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The Pure Taste Of Cadbury Dairy Milk Marketing Essay

3429 words (14 pages) Essay in Marketing

5/12/16 Marketing Reference this

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The story of Cadbury Dairy Milk started way back in 1905 at Bournville, U.K., but the journey with chocolate lovers in India began in 1948. Cadbury began its operations in 1948 by importing chocolates and then re-packing them before distribution in the Indian market. After 59 years of existence, it today has five company-owned manufacturing facilities at Thane, Induri (Pune) and Malanpur (Gwalior), Bangalore and Baddi (Himachal Pradesh) and 4 sales offices (New Delhi, Mumbai, Kolkota and Chennai). The corporate office is in Mumbai

The pure taste of Cadbury Dairy Milk is the taste most Indians crave for when they think of Cadbury Dairy Milk.   The variants Fruit & Nut, Crackle and Roast Almond, combine the classic taste of Cadbury Dairy Milk with a variety of ingredients and are very popular amongst teens & adults. 

show macro and micro environmental factors which

influence marketing decisions

The modern business environment has become complex and hence there are plethora of forces that affect the company from within and without. The ones which are internal to a business are known as micro- environmental forces and those which are developed from the society are external to the company and hence are known as micro environments

The micro environmental factors include customers ,suppliers, lenders and government .These forces have an interest in the activity of an organization For instance Cadbury ltd has got a lot of products to sell in the market ,one of the most popular products flanked(sold) in the market is dairy milk. This product sells maximum in the market in the chocolate industry. If the micro environment forces have to affect the product then it can be shown that Cadbury has got million’s of stakeholders who have invested a lot in the business, likewise the company has a lot of suppliers who supply different raw materials to the company, which got into making it dairy milk chocolate further. The company also is accountable to the government in the sense that it has to mandatorily comply with the various laws and regulation of the country it is operating in.

And then there are millions and billions of customers who are fond of dairy milk. The company is responsible to them as well in terms of producing quality product at reasonable price. All these forces affect the company ‘s well being by a huge extent . It is very important to the company to pay heed to these forces to grow, for instance if Cadbury ltd is unable to appease its customers by delivering good quality dairy milk ,it won’t get sales, on the other hand if it does not comply with law of land ,their license to carry out business in that country will be revoked ,likewise it is important to keep the suppliers happy as it is them who supply the raw materials on time , without which the company cannot produce dairy milk.

Macro Environmental Factors

These are external or larger forces that have an enormous impact on the company; for e.g. environment scanning , PESTLE

Environmental scanning is a process of gathering, analyzing, and dispensing information for tactical or strategic purposes. The environmental scanning process entails obtaining both factual and subjective information on the business environments in which a company is operating or consider entering.

It includes common strategic analysis like discovering the product, finding out proper directions to produce the product and finally to develop the product all these thing are interrelated and go hand in hand since Cadbury has a renowned product dairy milk . It would keep into consideration the external as well as the internal environment wiz the trends which are happening in the market the like and dislike of the customers at the moment , infrastructure to develop the product , the structure of organization ,which is fundamental aspects of the company existence and ability of the company to produce the best quality product at lowest possible price

Further in order to understand the different inhibitions and constraints on the path to develop dairy milk PESTLE is the tool for macro environment, PESTLE stands for political,social,technological,and economical/ecological, the company has to deal with various societal factors like political and legal factors which include policy made by the government , and various framework of laws that have great bearing on a company success story the company also has to observe the political environment so that correct decisions are taken . In addition to this the company has to deal with the economic /ecological i.e. is what to produce , how to produce and for whom to produce , this is mainly because resources are scares and it’s the duty of any country to preserve scarce and precious nature resources by utilizing them in the most opinion manner it is known as economic efficiency, the company also have to take into consider various problem like inflation, increase interest rates ,threats of economic recession, world trading conditions, wage rate policy and lastly growth of the economy. Ecological factors matter to the company while producing goods and services the company has to confirm by various environment laws . In order to protect the ecological of the territory , Again there are various social and cultural factors which impact overall well being of the company, these social factors are the most difficult to quantify and predict as personal attitudes ,values and beliefs are involved Such as the ethnic and religious composition of the population where the company operating the linguistic factors . The festivals which are celebrated ,the demographical structure of the society such as birth rates, population growth, regional population shift, life expectancy and finally educational level of the society , the company has to keep into consideration, in order to produce most likable product. Further the company needs to place its attention at technological factors of the country . For instance Cadbury needs to pay a lot of attention on the available pool of technological resources in the country ,it must make use of the state of the art of technology to bring upon efficiency , productivity and reduce wastage within the advancement in the technology . The company will be position to cater the needs of the growing population by expanding the business operation and finally fulfil demand of the customers, thus by doing PESTLE analysis the company gets an understanding of wider business environment, secondly helps Cadbury ltd to make their product much more successful , thirdly it also helps to tap opportunities and to exploit them and lastly it also helps to identify future difficulties, so that company can take action to avoid or minimise the effect

In addition to various forces that I just mention about, the firm should also carry out a SWOT analysis, it a planning tool which is used to evaluate companies strengths, weaknesses , opportunities and threat to a product or a brand , For instance Cadbury dairy milk should undertake SWOT research to compete with other firms and brands in the same industry .It every company has some strengths and weaknesses. Strengths are the USP of the company on the basis of which the company is able to capitalize or reap the benefits and finally grow. For Cadbury dairy milk USP (unique selling point)is that it has more content of milk in their chocolate than any other chocolate brand in country. likewise the company also has weaknesses which retard the pace growth of the business organization, as for Cadbury dairy milk weakness has have been in scandal few years back which had created severe damage on their clean reputation, thus they should work on their weaknesses to make it their strength in order to achieve success .In the same way each light of day bring itself new opportunities and chances of growth the firm must make use of the opportunities and capitalize on them to remain ahead in the industry and finally the firm has to deal with the competitors , in other words Cadbury dairy milk must produce quality product at a competitive price to deal with the situation. Everyday new company enters the industry and ushers in a lot better quality designed product thus SWOT analyses will help Cadbury dairy milk to be on step ahead in the industry . it will help them to produce new ideas to help take advantage of an organisation’s strengths and defend against the threats

In a nut shell it can be safely concluded that in order to stay ahead in race of co-operate sector . Cadbury dairy milk must be visionary in nature and try to find out the reason of failure and successor by looking at all the micro and macro environmental factor , which goes into making of the product of what it is.

2.2 propose segmentation criteria to be used for products in

different markets

Segmentation is a process of classifying customers into groups who share common likeness or dislike towards a product. segmentation helps a firm to choose customer groups in order to sell their product , it also helps a firm to make their product according to the preferences of the customers. Sometimes segmentation is referred to as differentiated marketing because, instead of trying to sell just one product to the whole market , different products are targeted at different segments . Segmentation can be spread in four parts , geographic, demographic, psychographic and behavioural. As for Cadbury dairy milk, geographic plays an important part in the success story of the product, as Cadbury dairy milk is targeted to different segments (multi- segment) , the product reaches across the entire nation having a wide distribution channel , thus making them the leader in the industry. Demographic segment of Cadbury dairy milk is they serve their product to general public. Chocolates are for everybody thus there is no differentiation in age , gender, as for the income the price of the Cadbury DM is reasonable and cheap, thus consumers don’t have to think twice to buy the product. the income of a person does not play an important role in it except for silk. In psychographic segment, they aim Cadbury dairy milk as a product for middle class, lower class, for upper class or premium class there is Cadbury dairy milk Silk. As for the behaviour segment dairy milk also cater this segment by product known as dairy milk celebrations. As you can observe they have not left a gap in any segment possible, thus making them the market leader. Therefore segmentation helps a firm to identify competition and to create opportunities

2.3 choose a targeting strategy for a selected


targeting strategy:

The selection of potential customers to whom a business wishes to sell products or services. The targeting strategy involves segmenting the market, choosing which segments of the market are appropriate, and determining the products that will be offered in each segment. A business offering multiple products can determine if the various segments should receive one generic product (such as in mass marketing), or if each segment should receive a customized product (multi-segment).

If we relate this to Cadbury dairy milk they will use segment marketing (differentiated marketing) because they have a product for every segment possible as mentioned above. Few years back Cadbury dairy milk has only targeted the Kids but their prospective have changed which includes Adults i.e. including every family member to celebrate festive occasion with Dairy milk

Demonstrate how buyer behavior affects marketing activities in different situations.

Consumer behavior can be formally defined as: the acts of individuals directly involved in obtaining and using economic goods and services, including the decision processes that precede and determine these As well as being influenced by the outside environment, people also have their own individual beliefs. It is important that we should know what these are in order that we c an better understand how individuals respond to marketing efforts. Individuals are different in terms of how they look their education, their feelings and their responses to marketing efforts. Some will behave predictably and others less predictably according to an individual’s personality. The individual consumer absorbs information and develops attitudes and perceptions. In marketing terms, this will affect an individual’s needs as well as determining how to satisfy them. The task of marketing is to identify patterns of behavior which are predictable under given conditions, which will increase the marketer’s ability to satisfy customer needs, which is at the very base of marketing. acts.

The buyer’s behavior affects the marketing activities in the following situations for Cadbury dairy milk

Personality and self concept

Personality is the principal component of the self concept. It has a strong effect upon buyer behavior. Many purchase decisions are likely to reflect personality, and marketers must consider personality when making marketing appeals. Psychological theory suggests that we are born with instinctive desires which cannot be satisfied in a socially acceptable manner and are thus repressed. The task of marketing in this context is to appeal to inner needs, whilst, at the same time, providing products which enable them to be satisfied in a socially acceptable way.


Marketers are interested in motivation when it relates to purchasing behavior. This behavior relates to the motive for wishing to possess the goods or services in question, and it has been termed ‘goal-related behavior’. For a motive to exist there must be a corresponding need. Motives like hunger, thirst, warmth and shelter are physiological..

Most purchasing decisions are a composite of such motives, quite often a deciding factor might be price which is of course more of an economic restriction than a motive. It can, therefore, be seen that a number of motives might be at play when making a purchasing decision – some motives stronger than others – and the final decision might be a compromise solution.

3. Perception

As marketers we are interested in how buyers perceive and react to products in relation to such matters as quality, aesthetics, price and image, since products not only exist in practical terms, but also how they are perceived by consumers in relation to need satisfaction. This perception by the buyer is affected by the nature of the product itself, by the circumstances of the individual buyer, and by the buyer’s innate situation in terms of how ready they are to make the purchase in terms of needing it at a particular point in time. It is, or course, necessary that the product or service (i.e. the stimulus) receives the attention of the potential buyer.


In marketing terms, the sum total of our attitudes can be regarded as a set of cognitions that a potential buyer has in relation to a potential purchase or a purchasing environment. This is why certain stores or companies go out of their way to engender favorable attitudes and it is why manufacturers seek to induce loyalty towards their particular brand or product. Once this attitude has been established in the mind of the consumer, it might be difficult to alter. Even a minor dissatisfaction can cause a fundamental shift in disposition. This process can work for and against a manufacturer or retail establishment.

5. learning

In the context of marketing, learning is a result of information received through advertising or other publicity or through some reference group or other. In order to have an effect on motives or attitudes, marketing effort should associate the product with positive drives and reinforcing messages.

A fundamental aim of marketers is to bring about satisfaction for their customers, and this is cardinal to the concept of marketing. Having looked at some of the issues that make up consumer behavior, we can now look at the consumer’s central goal. Because they are continually occupied in the quest for satisfaction, competitive offerings will always have potential appeal. Firms must seek continuous improvement to the products or services and the levels of support they provide. This is a matter of balancing costs and potential profit with customer demands, as ‘total satisfaction’, except in a minority of cases, is an unrealistically expensive goal.

Propose New Positioning For a Selected Product

In marketing, positioning is the process by which marketers try to create an image or identity in the minds of their target market for its product, brand and organization.

While Positioning begins with a product, the concept really is about positioning that product in the mind of the customer. This approach is needed because consumers are bombarded with a continuous stream of advertising, with advertisers spending several hundred dollars annually per consumer in the U.S. The consumer’s mind reacts to this high volume of advertising by accepting only what is consistent with prior knowledge or experience.

It is quite difficult to change a consumer’s impression once it is formed. Consumers cope with information overload by oversimplifying and are likely to shut out anything inconsistent with their knowledge and experience. In an over-communicated environment, the advertiser should present a simplified message and make that message consistent with what the consumer already believes by focusing on the perceptions of the consumer rather than on the reality of the product.

The easiest way of getting into someone’s mind is to be first. It is very easy to remember who is first, and much more difficult to remember who is second. Even if the second entrant offers a better product, the first mover has a large advantage that can make up for other shortcomings. These are various ways how Cadbury dairy milk positioned their product in past years

Cadbury Dairy Milk

In the early days, the brand had a huge fan following among kids. In order to build stronger character among older age groups, the brand re-positioned itself through the classic ‘Real Taste of Life’ campaign in 1994. The campaign positioned Cadbury Dairy Milk as the chocolate that awakened the little child in every grown up and very soon, both teenagers and adults, were hooked on to this bar of pure magic.

With the launch of the Rs. 5 pack in 1998, CDM became more affordable and hence more accessible for the masses. The ensuing positioning of ‘Khaane Waalon ko khaane ka Bahana Chhayie’ made consumption into a joyful, social occasion.

In 2004, the `Kuch Meetha Ho Jaaye’ campaign was launched, seeking to increase CDM consumption by making it synonymous with traditional sweets (Mithai). With Amitabh Bachchan as the face and voice of the brand, the campaign went on to become a huge success. People could relate to the commercials that were aired to promote Cadbury Dairy Milk. How many can forget the `Pappu Pass Ho Gaya’ commercial? The country cheered on as Pappu fell in love in the Pappu Love Test commercial. Then came`Miss Palampur’ and the country celebrated the beauty pageant with a difference. The`Kenya’ commercial that was aired in 2008 celebrated the spirit of cricket and that of true sportsmanship. In 2009, we aired another commercial under the `Kuch Meetha Ho Jaaye’ platform, called the `Pay Day’ commercial.

In the year 2010, the `Shubh Aarambh’ campaign was launched, drawing lines from the traditional Indian custom of having something sweet before embarking on something new. With `Shubh Aarambh’, Cadbury took the Dairy Milk journey a step further into the hearts of its million lovers.

With the current campaign ‘Khaane Ke Baad Meethe Mein Kuch Meetha Ho Jaaye’, our aim is to introduce the thought of having a CDM as a post dinner meetha (dessert).

Cadbury Dairy Milk Silk

Cadbury Dairy Milk has captured the heart of Indian consumers for over six decades; but there was room for a more premium entrant in the category. And enter CDM Silk. Most CDM lovers thought that nothing could taste better, but CDM Silk came as a welcome surprise! It is creamier, smoother, and tastier..

Launched in January 2010, with a tantalizing taste that tempts the taste buds, CDM Silk delivered an exquisite chocolate eating experience in the Indian market.

The advertising highlights the joy of savoring CDM Silk and builds on its creamy and smooth experience that instantly melts in your mouth. This brand promise was beautifully captured by the tagline `Have You Felt Silk Lately?’

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