CADBURY – Pricing Methodologies

P R E S E N T E D B Y: - S H A H E N A S A L E E M S H A I K H
F. Y. M . M . S . : - B
ROLL NO. :- 58
 Introduction :
 Cadbury is a British multinational confectionery company owned by Mondelez International
 It is the second largest confectionery brand in the world after Mars
 Cadbury is headquartered in Uxbridge, London, and operates in more than fifty countries worldwide
 Its best known product include Dairy Milk Chocolate
 In 1824, John Cadbury began to sell tea, coffee and drinking chocolate from his premises in Birmingham
In India Cadbury began its operations in 1948 by importing chocolates
Product :
The Co. Manufacture & Sales
1. Chocolates
2. Sugar Confectionary
3. Malted foods
4. Cocoa Powder
5. Drinking Chocolate & Small Extract
Pricing Methodologies for Chocolates:
1. Skimming Price
2. Cost Plus Pricing
3. Positioning Pricing
4. Demand Based Pricing
5. Economy Pricing
6. Bundle Pricing
Skimming Pricing:
With skimming pricing, these prices are set very high to take advantage of some people desire for
a new product or design at any price
Skimming is most effective if the demand is inelastic
Products like Oreo biscuits, Cadbury Silk, Cadbury Bournville are some products which are kept
at a slightly higher level than the competitors

Cost Plus Pricing:

Pricing methods which are based on the cost structure of Cadbury that are favored by accountants
because they are supposedly more accurate and reliable
Cadbury needs to maximize its profits and hence this method works successfully as all costs need
to be accounted for
Positioning Pricing:
Cadbury uses this method to position prices that are set which reflects the consumers view of the chocolate
bean

Demand Based Pricing:

Cadbury set their prices based on what they think the consumer is prepared to pay
By selling at the customer’s price, they have a good reputation and an output of more customers

Economy Pricing:
Cadbury comes out with different variants of their main products to reach out to a large audience base
Cadbury dairy milk is offered in different sizes and is priced accordingly just so as to cater to different
customer segments
Even products like Perk , Five Star, and Eclairs are priced economically
Bundle Pricing :
With bundle pricing, Cadbury sells multiple products at a lower rate that consumers would get if they
purchased each item individually
During festive times, Cadbury offers different chocolates/products bundled together at a discounted price
 Conclusion :
• Cadbury has the largest share in the market
• People all over India use Cadbury product as gifts
• It is found that Cadbury is the most popular and demanded chocolate company in India
• It produces best tasted chocolates among all the chocolate companies
• So, the maximum share of population prefer Cadbury