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)

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.

MARKETING

Page 2

Table of Contents

Page

1)Introduction

4

2)Product Profile

4

3)Market Situation Analysis 3.1)Market Segmentation 3.2)Target Market(s)

4 5 7

4)Positioning Analysis 4.1)Perceptual Mapping 4.2)Marketing Mix

9 10 10

5)Conclusion

12

6)References

13

MARKETING

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1)Introduction

“Marketing is a significant dimension of any business in today’s highly 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 1820 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...
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