Mondelez International’s Marketing Strategies: Leveraging IPR to Dominate the Valentine’s Day Chocolate Market with Cadbury Dairy Milk and 5 Star

Mondelez International’s Marketing Strategies: Leveraging IPR to Dominate the Valentine’s Day Chocolate Market with Cadbury Dairy Milk and 5 Star

Abstract

In the dynamic world of confectionery marketing, Mondelez International has strategically positioned Cadbury Dairy Milk Silk and Cadbury 5 Star to capture contrasting consumer segments during Valentine’s Day. While Dairy Milk Silk appeals to romantics who celebrate love, 5 Star caters to those indifferent or opposed to the day’s hype. Mondelez employs intellectual property rights (IPR), including trademarks, copyrights, and exclusive branding strategies, to sustain its market dominance. This article explores the legal framework governing these strategies, evaluates their market impact, and discusses their practical implications using real-life examples.

Introduction

Historically, chocolates were marketed as a universal symbol of love and appreciation, targeting all demographics. The 1990s and early 2000s saw a generic approach where chocolates were promoted as an ideal gift for Valentine’s Day without much segmentation.

However, modern marketing is hyper-focused on consumer psychology. Today, brands tailor messages to specific audience segments:

Cadbury Dairy Milk Silk: Targets romantic couples, portraying chocolates as an intimate way to express love.

Cadbury 5 Star: Appeals to single individuals or those who dislike Valentine’s Day, offering a humorous, anti-romance alternative.


This shift in strategy aligns with changing consumer behaviors—some people celebrate love with gifts, while others view the day as over-commercialized and prefer sarcasm over sentimentality.

Example

Imagine two college students, Rahul and Priya. Rahul buys Cadbury Dairy Milk Silk with a heart-shaped pop-out pack for Priya as a Valentine’s Day surprise, symbolizing love. Meanwhile, their classmate Amit, who dislikes the hype, chooses a Cadbury 5 Star with an "Anti-Valentine’s" wrapper to mock the occasion. This scenario demonstrates how Mondelez successfully captures two opposing market segments using clever branding.

Future Prospects

With digital and AI-driven marketing, Mondelez can further customize Valentine’s promotions. Potential future trends include:

AI-Personalized Gifting Suggestions: Platforms like Amazon and Swiggy Instamart may use AI to recommend customized Cadbury products based on consumer preferences.

Limited-Edition Chocolates: Special “breakable heart” chocolates could be introduced—one for couples and another with a humorous spin for singles.

Expanding Beyond Chocolates: Cadbury could collaborate with cafés, florists, and e-commerce platforms to create exclusive Valentine's hampers.


Legal Framework

Mondelez International protects its marketing strategies using intellectual property rights (IPR), ensuring competitors cannot replicate their branding, packaging, or advertising ideas.

1. Trademark Protection (The Trade Marks Act, 1999 – India & TRIPS Agreement, 1994)

Cadbury holds exclusive trademarks for product names like “Dairy Milk Silk” and “5 Star”.

Mondelez trademarked the purple color associated with Dairy Milk, preventing competitors from using a similar shade.

Example

You walk into a supermarket, and all purple-packaged chocolates remind you of Cadbury Dairy Milk. This brand recall is a result of strong trademark protection, ensuring no other company can mimic the distinctive purple identity.

2. Copyright Protection (The Copyright Act, 1957 – India & Berne Convention, 1886)

Advertising slogans such as "How Far Will You Go for Love?" (Dairy Milk Silk) and "Do Nothing" (5 Star) are copyrighted.

Marketing campaigns and video advertisements also fall under copyright protection.

Example

If a small chocolate brand copied Cadbury Silk’s romantic ads, Mondelez could legally challenge them for copyright infringement, protecting its brand identity.

3. Patent Protection (The Patents Act, 1970 – India & Paris Convention, 1883)

While chocolate recipes are usually trade secrets, Mondelez patents innovative packaging and production methods.

Example: The unique heart-shaped pop-out feature in Dairy Milk Silk packaging could be patented.

Practical Example

If another chocolate brand introduced an identical heart-pop packaging, Cadbury could sue for patent infringement, preventing competitors from replicating their innovation.

Case Laws

1. Cadbury UK Ltd v. The Comptroller General of Patents (2013, UK Supreme Court)

Facts:
Cadbury attempted to trademark the color purple (Pantone 2685C) used in its Dairy Milk packaging.

The UK Intellectual Property Office rejected the application, stating that colors must be clearly defined and not open to interpretation.

Judgment:

The UK Supreme Court ruled against Cadbury, holding that a color cannot be trademarked unless it has acquired a distinct secondary meaning.

This set a precedent that color-based trademarks must be uniquely identifiable and not overly broad.

Impact on Mondelez:

Mondelez cannot rely solely on color for brand recognition and must incorporate other distinctive branding elements, such as logos, taglines, and product shapes.


2. Nestlé v. Cadbury (2017, Delhi High Court, India)

Facts:

Nestlé challenged Cadbury’s exclusive claim over the term “Dairy Milk,” arguing that it was a generic phrase used to describe milk-based chocolates.

Judgment:

The Delhi High Court ruled that while “Dairy Milk” as a term is descriptive, Cadbury’s consistent branding and consumer association with the phrase gave it a distinct identity.

Impact on Mondelez:

Mondelez benefits from strong brand recognition, but it cannot claim ownership over generic terms like "milk" or "chocolate."



3. Cadbury India Limited v. Neeraj Food Products (2007, Delhi High Court)

Facts:

Cadbury filed a lawsuit against Neeraj Food Products for using a similar purple and gold color scheme for its chocolates, claiming trademark infringement.

Judgment:

The court ruled in favor of Cadbury, recognizing that the use of similar colors could confuse consumers and dilute Cadbury’s brand identity.

Impact on Mondelez:

Strengthened its trademark protection in India, ensuring competitors cannot use similar packaging to mislead consumers.


4. Cadbury Schweppes Pty Ltd v. Darrell Lea Chocolate Shops (2007, Australia)

Facts:

Cadbury sued Darrell Lea Chocolate for using a purple shade in its branding, arguing that consumers might associate it with Cadbury chocolates.

Judgment:

The court ruled that Cadbury had no exclusive rights over the color purple in general but acknowledged that colors could be protected if they had strong brand association.

Impact on Mondelez:

Highlights the challenge of claiming trademark rights over colors, reinforcing the need for distinctive branding beyond packaging color.


Author’s Perspective

Mondelez International’s dual marketing strategy—positioning Cadbury Dairy Milk Silk for romantics and Cadbury 5 Star for anti-Valentine’s consumers—is a prime example of market segmentation through IPR-driven branding.

1. Effectiveness of IPR in Marketing

Mondelez’s trademark protection over brand names and colors creates strong consumer recall.

Copyright protection for advertising slogans ensures competitors cannot mimic its campaigns.

Patent protection on packaging innovations adds a unique selling point (USP).

2. Challenges of an IPR-Dependent Strategy

Legal disputes over color trademarks, as seen in the Cadbury UK Ltd v. The Comptroller General of Patents case.

Growing health-conscious consumers may reduce the effectiveness of this marketing approach.

3. The Role of Consumer Psychology

The ability to target both romantics and non-romantics expands Mondelez’s reach, making the brand relevant to contrasting audiences.

However, neutral consumers (those who neither celebrate nor reject Valentine's Day) remain an untapped segment.


Positives

1. Market Leadership Through IPR Protection

By securing trademarks, copyrights, and patents, Mondelez ensures competitors cannot copy its branding strategies.

2. Emotional Brand Connection

The tailored marketing campaigns help Cadbury deepen its bond with customers, fostering brand loyalty.

3. High Seasonal Revenue During Valentine’s Day

Limited-edition packaging and special promotions significantly boost sales.

4. Diversified Target Audience
The dual marketing approach captures both couples and singles, maximizing market penetration.

Negatives

1. Legal Risks and Trademark Disputes

Mondelez frequently faces legal battles over trademarked elements, as seen in Cadbury UK Ltd v. The Comptroller General of Patents (2013).

2. Shifting Consumer Preferences

With increasing health consciousness, demand for sugar-heavy chocolates may decline.

3. Over-Reliance on Seasonal Marketing

While Valentine’s Day campaigns drive sales, dependence on a single season for revenue growth is risky.

4. Exclusion of Neutral Consumers

Mondelez currently does not offer a neutral branding alternative for consumers who prefer chocolates without romantic or anti-romantic themes.


Recommendations

1. Expand Health-Conscious Product Line

Introduce sugar-free, dark chocolate, or vegan options to cater to health-conscious consumers.

2. Broaden IPR Protection

Mondelez should explore non-traditional trademarks, such as protecting the unique chocolate shape or AI-based personalization for branding.

3. Introduce a “Friendship Edition” for Neutral Consumers

A Cadbury Dairy Milk Friendship Edition could attract buyers who want to gift chocolates without romantic connotations.


4. Increase AI-Driven Marketing

AI-powered personalized gifting recommendations could enhance the consumer experience.

5. Expand Collaborations Beyond Confectionery

Partnerships with cafés, florists, and e-commerce platforms could boost brand presence beyond chocolates.

Conclusion

Mondelez International’s strategic use of IPR in branding, marketing, and packaging innovations has cemented its dominance in the Valentine’s Day chocolate market. Through trademarks, copyrights, and patents, Mondelez effectively prevents imitation while reinforcing its emotional connection with consumers.

However, market trends are evolving. By adapting to health-conscious preferences, expanding IPR protection, and catering to neutral audiences, Mondelez can maintain its industry leadership. With AI-driven marketing, innovative collaborations, and product diversification, Cadbury can continue to be the preferred chocolate brand for all consumers—romantic, anti-romantic, or neutral—during every season.

Reference

1.Li, P., Mellor, S., Griffin, J., Waelde, C., Hao, L., & Everson, R. (2014). Intellectual Property and 3D Printing: A Case Study on 3D Chocolate Printing. Journal of Intellectual Property Law & Practice, 9(12), 976–989. https://academic.oup.com/jiplp/article/9/12/976/2197682


2. Goh, B. (2020). German Federal Court of Justice Rejects Cancellation of Ritter Sport’s Square Shape Mark for Chocolate Bars. Journal of Intellectual Property Law & Practice, 15(12), 944–946. https://academic.oup.com/jiplp/article/15/12/944/5917159

3.Vishwanathan, A. (2022). Valentine's Day Has Become a 'Meetha' Success for Us: Anil Vishwanathan, Mondelez India. Exchange4Media. https://www.exchange4media.com/marketing-news/valentines-day-has-become-a-meetha-success-for-us-anil-vishwanathan-mondelez-india-118809.html