SEGMENTATION, TARGETING, POSITIONING IN

THE MARKETING STRATEGY OF CADBURY

The segmentation of Cadbury products is based on mix of demographics, behavioural &
psychographic factors like income and occasions. People of all age groups and demography enjoy
Cadbury products. Cadbury’s product offerings are mostly based on the production capacity, pricing
of the various packs, packaging designs, and storage facilities at the outlets, occasional and
situational demands, celebrity endorsements and many other factors. Although Cadbury has
targeted people from all age groups but it has distinguished its product offerings to specific class of
consumer groups. For example, Cadbury Temptations and Bourneville are meant for higher end
consumer groups who are willing to pay more & Cadbury SILK is targeted to the people who can’t
resist chocolates. It has positioned itself as a symbol of good times & a spontaneous brand that is
carefree and meant for special as well as real moments in life.

Mission: “Cadbury means quality; this is our promise. Our reputation is built upon quality; our
commitment to continuous improvement will ensure that our promise is delivered”.

Vision: “Working together to create brands people love”

Marketing mix of Cadbury

Products: Cadbury has a power house line up of products. In fact, several of our readers will be
surprised when they read the different 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 eclairs. In the biscuits segment
is the premium Oreo. With quality comes price.

Pricing: Cadbury has many varieties of products in the chocolate segment and the pricing of each
chocolate is different based on the type of customer who is going to buy it. As the quality of the
products is high, and the beverages and Oreo require constant marketing to be on top, the price of
Cadbury products is also high in some cases, whereas in others it is very much reasonable. Products
like perk, five star and eclairs give the taste of Cadbury even at lower price. Dairy milk is considered
to be a premium brand of chocolates due to this positioning, but because of lower priced chocolates,
it is also accepted across various target segments.

Promotion: A smart marketer like Cadbury has a tag line “Kuch meetha ho jaye” which means
that lets have something sweet. It is no surprise that people always have some Cadbury’s stocked at
home. Or they gift a Cadbury dairy milk or celebrations to their loved ones. The promotion of
Cadbury for each of its products is different. For Bournville, Cadbury has kept the position that you
don’t buy a Bournville, you earn it. So basically, it is not on the consumer to buy the Bournville,
someone has to gift him the same. For Cadbury celebrations, the positioning is of gifting. Cadbury
celebrations 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 position, Bournvita has a strong health
positioning, Perk has a youngster position, so on and so forth. Cadbury uses a combination of ATL as
well as BTL marketing. The BTL marketing of Cadbury is very strong with its hoardings, and standees
as well 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 whenever they are buying a chocolate.
SWOT ANALYSIS
Strengths: Cadbury is the world’s leader in chocolates. Known to have the best manufacturing
and a wide distribution channel, Cadbury has a presence in 160 or more countries. Cadbury has
many strong brands in its product portfolio such as dairy milk, Bournvita, oreo, five star and others.
The product are high quality products and some of them are cash cows for Cadbury. Cadbury
products are blessed with a fantastic brand loyalty. Due to its marketing and strong branding over
the years, the brand equity of Cadbury is also high and hence Cadbury is comfortable charging a
premium for its product because of the high brand equity.

Weaknesses: A brand like Cadbury is expected to have many strengths and few weaknesses, and
the same is the case. Cadbury’s weakness is its rural distribution considering India has such a wide
rural diaspora which can be covered. At the same time, A few cases just like above have happened
based on the quality of the product where cockroaches or other rodents were found in the chocolate.
It is inexcusable for a brand like Cadbury to show such ignorance because such infected chocolates
should not leave quality control at all. Thus, quality control needs to be strengthened.

Opportunities: Penetrating rural markets and distribution in rural markets can be a large
opportunity for Cadbury. It is present in foreign countries and a rural presence is much needed for
Cadbury which will boost the brands presence and turnover. Indian consumers have a sweet tooth
and they frequently like to eat small chocolates as well as chocolate bars. On top of it, there are various
flavours which consumers like. Thus, new tastes and new flavours are an opportunity which Cadbury
can generate regularly.

Threats: With an increase in fuel cost as well as cost of transportation, distribution cost has gone
up. At the same time, the cost of procurement and manufacturing is high as well. Thus, over the years,
the constant increase in costing and thereby pricing of the product is a threat to Cadbury as it creates
a gap for other companies to enter. Health consciousness is on the rise amongst the Indian population.
Many people prefer drinking health juices as well as fruits rather than having chocolates. Many
parents have stopped giving chocolates to their kids looking at the adverse effects.