Marketing Mix Analysis: Cadbury Dairy Milk vs. Lindt Chocolate Brands

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This report provides a comprehensive analysis of the marketing mix of Cadbury Dairy Milk and Lindt chocolate, focusing on the 4Ps: product, price, place, and promotion. The report begins with an introduction to marketing and the selection of the two brands for comparison. It then delves into the STP (Segmentation, Targeting, and Positioning) strategies of both companies, examining their target markets based on psychographic, geographic, and behavioral factors. The product section explores the core and augmented products of each brand, including packaging and branding strategies. The price section compares the pricing strategies, noting Lindt's premium pricing versus Cadbury's cost-leadership approach. The place section examines the distribution channels and geographic reach of both brands, highlighting their retail, franchising, and agent networks. Finally, the promotion section analyzes the communication strategies, including advertising, social media, and promotional events used by each company. The report concludes with a summary of findings and recommendations, suggesting areas for improvement and emphasizing the importance of effective marketing strategies for long-term survival.
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Principles of marketing
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MARKETING 1
Executive Summary
The purpose of this paper is to learn the concept of marketing mix. In this report, Cadbury and
Lindt have been selected to compare their marketing mix. According to marketing mix analysis,
both the brands are popular and also highly ranked in the market. The companies implement the
retailing, franchising and agents as the channels for distribution. According to promotion
techniques, both companies uses different communication channels to communicate with the
consumers but promotion of Cadbury is more goods as compare to Lindt. The marketing plan of
these companies is effective and efficient for long term survival.
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MARKETING 2
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MARKETING 3
Contents
Introduction......................................................................................................................................3
STP (Target Market)........................................................................................................................3
Product.............................................................................................................................................5
Price.................................................................................................................................................6
Promotion........................................................................................................................................8
Conclusion and Recommendations..................................................................................................9
References......................................................................................................................................10
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MARKETING 4
Introduction
The procedure of building the relationship with consumers with the different techniques is called
marketing. The companies use the marketing techniques or methods to attract the customer
towards its goods and services. Attraction is the primary function of marketing. This marketing
process also helps to attain the goals of the organization or to receive the high income (Kerin,
and Hartley, 2015). In this report, Cadbury and Lindt have been selected to examine the
techniques and methods of marketing of brands.
Cadbury Dairy Milk is a milk chocolate firm which is produced by Cadbury. The company was
founded in the year 1905. The company manufactures the every product with the exclusively
milk chocolate. It was graded as the best seller of chocolate bar in UK in the year 2014
(Cadbury, 2019).
Lindt is a chocolate manufacturing firm that provides the chocolates to consumers. Lindt was
recognized as the leader of manufacturing chocolates in the market just because of its premium
quality of products. It is one of the best companies that manufacture the most creative and
innovative chocolates with the premium quality and also implementing the marketing techniques
(Lindt, 2019a).
STP (Target Market)
Cadbury dairy milks segmented the product in different classifications such as psychographic,
geographic, and behavioral. According to psychographic segmentation, it offers the chocolates to
consumers according to their needs and wants in terms of size like small blocks and large blocks
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MARKETING 5
packaging (Andaleeb, 2016). It is observed that the main target customer of the company is
classified in terms of age or life cycle stage such as children, teenagers, and adults. It is a fact
that these ages of people are mostly like to eat chocolates. The age that has been considered in
these life cycle stage is the 4 to 18 but the people of above this age are also like to eat chocolates.
Cadbury Dairy Milk drives the business in both kind of market such as rural and urban areas and
it has been found that taste all target customers are similar. It has been found that there are some
companies that target their consumers on basis of education as well but Cadbury does not set any
particular education while targeting consumers. Anybody can purchase the chocolate or eat it as
the both the class can afford it such as middle and upper class.
It is observed that the main target of Lindt has been classified in different segments such as
geographic, behavioral and psychographic. According to psychographic, geographic, and
behavioral categories, it is observed that the organization provides the wide range of goods to
consumers apart from the chocolates that directly help to attract the customers towards its new
items. It mainly targets the kids and firms to supplies the goods to large number of customers.
The company specifically targets the men, women and the others in terms of gender. As per
geographic segmentation, it operates the business in more than 120 countries especially drives
the business in urban areas. In behavior terms, children and teenagers are the main targets of the
company as these people love to eat chocolates. The volume of sales of chocolate has been
enhanced with the 6.8% by delivering the goods to customers (Lindt, 2019b). It supplies the
goods and services to customers as per the occasions like Halloween, Christmas and many
others. The company set the prices according to middle and upper class so that the people can
easily afford its goods and services. The company provides good at the higher rate as compare to
its competitors.
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MARKETING 6
Product
As per the Levitt Model, it is noticed that Cadbury Dairy Milk supplies the chocolate which is
recognized as the core products. Drinks and other snacks supplies by the company as its
augmented products. The chocolate provided by dairy milk have high quality (Cadbury, 2019b).
It delivers the goods and services according to the demand of customers in terms of size and
shapes such as it offers chocolate bars, big or small chocolate packet in small blocks and large
blocks. There are various size or shape of packaging of chocolates assists the company to offers
the chocolates to all type of target customers. The company mentioned all details regarding
product on the packaging of the product such as ingredients and the percentage of use. The
company also put the slogan on the product and that is “Tastes like this feels”. The tagline of the
product represents that the brand adopt the emotional approach to attract the consumers. The
company delivers the premium services with all dignity and loyalty to build the trust among
consumers. As per the Aaker model, it has been noticed that the firm implements the brand
awareness framework as the packaging of chocolate states the attachment of consumers and also
familiarize the people with the company (Bhasin, 2019).
Lindt supplies the soft drinks, snacks, chocolates and the other goods to customers. According to
Livett model, it has been noticed that the firm supplies the chocolate as it is considered as core
goods in the industry. The high demand of clients represents the high quality of chocolate in
terms of taste. It supplies the chocolates with the different flavors and attractive packaging’s
according to the desires and wants of customers. It also offers the other goods like shakes, drinks
and coffees for further advantages that is why; these products of its are recognized as augmented
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MARKETING 7
products. It is observed that the premium qualities of chocolates of the company with the variety
of flavors attract the customers towards it.
Price
(Source: Cadbury World, 2019)
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MARKETING 8
(Source: Trip Advisor, 2018)
As per above photos represent the prices of products of both the brands. Price of Cadbury goods
show in Euro and prices of Lindt goods shows in dollars. As per the prices of goods and services
of both the company states that Lindt adopts the premium price strategy and Cadbury follows the
low-cost price strategy. It has been evaluated that Cadbury offers the goods to customers at the
premium pricing strategy with the excellent quality of services (Stead, and Hastings, 2018).
Costing strategy of Lindt attracts the more or more customers more than Cadbury as it is easily
affordable by people.
Place
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MARKETING 9
According to geographic areas, Cadbury provides the goods in more than 50 countries across the
world. Cadbury is well-known for its core product that is diary milk chocolate. The selling
department of the firm is in Cleckheaton, Pontefract, and York for allocation of goods. The
distribution strategy of Cadbury states that the company expands the business across the world.
One of the agents of the firm is based in Pennsylvania with the name of Hershey Company that
supplies the chocolates of Cadbury across United States. It has been found that the availability of
the product is high but still it is considered as the luxurious brand just because of its high demand
in the market.
Lindt runs the business in more than 120 countries across the world. It also supplies the
chocolate in 500 airports. Apart from it, it has retail channels all over the world. It distributes
chocolates with 25 subsidiary companies and410 branch offices. It also has 100 independent
distributors that help to supplies the goods (Lindt, 2019). The company has 87 retailers that
supply the chocolates to customers. It states that it adopts the retailing channel for distribution. It
implements the luxurious brand image as its chocolate is not easily accessible in the market due
to limited supply of products (Lindt, 2019).
Promotion
Cadbury communicate with the customers by using the different broadcasting channels such as
own websites, social media, TV, smart phones, and many others. The company is popular for its
fictitious and creative videos ads, but it also take more steps to promote the goods by organizing
promotion events. It organized the fun campaigns by using the double decker’s bus to visit
different university campuses. These promotion events or communication methods build its high
brand image in the market. The company positioned itself in the market as the affordable brand
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MARKETING 10
because it supplies the chocolates in different wrapping in terms of flavors, taste and size
(Gilliland, 2016).
Lindt communicate with its consumers through media and campaigns. The main mission of the
brand is “to make the passenger journeys more magical” by organizing campaigns in the world.
The company promotes its services in Middle East, Europe and South America especially at
airports due to increasing the demand. The company also promotes its goods by posting the
images on social media to deliver the info to customers about the products. Travelling retail
campaign enhances the brand value of the company (Lindt, 2019c).
Conclusion and Recommendations
From the above analysis, it is concluded that both the companies target the similar consumers
according to segmentation. Both the companies deliver the similar product with the different
strategies to grasp the high market share. According to the examination, it is noticed that
advertising strategy of Ludit is appropriate to attract the consumers as compare to the Cadbury. It
is suggested that Cadbury has to implement the cost leadership strategy. Ludit is considered as
the premium brand as compare to Cadbury just because of its price strategy. Both the companies
attracts the more or more customers attracted towards its services.
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MARKETING 11
References
Andaleeb, S.S. (2016) Market segmentation, targeting, and positioning. In Strategic marketing
management in Asia: case studies and lessons across industries (pp. 179-207). Emerald Group
Publishing Limited.
Bhasin, H. (2019) Marketing mix of Lindt. [online] Available From:
https://www.marketing91.com/marketing-mix-of-lindt/ [Accessed 24/03/2020].
Cadbury World. (2019) Plan Your Visit. [online] Available From:
https://www.cadburyworld.co.uk/plan-your-visit/cadbury-cafe [Accessed 24/03/2020].
Cadbury. (2019a) Our Story. [online] Available From: https://www.cadbury.co.uk/our-story
[Accessed 24/03/2020].
Cadbury. (2019b) Our Products. [online] Available From: https://www.cadbury.co.uk/products
[Accessed 24/03/2020].
Gilliland, N. (2016) How Cadbury is using experiential marketing to delight consumers. [online]
Available From: https://econsultancy.com/how-cadbury-is-using-experiential-marketing-to-
delight-consumers/ [Accessed 24/03/2020].
Kerin, R. and Hartley, S. (2015) Marketing: the core. McGraw-Hill.
Lindt. (2019a) About Us. [online] Available From: https://www.lindt-spruengli.com/about-us/
[Accessed 24/03/2020].
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