with Cadbury

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Discovery

Chocolate segment experienced the most drastic

decline in sales amongst 69 items sold in stores.

Source: Nielsen Malaysia Retail Index

Top 10 categories:

1) Cooking mixes (24.4%)

2) Asian drinks (16.9%)

3) Mouthwash (16.2%)

4) Fruit beverages (14.0%)

5) Hair conditioner (13.5%)

Bottom 10 categories:

1) Chocolate (-11.7%)

2) Infant Cereals (-9.4%)

3) Batteries (-7.9%)

4) Facial Tissues (-5.6%)

5) Shampoo (-5.6%)

Volume (Units) Growth % Change vs Year Ago (Ending June 09)

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Discovery

We see obvious decline in 40g (Small bar) and175g (Big bar) CDM products

Sales of these products have clearly declined vs same month year ago

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Discovery

Good news is: Although our sales volume declined, our

sales value did not.

In spite of increased unit price in chocolates, there are still

CDM loyalists who are willing to pay for their chocolates.

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Moulded 100.0 100.0 100.0 100.0 0.9 -0.7 100.0 100.0 100.0 100.0 -7.7 -9.5

Cadbury Ltd

Moulded65.2 62.2 65.7 62.7 5.8 4.1 63.9 61.3 64.0 61.6 -3.6 -5.9

Maestro Moulded 8.5 9.4 8.8 9.4 -8.7 - 6.6 9.8 10.3 10.4 10.3 -12.2 -8.6

Nestle Moulded 6.5 6.1 6.4 5.9 8.0 6.9 5.3 4.9 5.2 4.8 0.4 -1.4

Vanhouten Moulded 5.4 8.3 5.0 8.4 -34.9 -41.1 5.2 8.3 4.8 8.3 -41.7 -47.6

Kraft Food Moulded 4.4 4.0 4.0 3.9 10.4 3.9 3.3 2.8 3.1 2.7 8.4 2.5

Netw ork Moulded 4.3 3.6 4.5 3.5 20.1 26.7 5.5 5.3 5.7 5.1 -3.2 0.1

VOLUME % SHARE VOLUME %VALUE % SHARE VALUE %

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Defining the CDM Brand Objectives to

generate growth

OUR CURRENT CONSUMERS

Currentbehaviour

Buy less CDM due to their newshopper mentality/ health concern.

Behaviour

Change

Buy more CDM

GET THEM TO BUY US MOREFREQUENTLY

OUR CURRENT NON-CONSUMERS

Currentbehaviour

Not buying CDM because theydont see its relevance to theirlives.

Behaviourchange

Start buying CDM

GET THEM TO FEEL GOOD ABOUTUS, AND EVENTUALLY BUY US

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So, why are people buying us less/

not buying us?

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Housewives: Developed New Shopper Mentality

Affected by the economic downturn

Housewives, especially the Malays, were hit by theeconomy. Two of our respondents who were full-time

housewives even volunteered to work in order to sharehusbands financial burdens.

Housewives become more budget conscious

Product prices are escalating. As a result, housewives nowconsciously plan their purchases and tries their best to keepwithin their budget.

Selective of what goes into the trolley

Housewives have now learned to say no to kids impulsepurchases. Theyd rather allocate more budget for rice andgroceries things that offer her family value.

Reduced chocolate purchasesHousewives are no longer willing to spend so much on

chocolates as these are seen as unnecessary items.

New Shopper Mentality likely to stay

Even if the economy recovers in the near future,

housewives penny-watching mentality is likely to stay asthey are used to the budget-conscious way of shopping.

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Chinese Housewives: Increased health awareness

High sugar content is worrying

This applies to Chinese housewives/ mothers, butnot so much for Malay housewives who loves sweetfood. Chinese housewives/ mothers are educatedwith the various consequences of consuming toomuch sugar, therefore they are restricting their kidsfrom consuming too much sugar.

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Young Adults too, are increasingly health conscious

High sugar content a concern

Increasingly aware of the consequences of diabetes,

they are cutting down their sugar consumption (NielsenRetail Index shows Malaysians are drinking more Asian

Drinks and Fruit Beverages instead of Soft Drinks)

Resort to healthier treats

As young adults grow older, they opt for healthier treats

(Muesli bars, yoghurt drinks, low-fat ice-cream)

Chinese females believe chocolates are fattening

Those who are on diet believe they should restrict

themselves from eating chocolates.

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Good news is, although consumers are buying less

chocolates, they did not stop buying them.

They still buy and consume CDM because of the good

feeling it brings.

Product Truth:

CDM makes

you feel good

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Young adults

They are optimistic about their

future, and they believe when

there is a will, there is a way

(To insert picture)

Housewives

They are optimistic and they

believe they can weather the

recession as long as they

make minor changes to their

spending habits.

(To insert picture)

The truth about our consumers

Consumer

Truth:

Our right

consumers are

positive minded

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They see life as half glass full.

Young adults

(quotes from Xploring)

Housewives

(quotes from Xploring)

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Our role is to bring out the positivism in consumers

Product Truth:

CDM makesyou feel good

Consumer

Truth:Our right

consumers are

positive minded

BrandPromise:

CDM brings out

the positivism in

you

Life is already hectic enough. CDM offers our target audience a smile (bit of

happiness) every day. Makes every day lighter and brighter. At least for that

moment.

We need to capture this positive people with the promise of a smile (piece of

happiness) every day

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Our current consumers

They will buy more CDM

because of the positive feeling/

happiness it brings them/ their

family.

Our non-consumers

We invite them to share in the

feeling of some everyday

happiness, and they will

eventually resonate with CDM

and start buying us.

This will be the outcome of our communication