Give an example of product positioning strategy?
Over 500 million rupees Cadbury India company has launched a premium range of chocolates, Temptations, in Roast Almond Coffee, Old Jamaica, Honey Apricot, Mint Crunch and Black Forest flavors, in the Indian market. As a part of the product strategy of the company to launch one major brand every year, the new product range aims to offer the consumer an exotic and international chocolate experience. Temptations is being retailed through Cadbury’s existing distribution network, reaching out to 250,000 retailers, with the emphasis on larger retail stores.
Cadbury’s already claims a 70% share in value terms of the Indian chocolates market, pegged at around Rs 50 million (22,000 tonnes per annum in volume terms), of which 5% is the premium segment. Why launch in the midst of an FMCG slowdown? The management of the company feels that one way to beat the slowdown is to keep track of evolving consumer needs and bring out a product to meet those needs.
What market research showed was a definite need for a premium chocolate. The taste profile needed was adult and it needed to be an indulgence product. The research apparently also revealed that the consumer seeks variety from indulgence products and has been buying imported chocolates (such as Ferrero Rocher, Lindt et al).
In the larger metro markets in India, it has been noticed that while our current premium range (Fruit & Nut and Roast Almond) was doing well, our presence in this top-end segment had reduced in favor of imported chocolates, which offered greater variety to the consumer.
Research further revealed two sets of chocolate consumers in India: those who are exposed to international chocolates and are active consumers of the same, and those who would love to have the ‘Differentiated Chocolate Taste’ but find international chocolate prices prohibitive.
Temptations of taste hope to woo this latter target group of consumers. “Demographically speaking, we are targeting the 25-40 year-old, SEC A male and female in the top 10 cities of India,” says the company management. Also, where foreign chocolates tend to melt at 18°C, Temptations claims to have been specially formulated to stay solid in tropical temperatures up to 26°C.
The advertising, handled by contract, revolves around the brand proposition, ‘Too Good to Share’. The TVC shows a mischievous 30-something modern, urban couple playing pranks on each other to avoid sharing their Temptations, which is a shift from the usual ‘chocolate is for sharing’ proposition. Cadbury is also working with ATM kiosk doors, Crosswords bookstores, sampling at premium restaurants in metros, playing advertisements during movies, all aimed at targeting the consumer in privacy.
