Consumer awareness of Cadbury chocolate is high, three months after the brand entered Israel. 63% of the public recognizes or has heard of Cadbury. Brand awareness is highest among women, youths, and people with above-average education and income, according to a CI marketing survey commissioned by “Globes”.
20% of the public has tried Cadbury chocolate since sales began in December 2002. 20% of the public reported that they had recently bought Cadbury chocolate in Israel. Sales were highest among people with above-average education and income.
A check of preferences showed similar rates for Elite and Cadbury chocolates: a third of those who tried Cadbury chocolate preferred it to Elite’s, while another third preferred Elite’s chocolate to Cadbury’s. The final third stated no preference for either brand.
Men over 50 and people with higher education preferred Cadbury chocolate to Elite’s. Respondents under 29, with high school educations and average incomes preferred Elite chocolate. Few respondents with low incomes had no opinion.
CI conducted the telephone survey on March 6-7 among 501over-18 Hebrew-speaking men and women respondents from a representative geographical distribution. The maximum sample error was 4.5%.
Cadbury has a foothold, despite obstacles
When Cadbury entered the Israeli market through Carmit, it announced its goal of winning 15% of Israel NIS 1 billion chocolate and snacks market. In effect, Cadbury aims at becoming the second-largest chocolate company in Israel, after Elite.
Cadbury actually began selling only in January 2003, midway through the chocolate season. Cadbury missed part of the season, which began in October with an aggressive marketing campaign by Elite.
Elite launched its Singles, a box containing a variety of small chocolate bars, in November, at $26-27 a box. Super-Sol now sells Singles for NIS 15. Cadbury has avoided sales promotions campaigns, so as not to damage its brand name, while giving priority to expanding product availability at sales points. In fact, only now is ClubMarket starting to sell Cadbury chocolates.
Cadbury had to make a special effort to differentiate its brand from other chocolates on the market. It not only had to offer a range of products, but also to get its products on supermarkets’ shelves, which takes several weeks. With access to 25% of the market during its launch in January and February, Cadbury achieved a 4% market share - a share that Nestle, an international chocolate maker of similar size to Cadbury, achieved only after ten years in Israel. Cadbury was also hampered by the severe recession and attempts, the scale of which is not yet clear, by its competitors to block it.
In conclusion, despite the economic climate, massive price-cutting and blocking efforts by its main competitor, Cadbury has succeeded is establishing itself in the Israeli market.
Published by Globes [online] - www.globes.co.il - on March 12, 2003