Marketing Mix Strategies: Cadbury and Lindt Competitive Analysis

This report provides an in-depth analysis and comparison of the marketing mix strategies employed by Cadbury and Lindt, two leading confectionery and chocolate brands. It examines their target markets, product offerings, pricing strategies, distribution channels, and promotional activities. Cadbury targets a broad demographic with varied product lines and pricing, while Lindt focuses on a more affluent market segment with premium products. The report highlights the strengths and weaknesses of each company's approach, concluding that both have effectively utilized the 4Ps of marketing. It suggests potential improvements for both companies to enhance their market share and profitability. Desklib provides access to this assignment solution and other valuable study tools for students.

Principle
of
marketing
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Executive summary
The main aim of the report is to conduct a in-depth research of marketing mix of two competitive
companies. In this report the two selected companies for the research is Cadbury and Lindt. Both
are the reputable confectionery and chocolate brand. This report covers the comparison of
marketing mix of Cadbury and Lindt. Different secondary resources are used for the research of
marketing mix of companies. The results have been found out that both the companies has
effectively applied the marketing mix. Lindt and Cadbury can improve its marketing mix
strategy to increase profitability and to gain large market share.
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Table of Contents
Executive summary..........................................................................................................................2
Introduction .....................................................................................................................................4
Main body........................................................................................................................................4
comparison of target markets ................................................................................................4
Products..................................................................................................................................4
Price .......................................................................................................................................5
Place and distribution.............................................................................................................5
Promotions .............................................................................................................................6
Conclusion ......................................................................................................................................7
References ......................................................................................................................................8
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Introduction
Main aim of the report is to carry out a detailed research about competitive brands their
values and position in market. A detailed analysis of effectiveness of marketing mix to the
competitive brands. Two competitive company for research is Cadbury dairy milk and Lindt
excellence. Cadbury dairy milk is British brand that manufactured milk chocolate. Now the
company is selling chocolates in global market including Pakistan, china, Sri Lanka and India.
Market share of the Cadbury is over 70% in confectionery industry. Lindt is a Swiss chocolate
brand famous for chocolate truffles and chocolate bars(Thabit and Raewf, 2018). Annual sales
of the company is near $4.3 billion. Approximate worldwide market share of the company is
60%.
Main body
comparison of target markets
Market segment of Cadbury is based on demographic, psychographic and behavioural
aspects that includes income, occupation and age factors. Cadbury dairy milk make its target
group bases on age, lifestyle, gender. Cadbury as most famous chocolate brand focus to target
kids and youngsters. Age criteria for target market is 5 to 10 years kids. But Cadbury milk
chocolate is popular in people of all ages, genders, occupations, regions and cultures. Cadbury is
using mass targeting including all age people with any kind of occupation and for all income
group. As for Lindt excellence is a most reputed confectionery and chocolate brand of
Switzerland. It is famous for selling most quality chocolates and sweets. Company is targeting on
only rich and elite people and market, because they will not concern about its high price.
Segment market for company is basis on income and occupation factor. Lindt positioned the
brand as a luxury Swiss chocolate to target affluent and rich people(Morgan and et. All., 2019).
Products
Cadbury is a leading company in confectionery and chocolates industry. It is the most
famous and favourite chocolate brand in the world. Products of Cadbury are rich in milk content
as compare to its competitor chocolate brands and the ingredients used are vegetable fats, fruits
and nuts, sugar, cocoa, coco butter. The best and competitive part of the Cadbury is that its
chocolates are available in every size. Dairy milk has started its first higher milk consistency
chocolate. Company innovate and bring variation in chocolates like dairy milk, dairy milk fruits
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and nut, dairy milk bubbly, dairy milk caramel , dairy milk crackle and many more. Lindt is also
a famous Swiss chocolates brand but it is producing and selling only rich quality chocolates and
sweets but targeting only elite and upper social class people. Company serves variety of
chocolates and sweets with various flavours. For example it serves chocolates varieties like
Lindor strawberries & cream, Lindor milk orange bar, Lindor white block, Lindor mango &
cream. It offers white, milk chocolates and dark chocolates with fruits, nuts, spice. Lindt also
serves desserts and hot chocolates with creamy and smooth textures(Išoraitė, 2020). Company
also offers Lindt sugar free milk chocolates, sugar free dark chocolates, Lindt fruit sensation
chocolates etc.
Price
Cadbury follow different price policies for its different products. Cadbury has various
types of chocolates and company follow different price for each product according to the target
group decided by company. For example Cadbury chocolates like perk, eclairs, five star is
available at lower price. Dairy milk is a premium quality product of Cadbury hence it is available
in high as well as in low price. Dairy milk is also a choice for gift therefore it sales high volume
of product at premium price. On contrary Lindt is offering rich quality sweets and chocolates
hence premium price strategy is follows by the company. However the company faces some
competition by its rival brand but does not get affected gravely because of it high quality
products. Premium price strategy of product helped the company to separate itself from other
rival brand. Lindt's chocolates and sweets are loved by kids and adults. Company offers various
types and size of its product to the target group of the brand that is affluent and elite society, who
do not care about money before buying luxury products.
Place and distribution
Lindt is a popular and recognised brand operating with 410 store located in more than
100 countries like America, India, china, UK, France, Africa, Mexico, Russia. Lindt started its
journey as a small sweet shop and then continues to develop as establish brand. Now Lindt
operates via headquarter in Switzerland and in a short time period company created niche market
for its luxurious and quality products(Morgan and et. All., 2019). Company updated its
manufacturing technology which helped it in increasing sales by reducing time by 90% of
creating chocolates. Increasing sales helped the company in establishing distribution and
marketing channel in global market. Then company expanded and set up 12 factories in regions
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like united states, Italy, France, Austria, Germany. These subsidiaries in different countries are
helpful in maintaining its efficient supply chain(Parola and et. all, 2018). Now Lindt
chocolates are available at showrooms, malls, airports, and also on online website of the
company. The distribution channel of the Cadbury is excellent and widespread. Distribution and
supply chain is strong at urban market but it is weak at rural market because of low demand of
Cadbury product over there. Cadbury is a prestigious and global brand operating in 200
countries. Cadbury chocolates are manufactured in England and then are distributed across the
world (Marketing mix of Cadbury, 2018). Company's supply chain is described as follow:
Company
↓
C&F agent
↓
Distributors
↓
Retailers
↓
Consumers
Because of large numbers of channels, Cadbury has high distribution cost. But overall company
has powerful presence in the market so customers can easily purchase Cadbury product from any
local retail shop.
Promotions
In past Cadbury used campaigns to promote its product. In present scenario company
adopt different promotion methods for each product exactly like price policy. For example
bournville and Cadbury celebrations are promoted as a gift item at market. People buy these
product to gift at special occasion(Jarek and Mazurek, 2019). Perk chocolates is promoted to
keeping youngsters group in mind and Eclairs is as low cost product, Bournvita is a healthy
choice and so on. Company has positioned itself as a affordable brand to all people of all age
group and income. Company use BTL marketing strategy that is hoardings, flex banners and
posters on shops, hotels, streets and roads. These methods mage its high brand recall and
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whenever customers will buy chocolates they will surely recall Cadbury. Cadbury also use ATL
marketing strategy by advertisement on television and radio(Ali and Anwar, 2021). Company
use tag lines and slogans and sometimes songs to advertise its products which makes it more
attractive to kids and adults. Lindt is also a global chocolate and sweet brand that is known for it
supreme brand recall. Company has undertaken and follow various marketing plan to promote its
products. Company promote through advertise campaigns with the help of print medium,
electronic mediums, television and billboards. As the brand has positioned itself as luxury brand
to its target audience that is affluent and elite society, it also make huge investment in marketing
policy. Lindt also advertise through posters on big showrooms and malls and at airports.
Company is also active on its social account like Facebook, Instagram, twitter and YouTube.
Lindt has used celebrity endorsements methods for marketing, for example to create awareness
among customers Lindt has made Roger Federer as brand ambassador of the company.
Conclusion
From the above research it can be concluded that Cadbury and Lindt both company has
applied the 4P's of marketing mix in very well manner. Cadbury has adopted different types and
shapes of product mix at high and low price to target its all aged and income group customers.
Company has chosen this marketing mix strategy because this is most effective way to
positioned itself to gain large market share(Camilleri, 2018). Cadbury can improve its market
mix strategy to lower down the distribution cost and ensure large profitability. As for Lindt,
company has targeted rich and affluent society with offering luxury and quality products at
premium price. This marketing mix strategy helped the company to made itself as recall brand
and most prestigious confectionery brand of Switzerland. The company can make improvements
in its marketing mix by producing chocolates and sweets for middle class society at lower
prices. It will help the company to attract large number of customers and will increase market
size of the company.
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References
Books and journals
Thabit, T. and Raewf, M., 2018. The evaluation of marketing mix elements: A case study.
International Journal of Social Sciences & Educational Studies. 4(4).
Išoraitė, M., 2020. Marketing mix features. Ecoforum Journal. 9(1).
Camilleri, M.A., 2018. Market segmentation, targeting and positioning. In Travel marketing,
tourism economics and the airline product (pp. 69-83). Springer, Cham.
Jarek, K. and Mazurek, G., 2019. MARKETING AND ARTIFICIAL INTELLIGENCE.
Central European Business Review. 8(2).
Morgan, N. A., and et. All., 2019. Research in marketing strategy. Journal of the
Academy of Marketing Science.47(1), pp.4-29.
Ali, B. J. and Anwar, G., 2021. Marketing Strategy: Pricing strategies and its influence on
consumer purchasing decision. Ali, BJ, & Anwar, G.(2021). Marketing Strategy: Pricing
strategies and its influence on consumer purchasing decision. International journal of Rural
Development, Environment and Health Research. 5(2), pp.26-39.
Parola, F and et. all, 2018. Marketing strategies of Port Authorities: A multi-dimensional
theorisation. Transportation Research Part A: Policy and Practice. 111, pp.199- 212.
Online
Marketing mix of Cadbury, 2018. [online] Available at:
<https://www.marketing91.com/marketing-mix-of-cad>
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