Cadbury Marketing Case Study
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MARKETING
Choose a product and then critically analyse its market situation and positioning, using
relevant marketing concepts.
Product Selected: Cadbury Dairy Milk (CDM)
MARKETING Page 2
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 CDMs 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
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 todayshighly 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 Cadburys marketing varies
according to countries,this essay will limit its examination to Cadbury India Ltd. and will
critically analyze CDMs 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,CDMs 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