Marketing Mix (4 ps) of Cadbury Diary Milk

Course Name:

Marketing Fundamentals and practices

Submitted By:

Malik Abdul salam

Submitted To:

Dr. Muhammad Ibrahim Abdullah

Registration No:

FA22-RBA-002

Department of Management Science

Comsats University Islamabad Lahore Campus

Introduction:

Cadbury is a British multinational confectionary which is completely owned by the American

company Mondelez International. Cadbury brand is considered as the second largest brand after
Wrigley. The company is famous for its Dairy milk chocolates which is renowned all over the
world. In 1824 John Cadbury opened a grocers shop in Birmingham and he started selling cocoa
and chocolate for drinking. This is how the Cadbury company started. By 1831 he decided to
take this company forward and start making things for commercial purpose. He bought a factory
and started his venture for the commercial success. Cadbury has never looked backed since then.
In the year 1926, Fruit & Nut was launched as part of its line and later in the year 1933, it was
followed by Whole Nut.

Cadbury produces a variety of chocolates and other goods that are offered in a number of
nations across the world. Dairy Milk In the year 2014 was ranked as the best chocolate bar in the
United Kingdom. It caters to every age and class of people. It has positioned itself as something
sweet that is necessary for everyone because of its exquisite taste. Dairy Milk Product line
started its first bar with the higher consistency of milk chocolate.

Cadbury Vision Statement:

Cadbury’s vision statement is “Working together to create brands people love”. The company’s
vision outlines that they value everyone they are associated with, from stakeholders to
consumers. They are passionate about winning the hearts of the people by continuously
improving.

Cadbury Mission Statement:

Cadbury’s mission statement is, “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.”

Marketing Mix (4Ps):

The four Ps are the key considerations that must be thoughtfully reviewed and wisely
implemented in order to successfully market a product or service. They are product, price, place,
and promotion. The four Ps are often referred to as the marketing mix. They encompass a range of
factors that are considered when marketing a product, including what consumers want, how the
product or service meets or fails to meet those wants, how the product or service is perceived in
the world, how it stands out from the competition, and how the company that produces it interacts
with its customers. Since the four Ps were introduced in the 1950s, more Ps have been identified,
including people, process, and physical evidence.

 The four Ps are the four essential factors involved in marketing a product or service to the
public.

 The four Ps are product, price, place, and promotion.

 The concept of the four Ps has been around since the 1950s. As the marketing industry has
evolved, other Ps have been identified: people, process, and physical evidence

Marketing Mix (4Ps) of Cadbury:

Marketing Strategy of Cadbury analyses the brand with the marketing mix framework which
covers the 4Ps (Product, Price, Place and Promotion). There are several marketing strategies like
product innovation, pricing approach, promotion planning etc. These business strategies, based
on Cadbury marketing mix, help thebrand succeed in the market. Cadbury marketing strategy
helps the brand/companyto position itself competitively in the market and achieve its business
goals & objectives.
Cadbury Product Strategy:

The product strategy and mix in Cadbury marketing strategy can be explained as follows. The
product range of Cadbury is pretty large and they make it count. The products in the marketing
mix of Cadbury are classified according to the seasons and they are also varied according to
the sales in each country. There are a lot of standard products which are there. The other
Cadbury products are based on festive occasions like Halloween and Christmas. The products
are not only related to the chocolates but there are other products like beverages and desserts,
which are also in their product line. We find that Cadbury also prefers to segregate the
products according to the demographic areas. The Cadbury Company has ventured into the
ice-cream segment and biscuits. With such a huge product line up we can gauge the targeted
customer base and they carter to a lot of people and their needs. There are a lot of Cadbury
products namely

 Cadbury Dairy Milk

 Dairy Milk Fruit & Nut

 Caramel

 Cadbury Five Star

 Perk,

 Bourn Vita

 Crème Egg

 Oreo

 Blackcurrant Mini Rolls

 Caramel Cake Bars

  Fruit Sundae

 Brunch Hazelnut

Among the huge product list. Cadbury has made a huge impact in this industry and is
continuing to grow at a rapid rate.

Price Mix of Cadbury:

His monetary value in exchange for a product is referred to as the price. Cadbury items are
priced in accordance with their quality. The pricing mix of Cadbury is determined by
demand, competition, package size, and target demographic. The cost of the items varies as
per their size. Cadbury has a well-thought-out strategy for reaching out to all of its target
demographics. The Dairy milk variety on the other hand, is the obvious winner among their
varieties. It is accessible in both high and low price ranges, catering to all demographics.

They follow the below three distinct pricing strategies:

Skimming Pricing: These prices are set high to benefit out of consumer’s demand for a new
product or design at any cost. Oreo cookies, Cadbury Silk, and Cadbury Bourneville are some
examples of products that are kept at a somewhat higher levelthan the competition.
Economy Pricing: Cadbury produces variations of its major goods in order to appeal to a
broad audience. Under this segment, we find products such as Dairy Milk, Perk, Five Star, and
Eclairs, that are reasonably priced.

Bundle Pricing: This approach is used to sell a bundle of items at a presumably lesser cost
than if the customers bought the items separately. Such a bundle of several products are
prominent during holiday and festival seasons.

Cadbury Place & Distribution Strategy:

Cadbury products are available all over the world. The main way Cadbury has made a huge
impact in the global market is just because of the distribution channel it has. The company has
made sure that their products are available all over the world and the cater to a huge customer
base. The products are available both in the urban and rural areas. We find that this has helped
in a way for the company. The place of distribution has made the products available to a lot of
customers and the in turn has generated a profit for the company both in terms of customer base
and the revenue. Primarily, the food & beverages are available at stores, groceries, retail outlets
etc. With the growth of ecommerce channels, the brand has increased its business via online
sales as well. Innovative ideas like home deliveries & gifting have also enabled the brand to
grow. Cadbury is a worldwide name and has made its name in almost more than 200 countries.
This shows the distribution channel and the places where it has made its product reach. Both
urban and rural regions have access to the items. We’ve seen that this has aided the company’s
growth. The distribution points have made the items available to a large number of consumers,
resulting in a profit for the firm in terms of both customer base and revenue.

Promotion Mix of Cadbury:

Promotion refers to activities undertaken by the organization to inform the market about their
products and services. It is the most important factor as it is a direct relation to sales. The
company has a keen eye for detail and relies heavily on emotional advertising campaigns to
connect with its target audience, which has been the key to its success. Campaigns include
“Kuch Mettha Ho Jaye,” a slogan that appears on their celebrations-themed chocolates. The
tagline for Bourneville

Chocolates are “You Earn It”. The company also relies on BTL marketing and employs
Vernacular communication to promote itself in many states and areas. The goal of using
vernacular language and regional dialects is to outperform smaller regional competitors
while also connecting and engaging with the audience. Additionally they don’t fail on
collaborating with celebrities occasionally. Cadbury’s promotional methods are one-of-a-
kind, since it is unlike any other chocolate brand all of these factors contribute to the
promotional influence on product sales. Advertising in the case of Cadbury advertising is
used to build a long term image of the product. Cadbury used media posture be the market
champion and carry the brand message. Television is the advised primary medium of
communication with the audience as it has mass reach a favorite image, high prestige value
and is attention getting. Cadbury also advertise through magazines, radio, promotions, online
etc. Consumers might believe that a heavily advertised brand must offer good value. Depends
the ‟taste” of Cadbury’s chocolate has long been the focus of Cadbury’s advertising. This has
been supported by the slogan „a glass and a half of full cream milk in every 200 grams‟‟,
accompanied by a picture of milk pouring into the Cadbury’s dairy milk chocolate block. The
image is a classic it has become an integral part of the packaging design and has been features
in magazines, and onbusses and trains, billboards and of course televisions.

Sales promotion:

Cadburys use sale-promotion tolls to draw a stronger and quicker buyer response. It can be used
for a short run effect to dramatize product offers. The Go another Cadburys promotion
encourages customers to purchase promotionally marked Cadbury product for a chance of
winning a free chocolate bar. This is just one of the many Cadbury promotions.

Public Relations:

The thought behind the public relations is that it provides advertising to a large audience as well
as generated a welcoming community likeness about the company. Well thought out programs
coordinated with the other promotional mixelements can be extremely effective. Cadbury are
committed to a strategy of ‟growing community value around the world “ad is focusing on
investing in theprincipal areas of education, health and welfare and this environment. Cadbury are
proud of their investment in the community and the contribution made by employees around the
world.

Personal selling:
Is the most effective tool at larger stages of the buying process, particularly inbuilding up buyer
reference, conviction and action.

Direct marketing:
Use of mail ?this is most of the time junk mail… telephone, fax, e-mail or the internet to
communicated directly with or solicit response or dialogues from thecustomer. In the case
of Cadbury’s this deals more with customers such as supermarkets to help with the set up or
organization of promotions, display or location.

Conclusion:
Cadbury is a very successful company that not only has tasty sweets but also sellsthem with the
best quality. Their price mix is also affordable which meets the expectation and makes it pocket-
friendly. Their geographical reach is remarkablethanks to year-long experience.