Cadbury PROJECT

Marketing

Cadbury

Cadbury Dairy Milk Chocolate

i

Executive Summary

The project which I choose is on Cadbury Company which made Confe

ctionery items and different types of chocolate products.The product which I
choose is Cadbury Dairy Milk Chocolate. Cadbury is a Multinational Company
and its business is worldwide.

This project covers the following topics:

The introduction and the history of the company, Strategic planning of this
company like Vision, mission statement and the customer driven marketing
strategies of that company like ( market segmentation, targeting and
positioning).

The project also covers the Four Ps of marketing (Product, Price, Place and
Promotional strategies).
It also covers about the Positioning strategy like how company sets its positive
position and in the minds of consumers. It also tells about logo, Slogans and
about the target market of this product.

Micro and Macro Environment of this company also discussed.

At the last my conclusion about the whole marketing process of that companys
product
I also give the reference of those websites which provides me relevant material.
And the recommendations about this project.

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Table of Contents
Chapter No Page No
Acknowledgement i
Executive Summary ii
O1 Chapter# 01 1.0
Introduction of Company Cadbury 1.1
Designing a Customer Driven Marketing Strategy 1.2
Capturing Value from Customers 1.3
02 CHAPTER # 02 2.0
Vision and Mission Statement of Cadburys 2.1
Designing the Business Portfolio of Cadbury 2.2
BCG _ Matrix 2.3
Customer Driven marketing Strategy of Cadbury Dairy milk 2.4
Behavioral Segmentation of Cadbury dairy Milk 2.5
Target market of Cadbury dairy milk 2.6
Marketing Mix Strategy of Cadbury Dairy Milk Chocolate 2.7
4 Ps of marketing 2.8
Positioning strategy of Cadbury dairy milk & logo 2.9 03 Chapter # 03 3.0
Level of Market Segmentation of Cadbury dairy milk 3.1
Market environment of Cadbury dairy milk 3.2
Macro Environment & conclusion 3.3
Recommendations and References 3.4

Chapter# 01
1

Introduction of Company Cadbury

Cadbury is a multinational company and the Cadbury dairy milk is a brand of

chocolate which is made by Cadbury. Cadbury made different types of chocolates
and other products which is sold in several countries around the world. It first
sold its products in United States in 1905.

History
Cadburys started as a one man business, opened in 1984 by a Quaker, John
Cadbury, which becomes nowadays Cadbury Limited, and now becomes the
worlds largest chocolate producers. In 1831 the business had changed into
grocery shop and John Cadbury became the manufacturer of the company.
Cadbury Dairy Milk is a worldwide brand of chocolate of United Kingdom Which
made its different types of products and promote in different countries like
Pakistan, India, Italy, Canada, France almost all countries.

Product Varieties
Cadbury made different types of chocolates and other products like:

Chocolates:
Cadbury dairy milk chocolate, Kit Kat, Five Star, clairs, Fruit & Nut, Cadbury
lite, Cadbury Crackle etc

Snacks;
Cadbury byes

Beverages:
Bourneville, Cadbury delight
Candy:
Cadbury hall
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Selection of product
From above of these products I select the Cadbury dairy Milk chocolate which is
the one of product of Cadbury. In 2003 Cadburys made Dairy milk into super
brand, bringing a number of different products under the name dairy milk
branding for example dairy milk with bubbles.

Production of Cadbury Dairy Milk chocolate

Many of the newer Dairy Milk Varieties are now manufactured in the Republic of
Ireland, France and Poland. Dairy milk Chocolate itself is also manufactured in
France and these products are sold in the U.K and from U.K to all other
countries.

Understand the Market place and Customer Needs

Cadbury dairy milk chocolate understands the new market which is targeted.
First it selects the targeted customers like Kids, Youths and then made products
according to their needs.
Cadbury Dairy Milk Chocolate made by company which offers to specific market,
specific customers and also to all type of customers.
Marketplace also selected by Cadbury Dairy Milk according to customer needs
and requirements.

Designing a Customer Driven Marketing Strategy

Cadbury Dairy Milk Chocolate Design such a strategy which is customer driven. I
mean it target those markets which is profitable for the company. It includes
production, product, selling and marketing concept.

Production concept;
Cadbury Dairy Milk Chocolate is a product which is favorable by customers and
affordable by customers and Cadbury also focused to improve the quality
according to customers needs and requirements. And also improve the
production and distribution like improve the transportation chain.

Product concept;
Consumers favor the Cadbury Dairy Milk Chocolate because it offers the quality,
distinctive features, Affordable price and Cadbury company devotes its full time
to satisfy the new consumers and retain the oldest consumers.

Selling concept;
Cadbury D.M.C has good promotional and selling concepts. It promotes through
electronic media and by advertisement channels.

Marketing concept;
Cadbury D.M.C achieved its organizational goals and objectives because they
know customers requirements like if they want to target school children it made
sashes and made small packing which Childs easily afford. And also targets the
specific market like niche markets.

Capturing Value from Customers

It means how company build strong relationships with customers and provides
his customers to better products as compare to price which he pays against the
product. Cadbury D.M.C provides all the above values and it also explains with
the help of the following points.

Future Sales;
Company also focuses to increase its future sales by different ways like Cadbury
dairy milk chocolate have more consumers and they also provide low price and
more valuable and highly affordable products.

Market share;
Market share means Cadbury dairy milk have high market share and it is
becoming higher because it gives more valuable products to consumers.

Market profit;
If Cadbury wants to earn more profit as compare to its competitors then it have to
maintain strong relationships with its competitors by giving less price, good
packing and also to make them loyal customers.

Customer Loyalty;
It means C.D.M have loyal customers because it provides superior customer value
as compare to its competitors means customers get more benefits as compare to
its cost. Especially we can say kids and youth are a loyal customers of Cadbury
dairy milk chocolate, because they feel they feel they get more benefits which
Cadburys competitors cannot provided.

CHAPTER # 02
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Vision and Mission Statement of Cadburys

First of all before discussing any topic we have to understand the vision and
mission statement of Cadburys which tells about the whole goals and objectives
of the company and it helps us to understand the whole .Topic easily and
effectively.

Vision Statement;
Cadburys set out a vision to achieve a Cadbury in every pocket dream by
increasing the penetration of chocolates.

Mission Statement;
We can easily understand the mission statement by following points like;
Cadburys mean quality
This is our promise
Our reputation is build upon quality
Our commitment to continuous improvement
It will ensure that our promise is delivered

Characteristic of this mission statement;

We can say that this mission statement is realistic because if we see the quality
and day to day improvements easily show that Cadburys have real mission
statement.

Setting companys Objectives and Goals

Cadbury successfully turned its mission statement into its overall objectives and
goals. Cadbury says Cadbury is the name of quality and the Cadbury dairy milk
chocolate and also different products is the biggest example of it.

And it says our commitment to continuous improvement and the demand and
customers satisfaction shows that its products successfully fulfill the needs wants
and demands by continuous improvement in the features of products.

In short we can say that company turned its mission statement into practical
form and set its overall objectives and goals as Cadbury do and now a day become
a market leader.

Designing the Business Portfolio of Cadbury

Now I discuss the business portfolio, analysis of business portfolio and also see
that the relevant market share of Cadbury dairy milk chocolate according to
growth share matrix.

I also discuss that Cadbury dairy milk chocolate is on growth stage or it is a cash
cow and if it is on question mark and if it is on dog stage then what is the strategy
of Cadbury applies to stable its market share.

Business Portfolio of Cadbury

Cadbury made different products and sell into different countries. It means the
collection of businesses and products that make up the company. Many of the
newer Dairy milk varieties manufactured in the Ireland, Poland, France, and
Cadbury dairy milk itself is also manufactured in France different types of
chocolates and candies that make up the company Cadbury.

Analysis of Portfolio
It means Cadbury analysis that which product is need to be more investment and
which need to less and which product should have to phase out from the market
due to less demand.

For example in 2003 Cadburys made dairy milk chocolate into super brand, and
introduce a lot of products under the dairy milk brand and wispa bars were
phased out from market and replaced by dairy milk with bubbles.

BCG _ Matrix

Star

?
Cash cow
Dog

Now I see that my product is on what stage mean Cadbury Dairy milk chocolate is
Star, Cash Cow,? Or Dog. And what is the position of market share of Cadbury
dairy milk chocolate.

Star;
It is high growth, high market share and high profit businesses and products.

Cash Cow;
It is low growth, high market share and more revenue generating products and it
has high profit as compare to star. It need less investment to hold their market
share because it has already well established SBUs. It produces and made
investment in other products because it is well stand itself and made other
products from their revenue.

?;
Question marks are low market share, low profit and high growth in markets and
they need heavy investment to hold their market share.
Dog;
Dogs are low growth, low market share, and low profit earning products or we
can say that it is those that almost phased out from market.

Cadbury Dairy Milk chocolate is on what stage?

Off course I can say that my product is a cash cow because it has low growth, high
market share, high revenue generating as compare to other products of Cadbury.

The revenue which generates from D.M.C is used to promote other products of
Cadbury like dairy milk with bubbles.

As of 2004, there are ten varieties of dairy milk produced in the U.K with the
revenue from dairy milk chocolate. Because it is already well established product
which needs less investment but more profit earning.

It can also understand from the following points.

Low growth because it is well established SBU
High market share
High profit
Responsible to make other products
Because it is more cash generating
It has more potential costumers than others

Customer Driven marketing Strategy of Cadbury Dairy milk

In customer Driven marketing strategy we discuss the Cadbury dairy milk market
segmentation, target marketing and market positioning strategies.

Market Segmentation;
It means divide the market into group of potential customers on the basis of
occupation as well as the age group of the in the market.

It means all marketing process depends on marketing segmentation and it is the

foundation of all the marketing processes.

Cadbury dairy milk also divides the market into different group of customers. We
can understand it by following discussion.
Identify Market Segment of Cadbury Dairy milk
Targeting a group of customers who share a similar set of needs and wants which
Segmenting the consumer markets. There are basically four types of
segmentation which I discuss the following.

Geographical Segmentation
Behavioral Segmentation

Geographical Segmentation;
It can be understand from the following points.

Age and life cycle;

Under this type of segmentation the buyers who mostly prefer the Cadbury dairy
milk comes under the age group of 4 to 50 years.

Gender;
For purchasing Cadbury dairy milk gender does not matter. Cadbury dairy milk
are for all type of persons whether male or female.

Income;
The price of Cadbury dairy milk is reasonable and affordable, so a person does
not need to much think before purchasing. They can easily buy it any time when
they want to buy. The income of a person does not play an important role in
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Generation;
Cadbury dairy milk will not be much affected by the generation differences. All
type of people like to purchase the Cadbury dairy milk when they want to buy it.

Behavioral Segmentation of Cadbury dairy Milk;

We can understand it by the following points
Decision roles;
The decision role is played by the children and youngsters. They play an
important role in taking the decision of when to buy the Cadbury dairy milk.

Occasion;
For purchasing the Cadbury dairy milk no specific occasion are required. People
can easily purchase it on regular bases also if they needed.
Benefits;
Cadbury dairy milk is easily available anywhere when we need it. The supply
chain of Cadbury dairy milk is very good also it a quality conscious. So there are
two main types of benefits given by Cadbury dairy milk are supply chain and
quality.

User status;
There are mainly the regular users found in the user status of Cadbury dairy milk.

User rate;
The user rate is heavy in the behavioral segmentation of Cadbury dairy milk.

Loyalty status;
There is mainly the absolute loyalty status.

Attitude;
There is an enthusiastic type of attitude of buyers.

Segmenting for Business Markets;

It can be easily understand from the following points.

Demographic
Operating variable
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Purchasing approaches
Situational factors
Personal characteristics

Models of sequential segmentations;

It can be easily defined and understand from the following points.

Stage of decisions
First time prospects
Sophisticates
Orientation
Price oriented

Target market of Cadbury dairy milk;

The main target of it mainly is children and youths that are in the segments of
occupation and in the age group.

Cadbury dairy milk commonly targets all types of customers whether they are
young and old, male or female.

And now the target markets which is selected and targeted by it is according to
age, gender, occupation and income of potential customers.

How can we choose the target markets from the different segments?
The answer is that a acronym DAMP is used to gauge the viability of target
markets.

Discemible; How a segment can be differentiated from other segments.

Accessible; How a segment can be accessed via marketing communications

produced by a firm.

Measurable; can a sufficient return on investment be attained from a segments

servicing.

Profitable; can a sufficient return on investment be attained from a segments

servicing.

Market positioning of Cadbury dairy milk;

Cadbury dairy milk made position of it product chocolate not only in the minds of
consumers but also in the market.

It means what is the view of consumers or concept about of your product like
trough adds childrens and youngsters view and action after seeing the add of
your product.
To make position in the minds of customers company used different promotional
techniques through
By giving add through any superstar
Electronic media
Press media
Sign boards
By giving discount
By giving funds to welfare organizations

Marketing Mix Strategy of Cadbury Dairy Milk Chocolate

It is also known as integrated marketing or 4Ps of marketing. We can understand
the marketing mix strategy of Cadbury dairy milk by discussing the following four
Ps of marketing.

Now I discuss the Product, Price, place and promotional strategy of Cadbury
dairy milk chocolate.

Product;
Cadbury dairy milk is made from real chocolate. Its ingredients include cocoa,
butter and there is a glass and half full cream dairy milk in every 200 grams in
every dairy milk chocolate. Cadbury buys 65 million liter of fresh milk each year
to make Cadbury dairy milk chocolate.
Strategy;
The strategy of Cadbury dairy milk is to continuous improvement in the quality
and features of product. It is the mission statement of Cadbury to make quality
chocolate which have competitive advantage from the competitors products and
it enhances the goodwill of the company.

Price;
It is an important element of the marketing mix. The price for a chocolate bar can
determine whether a consumer will buy it or not it can be determined easily and
sales volume tells about that price is reasonable or not.
If competitors charge the low price than the Cadbury chocolate, it is
automatically affect the companys profit.
Strategy;
Cadbury dairy milk applies the reasonable and affordable policy to charge the
price from its competitors. Because it is the vision of Cadbury that Cadbury is in
every pocket. It charges the fewer price from its competitors and provides better
quality also. We can say it is used penetration strategy because have low prices as
compare to its competitors and have long life cycle of the product. Cadbury wants
to survive in the market for long run.

Place;
Cadbury dairy milk is produced at the chocolate factory in Bourneville in
Birmingham. After the chocolate is produced and goes through the process of all
quality checks. It is transported to the staff rooms and then Cadbury sells it
product to shops.
Strategy;
The placement strategy of Cadbury dairy milk is to sell the chocolate at every
corner shop, super stores, bakers shop, petrol pumps and even medical stores
also included in it. It is the mission statement of Cadbury to provide chocolate to
all type and class of customers.

Promotion;
The purpose of promotion is to communicate directly with potential and actual
consumers. In order to encourage them to purchase dairy milk chocolate the
Cadbury used different promotional tactics.
Strategy;
Cadbury dairy milk is used press and electronic media to motivate the potential
and inspires the actual customers to purchase the product of Cadbury.
Promotion is an important element of marketing mix because if it is not well
planned then company is unable to increase it sales.
The company gives discounts on different occasions.
To inspire the Childs to purchase the Cadbury chocolate the company made such
type of ads. To encourage the youth class the company hires the superstars for
advertisement of the products which inspires the all type of consumers who want
to eat sweet.

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Positioning strategy of Cadbury dairy milk
Positioning is all about that what is the customer concept or image of your
product in the minds of the people who likely to purchase the product.
It also concerns about what is the position of your product in the market.

We can say every aged person wants to buy Cadbury dairy milk chocolate and
they also dont know why they are purchasing the Cadbury dairy milk even they
dont want to purchase.

Slogan of Cadbury dairy milk

Slogans also play an important role to position a positive concept in the minds of
customers like:

Cadbury dairy milk is a brand of chocolate bar made by the Cadbury plc unit of
.with slogans such as:
A glass and a half of full cream
Cadbury is the name of quality it is our promise

Logo of Cadbury

Brand name of product

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Chapter # 03

3
Level of Market Segmentation of Cadbury dairy milk
Now we have to see which type or level of market segmentation of Cadbury dairy
milk has. Of course mass marketing.
Mass marketing;
It means offer the same product to all customers by ignoring market segment
differences. Mass means huge group of buyers. It means there are a large number
of customers. It is also called macro marketing.
Cadbury offers one type of Cadbury dairy milk chocolate to all customers and no
difference of market segmentation. Product, price, place and promotional
strategies are also same.

Cadbury dairy milk has competitive advantage

The following are the points which give the competitive advantage over
competitors.

Important;
Cadbury dairy milk chocolate is according to customers needs wants and
requirements.

Distinctive;
Different features as compare to competitors products mean Cadbury have good
quality, more features like unique taste, design, logo and other attributes.

Superior;
Cadbury dairy milk is superior in quality, continuous improvements and have
different features.

Communicable;
Cadbury dairy milk is easy to understand about the quality and features.

Preamtive;
Its logo, quality, taste and other features are not copied by other companies.

Affordable;
Its price is reasonable and affordable by all customers.
Profitable;
It depends on the sales volume and low cost of the company products.
1

Market environment of Cadbury dairy milk

There are two types of market environment of Cadbury dairy milk.

Micro Environment
Macro Environment

Micro Environment;
It means the internal environment of the company and it is also called small
environmental forces which directly or indirectly affected the company.
It has some forces which are discussed below

Company;
Cadbury dairy milk is a company which manufactures the products like
chocolate. There are different departments in the company who collectively
responsible to make the products.

Suppliers;
Suppliers are those persons who provide the raw material to the company like
cocoa and other supporting raw material there are also external suppliers who
provide the finished goods to and create link between company and customers.

Intermediaries;
After making the finished products they create a link between company and
suppliers, they include wholesalers, retailers and middlemen.

Competitors;
Cadbury have many competitors who directly challenge their products and affect
their business.

Customers;
Are those people who buy the products of the company? Those people who
purchase the Cadbury dairy milk chocolate are the customers of the Cadbury.
Public;
It means government who directly affect the company business by giving
different facilities like rebates and funds because company get benefits from it.

Macro environment
It means the overall and general environment of the company. The forces outside
the company called macro environment.

Demographic Environment;
Divide the market on the basis of age, gender, locality, occupation and income.
Cadbury dairy milk targets all type of customers on the basis on these because
these are not the hurdles on the way of the company.

Economic Environment;
Cadbury dairy milk understands the economic situation of the country in which it
goes to start the business. I mean inflation rate also a matter.

Natural environment;
It also plays an important role in the success of organization. The availability of
natural resources also matters.

Technological environment;
Availability of new technology also plays an important role in the success of any
organization. It is the symbol of success that country has all new technology.

Political Environment;
Political scenario plays an important role in the success of any organization.
Because if new govt. change all the policies of previous govt. then company may
suffer heavy losses. Cadbury dairy milk understand and analyze the all the
conditions.

Cultural environment;
The culture plays an important role because if product is not according to specific
culture then company may suffer heavy loss.
Conclusion
I can say that Cadbury is a multinational company and its product Cadbury dairy
milk chocolate is a cash cow for the company. It is well established SBU. Cadbury
dairy milk is a market leader. More profitable as compare to other products of the
Cadbury.

Recommendations:

Launch the product into further countries

Price also need to become more affordable
Improve the quality of sashes
Global growth
Need to improve the marketing mix strategy
Market penetration process need to be effective
Super stars play a key role by advertisement
Promotional strategy need to be revised