Cadbury’s Dairy Milk

INTRODUCTION

History of Chocolate:

The origins of chocolate can be traced back to the

ancient Maya and Aztec civilizations in Central
America, who first enjoyed 'chocolati'; a much-
prized spicy drink made from roasted cocoa beans.
Chocolate was exclusively for drinking until the early Victorian
era, when a technique for making solid 'eating' chocolate was
devised. Throughout its history, whether as a cocoa, a drinking
chocolate beverage or confectionery treat, chocolate has been a
much sought after food.

The story of cocoa begins with cocoa trees, which, for thousands
of years, grew wild in the tropical rain forests of the Amazon
basin and other tropical areas in Central and South America.
Hundreds of years before cocoa were brought to Europe, the
Maya Indians and the Aztecs recognized the value of cocoa beans
both as an ingredient for their special drink and as currency.

History of Cadbury:

The Cadbury story is a fascinating study of

industrial and social development, covering well
over a century and a half. It shows how a small
family business developed into an international company
combining the most sophisticated technology with the highest
standards of quality, technical skills and innovation.

A one-man business, opened in 1824 by a young Quaker, John

Cadbury, in Bull Street Birmingham, was to be the foundation of
Cadbury Limited, now one of the world's largest chocolate
producers. By 1831 the business had changed from a grocery
shop and John Cadbury had become a manufacturer of drinking
chocolate and cocoa, the start of the Cadbury manufacturing
business as it is known today.

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The leader in the UK confectionery market, Cadbury Limited is

the confectionery division of Cadbury Schweppes plc, a major
force in the confectionery and soft drinks international market.
Quality has been the focus of the Cadbury business from the very
beginning, as generations have worked to produce chocolate with
the taste, smoothness and snap characteristic of Cadbury
chocolate.

About Cadbury’s Dairy Milk:

Long ago in 1866 the Cadbury brothers were busy pioneering

their drinking chocolate recipe. However, they wanted to give
their chocolate fans more. 30 years went by with the brothers
dreaming up new ideas and then inspiration struck. What would
happen if you put fresh milk into chocolate? That’s why since
1905, Cadbury Dairy Milk still contains a glass and a half of fresh
milk in every half pound of milk chocolate.

Cadbury Dairy Milk is full of beans, Cocoa beans to be precise.

And all from one place: Ghana. They believe that Ghanaian beans
are so delicious that we’re happy to pay premium prices for
them. They think it’s worth it to give us that unique Cadbury
Dairy Milk taste that we all love so much.

Everyone knows the not so secret ingredient of how Cadbury

Dairy Milk is made so creamy. However, not many people know
how dairy milk chocolate is made so chocolatey. It’s all thanks to
the beautiful tropical country of Ghana in West Africa that helps
make our Cadbury Dairy Milk taste so special.

The Cadbury’s dairy milk contains a whole glass and a half goes
into every single half pound of chocolate. That’s why it tastes so
delicious and that’s why is named as Cadbury’s dairy milk.

Cadbury Dairy Milk, produced in Bournville UK, uses fresh liquid

milk sourced from dedicated dairy farmers in the UK. Cadbury
Dairy Milk is also produced in Ireland and uses fresh, liquid Irish
milk to create the unique chocolate taste.

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OVERALL STRATEGY

OF

CADBURY’S DAIRY MILK

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The overall strategy of CADBURY’S DAIRY MILK for the target

market is to capture the maximum attention of the customer is
somewhat same all around the world. The target market is same;
positioning is somehow different in the different regions of the
world according to the segmentation and mental perception of
the customer. The message is also nearly same. CADBURY’S is
targeting the same market around the world.

Cadbury’s dairy milk has recently launched a new gorilla ad

campaign that targets to new segment of fun seeking consumers.
We will see later in the report that how Cadbury’s has segmented
its market and targeting each segment through different
strategies.

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Marketing Strategy and

Analysis
For any company to be successful in the market, it is very
important to have a thorough marketing strategy and analysis of
the market in detail. This is what the Cadbury’s dairy milk has
done and is still doing to be at the hearts of the consumer. The
marketing strategy and analysis consists of the following three
tasks:
• Opportunity analysis
• Competitive analysis
• Target marketing

Opportunity Analysis:

The reason behind the success of Cadbury’s dairy milk is that

they are continuously searching for the opportunities in the new
market segments and regions world over. This opportunity
analysis has helped Cadbury’s a lot to become market leader in
the dairy milk chocolate industry. So for any firm, to be
successful in the market, it is at utmost priority to search for
opportunities in the new market segments.

Competitive Analysis:

Cadbury’s Dairy milk is the market leader in dairy milk chocolates

but still the competition exists. Cadbury’s dairy milk has thorough

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competitive analyses that are affecting it directly or

indirectly. The following figure gives a briefer overview of the
competitive analysis of Cadbury’s dairy milk.

Cadbury’s dairy milk has a number of competitors that is

affecting it directly or indirectly. A deeper analysis of competition
of Cadbury’s dairy milk gives us three differentiated layers of
competition that includes:

• Direct competition
• Product category competition
• Generic competition

Biscuits Cakes

Nestle kit kat Jubilee

Cadbury’s dairy
milk

Ferraro Rocco

Lindt Swiss Made

Direct competition

Bounty Snicker

Product Category

Confectionary Sweets
Generic

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Competitive Analysis of Cadbury’s Dairy Milk

Direct Competition:

The direct competition of Cadbury’s dairy milk includes all the

chocolates that are made from fresh milk and exactly contains
the same nutritional facts as Cadbury’s does. In direct
competition, consumer has the choice of switching to the other
product that contains the same ingredients hence directly affects
need for Cadbury’s dairy milk. This direct competition category
for Cadbury’s includes:

• Ferraro Rocco
• Lindt Swiss Made
• Patchy

Product Category Competition:

The next level of the competition for Cadbury’s dairy milk is

product level. It contains a broader aspect of chocolates that not
only contains the dairy milk chocolates but also other categories
and variants of chocolates. The product category competition for
Cadbury’s includes:

• Bounty
• Snickers
• Jubilee
• Nestle Kit Kat

Generic Competition:

This is yet another level of competition for Cadbury’s dairy milk.

In this level of competition, we make our vision broader to an
extent that now includes other edibles apart from only chocolates
that can easily alter the decision of the consumer by attracting
the consumer. Other eatables that can easily replace the
chocolate are included in generic competition. Generic
competition for Cadbury’s dairy milk includes:

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• Sweets
• Confectionary items
• Biscuits
• Cakes

Budget Level Competition:

It is the broadest level of competition that will include all the

products falling into the budget of Cadbury’s dairy milk. There
are mainly two aspects for which the Cadbury’s dairy milk
chocolate can be consumed, firstly for the sake of having fun and
secondly for a source of energy. The budget level competition will
include all the products that will fall in the same budget and
satisfying either of the two needs of the consumer. Budget level
competition for Cadbury’s dairy milk includes:

• Fast Foods
• Baseball Cards
• Video Games

Target Market Selection:

The next step in market strategies and analysis is target market

selection. In this process a firm carefully has a glance of the
target markets where they feel some opportunity to offer their
product. Cadbury’s dairy milk being the market leader has been
exploring markets for ages and everyday introducing their
products to new markets segments.

Segmentation
Segmentation is defined as dividing the market into logical
distinct groups that has:
• Common needs
• Will respond similarly to a market action

Cadbury’s dairy milk has very finely segmented market to offer

its products. The segmentation of Cadbury’s dairy milk is based
on the following bases:

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Geographic Segmentation:

Cadbury’s dairy milk has geographically divided the market in to

smaller distinct segments and offering products according to the
need of the segments. The geographic segmentation includes:

• Region
• City size
• Density

Based on the following bases, Cadbury’s is offering its product to

different countries with different strategies all over the world. The
most important geographic segmentation variable is region for
Cadbury’s dairy milk. Cadbury’s has very keenly observed the
needs of chocolate lovers in different countries and being the
pioneers in introducing the dairy milk chocolate, has effectively
catered the needs of the consumers in different countries.

Product offerings are also different in different geographic

regions depending upon the needs and taste of the consumers.

Demographic Segmentation:

One of strong bases in segmentation process is demographics.

Demographic segmentation is done on the bases of following
variables:

• Gender
• Age
• Race
Cadbury’s dairy milk has demographically segmented the market
fulfilling the needs of every consumer. They are targeting both
male and females. The product is offered to all age groups.

Psychographic Segmentation:

Psychographic segmentation is when the market is segmented on

the bases of:

• Personality
• Values (VALS)

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• Life Style

Cadbury’s dairy milk gives most priority to life style while

segmenting the market psycho graphically. It tells about the life
style, preferences and likings of a certain group. Cadbury’s dairy
milk is a premium product so it carefully caters the life style of
the consumers to give them a better product to consume.

Socioeconomic Segmentation:

Socioeconomic segmentation divides a group of people according

to three variables that are:

• Income
• Occupation
• Education

It is very important for Cadbury’s dairy milk to segment the

market according to income level and occupation. Cadbury’s
dairy milk being a premium product is targeting SEC A and SEC
B class. So targeting a top socio economic class with a premium
product requires a lot of learning about the market, and that is
what the Cadbury’s dairy milk is doing.

Benefit Segmentation:

Cadbury’s dairy milk chocolate claims that every half pound of

Cadbury’s dairy milk contains a glass and a half full of rich cream
milk. So they are also targeting the segment of the market that
only relies on the benefit part of a product. Though chocolate is
an element of having fun, yet according to the needs of the
consumer, they have also segmented their market on beneficial
bases.

Target Market:

Based on the segmentation process, Cadbury’s dairy milk targets:

• Male, Female, Children

• All age group people
• Fun seeking personalities
• Consumer who wants fun with energy

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• Consumers who are conscious about their

life styles

MARKETING MIX

OF

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CADBURY’S DAIRY MILK

Product
Cadbury includes a wide range of products including dairy milk,
bournville and many others. Further there is a big range of
products under Cadbury’s dairy milk. Here is a brief description of
products being offered by Cadbury.

Cadbury Crème Egg:

A thick Cadbury chocolate shell filled

with an irresistibly gooey centre.

Cadbury’s Dairy Milk:

With a glass and a half of full cream milk

in every 250 grams.

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Flake:

Only the crumbiest, flakiest chocolate

tastes
Like this.

Bournville Deeply dark:

An intense but surprisingly smooth dark

chocolate with 60% cocoa.

Cadbury’s Dairy Milk Range

Cadbury’s Dairy Milk Caramel:

It contains smooth caramel covered with rich dairy milk

chocolate.

Cadbury’s Dairy Milk Biscuit:

It contains a crunchy biscuit covered with thick dairy milk

chocolate.

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Cadbury’s Dairy Milk

Cadbury’s Dairy Milk Bubbly:

It contains bubbles of dense chocolate that gives an exotic taste

of dairy milk chocolate.

Cadbury’s Dairy Milk Almond and Honey:

It contains roasted almonds dipped in honey and covered with

the all times favorite dairy milk chocolate to give a great taste.

Cadbury’s Dairy Milk Whole Nut:

It contains nuts covered with dairy milk chocolate.

Cadbury’s Dairy Milk Mint:

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It contains a great refreshing and cool minty taste to

freshen one’s mouth.

Price
Cadbury’s dairy milk is market leader in dairy milk chocolate
products and charging a premium price for its products. Following
are the prices of Cadbury’s dairy milk that they are charging for
their products.

Name of product Weight Price (PKR)

Cadbury’s dairy milk 250g 145
Cadbury’s dairy milk caramel 250g 150
Cadbury’s dairy milk bubbly 181g 125
Cadbury’s dairy milk almond 250g 210
honey
Cadbury’s dairy milk biscuit 250g 160
Cadbury’s dairy milk whole nut 250g 200
Cadbury’s dairy milk mint 250g 185

Pricing Strategy:

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Cadbury’s Dairy Milk

As discussed above that Cadbury’s dairy milk is a

pioneer in dairy milk products so they are charging a premium
price as they know that the market they are targeting can pay
this price for a quality product.

Price varies in different regions geographically. The price charged

in UK or Australian markets is different from the price charged in
Asian markets. The pricing structure tells that the pricing strategy
is based on the extra ordinary quality of the Cadbury’s dairy milk
products.

Placement

As Cadbury’s Dairy Milk is a consumer good and convenience

item so type of placement used for it is Spot Exchange. It has
been made available in all big and small general stores. The SKU
(Shelf Keeping Unit) strategy is very strong and it is available in
almost all leading stores in different sizes.

The distribution network of Cadbury’s dairy milk is very strong as

it is being exported in more than 30 countries.

Packaging
Cadbury’s Dairy Milk products come in very attractive purple
color packaging, which is an identification of Cadbury’s dairy milk
products. Packaging comprises of all the aspects to attract
consumers and vary with the product type and variants.

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Cadbury’s Dairy Milk

It also contains the nutritional facts information

displayed on the packaging to give consumer a sound confidence
that they are eating a healthy and nutritious product. Here are
different samples of packaging of Cadbury’s dairy milk products.

Nutritional
Information:

Nutrition Information (per

100g)
Energy (KJ) 2190
Energy (KCal) 525
Protein 7.5g
Carbohydrate 57g
(of which Sugar) 56.7g
Total Fat 29.8g
(of which Saturated Fat) 18.5g
Fiber 0.7g
Sodium* 0.09g

Positioning
Cadbury’s Dairy Milk has a very sound positioning of their
products in the minds and hearts of the consumers and has
sustained this positioning and brand image since ages. The
positioning strategies though have been changing with time but
the brand equity has flourished over the centuries. In different
times, the positioning strategies have been different. As in late

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Cadbury’s Dairy Milk

20th century, they positioned their product with the

benefit of providing energy. With the passage of time, in early
1990’s they positioned their product with pleasure, joy and a
state of ecstasy.

Later in late 1990’s the positioning strategy changed and they

started positioning their product with an element of happiness
and excitement. In all Indian ads, the crux is to position
Cadbury’s dairy milk with excitement

and joy and to bring out the child factor in someone. In the recent
ad campaign, they have positioned Cadbury’s Dairy Milk with the
factor of joy. Later in IMC strategies, we will discuss the
positioning of Cadbury’s Dairy Milk with joy.

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INTEGRATED MARKETING

COMMUNICATION
(PROMOTION)

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Cadbury’s Dairy Milk

OF

CADBURY’S DAIRY MILK

Advertisement
Advertising has a surprising number of unwritten rules and
conventions for an industry that prides itself on its left-field, out-
of-the-box, blue-sky thinking. Cars must be shown speeding
round hairpin bends. Hair care commercials are apparently
obliged to feature a dodgy science sequence and there seems to
be some law which says that banks have to be youthful, honest
and in touch.
Advertisement is thought to be the most powerful tool of
Integrated Marketing Communication mix. It has been used by
the companies since ages. But due to the transformation of
markets and more learning of the target audience, now relying
only on advertisement is not sufficient for the companies. So it
has become a very important aspect for the companies to use a
blend of different marketing promotional tools to promote the
products.

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Cadbury’s Dairy Milk

But chocolate advertising has long been blessed with a choice of

clichés. It can either make us drool in anticipation of its ineffable
deliciousness or inspire us with the sight of happy people using
the product to enhance their happy lives.

TELEVISION COMMERCIALS:
Among different tools of advertisement, TV commercials are of
most priority. Cadbury’s dairy milk is relying mainly on TV
commercials to promote their products. It might be a reason that
Cadbury’s dairy milk is

not effectively using other tools because they are the pioneers
and market leaders in dairy milk chocolate products. Still there
exists a need to explore new markets by coming up with an IMC
program. Cadbury’s dairy milk has recently launched a TV
commercial in August 2007. This commercial yet does not show
chocolate; it doesn't show people eating chocolate; throughout its
full 90 seconds, it doesn't mention the C word once. The film
opens with a title, "A Glass and a Half Full Productions presents".
Then we hear the opening bars of the Phil Collins hit "In the Air
Tonight". The camera pulls back slowly to reveal that the new
face of Cadbury Dairy Milk is in fact a gorilla. The effect is spooky
and primal. As the big drum break starts, the camera pulls further
back to reveal that the gorilla is hammering an enormous drum
kit in a karaoke-style bang along.

It's such a pompous piece of music and the thrashing of the

gorilla is so self-absorbed that the effect is hilarious. It's short-

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form comedy just like one of those funny clips you see
on You Tube. But it seems to have precious little to do with
chocolate.

But there is a product message in there too. In fact, the entire

commercial is a product metaphor. "Chocolate is about joy and
pleasure. For years Cadbury has told us that it was generous,
through the glass and a half strap line. We thought, don't tell us
how generous you are; show us. Don't tell us about joy; show us
joy."

BILLBOARDS:
Billboards are definitely an effective and easiest way to capture
and grab the attention of the consumers. Cadbury so far hasn’t
displayed any billboards in the city.

RECOMMENDATIONS:
Cadbury should display their billboards in most of the major
locations of Lahore like Gulberg, Model Town.

MAGAZINES:
Advertisements have been seen on various magazines, but major
focus has been the kid’s magazines.

RECOMMENDATIONS:

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In addition to posting the ad’s in the kid’s magazines

they should also post their ads on other weekly magazines in
order to capture the bigger market awareness.

POSTERS:

Cadbury has displayed various posters in many of the small as

well as large departmental and confectionary stores in order to
create strong brand awareness. And since the product they sell is
of the confectionary category, most of their Cadbury milk
chocolate posters focus on the quality, color and texture of the
chocolate to emphasize the quality and mouth watering taste of
real milk chocolate.

RECOMMENDATIONS:

Cadbury should also display their posters in the cafes of different

colleges and universities in order to attract and to communicate
their message to the students.

Public Relations
According to Belch and Belch (2004), PR is the management
function which evaluates public attitudes, identifies
organizations’ polices and procedures from public perspective,
and executes a program of action and communication to earn
public understanding and reception. Public relations is building
good relations with the company’s various public by obtaining
favorable publicity, building up a good corporate image and
handling or heading off unfavorable rumors, stories or events .

RECOMMENDATIONS:

Since PR is the most efficient and cost effective way to reach out
for the customer and to create a favorable image of the company

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and brand in the minds of the consumers, it is

recommended that Cadbury should also emphasize on this
method. In fact they should go for the development of public
relations first and then move to the advertising.

Recommended IMC:

Cadbury’s dairy milk is only emphasizing on TV commercials yet

they must need other promotional tools as Sales Promotion, to
enhance their sales. Hence, they should look for the tools that are
less costly and are giving more benefits. The benefits include that
wide coverage and more solid impact on the minds of the
customers.
The following tools could be used to get an effective response
from the customers:

• Sales Promotion through Pamphlets.

• They could use banners but they had to locate them in
better locations.
• Internet marketing is also a good tool for promotion.

Sales Promotion through Pamphlets:

To give consumer, a better know how of the product, sales
promotion is an effective tool to use. Chocolate is considered as a
fun making element in our local market so in order to make
consumer more aware of the other benefits of the product, this
tool can effectively help out.

Internet Marketing:

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Cadbury’s Dairy Milk

They can use internet for their promotional usage.

Internet could be one of the best tools for promotion since
students and youth uses internet more frequently. They could
use the pop- up menus in different websites to make the
customers aware of their website.

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