Cadbury PROJECT

Marketing

Cadbury

Cadbury Dairy Milk Chocolate




Submitted By: Mirza Bilal Baig

Submitted To: Sir Hanif Shahzad

Department: Management Sciences

National University of Modern Languages

Sector H/9 Islamabad.
























Acknowledgment

First of all I acknowledge the blessing of my Allah in helping me in my efforts; I would like to thank all of other helping hands who were with me to make this this project possible.


I am also thankful to my senior friend Waseem Cheema MBA 4th who helps me to complete this project in a good manner and within the time period.


Mr. Shahzad who recently completed his MBA from NUML also help me to understand the pattern of this project.





















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Executive Summary

The project which I choose is on Cadbury Company which made Confe
ctionery items and different types of chocolate products.The product which I choose is Cadbury Dairy Milk Chocolate. Cadbury is a Multinational Company and its business is worldwide.

This project covers the following topics:
The introduction and the history of the company, Strategic planning of this company like Vision, mission statement and the customer driven marketing strategies of that company like ( market segmentation, targeting and positioning).

The project also covers the Four P’s of marketing (Product, Price, Place and Promotional strategies).
It also covers about the Positioning strategy like how company sets its positive position and in the minds of consumers. It also tells about logo, Slogans and about the target market of this product.

Micro and Macro Environment of this company also discussed.
At the last my conclusion about the whole marketing process of that company’s product
I also give the reference of those websites which provides me relevant material. And the recommendations about this project.






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Table of Contents
Chapter No Page No
Acknowledgement i
Executive Summary ii
O1 Chapter# 01 1.0
Introduction of Company Cadbury 1.1
Designing a Customer Driven Marketing Strategy 1.2
Capturing Value from Customers 1.3
02 CHAPTER # 02 2.0
Vision and Mission Statement of Cadbury’s 2.1
Designing the Business Portfolio of Cadbury 2.2
BCG _ Matrix 2.3
Customer Driven marketing Strategy of Cadbury Dairy milk 2.4
Behavioral Segmentation of Cadbury dairy Milk 2.5
Target market of Cadbury dairy milk 2.6
Marketing Mix Strategy of Cadbury Dairy Milk Chocolate 2.7
4 P’s of marketing 2.8
Positioning strategy of Cadbury dairy milk & logo 2.9 03 Chapter # 03 3.0
Level of Market Segmentation of Cadbury dairy milk 3.1
Market environment of Cadbury dairy milk 3.2
Macro Environment & conclusion 3.3
Recommendations and References 3.4


































Chapter# 01




















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Introduction of Company Cadbury

Cadbury is a multinational company and the Cadbury dairy milk is a brand of chocolate which is made by Cadbury. Cadbury made different types of chocolates and other products which is sold in several countries around the world. It first sold its products in United States in 1905.

History
Cadbury’s started as a one man business, opened in 1984 by a Quaker, John Cadbury, which becomes nowadays Cadbury Limited, and now becomes the world’s largest chocolate producers. In 1831 the business had changed into grocery shop and John Cadbury became the manufacturer of the company.

Cadbury Dairy Milk is a worldwide brand of chocolate of United Kingdom Which made its different types of products and promote in different countries like Pakistan, India, Italy, Canada, France almost all countries.

Product Varieties
Cadbury made different types of chocolates and other products like:

Chocolates:
Cadbury dairy milk chocolate, Kit Kat, Five Star, Éclairs, Fruit & Nut, Cadbury lite, Cadbury Crackle etc…

Snacks;
Cadbury byes

Beverages:
Bourneville, Cadbury delight
Candy:
Cadbury hall
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Selection of product
From above of these products I select the Cadbury dairy Milk chocolate which is the one of product of Cadbury. In 2003 Cadbury’s made Dairy milk into super brand, bringing a number of different products under the name dairy milk branding for example dairy milk with bubbles.

Production of Cadbury Dairy Milk chocolate

Many of the newer Dairy Milk Varieties are now manufactured in the Republic of Ireland, France and Poland. Dairy milk Chocolate itself is also manufactured in France and these products are sold in the U.K and from U.K to all other countries.

Understand the Market place and Customer Needs
Cadbury dairy milk chocolate understands the new market which is targeted. First it selects the targeted customers like Kids, Youths and then made products according to their needs.
Cadbury Dairy Milk Chocolate made by company which offers to specific market, specific customers and also to all type of customers.
Marketplace also selected by Cadbury Dairy Milk according to customer needs and requirements.

Designing a Customer Driven Marketing Strategy
Cadbury Dairy Milk Chocolate Design such a strategy which is customer driven. I mean it target those markets which is profitable for the company. It includes production, product, selling and marketing concept.

Production concept;
Cadbury Dairy Milk Chocolate is a product which is favorable by customers and affordable by customers and Cadbury also focused to improve the quality according to customers’ needs and requirements. And also improve the production and distribution like improve the transportation chain.

Product concept;
Consumers favor the Cadbury Dairy Milk Chocolate because it offers the quality, distinctive features, Affordable price and Cadbury company devotes its full time to satisfy the new consumers and retain the oldest consumers.


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Selling concept;
Cadbury D.M.C has good promotional and selling concepts. It promotes through electronic media and by advertisement channels.

Marketing concept;
Cadbury D.M.C achieved its organizational goals and objectives because they know customers requirements like if they want to target school children it made sashes and made small packing which Childs easily afford. And also targets the specific market like niche markets.

Capturing Value from Customers
It means how company build strong relationships with customers and provides his customers to better products as compare to price which he pays against the product. Cadbury D.M.C provides all the above values and it also explains with the help of the following points.

Future Sales;
Company also focuses to increase its future sales by different ways like Cadbury dairy milk chocolate have more consumers and they also provide low price and more valuable and highly affordable products.

Market share;
Market share means Cadbury dairy milk have high market share and it is becoming higher because it gives more valuable products to consumers.

Market profit;
If Cadbury wants to earn more profit as compare to its competitors then it have to maintain strong relationships with its competitors by giving less price, good packing and also to make them loyal customers.


Customer Loyalty;
It means C.D.M have loyal customers because it provides superior customer value as compare to its competitors means customers get more benefits as compare to its cost. Especially we can say kids and youth are a loyal customers of Cadbury dairy milk chocolate, because they feel they feel they get more benefits which Cadbury’s competitors cannot provided.

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CHAPTER # 02













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Vision and Mission Statement of Cadbury’s

First of all before discussing any topic we have to understand the vision and mission statement of Cadbury’s which tells about the whole goals and objectives of the company and it helps us to understand the whole .Topic easily and effectively.

Vision Statement;
Cadbury’s set out a vision to achieve “a Cadbury in every pocket” dream by increasing the penetration of chocolates.

Mission Statement;
We can easily understand the mission statement by following points like;
Cadbury’s mean quality
This is our promise
Our reputation is build upon quality
Our commitment to continuous improvement
It will ensure that our promise is delivered

Characteristic of this mission statement;
We can say that this mission statement is realistic because if we see the quality and day to day improvements easily show that Cadbury’s have real mission statement.

Setting company’s Objectives and Goals
Cadbury successfully turned its mission statement into its overall objectives and goals. Cadbury says Cadbury is the name of quality and the Cadbury dairy milk chocolate and also different products is the biggest example of it.

And it says our commitment to continuous improvement and the demand and customer’s satisfaction shows that its products successfully fulfill the needs wants and demands by continuous improvement in the features of products.

In short we can say that company turned its mission statement into practical form and set its overall objectives and goals as Cadbury do and now a day become a market leader.

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Designing the Business Portfolio of Cadbury

Now I discuss the business portfolio, analysis of business portfolio and also see that the relevant market share of Cadbury dairy milk chocolate according to growth share matrix.

I also discuss that Cadbury dairy milk chocolate is on growth stage or it is a cash cow and if it is on question mark and if it is on dog stage then what is the strategy of Cadbury applies to stable its market share.

Business Portfolio of Cadbury
Cadbury made different products and sell into different countries. It means the collection of businesses and products that make up the company. Many of the newer Dairy milk varieties manufactured in the Ireland, Poland, France, and Cadbury dairy milk itself is also manufactured in France different types of chocolates and candies that make up the company Cadbury.

Analysis of Portfolio
It means Cadbury analysis that which product is need to be more investment and which need to less and which product should have to phase out from the market due to less demand.

For example in 2003 Cadbury’s made dairy milk chocolate into super brand, and introduce a lot of products under the dairy milk brand and wispa bars were phased out from market and replaced by dairy milk with bubbles.

BCG _ Matrix

Star

?
Cash cow
Dog

Now I see that my product is on what stage mean Cadbury Dairy milk chocolate is Star, Cash Cow,? Or Dog. And what is the position of market share of Cadbury dairy milk chocolate.

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Star;
It is high growth, high market share and high profit businesses and products.

Cash Cow;
It is low growth, high market share and more revenue generating products and it has high profit as compare to star. It need less investment to hold their market share because it has already well established SBU’s. It produces and made investment in other products because it is well stand itself and made other products from their revenue.

?;
Question marks are low market share, low profit and high growth in markets and they need heavy investment to hold their market share.

Dog;
Dogs are low growth, low market share, and low profit earning products or we can say that it is those that almost phased out from market.

Cadbury Dairy Milk chocolate is on what stage?
Off course I can say that my product is a cash cow because it has low growth, high market share, high revenue generating as compare to other products of Cadbury.

The revenue which generates from D.M.C is used to promote other products of Cadbury like dairy milk with bubbles.

As of 2004, there are ten varieties of dairy milk produced in the U.K with the revenue from dairy milk chocolate. Because it is already well established product which needs less investment but more profit earning.

It can also understand from the following points.
· Low growth because it is well established SBU
· High market share
· High profit
· Responsible to make other products
· Because it is more cash generating
· It has more potential costumers than others

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Customer Driven marketing Strategy of Cadbury Dairy milk
In customer Driven marketing strategy we discuss the Cadbury dairy milk market segmentation, target marketing and market positioning strategies.

Market Segmentation;
It means divide the market into group of potential customers on the basis of occupation as well as the age group of the in the market.

It means all marketing process depends on marketing segmentation and it is the foundation of all the marketing processes.

Cadbury dairy milk also divides the market into different group of customers. We can understand it by following discussion.

Identify Market Segment of Cadbury Dairy milk
Targeting a group of customers who share a similar set of needs and wants which Segmenting the consumer markets. There are basically four types of segmentation which I discuss the following.

Geographical Segmentation
Behavioral Segmentation

Geographical Segmentation;
It can be understand from the following points.

Age and life cycle;
Under this type of segmentation the buyers who mostly prefer the Cadbury dairy milk comes under the age group of 4 to 50 years.

Gender;
For purchasing Cadbury dairy milk gender does not matter. Cadbury dairy milk are for all type of persons whether male or female.

Income;
The price of Cadbury dairy milk is reasonable and affordable, so a person does not need to much think before purchasing. They can easily buy it any time when they want to buy. The income of a person does not play an important role in
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Generation;
Cadbury dairy milk will not be much affected by the generation differences. All type of people like to purchase the Cadbury dairy milk when they want to buy it.

Behavioral Segmentation of Cadbury dairy Milk;
We can understand it by the following points
Decision roles;
The decision role is played by the children and youngsters. They play an important role in taking the decision of when to buy the Cadbury dairy milk.

Occasion;
For purchasing the Cadbury dairy milk no specific occasion are required. People can easily purchase it on regular bases also if they needed.

Benefits;
Cadbury dairy milk is easily available anywhere when we need it. The supply chain of Cadbury dairy milk is very good also it a quality conscious. So there are two main types of benefits given by Cadbury dairy milk are supply chain and quality.

User status;
There are mainly the regular users found in the user status of Cadbury dairy milk.

User rate;
The user rate is heavy in the behavioral segmentation of Cadbury dairy milk.

Loyalty status;
There is mainly the absolute loyalty status.

Attitude;
There is an enthusiastic type of attitude of buyers.

Segmenting for Business Markets;
It can be easily understand from the following points.

Demographic
Operating variable
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Purchasing approaches
Situational factors
Personal characteristics

Models of sequential segmentations;
It can be easily defined and understand from the following points.

Stage of decisions
First time prospects
Sophisticates
Orientation
Price oriented

Target market of Cadbury dairy milk;
The main target of it mainly is children and youths that are in the segments of occupation and in the age group.

Cadbury dairy milk commonly targets all types of customers whether they are young and old, male or female.

And now the target markets which is selected and targeted by it is according to age, gender, occupation and income of potential customers.

How can we choose the target markets from the different segments?
The answer is that a acronym DAMP is used to gauge the viability of target markets.

Discemible; How a segment can be differentiated from other segments.

Accessible; How a segment can be accessed via marketing communications produced by a firm.

Measurable; can a sufficient return on investment be attained from a segment’s servicing.

Profitable; can a sufficient return on investment be attained from a segments servicing.

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Market positioning of Cadbury dairy milk;
Cadbury dairy milk made position of it product chocolate not only in the minds of consumers but also in the market.

It means what is the view of consumers or concept about of your product like trough adds children’s and youngsters view and action after seeing the add of your product.

To make position in the minds of customers company used different promotional techniques through
By giving add through any superstar
Electronic media
Press media
Sign boards
By giving discount
By giving funds to welfare organizations


Marketing Mix Strategy of Cadbury Dairy Milk Chocolate
It is also known as integrated marketing or 4P’s of marketing. We can understand the marketing mix strategy of Cadbury dairy milk by discussing the following four P’s of marketing.

Now I discuss the Product, Price, place and promotional strategy of Cadbury dairy milk chocolate.

Product;
Cadbury dairy milk is made from real chocolate. Its ingredients include cocoa, butter and there is a glass and half full cream dairy milk in every 200 grams in every dairy milk chocolate. Cadbury buys 65 million liter of fresh milk each year to make Cadbury dairy milk chocolate.
Strategy;
The strategy of Cadbury dairy milk is to continuous improvement in the quality and features of product. It is the mission statement of Cadbury to make quality chocolate which have competitive advantage from the competitor’s products and it enhances the goodwill of the company.

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Price;
It is an important element of the marketing mix. The price for a chocolate bar can determine whether a consumer will buy it or not it can be determined easily and sales volume tells about that price is reasonable or not.
If competitors charge the low price than the Cadbury chocolate, it is automatically affect the company’s profit.
Strategy;
Cadbury dairy milk applies the reasonable and affordable policy to charge the price from its competitors. Because it is the vision of Cadbury that Cadbury is in every pocket. It charges the fewer price from its competitors and provides better quality also. We can say it is used penetration strategy because have low prices as compare to its competitors and have long life cycle of the product. Cadbury wants to survive in the market for long run.

Place;
Cadbury dairy milk is produced at the chocolate factory in Bourneville in Birmingham. After the chocolate is produced and goes through the process of all quality checks. It is transported to the staff rooms and then Cadbury sells it product to shops.
Strategy;
The placement strategy of Cadbury dairy milk is to sell the chocolate at every corner shop, super stores, bakers shop, petrol pumps and even medical stores also included in it. It is the mission statement of Cadbury to provide chocolate to all type and class of customers.

Promotion;
The purpose of promotion is to communicate directly with potential and actual consumers. In order to encourage them to purchase dairy milk chocolate the Cadbury used different promotional tactics.
Strategy;
Cadbury dairy milk is used press and electronic media to motivate the potential and inspires the actual customers to purchase the product of Cadbury.
Promotion is an important element of marketing mix because if it is not well planned then company is unable to increase it sales.
The company gives discounts on different occasions.
To inspire the Childs to purchase the Cadbury chocolate the company made such type of ads. To encourage the youth class the company hires the superstars for advertisement of the products which inspires the all type of consumers who want to eat sweet.

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Positioning strategy of Cadbury dairy milk
Positioning is all about that what is the customer concept or image of your product in the minds of the people who likely to purchase the product.
It also concerns about what is the position of your product in the market.

We can say every aged person wants to buy Cadbury dairy milk chocolate and they also don’t know why they are purchasing the Cadbury dairy milk even they don’t want to purchase.

Slogan of Cadbury dairy milk
Slogans also play an important role to position a positive concept in the minds of customers like:

Cadbury dairy milk is a brand of chocolate bar made by the Cadbury plc unit of ….with slogans such as:
A glass and a half of full cream
Cadbury is the name of quality it is our promise



Logo of Cadbury

Brand name of product
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Chapter # 03











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Level of Market Segmentation of Cadbury dairy milk
Now we have to see which type or level of market segmentation of Cadbury dairy milk has. Of course mass marketing.
Mass marketing;
It means offer the same product to all customers by ignoring market segment differences. Mass means huge group of buyers. It means there are a large number of customers. It is also called macro marketing.
Cadbury offers one type of Cadbury dairy milk chocolate to all customers and no difference of market segmentation. Product, price, place and promotional strategies are also same.

Cadbury dairy milk has competitive advantage
The following are the points which give the competitive advantage over competitors.

Important;
Cadbury dairy milk chocolate is according to customer’s needs wants and requirements.

Distinctive;
Different features as compare to competitor’s products mean Cadbury have good quality, more features like unique taste, design, logo and other attributes.

Superior;
Cadbury dairy milk is superior in quality, continuous improvements and have different features.

Communicable;
Cadbury dairy milk is easy to understand about the quality and features.

Preamtive;
Its logo, quality, taste and other features are not copied by other companies.

Affordable;
Its price is reasonable and affordable by all customers.

Profitable;
It depends on the sales volume and low cost of the company products.
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Market environment of Cadbury dairy milk
There are two types of market environment of Cadbury dairy milk.

Micro Environment
Macro Environment

Micro Environment;
It means the internal environment of the company and it is also called small environmental forces which directly or indirectly affected the company.
It has some forces which are discussed below

Company;
Cadbury dairy milk is a company which manufactures the products like chocolate. There are different departments in the company who collectively responsible to make the products.

Suppliers;
Suppliers are those persons who provide the raw material to the company like cocoa and other supporting raw material there are also external suppliers who provide the finished goods to and create link between company and customers.

Intermediaries;
After making the finished products they create a link between company and suppliers, they include wholesalers, retailers and middlemen.

Competitors;
Cadbury have many competitors who directly challenge their products and affect their business.

Customers;
Are those people who buy the products of the company? Those people who purchase the Cadbury dairy milk chocolate are the customers of the Cadbury.

Public;
It means government who directly affect the company business by giving different facilities like rebates and funds because company get benefits from it.



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Macro environment
It means the overall and general environment of the company. The forces outside the company called macro environment.

Demographic Environment;
Divide the market on the basis of age, gender, locality, occupation and income. Cadbury dairy milk targets all type of customers on the basis on these because these are not the hurdles on the way of the company.

Economic Environment;
Cadbury dairy milk understands the economic situation of the country in which it goes to start the business. I mean inflation rate also a matter.

Natural environment;
It also plays an important role in the success of organization. The availability of natural resources also matters.

Technological environment;
Availability of new technology also plays an important role in the success of any organization. It is the symbol of success that country has all new technology.

Political Environment;
Political scenario plays an important role in the success of any organization. Because if new govt. change all the policies of previous govt. then company may suffer heavy losses. Cadbury dairy milk understand and analyze the all the conditions.

Cultural environment;
The culture plays an important role because if product is not according to specific culture then company may suffer heavy loss.

Conclusion
I can say that Cadbury is a multinational company and its product Cadbury dairy milk chocolate is a cash cow for the company. It is well established SBU. Cadbury dairy milk is a market leader. More profitable as compare to other products of the Cadbury.


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Recommendations:

Launch the product into further countries
Price also need to become more affordable
Improve the quality of sashes
Global growth
Need to improve the marketing mix strategy
Market penetration process need to be effective
Super stars play a key role by advertisement
Promotional strategy need to be revised


References:
www.oppapers.com/essay/dairy_milk_introduction_analysis/88036
http://oppapers.com/essays/cadbury_4ps/49/46
http://www.scribd.com/doc/14436196/cadbury_NEW_PRODUCT_DEVELOPMENT













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