Changing cultural habits in India: Cadbury to raise India's role By Joe Leahy in Mumbai Cadbury is looking to build on its dominant position in India's chocolate market by making the country a regional centre for cocoa production. The United Kingdom based producer of brands such as Cadbury's Dairy Milk and Bournville said India was proving one of its most resilient markets, with profit continuing to grow at about 20 percent a year and sales at 30 percent. 'Cadbury should be in a position to sustain the growth we have had in the last three years', said Anand Kripalu, president, Asia and managing director of Cadbury India. The challenge for Cadbury, which has been in India for 60 years, has been to change cultural habits in a country that has traditionally not eaten chocolate. Cadbury has been forced to become more self-sufficient in cocoa beans in India than in other countries because of a 30 percent import duty on the commodity, mostly grown in Ghana. The company hopes to source all of its beans domestically by 2020, than from the traditional overseas markets, which are also less politically stable. Cocoa seedlings grow alongside coconut palms in southern India and, therefore, do not require fresh clearing of forests for plantation. Cadbury believes that, if it can persuade 20 percent of Indian coconut farmers to include cocoa trees in their plantations, it could increase national output of the beans from10,000 tonnes to 150,000 tonnes a year, or 3 percent of world production, by 2025. 'As a company, we believe we want to make cocoa less financial risky', said Mr. Kripalu. Cadbury control more than 70 percent of the chocolate market in India with a presence in 1.2 million stores while Nestle controls about 25 percent. Annual revenue is about US$400 million, small compared with the United Kingdom but growing rapidly. This growth has come partly through extensive advertising campaigns, including 'Celebrate with Cadbury Dairy Milk.' This was aimed at convincing Indians to eat chocolate alongside traditional sweets, known as mithai, made of milk, sugar and flavouring- eaten by Indians to celebrate or to mark an event. Cadbury's light-hearted ads in India show a middle-aged man who is celebrating after finally passing his final grade at school. 'Bringing a cultural context to chocolates by associating with traditional sweets and occasions' is how Cadbury describes the message of the ads. Source: Leahy, J. (2009). Cadbury to raise India's role. Financial Times. 1Question You a United Kingdom based international company Cadbury, but currently operating in India as Cadbury India Limited, 19 Bhulabhai Desai Road, Mumbai- 400026, India, and new in the business locally. You are struggling to attract customer base. You plan to build a dominant position in India's chocolate market in the future by making the country a regional centre for cocoa production. a persuasive letter to all your current and potential customers. You are promoting Cadbury's Dairy Milk and Bournville brands. You must inform customers why they should consider eating these brands regularly. You must mention the benefits by stressing central selling points. You must provide give-aways (freebies) to customers who are able to meet certain orders and give the action date to receive these brands. You must mention the price and offer a Post Scrip (PS) at the bottom of the letter. Use persuasive communication strategies such as attention grabbing, building interest, desire, and motivating action. In your cross-cultural communication persuasive letter, pay attention to ethics and avoid doublespeak such as distorting facts, manipulating the customers with an intent to deceive, or twisting of meaning. Aim for 1 page and use emotional appeal and colourful language. Provide empty white spaces in the letter, use different fonts, and consider bullet points for emphasis