Principles of Marketing Report 2022

PRINCIPLES OF MARKETING
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Executive Summary
The report here elaborately discussed the two famous confectionary brand products Cadbury
Dairy Milk Bar and Lindt ‘Excellence’ Milk Chocolate Bar. The STP analysis was portrayed by
focusing on the target market analysis of both the companies after a brief introduction to the
background of the brands in terms of history and global presence. The target market analysis
focused on the segmentation, targeting and positioning of the brand which was pursued by the
4ps of marketing or the four basic principles of marketing concerned with place, price, product
and promotional strategies to highlight the strategic position of both the companies in the market
scenario. Both the companies are compared and contrasted following the marketing attributes by
highlighting the main marketing characteristics to point out the completive advantage. Cadbury
is one of the largest confectioneries worldwide with over 10% market share, 200-year-old
heritage with a revenue of close to 5.4 billion euros receiving an underlying operating profit of
nearly 638 million euros operating in more than 60 countries globally employing over 45000
people whereas Lindt is one of the ten leading brands in the global market of chocolate
confectionary offering a varied range of products and was founded in 1845 by David Sprüngli-
Schwarz and his son Rudolph employing more than 13500 individuals and generating a global
sale of approximately 4 billion CHF.
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Table of Contents
Introduction......................................................................................................................................4
Findings...........................................................................................................................................5
Cadbury Dairy Milk Bar..................................................................................................................5
Target Market Analysis...................................................................................................................5
Product/Brand..................................................................................................................................6
Pricing Strategy...............................................................................................................................6
Distribution/ Place Strategy.............................................................................................................6
Promotional Strategy.......................................................................................................................6
Lindt ‘Excellence’ Milk Chocolate Bar...........................................................................................7
Target Market Analysis...................................................................................................................7
Product/Brand..................................................................................................................................7
Pricing Strategy...............................................................................................................................8
Distribution/Place Strategy..............................................................................................................8
Promotional Strategy.......................................................................................................................8
Conclusion.......................................................................................................................................8
References......................................................................................................................................10
Appendix........................................................................................................................................12
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Introduction
The report here will be discussing elaborately the two famous chocolate brand products Cadbury
Dairy Milk Bar and Lindt ‘Excellence’ Milk Chocolate Bar. The piece will be emphasizing on
the approaches of marketing mix analysing the target market following the four basic principles
of marketing including product, price, place and promotion and further pursues the evaluation
following segmentation targeting and positioning to highlight the strategic position of the
companies in the industry expanding the scope of opportunities. The study begins with a
background of the companies and follows the pace by portraying an overview concerning the
marketing analysis.
Cadbury company started the business in 1824 as a producing along with selling cocoa nibs
which comprised of a nutritious breakfast drink and gradually evolved to a successful and
household name as a British global confectionery brand owned by Mondelez international
(eprints.hud.ac.uk, 2021). the Cadbury which was originally acquainted as Cadbury’s became a
member of the American conglomerate Kraft foods and in 2012 spilt into two companies with
currently being a subsidiary of Mondellez an American multinational company. Cadbury offers
a varied range of products ranging from chocolate bars, biscuits, cakes and desserts. Cadbury
Dairy milk bar is the most popular chocolate bar introduced in 1905 concocted by a chunky
creamy texture appealing to all children as well as adults alike (statista.com, 2021). It is one of
the largest confectioneries worldwide with over 10% market share, 200-year-old heritage with a
revenue of close to 5.4 billion euros receiving an underlying operating profit of nearly 638
million euros operating in more than 60 countries globally employing over 45000 people
(sec.gov, 2021). It marks a 12% average growth observed over 5 years with 7% revenue growth,
16% EPS growth and dividend growth of 6% with an operating margin of 11.9%.
Chocoladefabriken Lindt &Sprungli AG which is popularly known as Lindt is one of the most
popular confectionery brands originating in Switzerland and is rated as the most reputable
company in the country (forbes.com, 2021). It engages in the business for developing producing
as well as selling high-quality premium chocolates with unique taste following popularity in
countries worldwide mainly USA, Europe, Canad, Mexico, Russia, Australia, Japan, South
Africa, Hong Kong, China and Brazil. It is one of the ten leading brands in the global market of
chocolate confectionary offering a varied range of products and was founded in 1845 by David
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Sprüngli-Schwarz and his son Rudolph (statista.com, 2021). It employs more than 13500
individuals and generates a global sale of approximately 4 billion CHF (Swiss Francs) with the
European market accounting for almost 50% of the sales along with observing a major growth in
market share especially in 2019 to 2020. The company also greatly focuses on sustainable
sourcing emphasizing sustainability and responsibility.
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Findings
Cadbury Dairy Milk Bar
Target Market Analysis
Bharucha (2016) pointed out in his study that Cadbury possesses a strong marketing strategy
investing huge revenues on promotion. Cadbury dairy milk bar is the heart of the success of the
company and generates close to 500 million euros of sales every year (Files.investis.com, 2021).
It targets people from all age groups and gender. It's flexible pricing of a varied range of products
which are also available in small packages makes it more accessible to a wide range of
customers. However, it focuses on targeting the audience through emotional advertisements and
campaigns like recently the ”athomewithoreo” campaign aligned with the current situation
targeting children (Shastri, 2021). It has a global market that is mostly dominated by western
Europe as well as North America with numerous emerging markets along with the BRIC
countries (Brazil, Russia, India and China) forming a huge amount of the retail growth of the
product.
Age Group all
Income Group all
Market Segmentation Demographic and behavioural segmentation
Product/Brand
Cadbury offers a varied range of products ranging from chocolate bars, biscuits, cakes and
desserts. Cadbury Dairy milk bar is the most popular chocolate bar introduced in 1905 concocted
by a chunky creamy texture appealing to all children as well as adults alike (statista.com, 2021).
Cadbury dairy milk is the richest and creamiest chocolate the company has ever made with 40%
cocoa solids along with smooth and creamy milk (cadbury.co.uk, 2021).
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Pricing Strategy
Cadbury utilizes two pricing strategies namely positioning pricing and competitive pricing.
having its reach worldwide the company is set to increase its customer base by becoming more
available to the customers according to the geographical location and its economy. It prioritises
the customer demands and sets the price accordingly (Hermitage.surrey.Sch.uk, 2021).
Furthermore, it also involves competitive pricing to gain a competitive edge in the market and
create a brand value in the industry as well as among the target audience. it has also invested in
small packaging to make it more affordable to people from all economic backgrounds and thus
increasing the customer base and loyalty.
Distribution/ Place Strategy
Cadbury is found in over 40 countries worldwide and is manufactured in more than 15 countries
globally with the biggest markets in the UK, China, Australia and India (cadburyworld.co.uk,
2021). The company believes in the pleasure principle with organic revolution and access for all
and thus removes available in small packages as well to be accessible to all people and can be
purchased from any local store to supermarkets and even in gas stations (Files.investis.com,
2021).
Promotional Strategy
Cadbury invests a lot in promotional strategy and engages the target audience mostly by creative
techniques of customer engagement through content media. It follows television posters radios
and even newspaper advertisements to connect to the customers and presently is also investing
greatly in social media advertisements which are trending in the market scenario. Cadbury
possesses close to 1 million Facebook fans and Cadbury dairy milk boasts over 15 million
followers. The brand mainly focuses on an emotional connection with the target audience
through emotional advertising creating content that makes the products as well as the brand more
familiar to the audience (Mondelezinternational.com, 2021).
Lindt ‘Excellence’ Milk Chocolate Bar
Target Market Analysis
(prezi.com, 2021). The brand observed strong market performance in Europe and also in the
“rest of the world” segments following the successful global retail expansion of business along
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with more than fifty shops of the brand as well as a double-digit growth concerning the top-
selling Lindor brand (Report.lindt, 2021). since its establishment in 2009, the company sales
have increased and globally the company has expanded to North America with 156 shops, Brazil
with 18 shops, Europe with 144 shops, south Africa with 4, Australia with 18 shops and japan
with 15 shops (Lindt-spruengli.com, 2021). It targets an audience who are more into pure and
authentic chocolates with a premium touch to them.
Age Group all
Income Group Mid to high earning group
Market Segmentation Demographic and behavioural
Product/Brand
The brand produces unique Lindor truffle chocolates that are popular internationally possessing
high quality (prezi.com, 2021). The best selling product of the brand is Lindor and excellence
which secures its success rate through strong advertisement worldwide and increasing sales in
the retail stores (Lindt-spruengli.com, 2021). The company specializes in chocolate products
along with seasonal confectionaries ranging from dark chocolate to typically truffle balls
(Chocolate.lindt.com, 2021). Its unique texture of a hard exterior with a smooth and soft inner
layer has an appealing taste and increases the customer base due to the high quality. It also offers
various flavours like peanut butter, Irish ice cream, almond case, peppermint and more.
Pricing Strategy
The company follows a skimming pricing strategy where it sells high-quality productsat slightly
premium pricing to maintain the authenticity of the quality and uphold the brand exclusivity.
(tbcdn.talentbrew.com, 2021).
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Distribution/Place Strategy
The company offers the target audience a wide range of choices regarding the products as well as
the packaging and is observed to have more than twenty-one varieties of chocolates in the stores.
It further utilises the Pick and Mix concept in the Global retail Division development and also
offers Lindt fans unique products that are not available elsewhere. Furthermore, shops also
render opportunities for testing innovative ideas and products that can be rolled out following
wider retail trade(Lindt-spruengli.com, 2021).
Promotional Strategy
the company engages in both print and digital advertising and offers a wide area of availability in
a premium shopping mall, airport stores and more rendering it a premium aura. It also greatly
invest in online marketing strategies and doubled its online business by close to a 5% increase in
sales (Lindt-spruengli.com, 2021). It has a unique way of connecting to the target audience and
transforming them into loyal customers. the company also invests in endorsement by popular
celebrities to get the fan following like Roger Federer who is the current brand ambassador.
Conclusion
The report here consists of the comparison and contrasts between the marketing mix approaches
of the two famous chocolate brand products Cadbury Dairy Milk Bar and Lindt ‘Excellence’
Milk Chocolate Bar highlighting the four principles of marketing namely place, price, product
and promotion along with the Segmentation, targeting and positioning of the companies
concerned with target market analysis. the nuances of the evaluation are portrayed by
demonstrating in detail the company strategic positions emphasizing the scope of marketing and
strategies applied to gain a competitive edge in the industry. Both the confectionary brands are
quite popular worldwide containing their unique selling points like the pricing strategy of
Cadbury and premium quality of Lindt along with more attributes mentioned in the study. There
is a scope of development for both the companies for securing expansion strategies and
increasing the customer base by implementing innovations like Cadbury and the unique taste of
Lindt.
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References
Bharucha, J., 2016. Cadbury Vs Nestle: A Study of The Chocolate War. International Journal of
Research in Social Sciences, 6(9), pp.609-620.
cadbury.co.uk, 2021. Our Products | Cadbury.co.uk. Available at:
<https://www.cadbury.co.uk/products> [Accessed 21 October 2021].
cadburyworld.co.uk, 2021. Cadburyworld.co.uk. Available at:
<https://www.cadburyworld.co.uk/~/media/44C4EFC51876455E8BF97B9DD45A1AB4.pdf>
[Accessed 21 October 2021].
Chocolate.lindt.com, 2021. Melt in the Moment with Lindor | Lindt Shop UK.
Chocolate.lindt.com. Available at:
<https://www.chocolate.lindt.com/our-chocolate/our-brands/lindor> [Accessed 21 October
2021].
eprints.hud.ac.uk, 2021. Eprints.hud.ac.uk. Available at:
<http://eprints.hud.ac.uk/id/eprint/12399/1/Microsoft_Word_-
_Cadburys_for_University_repository_2012.pdf> [Accessed 21 October 2021].
Files.investis.com, 2021. Files.investis.com. Available at:
<http://files.investis.com/cadbury_ir/reports/brochure.pdf> [Accessed 21 October 2021].
forbes.com, 2021. Lindt &Sprungli. Forbes. Available at:
<https://www.forbes.com/companies/lindt-sprungli/?sh=2e37f79453f2> [Accessed 21 October
2021].
Hermitage.surrey.sch.uk, 2021. Hermitage.surrey.sch.uk. Available at:
<https://www.hermitage.surrey.sch.uk/attachments/download.asp?file=2860&type=pdf>
[Accessed 21 October 2021].
Lindt-spruengli.com, 2021. Lindt-spruengli.com. Available at: <https://www.lindt-
spruengli.com/media/amasty/amfile/attach/Ko8eTeRc3ZcdAluON8rYCsx6QNaiu74u.pdf>
[Accessed 21 October 2021].
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Mondelezinternational.com, 2021. Mondelezinternational.com. Available at:
<https://www.mondelezinternational.com/~/media/MondelezCorporate/Uploads/downloads/
cadbury_fact_sheet.pdf> [Accessed 21 October 2021].
prezi.com, 2021. Lindt. prezi.com. Available at: <https://prezi.com/sjemtfyzriht/lindt/>
[Accessed 21 October 2021].
Report.lindt, 2021. Report.lindt-spruengli.com. Available at: <https://report.lindt-
spruengli.com/18/ar/app/themes/lindtspruengli/dist/pdf/WEB_GB18_Maerkte_en.pdf>
[Accessed 21 October 2021].
sec.gov, 2021. Available at:
<https://www.sec.gov/Archives/edgar/data/744473/000115697309000187/u06102exv99w1.htm>
[Accessed 21 October 2021].
Shastri, A., 2021. Marketing Strategy of Cadbury - A Case Study | IIDE. IIDE. Available at:
<https://iide.co/case-studies/cadbury-marketing-strategy/> [Accessed 21 October 2021].
statista.com, 2021. Cadbury: leading products in the UK 2018-2020survey | Statista. Statista.
Available at: <https://www.statista.com/statistics/312031/cadbury-leading-products-in-the-uk/>
[Accessed 21 October 2021].
statista.com, 2021. Topic: Lindt &Sprüngli. Statista. Available at:
<https://www.statista.com/topics/2397/lindt-and-spruengli/> [Accessed 21 October 2021].
tbcdn.talentbrew.com, 2021. Available at:
<https://tbcdn.talentbrew.com/company/1501/v1_0/Lindt___Spruengli_Sustainability_and_Resp
onsibility__10_Facts.pdf> [Accessed 21 October 2021].
www.lindt-spruengli.com, 2021. Lindt &Sprüngli increases market shares. Lindt &Sprüngli.
Available at: <https://www.lindt-spruengli.com/press-releases-and-news/english/lindt-spruengli-
increases-market-shares/> [Accessed 21 October 2021].
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Appendix
Cadbury Dairy Milk Bar
Age Group all
Income Group all
Market Segmentation Demographic and behavioural segmentation
Lindt ‘Excellence’ Milk Chocolate Bar
Age Group all
Income Group Mid to high earning group
Market Segmentation Demographic and behavioural
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