Principles of Marketing: A Comparative Analysis of Cadbury & Lindt

This report provides a comparative analysis of the marketing strategies employed by Cadbury and Lindt, focusing on the 4Ps of the marketing mix: product, price, place, and promotion. The report begins with an introduction to marketing principles and the chosen brands, Cadbury and Lindt, highlighting their market shares and global presence. It then delves into a detailed examination of the target markets for each brand, comparing factors such as age, gender, income, social class, and lifestyle. The core of the report analyzes the product strategies, utilizing Levitt's Model to explore the core benefit, generic product, expected product, augmented product, and potential product aspects of both Cadbury and Lindt. It further compares their pricing strategies, including skimming, economy, and premium pricing. The report also examines the distribution channels (place) used by each brand and their promotional activities, covering methods like cinema, TV, outdoor advertising, print media, and social media. The report concludes with a summary of findings and recommendations, emphasizing the effective application of the marketing mix by Cadbury and suggesting potential improvements for Lindt, and is supported by a comprehensive list of references.

Principles of
Marketing
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Table of Contents
INTRODUCTION...........................................................................................................................3
FINDINGS.......................................................................................................................................3
1) Comparison of Target Market............................................................................................3
2) Product...............................................................................................................................4
3) Price....................................................................................................................................6
4) Place...................................................................................................................................6
5) Promotion...........................................................................................................................7
CONCLUSION AND RECOMMENDATIONS............................................................................8
REFERENCES................................................................................................................................9
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INTRODUCTION
Principle of marketing or Marketing principles are described as ideas that are applied by
companies in order to use effective strategy of market. They are regarded as principles which
should be used by business for promotion of their products and services. It includes 4Ps of
marketing mix such as product, price, place and promotion. In order to complete given
assignment two different organisations has been selected such as Cadbury and Lindt chocolate.
Here, Cadbury was founded in 1824 at England, United Kingdom dealing in confectionery
products. The market share of Cadbury is 40% of its revenue which rise up to 14.4% (Cadbury
eats up market share, 2017). There is rise in global sales by 5.5% to $6.8billion. On other hand,
Lindt was established in 1845 at Switzerland dealing in chocolates, ice-cream and confectionery.
The market share of Lindt was 5.1% where it has sold 5.6% in Europe market (Lindt: growing
faster than the overall chocolate market, 2020). There is trends in growth of market share by
2.8%. There is trends in sales of chocolate items due to high demand of consumers. The main
aim of report is to discuss about target market and comparison of 4Ps of both organisation at
marketplace.
FINDINGS
1) Comparison of Target Market
This is defined as way in which organisation target particular category of their consumer
for providing of goods and services (Alserhan, 2017). The target market should be divided on
basis of different aspects of both organisation which are described below:
Element of Target
Market
Cadbury Chocolate Lindt Chocolate
Age It has targeted age group of 5 to
10 years of children who
consumer more chocolates.
Lindt Chocolate targeted age
group of 5 to 25.
Gender This has focused both category of
gender which are male and
female. Majorly children are
more focused.
It has targeted male as well as
female group of people.
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Personal Disposable
Income
It has targeted middle, upper
middle and high income groups.
It has targeted group of middle
and upper class people for their
products and services.
Social Class This has targeted A1, A2, B1, B2. It has focus on B1 and B2.
Level of Education It can be any or all types of
people.
All types of people such as
educated, uneducated can buy
products and services.
Family Life Cycle The chocolate is preferred by all
sizes of family.
Each and every people like to
have chocolates for their family
so no special category is
focused.
Lifestyles All types of lifestyle people
prefer to have chocolates
(Atwong, 2015).
People belongs from various
category having their own
lifestyle and culture to have
chocolates.
Other Brands Apart from Cadbury, consumer
switch for Nestle, Lindt, Mars
and other.
The consumer easily switch
from one to another brand
which includes Cadbury, Nestle
and so on.
TV programmes They mostly watch cartoons,
comedy circus and others.
They watch business news to
know about competitors.
Hobbies As it has targeted particular group
of people for their product so they
prefer to eat chocolate, read
advertisement and so on.
Lindt chocolate has focus on
different category of people
such as male and female who
prefer to have variety of
chocolates.
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2) Product
The product is first element of marketing mix which is tangible in nature (Beerli-Palacio
and Martín-Santana, 2015). In order to describe about product of two organisation, Levitt's
Model of brand is used which is described below:
Levitt's Model
Element
Cadbury Chocolate Lindt Chocolate
Core Benefit In context of core benefit, Cadbury
provide good taste to their
consumers.
The respective organisation
focus on providing high quality
value for their consumers.
Generic Product The respective organisation carry
shots pack colour scheme. It is
packed in boxed selection tray or
twisted wrapped. The shape is round
as well as square.
Lindt comes in different
flavours like milk, caramel, sea
salt and so on. The colour used
by respective organisation for
their packaging includes gold
and white, red, light blue, pink
and others. It is usually comes
in heart shaped.
Expected Product When consumer buy product they
focus on their colour, shape and
packaging.
The loyal consumer has more
expectation in terms of
packaging, colour used and
shape while buying chocolates.
Augmented Product During time of festival it provide
discounts, offers and others
(Bonaparte, 2019).
This gives different
advertisement at social media,
newspaper at time of festivals
like Christmas, new year,
valentine and so on.
Potential Product With change in time, it changes
packaging to remain competitive and
They have to change their
strategy with change in market
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different from their competitors. for positive outcomes.
In context of functional and emotional level, Cadbury has used innovative strategy and
design their product on frequent basis for attaching emotionally with consumers. On other hand,
Lindt Chocolate has used differentiation strategy in order to be different from other competitors
and providing chocolate in heart shape to connect emotionally. The brand value of Cadbury has
created through position of brand at marketplace by providing 3D experience with premium
offers. They have followed competence as personality types where it is successful brand at
marketplace. In addition to this, Lindt has used creative and innovative strategy for creating
brand value to make premium chocolates for users. Lindt has followed sophistication as
personality types where it present itself at charming and upper class at market.
3) Price
It is defined as amount charged by business for their products and services (Daraganova,
2015). This is essential for brands to set price for their goods. The pricing strategy of both
organisation are described below:
Cadbury Chocolate Lindt Chocolate
Skimming Pricing- This pricing is set for taking
advantage from new product or services. For
example, Cadbury Silk, Oreo and others.
Economy Pricing- The respective organisation
comes with several variants for products for their
consumers. It includes Five star, Eclairs and so on.
Bundle Pricing- In this Cadbury sell multiple
products at low prices especially at time of festival by
providing discounts, offers and so on.
Therefore, they are following all above three pricing
strategy for selling of their goods to consumers.
Premium Pricing- The respective
organisation focus on providing of
premium quality products and services
to their consumers. They have adopted
premium pricing strategy for user due to
high quality nature of products.
Therefore, it follows premium pricing
strategy for their goods and services to
sell high quality products.
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4) Place
This is defined as way through which business sell their products to consumers (Lilien,
Rangaswamy and De Bruyn, 2017). In context of Cadbury channel includes the non retain chains
that helps to reach at large no. of consumers or providing opportunities to consumers to buy
cadbury brands place where they not expect about it. They store their products at large freezers
and at retail stores. It use mass market concept as it expand their distribution outlets in large no.
of places in order to reach maximum number of consumers.
In context of Lindt they by using the differ streams which employed by the organisation
in order to sell the products and services. Respective organisation work on the luxury brand
distribution as there target market is people who prefer costly products.
5) Promotion
It is the way of creating awareness among consumers regarding products and services
(Plank and Canedy, 2015). The different types of promotion method used by both business are as
follows:
Methods of
Communication
Cadbury Chocolate Lindt Chocolate
Cinema In past time, people are more
addicted to watch movies at
theatre which help respective
business to create awareness
among consumers.
It is renowned brand at market
which rarely used such method
of communication for creating
promotion.
TV In this Cadbury promote product
through help of TV where they
take help of celebrity.
It is used by Lindt business to
catch attention of large number
of people in most effective
manner.
Outdoor While conducting meeting with
employees, they uses outdoor like
use of image at road side for
awareness.
They less uses such channel
for their people to create
awareness among users.
Print In newspaper advertisement is The respective organisation
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provided to create awareness. At
time of occasion, large image are
seen at front for catching
attention of large people.
does not prefer to use such
method of communication as it
focus on high group people by
following premium pricing
strategy.
Social Media This is used for arrival of new as
well as existing products.
It also uses social media for
their products and services.
Own Website They does not has their own
website for buying products.
They uses their own website
for creation of awareness
among consumers.
Both organisation uses social media for building brand in mind of consumers. They
provide attractive and unique advertisement for their products and services. They are positioning
in terms of affordable, healthy, luxury, socially conscious and so on.
CONCLUSION AND RECOMMENDATIONS
Both organisations use marketing mix as it provides the detailed description of consumers
their taste and preferences. By acknowledging the taste of consumers organisation can develop
their product as per their disposable income and can be able to choose one of their best
promotional tool such as advertising, sales promotion and many more. Cadbury has been most
successful in application of the 4Ps of marketing as it well known brand and available at every
place in most reasonable price so they able to provide their products in most convenient manner.
In context of Lindt they by conducting through research and by buy raw material in stock can
reduce the price the their products.
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REFERENCES
Books and Journals
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marketing. International Review on Public and Nonprofit Marketing. 12(3). pp.253-266.
Bonaparte, Y. L., 2019. Sustainable outcomes of an experiential learning project in a principles
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Daraganova, Y. S., 2015. PRINCIPLES OF MARKETING COMMUNICATION: ESSENCE
AND TYPES OF PUBLIC RELATIONS. In РЕГИОНАЛЬНЫЕ АСПЕКТЫ
ФУНКЦИОНИРОВАНИЯ ГОСТИНИЧНОЙ ИНДУСТРИИ= REGIONAL ASPECTS
OF THE HOSPITALITY INDUSTRY(pp. 68-71).
Lilien, G. L., Rangaswamy, A. and De Bruyn, A., 2017. Principles of Marketing Engineering
and Analytics. DecisionPro.
Plank, R. E. and Canedy, C., 2015. The Language of Marketing: A Content Analysis of
Marketing Principles Textbooks. In Proceedings of the 1989 Academy of Marketing
Science (AMS) Annual Conference (pp. 258-262). Springer, Cham.
Saunders, S. G., Barrington, D. J. and Sridharan, S., 2015. Redefining social marketing: beyond
behavioural change. Journal of Social Marketing.
Sun, Y., Garrett, T. C. and Kim, K. H., 2016. Do Confucian principles enhance sustainable
marketing and customer equity?. Journal of Business Research. 69(9). pp.3772-3779.
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Online
Cadbury eats up market share. 2017. [Online]. Available through:
<https://www.thebusinessdesk.com/westmidlands/news/2017164-cadbury-eats-market-
share-repositioning-brand>.
Lindt: growing faster than the overall chocolate market. 2020. [Online]. Available through:
<https://www.bakenet.eu/lindt-growing-faster-than-the-overall-chocolate-market/>.
Lindt SWOT Analysis, Competitors & USP. 2019. [Online]. Available through:
<https://www.mbaskool.com/brandguide/food-and-beverages/773-lindt.html>.
Marketing Mix of Cadbury | 4Ps of Marketing Mix of Cadbury. 2018. [Online]. Available
through: <http://heartofcodes.com/marketing-mix-of-cadbury/>.
Marketing mix of Lindt. 2019. [Online]. Available through:
<https://www.marketing91.com/marketing-mix-of-lindt/>.
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