Cadbury follows small packs strategy

15 August 1999

Small has indeed proved to be beautiful for Cadbury. The company, after finding exceptional success in the launch of small packs of Perk chocolate, has now launched Picnic in small packs of 26 gms priced at Rs 10. The 43-gm packs are still available and are priced at Rs 15.

Cadbury has embarked on a strategy which involves increased consumption of its products through enhanced reach, affordability and visibility, which it feels can be attained by creating new markets, widening the depth of its distribution network and working towards a comprehensive portfolio with brands across all price segments.

On the distribution front, the company aims to increase the number of its distribution outlets from

the present 4 lakh to 5 lakh by the year 2000.

To attain the objectives of affordability, over the past two years Cadbury has been changing its product portfolio from pure chocolate items to confectionery which includes caramel, nuts, raisins and wafers. The aim is to bring down the price line and enter other markets than the purely urban ones.

In line with this, it launched Googly in early 1997, and followed it up with products like Mocka and English Toffee.