Cadbury Marketing Case Study

MARKETING

Choose a product and then critically analyse its market situation and positioning, using

relevant marketing concepts.

Product Selected: Cadbury Dairy Milk (CDM)

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ASSUMPTIONS & LIMITATIONS

ASSUMPTIONS:

 While analyzing the market segmentation of CDM assumptions are made for some of

the segmentation variables.

 Model Market Segments are developed for CDM which are not the exact market

segments of CDM.

 While preparing the Perceptual map (Price & Quality) users reviews about the

chocolates from Mouthshut.com and perceptual map of Indian chocolates from

Tutor2u Limited are considered.

 In case of CDM's Marketing Mix,some assumptions are made regarding marketing

mix elements.

Note : Wherever the assumptions are taken they are mentioned in the essay.

LIMITATIONS:

 The scope of essay is limited to the Indian Market of CDM.

 Not much data is available for analyzing the Market Segmentation of CDM.

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Table of Contents

Page

1)Introduction 4

2)Product Profile 4

3)Market Situation Analysis 4

3.1)Market Segmentation 5

3.2)Target Market(s) 7

4)Positioning Analysis 9

4.1)Perceptual Mapping 10

4.2)Marketing Mix 10

5)Conclusion 12

6)References 13

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1)Introduction

"Marketing is a significant dimension of any business in today'shighly 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

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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