CASE 2: DAIRYMILK

Introduction

The Cultural Context of Sweets in India

In India, sweets, or mithais, have always been an integral part of celebrations and festivals. From ladoos to barfis, each region boasts a variety of traditional sweets that are used to mark joyous occasions. However, chocolates, a concept that originated in the West, started gaining popularity in India much later.

The Introduction of Chocolates as a Western Concept

Chocolates were initially introduced in India as a western luxury, primarily enjoyed by the urban elite. The idea of indulging in chocolate was novel, and it was considered a treat reserved for special occasions due to its high cost and limited availability.

The Luxury Status of Chocolates in the 1940s

During the 1940s, chocolates were considered a luxury item in India. They were often bitter in taste and were not easily accessible to the common people. This created a market gap that Dairy Milk would later fill.

The Market Gap for Affordable, Sweet Chocolates

Recognizing the potential to cater to the middle class with a product that was both sweet and affordable, Dairy Milk entered the Indian market in 1948. This strategic move aimed to make chocolates a more inclusive treat that could be enjoyed by a broader demographic.

Historical Background

Pre-1948 Chocolate Market in India

Before Dairy Milk’s entry, the Indian chocolate market was sparse, with limited brands offering products that were mostly expensive and not particularly palatable to the Indian taste, which favored sweetness over bitterness.

Dairy Milk’s Entry into India in 1948

In 1948, Dairy Milk made its debut in India. The brand introduced a sweet, creamy chocolate that appealed to the Indian palate and was priced affordably, targeting the middle-class consumers who had previously been unable to indulge in chocolate regularly.

Initial Challenges Due to Foreign Policies

Despite the promising market potential, Dairy Milk faced significant challenges due to India’s restrictive foreign policies at the time. These policies made it difficult for foreign companies to operate efficiently and expand their reach.

Impact of Liberalization in the 1990s

The 1990s brought a wave of Liberalization, Privatization, and Globalization (LPG) in India, which drastically changed the business landscape. With the relaxation of foreign policies, Dairy Milk and other international brands found it easier to operate and expand in the Indian market. This period marked a significant turning point for Dairy Milk, allowing it to scale operations and deepen its market penetration.

Market Strategies

Capitalizing on the Cricket Craze

Understanding the cultural significance of cricket in India, Dairy Milk cleverly capitalized on the nation’s cricket craze. By associating the brand with the sport, they were able to connect with a wide audience, making chocolate consumption a part of cricket celebrations.

Shifting Target Audience from Children to Adults

Initially perceived as a brand for children, Dairy Milk strategically shifted its marketing to include adults. This expansion of the target audience helped increase their market base and positioned Dairy Milk as a versatile treat suitable for all ages.

The Blend of Quality, Affordability, and Marketing

The key to Dairy Milk’s success lay in its ability to offer high-quality chocolate at an affordable price, combined with effective marketing strategies that resonated with Indian consumers. This blend of quality, affordability, and strategic marketing allowed Dairy Milk to carve a niche for itself in the competitive Indian market.

Marketing Strategies

Dairy Milk’s campaigns focus on emotional and celebratory themes, which resonate deeply with Indian consumers. In contrast, Nestlé often emphasizes fun and playfulness, while Amul focuses on value for money and quality.

Dairy Milk’s Competitive Advantage

Brand Loyalty

Generations of Indian consumers have grown up with Dairy Milk, creating strong brand loyalty.

Innovative Marketing

Campaigns like “Kuch Meetha Ho Jaaye” have become iconic, embedding Dairy Milk in the cultural fabric of India.

Promotion

Emotional Appeal in Marketing: Dairy Milk’s promotional strategies blend emotional appeal with wide reach. They use traditional marketing, including newspapers and billboards, and have introduced various campaigns integrating themselves into Indian culture.

Traditional and Digital Marketing Strategies: In India, sweets are common after meals. Dairy Milk capitalized on this tradition through the “Kuch Meetha Ho Jaaye” campaign, which positioned the brand as the go-to sweet, especially after dinner or during celebrations.

Cultural Integration in Campaigns: It is also common practice in India to have something sweet before a good event, hoping that all goes well. This helped Dairy Milk become woven into the fabric of Indian culture.

Social Responsibility Initiatives: Understanding its social responsibility, Dairy Milk partnered with Pratham Education Foundation to provide free data to schools in rural India. This initiative not only garnered higher engagement from the audience but also allowed the brand to contribute towards a bigger cause.

Iconic Campaigns

“Kuch Meetha Ho Jaaye”

The “Kuch Meetha Ho Jaaye” campaign became an iconic part of Dairy Milk’s marketing strategy. It tapped into the Indian tradition of eating sweets during celebrations and positioned Dairy Milk as a go-to treat for special moments.

Conclusion

Dairy Milk’s success story in India underscores the power of strategic marketing, cultural understanding, and product innovation. From its humble beginnings to becoming a household name synonymous with joy, Dairy Milk continues to evolve and resonate with Indian consumers across demographics.