Cadbury Marketing

1)Introduction

"Marketing is a significant dimension of any business in today's 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 Cadbury's marketing varies

according to countries,this essay will limit its examination to Cadbury India Ltd. and will

critically analyze CDM's 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,CDM's 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