Team Members :- 1.

Raghav(471)
2. Shreyansh(535)

Course/Section :- B.Com(H)/Section-H

Subject :- Principles of Marketing

Marketing Strategies of Indian Business

Organizations: Price Mix of Cadbury

Introduction:

Marketing strategies encompass product and service innovation, marketing investments, customer experiences, and more.
These strategic elements play a pivotal role in helping organizations and businesses build a strong presence and brand in the
dynamic Indian market. However, among the arsenal of strategies, pricing strategies stand out as a critical determinant of
success. Price mix strategies incorporate various factors that influence pricing decisions, including product costs, consumer
perception of value, profit margins, and more.

In this paper, we delve into the fascinating world of pricing strategies employed by one of India's leading confectionery brands,
Cadbury, a subsidiary of the renowned Mondelez International. Our exploration will unveil the intricacies of how Cadbury
navigates the complexities of the Indian market, making its delicious treats not only beloved but also economically viable. Join
us on this journey as we dissect the sweet success story of Cadbury's pricing strategies, shedding light on the art and science
of pricing in a diverse and competitive market like India.

Price Mix:

Price is the value of a product or service passed on by the buyer to the seller. As a customer is very sensitive about the price of
a product, it is a crucial element of the marketing mix. A slight shift by the organisation in the price of a product can shift the
customers towards the competitor’s product.Price determination is based on various factors as follows:-

1. Pricing Objectives of the firm

2. Extent of Competition in the Market
3. Demand and Utility of a Customer
4. Marketing Methods Used
5. Government and Legal Regulations
6. Product Cost

Price Mix Marketing Strategies of Cadbury in Indian Market:

Cadbury ensures the price of its product is set in a way that allows it to reach a wide audience in India. Cadbury values its
customers and sets the price accordingly. Here are some of Cadbury's pricing strategies:

Value Based pricing : - Cadbury charges the price according to the customer's perceived value of the product. This pricing
method primarily focuses on the customer's mindset and willingness to pay. You can easily notice the price difference between
Cadbury Perk and Cadbury Wispa Gold bar.

Bundle pricing : - This method is used to sell a bundle of different items at a lower cost than if purchased separately. During
festivals and holidays, you may notice that Cadbury Celebrations gift bundles are leading the market.
Skimming pricing : - These prices are set high to maximise benefits from the high-income class for a new product. Oreo cookies,
Cadbury Silk, and Cadbury Bournville are some examples.

Economy pricing : - Cadbury produces variations of its major goods in order to appeal to a broad audience. Under this segment,
we find products such as Dairy Milk, Perk, Five Star, and Eclairs, that are reasonably priced.

Competitive pricing : - Competitive pricing is a marketing strategy whereby businesses set prices based on their competitors'
prices. You can compare the prices of Cadbury 5 Star and Kit Kat.

Cost Plus pricing : - Cost plus pricing tends to ignore the demand for the product and the competition. This policy is based on the
cost structure of Cadbury that is favoured by accountants because they are supposedly more accurate and reliable.

Positioning Pricing : - Cadbury uses this method to position prices that are set which reflects the consumer's view of the
chocolate bean.For instance,Fabelle Chocolates give you premium quality but Cadbury focuses on a wide audience with
affordable prices.

Conclusion

The price mix is closely linked to the perceived value of the product and should be carefully determined by professionals who
take into account various factors that directly or indirectly influence pricing. Cadbury recognizes the significance of the price mix
and utilises it as a strategic tool to establish itself as the leading confectionery brand in India. By effectively managing and
optimising its pricing strategy, Cadbury aims to secure the top position in the Indian confectionery market, ensuring both
customer satisfaction and long-term success.