MG412 Principles of Marketing: Cadbury vs Lindt Chocolate Report

This report provides a comparative analysis of the marketing strategies employed by Cadbury Dairy Milk and Lindt Excellence chocolate brands. The report begins with an introduction to both brands, highlighting their market presence and product offerings. It then delves into a comparison of their target markets, identifying the demographics and consumer preferences each brand caters to. The core of the analysis focuses on the 4Ps of the marketing mix: product, price, place (distribution), and promotion. The pricing strategies of both brands are examined, considering factors such as skimming, cost-plus pricing, demand-based pricing, and competitor analysis. The report also discusses the distribution strategies, detailing how each brand reaches its consumers through various channels. Furthermore, the promotional strategies, including the use of television, print, internet advertising, sales promotions (pull and push strategies), and consumer sales promotions, are explored. The report concludes with recommendations for improving brand marketing, emphasizing the importance of innovation, customer focus, and quality control, and summarizes the key differences in the marketing approaches of Cadbury and Lindt, offering insights into their success factors.

Management
Principles of Marketing

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Executive Summary
This report has been based on the comparison of the two different brands that involved
Cadbury Milk Chocolate and Lind Excellence Milk Bar Chocolate. The research has been
conducted on both of the brands as the marketing of both the brands has been described in
this report. The 4P's of both the brands has been briefly described in this report. The several
recommendations for improving brand marketing has been also described in this report. Both
the brands are related to the chocolate and have the same description as per the features.

Management
Contents
Introduction................................................................................................................................3
Comparison of target markets....................................................................................................4
Pricing strategy of brands...........................................................................................................6
Cadbury Milk Chocolate............................................................................................................6
Place (Distribution of brand)......................................................................................................7
Promotion of Cadbury and Lindt...............................................................................................7
Recommendation and Conclusion..............................................................................................9

Management
Introduction
This report contains a description of the two brands of chocolates, Cadbury Dairy Milk and
Lindt Excellence Milk Chocolate Bar. Cadbury has manufactured the brand of milk chocolate
that is Cadbury Dairy Milk which contains a large number of various products. It was first
made in 1905 in the United Kingdom and was ranked as the bestselling milk chocolate in
2014. The manufacturer of this milk chocolate is Hershey company. It has a total share of
70% of the market and is the second-largest company in the world of the global market
(Schmidt, et al., 2015).
The 4 P’s of marketing mix of both the brands will be discussed in this report. As this is one
of the best marketing strategies in the overall marketing management. This report will include
different aspects of marketing strategies followed by the companies and different process
related to the marketing process. Lindt Excellence Milk chocolate bar having various flavours
like vanilla, butterscotch with smooth and soft chocolates. There are more than 100
specialities of this chocolate bar. It has gained almost complete share in all of the markets of
the world. This report aims to analyse the four Ps of both these brands. The report will
discussed the overall description of the selected brands and their aspects.

Management
Comparison of target markets
Cadbury Milk Chocolate
This chocolate target kids with the age group of 5 to 10 years as this age group are more
attracted towards the chocolate as compared to another confectionary (Aghazadeh, 2015).
Over the years, the group of target consumes are shifted from kids to adults as this is used in
the celebrations of different festivals.
Lindt excellence Milk bar chocolate
The target market of Lindt milk Bar Chocolate are women aged 35 to 64 years old as the aged
between 24-44 years women lest like this chocolate. As compared to men, women are
included as the main target audience for Lindt excellence milk bar chocolate.

Management
Evaluation of products and their brand values –
Cadbury dairy milk has an impulse category of flavours like a perk, celebrations, temptations,
gems, dairy milk silk, eclairs etc. The first milk chocolate to eat was made in 1897 by
Cadbury another famous flavour of Cadbury fruit and nut was introduced in 1928. For
generating the good financial performance of any business, brand plays a very important role
(Doole and Lowe, 2008). If the brand is strong, it will help the company to differentiate
themselves in the competitive market and help them to evaluate that why their product is
more able to fulfil the needs the desires of the customers. To run a successful business,
companies are now able to identify the importance of brand. Cadbury is the most trusted
chocolate brand in today’s world.
Lindt Excellence Milk chocolate bar known as Lindt in simple language was founded in
1845 by confectionery company. This company mainly deals with three products chocolate,
confectionery and ice-cream. It is a highly popular and very successful brand worldwide.
This chocolate is available in a variety of flavours like liqueurs, petit, desserts and ice-cream
(Ramli, 2017). Many Lindt chocolate cafes were introduced for the customers where they can
easily order a different type of food drink and desserts. It is the worldwide delicious
chocolate made up with the high quality of ingredients like cocoa beans. It is also available in
a dark chocolate variety. The favourite and the famous milk chocolate bar in Lindt is Maxi
Balls.

Management
Pricing strategy of brands
Cadbury Milk Chocolate
Skimming- Skimming is a technique where the prices of the product are set very high. In the
case of inelastic demand, this technique is most effective
Cost-plus pricing –This technique of cost-plus pricing is more reliable and accurate to
maximise the profits as it needs to be accounted for accurately
Demand-based pricing –The prices are set by the Cadbury depending on the customer's
demand. This will help the company to maintain a good reputation and will give a good
output of more consumers (Doherty, et al., 2015).
Placement strategy-This strategy means that the chocolate is sold to every shop bakery and
even too medical stores. The main aim is to provide the chocolate to all kind and type of
customer.
Lindt Excellence Chocolate Milk Bar
High price-Lindt has set high prices because of the good product quality which also helps the
company to distinguish themselves from the rest of the brand.
Competitor analysis –Lindt has used the technique of competitor analysis for its pricing
strategies.
Different pricing – Lindt has used the strategy of changing price sometimes for the same
product depending on the elasticity of the demand (Hannah, et al., 2014).
Discount pricing – In the world of competitive market discount pricing is the best technique
for the growth of the brand. It is also due to the short of cash or when the company wants to
increase its sale quickly.

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Place (Distribution of brand)
Cadbury Chocolate Milk
Before distributing any product, it goes through the process of quality check. At first, it is
transferred to the staff rooms and then to the shops. The company of Dairy milk aims to sell
chocolates directly to the wholesalers and retailers (Freeman, et al., 2014). Cadbury
chocolates are distributed all over the world. The biggest buyers of Cadbury chocolates are
women and children. There are around 2100 distributors and 4,50,000 retailers of Cadbury.
Lindt Excellence Chocolate Bar
An intensive distribution strategy is used by Lindt in which the consumers purchase the
product based on their decisions. It also uses the pull strategy for the distribution of the
products to the consumers. By offering discounts and offers also distribution can be done.
Lindt has established itself as the leading distributor of a variety of fine chocolates across the
world. Talking about the present times it is available in a wide range in more than 120
countries.
The most important thing is to select the location while distributing the product. An example
of a Lindt boutique is in the fifth avenue in New York city. Lindt's company has bought 150
retail stores across different countries (Wongleedee, 2015). Distribution means the network
of different organizations that goals to make available the product in the market. It gives the
customer to purchase it whenever and from where they want.

Management
Promotion
Cadbury and Lindt
Brand plays an important role in the market of chocolate both the companies use the
technique of promotion through TV, campaigning, magazines, newspaper, internet, radio.
Using these different types of promotion strategies helps the company to increase its sale.
The main sales promotion strategies are-
Pull strategy which includes free sample, coupons etc. This is the best strategy used by both
the companies for the promotion of sale (Todorova, 2015). This strategy can be used properly
when the demand for the product is high.
Push strategy –This is the other strategy used for the promotion of sales by both brands. In
this strategy, the product is distributed through different channels in different ways like the
reseller used the strategy by offering a discount to sell the product (Fan, et al., 2015). It is
more appropriate when the loyalty of the brand is low and the new products are to be
launched in markets it is also good when the customer is familiar with the product
Consumer sales promotion – There are different types of consumer sales promotion like a
loyalty program, coupons, free products, sampling and free trials, rebate etc.
Promotional pricing-One of the most used techniques for the promotion of the product is
lowering a product selling price.
Sampling technique-This technique includes door to door newspaper sampling and mobile
sampling.

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Recommendation and Conclusion
To execute a successful business plan and effective strategy has to be made by turning them
into opportunities and for this, the Cadbury and Lindt must think carefully over all the
external factors and by considering them.To achieve competitive advantage it is must
continue investing new innovative ideas of the product (Sinapuelas, et al., 2015). It is
essential for both the brands to come up with more and more innovative and creative plans
and new promotional techniques for the awareness of the brand and to decrease the
competitors in the market. It should also focus on the needs and desires of the customers and
the healthy lifestyle by producing low-calorie products. Before distributing any product, it
should go through the process of the quality check (Bahadir, et al., 2015).
From the above report, it has been analysed that Cadbury and Lindt plays a very important
role in the market of chocolates. Various promotional strategies also allow expanding the
business successfully in the market. Discussed above the four Ps that is a product, price, place
and promotion. All these four Ps has an important place individually in the success of any
business plan. To run a successful business, companies are now able to identify the
importance of brand.
For generating the good financial performance of any business brand plays a very important
role. If the brand is strong, it will help the company to differentiate themselves in the
competitive market and help them to evaluate that why their product is more able to fulfil the
needs the desires of the customers. Various strategies can be used properly when the demand
for the product is high. Before distributing any product, it should go through the process of
quality check.

Management
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