The marketing strategy of Cadbury has helped the brand create such a place in the hearts of Indian customers that the first thing that comes to our minds when someone says “chocolate” is “Cadbury”.
A certain class of Indians does not even say the word “chocolate”, they’d say “Would you like to have a Cadbury?” Such has been the influence of Cadbury on its consumers’ minds.
Let us start Cadbury’s marketing strategy and know a little more about Cadbury.
Did You Know About Cadbury?
Company : Cadbury
CEO: Manu Anand
Founder: John Cadbury
Year founded: 1824
Headquarters: Birmingham, United Kingdom
Annual Revenue (FY 2020): $ $7.24B
Profit | Net income (FY2020): $515M
Products & Services: Cadbury Dairy Milk, Dairy Milk Silk, Bournville, Temptations, Perk, Eclairs, Bournvita, Celebrations, Gems, Bubbaloo, Cadbury Dairy Milk Shots, Toblerone, Halls, Bilkul, Tang, and Oreo
Facts About Cadbury: Cadbury was the first company to use heart-shaped boxes. Cadbury was actually the first company to use them to showcase its chocolates. Founder John’s son, Richard, actually came up with the idea, and from 1861, Cadbury chocolates were sold for Valentine’s Day in heart-shaped boxes covered in cupids and roses.
Positioning, Targeting, Segmentation in the Marketing Strategy of Cadbury
This segment of Cadbury products is based on a mix of demographics and behavioral psychographic elements, like income and times. There are individuals across all age groups and demographics taking pleasure in Cadbury products. Cadbury’s offerings are largely dependent on the capacity of production as well as the cost of the various packaging styles, packaging and storage facilities available in the stores, periodic and situational requirements as well as endorsements from celebrities, and other aspects.
While Cadbury has targeted customers across all age groups, it has targeted its product products to a specific segment of consumers. For instance, Cadbury Temptations and Bourneville are aimed at higher-end customers who are willing to spend more on their chocolates. Likewise, Cadbury SILK is targeted at those who are addicted to chocolates. It’s positioning itself as an image of fun and good times, as well as an unpretentious product that is casually designed for special occasions and real moments in our lives.
Mission of Cadbury
” Cadbury refers to the quality and this is what we promise. Our name is built on the highest quality. Our commitment to constant improvement will assure that our promise is fulfilled”.
Vision of Cadbury
” Working together to create brands people love”
“Real Taste of Life”
Competitive Advantage in the Marketing Strategy of Cadbury
distribution along with branding credibility are two of the major advantages that are a major competitive advantage for Cadbury. Cadbury has made its products accessible from the moms and pop stores to departmental stores. This is possible because of its vast supply channel giving it an edge over its competitors.
The primary advantage of Cadbury is its ability to advertise its products by changing the concept and the function of the product continuously. In addition, the clever design of its promotions and communication to address the issues and inform customers about the confectionaries has helped the company in spreading the favorable word that resulted from negative publicity.
BCG Matrix in the Marketing Strategy of Cadbury
Certain product groups of Cadbury are regarded as stars, while others are cash cows.
chocolates are a hit since it has a huge selection of chocolates from all over the world and it is the second-largest confectionary company with a high percentage of the market across all markets.
Biscuits and cakes are the reason that is a question mark. The reason is that there aren’t many options in this category to select from, but the overall popularity of biscuits remains positive.
Beveragesbusiness is a question mark even though Cadbury’s Bournvita is extremely popular, their cold chocolates have a limited acceptance in the marketplace because of the presence of competitors such as GlaxoSmithKline, Heinz, and others. Cadbury is unable to take over the vast majority in the marketplace.
Ice-cream and desserts business is in question because the other players in the same market have good value for money products and that is at a lower cost. As in India Amul as the top player in this area is consuming the profits of competitors on the market.
Distribution Strategy in the Marketing Strategy of Cadbury
While Cadbury is not as extensively involved in FMCG however, they can provide the product in remote regions – Urban and rural areas, however, they are focusing much more heavily on Urban markets because of the market demand economy. The product is distributed through C&F wholesalers, then to retailers, and finally to the final buyer, which is a three-tier distribution method.
Brand equity in the Marketing Strategy of Cadbury
Cadbury is a brand that addresses the demands of every consumer from the age of a child to adulthood from impulse purchases to sweet treats for the family. Cadbury creates products that coincide with Easter, Christmas, Valentine’s, Mother’s and Father’s Day, and other calendar important dates. Cadbury employs marketing strategies like the “Choose Cadbury’ strategy to promote a link to chocolate during these celebrations and ensure that there is a Cadbury chocolate that is appropriate and suitable for any occasion. Its Marketing communications throughout the years along with the wonderful flavor and taste of Cadbury and its consistency have helped to create great branding equity for the brand.
Competitive analysis in the Marketing Strategy of Cadbury
The confectionery industry is extremely competitive and is overrun by national and local players. Although Cadbury’s parent firm Mondelez International has been the leading brand in bars and chocolates for the middle-income bracket, other companies such as Nestle, Ferrero Rocher, Perfect, Amul, Kraft Foods, and others. are categorized into customers groups that they specialize in. Because of the high rate of R& D and change in the chemical composition of milk, the changing the lifestyle that is affecting Asian markets and eating habits, and so on. This market will experience high growth in the coming years.
Market analysis in the Marketing Strategy of Cadbury
The market for confectionaries is expanding, and because of the increasing consumption of dairy and milk products and the increasing demand for dairy products, there are more opportunities to be found in this field. The market is dominated by a few companies like Cadbury, Nestle, Mars, Heinz, Perfetti van, etc. Cadbury offers a wide portfolio of products within the chocolate category such as dairy milk, Bournville, Cadbury crunch, Eclairs, etc. This is why they can dominate the market in this sector, however, their other product categories such as cakes and biscuits suffer because of their limited product range.
Customer Analysis in the Marketing Strategy of Cadbury
Cadbury’s customers Cadbury come from all categories and people of every generation consume biscuits, chocolates, and beverages, however, it is the middle-income segment that is growing, and the young make up the majority of the segment of consumers.