coffee vol 1 test | Page 10

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. 10 | P a g e