Marketing Management I

Project Report on “ Mondelez International”

 Mondelez International

Submitted to
Prof. S.K.Pandey

By
Group 11
Arpita Choudhary PGP12102
Gagan Sharma PGP12116
Ishita Bhattacharya PGP12089
Riya PGP12089
Saloni Singh PGP12268

In partial fulfillment of the course requirement for

Marketing Management I

On
13th December 2021
 Letter of Transmittal
To
S.k.Pandey
IIM Rohtak

Dear Professor,

Subject: Final project report submission

We hereby submit our final project report on the product Cadbury. We have studied and applied
all the concepts learned in class to understand the product and its market and formulate a plan for
revival for the same

Regards
Group 11
Arpita Choudhary PGP12102
Gagan Sharma PGP12116
Ishita Bhattacharya PGP12089
Riya PGP12089
Saloni Singh PGP12268
 Executive Summary

Mondelez International, Inc. is an American multinational confectionery, food, holding and

beverage and snack food company based in Chicago, Illinois. Mondelez has an annual revenue of
about $26 billion and operates in approximately 160 countries. The Mondelez International
company manufactures chocolate, cookies, biscuits, gum, confectionery, and powdered
beverages. Cadbury India Limited, a subsidiary of Mondelēz International Inc., is focused on
creating delicious moments of joy that are encapsulated in its name – “monde” for world and
“delez” for delicious. The project covers the marketing management philosophy of the
conglomerate and also its analysis using the different frameworks. The product that is taken for
this project is Cadbury Dairy Milk. The project covers the consumer decision making process
while purchasing the product. It also discusses the segmentation, targeting and positioning
strategy along with the product mix strategies. Lastly, revival strategies have been provided
along with the recommendations

Table of Content

1. Marketing management philosophy

2. SWOT Analysis

3. PESTLE ANALYSIS

4. 5C ANALYSIS

5. Consumer Decision Making Process

6. STP of Cadbury

7. Product Life Cycle of Cadbury Dairymilk

8. References
 Marketing management philosophy
I. Which marketing management philosophy does your conglomerate/SBU follow?

Humaning is a unique, consumer-centric approach to marketing that creates real, human

connections with purpose. Mondelez no longer markets to consumers but creates connections
with humans.
Humaning is a natural fit for a company that creates the snacks that form the basis for
connections between people all over the world and is a clear manifestation of the Mondelēz
International brand purpose to do what is right: leading the future of snacking by offering the
right snack, for the right moment, made the right way. With humaning, it feeds the hunger for
human connection in everything the company does by being fully consumer-centric: Listening,
empathizing, and adapting to fit consumer needs at any moment with perfectly crafted products
that are a source of delight.
It does not believe in advertising directly to children under 12 years of age, regardless of a
product's nutritional profile. In 2005, Mondelez International was the first company to announce
global policies for advertising to children. Thus it follows responsible marketing as well.

II. Is your Conglomerate/SBU myopic in following the management philosophy?

According to the marketing policy mentioned above, it can be observed that Mondelez is
customer-oriented. Thus, Mondelez is not marketing myopic but Customer oriented.

This can be verified by the changes it develops in its products according to the needs and wants
of customers. For example, it has not just single chocolate bars but in a country like India where
customers want to have a box of sweets during Diwali to celebrate, Mondelez made sure that
such needs of customers are satisfied and made specific boxes of chocolates that can be used by
the Indian customers to satisfy their specific needs.

III. Is your Conglomerate/SBU adaptable to the shifting paradigm?

Yes, Mondelez is adaptable to the shifting paradigm. This can be seen as the bitter beverage,
chocolate, was initially transformed into sweet delectable solid bars to make it more acceptable
to the masses.
The manufacturers had been experimenting with the art of chocolate-making techniques to churn
out newer variants and flavors consistently.
Today, the shift is evident as the company is moving back to the original chocolate with high
cocoa percentage for the ‘health-conscious people and simultaneously producing chocolate with
much less milk for ‘not so health-conscious people.

SWOT Analysis
Strengths
● Dominant Brands: Mondelez's product portfolio includes 53 other brands that each
produces over $100 million in yearly revenue. Given the company's emphasis on
innovation, it often adjusts basic items when selling them internationally to better meet
local tastes and distribution growth, the company's market dominance is unlikely to
erode.
● Superb Performance in New Markets: Mondelez International has developed competence
in entering and succeeding in new markets. The expansion has allowed the company to
diversify its revenue streams and reduce economic cycle risk in the markets it serves.
Mondelēz saw its emerging markets grow by 19.6% in net revenue including double-digit
growth in Brazil, India, Russia, and Mexico till 30 June 2021
● Mergers and acquisitions: In recent years, it has effectively integrated some technology
businesses to streamline operations and develop a trustworthy supply chain. Chipita, a
European manufacturer of cakes and pastries, was recently purchased by the corporation.
● Product Innovation: Mondelez International keep developing new products or mixing two
of its product to create a new identity so that the customers don’t lose its interest and their
needs and wants are satisfied. Some of the products in India like Oreo Orange,

Weaknesses
● Uneven Execution: While Mondelez has a strong management team led by CEO Irene
Rosenfeld, the company's execution has been lacking since its North American
supermarket segment was spun off. In certain global markets, like India, Mondelez has
been plagued by capacity constraints. Mistakes in pricing have also been an issue,
 particularly in Brazil and Russia. Indeed, they allowed low-cost competitors to take the
business in some circumstances. In Brazil, it was slow to react to a weakening economy
in the gum category
● Market Research: Mondelez International performed market research in 2020 last of the
market it serves. As a result, it is making judgments based on data that is old, even
though client needs may have changed.
● A high attrition rate in the workforce: in comparison to other companies in the industry
Mondelez International has a higher turnover rate and must spend significantly more on
employee training and development than its competitors.
● Inefficient Financial Planning: The current asset ratio and liquid asset ratios suggest that
the company can use the cash more efficiently than what it is doing at present. The
current ratio is 0.61 compared to the industry average of 1.65. The liquid ratio is 0.41 as
compared to the industry average of 1.12

Opportunities
● Emerging Markets: Mondelez International with its sound balance sheet makes sure it
acquires all the relevant markets that can ensure potential growth for the future as well.
The key Acquisitions beings Chipita (May 2021), Grenade (Mar 2021), Gourmet Food
Holdings (Mar 2021)
● New customers from online channels: The corporation has put a lot of money into the
internet platform in the last few years. Mondelez International has gained access to a new
sales channel as a result of its investment. In the coming years, the corporation can
capitalize on this opportunity by better understanding its customers and meeting their
demands through big data analytics.
● New Trends in Customer Behaviour: Mondelez International may be able to get into new
markets as a result of changing customer behavior. It gives the company a wonderful
chance to diversify into new product categories while also generating new revenue
sources.

Threats
 ● Low-Cost Rivals: For market giants like Mondelez, competition from smaller, regional
brands and/or private labels is always a source of concern. As a result, the corporation
must remain inventive, carefully control pricing discrepancies, and maintain a substantial
advertising expenditure. Otherwise, as it has in the past in less stable overseas
marketplaces, share erosion may occur.
● Currency Fluctuations: Because the company operates in a variety of nations, it is subject
to currency swings, which are exacerbated by the turbulent political atmosphere in
several markets throughout the world.
● Local Distribution Threat: Local distributors' growing power poses a danger in some
regions, such as India, where the competition is paying local distributors bigger margins.

PESTLE ANALYSIS

Political

● Political Stability: Mondelez International Inc. operates in a number of countries, each

with its own set of political issues. Growing tensions and instabilities in the global
political climate may have an impact on industry growth and limit Mondelez
International Inc.'s growth potential.
● Changing policies: Changes in government policy are detrimental to company
performance due to uncertainty. Mondelez International Inc. must research current
political trends in the country because changes in government may alter the government's
priorities for the development of certain industries.
● Protests/pressure groups and governance system: Pressure organisations,
social/environmental activists, and labour unions should all be closely scrutinised by
Mondelez International Inc., as protests play a significant role in the policy-making
process.
● Bureaucracy and corruption: Bureaucracy and corruption have a negative impact on the
business climate. Due to decreased public faith in commercial organisations and the
general political and economic structure, operating in nations with high levels of
 corruption and inadequate law enforcement makes the business environment extremely
risky for Mondelez International Inc.
Economic

● Economic/business cycle stage: Organizational performance is directly influenced by a

country's economic progress. Mondelez International Inc. can benefit from growing
economies.
● Inflation/employment/interest/exchange rates: The ability of Mondelez International Inc.
to pursue its long-term growth strategy will be determined by the rate of GDP growth.
High unemployment indicates that there is a surplus of labour available at cheaper wages.
Mondelez International Inc. can cut its production costs by operating in such a market.
● Economic structure: Mondelez’s business operations are influenced by the current
economic framework. A monopolistic or oligopolistic structure will have a different
economic and regulatory environment than monopolistic or perfect competition.
● Labor market conditions: Wage rates and worker supply are determined by labour
demand and supply. To understand how it can attract individuals and harness their
abilities to increase business performance, Mondelez International Inc. must evaluate and
forecast labour market trends.

Social

● Demographic trends: For multinational corporations such as Mondelez International Inc.,

changes in demographic patterns such as population ageing, migration trends, and
socioeconomic characteristics are critical.
● Equality and power distance: When entering markets with a high or low power distance,
Mondelez International Inc. must alter its business management procedures. Growing
inequality is changing the power structure in many countries, which has major
ramifications for multinational corporations like Mondelez International Inc.
● Spending patterns and behavior: The purchasing power of money has an impact on
consumer spending patterns. It's critical to understand customers' preferences and
 spending patterns by studying and forecasting their purchasing power based on pertinent
economic data.

Technological

● Social media marketing: Mondelez International Inc. can boost its business by utilizing
the benefits of social media marketing. Technological advancements can be exploited to
kick off innovative social media campaigns aimed at building online brand communities.
● Research and development: To understand how new technologies influence the firm's
value chain and current cost structure, Mondelez International Inc. must examine rival
investments on a local and macro level.
● Shortened product life cycles: The use of new technology has shortened the time it takes
to develop a new product. Mondelez Inc. should quickly develop new goods, diversify its
product line, integrate flexibility into the value chain, and cultivate positive business
relationships with value chain partners.

Environmental

● Renewable technologies: Subsidies are available in several countries to encourage

investment in renewable technologies. Mondelez International Inc. can take advantage of
it by investing in renewable technologies to maintain long-term viability.
● Attitude towards eco-friendly products: Green/eco-friendly items are becoming
increasingly popular. Mondelez International Inc. can seize the opportunity and use green
business practices to gain stakeholders' trust.
● Renewable technologies: Subsidies are available in several countries to encourage
investment in renewable technologies. Mondelez Inc. can take advantage of it and invest
in renewable technologies in order to secure long-term viability.
Legal

● Employee protection laws: Employee/labor health and safety requirements must be

followed by Mondelez Inc., as certain nations have rigorous regulations to safeguard
labor safety.
● Consumer protection laws: To protect customer data, Mondelez International Inc. must
research data protection regulations. To guarantee compliance with consumer protection
regulations, the company must consider several considerations.
● Intellectual property laws: Intellectual property laws are in place to safeguard businesses'
patents and valuable ideas. Inability to safeguard intellectual property rights may result in
a loss of competitive advantage, weakening Mondelez International Inc.'s position in
comparison to other market participants.

5C ANALYSIS

● Company
Brand equity- mondelez international possesses a reputed brand equity among both existing and
new customers, which facilitates its expansion into new markets.
Culture- There exists a strong culture of product innovation and modification of processes
Production – In order to successfully cater to the increasing customer demand, Mondelez has a
robust, flexible and highly effective supply chain which enables it to handle increased levels of
production

● Collaborators
Number of suppliers and their abilities – A large number of suppliers becomes difficult
to manage, whereas too less number of suppliers poses a threat of supply chain
distribution
International risks and nature of suppliers – Mondelez faces a critical question about whether to
localize their products and if so, how much? This in turn governs the other decisions from
localized production, marketing and other processes.
Position and bargaining power in the value chain – If the collaborators have strong bargaining
power then Mondelez Irene will not be able to sustain higher margins even with higher
marketing expenditure.

● · Customers
Targeted market segments – The market segment includes both high and low-end customers.
Most of their customers are families and children.
Frequency of purchases – The frequency and quantity of purchases is high among targeted
segments. Mondelez implements newer marketing strategies with discounts and family deals
which further increases the frequency and quantity of purchases
Customers’ needs – Customers demands and preferences should be analysed and their desired
features should be incorporated. The recent switch to healthier alternatives as well as the
customers preference of quality over price further has impacted the functioning of the
organization.
·
● Competitors
Using Porter’s five forces, we can analyze the competitors :
Bargaining power of buyers: A strong bargaining power of buyers puts pressure on Mondelez to
revise its pricing strategy and offer high-quality products at discounted prices. This usually
happens when there exists in the market a substitute product, a large number of alternatives, and
low switching costs.

Bargaining power of suppliers: A weak bargaining power of suppliers usually exists since
Mondelez usually dictates the prices and the suppliers have to accept their terms and conditions.
This happens due to a large number of suppliers, increased net supply, and the supplier’s lack of
control over the distribution network.

Competitive rivalry: There exists high competition which poses a threat to Mondelez
International’s growth in the international market and also hinders the company’s profitability
(Eg, Nestle, . Furthermore, the product differentiation is low and it has become more and more
difficult to set up a differentiation basis.
Threat of substitutes: A gradual increase in health consciousness and shift to healthier choices
has raised concerns for Mondelez International. Technological innovation has made it possible to
introduce similar products in the market thereby acting as threatening substitutes. A strong threat
of substitutes exists due to the high performance: cost ratio of substitutes, their increased
availability, and low switching costs.

The threat of new entrants: The threat of new entrants is moderate since Mondelez is a reputed
brand with high brand equity and newer entrants have a negligible effect on Mondelez’s market
share.

● Climate
Political environment: Mondelez International needs to study and be updated with labor laws, tax
laws, changing trade regulations: especially since it caters to multiple markets, there is an
increased chance of political instability.
Social environment: Rise in health consciousness and shift to healthier alternatives have
adversely affected the organization. However, with growth in population and rising low-end
market tiers, there exist ample opportunities for the company to grow.

Consumer Decision Making Process

Methodology
To analyze the consumer decision-making process, we took a sample size of 20 with whom we
had interviewed to understand the process. The theoretical process consists of needing
recognition, information search, evaluation of alternatives, purchase and post-purchase behavior
was broken down into simple questions which mainly revolved around the why, when, and how
of each step. We asked them about the features like taste and brand they look for and the
temptation they have to make the final choice. Based on the answers to these questions, we
divided the process into five major components namely
 1. Triggers of purchase
2. Stages in the process
3. Inputs are taken at each stage of the decision-making process
4. The roles different people played in the process
5. Time taken to reach the final decision

The answers to these questions helped us develop different user profiles we can find in the
market and summarized the process each of them would go through. Knowledge of this process
would help us in targeting and positioning our product. This process would also help us
understand the current users we have and help us decide how to expand our customer base.
Here we found customers who were conscious about the amount of sugar used to make our
product and what alternatives are available for the same.

Information obtained from Market Search

Consumer 1: Raghav Nagpal

I.What were the triggers of purchase?
Wanted to have something sweet like chocolate so bought Cadbury dairy milk.
II.What were the stages in the purchase processes?
Stages have had a craving to have a bar of chocolate, went to the nearby shop, and got some
dairy milk chocolates.
III.What inputs were sought in each of these stages?
People generally choose to buy Cadbury dairy milk whenever they have a craving to have
chocolate.
IV. Who played what kinds of roles in each stage?
No one particularly than the immediate consumer, who had to decide which type of dairy milk
they want to have out of soo many variants available
V. Approximately how much time was taken in each stage?
The craving to have chocolate was immediate
Going to the shop took 5 minutes
Deciding which chocolate to have too another 2 minutes
Finally bought the Cadbury dairy milk

Consumer 2: Vijay Anand

I.What were the triggers of purchase?
Wanted to bring sweets for my kids
II.What were the stages in the purchase processes?
Stages were children’s cravings to have chocolates, went to a nearby shop and bought Dairy milk
and Gems for my children
III.What inputs were sought in each of these stages?
Kids generally love Gems because of their flavor and colors
IV. Who played what kinds of roles in each stage?
The major role was played by the kids who said the type and size of Dairy Milk they want and
also for gems
V. Approximately how much time was taken in each stage?
The kids convinced me to get them chocolates took 10 minutes
Going to the shop took 7-8 minutes
Deciding which chocolate to have didn't take time as it was pre-decided
Finally bought the chocolates in 2 minutes

Consumer 3: Seema Sengupta

I.What were the triggers of purchase?
Diwali is coming soon and I wanted an apt gift for my office colleague.
II.What were the stages in the purchase processes?
To begin with, I had set a budget of 700 rupees and I wanted to give her something she can share
with her family. Also, I wanted it to be of premium quality and last a long time. Sweets are very
common and my friend loves chocolates. I was confused between Ferrero Rocher, Hershey’s,
and other foreign brands. However, I finally selected Cadbury Silk Praline, which is a high-end
product (16 pieces of praline for 650 rupees), which are not conventionally available in the
market as solo products. Also, the luxury packaging looks rich, posh, and classy.
III.What inputs were sought in each of these stages?
My friend love chocolates and the fact that she has never tried out this type of chocolate (praline)
before.
Also, the pralines are not available in smaller packages and are not sold by any other reputed
brand. The number of chocolates offered was 16 and the price too shows that it is a high-end
product, therefore makes a good gift.
IV. Who played what kinds of roles in each stage?
I was the decision-maker of the purchase, however, my friend’s preferences played a role
V. Approximately how much time was taken in each stage?
Coming to the departmental store took around 15 minutes.
Choosing between different brands of chocolates (based on packaging, quality, brand name) took
another 10 minutes.
Waited in the queue for 5 minutes and finally purchased it.

Consumer 4: Rohit Roy

I.What were the triggers of purchase?
My son has stood second in a chess competition. I want to give him a Cadbury celebrations pack
to celebrate his achievement
II.What were the stages in the purchase processes?
Stages include deciding his favorite chocolate (gems, 5 stars, Cadbury dairy milk) and deciding
to buy them separately. However, I found they were present together/compiled in the celebration
pack.
III.What inputs were sought in each of these stages?
My son's preference was thought of and Cadbury celebrations literally have the celebration word
in them, therefore it makes it a perfect gift to celebrate his achievement
IV. Who played what kinds of roles in each stage?
I and my wife are the decision-makers and once decided, I decided to come to the shop to buy
the product
V. Approximately how much time was taken in each stage?
Going to the shop took 5 minutes
Deciding which chocolate to have too another 5 minutes
Finally bought the Cadbury dairy milk
Inferences
The main driving force behind the purchase of Mondelez Cadbury was the wish to consume
something sweet. Also, due to its vast array of products covering a diverse price segment, it
catered to all the strata of the society and all the occasions as well: be it as an everyday
household purchase to a niche Diwali gift. Competition is stark, however, with its brand being a
common household name in India (especially with their tagline Kuch Meetha Ho Jae by Amitabh
Bachchan), Mondelez Cadbury still reigns supreme.

Limitations of the Methodology

1. The sample size was very small due to constraints
2. The user of the product majorly belong to metropolitan cities
3. Only adults were interviewed
4. Only tier 1 city samples were taken

Recommendations for Cadbury

● Almost 10% of India’s population is diabetic thus prefers to avoid sugar intake, and many
are calorie conscious these days. Thus, Cadbury should come with a sugar-less variant
that could help people who are conscious about their sugars or are diabetic can enjoy the
chocolate.
● Conduct regular primary and secondary research and do not rely on past data much as
consumers keep changing their preferences rigorously
● It should never stop innovating, as one day or the other a product gets obsolete, thus to be
in the race Cadbury should always come up with new flavors
 STP of Cadbury

Segmentation: Cadbury adopts an STP marketing strategy in which it divides the broad market
into subsets of consumers, businesses, countries who have or are perceived to have common
needs, interests, and priorities, and then designs and implements strategies.

The different segmentation strategies used are:

1. Demographic segmentation:
● On the basis of age group- The buyers are segmented on the basis of different age groups.

13-19 years of age - 29%

20-25 years of age - 22%
26-30 years of age - 19%
30-40 years of age - 30%

Kids - Dairy Milk, Bournvita, 5 Star, Fuse, Tang

Millennials - Silk, Celebrations, Ice Creams
Adults - Bournville, Temptation, Celebrations, Ice Creams

● On the basis of income- Cadbury chocolates are generally priced reasonably and
affordable so that the majority of the population can afford them.
Some exceptions like Cadbury Temptations and Bournville are premium chocolates that
can be afforded by higher-income consumers.
● On the basis of gender- For purchasing Cadbury chocolates, gender doesn’t matter as it is
meant for both males and females.

2. Psychographic segmentation: Cadbury positions its product as a substitute for

traditional Indian sweets for which it segments the market on the basis of the psychology
of the customers.
● Personality
 ● Values
● Lifestyle

3. Behavioral segmentation: Cadbury segments its customers into different categories

depending on their behavior like:
● Decision roles - The decision role is played by the final consumer.
● Occasion- Cadbury has changed the scenario of having chocolates from having
them casually to occasionally.
● Gifts- Cadbury chocolates are positioned as gifts for several occasions.
● User status - This segment comprises impulse users
● Attitude- There is a segment of customers who are enthusiastic about the new
products and are early adopters.
● Loyalty- This segment of customers comprises people who are loyal to the brand.

4. Geographic segmentation: Cadbury has geographically divided the market into distinct
segments and offers products according to the needs of the customers. The geographic
segments include
● Region
● Density
● City size
Based on the above segmentation, Cadbury offers its product to different countries with different
strategies all over the world. The most important geographic segmentation is a region.

Targeting:
Cadbury changed their prospective customers from kids to adults and now it includes every
family member. Consumers from every part of society enjoy Cadbury products.
Cadbury Temptations and Bournville are premium chocolates for higher-income consumers.
Dairy Milk Silk is targeted at millennials and those who cannot resist chocolates. Whereas,
Cadbury Bournvita, has been positioned as a must-have for growing children and has been
targeted to the parents of small children between the age of 2-8 years old and also to millennials.
It is an affordable product and can be purchased by any income class.
So by comparing its product offerings to age-wise demographics, its target audience is as follow

Age-wise breakdown of Cadbury India’s offerings

Age Product offerings

Kids Dairy Milk, Bournvita, 5 Star, Fuse, Tang

Millennials Silk, Celebrations

Adults Bournville, Temptation, Celebrations

Positioning:
Over the ages, Cadbury Dairy Milk has evolved its positioning strategy.
In 1994, Cadbury Dairy Milk had used the tagline ‘Real Taste of India’ in order to associate itself
with and appeal to the older age group, since it was already popular among young children. The
campaign was targeted at awakening the kid in all of us.
A decade later, due to India’s love for sweets and desserts (especially after a meal), Cadbury
associated itself with the tagline ‘Khaane Ke baad kuch meetha jo jaaye’
This was followed by the idea of ‘Shubh Arambh’: ie, the Indian culture of commencing an
important task with something sweet/ a dessert, which touched the sentiment of the Indian
crowd.
In 2018, the tagline was changed to ‘Kuch Accha Ho Jaaye, Kuch Meetha ho jaaye’ to associate
itself with the act of kindness, selflessness and the joy of giving and sharing.
 Product mix

An organization’s product mix includes all the products it sells. Product mix width (or breadth)
refers to the number of product lines an organization offers. Product line depth is the number of
product items in a product line. A product line is a group of closely related product items.
Product length is the total number of items in the mix.

Cadbury Product Width

Cadbury has 4 product lines i.e chocolate, candies, beverages, and Biscuits.

Cadbury Product length

Cadbury’s product length is 20.
 Product Line Products

Chocolates ● 5 Star
● Bournville
● Dairy Milk
● Temptations
● Perk
● Fuse
● Dairy milk silk
● Celebrations
● Chocobix

Candies ● Nutties
● Gems
● Chocolairs
● Halls
● Shots

Beverages ● Bournvita
● Tang
● Cocoa

Biscuits ● Bournvita Biscuits

● Chocobakes
● Oreo

Cadbury Product depth

Candies are sold in packs of 5, 10, 20, 50, and 100.

Product Variety, weight, and price

5 Star ● Chocolate bar, 11.1 grams, Rs. 5

● Chocolate bar, 20 grams, Rs. 10
● Chocolate bar, 40 grams, Rs. 20
● Chocolate bar 3d, 45 grams, Rs 25
● Oreo, 42 grams, Rs 35

Gems ● Chocolate, 7.8 grams, Rs 5

● Chocolate carton, 18 grams, Rs 20
● Surprise chocolate, 16 grams, Rs 40
● Surprise balls, 18 grams, Rs 45

Dairy milk ● Chocolate, 6 grams, Rs 5

 ● Chocolate, 11 grams, Rs 10
● Chocolate, 24 grams, Rs 20
● Chocolate, 54 grams, Rs 40
● Milk and nut, 38 grams, Rs 80
● Silk, 60 grams, Rs 70
● Silk, 150 grams, Rs 160
● Silk Milk and nut, 70 grams, Rs 60
● Oreo, 60 grams, Rs 80
● Silk Roast Almond, 58 grams, Rs 80
● Silk Mousse, 50 grams, Rs 80
● Hazelnut, 140 grams, Rs160
● Bubbly, 50 grams, Rs 75

Temptations ● Rich Cocoa, 80 grams, Rs 100

● Almond treat, 72 grams, Rs 110
● Rum and Raisin, 72 grams, Rs 100

Product Life Cycle of Cadbury Dairymilk

Cadbury dairy milk is in the maturity phase of the product life cycle.
Characteristics of this Maturity Phase are:
● There is high competition
● The product is well-established, and promotional expenses are reduced.
● The product has little room for expansion.
● Pricing penetration and decreasing profit margins
● The primary goal is to lengthen the life cycle and maintain market share.
● Converting a customer's product to your own is a significant issue in the maturity stage.

As we look at the facts about Cadbury Dairy Milk it fulfills all the characteristics that are in the
Maturity Phase of a product cycle in the following way:
● Cadbury Dairy Milk has been prospering in the maturity stage since the early 2000s as it
was the market leader in India with 70% of the market share
● The focus shifted to creating brand extensions and promotion offers to boost sales
 ● In 2004, Cadbury, using Mr. Amitabh Bacchan as the brand ambassador, resorted to their
new positioning of “Kuch Meetha Ho Jaaye” bringing in the tradition of celebrating a
joyous occasion in India with sweets (Mithaai) along with the Cadbury Dairy Milk.
● The “Pehli Tareekh Hai” campaigns talked about the importance of celebrating with a
Dairy Milk on pay-days.
● In 2010, “Shubh Aarambh” brought in the old charm of Cadbury Dairy Milk with its
unique strategy of mixing traditions with the new age.
● In 2013, the campaign “Khaane ke baad kuch meetha ho jaaye” was launched aiming to
inculcate the idea of having a Cadbury Dairy Milk as an everyday post dinner dessert.
● Cadbury Dairy Milk introduces new product “Silk” as the brand is doing very well.

Thus, we can observe that there is not much scope of expansion for the product and hence, the
company focuses on retaining its market share pricing penetration strategies.

Product Revival of Cadbury Dairy Milk

When it comes to revitalization of a product, Cadbury can consider the following opportunities:
● Market Penetration (Existing product in the existing market):
In order to increase the sales and growth of existing products in the market, Cadbury must use
benchmarking to assess its performance with respect to its competitors’ (Amul, Nestle, Parle etc)
on various parameters (sales, accessibility, reach, pricing) and revise its product pricing, position
accordingly. Keeping in mind, Cadbury caters to a diverse market segment, across various price
segments, each segment should be targeted individually to increase its penetration. For example :
 ❖ For high-end supreme products like Cadbury Buttons, Silk, Pralines, Cadbury should
open their own retail stores in posh high-end shopping malls which are often frequented
by families (with children). The positioning of the shops should be near gaming parlors,
kids’ toys sections, and a food court to grab the attention of the children. Such shops
should offer high-end products of Cadbury on display: especially the ones not found in
conventional stores and grocery shops. The experience of shopping should be premium as
well like tasters are available before buying. (like in House of Candy).
❖ For mainstream medium range products like Cadbury Dairy Milk, 5 star, perk the
conventional grocery stores should be targeted where families go regularly for their
monthly shopping. Staying true to their tagine, ‘kuch meetha ho jaae’, Cadbury should
promote their small-proportioned/sized products as post-dinner dessert, therefore, they
can be positioned alongside post-dinner mouth refreshments. The Cadbury dairy milk
cocoa powder should be positioned alongside coffee/tea and other ready-to-make drinks,
and also alongside baking equipment/ingredients. Furthermore, apart from placing their
products in the chocolate section, they should place them adjacent to/at the cash counter
(when customers are waiting in the queue for their turn) to tempt them to buy. Apart from
that, during festivals, the positioning of the products should be adjacent to the festival
purchases (diyas for Diwali, Christmas decorations for winter, etc) to attract the attention
of the crowd.
● Product Development (New product in the existing market):
The brand equity of Mondelez contributes to the huge market segment that exists and is catered
to by them. The introduction of a new product should follow the 4Ps: Product, Pricing, Position,
and Promotion. In order to launch a new product in the existing market, we need to identify the
voids that Cadbury does not serve:
❖ White chocolate: Even though Cadbury White is the white chocolate counterpart to the
conventional Cadbury Dairy Milk, the promotion for the same is bleak and is not
available in conventional stores. It is only available online (larger packs at a higher price
range). The market segment for Nestle Milkybar, therefore, has very limited competition
(especially in the price range of Rs.10-20). Cadbury therefore should relaunch a white
chocolate product to target the consumers.
❖ Bite-sized proportions of chocolate for post-dinner dessert, sold in jars/boxes
 ● Diversification (New product in a new market):
❖ For diabetic/ calorie-conscious consumers: More than 65% of individuals above the age
of 40 have diabetes, they are advised not to consume sweets or chocolates. Furthermore,
Sugar-free alternatives to desserts, therefore, act as a boon to diabetic patients, and
sugar-free chocolates, therefore, should be introduced and promoted to cater to this new
market segment: diabetic patients and calorie-conscious individuals who like having
chocolates.
❖ Bakery collection: Chocolate cakes comprise the staple mode of celebration for any and
every occasion. With the rise in the number of bakeries, both professional and
homemade, the ingredients for baking cakes are also on the rise, and the hunt for better,
richer chocolate never ceases. Amul was early to recognize this rising market segment
and tap the same by introducing the Amul compound chocolate (dark, milk, and white)
for the home bakers to incorporate into their cakes. Cadbury should formulate and
introduce their own compound chocolate since there does not exist a cake that tastes of
Cadbury’s unique chocolate flavor due to the lack of compound chocolate by them
(Compound chocolates are the chocolates utilized for baking purposes. They are different
from normal edible chocolates due to the presence of which allows them to be tempered
easily).
❖ Cadbury Ice-cream: Cadbury already collaborates with Kwality Walls (a product of HUL)
to incorporate their own signature flavors into their ice creams (Crackle, Oreo, etc) and
the market reception for the same has been commendable. Cadbury therefore should
introduce their own ice cream line with the signature flavors thereby preserving the rich
taste of Cadbury simultaneously diversifying their brand to tread untapped forte.

References:
https://www.mondelezinternational.com/About-Us/Marketing-Approach
https://iide.co/case-studies/cadbury-marketing-strategy/
https://www.amazon.in/stores/page/2068FE61-9E78-41FC-8A86-4F1010A726AD?ingress=2&vi
sitId=7ba8af1e-d549-4387-b262-e50c0151bfa2&ref_=ast_bln
https://in.mondelezinternational.com/brand-family