MBA404: Consumer Behaviour and Marketing Analysis of Cadbury Oreo

This report provides a comprehensive analysis of Cadbury Oreo's consumer behavior and marketing strategies. It begins with an executive summary and an overview of the product, including its history and market position. The report then delves into a critical analysis of factors influencing consumer behavior, such as personal, social, and cultural factors, and evaluates the marketing strategies employed by Cadbury Oreo. It explores the relationship between consumer purchasing behavior and the company's marketing efforts, highlighting how changes in consumer preferences have impacted sales. Finally, the report offers strategic recommendations for Cadbury Oreo to improve its marketing effectiveness, increase customer loyalty, and achieve sustainable growth in the competitive FMCG market. The analysis is based on the provided assignment brief, which tasked the student with analyzing the company's customer loyalty decline and providing recommendations to address it.

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Consumer Behaviour and Marketing Psychology
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Consumer Behaviour and Marketing Psychology 1
Executive Summary
The below mentioned report provides a detailed analysis of the marketing of a FMCG company
Cadbury Oreo. Cadbury which is also known as Cadbury Schweppes and wholly owned by
Mondelez International. Cadbury Oreo a biscuit line introduced by the Mondelez in the market.
The below mentioned report enlightens information about the consumer behaviour and
marketing analysis of the company. The report is followed by assessment one and two,
assessment third of the task shares critical information about the consumer behaviour of the
customers and the marketing activities initiated by the company. It has been noted that the sales
of the Cadbury Oreo has started to deplete resulting to which the company has initiated
consumer behaviour analysis that helped them to attain information about the factors affecting
their purchasing decisions in the market. With the help of such information, the report evaluated
strategic recommendations with the help of which they can successfully maintain and increase
their current position present in the market. Further, the below mentioned report evaluated
current marketing strategies implemented Cadbury Oreo and what changes they should make in
their strategies so as to successfully grow in tough competitive market. More details about the
FMCG Cadbury Oreo are discussed below:

Consumer Behaviour and Marketing Psychology 2
Contents
Cadbury Oreo Product Overview....................................................................................................1
Critical Analysis..............................................................................................................................2
Factors Affecting Consumer Behaviour......................................................................................2
Marketing strategies of Cadbury Oreo........................................................................................3
Relationship between Consumer Purchasing Behaviour and Marketing Analysis of Cadbury
Oreo.............................................................................................................................................4
Strategic Recommendations............................................................................................................5
References........................................................................................................................................7

Consumer Behaviour and Marketing Psychology 3
Cadbury Oreo Product Overview
Cadbury Oreo is a brand of cookie that is filled with vanilla in between and the product is
marketed as Chocolate Sandwich Cookie. The product was introduced in the market in the year
1912 and is regarded as the bestselling cookie in US till date. The product is available in more
than one hundred countries present worldwide. Oreo biscuit is now being produced in different
varieties due to the increasing demand of the product. The product is regarded as one of the
leading brands present in the FMCG industry (Jha, Saini, and Kaur 2017). Cadbury Oreo is
formed with milk chocolate, biscuit pieces and vanilla flavour filling. The classic Oreo is formed
using eleven elements that are, salt, sugar, unbleached enriched flour, cornstarch, high oleic
canola oil, leavening agent, chocolate, soy lecithin, cocoa, vanillin and high-fructose corn syrup.
The product is highly demanded by the children in families, as they like the chocolaty taste of the
biscuit with the taste of vanilla in the centre. One of the biggest reasons that have made the
product highly famous in the market is its strong branding and marketing strategies initiated by
Cadbury Company. According to Kraft Foods Company, Oreo is the world’s best-selling biscuit
because of two major reasons that are, its taste and marketing communication strategy. The
purpose of the company is to serve true happiness to the consumers in the target market. Cadbury
Oreo is highly demanded in the country US along with Australia as well. The production of Oreo
has made the company Cadbury profitable only (Jones, and Tadajewski 2015).
Critical Analysis
Factors Affecting Consumer Behaviour
After surveying the marketing information about the product Cadbury Oreo, it can be clearly see
that the purchase of the product has been slightly decreased that has affected the overall sales of
the company. Various factors present in the environment affect the purchasing decisions of the
consumers in the target market. These consumer behavioural factors are discussed below:
Personal Factors: personal factors of a consumer differ from person to person as they are
affected by the lifestyle of the consumer (Dave 2016). Further some of the important factors that
affect the buying behaviour of the consumer against Cadbury Oreo are discussed below:

Consumer Behaviour and Marketing Psychology 4
 Personality/ Preference: personality of the consumer highly affects their purchasing
decisions in the market. Like, people having sweet tooth tend to consume more
chocolates and Oreo biscuits as compared to other normal people. Likes and dislikes,
priorities and moral values also affect the purchasing behaviour of people to purchase
Cadbury in the market. In food industry, the opinion of the customer highly matters so it
is important for the companies to make product considering the preference of all the
customers present in the market.
 Age: age and life cycle of a human being also lays impact on the purchasing behaviour of
consumer in the society. The fact is obvious that a consumer’s preference change with the
time being. With time, the preferences, likings and dislikes changes that also affect the
sales of Cadbury in the market (Bell 2017).
 Lifestyle: occupation of a person along with the ways in which they carry their life plays
an important role in changing the purchase decision of a consumer in the target market.
Further, lifestyle of a person also affects their purchasing power towards certain product
in the market. For instance, purchasing power of Cadbury Oreo decreases if the consumer
invests on clothing more.
Social Factors:
 Family: family members and friends influence the choice of the customers in the market.
As discussed in the previous assessment that major target segment of the company
includes children and young boys and girls only. These people are highly influenced by
their parents and peer (Chokshi, et. al., 2016).
 Reference Group: these type of groups have the potential to form an attitude or behaviour
of the individual. The impact of reference group differs on the basis of products and
brand. Influence of reference group is high in case of Cadbury Oreo company.
Cultural Factors:
 Culture: culture is a part of each organization that initiates the demand of the product in
the market and their positive behaviour against the product. The influence of culture
differs from country to country so the companies have to be particular while presenting
information to the right customers in the market (Ramli 2017).

Consumer Behaviour and Marketing Psychology 5
 Social class: social class of the consumer affects the buying behaviour towards certain
product. People having same social class tend to use same products in the market.
Wealth, education etc. form a part of the social class of consumers.
Marketing strategies of Cadbury Oreo
Marketing campaign of the company, Cadbury also affect the purchasing decisions of the
consumer in the target market. Better the advertisement, higher the level of sales is initiated for
the product in the market. Resulting to which, companies have started shifting their focus from
managerial activities to specialized marketing activities for the consumers (Dimitriadis, Ney, and
Dimitriadis 2018). Further, the marketing strategies initiated by the company Cadbury are
discussed below:
Advertising: Television, print media, posters along with social media communication are the
main media of communication for Cadbury in the market. Cadbury Oreo is advertised using
innovative television advertisements and catchy taglines as well. The company use creative
taglines and advertisement and create an impression in the eyes of customers which certainly
insist them to purchase the products in the market. ‘Taste like this feels’ is the current tagline of
the company in the current market. The advertising strategies of the company Cadbury provides
a business message to the consumers that help them to deliver the right type of message to the
consumers in the market (Bailey, and Alexander 2017).
Discount and Promotions: discount and promotion techniques of the company help them to
attract the customers at a greater level. Cadbury Oreo initiates activities like ten per cent discount
on the product or ten per cent extra in each product. Further, it should be noted that the Cadbury
Oreo products are highly demanded in the market at the time of festive seasons. As the company
as positioned the product in such a way that the consumer gifts the product to other people at the
time of festivals. Sales promotion repeatedly helps the company to increase its sales by providing
benefits to the customers (Solomon, et. al., 2017).
Event Sponsorship: event sponsorship is on the element of marketing communication mix that
helps the company to promote its name in different events as well. Like, Cadbury Oreo sponsors
in the Premier League of England, entertainment events etc. Sponsorship in such type of events
makes the company visible in front of the customers that ultimately help them to increase its

Consumer Behaviour and Marketing Psychology 6
sales in the market. Event sponsorships help the company to attract new customers present in the
market as well (Lantos 2015).
Celebrity Endorsement: this is also one of the biggest factors that helps the company in
increasing its sales in the target market. Louis Walsh, Amitabh Bacchan etc. are some of the
famous personality who endorses the product using their goodwill in the market. The brand
image of these famous people present in the market influences the customers to purchase the
Cadbury Oreo product in the market. These celebrities form a part of the reference group that
influence the purchasing decisions of the customers in the target market (Stephen 2016).
Relationship between Consumer Purchasing Behaviour and Marketing
Analysis of Cadbury Oreo
Relating both the aspects, the fact should be noted that the biggest reason due to which the sales
margin of the company is decreasing because the management is unable to understand the actual
preference of the customers from the product. If the expectations from the product adequately
complies with the delivery of the product then repeated sales in developed in the market. Thus, it
can be said that the marketing strategies of the company is not focusing on the factors affect
consumer behaviour in the market (Bamossy, and Solomon 2016). Further, the current marketing
focus of the company Cadbury Oreo is to increase its sales in the market by satisfying the
customers, however the company is somewhere lack behind due to which the sales in depleting.
So, it can be said that the company Cadbury Oreo marketing behaviour and the consumer
purchasing behaviour has a deep relationship that affects the sales of the company if not
managed properly. The company needs to change its marketing strategies in order to grow the
sales of Oreo product in the target market (Bamossy, and Solomon 2016).
Strategic Recommendations
Below mentioned are the recommendations with the help of which Cadbury Oreo can
successfully grow in the target market.
Analysis of Appropriate Target Market: as discussed in the assessment one and two that the
Cadbury’s primary target are children. However, children are highly influenced by their family
and friends present in the market as discussed in the above stanza. So, the company should shift

Consumer Behaviour and Marketing Psychology 7
their focus from children to their parents because if parents are satisfied that the product is good
for their children then definitely they will purchase Cadbury Oreo for their kids which will
subsequently increase the sales of the company (De Mooij 2010). So, it should be recommended
to the company that they should make parents of children as their primary targets so as to
increase the sales of their product among children. This will affect the sales of the company in
dual ways, firstly it will promote the name of the company between middle age people and
secondly it will also increase the likings of the children towards the product (Solomon, et.al.,
2014).
Cost Effectiveness: The fact has been noted that the company Cadbury has reduced to quantity
of the products served by them in market that has increased eyes for the customers in the market.
People prefer purchasing those products that provide them equal utility according to the money
spent for the product. Thus, it should be noted that this could also act as a factor for the decrease
in the sales margin of the company. Either Cadbury should increase the quantity of the products
served by them or they should decrease the price of the Cadbury Oreo. People look at the brand
as an affordable luxury product present in the market, this image of the company should always
be maintain in the market. Cost effectiveness is one of the best strategies that attracts the interest
of the consumer towards the product and motivate them to purchase it as well (Hawkins, and
Mothersbaugh 2010).
Improvement in Customer Loyalty: customer loyalty is the base for repeated sales for the
product in the target market. Improvement in customer loyalty will automatically increase the
sales of the product in the target market. No company becomes wealthy in the market by making
just sales instead repeated sales is the essence of the growth of an organization. So, the company
should implement activities that should help them increase the level of customer loyalty in the
market. The company should adequately research on the consumer purchasing behaviour and
then satisfy them by providing products and services accordingly. Further, Cadbury Oreo should
provide additional benefits to the longstanding and loyal customers in the market so as to
establish a relationship with them in the market. In this way, the company can appropriately
create an adhesive relationship with the customers and influence them to purchase Cadbury Oreo
products in the market.

Consumer Behaviour and Marketing Psychology 8
Feedback: post sales activities have become one of the most influential ways to attract
customers and maintain a fixed relationship with them in the market. The company should start
taking feedbacks from the customers present in the market so as to get to know about their
expectations from the product and are they satisfying them properly or not. In this way, the
company the company will also get new ideas for innovating the product in the market.
Feedbacks will promote the sales as it will help the company to understand the consumer’s point
of view present in the target market. Thus, it should be noted that with the help of above
mentioned four recommendations, the company can easily increase its sales margin in the target
market by satisfying the consumers as well.

Consumer Behaviour and Marketing Psychology 9
References
Bailey, A.R. and Alexander, A., 2017. Cadbury and the rise of the supermarket: innovation in
marketing 1953–1975. Business History, pp.1-22.
Bamossy, G.J. and Solomon, M.R., 2016. Consumer behaviour: A European perspective.
Pearson Education.
Bell, J., 2017. 'Setting the joy free'with Cadbury UK: A CDA analysis of how persuasion is
communicated within Cadbury UK's social media discourse, according to Aristotle's' persuasive
proofs'. Jönköping University. <
https://www.diva-portal.org/smash/get/diva2:1139862/FULLTEXT01.pdf>
Chokshi, P., Shah, H., Arora, R. and Agrawal, N., 2016. Perception of Consumers towards
Cadbury and Nestle. Asian Journal of Research in Marketing, 5(6), pp.8-27.
Dave, U., 2016, April. Impact of social media marketing on FMCG sector in India.
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of Social and Economic Sciences.
De Mooij, M., 2010. Consumer behavior and culture: Consequences for global marketing and
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Dimitriadis, N., Ney, J. and Dimitriadis, N.J., 2018. Advanced Marketing Management:
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of Marketing, 49(7/8), pp.1016-1039.

Consumer Behaviour and Marketing Psychology 10
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