Cadbury vs. Lindt: Effectiveness of Marketing Mix Strategies

This report provides a comparative analysis of the marketing mix strategies employed by Cadbury and Lindt, focusing on the 4Ps: product, price, place, and promotion. It examines the target markets of both companies, noting Cadbury's broad demographic and income-based segmentation versus Lindt's psychographic and demographic approach targeting premium consumers. The report details the product ranges, pricing strategies (competitive for Cadbury, skimming for Lindt), distribution channels, and promotional activities of each company. The analysis concludes that Cadbury's marketing mix is more effective in terms of market share and revenue growth due to its competitive pricing. Recommendations include Lindt improving its pricing and promotion strategies to enhance competitiveness and Cadbury focusing on digital media marketing to attract more customers. This document is available on Desklib, a platform offering study tools and resources for students.

PRINCIPLES OF
MARKETING

EXECUTIVE SUMMARY
The 4P’s of marketing mix is a model that helps in enhancing and defining the
marketing strategies for delivering goods and services to the customers. This reports aims at
identifying the different marketing strategies that are being used by the different company
that is Cadbury and Lindt. The results have shown the marketing mix of Cadbury is more
effective than as of Lindt. It has helped Cadbury in enhancing its market share by increasing
its revenue and thus, leading the company towards growth.

Table of Contents
INTRODUCTION...........................................................................................................................4
MAIN BODY..................................................................................................................................4
Target Market..............................................................................................................................4
Product.........................................................................................................................................5
Price.............................................................................................................................................5
Place.............................................................................................................................................6
Promotion....................................................................................................................................7
CONCLUSION................................................................................................................................7
RECOMMENDATION...................................................................................................................7
REFERENCES................................................................................................................................1

INTRODUCTION
Marketing mix refers to the collection of various elements that shapes the operations
of business in delivering value to its customers(Thabit, 2018). It helps the business in
creating a clean mix creation which helps the business in enhancing their product portfolio.
Cadbury is a British multinational company that was established in 1824. It was
founded by John Cadbury. Its headquarters are located in London, England. It is the second
largest confectionery brand in the world. It operates in more than 50 countries. It's well
known for its Dairy milk chocolate bar. And the creme eggs.
Chocoladefabriken Lindt, commonly known as Lindt is a swiss confectionery and
chocolatier company. It was founded in 1845 by David sprungli-Schwarz Rudolf Lindt. Its
headquarters are located in Kilchberg, Switzerland.
This report analyses the effectiveness of the marketing mix of Cadbury and Lindt by
identifying its product, place promotion and pricing strategy.
MAIN BODY
Target Market
Target market refers to a group of potential buyer that are identified by the company to sell
their products and services (Blut and Floh, 2018). That is these targeted audience are
divided into various small groups on the basis of their age, income, lifestyle location etc. in
case of Cadbury it has divided its target market of its product by a mix of several factors,
consumers from every spectrum of the society are enjoying the Cadbury products. Cadbury
has targeted its audience on two basis. First on the basis if the demographic that is it targets
its audience by their age group that is from kids to millennials to adults offering them various
products according to their needs. And secondly on the basis of their income level that is it
offers premium chocolates to its high income customers (Pomering, A., 2017). Cadbiury’s
Dairy Milk is a product that has been targeting the millennials and the one who can not resist
chocolates.
However, the target market of Lindt has been divided into two factors that are
psychographic and demographic. Psychographic segmentation includes the lifestyles and
personality of the targeted audience. And demographic segmentation includes the social
class, income stage of the potential buyers. It targets the children. Men and women of age
group between 10-90 years offering high quality premium product.

Product
Cadbury has a wide range of products that it offers to its customers. Its products vary
from country to country on the basis matching the seasons of the year that results in varying
sales in different countries (Ndofirepi and Mogaji, 2020). It also makes different products for
different holidays and seasons like Halloween and christmas etc. it not only offers chocolate
but it also offers drinks and desserts such as ice creams and cakes. It uses the Levitt’s
model in identifying the core product level, the actual product level and the augmented
product level that is its core product is to sell chocolates but by identifying the needs of the
customers it offers drinks and desserts. And to satisfy the customer it augments its product
according to the needs of the customers by customising these products.
On the other hand, Lindt specialises in chocolate products, typical sweets and
confectioneries (Dost and et.al., 2019). That is it has a wide range of products that includes
Lindor dark chocolate, Excellence milk chocolates etc. Also, it offers products based on the
seasons of the year that is Christmas, Valentine's Day etc. Its USP is that it offers and sells
chocolate with no added sugar that helps in making them unique from others. It uses the
akars model that helps them in enhancing their brand identity by offering quality premium
products that build strong brand image. This model helps them in creating loyalty by
perceiving awareness of high quality premium chocolates and offering the customers value
for money.
Price
Difference parameters CADBURY LINDT
Price strategy Competitive pricing strategy Skimming pricing strategy
Effectiveness of strategy It has been very effective in
terms of regulating the
competition by preventing
the market share to the
competitors and preventing
loss of customers.
It has been proven effective
in terms of building high
quality perception for the
product and increasing
brand loyalty.
Lindt offers premium quality products by adopting an effective skimming pricing

strategy that has helped the company in increasing and enhancing its brand image across
the globe. However it is facing high competition from its rival brands but the it does not care
about the competition as it offers premium quality in compared to its rival brands. On th
either hand Cadbury uses the competitive pricing strategy that provided the company with
the competitive advantage and with retaining its customers by providing them quality
products at affordable prices. It has also helped Cadbury in retaining their market share and
being on the top of the leader board. In compared to Lindt, Cadbury’s pricing strategy is
much more effective in terms of profitability and growth of the business. Because with the
effective competitive pricing strategy it has provided Cadbury a competitive edge in
comparison with the Lindt.
Place
Cadbury products are made in the towns of Bournville. It has recently claimed that its
best cocoa beans are exclusively imported from Ghana for the production of chocolates.
Catering to a large customer base, its products are available globally (Mintz and
et.al., 2021). With its strong distribution channel it has a great significance on the global
markets. Its product reaches in more than 200 countries. Both the rural as well urban regions
have access to the products that are offered by the company which has in turn aided the
growth of the company with higher revenue. With the availability of the products to a large
client base through effective distribution channels. It has enhanced the profit margin of the
company leading the company towards success.
On the other hand, Lindt is a well known brand which operates through 410 chocolate
retail and wholesale outlets, cafes that are spread all across the globe including places such
as Russia, France, Mexico etc. with the increasing revenue from the oversea markets it
resulted in marketing and distribution centres located outside Switzerland. Thus, The
company has diversified and now expanded across the United States and the European
Nations for setting up 12 factories in Austria, Germany, The USA, Italy and Switzerland. To
maintain its brilliant supply chain, it has subsidiaries in various countries. Presently, Lindt
products reaches in more than 100 countries with distribution and sales channels located in
four different continents. Its products are also easily available in shopping mall, luxury
stores, airports, lounges etc. also it is active through websites also and takes online orders
for the products.

Promotion
Promotion is an activity that helps in informing the market about the product and
services that are being offered by the company (Al Badi, 2018). One of the most important
factors that affect the sales of a company. Cadbury has a keen eye for every minute detail
and it relies on emotional advertising campaigns so as to connect with its target market. It
has been proven an effective way of advertising as it has resulted in the growth of the
company. Its campaigns include “ moments of joy” , a tagline that appears on their
chocolates. It also uses BTL marketing and vernacular communication that help in promoting
the company in various areas and states. Additionally, they also collaborate with celebrities
to promote their products. However, Cadbury’s promotional activities are one of a kind that
contributes to the product sales.
On the other hand, Lindt is a popular worldwide recognised brand with a high brand
awareness. It undertakes various marketing plans so that it can promote its product in the
global markets (HR and Aithal, 2020). Thus, enhancing the brand image globally. To
promote its products it uses mediums like advertisement campaigns that is shown via
electronic, visual and print media in magazines, television, billboards, hoardings etc. Posters
are displayed at airports, stations, and shopping malls. It is also, superly active via social
media marketing through digital media platforms like Instagram, twitter, Facebook, YouTube
etc. it has also collaborated with Roger Federer, as the brand ambassador for endorsing
their brand.
CONCLUSION
From the above report it can be concluded that Lindt and Cadbury uses different
marketing mix in enhancing their product portfolio. Both the companies target its audience
on the basis of demographic that Cadbury in the basis of their age and Lindt on the basis of
their income level. However. It can be summarised that both of the companies uses different
pricing strategies and it has been analysed Cadbury has more effective pricing strategies
providing them a competitive edge over their competitors.
RECOMMENDATION
It is recommended to Lindt to improve its pricing strategy so that it can retain its
market share and formulate a strategy that helps them in providing a competitive advantage
over its competitors. Also, it needs to level up its promotion strategies so as to enhance its

brand visibility among the audience
On the other hand, it is recommended to Cadbury to enhance its promotion strategies
through digital media marketing and making the brand more visible on digital platforms so
that it can attract more customers. Thus, enhancing the growth of the company.

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).
Blut, M., Teller, C. and Floh, A., 2018. Testing retail marketing-mix effects on patronage: A
meta-analysis. Journal of retailing. 94(2). pp.113-135.
Pomering, A., 2017. Marketing for sustainability: Extending the conceptualisation of the
marketing mix to drive value for individuals and society at large. Australasian
Marketing Journal. 25(2). pp.157-165.
Ndofirepi, E., Farinloye, T. and Mogaji, E., 2020. Marketing mix in a heterogenous higher
education market: A case of Africa. In Understanding the higher education market in
Africa (pp. 241-262). Routledge.
Dost and et.al., 2019. Seeding as part of the marketing mix: word-of-mouth program
interactions for fast-moving consumer goods. Journal of Marketing. 83(2). pp.62-81.
Mintz and et.al., 2021. The right metrics for marketing-mix decisions. International Journal
of Research in Marketing. 38(1). pp.32-49.
Al Badi, K.S., 2018. The impact of marketing mix on the competitive advantage of the SME
sector in the Al Buraimi Governorate in Oman. SAGE Open. 8(3).
p.2158244018800838.
HR, G. and Aithal, P.S., 2020. Integrated Marketing Mix Framework for Baby Care Retailing
in India. International Journal of Applied Engineering and Management Letters
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