Marketing mix of Cadbury

Cadbury marketing mix

Products in the Marketing mix of Cadbury
Cadbury has a power house lineup of pro
ducts. In fact, several of our readers will be surprised when they read the diff
erent varieties and markets where Cadbury is present. A company might have 1 or
2 cash cows, but Cadbury has several with the lions share of the market. Some in
the chocolate business are Dairy milk, Bournville, Five star, Perk, Cadbury ecl
airs. In the biscuits segment is the premium Oreo. In beverages there is bournvi
ta which again is one of the leaders in milk addittives. Halls as a mouth freshe
ner as well as a remedy during cold is used across India. Thus, with such a stro
ng line of products, cadbury is bound to lead the chocolates industry. Due to it
s products, Cadbury is the leading name of chocolates across the world and has p
resence in all 7 continents. A list of cadbury products can be found here
http:/
/en.wikipedia.org/wiki/List_of_Cadbury_products
Price in the Marketing mix of Cadbury With quality comes price. As the quality o
f the products is high, and the beverages and Oreo requires constant marketing t
o be on top, the price of Cadbury products is also high in some cases, whereas i
n others it is very much reasonable. Products like perk, five star and eclairs g
ive the taste of Cadbury even at lower price. Dairy milk is considered to be a p
remium brand of chocolates due to this positioning, but because of lower priced
chocolates, it is also accepted across various target segments. Cadbury has many
varieties of products in the chocolate segment and the pricing of each chocolat
e is different based on the type of customer who is going to buy it. However, in
all these, the Dairy milk brand is the clear winner. Priced in high as well as
low variants, the cadbury dairy milk has a position of gifting and hence is sell
ing high volumes even at higher prices. The cadbury celebrations pack in fact, s
ells in millions on any festival or on celebrations.
Place or Distribution in the Marketing mix of Cadbury
The distribution of Cadbur
y is fantastic and widespread. It is present strongly in all urban areas as well
as A,B and C category towns. The rural marketing of Cadbury is known to be weak
but that is because demand there is also weak. Cadbury follows the same mantra
of FMCG marketing which is breaking the bulk. The cadbury chocolate is manufactu
red in Bournville, England. Recently there was an advertisement which promoted t
hat Cadbury buys only the best cocoa beans from Ghana for its chocolates. These
chocolates are then distributed across the world. Cadbury is present in 200 or m
ore countries. Once the chocolate reaches in bulk, it is broken down as follows.
Related Marketing Mix of Hewlett Packard - HP marketing mix
Company >> C&F agent >> Distributors >> Retailers >> Consumers
As you can see, due to the channel, the distribution costs of Cadbury are high.
But based on the demand in the market, the costs were going to be high anyways.
That is something which has to be taken into consideration during the distributi
on of products. In the end, Cadbury has a very srtong presence in the market, an
d you can be rest assured, that if you want to have a cadbury, it will be within
2 minutes reach from you in any of the local retail shops.
Promotions in the Marketing mix of Cadbury Indians love sweets. From Bengalis to
Punjabis to South Indians, each of us want sweets. Youngsters love sweet, and o
ld people want a nibble from time to time. Thus it is no surprise, that a smart
marketer like Cadbury has a tag line Kuch meetha ho jaye which means that lets hav
e something sweet. It is no surprise that people always have some cadbury s stocke
d at home. Or they gift a Cadbury dairy milk or celebrations to their loved ones
.
The promotions of Cadbury for each of its products is different. For Bournville,
Cadbury has kept the position that you dont buy a bournville, you earn it. So b
asically, it is not on the consumer to buy the bournville, Someone has to gift h
im the same. For Cadbury celebrations, the positioning is of gifting. Cadbury ce
lebrations has a major commercial customer base, where the chocolate is brought
in bulk and given to employees, clients or vendors. Eclairs has a low cost posit
ion, Bournvita has a strong health positioning, Perk has a youngster position, s
o on and so forth. Cadbury uses a combination of ATL as well as BTL marketing. T
he BTL marketing of Cadbury is very strong with its hoardings, and standies as w

ell as flex banners on shops, corners, hotels etc. Thus, due to these activities
, the brand recall is very high and people will always remember a Cadbury whenev
er they are buying a chocolate.
Overall, there are many many positives which make Cadbury the great company that
it is. We hope that Cadbury keeps manufacturing such great products. So what do
you say? Kuch meetha ho jaye :)
Also Read about Marketing Mix
http://www.marketing91.com/marketing-mix-of-cadbury/
Marketing Strategy of Cadbury
Cadbury India is a food product company dealing in Chocolate Confectionery, Beve
rages, Candy and Snacks. Cadbury is the market leader in Chocolate Industry with
a market share of 70%. Some of their favorite products are Cadbury Dairy Milk,
Perk, 5 Star, Celebrations, Eclairs, Gems and Temptations, Bournvita. John Cadbu
ry, the founder of the Cadbury business was born on 12th August 1801. Cadbury wa
s founded 200 years ago when John Cadbury has opened his shop in Birmingham sell
ing chocolate and cocoa with other glossary. Cadbury started its operation in In
dia in 1948 by importing chocolates and distributing in the Indian Market. This
project shows some research on current marketing strategy used by Cadbury in Ind
ian market. I have also try to find some of Strength, Weakness, Opportunity and
Threats of the Cadbury for Indian chocolate industry.
Table of Contents

1. About Cadbury

2. Cadbury in India

3. Aim & Objective of the Project

4. Comparative Analysis 7
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5. Marketing Mix of Cadbury

10
6. Current Marketing Strategies used by Cadbury and Market Segments 14
7. SWOT Analysis of Cadbury
8.Conclusion

16

17

9. Reference List

18

About Cadbury
Cadbury was founded 200 years ago. Cadbury is a food product company producing C
hocolate products. They are the market leader of this industry holding 70% of th
e total market share. Some of the well-known products of Cadbury are Dairy Milk,
Perk, 5 Star, Eclairs, Celebrations, Temptations, Bournvita and Gems.
John Cadbury, the founder of the Cadbury business was born on 12th August 1801.
In 1984, he opened his first grocery shop in Birmingham. He sold cocoa, chocolat

e products for drinking, which were prepared using pestle and mortar, as well as
other products. In 1831, John decided to start manufacturing on large scale. He
purchased a warehouse for it. Cadbury is one of the largest companies in the wo
rld. In 1840, they introduced chocolate for consumption with very decorative pac
kaging. The most widely known and top grossing product, Dairy Milk, was launched
in 1905 to compete with the leading brands of Swiss milk chocolates. By 1913, D
airy Milk had become the company's bestseller. After a few years it gained the r
ecognition as a leading chocolate product. (Cadbury, n.d.)
Cadbury in India
Cadbury India is a fully owned subsidiary of Kraft Foods Inc. In 1948 Cadbury st
arts its operations in India by importing chocolates, but today it owns five man
ufacturing companies and 4 sales offices. Its corporate office is in Mumbai.
The core purpose of Cadbury was to "make today delicious". In India, Cadbury ope
rates in four categories i.e. milk food drink, chocolate confectionery, candy an
d gum. Cadbury is the market leader in chocolate business. The pure taste of Dai
ry Milk describes the taste of chocolate for Indian consumers. Bournvita is the
leading product in milk food drinks and candy halls is the leading product of ca
ndies in the country.
Since 1965, Cadbury has also started the farming of cocoa in India. (Cadbury Ind
ia Ltd., n.d.)
Aim & Objective of the Project
Aim:
To examine the marketing strategies and SWOT analysis of Cadbury's Dairy Milk.
Objectives:
By conducting research to evaluate marketing strategies and to know the Strength
, Weakness, Opportunity and Threats of Cadbury by using proper theories.
Comparative Analysis
The Indian chocolate market is getting bigger and better. On one hand there are
imported varieties and on the other companies like Cadbury launch their own prod
ucts of international standards. In India in early 90's market share of Cadbury
was 80% but after the Nestle enters to Indian Chocolate industry the Cadbury's s
hare reduce to 70%, 15% share is hold by Nestle, 15% by Amul and other companies
. The higher competition is between Cadbury and Nestle as Nestle is trying to ha
ve tough fight with Cadbury. (Indian Mirror, 2011)
Nestle India Ltd:
Nestle was connected with India since 1912. They set up first manufacturing unit
in 1961 in India and then they open total 7 manufacturing units in India up to
2006. They were manufacturing Milk Products and Nutrition, Beverages, Cooking Ai
ds. They launched there Premium Milk Chocolate, Milky Bar, Crunch and Bar One in
India against the competition of Cadbury Dairy Milk and 5 Star. (Nestle India L
td., n.d.)
Kit Kat was Launch in India in 1995 and it becomes the world's most popular choc
olate within a short time of its launch and it was according to the target of th
e Nestle. Against the competition of Kit Kat Cadbury launch it's Perk, to safegu
ard its brand. Kit Kat and Perk was a new product segment in the form of wafer c
hocolates as anytime snacks.
Kit Kat sells was more than the Perk in the outlets where both were available. T
here was a neck to neck competition between both the products. It was also said
threat it was dangerous for the mother products of Cadbury Dairy Milk.
Amul:

Amul Milk Chocolate, Badam Bar, Crunch and Fruit N Nuts were launch by Gujarat C
ooperative Milk Marketing Federation (GCMMF) in 1974. But due to lack of its foc
us on international market and it was not able to raise its market shares. (Guja
rat Co-Operative Milk Marketing Federation, 2000-2001)
Marketing Mix of Cadbury
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After segmenting the market and positioning itself to outdo their competitors, i
t needs to come up with different strategies. The 4 P's used by Cadbury are:
Product: The Company should design and manufacture its products so as to improve
the customer experience.
Product Success
The meaning of Product is anything tangible or intangible that can be offered to
the customers for the proposed market segments either in the domestic or intern
ational market. It includes packaging, guarantee, quality etc.
Every company will compete for customers by satisfying their expectation constan
tly. But the best company will go beyond the expectations by delivering addition
al benefits, which they would have never imagined. Cadbury offers a wide variety
of products which include:
I. Chocolates: Fruit & Nut, Dairy Milk, Perk, 5 Star, Eclairs, Gems, Temptation,
Nutties, Milk Treat.
II. Beverages: Drinking Chocolate, Bournvita and Cocoa.
III. Snacks: Bytes
IV. Candy: Halls
V. Gums: Bubbaloo
Place: The place means to identify the physical distribution of the product where
the product should be available for the customer at the right place, time and q
uantity. It also consists of roles of channel for distribution.
For the success of any product in the Indian market, the product should be intro
duced to the retail shelves. Buyers play an important role for its success rathe
r than brand and market shares. With the increase in technology and competitive
pressure, it is difficult to retain a unique product for a long period. The bran
d that gets the greatest number of customers, sells the most products. Proper ch
annels of distribution also play an important role. If the product reaches the m
arket at the right time, only than will the consumer will have access to the pro
ducts. Increases in distribution and channel cost go together. Marketing cost of
Cadbury is 18% of its total cost which is higher as compared to Nestle and Parr
y.
Price: Pricing is the most important part of a marketing mix as it is the only a
rea by which revenue is generated for the company. Price includes the catalog pr
ices, discounts available and different options available for financing etc. Bef
ore deciding the price strategy the feasible reactions of the competitors are al

so have to be taken into consideration. The pricing of the product must consider
the appropriate demand-supply equation.
The strategy used by Cadbury for satisfying the value that all the customers buy
the product is using the expectation they have about how much the production is
worth to them.
Cadbury has introduced various products for different customer segments so that
every customer segment has different expectations of price from the product. The
refore maximizing the returns includes maintaining right price level for each se
gment and then increasing moving through them.
Promotion: Where and when can you get across your marketing message to your targ
et market?
Effective advertising attracts and generates supporting feelings for any busines
s. To reach out to the consumers, communication plays an important. For the mark
eting of any product, advertisement and promotions are the best means of communi
cation about the product to the end user. Cadbury does its promotions through Te
levisions, consumer contact activity, etc.
Some of the most famous marketing campaigns of Cadbury are:
"Khane Walon Ko Khane Ka Bahana Chahiye" for Cadbury Dairy Milk
"Thodi Si Pet Pooja - Kabhi Bhi Kahin Bhi" for Perk
Cadbury gives special promotional offers during festivals like Diwali, Holi, etc
. and special occasions like Valentines Day. It continuously introduces new prod
ucts to maintain its brand and to expand its market share.
Current Marketing Strategies used by Cadbury and Market Segments
Current Marketing Strategy used by Cadbury:
To encourage the consumers Cadbury uses many strategies. Some of them are as fol
lows:
On Every Hand Everywhere: The customers demand flawless services from the salesm
en and they have to deliver that to the customers. Cadbury is the market leader
in confectionery and chocolates. Their sales team plays an important role in the
success. They regularly conduct surveys of consumer's choice and requirements.
They deliver the products not only in the super markets but also in the small sh
ops, so that every segment of the customers can easily get their products. They
also provide selling techniques.
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Growing with Emerging Markets: Revenue of the company grows with the emerging ma
rkets. They continuously modify the products to fulfill the requirement of all s
egments of consumers. This strategy leads them to a growth of above 20% annually
for the past three years.
A strong foundation: Since 1948, Cadbury is serving their products in India and
they have created a very strong tradition and leadership position. They are the
number one chocolate brand with a share of about 70%. Today only one third of th

e population buys the chocolate so Cadbury is challenged to introduce the pleasu

re of Cadbury to many peoples.
Growing with the market: To attract the broader range of consumers is the main t
arget the Cadbury. They created a base range of their acceptable chocolate brand
s at more reasonable and affordable price. They also introduced the gift range p
roducts for the customers segments with high-income group.
Functional advantage: Cadbury Bournvita was launched in India in 1948 and it alw
ays required providing nutrition that helps in the development and growth. Today
the natural goodness of milk, chocolate and malt is prepared with vitamins A, B
1, B3, B6, B12 and C, plus protein, iron, calcium, manganese, zinc, and folic ac
id. It is also known as "a cup of confidence".
Affordable luxury: Cadbury has increased their presence in the candy in the form
of halls and Cadbury dairy milk Eclairs. Eclairs became more popular in the mar
kets with a hotter climate. The consumers find the delicious taste of chocolate
in the middle that easily melts in the mouth and not in the hot climate. It is a
lso an affordable chocolate for everyone. The new Eclairs Crunch is with more cr
ispy caramel shell for hot climatic conditions.
Market Segments
Market place includes different segments of customers having different needs and
wants. It can be classified as:
Geographic Segmentation: It is to divide the market on the basis of its location
, regions, towns, city or country.
Demographic Segmentation: It is most common basis of market segmentation. This f
actor is directly related to the demand of the product and it is easy to measure
. It can be classified as age group of consumers, gender, Life style, income of
family etc.
Psycho graphic Segmentation: it divides the consumer of the basis of social clas
s, lifestyle of consumers or personality. This helps the company to examine the
quality that how a person thinks, feels, and behaves.
Behavioral Segmentation: It divides consumer on the basis of their attitudes, kn
owledge, response or uses to a product.
Considering all the above factors, Cadbury has targeted different segments withi
n the market as:
Break segment - some products are consumed during short breaks with coffee and t
ea, for example snack range and Perk.
Desire segment - under this segment products are purchase on desire, for example
Cadbury's Dairy Milk, temptation etc.
Take home segment - this segment express the products that are purchased from su
permarkets and taken home for consumption, for example Bournvita.
SWOT Analysis of Cadbury
SWOT Analysis is the method to evaluate the Strength, Weakness, Opportunity and
Threats involved in an organization. It includes identifying the internal and ex
ternal factors that are favorable or unfavorable to achieve the objectives of th
e organization.
Strength:
1. Largest global confectionery supplier.

2. Market leaders in three sectors: Chocolates, Confectionery and food drinks

3. Cost of Production is low due to economic of scale which leads to higher prof
it and better market penetration.
4. High financial strength.
5. Strong brand name and leader in innovations.
Weakness:
1. Poor technology in India as compared to other nations
2. Limited key products as it is depended only on chocolates and beverage market
compared to other competitors.
Opportunities:
1. Growing middle class and growing urban population.
2. Increasing gifts cultures.
3. Substitute to "Mithais" with higher calories/cholesterol.
4. Increasing concept in departmental stores- desire @ at cash counters.
5. Opportunity increases with increase in market shares by acquisition.
6. Transfer production to low cost countries where labour cost and raw material
will be cheap.
7. Introduction of new products with low fats.
Threats:
1. Due to highest brand equity and low cost, it is successful in India.
2. Globalization will bring in better brands for upper end of the market.
3. High fats and calories in the products of Cadbury may reduce the demand of th
e consumers who are conscious of nutrition and healthier lifestyles.
4. Competitive pressure from other national and global suppliers.
Conclusion
Brand plays an important role for growth in today's competitive business environ
ment. It helps to maintain profitability in long run by differentiation in the p
roducts and loyalty of customer. Cadbury Dairy Milk brand has developed its Mega
brand Product range having its own identity, but now they all comes under the Da
iry Milk brand. This proposal is planned to maximize the strength of the Cadbury
Dairy Milk brand. The strategy involved a packaging and range refreshment strat
egy, which has resulted in a unified innovative Dairy Milk brand. Having exceede
d initial sales targets by a considerable margin, the strategy can be considered
a success! Branding is also one of the most important parts of any business whe
ther it is small or large, B2B or retail. An effective brand strategy results in
to the major periphery in increasingly competitive markets. The foundation of th
e brand is your logo, website, packaging and promotional materials all of which
should integrate your logo--communicate your brand.

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