Name: Firuzatun Nahar School: Bangladesh School Muscat Centre number: 97114 Candidate number: 0250 Course: GCE

Applied Business Unit title: Investigating marketing Unit number: 3 Investigating marketing for: Cadbury Dairy Milk

Table of contents:
1. Acknowledgement. 2. Summary. 3. Company profile of Cadbury. 4. Product profile of Cadbury.

Page Number

II 1 2 3

5. Objectives and market segmentation of Cadbury Dairy Milk. 6. Market research on Cadbury Dairy Milk: i. Sources of data collection for the market research. ii. Research approach. iii. Data collection and sampling method. iv. Analysis of survey. 7. Devising of marketing mix: i. 1st P: Product. ii. 2nd P: Price. iii. 3rd P: Place. iv. 4th P: Promotion. 8. Justification of the product: i. SWOT analysis. ii. PEST analysis. 9. Conclusion. 13. Appendix. 14. Bibliography.

4 4 4 4 5-19 20 20-21 21 22 23-24 25 25 26-27 28 29-31 32

ACKNOWLEDGEMENT
It was an educational and fun experience. I learned a lot about Cadbury, the company that works hard to provide us with chocolate: the most enjoyable food available on earth. First of all Id like to thank my family, especially my parents, who have been very cooperative. It was because of their patience and help that I actually finished the coursework on time. Id also like to thank our school principal, Mrs. Syeda Nasrin Akhter for her cooperation in letting us do the coursework. Id also like to thank Edexcel for giving me the opportunity to do this coursework. Id like to thank Mrs. Preeti Nihalani, my subject teacher, for patiently guiding me through the course. And also for making this a fun experience. And last but not the least; Id like to thank my friends for sharing their experience and knowledge. It was because of their help and guidance that I got to learn new things. It was because of their company that this coursework was a fun and memorable experience.

Signature

Firuzatun Nahar

SUMMARY
As a student of the subject applied business, I chose to do a coursework on the company Cadbury and its product, Cadbury Dairy Milk. Before I start with the coursework Id like to introduce the company and the product which my coursework is about. Cadbury is a very well known firm for confectionery products. It operates in more than 50 countries worldwide. Its product, Cadbury Dairy Milk, is the most well known chocolate around the world. It generates the most revenue in the chocolate market. It has a reputation for being Cadburys most consumer loyal product. For this coursework Ive selected Cadbury Dairy Milk as my research product.

PROJECT TITLE: Consumer Buying Behaviour for Cadbury Dairy Milk. This coursework includes: 1. An analysis of the factors that consumers take into consideration before buying chocolates. 2. An analysis of consumer reaction towards Cadbury Dairy Milk based on gender and age group. 3. An analysis of Cadbury Dairy Milks marketing mix. 4. An analysis of the strength, weaknesses, opportunities and threats faced by Cadbury Dairy Milk. 5. An analysis of the political, economical, social and technological factors that Cadbury takes into consideration while marketing Cadbury Dairy Milk.

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Company Profile

Business sector: Confectionery sector. Year of establishment: 1824. Founder: John Cadbury and his brother, Benjamin Cadbury.

John Cadbury

Benjamin Cadbury Headquarters: Uxbridge, London, United Kingdom. Operations: Cadbury operates in about more than 50 countries. Employees: Approximately 72,000. Mission statement: A mission statement states the purposes and primary objectives of the business. This is Cadburys mission statement: Cadburys means quality: this is our

promise. Our reputation is built upon quality: Our commitment to continuous improvement will ensure that our promise is delivered. 1

Product Profile
BARS FREDDO CURLY WURLY BRUNCH CAKES AND BISCUITS DIGESTIVE BISCUITS MINI ROLL BITES DRINKS HIGHLIGHTS HOT CHOCOLATE INSTANT BOURNVILLE COCOA DRINKING CHOCOLATE ICE-CREAMS AND DESSERTS DAIRY MILK STICK CRUNCHIE BLAST STICK DREAM STICK OTHERS TWIRL BITES HEROES

SNACK

FLAKE CELEBRATION CAKE MINI ROLLS

CHOCOLATE ECLAIRS DAIRY MILK CARAMEL NIBBLES CLUSTERS MILK TRAY

WISPA BAR

FUDGE PICNIC

FINGERS CARAMEL CAKE BARS HALF COATED MINI ANIMAL BISCUITS

STARBAR

WISPA CUP DAIRY MILK FRUIT AND NUT STICK HEAVENLY VANILLA CUP CRUNCHIE CUP

BUTTONS

TIMEOUT DREAM FLAKE BOOST DOUBLE DECKER BOURNVILLE CHOMP DAIRY MILK DAIRY MILK BLISS WISPA CRUNCHIE

DAIRY MILK CARAMEL CONE FLAKE 99 CONE ROSES CHOCOLATE DAIRY MILK TRIFLE TASTERS CHOCOLATE MOUSSE TWIN POTS FLAKE

CRUNCHIE ROCKS KOKO

OBJECTIVES AND MARKET SEGMENTATION OF CADBURY DAIRY MILK

Selection of product: Cadbury Dairy Milk is a worldwide brand of chocolate of United Kingdom which makes and sells its products to foreign countries like India, Australia, and Italy, Canada and France and many other countries. The Dairy Milk brand alone accounts for approximately 33% of Cadburys total chocolate blocks (moulded) and bars sales, making it the number one confectionery brand in the market. From the above product range Ive chosen Cadbury Dairy Milk for my project. In 2003, Cadbury made Dairy Milk into a super brand, bringing a number of different products under the name Cadbury Dairy Milk; for example Cadbury Dairy Milk Fruits and Nuts. Marketing Objectives for Cadbury Dairy Milk: Marketing objectives are goals that a firm tries to achieve through its marketing activities. Cadbury Dairy Milk has a customer driven strategy, it targets only those markets which are profitable. Of all the successful Cadbury brands, the brand with the most customer loyalty is Cadbury Dairy Milk. In 2002, Cadbury made a strategic decision to leverage the value of the Dairy Milk brand by elevating it to a range brand. The Cadbury Dairy Milk has been stretched to become a family brand in its own rights. Target Market for Dairy Milk: Target market includes a specific group of consumers whom businesses aim at for selling their products. The target market for Cadbury Dairy Milk is children, and women of 21-29 years of age. Market Segmentation: Market segmentation is the division of consumers into groups based on similar characteristics shared by the consumers. Cadbury Dairy Milk is mass marketed, but the various products that come under Dairy Milk are segmented by age and lifestyle.

MARKET RESEACH ON CADBURY DAIRY MILK

Market research can be defined as the collection, collation and analysis of data that is related to the marketing and consumption of the product. Sources of data collection for the market research: Data for market research can be collected using two methods. Primary research method is when the data is collected for the first time by a researcher. The information gathered is first hand. Secondary research is when the researcher makes use of data that has already been collected before. The information gathered is second hand. Primary research is done through using methods like questionnaire, personal interviews and observations. Secondary research uses information from existing market research reports, sales figures, government publications and information from the European Union. Research approach: For this course work I have used primary research. I gave out questionnaires to consumers of Cadbury Dairy Milk. A questionnaire includes a series of questions designed to find out the views and opinions of respondents. Data collection and sampling method: Ive collected data for my research from 5 different age groups of both genders. I interviewed 40 people of which 20 were male and 20 were female.

ANALYSIS OF THE SURVEY

Figure 1.1

Do you like Cadbury Dairy Milk?

14 12 10 8 6 4 2 0 08 - 12 13 - 19 20 - 29 30 - 45 Age Group 45+

Yes No

Figure 1.1 shows the number of people that like Cadbury Dairy Milk. This data is based on the age of the respondents. Teenagers and consumers above 45 years of age all like Dairy Milk. Some children and young adults dont like Dairy Milk. When asked why they dont like Dairy Milk, they replied that they simply werent a big fan of chocolate.

Figure 1.2 Do you like Cadbury Dairy Milk?

Male

Female 0 No Yes 2 4 6 8 10 12 14 16 18

Female 4 16

Male 2 18

5 Figure 1.2 shows the number of people that like Cadbury Dairy Milk based on gender. Men seem to prefer Dairy Milk more than women. The reason for this was that men were not as specific about chocolate as women. The female respondents that didnt like Cadbury Dairy Milk preferred expensive chocolate because according to them high price represents high standard. The other people simply didnt like chocolate.

Figure 2.1

How frequently do you buy Cadbury Dairy Milk?

9 8 7 6 5 4 3 2 1 0 08 - 12 13 - 19 20 - 29 30 - 45 Age Group 45+

Ocassionally Monthly Weekly Daily

Figure 2.1 shows how frequently people by Cadbury Dairy Milk. Most people purchase Dairy Milk on a weekly basis. Quite a few purchase it occasionally, mostly as presents.

Figure 2.2 How frequently do you buy Cadbury Dairy Milk?

Male

Female 0 Daily Weekly Monthly Occassionally 1 2 3 4 5 6 7 8 9 10 11 12 13 Male 2 12 2 4

Female 1 8 5 6

Figure 2.2 shows how frequently consumers purchase Dairy Milk. This data is based on the respondents gender.

Figure 3.1 Where do you usually buy Cadbury Dairy Milk from? 9 8 7 6 5 4 3 2 1 0 08 - 12 13 - 19 20 - 29 30 - 45 Age Group 45+

Supermarkets

Local shops
Service stations Grocery stores

Other

7 Figure 3.1 shows where Cadbury Dairy Milk is usually purchased from. This data is based on age of the respondents. Most people purchase Cadbury Dairy Milk from supermarkets. Other people buy from local shops, and very few from service stations. Nobody buys Dairy Milk from grocery stores.

Figure 3.2 Where do you usually buy Cadbury Dairy Milk from?

Male

Female 0 Other Grocery stores Service stations Local shops Super markets 1 2 3 4 5 6 Female 0 0 0 2 18 7 8 9 10 11 12 13 14 15 16 17 18 19 Male 0 0 3 7 10

Figure 3.2 represents where consumers usually buy Dairy Milk from. This data is based on gender. Only male respondents buy Dairy Milk from service stations. Most female consumers go to supermarkets for purchasing Dairy Milk.

8 Figure 4.1 Reason for purchasing Cadbury Dairy Milk 7 6 5 4 To indulge a craving For a special occasion For health and nutritional value Attractive packaging 08 - 12 13 - 19 20 - 29 30 - 45 Age Group 45+ Other

3
2 1 0

Figure 4.1 represents the reasons why people from each age group purchase Dairy Milk. Most people purchase Dairy Milk to satisfy their desire for chocolate, some buy it for celebrations. Some teenagers and adults purchase Dairy Milk because they find it healthy. Those who purchase Dairy Milk for its attractive packaging find it suitable for gifts.

9 Figure 4.2 Reason for purchasing Cadbury Dairy Milk

Male

Female
0 1 2 3 4 5 6 7 8 9 10 11 12

Other Attractive packaging For health and nutritional value For a special occasion To indulge a craving

Female 3 2 2 8 5

Male 0 1 4 4 11

Figure 4.2 is a representation of the reasons why people buy Cadbury Dairy Milk. This data is based on the gender of the respondents. A distinctive number of male consumers purchase Dairy Milk for satisfying their desire for chocolate. A high number of female consumers purchase Dairy Milk for special occasions and as presents.

10 Figure 5.1 In which pack size do you usually purchase Cadbury Dairy Milk? 10 8 6 4 2 0 08 - 12 13 - 19 20 - 29 30 - 45 Age Group 45+ Small Family

Figure 5.1 shows what size of Cadbury Dairy Milk is usually purchased. Adults who purchase Dairy Milk in family pack usually purchase them for their children. Teenagers dont share their chocolate bar when they purchase it in family size; they want it all for themselves! Children share their family sized chocolate bars with their siblings.

Figure 5.2 In which pack size do you usually purchase Cadbury Dairy Milk? Male Female 0 Family Small 1 2 3 4 5 6 7 8 9 10 11 12 13 14 Male 7 13

Female 8 12

Figure 5.2 is a depiction of what pack size consumers purchase based on their gender.

11 Figure 6.1 What type of chocolate do you prefer? 8 7 6 5 4 3 2 1 0 08 - 12 13 - 19 20 - 29 Age Group 30 - 45 45+

Dark chocolate Milk chocolate White chocolate Flavored chocolate Other

Figure 6.1 represents what type of chocolate consumers prefer. Although most prefer milk chocolate, dark chocolate and flavored chocolate are also preferred by some.

Figure 6.2 Which type of chocolate do you prefer? Male Female 0 Other Flavored chocolate White chocolate Milk chocolate Dark chocolate 1 2 3 4 5 6 7 8 9 10 Male 0 4 2 12 2 11 12 13

Female 0 3 0 12 5

Figure 6.2 shows that 5 out of 7 people who prefer dark chocolate are female. White chocolate is preferred by male only.

12 Figure 7.1 What type of fillings do you prefer in chocolate? 6 5 4 3 2 1 0 08 - 12 13 - 19 20 - 29 30 - 45 Age Group 45+ Fruits and nuts Caramel Coconut Cream Other

Figure 7.1 shows that fruits and nuts, and caramel are the most favored fillings for chocolate. Quite a few people are fond of cream filling. Most teenagers and children prefer caramel. Adults prefer fruits and nuts.

13 Figure 7.2 What type of fillings do you prefer in chocolate?

Male

Female 0 Other Cream Coconut Caramel Fruits and nuts 1 2 Female 2 3 2 6 7 3 4 5 6 Male 2 6 2 5 5 7 8

Figure 7.2 shows that most female prefer fruits and nuts as fillings whereas most male prefer either fruits and nuts or caramel. Cream is preferred mostly by men.

Figure 8.1 Which shape would you prefer for a chocolate bar? 9 8 7 6 5 4 3 2 1 0 08 - 12 13 - 19 20 - 29 30 - 45 Age Group 45+

Rounded ends Triangular Rectangular Fingers Other

14 Figure 8.1 shows that rectangular shaped bars are preferred by most people from every age group. Chocolate bars with rounded ends and in the shape of fingers are favored as well.

Figure 8.2 Which shape would you prefer for a chocolate bar?

Male

Female

0 Other Fingers Rectangular Triangular Rounded ends

3 Female 2 2 11 1 4

9 Male 1 5 10 2 2

10

11

12

Figure 8.2 shows rectangular shaped bars are liked by both genders. When it comes to bars shaped with rounded ends female prefer it more than male. And male prefer finger shaped chocolate bars more than female.

15 Figure 9.1 Which other brands of chocolate do you usually purchase? 10 8 6 4 2 0 08 - 12 13 - 19 20 - 29 30 - 45 Age Group 45+ Toblerone Nestle Kit-kat Hershey's Ferrero Rocher Other

Figure 9.1 shows people usually purchase Nestle Kit-Kat. So we can consider Nestle as Cadburys biggest competitor. Hersheys and Ferrero Rocher are also quite popular.

Figure 9.2 Which other brands of chocolate do you usually purchase?

Male

Female

0 Other Ferrero Rocher Hershey's Nestle Kit-Kat Toblerone

10 11 12 13 Male 2 3 2 8 5

Female 1 3 2 12 2

16 Figure 9.2 shows what brand of chocolate is preferred based on age. Male prefer Toblerone more than female.

Figure 10.1 Do you like the packaging of Cadbury Dairy Milk? 12 10

8
6 4 2 0 08 - 12 13 - 19 20 - 29 30 - 45 Age Group 45+ Yes No

Figure 10.1 shows 6 people didnt like the packaging of Dairy Milk. According to them it wasnt artistic enough. Everyone else seemed to think that Cadbury Dairy Milk had a very attractive and presentable packaging.

Figure 10.2

Do you like the packaging of Cadbury Dairy Milk?

Male

Female

0 No Yes

4 Female 4 16

10

12

14 Male 2 18

16

18

20

17 Figure 10.2 shows that fewer female consumers than male consumers like the packaging of Cadbury Dairy Milk.

Figure 11.1 What kind of packaging would you prefer for chocolate? 5 4 3 2 1 Drawings and symbols Bright and shiny 08 - 12 13 - 19 20 - 29 30 - 45 Age Group 45+ Single colored Multi coloured

Figure 11.1 shows people from all age group prefer bright and shiny packaging. Only 12.5% of the respondents preferred packaging with drawings and symbols.

18 Figure 11.2 What kind of packaging would you prefer for chocolate?

Male

Female

0
Bright and shiny Drawings and symbols Multi coloured Single coloured

2
Female 9 3 3 5

8
Male 5 2 7 6

10

Figure 11.2 represents what kind of packaging consumers prefer based on their gender. Most female consumers prefer bright and shiny packaging and most male consumers prefer multi coloured packaging.

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DEVISING OF MARKETING MIX

Marketing Mix: The marketing mix, also known as the 4Ps (product, price, place, promotion), are elements of marketing that are used by the firm to influence consumers purchasing decisions. (1st P) Product: Product is the most important element of the marketing mix. It refers to the good or service provided by the business. Cadbury Dairy Milk is one of the most famous chocolate brand names around the world. Product name: Cadbury Dairy Milk About the product: Dairy Milk is a very well-known product; it is the product with the most customer loyalty among all other well-known Cadbury products. It was introduced into the market in the early 1900s. The recipe used for Dairy Milk is very old, and the same recipe has been in use since it was first discovered. Use of the product: Cadbury Dairy Milk is a snack, a chocolate bar with a unique creamy taste and a deliciously smooth texture. It can be eaten as a snack. It also comes in different sizes, which makes it suitable for a gift. It can be used for special occasions. Appearance of the product: Cadbury Dairy Milk has an innovative design. The Cadbury script is recognized worldwide and is associated with quality. As an international brand, it carries the same distinctive image all over the world. The packaging of Cadbury Dairy Milk is the same everywhere, only the language used on the packaging is different for different countries.

The product life cycle: The product life cycle refers to the phases which many products go through between their first introduction to the market and the eventual decline in sales. A business must decide whether to allow the product to decline and cease its productions or to revive it in some way. Cadburys Dairy Milk has been very fortunate in being able to remain in the maturity stage of the product life cycle, thus it has been able to keep sales at a constant level over a period of time. o 1st Stage - Introductory stage: In the early 1900s, Cadbury Dairy Milk was at the introductory stage of its product life cycle. The introductory stage is that part of the product life cycle when the product is introduced into the market and at this point consumers are made aware of the existence of the product. A considerable

amount of time and money was spent on research into new recipes and production methods and the company invested in a new plant to make the product. 20 nd o 2 Stage - Growth and development: During this phase the product should be establishing itself in the market, sales and profits should be increasing and the initial investments should be paid for. If there is still little competition, profits could be at their highest. Following the introduction of Cadbury Dairy Milk there was tremendous growth in the milk chocolate market. There was continued investment in the plant to continue to make the popular brand of chocolate. o 3rd Stage - Maturity: This stage is characterised by an increase in competition, which could lead to increased costs because of the extra cost of advertising and promotion. Sales of the product are still increasing but at a decreasing rate. Price cuts, special offers and discounts may be given in an attempt to increase sales. Cadburys Dairy Milk has reached this stage of the product life cycle and has managed to remain at this stage with sale promotion techniques, such as their special offers and discounts. th o 4 Stage - Decline: This stage is characterised by declining sales and low profits. Even price cuts and advertising are not enough to tempt the consumer into purchasing. The business may attempt to re-launch the product in a different form. Cadbury has been very successful in not allowing Dairy Milk to fall into this stage of the product life cycle.

(2nd P) Price: Price refers to the amount charged for a product or a service provided by the business. Cadbury Dairy Milk is appropriately priced, which is one of the reasons why it is such a well known product. Price of Cadbury Dairy Milk in different countries: Cadbury sells its products to many countries, of all its products, Dairy Milk is the most well known. A 100g bar of Dairy Milk costs around 56p in U.K., and about $4.38 in the U.S. A bar of 140g Dairy Milk costs 40Rs in India. A 200g Dairy Milk costs about $8.95 in Australia. Pricing strategies used by Cadbury Dairy Milk: A business has to decide how to price a product or service, there are number of different strategies that businesses can use. Cadbury has used the following two pricing strategies for Dairy Milk. o Penetration pricing: Penetration pricing strategy is a method used in order to attract consumers to new products. Prices are set very low to let the company achieve entrance in the market. Cadbury Dairy Milk was the first product of its kind so, when it was first launched, it used penetration pricing. o Competitive pricing: Competitive pricing strategy is used when price is kept in line or below the price line of competitors. Presently, Dairy Milk uses competitive

pricing strategy. A bar of Cadbury Dairy Milk costs similar to other competing brands like Nestle Kit-Kat. 21 (3 P) Place: Place refers to distribution. It covers the activities that a business has to go through so that the products reach the final consumers in the right place and at the right time. The choices of transport, warehousing and stock control are all necessary ingredients of a successful marketing strategy. However good the product is a business has to deliver its goods on time. Decisions regarding distribution channels through which the product will be distributed will have to be made effectively. Distribution channel used for Cadbury Dairy Milk: The distribution channel refers to the route the product has to go through in order to reach the final consumer. Cadbury Dairy Milk is produced at the chocolate factory in Bourneville, Birmingham. After the chocolate has been produced and has gone through the process of quality check, it is sold to shops and various retail outlets worldwide. Cadbury uses the 2nd level of distribution channel in order to reach its final consumers. This is depicted in the following figure: PRODUCER WHOLESALER RETAILER CONSUMERS
rd

Retailers of Cadbury Dairy Milk: Dairy milk has a wide range of retailers, which sell the product. Retailers have a major role to play in the distribution of most products, like Dairy Milk. This is because they have the power to reach huge number of consumers, in different markets over a huge area. o Grocery stores and Confectioners, Tobacconists and Newsagents (CTN): Over the past decade, the grocery trade has become a crucial retailing type as well as the conventional Confectioners, Tobacconists and Newsagents (CTN) which have always played an important aspect of the confectionary market. Purchasing in CTN tends to be impulse buying. Whereas in other stores such as grocery stores shopping tends to be in bulk packs designed to last longer. This leads to the development of multi pack, such as treat size and snack size Dairy Milk bars, aimed at the housewives. o Supermarkets: Supermarkets have the advantage in that they are able to sell Dairy Milk in multi-packs and able to offer special discount. At checkout tills there are the usually Dairy Milk to encourage impulse buying. Also there is a growing trend of consumers making their purchases in the foyer of the supermarket rather than going to the main part of the store. o Service stations: Many snacks are sold at service stations. Those who travel long distances, or those who have the impulse to buy a convenient snack at a car wash or a petrol station, can purchase Cadbury Dairy Milk.

o Local shops: Availability at local stores is very convenient for small children, and aged people who dont like to travel very far away from home. They can easily walk to their local store and purchase a bar of Cadbury Dairy Milk. 22 (4th P) Promotion: Promotion refers to those marketing activities that are designed to raise consumer awareness of the product, to attract customers and to persuade customers to buy the products. The purpose of promotion is to communicate directly with potential and actual consumers. A large amount of money is spent in promoting Dairy Milk. Branding: A brand is a sign, symbol or a design used to distinguish a product or a business from its competitors. Creating a successful brand can help boost sales and profits by encouraging customers to make repeat purchases. The original slogan, 'glass and a half of full cream milk in every half-pound', was introduced in 1928 to show the bars were better than those of their rivals. The decision to alter the words to metric was taken in 2007; the wrapper does not display the slogan any longer. It has been replaced by The equivalent of 426ml of fresh liquid milk in every 227g of milk chocolate. The brand value of Cadbury stands at 360 million in the U.K. Cadbury has been very successful in obtaining a brand name. Benefits of a consistent company logo can be summed up as: o Memorable and distinctiveness. o Assurance and quality. o An established and consistence house logo helps significantly to persuade customers to sample a new line. This was all part of the branding process that Cadbury undertook in order to create a well known brand name. It has been very successful in doing so, that it has also created an international image. Advertising: Advertising is a method used by producers to communicate directly with the potential consumers or the target market. Advertising is very important in letting customers know about a product. The choice of advertising media is very important. It is vital that Cadbury decides on the right media when advertising, so that they reach their target audience and perhaps more. Also advertising for a large company is expensive, so the company must be vigilant when deciding on the advertising media in order to not waste money. The following methods of advertisement are used for Cadbury Dairy Milk. o Television Cadbury is a large company that can afford to advertise on television. Cadbury Dairy Milk television advertisements have a uniqueness about them that makes them appealing. Some very famous TV advertisements of Cadbury Dairy Milk include the Gorilla advert which premiered in 2007, immediately becoming one of the most popular and critically acclaimed TV ads of recent years. In June 2008, Cadbury Dairy Milks Gorilla was named the worlds best ad at the prestigious Cannes Lions International Adverting Award.

The follow-up to the acclaimed 'Gorilla' advert was another T.V advertisement featuring a bizarre midnight race down an airport runway involving a host of vehicles including baggage transporters and motorized stairs. Dairy Milk came up with a new TV ad in 2009 featuring two children performing bizarre "eyebrow dance moves" to a soundtrack. 23 o Posters It may also encourage impulse buying through locations close to shops. It is often seen that Cadbury uses this method in order to increase impulse buying of consumers. Posters may all be seen repeatedly. It is a good way for short messages to be relayed to the target market. Cadbury advertised for Dairy Milk in 1950s using posters mainly. o Internet Cadbury has taken advantage of advertising here. It has a site for consumers who want to know more about the products. Cadbury website includes information about its products, its history, and any offers and discounts. Cadbury has different websites for the countries it operates in. Other promotion methods used by Cadbury: o Public relation: Public relations are activities carried out by the business with the intention of improving the companys image in the eyes of consumers and other interest groups. Cadbury has formed good relations with the local community in the form of Cadbury World. It also supports a number of charities. Public relations is needed when promoting Dairy Milk o Trade Promotion: The usages of point-of-sale displays are a major contribution to Cadbury Dairy Milks sales. For a relatively low cost, the product is brought right to the attention of the targeted consumers. o Product presentation: There are several important factors to be taken into account in designing and developing the presentation for Cadbury Dairy Milk. Cadbury Dairy Milk is renowned for quality, a status that must be maintained. The quality of the confectionary is determined by two factors; the appearance of the product before purchase, and the taste. o Packaging: The key features of qualities of good packaging are as follows: i. Instant recognition through colour, shape, design and brand visibility Cadbury Dairy Milk is recognised by the Cadbury script writing and the colour purple, which is associated with it. ii. Attractive Dairy Milk is an appealing product. This will help Cadbury to sell products as people will be more attracted to it. iii. Eye catching The purple packaging is very attractive; however it is not as eye catching as Kit-Kat which is bright red. iv. Persuasive with clear texts and visuals The title of Dairy Milk is written in a clear and understandable text. The text is large and can easily be read and seen. v. Protecting the product from damage and transit Cadbury products are protected, so that they are not damaged in transit or in storage. The packaging of Dairy Milk has improved over the years. vi. Functional and easy to open The product, Cadbury Dairy Milk now has a more easy to open packaging style.

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JUSTIFICATION OF CADBURY DAIRY MILK

SWOT Analysis: SWOT analysis is a tool that identifies the strengths of a product, its weaknesses, the opportunities for a product and the threats faced by a product. S STRENGTH. W WEAKNESS. O OPPORTUNITIES. T THREATS. Strengths of Cadbury Dairy Milk: Cadbury Dairy Milk has a lot of customer loyalty. It is sold in many countries; it operates in a large market. It has a unique design that differentiates it from competitor products, it is a distinctive brand. It has its own distribution centres and is made easily available to consumers. Cadbury has a loyal and well motivated staff. Cadbury Dairy Milk is available in different sizes and varieties. The product has well defined objectives and aims. Weaknesses of Cadbury Dairy Milk: The product has no unique selling point that makes it distinctive from competitor products of the same kind. Cadbury Dairy Milk has to come up with vending machines for its products, like Nestle. Its packaging is not as eye catching as that of its competitor product, Nestle Kit-Kat. Opportunities for Cadbury Dairy Milk: Since Cadbury Dairy Milk is an established product it can be revived with new packaging and promotional expenditure. Healthy eating products are yet to be fully exploited. Increase in globalization has lead to the development of new markets. Cadbury Dairy Milk is a family brand, so new products can be introduced under this brand. Also, new features and flavours can be added to the existing products under this brand.

 Threats faced by Cadbury Dairy Milk: There are a lot of well known and global competitors in the confectionery market. Health lobbies encourage consumers to reduce their confectionery consumption. Cadbury Dairy Milk is on the verge of declining in sales. Growing competition from supermarkets own brands. 25 PEST Analysis: It includes political, economical, social and technological changes that could affect the business or the product. P - Political E - Economical S - Social T Technological Political factors that affect Cadbury Dairy Milk: A shift in political thinking associated with a change in government might have a major effect on a business organisation. A change in the government will affect rules and regulations that businesses will have to follow. The government might decide to increase taxation which could mean a decrease in profits for Cadbury which would decrease the capital available for investment in new ideas for Dairy Milk. And also, the amount of value added tax (VAT) on Cadbury Dairy Milk will increase, thereby increasing the price of the product. The European Union (EU) might decide to make changes in the distribution pattern of chocolate bars. New legislations might require a change in the recipe for the product. The U.K. government might decide to set an embargo on some country. This will mean that Cadbury Dairy Milk cannot be sold to that country. Economical factors that affect Cadbury Dairy Milk: An economy goes through periods of increased economic activity known as booms, followed by periods of economic decline known as recessions. Various economical factors should be taken into consideration while making decisions regarding the marketing of Cadbury Dairy Milk. An increase in interest rates would encourage saving and discourage spending. Therefore there will be no innovation or investment on development of Cadbury Dairy Milk. And it could also mean falling sales as consumers will also be more into saving and will therefore limit purchases to basic necessities. A decrease in interest rates would have the opposite effect. There are daily fluctuations in the exchange rate. These fluctuations, also known as appreciations and depreciations in exchange rate, will determine how much of the product can be exported and what quantity of raw materials can be imported.

 At times of boom, the economy is developing at a fast rate. Consumers will demand more and better products so Cadbury Dairy Milk will have the opportunity to introduce new products under its brand, and it will also have high sales during this period. At times of recession consumers will be unwilling to spend money on anything other than necessities. Cadbury Dairy Milk will experience falling sales.

26 Inflation is a sustained general rise in price. Cadbury Dairy Milk is affordable. However, if the price of Cadbury increases due to inflation, it will most likely experience falling sales. Unemployment occurs during periods of recession. When there is unemployment in the economy, people start to lose their jobs and there will therefore be a decrease in demand for products that are not a necessity. Cadbury Dairy Milk might experience falling demand during periods of high unemployment in the economy. Social factors that affect Cadbury Dairy Milk: Changes in society can have consequences for marketing plans. Social factors take into consideration the change in demography, cultural values and trends in the society where the products are sold. If more people start dieting, it will decrease sales and popularity of the confectionary market and Cadbury Dairy Milk might have to come up with a less calorie product idea. Cadbury Dairy Milk is sold mainly to young women and children. If there is a decrease in the population belonging to that criteria, Dairy Milk will lose its target market. If environmentalist groups start raising awareness green packaging design for products, Cadbury might have to change its packaging in order to follow the trend. There might be a warning issued against the consumption of an ingredient in Dairy Milk, which means that alterations might have to be made to the recipe. Giving chocolates as presents might start to be an increasing trend. This would give Cadbury the opportunity to change the packaging style and sizes available for Dairy Milk. At times of Halloween and Easter, Cadbury Dairy Milk might experience increasing sales. During Easter, Cadbury Dairy Milk could sell egg-shaped bars. Technological factors that affect Cadbury Dairy Milk: Businesses now operate in a world of a rapid technological change. Changes in technology can affect marketing plans in a variety of ways. Production methods might become less costly due to improvement in technology.

 Increase in capital intensive methods of producing Dairy Milk would mean making workers redundant. The community would be against this. Improving the technology used for research and development and production will require a huge amount of capital. Advancements in technology could lead to improvement in advertising media. It could mean that a larger number of target markets can be reached, or it could also mean adding special features to T.V. advertisements, like a 3D effect, for example. 27

CONCLUSION
On doing this coursework I came to know a lot about Cadbury, and its bestselling product Cadbury Dairy Milk. Its main competitors are Toblerone, Nestle and Galaxy. Cadbury is a well appreciated brand. Everyone likes the product. In fact some children jump at hearing the word Cadbury. Dairy Milk has gained a very good reputation in the chocolate market, not as a product of Cadbury, but as a product in its own right. When asked whether they prefer Nestle Kit-Kat over Cadbury Dairy Milk, most people replied with Cadbury. Others found it a little difficult to decide, as they are fond of chocolate itself, the brand name does not matter to them. Most teenage girls complained that Cadbury Dairy Milk was a little too plain and sweet. They prefer Kit-Kats wafer. But teenage boys seemed to react differently; they preferred Dairy Milks smooth texture to Kit-Kats wafers. Women above 45 years of age preferred dark chocolate and a bright and shiny packaging. But men of above 45 years of age preferred milk chocolate with multicolored packaging. Most people buy Cadbury Dairy Milk because its easily available as a convenient snack and for satisfying their desire for chocolate. Thats another reason why Dairy Milk is so popular, its availability.

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APPENDIX
QUESTIONNAIRE FOR CADBURY DAIRY MILK
Name: ____________________ Gender: Male Age: 08-12 Occupation: Professional Businessman Service Student Housewife Do you like Cadbury Dairy Milk? Yes No How frequently do you buy Cadbury Dairy Milk? Occasionally Monthly Weekly Daily Where do you usually buy Cadbury Dairy Milk from? Super markets Local shops Service stations Grocery stores

Female

13-19

20-29

30-45

45+

Other (If other please specify) ____________________ What would be your reasons for purchasing Cadbury Dairy Milk? To indulge a craving For a special occasion For health and nutritional value Attractive packaging Other 29 In which pack size do you usually purchase Cadbury Dairy Milk? Small Family Which type of chocolate do you prefer? Dark chocolate Milk chocolate White chocolate Flavoured chocolate Other (If other please specify) ____________________ What type of fillings do you prefer in chocolate? Fruits and nuts Caramel Coconut Cream Other (If other please specify) ____________________ Which shape would you prefer for a chocolate bar? Rounded ends Triangular Rectangular Fingers Other (If other please specify) ____________________ Which of the following brands of chocolate do you usually purchase other than Cadbury Dairy Milk? Toblerone Nestle Kit-Kat Hersheys

Ferrero Rocher Other Do you like the packaging of Cadbury Dairy Milk? Yes No What kind of packaging would you prefer for chocolate? Single coloured Multi coloured 30 Drawings and symbols Bright and shiny Other (If other please specify) ____________________

THANK YOU FOR YOUR COOPERATION

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BIBLIOGRAPHY
www.cadbury.co.uk Collins Applied Business - AS for AQA Student's Book The Portable MBA in Marketing by Charles D. Schewe and Alexander Hiam

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