1. Cadbury Trebor Bassett, makers of iconic Crème Egg that makes its appearance

Question

1. Cadbury Trebor Bassett, makers of iconic Crème Egg that makes its appearance every spring, increased trade discounting when it needed to clear out high level of stock. The Company had built up inventory of Diary Milk bars in case the company experienced any gliches while implementing a new IT system. The trade discounts and price promotions helped effectively clear that inventory of candy during he spring season. Analyse the various pricing methods used in the case with link to Cadbury Hints to answer: 1. Markup pricing (The practice of adding a constant percentage to the cost price of an item to arrive at its selling price) Target return pricing (A pricing model that prices a business based on what an investor would want to make from any capital invested in the company) 2. 3. Perceived value pricing... Value pricing (Value-based pricing is about coming up with a price that your customers are willing to pay.) Going rate pricing (The market rate (or "going rate") for goods or services is the usual price charged for them in a free market. If demand goes up, manufacturers and laborers will tend to respond by increasing the price they require, thus setting a higher market rate.) 4. Sealed bid pricing (A sealed-bid auction is a type of auction process in which all bidders simultaneously submit sealed bids to the auctioneer, so that no bidder knows how much the other auction participants have bid. The highest bidder is usually declared the winner of the bidding process) 5.

Explanation / Answer

1. Cadbury charged a dizzying markup on their 'oreo bauble' priced 344% higher than regular chocalate, while chocalate lovers will be paying upto 190% more for the ever popular kinder surprise maxi egg compared to a 200g kinder share pack

2.cadbury target audience , cadbury pricing strategy emphasizes strategic issues are connecting cadbury with customers, performingsales promotion, advertaising, impacting cadbury's pricing strategy.

3. Cadbury silk adopts a percieved value pricing, it is chunkier, with a soft center and so is priced heavily as compared to other chocalates. It targets only the high end consumer.

4. It is inevitable that some chocolate prices will go up to compensate for very significant increase in costs. The price of a bar of a chocalate will rise significantly.

5.the world largest food company would face big anti trust hurdles if it launched its own bid for cadbury, but might scoop up tasty morsels prised from the british confectioner through a tie up with potential bidder Hershey co, said sources close to the situation.

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