CADBURY DAIRY MILK: MARKETING MIX
PRICING:
Cadbury Dairy milk is targeted towards people between the age group of 545 and hence is made available at a very affordable price of Rs. 5, Rs.10 and
Rs. 22. The exception to this pricing is its premium range “SILK” which is
priced higher.
One of the major problems faced by Cadbury in pricing is the effect of
inflation of the cost of raw materials. They have tackled this decision by
reducing the weight of the products and keep the price of the product
unchanged.
Upon interaction with one supplier it was found that a recent increase from
Rs. 20 to Rs. 22 was negatively received in the market and volume of sales
went down.
Profit margin for the dealers is 5% and the profit margin for retailers is at
10%. Wholesalers compensate for this low profit margin by attaining a large
sales turnover.
PROFIT MARGINS
Profit margin for Wholesale
5%
Profit margin for Retailer
10% (12% for above Rs. 10)
The profit percentage in Cadbury for retailers was 12% for all products
above Rs. 10.
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