Comparison of Marketing Strategies of Cadbury Dairy Milk Bar and Lindt ‘Excellence’ Milk Chocolate Bar

This report analyses the 4P’s of marketing used by Cadbury Dairy Milk Bar and Lindt ‘Excellence’ Milk Chocolate Bar. It identifies different target markets, pricing strategies, and promotional measures adopted by both brands.

MG412 Principles of Marketing

EXECUTIVE SUMMARY
Marketing is a very essential part or function of any company. It focuses on how to
sell market or sell the products of company to satisfy the consumers. The present report has
analysed the 4P’s of marketing which are used by two companies i.e. Cadbury Diary Milk
Bar and Lindt ‘Excellence’ Milk Chocolate Bar. The report has identified different target
market of both the brands and the pricing strategies followed by them. Report has also used
Levitt’s model to differentiate the products of two brands in different categories. Further, it
has applied Aaker’s brand personality framework to examine the type of personality
associated with the brands. In addition to this, it has also discussed various promotional
measures adopted by chocolate brands.

TABLE OF CONTENTS
EXECUTIVE SUMMARY........................................................................................................2
INTRODUCTION......................................................................................................................4
FINDINGS.................................................................................................................................4
Comparison of target markets................................................................................................4
Product...................................................................................................................................4
Pricing....................................................................................................................................7
Place.......................................................................................................................................8
Promotion...............................................................................................................................9
CONCLUSION........................................................................................................................10
REFERENCES.........................................................................................................................11

INTRODUCTION
Marketing can be defined as a procedure of pricing, promoting and distributing
ideas, goods & services in order to provide full satisfaction to customers. It helps to
effectively make sales and determine competitive advantage in the market. The present case
scenario is based on the comparison of two famous chocolate brands marketing essential, that
is, Cadbury Dairy Milk Bar & Lindt ‘Excellence’ Milk Chocolate Bar. Report will discuss the
target market profile of each brand. Further, it will also analyze the brand values by applying
Levitt’s model. In addition to this, study will discuss the market price and pricing strategy
adopted by each of the brands. Lastly, it will explain the channel management and methods
of promotion adopted by brands.
FINDINGS
Comparison of target markets
The target market of Cadbury Dairy Milk bar is based on several factors like
demographics, behavioural and psychographic factors. For example, on some occasions,
different people of all age group enjoys Cadbury chocolates and also people with
particular income. Although, all the age groups are the target market for Cadbury but it
has differentiated product offerings to specific class only (Bandy and et.al., 2021). For
instance, Bourneville & Cadbury Temptations are exclusively for high-end consumer
group who are always ready to pay extra money and Cadbury Silk has been targeted for
those who cannot live without chocolates. Company has positioned themselves as
celebrating for special and real moments of life.
On the other hand, Lindt is a famous brand that manufactures and sells premium
quality chocolate products, sweets, confectioneries, etc. Lindt has positioned itself as a
luxurious brand of Swiss Chocolate Maker and its major target audience are affluent,
rich & elite people who will not think twice before spending their money on buying high
quality premium chocolate products (Krauss and Barrientos, 2021). In recent time,
company have great opportunity to tap newer markets like China and India where there
are few variants of products available.
Product
Dairy Milk is a generally accepted chocolate brand which caters to all the age group
and class of people. Company has maintained its position of recognizing it as something

sweet which is required by everyone because of its wonderful taste. The product line started
with chocolate with high consistency of milk chocolate in it (Pandey and et.al., 2021). Later,
it launched fruit and Nut followed by Whole Nuts. Currently, there are various variants of
Dairy Milk such as Turkish, Bubbly, Freddo, etc.
On the other Lindt is a brand famous for producing and offering quality chocolates
such as Lindor (hard shell and smooth filling of chocolate), EXCELLENCE (white, milk and
dark chocolates filled with fruit and nuts), desserts, etc. (Gabel, Guhl and Klapper, 2019).
Levitt’s model of brand
Generally, customers select a product based on its perceived value. Satisfaction measures the
degree to which actual utilization of product matches perceived value when it is purchased.
Levitt’s model has five levels to products which are as follows:
 Core benefit: Basic need or want that will be satisfied with the consumptions of this
product (Zhao and James, 2018). The fundamental need in buying a chocolate is to
satisfy the need of having something sweet to eat.
 Generic product: It is that version of product which contains all those characteristics
that is required for it to function.
 Expected product: Characteristics that consumers generally expect and agree to when
they buy a particular product.
 Augmented product: It means the additional features or benefits that serves to
distinguish product from competitors (Product levels, 2021). Lindt has placed its
product as augmented because of its unique taste and higher pricing policy.
 Potential product: All the benefits and augmentations that a product will have in
future times to ensure customer loyalty.

Source:
Aaker’s brand personality framework
The model is very famous and is used in marketing to identify the brand personality scale of
products. Here are the 5 robust dimensions of Aaker’s brand personality framework:
 Sincerity: This means that brands are seen as honest, trustful and down-to-earth i.e.
they follow and communicate ethical and moral practices and make use of clear
consumer policies in order to avoid any confusion and chaos (Brand Personality:
Understanding Aaker’s 5 Dimension Model, 2021). Both the chocolate brands convey
and make use of ethical practices without any ambiguous descriptions.
 Excitement: It shows that brands used stylish fonts, colourful logos in order to depict
themselves as different and unique manner. Here, marketing team think outside the

box to come up with creative ideas to excite and amuse the customers. Cadbury dairy
milk comes up with unique selling and promotion ideas every time.
 Competence: Brands which are reliable, intelligent and responsible come under this
category. In this case, customers often view brand as how they are performing and
how company is behaving in society. Lindt uses trustworthy brand ambassadors who
have complete knowledge about the products and consumers trust them.
 Sophistication: Such brands are perceived as upper class, charming, glamorous, etc.
and they are found as luxurious brands that are highly priced. Lindt is a sophisticated
brand because of its premium quality chocolate that is quoted highly.
 Ruggedness: these brands have tendency to be more male oriented and are conceived
as tough, western and outdoorsy. Here, the product is regarded as resistant, durable,
etc. made for people who love taking risks and with low fear.
Pricing
The pricing strategy adopted by Cadbury Dairy Milk is as follows:
Company offers high quality products that is reflected in its premium pricing policy.
However, it has adopted different pricing strategies according to different target market of
customers. For some of its high-end products like Cadbury Silk and Bourneville, higher
prices are charged using Price Skimming strategy (Arya and DineshBabu, 2021). In addition
to this, the chocolates of Cadbury are manufactured in different sizes, therefore, it is priced
reasonably so that it can attract different segment of customers with different income levels.
Mini chocolate bars are also sold at a very low price.
On the other hand, during festive seasons like Christmas or new-year celebrations,
company offers their products in bundles and gift packing’s. Packets are decorated in such a
way that customers can purchase multiple products at low price instead of purchasing
individually. This type of strategy helps in increasing revenue from sales during festive
seasons.
Pricing strategy adopted by Lindt Milk Chocolate Bar is as follows
Lindt has adopted premium pricing strategy because of superior quality products
being offered. Company faces a lot competition from rivals but it does not bother them
because of its best product quality given to customers. Here, brand is much assured about the
loyalty of its customers, therefore, has discovered this pricing strategy and has not deviated
from it from years (Thaichon and et.al., 2018). Now, it has become a part of their business
strategy so that customers can easily differentiate their products from other products.

Place
Cadbury Dairy Milk is a brand that has global presence that is sold in many countries
like Brazil, UK, Russia, India, Italy, etc. with production capacities in Poland, France and
Ireland. Company follows intensive policy of distribution and supply chain management. The
products of company are available everywhere from corner shops to convenience stores to
grocery shops to big supermarkets (Brown, Bakke and Hopfer, 2020). The company caters to
a very large customer base and is available in all countries. Customers can also purchase
Cadbury chocolates from online retailers like Amazon, Flipkart, etc.
On the other hand, Lindt Milk Chocolate Bar adopted new technology in 1972 which
drastically reduced the production time of chocolate by more than 90% and this lead to
increase in their sales by 100 million Swiss franc. Now, the revenue from sales generated
outside the parent company motivated the company to open new distribution centres outside
Switzerland. Later, it was expanded to European nations and United States. At present, there
products are available in more than 100 countries worldwide with 6 production units in
Europe and 2 in US, the supply chain management of company is efficient (Hashem, and
et.al., 2019). Lindt Chocolate Bars are also available at airports, luxury stores, shopping
malls, etc. Currently, company is also active in using its own official website for taking
online orders from its customers.

Source: Audience analysis: Chocolate Lovers in the UK
Promotion
Promotion practices taken by Cadbury Dairy Milk Chocolate:
Cadbury has taken several steps to position as a no. one brand in the minds of customers
by launching different promotional activities to create brand awareness. The purple
packaging is very unique and easily identifiable and distinguishable. Commercial slogans
used are very interesting and catchy which are generally aired on television and radio.
Company also print media like magazines and newspapers to display ads. Currently, it is also
making use of social media marketing tools to promote products (Adidam and Shaker, 2021).
Cadbury basically aims at increasing their customer base by showing them that how
chocolates can be useful in bringing happiness to their lives.
Promotion practices taken by Lindt Excellence Milk Chocolate Bars:
Lindt is a highly recognized brand that has taken several measures for product
promotion. Company promotes its products using ad campaigns that are displayed in
magazines, billboards, television, etc. Big posters of Lindt chocolates are displayed at airports
and shopping centres to attract customers, especially children. Company is also active on
social media platforms like Facebook, Instagram, Twitter, etc. to better engage with potential
customers. It has also realized the importance of brand recognition through celebrity
endorsements like it selected Roger Federer as their brand ambassador.
CONCLUSION
From the above report, it can be concluded that both chocolate brands are having their
unique products to be offered to customers. Cadbury offers its product to all age groups
irrespective of income levels whereas Lindt provides its chocolates only to its premium
customers with high level of income. It can be concluded that Lindt uses premium pricing
strategy or price skimming for its products and Cadbury uses effective pricing policy
according to its customers. Further, it can be said that promotional policies of both the brands
are almost equal and uses online marketing tools to promote their products.

REFERENCES
Books and Journals
Bandy, L. K. and et.al., 2021. The sugar content of foods in the UK by category and
company: A repeated cross-sectional study, 2015-2018. PLoS medicine. 18(5).
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Krauss, J. E. and Barrientos, S., 2021. Fairtrade and beyond: Shifting dynamics in cocoa
sustainability production networks. Geoforum. 120. pp.186-197.
Pandey, R. and et.al., 2021. A Comparative Study of Consumer Perception on the Usage of
Cadbury Products in Malaysia and India. Journal of the Community Development in
Asia (JCDA), 4(1), pp.106-115.
Arya, N. A. and DineshBabu, S., 2021. Influence of Colour Identity and Brand Recognition
on Consumer Purchasing Behaviour: A Special Reference to Packaging of Cadbury
Chocolates. Annals of the Romanian Society for Cell Biology. 25(6). pp.11212-
11218.
Brown, A. L., Bakke, A. J. and Hopfer, H., 2020. Understanding American premium
chocolate consumer perception of craft chocolate and desirable product attributes
using focus groups and projective mapping. PloS one. 15(11). p.e0240177.
Adidam, P. and Shaker, I. F., 2021. Brand audit: A case study of Lacasa in Spain. Journal of
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Hashem, K. M. and et.al., 2019. Cross-Sectional Survey of the Amount of Sugar and Energy
in Chocolate Confectionery Sold in the UK in 1992 and 2017. Nutrients. 11(8).
p.1798.
Thaichon, P. and et.al., 2018. Are you a chocolate lover? An investigation of the repurchase
behavior of chocolate consumers. Journal of Food Products Marketing. 24(2).
pp.163-176.
Gabel, S., Guhl, D. and Klapper, D., 2019. P2V-MAP: Mapping market structures for large
retail assortments. Journal of Marketing Research. 56(4). pp.557-580.
Zhao, H., Li, B. and James, B. J., 2018. Structure-fracture relationships in chocolate
systems. LWT. 96. pp.281-287.
Online
Brand Personality: Understanding Aaker’s 5 Dimension Model. 2021. [Online] Available
through: < https://liveinnovation.org/brand-personality-understanding-aakers-5-
dimension-model/>
Product levels. 2021. [Online] Available through: < https://qsstudy.com/marketing/product-
levels>