Comm Strat 2010

CDM
 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
 Discovery
Chocolate segment experienced the most drastic
decline in sales amongst 69 items sold in stores.
Top 10 categories: Bottom 10 categories:
1) Cooking mixes (24.4%) 1) Chocolate (-11.7%)
2) Asian drinks (16.9%) 2) Infant Cereals (-9.4%)
3) Mouthwash (16.2%) 3) Batteries (-7.9%)
4) Fruit beverages (14.0%) 4) Facial Tissues (-5.6%)
5) Hair conditioner (13.5%) 5) Shampoo (-5.6%)

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

Source: Nielsen Malaysia Retail Index

 Discovery
We see obvious decline in 40g (Small bar) and
175g (Big bar) CDM products

Sales of these products have clearly declined vs same month year ago
 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.
VALUE % SHARE VALUE % VOLUME % SHARE VOLUME %
MAT MAT YTD YTD MAT YTD MAT MAT YTD YTD MAT YTD
TY LY TY LY TY TY TY LY TY LY TY TY
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
65.2 62.2 65.7 62.7 5.8 4.1 63.9 61.3 64.0 61.6 -3.6 -5.9
Moulded
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
 Defining the CDM Brand Objectives to
generate growth
OUR CURRENT CONSUMERS OUR CURRENT NON-CONSUMERS

Current Buy less CDM due to their new Current Not buying CDM because they
behaviour shopper mentality/ health concern. behaviour don’t see its relevance to their
lives.

Behaviour Buy more CDM Behaviour Start buying CDM

Change change

GET THEM TO BUY US MORE GET THEM TO FEEL GOOD ABOUT

FREQUENTLY US, AND EVENTUALLY BUY US
So, why are people buying us less/
not buying us?
Housewives: Developed ‘New Shopper Mentality’
Affected by the economic downturn
Housewives, especially the Malays, were hit by the
economy. Two of our respondents who were full-time
housewives even volunteered to work in order to share
husbands’ financial burdens.

Housewives become more budget conscious

Product prices are escalating. As a result, housewives now
consciously plan their purchases and tries their best to keep
within their budget.

Selective of what goes into the trolley

Housewives have now learned to say ‘no’ to kids’ impulse
purchases. They’d rather allocate more budget for rice and
groceries – things that offer her family ‘value’.

Reduced chocolate purchases

Housewives 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 as
they are used to the budget-conscious way of shopping.
Chinese Housewives: Increased health awareness

High sugar content is worrying

This applies to Chinese housewives/ mothers, but
not so much for Malay housewives who loves sweet
food. Chinese housewives/ mothers are educated
with the various consequences of consuming too
much sugar, therefore they are restricting their kids
from consuming too much sugar.
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 (Nielsen
Retail 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.
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
 The truth about our consumers
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)

Consumer
Truth:
Our right
consumers are
positive minded
 They see life as half glass full.

Young adults Housewives

(quotes from Xploring) (quotes from Xploring)
 Our role is to bring out the positivism in consumers

Product Truth: Consumer

Truth:
CDM makes
you feel good Our right
consumers are
positive minded

Brand
Promise:
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
 This will be the outcome of our communication

Our current consumers Our non-consumers

They will buy more CDM
because of the positive feeling/
happiness it brings them/ their
family.
We invite them to share in the
feeling of some everyday
happiness, and they will
eventually resonate with CDM
and start buying us.