Marketing Report: Cadbury Dairy Milk's Strategic Analysis & Management

This report provides a comprehensive analysis of the marketing strategies employed by Cadbury Dairy Milk, a prominent British multinational confectionery company. It delves into the core concepts of marketing management, including market orientation, social marketing, and holistic marketing, examining how Cadbury implements these philosophies. The report details the marketing mix, focusing on product, place, price, and promotion strategies for Dairy Milk. It also explores the product life cycle, branding, and the dynamics of the marketing environment, using PESTLE analysis to understand external factors. Furthermore, the report discusses the impact of political, economic, social, and technological factors on Cadbury's marketing strategies, providing insights into the brand's approach to performance marketing and its competitive positioning in the market. The report also looks at relevant theories about profitability, market share, and sustainability.

Marketing management
3500 words +- 10%

Table of Contents
INTRODUCTION...............................................................................................................3
TASK 1.............................................................................................................................3
Task 2..............................................................................................................................8
Dynamics and Trends in the Marketing Environment................................................8
Task 3............................................................................................................................12
Relevant theories about Profitability, market share and sustainability -.................12
Conclusion ....................................................................................................................16
References....................................................................................................................17

INTRODUCTION
Marketing management is determined the process where the needs of
people are fulfilled. It states as some basic needs such as clothes, food, home,
etc. It is the systematic way to aims on the working activity to form the
marketing orientation. It is a way where to examine the competitive and
economical measurement. It considers the marketing models and analysis (Dyer,
Song, 2015). Present report is about Cadbury which is British multinational
confectionery company. Cited firm has different type of products that are
delivered to customers. In this context, this report is focused on particular brand
that is Dairy Milk. It is essential which invest in searching and collecting data of
customer which are analysed over the organisation in market. Marketing
management increases needs and demands according to trends in an
organisation. An organisation formulates and overlook on organisation and it
examines the environmental and competitive area (Ball, et.al. 2012). Further,
brand has goal to make over the business with strength weakness threats and
opportunity. It works on the basic concept which beats the competitors in
market. It is the successful business which aim to develop lots of marketing
skills and they challenge promoting the future progress in the organisation.
TASK 1
Marketing management is system to manage marketing strategy and the
position to understand the appreciation value of market. It gives opportunity to
perform and learn about work and their roles and responsibilities with high
qualification. This process focus to understand the needs and choice of customer
(Bejou, Palmer, 2013). The cited firm build customer relation to satisfy the
needs of customer and to be competitive nature at the entire market. Their
knowledge are highly qualified by workers and the methods are framed for the
employers to build successful career (Baker, Saren, 2016). The cited firm

consider the marketing philosophy and the various concept of the marketing
strategy. It means to seamless where to simplify the high range of skills and
capabilities. It considers criteria for marketers and it generates the methods or
techniques for benefit of objectives marketing. It leads to market place and
judge the performance which gives the opportunity for the business and several
activities such as promotional Campaign.
There are different type of marketing philosophy that can be implemented with
the help of which business can be effectively evaluated. In this context, below
given are philosophy of marketing for Cadbury:
Market orientation – It is the traditional desires of the customer which
is most effective and expressed for the development of an organisation (Bozarth,
Handfield, 2016). Cadbury was developed in the year 1824, since then it has
developed a strong brand image. In today's world, it is known to be the most
recognised brand around the world. It also considers the improvements for
awareness and understanding their customers and delivering their services
accordingly. It is very effective and it meets the expectation with business and
customer requirements.
Social Marketing strategy – It is one of strategy where it becomes
special in the market and it targets to lead analogues to judge. The use of
internet is increasing drastically and cited firm understands this opportunity and
make sure that they convey information through different social sites (Carraher,
Paridon, 2015). In order to make sure that proper information and different type
of offers that are provided to in Dairy Milk. This is generally highly effective
during the time of celebrations. The target of marketing is to modify and
maintain the behaviour of customers and to develop positive perception.
Holistic Marketing – This can be determined as a concept that is based
on the development, implementation and design in relation with processes,
activities and programs. There are four different set of components that are

considered in this marketing. Cadbury make sure all these components are used
in order to develop high quality services. In this context, below given are these
four components:
Relationship marketing: Cadbury make sure that they develop strong
relationship with all their stakeholders like customers, suppliers, employees, etc.
As per the brand which is Dairy Milk is helpful to develop strong relationship
with customers by providing them with high quality services and the price that
is considered is also low. These are helpful to develop strong relationship with
stakeholders (Coombes, Nicholson, 2013). In other words, it is the policy which
is based on customer honesty and maintain their loyalty. It increases the
interaction level to maintain relation for long period of time. It focuses to build
the relation strongly and maximise the value of customer (Chaston, 2014).
Internal marketing: Cadbury considers their workers to be their first
customer. There are different type of departments in which there are people who
are involved in development of Dairy Milk products. Further, cited firm
understands the requirement of customers and this becomes a win-win situation
(Dyer, Song, 2015). In order words, it is one of most important instrument for
an organisation to achieve target and it is based on the strategies they allow
following approach. The employer's appreciation, attitudes and their effort
where the quality of the product they present to the customer.
Socially responsible marketing: Cadbury is concern with the society.
They make sure that services which are provided to people do not have any type
of harm to public. Further, they have strong CSR policies and leading
programmes like Cadbury Cocoa Partnership and Purple Goes Green.
Integrated marketing: This can be determined as a seamless and unified
experience for customers in order to have effective interaction with the
organization (Chan, He, Wang, 2012). In other words, it is being consistent
towards the marketing strategies that are implemented by the organization

Marketing Mix: There are the four basic elements that are involved in
this approach. Below given are marketing mix done for Cadbury Dairy Milk:
 Product – Dairy Milk was developed in the year 1905. In spite of being
so many years, this chocolate bar has developed a strong image and
positive perception among the hearts of people around the world. With
time there are different type of flavours that are introduced like fruit &
Nut, jelly popping candy, whole nut, etc. These products consist of
energy, fat, saturates, salt and sugar.
 Place – The distribution of Cadbury Dairy Milk is widespread. More
specifically, it has strong presence in all over Urban areas and there are
mostly all markets around the world in which they have established their
business.
 Price – When the quality of product increases, then price also increases.
There are different range of products that are provided that also with
diverse set of price rates. Almost all the products that are available at
very high price are also available in low price with low quantity. More
specifically, the rate of Dairy Milk starts from £0.50/unit and
£1.11/100g.
 Promotion – There are different type of promotional strategies that are
implemented by the organization. In this context, it includes tools like
television, radio, newspaper, magazines, social media, etc. in which
Cadbury Dairy Milk is promoted.
Performance Marketing – It is the process where the advertisement
plays role on the basis of performance. It receives large portion of sales and this
is done by interacting the peoples where the price are set. It creates as opposed
and to sell their products and the services (Cova, Kozinets, Shankar, 2012). It is
based on the cost which it considers the special feature with the effective
performance so it easy to get the value of the product. It is based on technique

of cost per click which is the best way to raise the production and attract the
customer easily. It is to advertise on website and the strongest method where
simply it based on demand and the supply of the products in the cited firm.
Product Life cycle: There are four different type of stages that are involved in
this cycle. It is important that changes are made at each level so that they will be
able to develop strong customers base for their product and services. Below
given are different stages for product life cycle for Cadbury Dairy Milk:
Introduction: It was in the year 1905 when Dairy Milk was launched in
the market. It was able to develop a unique position in the mind of people
because of milk chocolate. Then it was in the 1990s when this brand was known
to be real taste of chocolate. In 1994 it repositioned itself and made it just not
for children's but for adults as well.
Growth: In the year 1998, the growth of brand started dealing with
popularising consumption in social context. There were different set of
campaigns and they mainly focused on increasing penetration levels. Different
type of campaigns were helpful enough to make sure that they develop positive
perception for Dairy Milk.
Maturity: There were diverse set of issues that were faced by this brand because
of worm controversy. Due to this, the sales for Dairy Milk reduced to 30%. In
this context, they had to recall batch of chocolates. However, they developed
strategies in which they redesigned the packaging and raised the sales.
Decline: This stage occurs when the strategies that are implemented by
organization are not effective enough. In this context, changes are make so that
they will be able to understand the issues and take proper steps or else the
company will be closed down. The brand has not reached this stage. This stage
occurs when all operation of cited brand is dissolved.

Branding: This can be determined as the process that is helpful to create
unique identity in terms of image, name, etc. In other words, it is the perception
of people towards the product or services that is delivered by the organization.
Cadbury Dairy Milk has strong brand recognition. People around the world
know about the services and products that are delivered by this firm.

Task 2
Dynamics and Trends in the Marketing Environment
To understand the marketing environment and its trends and dynamics of
Cadbury Dairy Milk, which is a FMCG and makes the product reach to
customers quickly. Company must have a knowledge of internal and external
forces in marketing environment (Eastman, Iyer, Thomas, 2013). FMCG
department wants to grow more in the market with the confectionery section.
This is a fast moving consuming goods that means a short life products. So
while preparing marketing strategies must consider these facts. Business
environment plays also an important role in the company’s portfolio. There are
different set of strategies that can be implemented with the help of which cited
firm will be able to understand the external factors that affects the firm:
PESTLE: Macro environment includes the social, economic, political
and legal forces. Demography and technological forces also affect the macro
environment (Foxall, 2014). Macro factor can be defined with the help of
PESTLE analysis. It’s expended from denotes that are-

Political factor: Different countries have diverse set of policies that are
implemented by different markets. In this context, it includes monitory, fiscal,
tax rates, interest rates, etc. When there are changes in these policies, then it
affects the business negatively. For example, when the tax rate of any country
raises, then the price of Dairy Milk will also increase and then the purchase will
get affected (Hutt, Speh, 2012). On the other hand, if the tax rates are low, hen
firm will be able to deliver their products at low cost. This way more and more
customers will purchase the product.
Economic factor: This factor includes inflation and recession. In a
country, if there is any such type of situation faced, then the purchasing power
of customers gets affected. The sales of Dairy Milk get negatively affected. In
this context, it becomes important for the organization to make sure that they
make use of strategies that will enable to maintain their sales of business.
Social factors: Changes in taste and preference of customers take place
frequently. It is important that the organization conduct market research so that
they will be able to understand the preference of customers (Mullins, Walker,
Boyd, 2012). Accordingly, changes in Dairy Milk should be developed so that
they will be able to develop positive perception among mind of customers.
Technological factor: There are different type of equipment's and
machinery that are used by Cadbury for developing Dairy Milk. However,
changes in technology take place frequently and it is important that proper
changes are implemented in technology so that better and high quality services
are delivered to customers. On the other hand, if new or updated technology is
used, then it becomes issue for the firm as other organization will grab
customers.
Environmental factors: The headquarters of Cadbury build on a rives in
which once in a while they have to dispose waste material (Shani, Chalasani,

2013). However, with the changes in law, disposal of waste is now highly
expensive.
Legal factors: There are different type of laws that are implemented by
different markets. It is important for Cadbury Dairy Milk to make sure that they
follow them all or else it develops negative impact and customers will develop
negative perception towards the products and services that are delivered by
them.
Distribution channel: Cadbury make use of multiple distribution
channel strategies. More specifically, they make use of indirect marketing
changes in which they use level 3. In this context, it includes retailers and
intermediate distributors. This type of distribution strategy is used for
distributing Dairy Milk to ultimate customers. Further, Cadbury provide their
customers with fast moving consumer goods, these are products that are sold
quickly and it is relatively of low cost. Moreover, there numerous supermarket
that deliver the products of Cadbury. In this context, they also make use of
vending machines that has helpful to attract customers and to deliver their
services.
Competitors analysis: There are many organizations that provide their
customers with similar products and services. In this context, it includes
companies like Mars, Galaxy, Bounty, Aero, etc. These brands make use of
different set of strategies that are helpful to make sure that they achieve their
goals and objective and in developing strong customers base (Perreault, Cannon,
McCarthy, 2013). The entry to this market is not that easy as there are different
type of policies that has to be considered and so it can be stated that it becomes
difficulty to get into this market easily. There companies which deliver their
products at low price and this is a type of factor that changes buying behavior of
customers. People tent to make use of services that are delivered to them low
price. However, there are also people who prefer to purchase products that are

delivered to them with high quality (Baines, Fill and Page, 2013). In this
context, Cadbury Daity Milk makes proper research that helps them to know
preference of services and accordingly services are delivered.
The maximum share is gained by Cadbury with compared with other
companies. In this context, it can be determined that the perception of cited firm
is positive with compared with other companies. There are different set of
strategies that are implemented by the organization in order to makes sure that
they will be able to understand requirement of customers and accordingly
services are delivered.
Organizational strategies and capabilities: Main focus of Cadbury
Dairy Milk is to deliver their customers with high quality services. Even if they
provide their products for low price but the delivery of each of the product will
be made with high quality (Wilson, Gilligan, 2012). Further, it includes to
provide equal value to all people whether, they are customers, suppliers or
employees. Moreover, cited brand is doing exceptionally well when compared
with other brands. The type of product improvements that they have made is
highly beneficial for the organization. Further, they understand their employees
and identify the issues that they are faced by them and accordingly they are
provided with proper training so that they will be able to overcome them. Main
competitive advantage gained by cited firm is by delivering high quality
services and making use of promotional tools that help them to deliver proper
information and to develop positive perception among mind of customers
(Eisenberg, Goodall, Trethewey, 2013). Firm has divided their customers in
terms of different segments like psychographic, behavioural and demographic in
order to segment Dairy Milk. They deliver their services accordingly that makes
them to attract more and more customers.
Summaries: As per the analysis done, below given are the SWOT analysis of
Cadbury Dairy Milk. This will enable to identify the areas in which they are

lack and areas that are effective enough to gain huge profit. Below given are the
SWOT analysis of Cadbury Dairy Milk:
Strength:
 It has well established brand when compared with other organization
around the world.
 Have skilful employees who support the organization to gain huge
profit.
 High focus on quality of product.
Weakness:
 Cadbury Dairy Milk increases dental problems.
 This brand have limited shelf life (Chaston, 2014).
 Competitors of this brand has better international experience.
Opportunities:
 There are many new products that can be developed.
 Many potential markets in which business can be expanded.
 Raising acceptance in globalization in different sectors.
Threats:
 High competition from different brands
 People who do not consume Cadbury Dairy Milk products due to high
calories
 Negative impact due to wrong publicity (Baker, Saren, 2016)
Task 3
Relevant theories about Profitability, market share and
sustainability -

Marketing environment has great impact on the market, and marketing
department make their strategies according to this. To understand marketing
environment there are many theories which gives correct view or sense of
marketing which is helpful to accomplishments of marketing goals (Carraher,
Paridon, 2015).
As a marketing manager of Cadbury Dairy Milk, I will make use of different
type theories that will be enable to make sure that proper evaluation is made.
This will help to understand where the brand standing and what the future
position will be. To undertake the market with the products or desired product
by the people, marketing department must have a relevant field work,
determined marketing person (Bejou, Palmer, 2013). In a confectionery segment
there are tough competition in the market. Because there are many other brands
are ready to give competition. There are some marketing theories that will be
conducted and they are as follows:
Ansoff Matrix: The Ansoff Matrix is used to develop strategic options
for businesses. Like SWOT it is also common tool to analysis the market. It can
be divide into four part of strategies which are as follows:
 Market Penetration: This strategy focuses on
increasing the volume of sales of existing
products to the brand's existing market (Wilson,
Gilligan, 2012). This is done by understanding
the issues that are faced at each of the products
and accordingly steps are taken with the help of which customers are
attracted.
 Product Development: In this part strategy focuses on reaching the
existing market with new products (Mullins, Walker, Boyd, 2012).
 In order to make use of this strategy, firm will conduct market research
that helps to identified and come up with new products.

 Market Development: This strategy focuses on reaching new markets
with existing products. There are many markets around the world that
firm can enter into. However, proper evaluation should be done as the
taste and preference at different markets will be different.
 Diversification: This strategy focuses on reaching new markets with
new products.
Among all these strategies, Cadbury Dairy Milk should make use of
product development. This will help the organization to come up with new
product line ion Dairy Milk that will be helpful enough to attract more and more
customers (Chaston, 2014).
In order to raise profitability there are different set of strategies that can be
implemented which are as follows:
Overview- The key area that can help drive profitability are reducing cost,
increasing turnover, increasing productivity and increasing efficiency.
Manage costs- One of the most important step of the strategy is to manage the
cost. If cost is managed, profit can be accessed. Cost management can drive
profitability of Dairy Milk (Cova, Kozinets, Shankar, 2012).
Key point to consider the cost area-
1. Suppliers- Getting the best deals from the supplier is also works as
support. There are many suppliers who can deliver materials and firm
should make proper negotiation so that price can be reduced and
products can be delivered at low cost.
2. Finance- It is an important thing to consider in any business (Hutt, Speh,
2012). In order to perform any type of activity, it requires finance and
management should be able to manage it also services and products can
be improved.

3. Production- All the wastes that is occurred should be determined and
employees should be provided with proper training so that they will be
able to deliver adequate services to their customers.
Increase sustainability of business- Making operation sustainable is
another lens for creating a better company. Sustainable development is about to
making business decisions that provide economic development. The
sustainability provide motivation and that motivation should not only come
from regulators but should from the desire to make company as efficient,
productive, profitable, ethical as it can be.
A sustainability strategy includes –
 Reduce energy costs
 Enhance brand reputation and improve public relation
 Increase customer and staff loyalty
 Manage risk
 Improve internal and external relationships
Improving market share- Market share is a percentage it controls of the
market for its products. It is the part of total sales a company claims to have in a
particular market over a particular period (Kotler and et.al., 2003). Marketing
department tend to follow two measure that are sales volume and sales value.
Marketing share may be measure by measure of percentage of total sales in a
city in a region, in a country, continent (Foxall, 2014).
Respond to customers as fast as possible- This is also a good and
effective way to increase the market share to respond customers more fast way,
to give them hand to hand attention. This feature would attract the customers
effectively.
Using customers suggestions- This is also innovative and impressive
way to increase the market share, when customers find their involvement in the
relevant product or the company this thing can help in the business and increase

the profitability than market share increase automatically (Coombes, Nicholson,
2013).
Conclusion
In the present report, Cadbury Dairy Milk which falls under FMCG
department wants to grow more in the market with the confectionery section.
This is a fast moving consuming goods that means a short life product. So while
preparing marketing strategies must consider these facts. Market theory can
understand with the help of Ansoff matrix. From the above apart from
marketing management it describes about the process, strategies, and policies. It
brings the products and services for satisfaction of the needs of people. To
understand market trends and market dynamics SWOT analysis is useful tool. It
determines about relating what Cadbury Dairy Milk consider their roles and
responsibilities of management. It is the interrelation between production and
consumption. It generates to maintain the standard of living in the market.

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