PRODUCT

Cadbury dairy milk is made from real chocolate. Its ingredients include cocoa, butter and there is a glass and half full cream dairy milk in every 200 grams in every dairy milk chocolate. Cadbury buys 65 million liter of fresh milk each year to make Cadbury dairy milk chocolate. Cadbury’s offer such product. The wide variety products offered by the company include:

5 Star 5 Star Chomp 5 Star Crunchy 5 Star Fruit & Nut Bournville Almond Bournville Hazelnut Bournville Raisin & Nut Bournville Rich Cocoa Dairy Milk Dairy Milk Crackle Dairy Milk Fruit & Nut Dairy Milk Roast Almond Dairy Milk Silk (Milk Chocolate) Dairy Milk Silk Fruit & Nut Dairy Milk Silk Orange Peel Dairy Milk Silk Roast Almond Dairy Milk Silk Caramello Dairy Milk Shots Dairy Milk Shots with Friends Perk Perk with Glucose Energy Temptation

PRICING

Second P of marketing is not another name for blindly lowering prices and relying on this strategy alone to increase sales dramatically. The strategy used by Cadbury’s is for matching the value that customer pays to buy the product with the expectation they have about what the production is worth to them. Cadbury’s has launched various products which cater to all customer segments. So every customer segment has different price expectation from the product. Therefore maximizing the returns involves identifying right price level for each segment, and then progressively moving through them.

PLACE

Marketers and finance manager need a new term to evaluate their business: Distribution Equity. It takes much more time and effort to build, but once built, distribution equity is much tougher to erode. The fundamental axiom of Indian consumer market is this: You can set up a state-of –the-art manufacturing facility, hire the hottest strategies on the block, swamp prime television with best Ads, but the end of it all, you would be know of selling your products. The cardinal task before the Indian market is managing is to shoe-horn its product on retail shelves. Buyers are paying for distribution equity not brand equity and market shares. Why does the company need distribution equity more anything in India? With technology and competitive pressure slash in it is becoming increasing difficult for marketers to retain a unique product differentiation for ling period. In a product and price parity situation, the brand that sells more is the one that reaches the highest number of customers. India – 1 billion people, 155 million household has over 4 million retail outlets in 5351 urban markets and 552725 villages, spread cross 3.28 million sq. km. television has already primed and population for consumption, and the marketer who can get to the to the consumer ahead of competition will give a hard – to – overtake lead. But getting their means managing wildly different terrains-climate, language, value system, life style, transport and communication network. And your brand equity isn’t going to help when it comes to tackling these issues. Own distribution network consist of clearing and forwarding (C&F) agents & distribution stockiest. This network of distribution can either contact wholesalers and which in turn retailers or the distributors can contact to the retailers directly. Once the stock product reaches retailers, the prospective customers can have access to the product. Cadbury’s distributes the product in the manner stated above. Cadbury’s distribution network has expanded from 1990 distributors last year to 2100 distributors and 4,50,000 retailers. Beside use of TI tom improves logistics, Cadbury is also attempting to improve the distribution quality. To address the issue of product stability, it has installed visi colors at several outlets. This helps in maintaining consumption in summer when sales usually drops due to the fact that the heal effects product quality and thereby off takes. Looking at the low penetration of the chocolate, a distribution expansion would itself being incremental volume. The other reason is arch rival Nestle reaches more than a million retailers. This increase in distribution is going to be accompanied by reduction in channel costs. Cadbury’s marketing costs,

at 18% of total costs, is much higher than Nestlé’s 12% or even pure sugar confectionery major Parry’s 11%. The company is looking to reduce this parity level. At Cadbury, they believe that selling confectionery is it like selling soft drinks.

PROMOTION

The purpose of promotion is to communicate directly with potential and actual consumers. In order to encourage them to purchase dairy milk chocolate the Cadbury used different promotional tactics.Strategy;Cadbury dairy milk is used press and electronic media to motivate the potential and inspires the actual customers to purchase the product of Cadbury.Promotion is an important element of marketing mix because if it is not well planned then company is unable to increase it sales.The company gives discounts on different occasions.To inspire the Childs to purchase the Cadbury chocolate the company made such type of ads. To encourage the youth class the company hires the superstars for advertisement of the products which inspires the all type of consumers who want to eat sweet.

Thereafter it was the job of the advertising to communicate customer the wonderful feeling that he could experience by rediscovering the careful, oneself conscious, pleasure – seeking child within himself – a graft these feeling onto the Ad campaign like “Khane Walon Ko Khane Ka Bahana Chahiye” for CMD and “Thodi Si Pet Pooja – Kabhi Bhi Kahin Bhi” for Perk have been sure shot winner with the audience. Whirl with the new launched temptations with the slogan “Too to Share” the communication resolves around the reluctance of a person who’s got their hand on a bar of temptation to let anyone else to have a bite. As well as outdoor and radio ads, ad agency contract has created communication for cinemas and even ATM machines for the brand.

Milk treat has also been launched in a module bar form, just in time of Diwali gifting market. Éclairs has got potential for much wide distribution, in a small sweets that airlines, hostels, and up market retail outlet offer to guest and customers. Ad spend in 2010 was about 14% of sales and the management said that plans to maintain as spend at this level in the current year also. Ad since any discussion today would be incomplete without mention ‘e’ word, the management plans to tap this new channel of marketing. Beside three company website (i.e. www.cadburyindia .com, wwww.bourvita.com, www.cadburygift.com that the company has launched, it had also entered into various marketing relationship with other portals, specially targeted during festivals and events such as Valentines day , etc…. It’s a combination of spiffing up its key brand, researching and improving the newer products that haven’t taken off, supported with high ad – spends that Cadbury will see it emerges stronger after the current slowdown, as well as expand the market.