Case Study: Gems Marketing in India

A brand under Cadbury, Gems is a colorful chocolate treat that has been delighting people for decades. Gems has carved out a special place in the candy market thanks to their fun, vibrant candy shells and creamy chocolate center.

Initially introduced in India, Gems quickly gained traction with unique ads. Though M&M and Gems offer similar chocolate-coated candies, their recipes and taste profiles differ, with M&Ms typically having a milkier chocolate base and a variety of flavor options. But Gems has also seen a decline. Let’s look at their full marketing strategy.

Market Entry into India

Gems were first introduced in the Indian market in 1968 and became an instant hit with their playful design and rich Cadbury chocolate. The initial positioning of the product was aimed at children, thanks to the bright colors and small, easy-to-carry packaging that made them a pocket-friendly snack.

By this time, Cadbury had made India a significant consumer of chocolate, and Gems capitalized on this, entering a rapidly growing market. The Indian market also has a huge demand for fun, snackable treats, making Gems perfectly positioned to cater to this trend. Over time, Cadbury Gems won over consumers with its quirky advertising campaigns and affordability.

STP Analysis

Segmentation

• Age:
  Primarily targets young children, but has also been targeting adults through specific campaigns.

• Income:
  Positioned as an affordable treat for middle-class and lower-income groups, Gems fits into the mass-market category, making it accessible to a wide audience.

• Geographic: The brand’s reach extends both to urban centers and rural areas.

• Psychographic:
  Gems is positioned as a fun, impulsive purchase, fitting into consumers’ desire for small indulgences.
  Its playful, colorful appeal caters to children who are drawn to its visual and textural experience.

Targeting

The primary target for Gems has traditionally been children, thanks to its bright, eye-catching colors and small, fun-sized packaging.

But do you remember this ad?

“Raho Umarless” (Stay Ageless) aims to engage a broader audience, including families and even older consumers, tying the product’s fun and nostalgic appeal to a larger demographic.

Positioning

Gems is positioned as a fun, playful, and vibrant product, revolving around being young. Its colorful appearance making it a eye-catching on the shelf. It positions itself as more visually exciting and accessible due to its affordable pricing and snackable portions​.

Marketing Mix

Product

When you think of gems, what do you think of? I bet some colorful ovals on a Cadbury-purple backdrop.

This can be both a boon and a curse for the brand –

It has an instant recall rate.

It’s not a flagship product because it’s kind of the only product. Gems hasn’t innovated much when it comes to flavors/variety.

The variety is mostly offered in packaging – it has different sizes with options for gifting as well. This contains a digital game inside to make it more appealing for purchase. Another packaging that is more targeted towards kids is that in the shape of a ball, which makes an object already familiar to them even more appealing by attractive packaging.

Price

One of the lowest being priced at Rs 10, Gems uses economy pricing, offering small, inexpensive packets for lower-income groups while also catering to premium segments with gift bundles. This flexibility helps the brand capture different market segments without compromising its core offering​.

The price-conscious approach has helped Gems maintain its dominance in India’s price-sensitive market, keeping it mass-market friendly.

Place

Gems is produced majorly in 3 plants – Thane, Induri, and Bangalore.

Distribution is a key strength for Cadbury Gems. Thanks to Cadbury’s extensive supply chain, Gems is available across various channels, from large retail supermarkets to small neighborhood kiosks, ensuring the brand reaches urban and rural markets alike. Gems’ availability on major e-commerce platforms like Amazon and Flipkart has strengthened its presence in the digital shopping space.

This ensures the product remains accessible to tech-savvy consumers who prefer shopping online, especially post-pandemic when e-commerce gained significant momentum​.

The partnerships with Q-commerce delivery services such as Swiggy Instamart have extended Gems’ reach, positioning it as a quick treat or impulse buy during online grocery or snack orders​.

Promotion

The brand has launched several memorable campaigns, each designed to engage children and young-at-heart adults.

They attempt to capture all ages alike with ads like above. Apart from that, they have also used other traditional advertising means like newspaper advertisements, which helps to get a large number of eyeballs.

Influencers have also played a key role in promoting Gems on digital platforms, where relatable personalities share fun moments involving the product, driving organic engagement.

Through ads, they creatively showed how it was impossible to control oneself when it comes to Gems. The focus on online engagement through social media, coupled with traditional advertising, has helped Cadbury Gems sustain and even grow its market share in India​.

In a Nutshell

Cadbury Gems has been an all-time favorite for many. While it has a strong brand recall, it can consider including variety to keep things fresh and exciting. It can also leverage the rising trend of User-Generated Content (UGC) to get more authentic reach,

Key Takeaways from Gems’ Marketing

Leverage nostalgia and playfulness to engage both younger and older audiences effectively.

Optimize pricing strategies to cater to diverse income groups while maintaining brand accessibility.

Expand product distribution by capitalizing on both offline and online channels, especially Q-commerce platforms.

Utilize influencer marketing and user-generated content to create organic engagement on digital platforms.

Introduce limited editions or variety packs to refresh the product offering and sustain customer interest.