A STUDY ON MARKETTING MIX

A Mini Project Report submitted to

SRM Institute of Science And Technology
In partial fulfilment of the requirements for the award of the degree of
MASTER OF BUSINESS ADMINISTRARTION

Submitted by
ANITHA.B
(REG NO. RA2252001020036)
Under the guidance of

Dr.A.Jerena Rachael, MBA,Ph.D

Assistant Professor

College of Management
SRM Institute of Science and Technology
Chennai- 89

October 2022

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A STUDY ON MARKETTING MIX

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 LIST OF CONTENTS

CHAPTER NO. CONTENTS PAGE NO.

I Introduction 3-5

II Review of literature 6-7

III Theoretical background of the study 8-12

IV Marketing mix with respect to 13-17

CADBURY

V Conclusion 18-19

Bibliography 20

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 CHAPTER I
INTRODUCTION

Marketing mix is one of the most popular theoretical frameworks in marketing that has been
used by companies in order to make marketing and other decisions in a more efficient manner.

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Companies have concentrated on various elements of marketing mix as a source of competitive
edge according to the strategy adopted by senior level management in order to achieve long-
term aims and objectives. Marketing mix is a planned mix of the controllable elements of a
product's marketing plan commonly termed as 4Ps: product, price, place, and promotion. These
four elements are adjusted until the right combination is found that serves the needs of the
product's customers, while generating optimum income.
A marketing expert named E. Jerome McCarthy created the Marketing 4Ps in the1960s.
This classification has been used throughout the world.

Marketing Mix Definition:

The marketing mix definition is simple. It is about putting the right product or a combination
thereof in the place, at the right time, and at the right price. The difficult part is doing this well,
as you need to know every aspect of your business plan. As we noted before, the marketing
mix is predominately associated with the 4P’s of marketing, the 7P’s of service marketing, and
the 4 Cs theories developed in the 1990s.

Benefits of Marketing Mix

Low and Tan (2005) point to two following benefits of marketing mix:
Firstly, marketing mix reveals the fact that competitive edge in the marketplace is achieved
through focusing in one source of competitive edge at the expense of the other.
Secondly, marketing mix assists in resource allocation. Specifically, by dividing the sources of
competitive edge in various components marketing mix allows marketing managers and
strategic level management of the company to make decisions related to resource allocation in
a more efficient manner.
Factors Affecting Marketing Mix

a) Economic forces- The impact of economic conditions to the ability and willingness
of customers to buy.
b) Sociocultural forces- These forces to effect society and culture in a way that attitudes,
beliefs, norms, customs, and lifestyles of people are going to change.
c) Political forces- A type of influence that is generated through the actions of elected
and appointed officials.
d) Competitive forces- The activities of competitors who are formulating and
undertaking their own marketing plans.
e) Legal and regulatory forces- Laws and regulations introduced in order to protect
consumers and competition, as well as government regulations affecting marketing.
f) Technological forces- Technological changes affecting many aspects of
business. Marketing mix components might be improved through the application of
the latest technological achievement.

Criticism of Marketing Mix

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Firstly, the role and effects of consumer behaviour are neglected in marketing mix concepts.
Nowadays consumer behaviours have very dynamic character in a way that consumer
expectations are ever increasing.
Secondly, customers are perceived as being passive within marketing mix framework, and no
provision is given with interactions and relationships with customers. Consumer relationship
management has evolved as a separate aspect of business due to its significant importance.
Thirdly, there is a lack of theoretical back-up for the marketing mix framework, and the whole
concept is approached very simplistic. In other words, although marketing mix has been
accepted as an individual concept, the theories associated with the concept are very general,
and there are no detailed theoretical frameworks available regarding its practical application
by business entities.
Fourthly, marketing activities are not personalised according to marketing mix concept. This
specific shortcoming associated with the concept of marketing mix has been partially discussed
above in a way that they are considered to be rigid and lack flexibility taking into account
individual differences among the markets in various levels.
Need for the study
This study was mainly made to understand the concept of marketing mix and concepts with
respect to a company.
Objectives of the study
• To study the pros and cons of marketing mix.
• To analyse the criticisms made on marketing mix.
• To study on the real time example of the marketing mix in the market with respect to
a particular product.
Limitations Of the Study
• The study is completely theoretical.
• The study does not contain any first-hand data for analysis.
• Theoretical data is not derived from any sample review or analysis.

Chapterization
Chapter I – Introduction.
Chapter II- Review of literature of various research papers.
Chapter III- Theoretical background of the study.
Chapter IV-Marketing mix with respect to CADBURY.
Chapter V- Conclusion
Annexure
• Bibliography

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 CHAPTER II
LITERATURE REVIEW

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1. Palmer (2004) defines MM as a conceptual framework that clarifies the main decisions
managers’ efforts in configuring their offerings to suit consumers’ needs for
developing long-term strategies or short-term tactical programs.

2. Kent (1986) refers to the 4Ps of the MM as the holy quadruple of the marketing
faith written in tablets of stone. MM has been extremely influential in
informing the development of both marketing theory and practice.

3. Grönroos (1994) clarified the main reasons of the MM as a powerful concept to make
marketing seem easy to handle, to allow the separation of marketing from other
activities of the organization, to delegate the marketing tasks to specialists, and to
change an organization’s competitive position by activating the components
of the MM.

4. Daniel (2018) states that Strategy refers to a set of managerial decisions and actions
that aims to differentiate the company from competitors and sustain its competitive
advantage. A company’s strategy must be appropriate for its mission, resources and
environmental circumstances.

5. Gituma (2017) states that Marketing strategy is a strategy that organizations use to
provide their target customer with quality products, at affordable price, offer effective
promotional strategy and interact with their distribution outlets hence creating demand
for their products and increasing performance.

6. Hashim & Hamzah (2014) concluded that traditionally, the pillars of marketing were
known as 4Ps which stands for Product, Price, Place and Promotion. However, as the
customers are becoming more sophisticated, three further ‘Ps’ were added mainly for
service industries namely People, Process and Physical Environment.

7. Kotler & Armstrong (2012) stated that Marketing strategies; product, price, place and
promotion are strategies that organizations use to react to market and internal forces
that will enable an organization achieve their objective.

8. Muchiri (2016) concludes that the marketing mix strategies includes all the responses
of a firm in ensuring that the target market positively influence their product demand.
Firms who aspire to meet the customer needs often have to focus on understanding the
customers and developing appropriate strategies to improve their performance.

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 CHAPTER III
THEORETICAL BACKGROUND OF
THE STUDY

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The marketing 4Ps are also the foundation of the idea of marketing mix.

1) Marketing Mix – Product

A product is an item that is built or produced to satisfy the needs of a certain group of people.
The product can be intangible or tangible as it can be in the form of services or goods. One
must ensure to have the right type of product that is in demand for your market. So, during the
product development phase, the marketer must do extensive research on the life cycle of the
product that they are creating.
A product has a certain life cycle that includes the growth phase, the maturity phase, and the
sales decline phase. It is important for marketers to reinvent their products to stimulate more
demand once it reaches the sales decline phase. Marketers must also create the right product
mix. It may be wise to expand your current product mix by diversifying and increasing the
depth of your product line. All in all, marketers must ask themselves the question “what can I
do to offer a better product to this group of people than my competitors.”

2) Marketing Mix – Price

The price of the product is basically the amount that a customer pays for to enjoy it. Price is a
very important component of the marketing mix definition.
It is also a very important component of a marketing plan as it determines your firm’s profit
and survival. Adjusting the price of the product has a big impact on the entire marketing
strategy as well as greatly affecting the sales and demand of the product. This is inherently a
touchy area though. If a company is new to the market and has not made a name for themselves
yet, it is unlikely that your target market will be willing to pay a high price. Although they may
be willing in the future to hand over large sums of money, it is inevitably harder to get them to
do so during the birth of a business.
Pricing always helps shape the perception of your product in consumers eyes. Always
remember that a low price usually means an inferior good in the consumers eyes as they
compare your good to a competitor. Consequently, prices too high will make the costs outweigh
the benefits in customers eyes, and they will therefore value their money over your
product. Be sure to examine competitors pricing and price accordingly. When setting
the product price, marketers should consider the perceived value that the product offers. There
are three major pricing strategies, and these are:
• Market penetration pricing
• Market skimming pricing
• Neutral pricing

3) Marketing Mix – Place

Placement or distribution is a very important part of the product mix definition. You have to
position and distribute the product in a place that is accessible to potential buyers. This comes
with a deep understanding of your target market. Understand them inside out and you will
discover the most efficient positioning and distribution channels that directly speak with your
market. There are many distribution strategies, including:

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a) Intensive distribution
b) Exclusive distribution
c) Selective distribution
d) Franchising

4) Marketing Mix – Promotion

Promotion is a very important component of marketing as it can boost brand recognition and
sales. Promotion is comprised of various elements like:
a) Sales Organization
b) Public Relations
c) Advertising
d) Sales Promotion
Advertising typically covers communication methods that are paid for like television
advertisements, radio commercials, print media, and internet advertisements. In contemporary
times, there seems to be a shift in focus offline to the online world. Public relations, on the
other hand, are communications that are typically not paid for. This includes press releases,
exhibitions, sponsorship deals, seminars, conferences, and events. Word of mouth is also a type
of product promotion.
Word of mouth is an informal communication about the benefits of the product by satisfied
customers and ordinary individuals. The sales staff plays a very important role in public
relations and word of mouth. It is important to not take this literally. Word of mouth can also
circulate on the internet. Harnessed effectively and it has the potential to be one of the most
valuable assets you have in boosting your profits online. An extremely good example of this is
online social media and managing a firm’s online social media presence.

Marketing Mix 7P’s

The 7Ps model is a marketing model that modifies the 4Ps model. The 7Ps is generally used in
the service industries. Here is the expansion from the 4Ps to the 7Ps marketing model:

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 5) Marketing Mix – People
Of both target market and people directly related to the business. Thorough research is
important to discover whether there are enough people in your target market that is in
demand for certain types of products and services. The company’s employees are important in
marketing because they are the ones who deliver the service. It is important to hire and train
the right people to deliver superior service to the clients, whether they run a support
desk, customer service, copywriters, programmers…etc. When a business finds people who
genuinely believe in the products or services that the particular business creates, it’s is
highly likely that the employees will perform the best they can. Additionally, they’ll be more
open to honest feedback about the business and input their own thoughts and passions which
can scale and grow the business.
This is a secret, “internal” competitive advantage a business can have over other competitors
which can inherently affect a business’s position in the marketplace.

6) Marketing Mix – Process

The systems and processes of the organization affect the execution of the service. So,
you have to make sure that you have a well-tailored process in place to minimize costs. It could
be your entire sales channel, a pay system, distribution system and other systematic
procedures and steps to ensure a working business that is running effectively. Tweaking and
enhancements can come later to “tighten up” a business to minimize costs and
maximise profits.

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 7) Marketing Mix – Physical Evidence
In the service industries, there should be physical evidence that the service was
delivered. Additionally, physical evidence pertains also to how a business and its
products are perceived in the market place.
It is the physical evidence of a business’ presence and establishment. A concept of
this is branding. For example, when you think of “fast food”, you think of McDonalds.
When you think of sports, the names Nike and Adidas come to mind. You immediately know
exactly what their presence is in the marketplace, as they are generally market leaders and have
established physical evidence as well as psychological evidence in their marketing. They have
manipulated their consumer perception so well to the point where their brands appear first
inline when an individual is asked to broadly “name a brand” in their niche or industry.

Marketing Mix 4C’s

The 4Cs marketing model was developed by Robert F. Lauterborn in 1990. It is a

modification of the 4Ps model. It is not a basic part of the marketing mix definition, but rather
an extension. Here are the components of this marketing model:
• Cost – According to Lauterborn, price is not the only cost incurred when purchasing
a product. Cost of conscience or opportunity cost is also part of the cost of product
ownership.
• Consumer Wants and Needs – A company should only sell a product that addresses
consumer demand. So, marketers and business researchers should carefully study the
consumer wants and needs.
• Communication– According to Lauterborn, “promotion” is manipulative while
communication is “cooperative”. Marketers should aim to create an open dialogue with
potential clients based on their needs and wants.
• Convenience– The product should be readily available to the consumers.
Marketers should strategically place the products in several visible distribution points.
Whether you are using the 4Ps, the 7Ps, or the 4Cs, your marketing mix plan plays a
vital role. It is important to devise a plan that balances profit, client satisfaction,
brand recognition, and product availability. It is also extremely important to
consider the overall “how” aspect that will ultimately determine your success or
failure.
By understanding the basic concept of the marketing mix and its extensions, you will be
sure to achieve financial success whether it is your own business or whether you are
assisting in your workplace’s business success.
The ultimate goal of business is to make profits and this is a certain, proven way to achieve
this goal.
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 CHAPTER IV
MARKETING MIX WITH RESPECT TO
CADBURY

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Cadbury

Cadbury is a global leading company, standing as the second-largest confectionery brand in

the world. Originally a British Multinational confectionery, in 2010, Cadbury became a
subsidiary of Mondelez International.
It was started in 1824 by John Cadbury, in a grocery store at Birmingham, England. He began
by selling chocolate and cocoa as a beverage, but witnessing its profitable response, he and his
brother purchased a factory and began their successful adventure.
Cadbury’s headquarters can be found in London, England. They have production operations in
over 60 countries and sells its products in over 200.
Cadbury India first opened its doors in 1948 and currently hold a market share of over 70%,
making it the most popular Cadbury brand in the world.
Cadbury Dairy Milk, one of Cadbury India’s most popular products, is a benchmark for other
chocolates in India and is considered as the “gold standard.”

1. PRODUCT MIX OF CADBURY

Cadbury offers a wide range of products and has a strong depth and width of the product mix.
There are different products that Cadbury offers in different countries and the decision to sell
which product in what country is based on the Demographic factors, Production costs, Demand
fluctuation, and competition presence.

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On a broader level, the product mix of Cadbury consists of Chocolates, Candies/Gums,
Biscuits, and Beverages in the product width category. And under the product width category,
we have Dairy Milk, 5 Star, Gems, Temptation, Oreo, Eclairs, Bournvita etc which are the
product lengths.

Cadbury enjoys has a good market share in their respective industry Eg: Bournvita is the
market leader in the milk additives and Dairy Milk holds a market share of 60-65% in the
chocolate industry.

2. PRICING STRATEGY OF CADBURY

Great quality comes with a price. There are different pricing strategies that Cadbury uses for
its products.

Skimming Pricing: With skimming pricing, these prices are set very high to take advantage
of some people’s desire for a new product or design at any price. Products like Oreo biscuits,
Cadbury Silk, Cadbury Bournville are some products which are kept at a slightly higher level
than the competitors.
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.

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 3. PLACE:

Cadbury products of the available all over the world. Due to its robust distribution channel,
Cadbury has been able to make a huge impact in the global market. The company has made
sure that their products are available all over the world and the carter to a huge customer base.

The products are available both in the urban and rural areas. We find that this has helped in a
way for the company. The places of distribution have made the products available to a lot of
customers and the, in turn, has generated a profit for the company both in terms of customer
base and the revenue. Cadbury is a worldwide name and has made its name in almost more
than 200 countries. This shows the distribution channel and the places where it has made its
product reach. This gives an overview of the place and distribution strategy in the marketing
mix of Cadbury.

4. PROMOTION MIX OF CADBURY

Promotion plays an important role in the marketing mix of Cadbury, the company uses a proper
mix of ATL, BTL and Digital channels for creating awareness and promoting their products.

There are different advertising campaigns that Cadbury uses for promoting their products. The
brand has an eye for detail and majorly uses Emotional advertising campaigns to connect with
its user base and this has been the secret sauce for the Brand’s success.

Studies show that people rely on emotions, rather than information, to make brand decisions
and that emotional responses to ads are more influential on a person’s intent to buy than the
content of an ad.
The brand also relies heavily on BTL promotion and uses Vernacular communication for
promoting themselves in different states and regions. The aim to use vernacular language and
regional dialects is to do beat the small regional competitiors and also to connect and engage
with the audience in a much better way.

Campaigns like “Kuch Mettha Ho Jaye” and ” You Earn It” worked very well for the brand.

1. Stay Home Stay Safe: At Home with Oreo – A Cadbury Oreo Campaign
Cadbury’s biscuit brand Oreo launched a very smart campaign that goes in sync with the
current situation we are in: Staying at home.
Oreo launched the campaign called #AtHomewithOreo targeting children. The campaign
encourages playfulness among children amid these uncertain times. The slogan of the campaign
is ‘Make Way For Play’.

2. A Lovely Campaign: How Far Will You Go For Love? – A Dairy Milk
Campaign
Cadbury Dairy Milk Silk is primarily targeted at millennials. However, Dairy Milk Silk has
been a hit among teenagers, and launching this campaign for Valentine’s Day was a brilliant
move!
The message in this campaign was as simple as this, “This Valentine’s Day, how far will you
go for love?” with the hashtag #PopYourHeartOut. The brand also roped in a very famous actor
and youth icon, Kartik Aryan, to do promotions for the campaign.

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3. A Heart-Touching Campaign: Kuch Meetha Ho Jaaye – A Dairy Milk
Campaign
In India, people have a lot of faith in customs and traditions, especially when they’re about to
start something new on an auspicious occasion.
Cadbury Dairy Milk launched this campaign called “Kuch Meetha Ho Jaaye” in which Cadbury
India positioned Dairy Milk as a sweet that could be consumed during the happy moments in
our happening lives.

5. PEOPLE-
People plays a vital role in brand establishment as they are directly involved in the recognition
of it in the market and this matter should be realized by the customers that it’s in their hands,
Cadbury target young people and children mainly as compared to elders. The company has
satisfied the demands of the customers worldwide. The company recruits skilled
employees to ensure better work culture within the organisation, and also rewards their
employees as per their work achievements. Moreover, the company trains their
employees to enhance their workability.

6. PROCESS-
Cadbury keeps a record of all processes it does like methods and process are provided and also
keep a record of provided services are helpful for the customers or not, and whether customers
are informed or not. The company delivers its products to the customers in a professional
packaging and with the best quality to attract customers. The company has very fast pace
operations, follows all the policies and has fast manufacturing process to meet the demands
of the customers, distributers and stockholders.

7. PHYSICAL EVIDENCE-
Cadbury keep a record of all experiences which it is getting by physical questioning, buying
behaviour of the customers and providing them guidelines about the products they are
purchasing by giving them brochures, and pamphlets. The business entity has all the
equipment available to initiate their manufacturing operations. The company provides
dress to their employees and have their own business card, logo, facility design.

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CHAPTER V
CONCLUSION

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Conclusion

Marketing strategies includes the set of strategies that company used to introduce their product to
the potential customer. The element of marketing strategies where includes in 4ps of mix marketing
which are product, price, place and promotion. Besides this 4ps, there are also another 3ps which are
people, process and physical evidence but for this article only focus on the 4 mains ps. This element
of mix marketing has a relationship with business performance which means that this strategy will
affect the business whether in positive or negative ways. Based on discussion above, it shows that the
effective strategy of product, price, place and promotion will help to improve business performance
and help to increase profitability for the business not only in short term but also in the long term. Most
of the successful company nowadays such as McDonalds, Apple and Adidas have built a strong mix
marketing strategy for their product that is why the can sustained in the business for many years and
being a leader in their industry. Therefore, it is important for the local and small company to have a
better understanding about the mix marketing to make sure their business can sustain in the future
and can expand their company in other country.

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 ANNEXURE
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