Cadbury Marketing
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1)Introduction
“Marketing is a significant dimension of any business in todays highly competitive
environment and financial success is often dependent on marketing ability”(Kotler et
al,2009)
As in this contemporary world business is becoming more complex,awareness of changing
business trend and use of marketing concepts to tackle these changes are requisite skills for
next generation marketers.Many of the products failed because customers are not aware of
them,or they costs too much for their target consumers,or they are wrongly positioned in the
markets. Thus,it is required that companies should focus on marketing of their products and
utilize marketing concepts like market segmentation,target marketing,positioning and others
to understand customers demand and preferences,market segments,target markets,consumers
buying behaviors and their core competences to cope up with competitors in target markets.
Now in order to understand the practical importance of these marketing concepts in real
world scenario lets critically analyze the market situation and positioning of Cadbury Dairy
Milk(CDM) chocolate which is a product of Cadbury.As Cadburys marketing varies
according to countries,this essay will limit its examination to Cadbury India Ltd. and will
critically analyze CDMs market situation and positioning relative to its competitors in Indian
market.This essay begins with a brief introduction of CDM and then deals with its Market
Situation and Positioning analysis,and finally ends with a conclusion.In Market Situation
analysis,current market of CDM is analysed followed by its market segmentation and target
market analysis.In case of Positioning analysis,CDMs positioning relative to its competitors
is critically analysed using perceptual map and marketing mix.
2)Product Profile
CDM was first launched in 1905 in Britain and now it is sold in 33 countries with average
sales of more than 250 million bars per year(Cadbury,2011).In 1948,CDM first entered
Indian market and currently dominating the market not only because its the most delicious
and best tasting chocolate but also because of its affordable price and memorable
communication(Cadbury India,2011).
3)Market Situation Analysis
The chocolate market in India is estimated around INR 2,000 crore with a growth rate of 18-20 percent per annum(Business Standard,2011).Cadbury is the major player with market
share of around 70%, of which 30% is because of the success of its Dairy Milk product.CDM
is also considered as the flagship brand of Cadbury with average sales of around 1 million
bars per day(Cadbury India,2011).Cadbury is facing heavy competition from Nestle which
accounts 25% market share(Business Standard,2011),and low scale competition from Amul
and Lotte. Both Cadbury and Nestle have enjoyed the leading position in market for a long
UNIVERSITY OF GLASGOW
MARKETING Page 5
time, however, globalization have escalate the competition by bringing new players in this
field(Corporate Battles,2011).With the entrance of international firms like Mars and Hershey
severe challenges for CDM are introduced as now Mars Bars and Snickers are sharing the
shelves of stores with CDM and Nestle Kit Kat(Youth Ki Awaz,2010).The growth drivers of
chocolate industry in India are increasing income level, affordable price of chocolates, and
shift from traditional sweets to chocolates.CDM as being a market player sees lots of
opportunities and growth potential in this field,however it has threats of competition from
international firms.Further on large scale, chocolate market is facing many challenges like
increase in raw material prices,entry barriers because of duopolistic market and low scale
government assistance(Business Standard,2011).
3.1)Market Segmentation
According to McDonald et al(1998),Market Segmentation is defined as a process of
categorizing customers within a market into groups who share similar needs and wants.
Now lets analyze the market segmentation of CDM using four major segmentation variables
described by Kotler et al(2009):
Geographic:As CDM is focusing whole India(Cadbury India,2011),lets assume that on the
basis of density India can be divided into 3 sub segments – rural,urban and suburban.
Demographic:In terms of age group,CDM is focusing teenagers and adults(Cadbury
India,2011).In terms of family life cycle,it can be assumed that CDM may consider
young/single or married,matriculates and college goers,married with no children under
18,empty nest couples and married old couple/old single.Further,disposable income level can
be assumed as high/ medium/low,in addition to this,for social class it can be assumed that
CDM may target middle, upper,and lower uppers class.
Psychographic:In regard to