Evaluation of Cadbury's Diversification Strategy: Targeting the Right Audience with STP Model

The report evaluates Cadbury's diversification strategy by analyzing the external environment and targeting the right audience using the STP model. The report covers the existing brand and brand values, description of the target market, analysis of the new market, explanation of the new product, and competition. The report concludes that marketing is a major component in the business and the launch of new products in the market requires strategies.

Principles of Marketing

Executive Summary
The aim of the report is to evaluate the area in which the organisation is diversifying their
product line with the help of analysis of external environment along with that targeting the
audience by using the STP model. The competition is also analysed as there are already market
players in the industry who are leading the market. The primary research method is applied in
this report in order to research about the new product and the market.

Table of Contents
INTRODUCTION...........................................................................................................................5
Methodology ...................................................................................................................................5
Findings............................................................................................................................................5
Existing brand and brand values ................................................................................................5
Description of the target market..................................................................................................6
Analysis of the new market ........................................................................................................6
Explanation of the new product .................................................................................................7
Competition ................................................................................................................................7
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
Marketing environment is full of uncertainties and to deal with these aspects business
must develop strategies so that they can effectively manage their operations. This report covers
the expansion of brand into new segments and further targeting the right audience for the new
product (Porral and Stanton, 2017). In this report, Cadbury is considered which is confectionery
company owned by the Mondelez International. Further this report covers the research and the
new products that the organisation is bringing in the market.
Methodology
Primary research is conducted in the organisation so that the managers can get a better
understanding of the requirement and target market. Surveys and observational techniques have
been a major criteria in developing the understanding of the product development in the
organisation.
Findings
Existing brand and brand values
Brand refers to the business concept which is helpful for people in identifying the
company and its functions. This is an intangible tool used in the marketing to make the people
aware about the products and services that the company offer. Brand extension is one of the tool
that is used by the company to bring up new products and services in the market under the name
of well established brand (Hockenberry, 2019). In context of Cadbury, they are second biggest
company in the UK that is dealing in the confectionery items. They are thinking of expanding
their business products as they bringing the new organic chocolates in the market.
Kapferer Brand identity prism is one of those model that is used by the organisation in
order to build a powerful identity. The core values of the brand are reflected with the help of this
model, this model is built on the six elements which helps the brand in creating a concrete image.
Cadbury works on several brand campaigns as this helps the business in making a good image in
the market. Further they introduced the Real taste of life campaign which helped them in gaining
more customers through the offline and online market.

Description of the target market
Analysing the target market is essential as it helps the business in developing the new
product according to the demand of the customers. To analyse the target market for the new
organic product of Cadbury, STP model is applied below: Segmentation- This refers to dividing of the customers based on similar characteristics
and grouping them into one (Bonaparte, 2017). In context of Cadbury, they have
segmented the audience according to the characteristics and demands. Targeting- Targeting is helpful as in this aspect the segmented customer base is targeted
as in case of Cadbury they will target the health conscious customer who do not promote
the usage of chemicals in the products and wants to eat organic material.
 Positioning- Positioning is one of the major component of the process as in this helps the
business in making the customers aware about the products (Hajjat, 2021). Cadbury
would run marketing techniques to promote their new organic chocolate products.
Analysis of the new market
The analysis of the macro factors in the business environment is done with the help of a
tool that is PESTLE Analysis. Further the factors that impact the operations of the business and
the newly launched product of Cadbury is discussed below: Social factors: This refers to the impact that the society and the trend that people follow
have on the business. This is one of the major sales driver in the business, In case of
Cadbury, they launched the new organic chocolates in the market as the lifestyle of their
consumer base is shifting and everyone if looking for healthy alternatives in the market. Environment factors: These factors are related with the natural environment in which the
business operates. The business must develop ways in which the environment can be
sustained. The organic lifestyle promotes the environment and chemicals and such
components are ignored which helps the business in sustaining.
The company is using the product development and diversification strategies in the
market as they are bringing the new product which is targeted to both the current audience as
well as new audience who are health conscious.

Explanation of the new product
The new product that is launched by Cadbury is centric towards the organic culture where
the nature is promoted and the chemical components as the ingredients of the product are
ignored. The organic chocolates that the business is bringing is for the customer who are shifting
to the healthy lifestyle and don't want to consume much of sugar and such components. Cadbury
is bringing organic products as they want to hope up in the trend and make the most out of it in
the market.
Competition
There are several competitors in the industry and the strategies that Cadbury needs to
make must ensure that the business has capability to give competition to the market leader in the
industry. In context of Cadbury, their organic chocolate competitor is Divine chocolate as they
have been selling organic chocolates for a while in the industry.
Cadbury Divine
The new price range in organic chocolates that
the company is offering is cheap as compared
to the other chocolate brands existing in the
market.
Divine offers high prices in their products as
they have good market share and enjoys
monopoly in the market.
The promotional strategies that the business is
using for their new products are high tech and
innovative which will help in acquiring
customers.
They do not use much of their budget on
marketing and their marketing strategies are
traditional and thus the business is more likely
to be dominated by the new entrants.
CONCLUSION
From the above report it can be concluded that marketing is one of the major component
in the business and the launch of new products in the market require strategies. The business is
required to evaluate the external environment along with the target audience in order to
effectively launch the new product in the market. The business is also required to evaluate the
competition that exists in the industry before entering in the market as they need to make
strategies accordingly.

REFERENCES
Books and Journals
Bonaparte, Y.L., 2017. Outcomes of an Experiential Learning Project in a Principles of
Marketing Course.
Hajjat, F.M., 2021. Using marketing for good: An experiential project on cause-related
marketing in a principles course. Journal of Education for Business, 96(7), pp.461-467.
Hockenberry, T., 2019. Marketing isn't just for products and services. The Journal for Quality
and Participation, 41(4), pp.17-19.
Porral, C.C. and Stanton, J.L., 2017. Principles of marketing. ESIC Editorial.