Assignment

[Marketing in a Digital world]

Submitted by
Vivek Agarwal
Batch 2019-2021

Submitted to
Mr. Fawad Khan

IILM Academy of Higher Learning, Lucknow

PRODUCT MIX OF CADBURY
PLC OF DAIRY MILK
STP STRATEGY FOR CADBURY
Segmentation
1. Demographic Segmentation
2. Income –
3. Premium products – Dairy milk silk, dairy milk glow etc.
4. Basic products – Dairy milk, Dairy milk shots etc.
5. Behavioral Segmentation
6. Occasion Segmentation – Celebration, After Dinner as a dessert.

Targeting
Mass Targeting – Targets everyone.

Positioning
7. Youth see Cadbury as a synonym for chocolate
8. In the initial stage it positioned itself as Spontaneous, special, carefree,
real moments (Mazza aa gaya)
9. The tagline “Meethe mein kuch meetha ho jaaye” positions Dairy Milk as
a dessert (sweet)
CDM Silk has been positioned to be about 'moments' -- moments when the
chocolate is enjoyed, moments which are like silk.
Streams for Porter’s generic strategies

Cost leadership
 The primary objective of using this strategy is to preserve the market leadership
position through efficient value chain management.
 This strategy allows Dairy Milk to expand the market share by targeting the
middle class, which makes the largest proportion of overall consumer market mix in
most of the countries. Middle class consumers generally place high importance to the
pricing factor and cost leadership is the best strategy to cater the needs of this
consumer segment.
 Dairy Milk focuses on affordability and easy accessibility of its produce across
the globe, which leads towards high brand awareness and high sales growth and
provides a strong competitive advantage basis.
 Other than charging low prices by lowering production cost and maximizing
supply chain efficiency, Dairy Milk frequently offers discounts and coupons to achieve
sales targets and handle the competitive pressure by its closest rival. The intended
outcome of these discount and promotional campaigns is to increase brand
popularity and encourage consumption.

Differentiation
 The adoption of differentiation as a secondary generic strategy allows Dairy Milk
to expand the customer base by emphasizing over the unique product features.
 Dairy Milk's strategic objective of using this strategy is to differentiate by
embedding the innovation and address the consumers’ growing health concerns. For
example Dairy Milk has extended its product line after studying the consumers’
changing interests to differentiate itself from competitors and expand the scope of
opportunities within the industry. The combination of the differentiation and cost
leadership has helped Dairy Milk build a strong and loyal customer base.
 Through differentiation generic strategy, Dairy Milk positions its product offerings
in a way to stand out and be different from the available alternatives. Being the
experienced brand with strong foothold, the company uses differentiation as a tool to
reduce the pressure by other brands. Heavy investment in marketing, advertisement
and celebrity endorsement is made just to differentiate the Dairy Milk from other
brands.
 Extensive experience, the oldest brand and strong presence in all over the world
are some differentiation factors that are highlighted in the company's marketing and
communication strategies.
 Other than these, the brand logo is also used to set the differentiation basis. The
unique and distinctive brand logo has established a strong brand image in
consumers’ mind. Although the brand has undergone many revisions, the essence
has remained the same, which also serves as a strong differentiating factor.
Focus strategy

 Dairy Milk adopts the focus strategy both in terms of low cost and offering the
best value. The low-cost focus strategy is adopted by serving the needs of a niche
market segment at the lowest possible price. While, best value focus strategy is
adopted by emphasizing over the taste, size and design of the product that could
best match the customers’ needs and requirements.
 By focusing on product attributes, Dairy Milk revises its branding strategies and
brings continuous changes in the product designing and packaging to satisfy the
customers’ psychological expectations and maximize value for money.

Intensive Growth Strategies

Intensive growth strategies deal with the development of new products or markets to
accomplish corporate growth objectives. The multinational companies like Dairy Milk
consider these strategies to understand how to further penetration into existing markets
is possible and how the customer base can be expanded through the market and/or
product development. Intensive growth strategies help the firms to grow quickly by
actively seeking the product/market expansion opportunities. The unique combination of
the three main generic strategy streams- cost, differentiation and focus set the basis for
Dairy Milk’s intensive growth strategies. These growth strategies are depicted into the
product-market expansion grid, which includes four dimensions- market penetration,
product development, market development and diversification.
Facebook marketing plan Cadbury
Cadbury Facebook Marketing to build on top of the 30 sec ad that they
have created using this sweet friendship duo to use their brand “Dairy Milk”
as a tool to build friendship and rapport.
Most of us who have been lots of social media friends so, we can share e-
chocolate to our social media friends. They definitely understand the beauty
and the enigma that the relationship between this duos brings to our lives so
this interesting concept of sharing something sweet to explore a bridge
connected with the audience on an emotional level.

To position itself as a way for people in India to grow their friendships,

Cadbury ran a 2-month cross-platform campaign, including digital and
traditional channels.

Instagram also has the feature to share 30 sec video. So we can share
same add add on instagram. Although we add-up a feature which is show in
their story as dairy milk chocolate icon.
BUSINESS CANVAS MODEL
PLC OF CELEBRATION
STP STRATEGY FOR CADBURY CELEBRATION

Segmentation, targeting, positioning in the Marketing strategy of Cadbury

The segmentation of Cadbury products is based on mix of demographics, behavioral

& psychographic factors; like on the basis of Income & occasions. You will
find people of all age groups and demography enjoying Cadbury products.
Cadbury’s product offerings are mostly based on the production capacity, pricing of the
various packs, packaging designs, and storage facilities at the outlets, occasional &
situational demands, celebrity endorsements and many other factors.

Although Cadbury has targeted people from all age groups but it has distinguished its
product offerings to specific class of consumer groups. For example, Cadbury
Temptations and Bourneville are meant for higher end consumer groups who are willing
to pay more & Cadbury SILK is targeted to the people who can’t resist chocolates. It has
positioned itself as a symbol of good times & a spontaneous brand that is carefree,
meant for special as well as real moments in life.
GENERIC STRATEGY OF CADBURY CELEBRATION
Industry Cost Leadership Differentiation Focus
Force
Entry Cadbury’s are a large Dairy Milk has been Cadburys marketing and
Barriers MNC and have a around since 1905 brand image is world
comparative advantage making Cadbury a class and will be hard for
in the marketplace vs household name. This new entrants to compete
an absolute advantage may deter new entrants with.
therefore the extent to to the market.
which they can cut
prices is limited.

Buyer Cadbury have the There are few chocolate Most brands have an
Power ability to cut prices but companies as large as increasing range of
it would not be Cadbury in the global products giving buyers
advantageous to their market meaning buyers more alternative, which
market strategy. have less power to works against Cadbury.
negotiate.
Threat of Cadbury is a premium Cadburys customers are Cadburys Green and
Substitute chocolate brand and attached to Blacks is a luxury,
using low prices is not differentiation sustainable sourced
an option to defend chocolate bar which
against substitutes as it would be hard to
may damage their replicate with the same
brand image. profit margins for
competitors.

Rivalry Selling in high Cadburys customer Cadbury would have to

quantities results in brand loyalty will retain meet differentiation-
larger orders to their customers. focused customer needs
supplies giving them of their competitors.
the benefit of
economies of scale.
Facebook marketing plan Cadbury celebration
Cadbury Facebook Marketing to build on top of the 30 sec ad that they
have created using this sweet friendship duo to use their brand “Dairy Milk”
as a tool to build friendship and rapport.
Most of us who have been lots of social media friends so, we can share e-
chocolate to our social media friends. They definitely understand the beauty
and the enigma that the relationship between this duos brings to our lives so
this interesting concept of sharing something sweet to explore a bridge
connected with the audience on an emotional level.

To position itself as a way for people in India to grow their friendships,

Cadbury ran a 2-month cross-platform campaign, including digital and
traditional channels.

Instagram also has the feature to share 30 sec video. So we can share
same add add on instagram. Although we add-up a feature which is show in
their story as dairy milk chocolate icon.
BUSINESS CANVAS MODEL FOR CELEBRATION
PLC OF OREO

OREO ever since its inception has been winning over market share in almost all
countries it finds presence today. It is an evaluation of the the product and the Brand.

OREO is slowing entering in the low maturity state in India.

1) It has an increasing customer base.

2) Market share is increasing steadily and now it has emerged as a market leader and is
competing with the top crème biscuits in the country.

SEGMENTATION-

 It defines the consumer.

Geographic: Urban and semi-urban areas ( North,south,east,west)

Tier 1 Cities & a bunch of Tier2+Tier3

Demographic-

Age- 6-18, 18-24, 24-39

Education- literate
Income: Upper to middle income

SEC: A1, A2, B1, B2

Psychographics:- Outgoing, readiness to try new products, experimental by nature,

don’t mind spending a little extra on snacking, brand-conscious, lifestyle is comfortable

TARGET SEGMENT- It helps to select the consumer.

The Target segment in India for Oreo should be split into two parts-

1) Primary Target Segment

2) Secondary Target segment

PRIMARY BUYERS

The primary segment is the one for whom the product is designed. Most revenue will
come from the primary target market. These customers share common characteristics
and behaviors, account for the highest volume of sales and are most likely to buy now.

Here it is CHILDREN & TEENAGERS & COLLEGE GOING

The positioning of Oreo as a Twist-lick-dunk cookie is very luring to the kids and
teenagers who are the highest consumers of milk.The Cookie are moreover Creme
cookies and generally consumed by children as they like creme.The adorable ads that
show children bonding with their parents and siblings are admired by the small children.

SECONDARY BUYERS

The secondary market includes future primary buyers, those buying at a high rate within
a small segment and people who influence primary buyers. Their characteristics and
buying behaviors usually differ from those of the primary market.

Here it is ADULTS, OFFICE GOING, and PARENTS

 
The target segment for Oreo in India that is the urban professionals between 24 and 39
years old. Based on India census data, this market consists of 32 million individuals. In
addition, Kraft‟s access to Cadbury‟s urban distribution network makes this target
market accessible and actionable.More importantly, this segment is differentiable by its
snacking habits. This target customer has a rising income, fast-paced lifestyle, and
irregular work schedule, which leads to a greater likelihood of snacking.

 POSITIONING-

It helps to tap the consumer.

Oreo’s uses the emotional appeal here in to reinforce its product as a binding force
between Parents and their children. Oreo has used its global positioning ‘Twist-lick-
dunk’ for the Indian market as well but has manipulate with the price ans SKU. It helps
tap the small children who would pester their parents to buy them oreo cookies.

Indians smacking and eating out sector is huge and considering the same Oreo has
positioned itself as a tasty snaker or mid-meal.Although snacking is a part of Indian
culture, it has traditionally been associated with leisurely consumption.However, the
purpose of snacking is changing as customers seek snacks that are convenient,
satiating, tasty, and easily portable for on-the-go consumption. It has recently appointed
young and zealous Ranbir Kapoor as its Brand Ambassador is an attempt to to tap the
young and adult market in India.
Porter’s competitive strategy analysis in Oreo brands

Threat of entry: the threat of new entrants into food industry is generally
high and this extends to the snacks, biscuits and other similar brands. This
is because of low initial capital required to establish a food processing
factory. The increasing demand for food items due to the swelling world
population has made the industry attractive to potential investors. However,
established brand names of Oreo have scared away new entrants into
markets where Oreo brands are highly recognized like China, Canada, US,
Indonesia, Japan and Mexico among other locations.

Power of suppliers: The suppliers of raw materials and labor are diversified;
this has drastically reduced their power. Raw materials can be easily
obtained, an example is milk and sugar whose supply is not only high but
also readily available and can be obtained from various sources. Inputs are
highly differentiated especially in the production of Oreo chocolates and
biscuits, and supplier size is relatively big which gives the company more
independency to choose the best supplier hence reducing their powers.
The switching cost from one supplier to another is almost zero and there
exists a variety of substitute inputs for the production of Oreo products.

Power of Buyers: The power of buyers is very high because of very low
switching costs in the food industry. Consumers of food products are
generally sensitive to price changes which make buyers to influence prices
of products. They can easily switch to competitor products hence the need
to develop brand name and build consumer loyalty. However, large size of
buyers of Oreo brands and market segmentation has helped in reducing
the power of buyers.

Substitutes: Oreo products have a variety of cheap substitutes, ranging

from milk powder, snacks and biscuits. This is complemented by low
switching cost to substitute products. Building Oreo brand name and
consumer loyalty is necessary to maintain high performance of the
products

Competitive rivalry is relatively high, main competitors being Keeler, which

is the second largest in the US, whose sales have been increasing
significantly and is also engaged in massive product innovations and
diversification. Competitive rivalry is high in this industry which is attributed
to easiness of entry by investors. However, brand recognition and product
differentiation has sustained the performance of Oreo brands in the global
market. Low installation costs, growing demands for food products and low
exit rate from the industry have increased competition in the industry.

FACEBOOK ADVERTISEMENT

The communication campaign for Oreo Choco Crème brings a fresh twist
to Oreo’s ‘Family Togetherness’ platform, by celebrating the special
relationship shared by siblings. The TVC campaign was unveiled on Oreo’s
Facebook page, giving fans a sneak-peek into the campaign before it went
on air. Highlighting the elements of surprise and delight, a Facebook app –
Oreo surprise has also been launched, wherein fans can earn points by
virtually dunking Oreos in a glass of milk. Scoring 100 points opens a
surprise, in the form of the new Oreo Choco Crème TVC. A similar concept
was also used on the YouTube channel of Oreo, in which people were
encouraged to play the Oreo surprise game and watch the TVC.
Business canvas model for oreo