Marketing Principles and Strategies Adopted by Cadbury

This report discusses the marketing mix used by Cadbury, including product, price, promotion, place, people, and physical evidence. It also covers the importance of marketing in strategic planning, and the concepts of segmentation, targeting, and positioning. Additionally, it discusses service excellence techniques used by Cadbury to meet customer expectations.

Report

Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
Describing key principles of marketing adopted by Cadbury.....................................................1
Importance of marketing in the strategic planning ...................................................................3
Concepts of segmentation, targeting and positioning..................................................................5
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Marketing consists of all those activities which are undertaken by an organisation in
order to promote its products or services (Baker and Hart, 2016). It essentially includes
advertising, delivering products as well as services, market research, collecting feedbacks, etc.
Marketing assists in tapping new markets and persuading potential consumers towards exclusive
as well as existing products or services. This report consists of marketing mix which benefits in
developing and executing effective tactics to marketplace. Within this assessment, importance of
marketing is also concluded which aids organisation in performing strategic planning for its
operations. This project also includes the assessment of STP analysis which assists businesses in
selecting their target audience and then market their products according to their preferences. In
this report, Cadbury company is taken into consideration for finer understanding of marketing
principles. It was founded in 1824 and has its headquarter in Uxbridge, United Kingdom.
MAIN BODY
Describing key principles of marketing adopted by Cadbury
Marketing mix is a combination of differential tactical tools which are used by an
organisation in order to synthesizes effective strategy to promote company's products and
services (Deyneha, Akimova and Kratt, 2016). It assists an establishment in identifying and
determining the suitability of their products and services to customers. It is beneficial for
businesses in having a proactive approach towards coming risks. Market analysts of Cadbury
uses marketing mix in order to achieve their overall and marketing objectives in a global
marketplace. All the elements of marketing mix in accordance with Cadbury are as follows: Product can be termed as something which an organisation sells to make profits and to
develop a reputed position in marketplace. To make a product or service profitable,
company needs to perform extensive research by keeping consumer preferences, tastes,
market trends etc in mind. Cadbury has diversified range of products offering on a global
level to its various customers. It not only believes in developing quality product but also
wants to maintain them in a efficient and effective way in order to modify their potential
consumers into permanent ones. Cadbury offers different segments of products such as
chocolates, beverages and biscuits.
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 Price can be described as monetary value which is paid by a customer in order to acquire
or purchase a specified product or service. Organisation have to carefully adopt their
pricing strategies as higher prices exhibits high quality (Festa and Et. Al., 2016). Cadbury
has adopted differential pricing strategies for various kinds of products such as price
skimming for its newly launched products. It also uses economy pricing strategy which is
economically affordable for its targeted customers such as dairy milk, perk, five star and
eclairs. It has also successfully adopted bundle pricing in which it creates differential
hampers and festive packs. Company has adopted these practices in its operations to build
a strong market reputation and brand awareness among customers in order to attain its
marketing objective. Promotion includes those activities which aids organisation in attracting and persuading
potential customer base. Its main elements consists of advertising, making public
relations, publicise products through social media channels and print form. Cadbury
essentially follows advertising campaign that create connections with their consumer's
feelings. Company uses differential taglines and dialects in various countries in which it
operates for its diversified products (Fraser-Arnott, 2020). It uses traditional as well as
modern methods for marketing their products all over the globe such as television,
posters, hoardings and digital channels. They also hire celebrities as their brand
ambassadors in order to create an impression in consumer's mind. These techniques aids
Cadbury in adhering profitable opportunities in global marketplace. Place (or distribution channel) can be termed as transferring the possession of products
or services from manufacturer or producer to end consumers. It largely depends on
distribution channel in reaching products to point of sale in order to gain customer
satisfaction and increase brand loyalty. Cadbury offers its products worldwide has a very
large distribution and supply channel which aids company in accessing a large customer
base. It has wide network consists of manufacturers, logistics, distributors, retailers and
wholesalers. With initial developments in digital marketing channels, it increases its
distribution through online advancements. It assists company in catering larger customer
base and generate more revenue as well as profits. People primarily includes employees of organisation. Company should manage their
employees effectively and also look if they are positively perceived by customers
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(Hisrich and Ramadani, 2017). Cadbury has successfully integrated its HR policies and
practices in order to strategically manage its human resources. Company helps its
employees in understanding how to make business operations more profitable. This
further helps in generating sense of responsibility among employees and they feel
connected towards organisation. Physical evidence includes invoices or bill that a consumer gets in order to validate their
purchase. It fosters a sense of connectivity or value in customer's mind. Cadbury uses
innovative practices in packaging their products so as to make them attractive and
persuade potential customers to make a purchase. Cadbury has its own copyrighted logo,
brand name, convenience stores which are marked as physical evidence for company.
This aids company in attaining its marketing objectives and also have a differentiated
image other than its competitors (Jindal and Et. Al., 2020).
 Process includes all the activities which are needed for producing and delivering products
to end users. These processes needs to be upgraded with advanced and new technology in
order to make products attractive and gracious. Cadbury uses advanced technology in
processing its products. It exports cocoa beans from different country and process those
in machineries on a greater production line. This aids organisation in making better
products and gain a upper hand over its competitors.
Importance of marketing in the strategic planning
Marketing is very crucial element for any organisation and it is significant to make
various strategies as well as to plan its operations strategically. Planning through effective
strategic techniques or methods assists establishments in efficiently identifying and developing
their vision towards attaining business goals (Kucuk, 2017). It also assists in determining the
sequence by which these goals or objectives can be attained in order to make compliance with
stated vision. Top management of Cadbury wants to plan its marketing strategics or tactics
strategically in order to increase its operational efficiency and to gain sustainable competitive
advantage over competitors. Importance of marketing in performing strategic planning for
functional areas in relevance to Cadbury are discussed below: Helps in evaluating current environment- Developing a marketing plan is a significant
tool which aids company in its position and effectively performing situation analysis. It is
significant for in-depth study as well as understanding of organisation's available
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resources and development of competitive environment in marketplace (Lim, 2021). Data
gained in marketing research helps businesses to know the current position of its
operations. Cadbury's marketing strategies aids not only in understanding marketplace
but also gain better insights into industrial sector so as to plan promotional activities for
its products. Aids in establishing marketing goals- A well-defined marketing plan aids an
organisation in establishing clear goals and objectives which further helps in generating
more revenue as well as profitability. Cadbury establishes SMART goals to attain
differential position in market and stay one step ahead before its competitors. Setting
these goals helps in making goals attainable, measurable and relevant to business
functions. Cadbury ensures that their marketing and promotional plans helps in
measuring company's successful avenues and to set pre-decided benchmarks in order to
compare those goals with initial plan. Helps in developing unique selling proposition- It can be described as a business model
aids organisation in notifying its customers about differential products or services that
firm is offering in marketplace and how they are different as well as superior from
competitors (López-Pinto Ruíz, 2021). Cadbury's unique selling proposition is its
attractive packaging tactics and taste which it assists in maintaining its competition in
industry. Company continuously trying to identify as well as develop variations in its
taste and promotional advertising campaigns in order to attract more customers. Helps in conducting market analysis- It is significant for businesses to conduct holistic
analysis of market needs in order to have knowledge about consumer behaviour,
preferences and lifestyle which further helps in determining their buying pattern. Cadbury
faces monopolistic competition as it competitors, Nestle and Hershey offer similar
products to customers. It essentially performs in-depth market analysis in order to gain
upper hand over its competitors. It also assists in discovering new market trends to
attract large number of potential consumers. Aids in creating sense of direction- By establishing clearly stated marketing plan, aids
company in developing a sense of direction in accordance to which business operations
must perform. It assists Cadbury in generating foundation of decision-making process in
differential areas such as recruitment, production, allocating budgets etc. Marketing plans
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also helps employees in working in a specific direction to fulfil individual interest as well
as organisational goals or objectives.
 Helps in fixation of budgets- Marketing plans aids an organisation in allocating
differential cost to in creating a budget (Marcial, 2021). It aids Cadbury in assigning cost
of advertisements and promotional campaign to budgets effectively which further helps
in developing a method which decides the scope of marketing strategies adopted by
company. It also aids Cadbury in allocating overall budgets for the organisation as a
whole. Implementation of marketing plan in establishment assists in generating more
revenue and catering new targeted customers.
Concepts of segmentation, targeting and positioning
STP analysis is a fundamental concept which assists organisation in developing
attainable, measurable and specific marketing strategy. This model is an excellent embodiment
that principally focuses on customers rather than products which enables organisation in
developing new ways to reach customer base and create a differential position among
competitors in order to attain success (Ndofirepi, Farinloye and Mogaji, 2020). Rationale behind
this model is to bifurcate different segments, target them and position company's brand in
accordance with customer's needs and expectations. It would be beneficial for Cadbury in
reducing advertising cost by targeting only specified customer base. Cadbury came up with
different innovations in its most popular product, dairy milk. It again come up with slightest
change in its innovation and launched a product called Cadbury dairy milk no frownie brownie
chocolate bar. All the elements of STP analysis in accordance with Cadbury are discussed below: Segmentation includes identifying distinctive features or traits of different customers in
marketplace which permits an organisation in developing engaging and relevant
advertising campaigns. This practice is helpful in evaluating targeted audience insights
for expected desire or want from group of buyers in marketplace. This can work well in
mature markets where company wants to track down new opportunities, bringing out
unique benefits only to a targeted customer base. Cadbury applied this analysis in order
to segment its audience on the basis of psychographic habits, loyal to brand behaviour
and gender demographics. It essentially offers dairy milk no frownie brownie chocolate
bar to specified segments of consumers (Purohit, Paul and Mishra, 2021). It covers those
consumers who have habit of trying variation in taste of different chocolate, whose
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buying behaviour is to make purchase of new products of Cadbury as they are loyal to
brand. Targeting can be termed as the process of analysing most alluring customer segment
which are identified at segmentation stage. Ideal segment would be the one which is most
profitable than others for the business (Solimun and Fernandes, 2018) . Cadbury targets a
large customer base on a global level by offering diversified range of products. Its new
product targets customers who love Cadbury chocolates very much and have stable and
high income. As these are not affordable for consumers who came from middle-class
segment at regular periods. Company can target those targets who essentially bought
Cadbury chocolates for presenting it to their friends to try a new taste. Positioning is a strategic process which aids an organisation in determining the position
of a product or service in market. Through the help of segmentation and targeting,
Cadbury gains targeted audience insights, their desires and expectations which enables it
to develop marketing strategies in a way that it able to create differentiated position in
industry. Cadbury uses this positioning technique in developing as well as maintaining its
unique selling proposition so that it can convey right message to targeted audience. With
the help of this model, Cadbury revamp its dairy milk brand and launched no frownie
brownie bar. It aids company in positioning its newly launched product in creating
stronger impact only on targeted customer segments thus reducing advertising cost.
Service excellence techniques
It can be termed as ability of an entity which assists in meeting extended customer desires
and expectations consistently as well as effectively. It primarily deals with promises done to
customers and resolves various problems as well queries that arises in any transaction. It is a
very crucial topic in any industry as it is based on customer-focused approach. It aids
organisation in catering and maintaining client base in extremely competitive environment. It is
important for companies to put great efforts in analysing and improving its customer services by
using reporting and analytical tools. There are various softwares available in market which
automates manual tasks in order to improve the speed of services. can achieved by identifying
and analysing data about company's client relationship, setting specific goals and asking for
feedback from customers (Stead and Hastings, 2018). Cadbury mainly focuses on quality, health
and luxury as its selling points. It provides differential quality products and brands to various
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customer segments such as expensive, affordable chocolates. It believes in providing excellent
service to every customer segment by providing differential products. Various techniques
adopted by Cadbury in gaining excellence in catering its huge customer base globally in order to
increase repeated sales. By incentivizing customers – Cadbury uses point program to increase customer loyalty
towards brand so that they make repeated purchase. Some points are credited to them
virtually whenever they bought something from retailers. These points can be redeemed
as a discounted price when they again purchase Cadbury's products. Each time when
customers generate points they post it on social media sites which gives company free
promotion. This will also help in making strong relationship with customers and enhance
brand royalty (Baker and Hart, 2016). Take help of referral programs- Cadbury can use referral programs in order to increase
communication with consumers and enhance sales. Under this program, customers are
given referral codes that they have to give to their friends or relatives for purchasing
products in order to get some discount on them. Can apply VIP programs- It includes granting some membership or VIP status to its
customers which aids in creating highly motivational environment and a sense of
connection with brand. There are various membership management softwares that can be
used by company in maintaining their customer loyalty programmes. VIP members are
provided with some privileges such as notified on new products launch, invitations for
various events. Can use e-mail retargeting- It can be termed as targeting customers after their first
purchase through e-mails, social media channels. This assists Cadbury in designing its
promotional and advertising campaign in an efficient way thus enhance sales. This
technique can be used strategically by company in creating customer relationship with
brand strong and communication channels effectively. Can use modern channels of communication- Cadbury can take help of social media
marketing and digital channels in order to communicate effectively with its customers.
Besides using traditional methods, it can rely on modern methods of marketing and
promoting its products so as to attract huge customer base. Through this it can also
provide customized and attractive messages directly to its segmented customers which
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further aids in creating a differentiated position in industry. This also helps in generating
more sales by changing potential customers to permanent ones. Leveraging user- generated content- Cadbury always ask for feedbacks from its
customers in order to increase repeated purchases and enhance sales which further helps
in generating more profitability. By continuously collecting feedbacks it aids organisation
in getting clear insights of targeted customers so that can design its products in
accordance to their desires and wants (Lim, 2021).
 Take help of personalized campaigns- Through STP analysis, Cadbury gets an in-depth
understanding about customer's preferences, aids in designing personalized and
customized campaigns. Company sends messages or e-mails to its customers to repeat
purchases in case of new product launch in order to maintain communication and
relationship with them effectively.
CONCLUSION
From the above report it can be concluded that marketing is an activity which allows
attracting and persuading potential customers to buy specific products or services. There are
differential marketing strategies followed in every organisation but its implementation varies
with different business operations. Marketing tactics are beneficial for an organisation as it aids
in determining the growth areas and planning accordingly for catering huge customer wants. It
also helps in performing thorough marketing research which further helps in various functional
areas of an establishments. Marketing mix is a blend of various activities in order to make a plan
for advertising and promotion. It essentially acts as a guide for allocating judicious resources
whether it is human or financial. STP analysis bifurcates targeted customers into small groups in
accordance to their preferences, traits and features. This would further aids in improving
customer sales service. It assists in building loyal and stable relationship with customers by
providing them only those products or services which they want. By providing excellent services
company can create an differentiated position which is far more better than its competitors. It is
crucial for establishments to speedily finding solutions to customer's queries. Organisations
should be proactive in their approach so as to reach and solve customer's queries before they
arises it to mangers or personnel.
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REFERENCES
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