Comparative Analysis of Cadbury Dairy Milk and Lindt Excellence Milk Bar on the Basis of 4P's of Marketing Mix
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This report shows a comparative study between Cadbury Dairy Milk Bar and Lindt 'Excellence' Milk Chocolate Bar on the basis of 4P's that are product, price, place and promotion. It also includes target market, brand values and competitive position in the market.
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Principles of Marketing
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Executive Summary This report shows the research of the target market of Cadbury dairy milk and Lindt excellence milk bar using market research database. It shows, their brand values and the competitive position in the market. The report also shows the 4P's of marketing mix that are product, price, place and promotion and the comparative analysis of these two brands on the basis of 4P's of marketing mix. However , report shows the pricing strategy used by the brands and their channel management.
Table of Contents INTRODUCTION...........................................................................................................................3 MAIN BODY...................................................................................................................................3 Target market...............................................................................................................................3 Product or Brand..........................................................................................................................4 CONCLUSION................................................................................................................................4 REFERENCES................................................................................................................................1
INTRODUCTION Marketing refers to the action or the business of the organization in order to promote and sale of products and services (Boboev, 2021). It also includes market analysis and advertisement. Marketing mix is itself a factor combination, under the control of company to make an influence over customers to purchase the products (Raewf, Thabit and Jasim, 2021). This report shows a comparative study between Cadbury Dairy Milk Bar and Lindt 'Excellence' Milk Chocolate Bar on the basisof 4P'sthatareproduct, price,placeand promotion.Moreover,secondary observational researches are also added in this report and with the help of these resources an organization can achieve their goals. FINDINGS Target market Target market refers to group of people with some shared characteristics that a company has identified as potential customer of their product (HR and Aithal, 2020). The target market of Cadbury Dairy MilkBar and Lindt ‘Excellence’ Milk Chocolate Bar are very different from each other. Following are the target market of both company. Dairy Milk:Target market of Dairy Milk is children and youth. Company mostly target the people of age group from 5 to 24 years old as people love to prefer chocolate at this age group. Dairy milk is produced for everyone and each level of personal disposable income, social class, level of education, family life cycle, lifestyles. Customers of dairy milks also likes to have Kit- Kat from nestle. Most priority of the dairy milk in the market targeting is the children as kids are the major consumer of the chocolate. Target market of the brand also like to eat sweets. Excellence Milk chocolate bar: Women are the target market of the Excellence Milk Chocolate Bar. The taste of the chocolate is mostly preferred by the girls and women. The age group of the target market of excellence Milk chocolate bar is the 18 to 24 years old women. Company do not produce excellence bar for people below poverty line. Otherwise, target market of the company include every social class, level of education, family life cycle and lifestyles, target customers of the brand are more likely to watch romantic movies.
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Product or Brand Product of the dairy milk and excellence milk chocolate bar are little different from each other as the both are the chocolate bars (Syapsan 2019). Following is the analysis of both brands with the help of Levitt's Model Core product: Dairy milk chocolate bar is the core product of the company it provides the sweet taste to the people. While excellence milk chocolate bars' core product is a chocolate bar and has a little different taste from the dairy milk. Generic Product:The quality of dairy milk is very good and it has fine quality of cocoa in the production of the bar but the excellence chocolate has better quality of the product as compared to the dairy milk as it uses the finest cocoa and unique roasting and grinding. Expected Product:Dairy milk has good taste and it is the best gift on any occasions. On the other hand excellence milk chocolate bars are more creamy in taste and most commonly used in parties. Augmented Product:Dairy milks has navy blue packaging thatattracts the customer with its beautiful packaging but excellence Milk bar has sky blue cover that does not attract the customer much. People are emotionally connected with the dairy milk but Excellence chocolate milk bar does not have emotional connectivity with customers. Potential Product:Dairy milk is more chocolaty and dark in colour and the taste is more of chocolaty. While the excellencemilk chocolate bar is more milky and creamy in taste for the people who loves cream with milk. Price Price within a marketing mix is a cost that a consumer pay in exchange for a product. Price always links with the real price of product but supply cost as well as seasonal cost also considered at the time of the pricing of the product by the organization (Kalogiannidis and Mavratzas, 2020). FactorsDairy MilkLindt Excellence Bar Type of productsChocolateChocolate Raw material costThe raw material cost of dairy milk is moderate as it consist Excellence bar is made up of cocoabutter,cocoamass,
of milk, sugar, vegetable fats, cocoabutterandflavours. These are lower in costing as raw material. sugar, milk , skim milk, soy lecithin, vegetable oil, etc. The raw material cost is high as it includes more ingredients. Packaging costThepackagingisoriginally madeupofrecycledplastic wrappers to be printed. Lindt excellence bar packaging is done ina box and it is 100% recyclable and biodegradable , they do not use any kind of plastic in the packaging . ExpenditureDistributionnetwork, advertising, marketing. For promotions company uses giftsanddiscountsonbulk purchasing. The Lindt expend more on the process of roasting, grinding, moulding,etc.so,the expenditure is high. Selling priceSelling price can be fluctuated as per the competitor product pricing. Many of time provides discounts as well to attract the customers. Selling price of the product are valuebasedasperthe manufacturingcostingsoit doesnothaveanyspecific effects due to the competitor market. Profit marginProfitmarginofCadburyis high as it use best quality at reasonable price. Profit margin islower as they alreadyhavequality production that results in more expenses. Cadbury use Cost plus pricing strategy which reflect the consumers. Cadbury sets their prices according to the changing preferences and demand of the consumers (Kumar Shankar and Aljohani, 2020). It also use price skimming strategy in order to take advantage of various segments of the people.
Lindt offers premium quality products so it use premium pricing strategy. Lindt has a strong and loyal customer base and also maintain its pricing strategy. There are some rivals of Lindt but it does not care about them as the quality of its product is best as compared to the other competition. Place This 'P' within marketing mix defines the geographical location for the selling of product by the company. It also includes the channel management as the set of strategies for the administration of various distribution channels as well (Lim, Jee and De Run, 2020). Dairy milk uses wholesalers, supermarkets, hotels and street stores to sell their products whereas Excellence barshipped over the worlds from the online superstores. In the term of mass market products, Dairy milk can be found with maximum distribution outlets , whereas Excellence bar can be counted as luxury brand as it can not be founded everywhere on the stores, its distribution is limited (Hutauruk and et.al., 2020). Source:Brown Cadbury Dairy Milk, 165 G, 2021. In terms of brand value, Dairy Milk have strong brand value in terms of the quality of chocolate and its reasonable price. Illustration1: Dairy Milk
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Source: Lindt EXCELLENCE Extra Creamy Milk Chocolate Bar, 100 Grams, 2021. In terms of brand value, Excellence Bar is a dark chocolate and has fine raw material and high quality ingredients. Illustration2: Lindt Excellence Milk Bar
Promotion- This terms refers to the product promotion or branding of the products in terms of the targeted customers within the market (Houghtaling and et.al., 2019). In Dairy milk past methods of communication were on TV advertisement, print as well as promotional activities as the stores or within the market. In order to make Dairy milk as a brand, company have used various methods of communication as well as well as use new methods for the advertisement of the product. It used cinema for the setup whereas Excellence bar have used social platforms to make people aware about the product. The past method of communication of Excellence bar was newspaper advertisements in order to draw the attention of the customers (Jindal and et.al., 2020). Lindt also use initial communication tools like posters and enamel signs. These methods helped the company to set up its respective position in the sense of unique products within the market. For the Dairy milk chocolate it has used oral, communication as well as advertise through radio, magazines, promotions, etc. It also used online platform for promotions in order to reach new customers. RECOMMENDATION In the terms of improvement, there can be a section of recommendation as well. For Cadbury: ï‚·Cadbury should be more considerate about the quality of the product and its packaging. ï‚·Excellence milky bar should consist more chocolate and less sugar. For Excellence: ï‚·Excellencemilkybarshouldfocusoncompetitivepriceaswellasprice skimming strategy so that they can be affordable for people. CONCLUSION From the above discussion, it can be concluded as the marketing mix evaluation is an important factor in order to full analysis of the company on the basis of 4P's. This report shows the comparative analysis of both brands Cadbury dairy milk and the Excellence milky bar are done for the purpose of secondary observational research. Each of the brand have been studied on the basis of their strategy towards the market, their place, promotional and pricing manner. Among both of the products, Cadbury dairy
milk is the successful brand in terms of marketing mix and their applications. This product has proper strategy as well as demand as per its value and quality of product.
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REFERENCES Books and journals Boboev,L.K.,2021.MODERNCONCEPTSOFMARKETINGSTRATEGYOF COMPANIES.Economics and Innovative Technologies.2021(5). p.2. Houghtaling, B. and et.al., 2019. A systematic review of factors that influence food store owner and manager decision making and ability or willingness to use choice architecture and marketing mix strategies to encourage healthy consumer purchases in the United States, 2005–2017.International Journal of Behavioral Nutrition and Physical Activity.16(1). pp.1-14. HR, G. and Aithal, P.S., 2020. Establishing True Lifestyle Brand in India: An Integrated Marketing Mix Framework.International Journal of Management, Technology, and Social Sciences (IJMTS),(June 2020).5(1). pp.261-284. Hutauruk, M.R. and et.al., 2020. Marketing mix and customer satisfaction in its role toward customer loyalty through environmental accounting moderation.International Journal of Scientific and Technology Research.9(3). pp.996-1001. Jindal, P. and et.al., 2020. Marketing-mix response across retail formats: the role of shopping trip types.Journal of Marketing.84(2). pp.114-132. Kalogiannidis, S. and Mavratzas, S., 2020. Impact of marketing mix strategies effective product development issues in MNCs/Retail.International Journal of Business Marketing and Management (IJBMM).5(12). pp.118-125. Kumar, A., Shankar, R. and Aljohani, N.R., 2020. A big data driven framework for demand- drivenforecastingwitheffectsofmarketing-mixvariables.Industrialmarketing management.90.pp.493-507. Lim, W.M., Jee, T.W. and De Run, E.C., 2020. Strategic brand management for higher education institutions with graduate degree programs: empirical insights from the higher education marketing mix.Journal of Strategic Marketing.28(3). pp.225-245. Raewf, M.B., Thabit, T.H. and Jasim, Y.A., 2021. The Relationship between the Elements of MarketingMix and Consumer Behaviorduring EnvironmentalUncertainty.Cihan University-Erbil Journal of Humanities and Social Sciences.5(1). pp.50-55. Syapsan, S., 2019. The effect of service quality, innovation towards competitive advantages and sustainableeconomicgrowth:Marketingmixstrategyasmediating variable.Benchmarking: An International Journal.26(4). pp.1336-1356. 1
Online references ChocolateBrownCadburyDairyMilk,165G,2021.[Online].Availablethrough <https://www.indiamart.com/proddetail/dairy-milk-23522796130.html> Lindt EXCELLENCE Extra Creamy Milk Chocolate Bar, 100 Grams, 2021. [Online]. Available through<https://www.lindt.ca/en/lindt-excellence-extra-creamy-milk-chocolate-bar- 100g> 2