Applied Business Studies Course Work Report by Firuzatun Nahar

8/2/2019 Applied Business Studies Course Work Report by Firuzatun Nahar

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Name: Firuzatun Nahar

School: Bangladesh School Muscat

Centre number: 97114

Candidate number: 0250

Course: GCE Applied Business

Unit title: Investigating marketing

Unit number: 3

Investigating marketing for: Cadbury Dairy Milk


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Table of contents: Page Number

1. Acknowledgement. I

2. Summary. II

3. Company profile of Cadbury. 1

4. Product profile of Cadbury. 2

5. Objectives and market segmentation of Cadbury Dairy Milk. 3

6. Market research on Cadbury Dairy Milk: 4

i. Sources of data collection for the market research. 4ii. Research approach. 4

iii. Data collection and sampling method. 4

iv. Analysis of survey. 5-19

7. Devising of marketing mix: 20

i. 1st

P: Product. 20-21

ii. 2nd

P: Price. 21

iii. 3rd

P: Place. 22

iv. 4th P: Promotion. 23-24

8. Justification of the product: 25

i. SWOT analysis. 25

ii. PEST analysis. 26-27

9. Conclusion. 28

13. Appendix. 29-31

14. Bibliography. 32


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ACKNOWLEDGEMENT

It was an educational and fun experience. I learned a lot about Cadbury,

the company that works hard to provide us with chocolate: the most

enjoyable food available on earth.

First of all Id like to thank my family, especially my parents, who have

been very cooperative. It was because of their patience and help that I

actually finished the coursework on time.

Id also like to thank our school principal, Mrs. Syeda Nasrin Akhter for her

cooperation in letting us do the coursework.

Id also like to thank Edexcel for giving me the opportunity to do this

coursework.

Id like to thank Mrs. Preeti Nihalani, my subject teacher, for patiently

guiding me through the course. And also for making this a fun experience.

And last but not the least; Id like to thank my friends for sharing their

experience and knowledge. It was because of their help and guidance that I

got to learn new things. It was because of their company that this

coursework was a fun and memorable experience.

Signature

Firuzatun Nahar


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I

SUMMARY

As a student of the subject applied business, I chose to do a coursework on

the company Cadbury and its product, Cadbury Dairy Milk. Before I start

with the coursework Id like to introduce the company and the product

which my coursework is about.

Cadbury is a very well known firm for confectionery products. It operates in

more than 50 countries worldwide. Its product, Cadbury Dairy Milk, is the

most well known chocolate around the world. It generates the most revenue

in the chocolate market. It has a reputation for being Cadburys most

consumer loyal product. For this coursework Ive selected Cadbury Dairy

Milk as my research product.

PROJECT TITLE: Consumer Buying Behaviour for Cadbury Dairy Milk.

This coursework includes:

1.An analysis of the factors that consumers take into consideration beforebuying chocolates.

2.An analysis of consumer reaction towards Cadbury Dairy Milk based ongender and age group.

3.An analysis of Cadbury Dairy Milks marketing mix.4.An analysis of the strength, weaknesses, opportunities and threats facedby Cadbury Dairy Milk.

5.An analysis of the political, economical, social and technological factors

that Cadbury takes into consideration while marketing Cadbury Dairy Milk.


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II

Company Profile

Business sector: Confectionery sector.

Year of establishment: 1824.

Founder: John Cadbury and his brother, Benjamin Cadbury.

John Cadbury

Benjamin Cadbury

Headquarters: Uxbridge, London, United Kingdom.

Operations: Cadbury operates in about more than 50 countries.

Employees: Approximately 72,000.

Mission statement: A mission statement states the purposes and primary objectives of

the business. This is Cadburys mission statement: Cadburys means quality: this is our


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promise. Our reputation is built upon quality: Our commitment to continuous

improvement will ensure that our promise is delivered.

1

Product Profile

BARS CAKES AND

BISCUITS

DRINKS ICE-CREAMS

AND DESSERTS

OTHERS

FREDDO DIGESTIVEBISCUITS

HIGHLIGHTS DAIRY MILKSTICK

TWIRL BITES

CURLYWURLY

MINI ROLL BITES HOTCHOCOLATEINSTANT

CRUNCHIE BLASTSTICK

HEROES

BRUNCH FLAKECELEBRATION

CAKE

BOURNVILLECOCOA

DREAM STICK CHOCOLATEECLAIRS

SNACK MINI ROLLS DRINKINGCHOCOLATE

WISPA BAR DAIRY MILKCARAMELNIBBLES

FUDGE FINGERS WISPA CUP CLUSTERS

PICNIC CARAMEL CAKEBARS

DAIRY MILKFRUIT AND NUTSTICK

MILK TRAY

STARBAR HALF COATEDMINI ANIMALBISCUITS

HEAVENLYVANILLA CUP

BUTTONS

TIMEOUT CRUNCHIE CUP CRUNCHIEROCKS

DREAM DAIRY MILKCARAMEL CONE

KOKO

FLAKE FLAKE 99 CONE ROSES

BOOST CHOCOLATETRIFLE

DAIRY MILKTASTERS

DOUBLEDECKER

CHOCOLATEMOUSSE

BOURNVILLE TWIN POTS FLAKE

CHOMP

DAIRY MILK

DAIRY MILKBLISS

WISPA

CRUNCHIE


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2

OBJECTIVES AND MARKET SEGMENTATION OF

CADBURY DAIRY MILK

Selection of product: Cadbury Dairy Milk is a worldwide brand of chocolate of United

Kingdom which makes and sells its products to foreign countries like India, Australia,

and Italy, Canada and France and many other countries. The Dairy Milk brand alone

accounts for approximately 33% of Cadburys total chocolate blocks (moulded) and bars

sales, making it the number one confectionery brand in the market.

From the above product range Ive chosen Cadbury Dairy Milk for my project. In 2003,

Cadbury made Dairy Milk into a super brand, bringing a number of different products

under the name Cadbury Dairy Milk; for exampleCadbury Dairy Milk Fruits and Nuts.

Marketing Objectives for Cadbury Dairy Milk: Marketing objectives are goals that a

firm tries to achieve through its marketing activities. Cadbury Dairy Milk has a customer

driven strategy, it targets only those markets which are profitable. Of all the successful

Cadbury brands, the brand with the most customer loyalty is Cadbury Dairy Milk. In

2002, Cadbury made a strategic decision to leverage the value of the Dairy Milk brand by

elevating it to a range brand. The Cadbury Dairy Milk has been stretched to become a

family brand in its own rights.

Target Market for Dairy Milk: Target market includes a specific group of consumers

whom businesses aim at for selling their products. The target market for Cadbury Dairy

Milk is children, and women of 21-29 years of age.

Market Segmentation: Market segmentation is the division of consumers into groups

based on similar characteristics shared by the consumers. Cadbury Dairy Milk is mass

marketed, but the various products that come under Dairy Milk are segmented by age and

lifestyle.


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3

MARKET RESEACH ON CADBURY DAIRY MILK

Market research can be defined as the collection, collation and analysis of data that is

related to the marketing and consumption of the product.

Sources of data collection for the market research: Data for market research can be

collected using two methods. Primary research method is when the data is collected for

the first time by a researcher. The information gathered is first hand. Secondary research

is when the researcher makes use of data that has already been collected before. The

information gathered is second hand.

Primary research is done through using methods like questionnaire, personal interviews

and observations. Secondary research uses information from existing market researchreports, sales figures, government publications and information from the European

Union.

Research approach: For this course work I have used primary research. I gave out

questionnaires to consumers of Cadbury Dairy Milk. A questionnaire includes a series of

questions designed to find out the views and opinions of respondents.

Data collection and sampling method:Ive collected data for my research from 5

different age groups of both genders. I interviewed 40 people of which 20 were male and

20 were female.


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4

ANALYSIS OF THE SURVEY

Figure 1.1

Figure 1.1 shows the number of people that like Cadbury Dairy Milk. This data is based

on the age of the respondents. Teenagers and consumers above 45 years of age all like

Dairy Milk. Some children and young adults dont like Dairy Milk. When asked why

they dont like Dairy Milk, they replied that they simply werent a big fan of chocolate.

Figure 1.2

0

2

4

6

8

10

12

14

08 - 12 13 - 19 20 - 29 30 - 45 45+

Age Group

Do you like Cadbury Dairy Milk?

Yes

No

0 2 4 6 8 10 12 14 16 18

Female

Male

Female Male

No 4 2

Yes 16 18



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5

Figure 1.2 shows the number of people that like Cadbury Dairy Milk based on gender.

Men seem to prefer Dairy Milk more than women. The reason for this was that men were

not as specific about chocolate as women. The female respondents that didnt like

Cadbury Dairy Milk preferred expensive chocolate because according to them highprice represents high standard. The other people simply didnt like chocolate.

Figure 2.1

Figure 2.1 shows how frequently people by Cadbury Dairy Milk. Most people purchase

Dairy Milk on a weekly basis. Quite a few purchase it occasionally, mostly as presents.

6

0

1

2

3

4

5

6

7

8

9

08 - 12 13 - 19 20 - 29 30 - 45 45+

Age Group

How frequently do you buy Cadbury Dairy Milk?

Ocassionally

Monthly

Weekly

Daily


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Figure 2.2

Figure 2.2 shows how frequently consumers purchase Dairy Milk. This data is based on

the respondents gender.

Figure 3.1

0 1 2 3 4 5 6 7 8 9 10 11 12 13

Female

Male

Female Male

Daily 1 2

Weekly 8 12

Monthly 5 2

Occassionally 6 4


0

1

23

4

5

6

7

8

9

08 - 12 13 - 19 20 - 29 30 - 45 45+

Age Group

Where do you usually buy Cadbury Dairy Milk from?

Supermarkets

Local shops

Service stationsGrocery stores

Other


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7

Figure 3.1 shows where Cadbury Dairy Milk is usually purchased from. This data is

based on age of the respondents. Most people purchase Cadbury Dairy Milk from

supermarkets. Other people buy from local shops, and very few from service stations.

Nobody buys Dairy Milk from grocery stores.

Figure 3.2

Figure 3.2 represents where consumers usually buy Dairy Milk from. This data is based

on gender. Only male respondents buy Dairy Milk from service stations. Most female

consumers go to supermarkets for purchasing Dairy Milk.

0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19

Female

Male

Female Male

Other 0 0

Grocery stores 0 0

Service stations 0 3

Local shops 2 7

Super markets 18 10



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8

Figure 4.1

Figure 4.1 represents the reasons why people from each age group purchase Dairy Milk.

Most people purchase Dairy Milk to satisfy their desire for chocolate, some buy it for

celebrations. Some teenagers and adults purchase Dairy Milk because they find it healthy.

Those who purchase Dairy Milk for its attractive packaging find it suitable for gifts.

0

1

2

3

4

5

6

7

08 - 12 13 - 19 20 - 29 30 - 45 45+Age Group

Reason for purchasing Cadbury Dairy Milk

To indulge a craving

For a special occasion

For health andnutritional value

Attractive packaging

Other


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9

Figure 4.2

Figure 4.2 is a representation of the reasons why people buy Cadbury Dairy Milk. Thisdata is based on the gender of the respondents. A distinctive number of male consumers

purchase Dairy Milk for satisfying their desire for chocolate. A high number of female

consumers purchase Dairy Milk for special occasions and as presents.

0 1 2 3 4 5 6 7 8 9 10 11 12

Female

Male

Female Male

Other 3 0Attractive packaging 2 1

For health and nutritionalvalue

2 4

For a special occasion 8 4

To indulge a craving 5 11

Reason for purchasing Cadbury Dairy Milk


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10

Figure 5.1

Figure 5.1 shows what size of Cadbury Dairy Milk is usually purchased. Adults who

purchase Dairy Milk in family pack usually purchase them for their children. Teenagers

dont share their chocolate bar when they purchase it in family size; they want it all for

themselves! Children share their family sized chocolate bars with their siblings.

Figure 5.2

Figure 5.2 is a depiction of what pack size consumers purchase based on their gender.

0

2

4

6

8

10

08 - 12 13 - 19 20 - 29 30 - 45 45+Age Group

In which pack size do you usually purchase Cadbury

Dairy Milk?

Small

Family

0 1 2 3 4 5 6 7 8 9 10 11 12 13 14

Female

Male

Female Male

Family 8 7

Small 12 13

In which pack size do you usually purchase Cadbury

Dairy Milk?


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11

Figure 6.1

Figure 6.1 represents what type of chocolate consumers prefer. Although most prefer

milk chocolate, dark chocolate and flavored chocolate are also preferred by some.

Figure 6.2

Figure 6.2 shows that 5 out of 7 people who prefer dark chocolate are female. White

chocolate is preferred by male only.

012345678

08 - 12 13 - 19 20 - 29 30 - 45 45+

Age Group

What type of chocolate do you prefer?

Dark chocolate

Milk chocolate

White chocolate

Flavored chocolate

Other

0 1 2 3 4 5 6 7 8 9 10 11 12 13

Female

Male

Female Male

Other 0 0

Flavored chocolate 3 4

White chocolate 0 2

Milk chocolate 12 12

Dark chocolate 5 2

Which type of chocolate do you prefer?


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12

Figure 7.1

Figure 7.1 shows that fruits and nuts, and caramel are the most favored fillings for

chocolate. Quite a few people are fond of cream filling. Most teenagers and children

prefer caramel. Adults prefer fruits and nuts.

0

1

2

3

4

5

6

08 - 12 13 - 19 20 - 29 30 - 45 45+

Age Group

What type of fillings do you prefer in chocolate?

Fruits and nuts

Caramel

Coconut

Cream

Other


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13

Figure 7.2

Figure 7.2 shows that most female prefer fruits and nuts as fillings whereas most male

prefer either fruits and nuts or caramel. Cream is preferred mostly by men.

Figure 8.1

0 1 2 3 4 5 6 7 8

Female

Male

Female Male

Other 2 2

Cream 3 6

Coconut 2 2

Caramel 6 5

Fruits and nuts 7 5


01234

56789

08 - 12 13 - 19 20 - 29 30 - 45 45+

Age Group

Which shape would you prefer for a chocolate bar?

Rounded ends

Triangular

Rectangular

Fingers

Other


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14

Figure 8.1 shows that rectangular shaped bars are preferred by most people from every

age group. Chocolate bars with rounded ends and in the shape of fingers are favored as

well.

Figure 8.2

Figure 8.2 shows rectangular shaped bars are liked by both genders. When it comes to

bars shaped with rounded ends female prefer it more than male. And male prefer finger

shaped chocolate bars more than female.

0 1 2 3 4 5 6 7 8 9 10 11 12

Female

Male

Female Male

Other 2 1

Fingers 2 5

Rectangular 11 10Triangular 1 2

Rounded ends 4 2



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15

Figure 9.1

Figure 9.1 shows people usually purchase Nestle Kit-Kat. So we can consider Nestle as

Cadburys biggest competitor. Hersheys and Ferrero Rocher are also quite popular.

Figure 9.2

0

2

4

6

8

10

08 - 12 13 - 19 20 - 29 30 - 45 45+

Age Group

Which other brands of chocolate do you usually

purchase?

Toblerone

Nestle Kit-kat

Hershey's

Ferrero Rocher

Other

0 1 2 3 4 5 6 7 8 9 10 11 12 13

Female

Male

Female Male

Other 1 2

Ferrero Rocher 3 3

Hershey's 2 2

Nestle Kit-Kat 12 8

Toblerone 2 5

Which other brands of chocolate do you usually purchase?


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16

Figure 9.2 shows what brand of chocolate is preferred based on age. Male prefer

Toblerone more than female.

Figure 10.1

Figure 10.1shows 6 people didnt like the packaging of Dairy Milk. According to them

it wasnt artistic enough. Everyone else seemed to think that Cadbury Dairy Milk had a

very attractive and presentable packaging.

Figure 10.2

0

24

6

8

10

12

08 - 12 13 - 19 20 - 29 30 - 45 45+

Age Group

Do you like the packaging of Cadbury Dairy Milk?

Yes

No

0 2 4 6 8 10 12 14 16 18 20

Female

Male

Female Male

No 4 2

Yes 16 18



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17

Figure 10.2 shows that fewer female consumers than male consumers like the packaging

of Cadbury Dairy Milk.

Figure 11.1

Figure 11.1 shows people from all age group prefer bright and shiny packaging. Only

12.5% of the respondents preferred packaging with drawings and symbols.

0

1

2

3

4

5

08 - 12 13 - 19 20 - 29 30 - 45 45+

Age Group

What kind of packaging would you prefer for

chocolate?

Single colored

Multi coloured

Drawings andsymbols

Bright and shiny


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18

Figure 11.2

Figure 11.2 represents what kind of packaging consumers prefer based on their gender.

Most female consumers prefer bright and shiny packaging and most male consumers

prefer multi coloured packaging.

0 2 4 6 8 10

Female

Male

Female Male

Bright and shiny 9 5Drawings and symbols 3 2

Multi coloured 3 7

Single coloured 5 6

What kind of packaging would you prefer for chocolate?


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DEVISING OF MARKETING MIX

Marketing Mix: The marketing mix, also known as the 4Ps (product, price, place,

promotion), are elements of marketing that are used by the firm to influence consumerspurchasing decisions.

(1st P) Product: Product is the most important element of the marketing mix. Itrefers to the good or service provided by the business. Cadbury Dairy Milk is one

of the most famous chocolate brand names around the world.

Product name: Cadbury Dairy Milk About the product: Dairy Milk is a very well-known product; it is the product

with the most customer loyalty among all other well-known Cadbury products. It

was introduced into the market in the early 1900s. The recipe used for Dairy Milkis very old, and the same recipe has been in use since it was first discovered.

Use of the product: Cadbury Dairy Milk is a snack, a chocolate bar with a uniquecreamy taste and a deliciously smooth texture. It can be eaten as a snack. It also

comes in different sizes, which makes it suitable for a gift. It can be used for

special occasions.

Appearance of the product: Cadbury Dairy Milk has an innovative design. TheCadbury script is recognized worldwide and is associated with quality. As an

international brand, it carries the same distinctive image all over the world. The

packaging of Cadbury Dairy Milk is the same everywhere, only the language used

on the packaging is different for different countries.

The product life cycle: The product life cycle refers to the phases which manyproducts go through between their first introduction to the market and the

eventual decline in sales. A business must decide whether to allow the product to

decline and cease its productions or to revive it in some way. Cadburys Dairy

Milk has been very fortunate in being able to remain in the maturity stage of the

product life cycle, thus it has been able to keep sales at a constant level over aperiod of time.

o 1st Stage - Introductory stage: In the early 1900s, Cadbury Dairy Milk was at theintroductory stage of its product life cycle. The introductory stage is that part of

the product life cycle when the product is introduced into the market and at this

point consumers are made aware of the existence of the product. A considerable


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amount of time and money was spent on research into new recipes and production

methods and the company invested in a new plant to make the product.

20

o 2nd Stage - Growth and development: During this phase the product should beestablishing itself in the market, sales and profits should be increasing and the

initial investments should be paid for. If there is still little competition, profitscould be at their highest. Following the introduction of Cadbury Dairy Milk therewas tremendous growth in the milk chocolate market. There was continuedinvestment in the plant to continue to make the popular brand of chocolate.

o 3rd Stage - Maturity: This stage is characterised by an increase in competition,which could lead to increased costs because of the extra cost of advertising andpromotion. Sales of the product are still increasing but at a decreasing rate. Pricecuts, special offers and discounts may be given in an attempt to increase sales.Cadburys Dairy Milk has reached this stage of the product life cycle and hasmanaged to remain at this stage with sale promotion techniques, such as theirspecial offers and discounts.

o 4th Stage - Decline: This stage is characterised by declining sales and low profits.Even price cuts and advertising are not enough to tempt the consumer into

purchasing. The business may attempt to re-launch the product in a different form.

Cadbury has been very successful in not allowing Dairy Milk to fall into this stage

of the product life cycle.

(2nd P) Price: Price refers to the amount charged for a product or a serviceprovided by the business. Cadbury Dairy Milk is appropriately priced, which is

one of the reasons why it is such a well known product.

Price of Cadbury Dairy Milk in different countries: Cadbury sells its products tomany countries, of all its products, Dairy Milk is the most well known. A 100g

bar of Dairy Milk costs around 56p in U.K., and about $4.38 in the U.S. A bar of

140g Dairy Milk costs 40Rs in India. A 200g Dairy Milk costs about $8.95 in

Australia.

Pricing strategies used by Cadbury Dairy Milk: A business has to decide how toprice a product or service, there are number of different strategies that businessescan use. Cadbury has used the following two pricing strategies for Dairy Milk.

oPenetration pricing: Penetration pricing strategy is a method used in order toattract consumers to new products. Prices are set very low to let the company

achieve entrance in the market. Cadbury Dairy Milk was the first product of its

kind so, when it was first launched, it used penetration pricing.

o Competitive pricing: Competitive pricing strategy is used when price is kept inline or below the price line of competitors. Presently, Dairy Milk uses competitive


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pricing strategy. A bar of Cadbury Dairy Milk costs similar to other competing

brands like Nestle Kit-Kat.

21

(3rd P) Place: Place refers to distribution. It covers the activities that a businesshas to go through so that the products reach the final consumers in the right place

and at the right time. The choices of transport, warehousing and stock control are

all necessary ingredients of a successful marketing strategy. However good the

product is a business has to deliver its goods on time. Decisions regarding

distribution channels through which the product will be distributed will have to be

made effectively.

Distribution channel used for Cadbury Dairy Milk: The distribution channel refersto the route the product has to go through in order to reach the final consumer.

Cadbury Dairy Milk is produced at the chocolate factory in Bourneville,

Birmingham. After the chocolate has been produced and has gone through theprocess of quality check, it is sold to shops and various retail outlets worldwide.

Cadbury uses the 2nd level of distribution channel in order to reach its final

consumers. This is depicted in the following figure:

PRODUCER WHOLESALER RETAILER CONSUMERS

Retailers of Cadbury Dairy Milk: Dairy milk has a wide range of retailers, whichsell the product. Retailers have a major role to play in the distribution of most

products, like Dairy Milk. This is because they have the power to reach huge

number of consumers, in different markets over a huge area.o Grocery stores and Confectioners, Tobacconists and Newsagents (CTN): Over the

past decade, the grocery trade has become a crucial retailing type as well as the

conventional Confectioners, Tobacconists and Newsagents (CTN) which have

always played an important aspect of the confectionary market. Purchasing

in CTN tends to be impulse buying. Whereas in other stores such as grocery

stores shopping tends to be in bulk packs designed to last longer. This leads to the

development of multipack, such as treat size and snack size Dairy Milk bars,

aimed at the housewives.

o Supermarkets: Supermarkets have the advantage in that they are able to sell DairyMilk in multi-packs and able to offer special discount. At checkout tills there arethe usually Dairy Milk to encourage impulse buying. Also there is a growingtrend of consumers making their purchases in the foyer of the supermarket ratherthan going to the main part of the store.

o Service stations: Many snacks are sold at service stations. Those who travel longdistances, or those who have the impulse to buy a convenient snack at a car washor a petrol station, can purchase Cadbury Dairy Milk.


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o Local shops: Availability at local stores is very convenient for small children, andaged people who dont like to travel very far away from home. They can easily

walk to their local store and purchase a bar of Cadbury Dairy Milk.

22

(4

th

P) Promotion: Promotion refers to those marketing activities that aredesigned to raise consumer awareness of the product, to attract customers and to

persuade customers to buy the products. The purpose of promotion is to

communicate directly with potential and actual consumers. A large amount of

money is spent in promoting Dairy Milk.

Branding: A brand is a sign, symbol or a design used to distinguish a product or abusiness from its competitors. Creating a successful brand can help boost salesand profits by encouraging customers to make repeat purchases. The originalslogan, 'glass and a half of full cream milk in every half-pound', was introduced in1928 to show the bars were better than those of their rivals.The decision to alterthe words to metric was taken in 2007; the wrapper does not display the sloganany longer. It has been replaced by The equivalent of 426ml of fresh liquid milkin every 227g of milk chocolate. The brand value of Cadbury stands at 360million in the U.K. Cadbury has been very successful in obtaining a brand name.Benefits of a consistent company logo can be summed up as:

o Memorable and distinctiveness.o Assurance and quality.o An established and consistence house logo helps significantly to persuade

customers to sample a new line.This was all part of the branding process that Cadbury undertook in order tocreate a well known brand name. It has been very successful in doing so, that ithas also created an international image.

Advertising: Advertising is a method used by producers to communicate directlywith the potential consumers or the target market. Advertising is very important inletting customers know about a product. The choice of advertising media is veryimportant. It is vital that Cadbury decides on the right media when advertising, sothat they reach their target audience and perhaps more. Also advertising for alarge company is expensive, so the company must be vigilant when deciding onthe advertising media in order to not waste money. The following methods ofadvertisement are used for Cadbury Dairy Milk.

o TelevisionCadbury is a large company that can afford to advertise ontelevision. Cadbury Dairy Milk television advertisements have a uniqueness about

them that makes them appealing.Some very famous TV advertisements of Cadbury Dairy Milk include theGorilla advert which premiered in 2007, immediately becoming one of the mostpopular and critically acclaimed TV ads of recent years. In June 2008, CadburyDairy Milks Gorilla was named the worlds best ad at the prestigious CannesLions International Adverting Award.


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The follow-up to the acclaimed 'Gorilla' advert was another T.V advertisementfeaturing a bizarre midnight race down an airport runway involving a host ofvehicles including baggage transporters and motorized stairs.Dairy Milk came up with a new TV ad in 2009 featuring two children performingbizarre "eyebrow dance moves" to a soundtrack.

23o PostersIt may also encourage impulse buying through locations close to shops.

It is often seen that Cadbury uses this method in order to increase impulse buyingof consumers. Posters may all be seen repeatedly. It is a good way for shortmessages to be relayed to the target market. Cadbury advertised for Dairy Milk in1950s using posters mainly.

o InternetCadbury has taken advantage of advertising here. It has a site forconsumers who want to know more about the products. Cadbury website includesinformation about its products, its history, and any offers and discounts. Cadburyhas different websites for the countries it operates in.

Other promotion methods used by Cadbury:o Public relation: Public relations are activities carried out by the business with the

intention of improving the companys image in the eyes of consumers and other

interest groups. Cadbury has formed good relations with the local community inthe form of Cadbury World. It also supports a number of charities. Publicrelations is needed when promoting Dairy Milk

o Trade Promotion: The usages of point-of-sale displays are a major contribution toCadbury Dairy Milks sales. For a relatively low cost, the product is brought right

to the attention of the targeted consumers.o Product presentation: There are several important factors to be taken into account

in designing and developing the presentation for Cadbury Dairy Milk. CadburyDairy Milk is renowned for quality, a status that must be maintained. The qualityof the confectionary is determined by two factors; the appearance of the productbefore purchase, and the taste.

o Packaging: The key features of qualities of good packaging are as follows:i. Instant recognition through colour, shape, design and brand visibility Cadbury

Dairy Milk is recognised by the Cadbury script writing and the colour purple,which is associated with it.

ii. AttractiveDairy Milk is an appealing product. This will help Cadbury to sellproducts as people will be more attracted to it.

iii. Eye catchingThe purple packaging is very attractive; however it is not as eyecatching as Kit-Kat which is bright red.

iv. Persuasive with clear texts and visualsThe title of Dairy Milk is written in aclear and understandable text. The text is large and can easily be read and seen.

v. Protecting the product from damage and transitCadbury products areprotected, so that they are not damaged in transit or in storage. The packaging ofDairy Milk has improved over the years.

vi. Functional and easy to openThe product, Cadbury Dairy Milk now has amore easy to open packaging style.


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JUSTIFICATION OF CADBURY DAIRY MILK

SWOT Analysis: SWOT analysis is a tool that identifies the strengths of a product, itsweaknesses, the opportunities for a product and the threats faced by a product.SSTRENGTH.WWEAKNESS.OOPPORTUNITIES.TTHREATS.

Strengths of Cadbury Dairy Milk: Cadbury Dairy Milk has a lot of customer loyalty. It is sold in many countries; it operates in a large market. It has a unique design that differentiates it from competitor products, it is a

distinctive brand.

It has its own distribution centres and is made easily available to consumers. Cadbury has a loyal and well motivated staff. Cadbury Dairy Milk is available in different sizes and varieties. The product has well defined objectives and aims.

Weaknesses of Cadbury Dairy Milk: The product has no unique selling point that makes it distinctive from

competitor products of the same kind.

Cadbury Dairy Milk has to come up with vending machines for its products,like Nestle.

Its packaging is not as eye catching as that of its competitor product, NestleKit-Kat.

Opportunities for Cadbury Dairy Milk: Since Cadbury Dairy Milk is an established product it can be revived with new

packaging and promotional expenditure. Healthy eating products are yet to be fully exploited. Increase in globalization has lead to the development of new markets. Cadbury Dairy Milk is a family brand, so new products can be introduced

under this brand. Also, new features and flavours can be added to the existingproducts under this brand.


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Threats faced by Cadbury Dairy Milk: There are a lot of well known and global competitors in the confectionery

market.

Health lobbies encourage consumers to reduce their confectioneryconsumption.

Cadbury Dairy Milk is on the verge of declining in sales. Growing competition from supermarkets own brands.

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PEST Analysis: It includes political, economical, social and technological changes thatcould affect the business or the product.P - PoliticalE - EconomicalS - SocialTTechnological

Political factors that affect Cadbury Dairy Milk: A shift in political thinkingassociated with a change in government might have a major effect on a businessorganisation.

A change in the government will affect rules and regulations that businesseswill have to follow.

The government might decide to increase taxation which could mean adecrease in profits for Cadbury which would decrease the capital available forinvestment in new ideas for Dairy Milk. And also, the amount of value addedtax (VAT) on Cadbury Dairy Milk will increase, thereby increasing the price ofthe product.

The European Union (EU) might decide to make changes in the distributionpattern of chocolate bars.

New legislations might require a change in the recipe for the product. The U.K. government might decide to set an embargo on some country. This

will mean that Cadbury Dairy Milk cannot be sold to that country.

Economical factors that affect Cadbury Dairy Milk: An economy goesthrough periods of increased economic activity known as booms, followed byperiods of economic decline known as recessions. Various economical factorsshould be taken into consideration while making decisions regarding themarketing of Cadbury Dairy Milk.

An increase in interest rates would encourage saving and discourage spending.Therefore there will be no innovation or investment on development of

Cadbury Dairy Milk. And it could also mean falling sales as consumers willalso be more into saving and will therefore limit purchases to basic necessities.A decrease in interest rates would have the opposite effect.

There are daily fluctuations in the exchange rate. These fluctuations, alsoknown as appreciations and depreciations in exchange rate, will determine howmuch of the product can be exported and what quantity of raw materials can beimported.


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At times of boom, the economy is developing at a fast rate. Consumers willdemand more and better products so Cadbury Dairy Milk will have theopportunity to introduce new products under its brand, and it will also havehigh sales during this period.

At times of recession consumers will be unwilling to spend money on anythingother than necessities. Cadbury Dairy Milk will experience falling sales.

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Inflation is a sustained general rise in price. Cadbury Dairy Milk is affordable.However, if the price of Cadbury increases due to inflation, it will most likelyexperience falling sales.

Unemployment occurs during periods of recession. When there isunemployment in the economy, people start to lose their jobs and there willtherefore be a decrease in demand for products that are not a necessity.Cadbury Dairy Milk might experience falling demand during periods of high

unemployment in the economy.

Social factors that affect Cadbury Dairy Milk: Changes in society can haveconsequences for marketing plans. Social factors take into consideration thechange in demography, cultural values and trends in the society where theproducts are sold.

If more people start dieting, it will decrease sales and popularity of theconfectionary market and Cadbury Dairy Milk might have to come up with aless calorie product idea.

Cadbury Dairy Milk is sold mainly to young women and children. If there is adecrease in the population belonging to that criteria, Dairy Milk will lose its

target market. If environmentalist groups start raising awareness green packaging design for

products, Cadbury might have to change its packaging in order to follow thetrend.

There might be a warning issued against the consumption of an ingredient inDairy Milk, which means that alterations might have to be made to the recipe.

Giving chocolates as presents might start to be an increasing trend. This wouldgive Cadbury the opportunity to change the packaging style and sizes availablefor Dairy Milk.

At times of Halloween and Easter, Cadbury Dairy Milk might experienceincreasing sales. During Easter, Cadbury Dairy Milk could sell egg-shaped

bars.

Technological factors that affect Cadbury Dairy Milk: Businesses now operatein a world of a rapid technological change. Changes in technology can affectmarketing plans in a variety of ways.

Production methods might become less costly due to improvement intechnology.


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Increase in capital intensive methods of producing Dairy Milk would meanmaking workers redundant. The community would be against this.

Improving the technology used for research and development and productionwill require a huge amount of capital.

Advancements in technology could lead to improvement in advertising media.It could mean that a larger number of target markets can be reached, or it couldalso mean adding special features to T.V. advertisements, like a 3D effect, forexample.

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CONCLUSION

On doing this coursework I came to know a lot about Cadbury, and its bestselling product

Cadbury Dairy Milk. Its main competitors are Toblerone, Nestle and Galaxy.

Cadbury is a well appreciated brand. Everyone likes the product. In fact some children

jump at hearing the word Cadbury. Dairy Milk has gained a very good reputation in the

chocolate market, not as a product of Cadbury, but as a product in its own right.

When asked whether they prefer Nestle Kit-Kat over Cadbury Dairy Milk, most people

replied with Cadbury. Others found it a little difficult to decide, as they are fond of

chocolate itself, the brand name does not matter to them.

Most teenage girls complained that Cadbury Dairy Milk was a little too plain and sweet.

They prefer Kit-Kats wafer. But teenage boys seemed to react differently; they preferred

Dairy Milks smooth texture to Kit-Kats wafers.

Women above 45 years of age preferred dark chocolate and a bright and shiny packaging.

But men of above 45 years of age preferred milk chocolate with multicolored packaging.

Most people buy Cadbury Dairy Milk because its easily available as a convenient snack

and for satisfying their desire for chocolate. Thats another reason why Dairy Milk is so

popular, its availability.


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APPENDIX

QUESTIONNAIRE FOR CADBURY DAIRY MILK

Name: ____________________

Gender:

Male Female

Age:

08-12 13-19 20-29 30-45 45+

Occupation:

Professional

Businessman

ServiceStudent

Housewife


Yes No


Occasionally

Monthly

Weekly

Daily


Super markets

Local shops

Service stations

Grocery stores


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Other

(If other please specify) ____________________

What would be your reasons for purchasing Cadbury Dairy Milk?

To indulge a craving

For a special occasionFor health and nutritional value

Attractive packaging

Other

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In which pack size do you usually purchase Cadbury Dairy Milk?

Small Family

Which type of chocolate do you prefer?

Dark chocolate

Milk chocolateWhite chocolate

Flavoured chocolate

Other



Fruits and nuts

Caramel

Coconut

CreamOther



Rounded ends

Triangular

Rectangular

Fingers

Other


Which of the following brands of chocolate do you usually purchase other than Cadbury

Dairy Milk?

Toblerone

Nestle Kit-Kat

Hersheys


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Ferrero Rocher

Other


Yes No

What kind of packaging would you prefer for chocolate?

Single coloured

Multi coloured

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Drawings and symbols

Bright and shiny

Other


THANK YOU FOR YOUR COOPERATION


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BIBLIOGRAPHY

www.cadbury.co.uk

Collins Applied Business - AS for AQA Student's Book

The Portable MBA in Marketing byCharles D. Schewe and Alexander Hiam


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Applied Business Studies Course Work Report by Firuzatun Nahar

Documents