Ashutosh

PRACTICAL NO. 4

Que.

a. In the same organization visited online, study its marketing mix with respect to place and
promotion and submit a presentation on any one mix (place/promotion) in the class.

b. select any organization and study its supply chain management.

Ans.

Marketing Mix of Dairy Milk – Dairy Milk Marketing Mix

Dairy Milk is owned, produced and marketed by Cadbury in the global market and by
Hershey Company in the United States. It is a confectionary and is associated with the food
industry. It was introduced to the consumer market in the year 1905 by Cadbury Company in
the United Kingdom and later its products were sold globally because of its immense
popularity. Dairy Milk In the year 2014, was ranked as the best chocolate bar in the United
Kingdom. Some of its competitors are as follows-

• Amul Chocolates
• Nestle
• Ferrero Rocher

❖ Place in the Marketing Mix of Dairy Milk:

Cadbury Dairy Milk is a global brand with its products sold in several countries like
France, China, Brazil, Russia, Canada, Italy, India, United Kingdom and Pakistan.
Manufacturing of different varieties of Dairy Milk takes place in Poland, France and Ireland.

Cadbury started marketing its products in India in the year 1948 and presently owns
four sales offices and five manufacturing-offices. Dairy Milk has an intensive policy for
distribution of its products and hence has created a capable and efficient transportation chain.
The product is easily available in any grocery store, corner stores, convenience store, discount
store and supermarket.
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❖ Promotions in the Marketing Mix of Dairy Milk:

Dairy Milk has a global presence and to maintain its position as number one in
consumer market the brand has taken several steps. It has launched various promotional
activities that will help in creating further brand awareness. Its purple packaging is iconic and
easily distinguishable. Its commercials are catchy and are aired on television and radio. Ads
are also displayed in magazines and newspapers. Social media has also been roped in to
promote its products.

Indian actor Amitabh Bachchan has been associated with Dairy Milk for a long
time. Koch Meath Ho Jaye has been one of the most popular and highlighted slogans of Dairy
Milk. Dairy Milk has designed a customer-driven strategy and targeted kids, women and also
men as their customers. It is a sweet dish for everyone, is the mantra of this brand. Dairy Milk
has an intimate association with milk and it reflects in most of its slogans and advertisements.
In the year 2007, a campaign titled Gorilla was premiered at Big Brother finale and became a
success story.

The Supply Chain Management of Cadbury Dairy Milk

Cadbury dairy milk is loved by all. It is one of the most known and best chocolates
consumed globally i.e., in 60 countries. The journey of Cadbury dairy milk starts from
production process and ends to consumption by chocolate lovers. This complete process is in
continuity that almost takes duration of 3-4 months where production process takes larges time.
The main participants in supply chain management of Cadbury dairy milk are production
process, manufacturing process, distribution process and retailing. As chocolate involves milk,
cocoa mass and sugar as its main ingredients, therefore the production process of all the three
are different.

The production process involves greater risk and cost as if it is not up to the
requirement, further process of chocolate manufacturing could not be done. However, the
management has wide availability of choice to choose the best supplier of each of the three i.e.,
milk, cocoa and sugar. Cadbury has created long term and strong relationship with each of its
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supplier. Most European daily farms supply fresh drinking milk to its consumers and to
Cadbury that uses the milk in the production process. The milk obtained from the cows and is
refrigerated for 48 hours. Then the milk is sent to processing factories that homogenized and
pasteurized it and again refrigerate it.

Later, the milk is condensed and is sent to the Cadbury dairy milk’s processing
department. The cocoa beans are obtained mainly from Ghana, Africa. Besides this, cocoa is
also obtained from Indonesia, India and the Caribbean where they are grown and harvested.
Then the cocoa pods are removed from beans that are than dried and gathered in a stack. These
stacks are then sent to European region at processing factories that extract cocoa butter/ cocoa
mass or cocoa powder. The sugar is extracted from sugarcane that is harvested in most regions
of Europe.

The billets are collected from the harvested sugarcanes and are sent to the processing
factories that provide manufacturing factory of Cadbury with processed sugar. The cocoa
mass/butter/ powder, milk and sugar are received to Cadbury Manufacturing concern in
Bourneville where the Cadbury dairy milk is processed and manufactured. At Cadbury Factory
sugar and cocoa is added to condensed milk to make it creamy rich chocolate liquid. Then this
liquid is evaporated by pin mill to get chocolate crumb. The cocoa butter and cocoa liquor are
mixed besides chocolate flavoring. Emulsifiers are added as thick chocolate is required for
molded blocks. However, the chocolate liquid of thinner consistency is required for covering
bars and assortments.

Both dark chocolate and milk go through the same production stages which influencing
and tempering to get the gloss and smoothness of Cadbury chocolate. In cinching, the semi-
liquid chocolate mixture is beaten and mixed develop to remove volatile flavors and reduce the
particle size viscosity. In tempering, the liquid chocolate is cooled and mixed under carefully
controlled conditions that ensures chocolate crystallizes fats are in stable form. For this, the
chocolate liquid goes under sophisticated machinery that is specially developed for tempering
process. This tempered chocolate could be used in different ways to produce products of
different brands.

The tempered chocolate liquid is poured in molds that are shaken and then cooled.
These molded blocks are transferred to wrapping plants of high speed. When these chocolates
are cooled down, then they go for packaging. Then these chocolates are packaged together that
are loaded for distribution. The packaged goods are sent to warehouses from where goods they
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are distributed locally and internationally in more than 60 countries. The basis of distribution
is on the basis of creation of demand in a particular country or region. When final product i.e.,
Cadbury dairy milk is reached to its destination which include UK and other countries, these
are distributed further to retailers who sells its. The Cadbury dairy milk is sold through
supermarkets, hypermarkets, store, local small shops etc. to its final consumers.