Independent Variables affecting demand o f Cadbury Dairy Milk

Price: This product is a brand loyal product, so if there is a slight increase in t h e p r i c e , t h e d e m a n d o f t h e p r o d u c t w i l l r e m a i n u n a f f e c t e d . B u t i f t h e r e i s a decrease in the price, the demand of the product may slightly increase.(Source: Galaxy Varieties, Rajkot) Income: If the income of the people increases, the demand of the product also i nc re a s e s a nd i f the i nc o m e o f the p e o p l e d e c re a s e s , t he d e m a nd o f the p ro d u c t decreases because then people will go for lower price chocolate like clair or melody of Rs.1 or Rs. 2. So, there is a positive relationship between income and the product demand.(Source: Survey Result) Population & Age group: This product is meant for the children, adults and also for the old people so the age groups are not much affected the demand of the product so demand remain same and by the increase in the population, the demand of the product also increases. Brand Image: The brand image of the Cadbury plays an important role in the demand of the Cadbury. This product has built such a brand image that it has much attracted the mind of the consumers so they will not like to switch over to the other brand. Consumers taste and preferences: Cadbury produced milk chocolates by using the high quality of cocoa bean and the taste has still remained the same which has touched the heart of the consumers. So, they will not like to go for any other product. Competition: There are many competitors like Cadbury 5 star, Nestle Kit-Kat, Parle chox, foreign chocolates (Chinese Chocolates), lotee etc. in the market so if the price of the competitors increases, the demand of the dairy milk also increases. But if the price of the competitors decrease, the demand of the dairy milks not much affected by it.(Source: Survey Result) Price of Complementary Goods: Cadbury dairy milk is made from the milk, sugar, cocoa bean and cocoa powder. If the price of these complementary goods

increases then there will be no change in the demand. Because Cadbury dairy milk is a brand loyal product so there will not be any effect on the demand of the product.(Source: Group Discussion) Advertisement campaign: Advertisement campaign has played a vital role in attracting the major part of the population towards the Cadbury dairy milk. It was through this campaign like Real Test of Life & Kuch Meetha Ho Jaye that C a d b u r y s h i f t e d i t s f o c u s f r o m k i d s t o t h e all age people and later through Kha ne wa l o n Ko Kha ne K a B a ha na C ha h i ye & P a p p u P a s s H o G a ya , Cadbury has associated dairy milk to celebrations and every moment of achievement a n d s u c c e s s . S o , i t i s t h r o u g h advertisement that Cadbury has gained social acceptance which has played a major role in increasing his demand.(Source: Website of Cadbury) C e l e br a t i o n s & O c c a s i o n s : During the festivals and occasions, the consumption of Cadbury increases because its a product for enjoying the taste of each and every moment with harmony.

Short run and long run impact in the elasticity of the demand I n t h e S h o r t r u n p e r i o d o f t i m e :t h e d e m a n d f o r t h e d a i r y m i l k i s l e s s elastic because if the price of the dairy milk chocolate suddenly increases Rs.5 t o R s .7 , th a n the d e m a nd o f the p ro d u c t wi l l a l s o d e c re a se b u t i n t he l o ng ru n t he demand may not be much affected. There are some criteria that also affects and they are like: Our product should be in the monopolistic competitive market product. No change in the taste and quality.

In the Long run period of time: the demand for the dairy milk is more elastic because if the price of the dairy milk in the 2005 was Rs.5 and in the 2010 it will beRs.10 and, the quantity and the quality will remain the same and the other products a l s o l i k e K i t - Ka t a nd M u n c h , i f the y d o n t c ha nge a ny o f the t h i n gs l i k e p r i c e , quality and quantity than it will greatly affect the demand of the dairy milk and it will started decreasing day by day. Assumptions: There are possibilities of change in technology & c h a n c e s o f P r o d u c t innovation in the long run. There are possibilities of increasing good quality chocolate manufacturing units. Band Wagon Effect: The band wagon effect is totally depended on the mentality of the human beings. The advertisement campaign with Amitabh Bachchan has made an increase in the demand of the dairy milk. It indicates that if the one person is going to buy dairy milk chocolate than the other also want to buy the same chocolate.

Snob Effect: This is a kind of totally contra effect of the band wagon effect. If a person bough tone particular product then the other person wants superior product than the person ha d a l re a d y b o u g ht . B u t i n o u r p ro d u c t the d e m a nd d o e s no t a f fe c t b y t he s no b effect.