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Marketing mix of Cadbury

Products in the Marketing mix of Cadbury Cadbury has a power house


lineup 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. In beverages there
is bournvita which again is one of the leaders in milk addittives. Halls as a mouth
freshener as well as a remedy during cold is used across India. Thus, with such a
strong line of products, cadbury is bound to lead the chocolates industry. Due to
its products, Cadbury is the leading name of chocolates across the world and has
presence in all 7 continents. A list of cadbury products can be found here
http://en.wikipedia.org/wiki/List_of_Cadbury_products
Price in the Marketing mix of Cadbury With quality comes price. As the
quality of the products is high, and the beverages and Oreo requires 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. 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.

However, in all these, the Dairy milk brand is the clear winner. Priced in high as
well as low variants, the cadbury dairy milk has a position of gifting and hence is
selling high volumes even at higher prices. The cadbury celebrations pack in fact,
sells in millions on any festival or on celebrations.
Place or Distribution in the Marketing mix of Cadbury The
distribution of Cadbury is fantastic and widespread. It is present strongly in all
urban areas as well as A,B and C category towns. The rural marketing of Cadbury
is known to be weak but that is because demand there is also weak. Cadbury
follows the same mantra of FMCG marketing which is breaking the bulk. The
cadbury chocolate is manufactured in Bournville, England. Recently there was an
advertisement which promoted that Cadbury buys only the best cocoa beans from
Ghana for its chocolates. These chocolates are then distributed across the world.
Cadbury is present in 200 or more countries. Once the chocolate reaches in bulk,
it is broken down as follows.
Related Marketing mix of State bank of India - SBI marketing mix

Company >> C&F agent >> Distributors >> Retailers >> Consumers
As you can see, due to the channel, the distribution costs of Cadbury are high. But
based on the demand in the market, the costs were going to be high anyways.
That is something which has to be taken into consideration during the
distribution of products. In the end, Cadbury has a very srtong presence in the
market, and you can be rest assured, that if you want to have a cadbury, it will be
within 2 minutes reach from you in any of the local retail shops.
Promotions in the Marketing mix of Cadbury Indians love sweets. From
Bengalis to Punjabis to South Indians, each of us want sweets. Youngsters love
sweet, and old people want a nibble from time to time. Thus it is no surprise, that
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
cadburys stocked at home. Or they gift a Cadbury dairy milk or celebrations to
their loved ones.

The promotions of Cadbury for each of its products is different. For Bournville,
Cadbury has kept the position that you dont 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
standies 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.
Overall, there are many many positives which make Cadbury the great company
that it is. We hope that Cadbury keeps manufacturing such great products. So

what do you say? Kuch meetha ho jaye

Brand Strategy
The Production Flow: From Cocoa to Cadbury Diary Milk
In 1904, Cadbury Dairy Milk was born when Johns son, George Cadbury perfected the rich and creamy
milk chocolate recipe. Today, Cadbury Dairy Milk is managed under Kraft foods in Singapore.
At the heart of the Cadbury Dairy Milk is cocoa. Production starts at the Singapore cocoa refinery factory
(in Jurong Tuas) where the top quality cocoa beans are processed to produce the cocoa mass which
contains 53% cocoa and cocoa butter the basis for all chocolate products. After which the cocoa mass
is transported to the Cadbury factory in Ringwood, Victoria or Claremont, Tasmania to be converted into
full dairy milk chocolate.

At the end of the manufacturing value chain, Cadbury Singapore import these delicious chocolate and
deliver it to the shelves of the nearest convenience stores near you.

Segmentation and Targeting


One notable form of customer segmentation that Cadbury utilitizes is behaviorial segmentation, which is
based on actual customer decision-making processes towards Cadburys products. Once dividing these
customers by that base, they target them by providing specific product offerings. The relevant segments
are the following: The Break Segment, Impulse Segment and Take-home Segment.

Break Segment
This segment describes products which are normally consumed as a snatched break and often with tea or
coffee. This would make up a part of a meal and usually will be used a form of dessert substitution. Some
examples of products that cater to this would be the newest product to the Dairy Milk range, Cadbury
Dairy Milks Bubbly. These products are packages in small quantity, ranging from 50grams to 60 grams.

Impulse Segment
These products are most often purchased on impulse while consumers are walking buy or shopping for
other household goods. They are strategically placed at eye-level or near the checkout counter so that
consumers can make an unplanned purchase. Promotions are also often used to encourage consumers
to purchase thechocolates.Both the Cadbury dairy milk block-size and bite-size could be purchased on
impulse, depending on its packaging and its presentation.
In terms of product packaging, they are similar to those of the break segment small and compact.
Their products are offered in 50grams to 60 grams.
Take-home Segment
This describes products that are normally purchased in supermarkets, taken home and consumed at a
later stage due to its sheer quantity. Part of this segment is called the gift segment, where the consumers
will take home a box of chocolates in the form of a gift for someone else. An example of this would be
Cadburys large Dairy Milk blocks(top first image) or the Cadbury Celebrations box (not available in
Singapore).
For the Singapores market, these products are offered in bigger blocks, ranging within the 190grams to
220 grams chocolate segment.

In a nutshell, this is how the brand managers at Cadbury Singapore, understands our consumer
segmentation.

Cadburys Marketing Mix


Product
Cadbury worldwide has a very strong brand presence and an even stronger product range. If we were to
take into account its entire worldwide portfolio, then we would end up with over 57 sub-brands under its
confectionary category, over 11 different types of desserts (with at least two sub-brands in each dessert
category), 7 types of beverages, 3 types of biscuits, 4 types of cooking products, and at least 20 different
types of miscellaneous chocolate sub-brands. Needless to say, its a huge umbrella brand which balances
its brand equity with its diverse product range.
However, in Singapore alone, Cadbury has not unleashed its entire product line. It has selected its few
megabrands and released them to gain an appreciable market share. Cadburys products in Singapore
alone consist of Dairy Milk, Bubbly, Dream, 3-in-1 Chocolate Drink, Chocolate Rolls, Old Gold, Boost,
Freddo, Crunchie, Wispy, and Time-out. These sub-brands can be loosely segregated into the
confectionary and beverages categories.

One of greatest product of all time is our Cadbury Dairy Milk. Cadbury Dairy Milk was perfected in 1904
when George Cadbury, together with Bournville experts in chocolate production, started to research for
new recipe and production methods. Compared to the Swiss chocolate that uses condensed milk,
Cadbury Dairy Milk uses fresh liquid milk or to be more specific A glass and a half fresh liquid milk in
every half pound of chocolate.
In Singapore, we offer 12 flavours under the Dairy Milks brand. These 12 flavours are the Dairy Milk itself,
cashew, dream, dud, fruit & nut, hazelnut, crunchie, macadamia, marble, roast almond, top deck, and
blackforest. We had also recently launched a new Dairy Milks flavour Cadbury Dairy Milk Bubbly.

Because we understand and listen to our consumers needs and wants, we underwent a radical change in
our packaging for the Dairy Milk in 2009. From using thin flimsy plastic wrapper, we switched to using

thick sturdy paperboard to package our Dairy Milk chocolate so that handling and storage of our products
are made easier and fresher.
The Old Packaging

The New Packaging in 2009

Price
Cadbury has tried to position itself as somewhat of an affordable luxury. By keeping its price relatively
high, it has managed to give competition to some of the premium brands like Ferrro Rocher. The price of
its star brand, Dairy Milk, ranges from $1.70 to $2.65 SGD (Source: Fairprice and 7-11) based on which
store is selling it. It also sells its take-home 200 gram Dairy Milk bar for $5.20, which is quite a large
amount for a chocolate bar.

Distribution
Cadbury in Singapore has a strong distribution network and its star products such as Dairy Milk and Timeout can be found in almost any store. Its primary distribution network consists of all convenience stores,
supermarkets, hotels, airport duty-free shops, and almost anywhere else where chocolate confectionary is
sold. Its targeted at families and is said to be everyones chocolate which makes it a universally
available brand.

Promotions and Advertising


In Singapore, we try to continuously manage and improve our consumers experience with our Dairy Milk
Chocolate. One of the platform that we are present is our social media presence on Facebook. Through
our Facebook, we are able to communicate our new promotions, drive new campaigns and interact with
our loyal customers.

As we interact with our customers, we do not focus just on discussing about Cadbury products. In trying
to establish an intimate relationship (like friendship), we share the history of chocolate, chocolate news
around the world, new chocolate consumption methods, and choosing our Fan of the Month and make
them the profile picture of our Facebook page.
In terms of promotion, we strive to give our customers the best value for their money and
indulgence.One of the ways is to bring in seasonal products like Cadbury Crme Egg, Cadbury Freddo,
and Cadbury Milk Tray.
Complementing these promotions, we are constantly initiating new campaigns to reach out to new
customers and reward our existing ones. One of these campaigns is the Cadbury Dairy Milk Shioklaty
Moments where we get our customers to share a photo of them of their happiest moments while
consuming Cadbury Chocolate. Adding on, we also try to co-create our Cadbury brand with our
customers. Through this campaign, we will feature the winner of the Shioklaty Moments campaign on our
bus shelters advertising poster.

Advertisements like the Cadbury Eyebrow and Cadbury World are not locally produced. However,
being part of the Cadbury (and Kraft) Family, such productions are produced locally (not in Singapore) but
advertised globally. When these productions are brought into the local context, and in this case into
Cadbury Singapore, our marketing team will discuss local campaigns to complement these productions.

So for example Cadbury World was part of a global marketing effort and was aired in Singapore through
television. To ensure the success of this marketing campaign, Win A Trip on SQ380 to London, Paris,
Syndey or Tokyo contest was initiated in 2009 and this drives up the sales of Cadbury Dairy Milk
Chocolate.

Looking Forward
Cadbury has plans to move from a product brand to a service brand, where it intends to open up cafes
termed Cadbury Cocoa House. These cafes will be Cadbury branded, traditional English style cafes
where you can expect to enjoy a delicious afternoon tea, along with a range of Cadbury-themed goods.
Cadbury aims to have an edge over rivals such as Starbucks and Pret a Manger by selling alcohol
alongside its more traditional beverages. The first of these delicious chocolate themed cafes is proposed
to be constructed in London.
If this service-themes proposition works out, then Cadbury can hope to go worldwide with the same idea
by opening up stores in Singapore. Seeing the local success of Milo as a chocolate and family brand,
Cadbury would like to attempt becoming the same in the confectionery category. They have made
significant headway into breaking into Singapores saturated chocolate industry through their use of
innovative social-media campaigns.
Cadbury Singapores current Shioklaty Moments campaign focuses on driving affinity and advocacy for
the brand with a crowd-sourced campaign centered around sharing and amplifying moments that
consumers like to capture and treasure. Shioklaty Moments are described as little moments of joy,
inspiration, fun and togetherness that Singaporean consumers feel like sharing with the world. Cadbury
Dairy Milk provides the avenue to make this happen.