Product Life Cycle of Cadbury

PRODUCT LIFE CYCLE OF CADBURY DIARY MILK
Introduction Stage:
In this stage, the product is introduced in the market. This stage of the cycle could be the most
expensive. For a company launching a new product, the size of the market, competition from the
existing players in the market, engaging marketing channels, everything matters. In this stage
three things such as pricing of product, distribution and promotion needs to be tackled
effectively. Activities such as marketing research, consumer testing, and promotional activities
require huge investment, especially if the product is introduced in a competitive sector. In the
early stages of brand launch, people ask ‘what is it’? This question is asked by customers, also
by potential investors, partners, and vendors. How effectively this question is answered, dictates
whether a brand will grow or not.
 1824 - Cadbury Dairy Milk was invented with the mix of milk and chocolate tray by John
Cadbury.
 1904 - A new recipe is perfected by George Cadbury for milk chocolate.
 1905 - Cadbury launches Dairy Milk into the market.
Cadbury Dairy Milk in India redefined itself as the perfect expression of spontaneous,
shared good feelings, providing the real taste of life experience through its brand strategy
 The brand grows by over 50% in sales volume.
 1928 - Heavy investment begins in Cadbury Dairy Milk ads stressing its high milk
content.
Growth Stage:
Marketing campaigns during the Introduction stage tend to benefit from all the buzz and hype
that surrounds the launch of a new product. But as the product starts getting sold at a good pace,
and it starts establishing, a more refined marketing approach is needed in order to make the most
of the growth potential of this phase. The growth stage can be seen as when a product’s sales
begin to increase rapidly and when the demand is high. The marketer also experiences a
noticeable increase in competition as other firms develop similar products to compete for
available revenue and market share. The Internet is a current example of a product that can be
found in the growth phase of its life cycle. The benefits the Internet has provided have resulted in
rapid reception in consumer and business markets.
 1928 - Fruit and Nut is introduced as a variation of Dairy Milk.
 1933 - Whole Nut is added to the Dairy Milk Family.
Cadbury Dairy Milk in sold in India.

 1998 - Cadbury Dairy Milk popularized its consumption in a social context, especially in
more traditional settings such as Weddings which are prevalent in India with the
campaign “Khaanein waallon ko khaanein ka bahana chahiye”
 Cadbury Dairy Milk aimed to substantially increase penetration levels through its award
winning campaign “Kuchh khaas hai”
 The brand penetrated into smaller towns and sales volume grew by 40%
Maturity Stage:
During this stage, the product is established and the most important activity of the marketer in
this stage is to maintain the market share they have built up. This is probably the most
competitive time for most products. And, businesses need to invest wisely in any marketing
activity they undertake. The marketer needs to look at strategies such as product modification or
improvement to the production process which might give them a competitive advantage. The
market maturity stage occurs when the market has become saturated; sales growth rate tends to
decrease. Efforts are focused on differentiation of the product. Pricing may be lower because of
increased competition. Margins begin to shrink as marginal competitors are forced out of the
market. Distribution is maximized and promotions come into play as a way to encourage
preference over competing products. Market share becomes the main focus in the maturity stage.
If the product maintains profits, regardless of the stage of the lifecycle, it should be said that the
product is outstanding.
 1913 - Dairy Milk becomes Cadbury’s bestselling line.
 Currently, Cadbury Dairy Milk is prospering in this stage.
 Has India’s 70% of Chocolate consumption Market Share and is the market leader.
 2004 - Using Amitabh Bachhan CDM launched 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.
 2010 — “Shubh Aaramb” brought in the old charm of Cadbury Dairy Milk with its
unique strategy of mixing traditions with the new age.
 Cadbury Dairy Milk introduces new product “Silk” as the brand is doing very well.
 2013 - Introduces the campaign “Khaane ke baad kuch meetha ho jaaye” aiming to
inculcate the idea of having a Cadbury Dairy Milk as an everyday post dinner dessert.
Decline Stage:
Eventually, the market for a product at some point starts weakening, and this is what’s known as
the decline stage. The shrinkage could be due to the market saturation, new innovative products
introduced in market, or because the consumers are switching to a different type of product.
While the decline is a fact and inevitable, it may still be possible for companies to make some
profit by switching to less-expensive production methods and discounting prices.
 Consumers have started showing interest in other categories of chocolate such as dark
chocolate (Bournville).
 A major challenge is the growing popularity of fresh Indian sweets or Mithaai.
CADBURY’S PRODUCT LIFE CYCLE CUVRE
MARKETING STRATEGY OF CADBURY:

Competitive advantage in the Marketing strategy of Cadbury:
Distribution and brand equity are two major competitive advantage for Cadbury. Cadbury is
making its product available from pops & moms store to high end departmental stores, which is
only possible due to its extensive distribution channel creating competitive edge over others.
The main competitive advantage of Cadbury comes from its ability to market its products
through altering the theme & functionality of the products on continuous basis. Also smartly
designing its promotion & communications to handle the controversies & educate customers
more about the confectionaries had helped the company to spread positive word of
mouth resulting from negative marketing.
BCG Matrix in the Marketing strategy of Cadbury
 Chocolates are stars as it has large assortments in chocolates worldwide & it is the

world’s second confectionary company having high market share in most of the markets.
 Biscuits & cakes are question mark reason being that it doesn’t have extensive offerings
in this product category for the customers to choose from but the overall demand of
biscuits is still positive.
 Beverages business is question mark, although Cadbury’s Bournvita is very popular but
their cold chocolates have very low acceptance in the market & also due to the presence
of players like GlaxoSmithKline, Heinz etc. Cadbury is not able to grab the large chunk
of the market.
 Ice-cream & deserts business is question mark that’s because of the fact that other
players in the same segment have value for money products & that too at low price. Like
in India Amul being the leader in this category is eating the business of the players in the
market.
Distribution strategy in the Marketing strategy of Cadbury:
Although Cadbury is not so extensively in FMCG, they are able to make the product available in
the extreme regions – Urban as well as rural areas but they focus more on urban markets due to
the demand economics. Products are being made available through the C&F to wholesaler to
retailer & then to the end customer, which is actually a 3-tier distribution approach.
Brand equity in the Marketing strategy of Cadbury
Cadbury addresses the needs of each and every consumer, from childhood to maturity,
from impulse purchase to family treats. Cadbury designs products to coincide with Christmas,
Easter, Valentine’s, Mother’s and Father’s Day and other calendar landmarks. Cadbury use
marketing strategies such as the ‘Choose Cadbury’ strategy to encourage a link between
chocolate and these events ensuring there is a Cadbury chocolate product suitable and available
for every occasion. The marketing communications over the years as well the lovely taste of
Cadbury and its consistence have gien a fantastic brand equity to the brand.
Competitive analysis in the Marketing strategy of Cadbury:
The confectionaries industry is highly competitive & is overcrowded by local & national players.
While Cadbury’s parent company Mondelez International is the world leader in Bars &
chocolates for middle age income group, other players like Nestle, Ferrero Rocher, Amul , Kraft
foods etc. have product categories & customer groups in which they are specialized in. Due to
high R& D and change in organoleptic of milk, changing lifestyle of Asian markets, eating habits
etc. this industry will observe high growth momentum in the coming years.
Market analysis in the Marketing strategy of Cadbury:
Confectionaries business is ever growing & due to the changing consumption of milk and dairy
products, there is more & more opportunity that is lying ahead in this industry. The market is
ruled by few companies such as Cadbury, nestle, Mars, Heinz, Perfetti van etc. Cadbury has a
broad product portfolio in the chocolate segment like dairy milk, Bournville, Cadbury crunch,
Eclairs etc.
Customer analysis in the Marketing strategy of Cadbury:
Customers of Cadbury are from all segments & people from all age group consume chocolates,
biscuits & beverages but it is the growing middle income group as well as the youngsters who
form the major consumer segment.

Product Life Cycle of Cadbury

Uploaded by

Copyright:

Available Formats

Product Life Cycle of Cadbury

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Product Life Cycle of Cadbury

Uploaded by

Copyright:

Available Formats

PRODUCT LIFE CYCLE OF CADBURY DIARY MILK

Cadbury Dairy Milk in sold in India.

CADBURY’S PRODUCT LIFE CYCLE CUVRE

MARKETING STRATEGY OF CADBURY:

 Chocolates are stars as it has large assortments in chocolates worldwide & it is the

You might also like