IB37--UNIT2 MARKETING ESSENTIALS

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MARKETING ESSENTIALS
ACTIVITY 2

Table of content
• Introduction
• Comparison of marketing mix of two firms
• Strategies used by Cadbury for achieving the goals
• Basic marketing plan
• References

Introduction
Marketing mix is a process or path which is used by the business firms in order to
promote their products or services in the marketplace properly. Marketing mix consist of 7
elements which are product, price, place, promotion, people, process and physical evidence
(Papasolomou and Melanthiou, 2012). Through this model, the company can analyse its
existing products and services along with the strategies so that suitable changes can be done
for achieving a higher edge over the competitors. Taken firm in this presentation is Cadbury
which is a food and confectionery products provider of UK. This presentation will cover
comparison of marketing mix of two companies along with basic marketing plan which
includes, STP, budget and marketing mix.

Comparison of marketing mix
Cadbury is comparing its own marketing mix with their main competitors so that
weakness or strengths can be identified for making the improvements in business functions.
Nestle is a food and beverages organisation which is also operating in the same sector as
Cadbury and giving tough competition to the Cadbury in the global competitive market
(Marketing Mix, 2017). The comparison of marketing mix of both organisation is discussed in
further slides.

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Elements Cadbury Nestle
Product The product range of Cadbury is very which is
segmented based on the seasons, festivals,
demographics, geographic due to which company
is attracting people from every segment. Cadbury
is also providing products based on occasions
such as Halloween and Christmas. The products
provided by Cadbury does not only associated
with chocolates but there are other products like
beverages and desserts, which are provided to the
customers (Pike, 2015). The products range of
Cadbury includes Bournville, Crunchie, Cadbury
Dairy Milk, Dairy Milk Fruit & Nut, Caramel,
Cadbury Five Star, Perk, BournVita, Bytes,
Pretzel, Crème Egg, Oreo, Blackcurrant Mini
Rolls, Caramel Cake Bars, Fruit Sundae, Brunch
Hazelnut, etc.
Nestle is biggest food company in the world
which is having more than 8,000 brands which
are providing a huge range of products to the
customers of the Nestle worldwide. The products
of the Nestle are segmented in various categories
such as Dairy products (Nestle milk, Nestle slim
and Nestle every day etc.), Chocolates (Kitkat,
Munch, Éclairs, Polo and Milky Bar etc.),
Beverages, Ready to Cook foods etc. The
company also owns the Maggi which is providing
products such as such as Maggi masala, Maggi
Pasta, Maggi sauce and many more. These
products are assisting the firm in becoming the
largest food company of the world.

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Elements Cadbury Nestle
Price The products of Cadbury are priced according to
their quality and size. The price range of several
products is high such as Bournville and there are
also several low priced products such as Eclairs,
Perk, Five Star. The company is setting the prices
based on the competition, demand and packages
etc. The company is positioning the products
strategically so that the needs of targetted
customers can be met. y also have other options
for the people which is according to the size of
the products. Cadbury has strategically placed the
price of the products so that all the targeted
segments can be met. Some products of Cadbury
are priced as per the consumption and usefulness
such as Bournvita.
Nestle is deciding the prices of their products
based on the quality of raw materials used and
the manufactured product. The prices of the
competitors products such as Yippee noodles or
wai -wai are less as compared to the Nestle's
Maggi. This price variation is because of the
quality of the Maggi due to which a large number
of customer are consuming Maggie throughout
the world. The prices of the products of the
Nestle also depends upon the size or quantity of
the products (Puddle, 2015). The company is also
providing discounts in stores like big bazaar. For
selling the chocolates, company is using the
competitive pricing strategy and psychological
pricing strategy in order to create a positive
psychological impact on the buyers and tempts
then to purchase the products.

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Elements Cadbury Nestle
Promotion Cadbury is promoting its products and services
by using various methods and techniques. The
promotion and advertisement of the company are
mainly done through platforms such as
television, posters, newspaper, online, radio. The
company is working hard for creating awareness
among the public regarding the company. The
company is also using various taglines according
to the countries such as “kuch meeta ho jai” in
India which shows that the brand is trying to
promote itself in the market of sweets. For
Bourneville, company is using tagline “you earn
it.” The company also has several brand
ambassadors which are promoting the products of
the Cadbury.
Nestle always stay classic and innovative in their
marketing ideas when they have to promote the
products in the market. The company is focusing
on extensive advertising and marketing for
marketing and promoting the products of the
company. When Nestle entered in the market
they developed their own Nestle tune which was
heavily liked by the customers throughout the
world. Also the example of Maggi which is
popular among the people as 2 minute snacks
which can be cooked instantly in hot water. The
company is also focusing on the nutritional
values of the products. Strong presence of Maggi
and Nescafe are improving the sales and profit of
the company. The company is using the methods
such s TV, hoardings, print, online ads etc. for
promoting the products among the customers.
Also the company is active on social media for
the promotion of their products.

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Elements Cadbury Nestle
Place The products of the Cadbury are available all
over the world. The company is delivering its
products to the global market by using their
strong distribution channel. Through this
distribution network, company had ensured that
the products are available to the customers all
over the countries. The company is fulfilling the
needs of their targetted customers for achieving
high markets share. The products of the company
are available in urban as well as rural areas (Purvis,
2015). The company is operating its business in
more than 200 countries and by using its
distribution channel, company is catering the
needs of their targetted customers for achieving
high sales and profit.
Nestle adopts the consumer marketing channel
for providing their products to the customers. In
this strategy, the company is providing the
products through wholesalers or retailers. Nestle
is also doing e-marketing for some of its products
in which the products are delivered to the
customers directly from the producer. Nestle is
also using the intensive distribution strategy for
providing their products to the huge number of
customers. The products of the Nestle are
available at a large number of retail outlets. In
Japan, Nestle is using e-shop for promoting its
confectionery through which the customers in
Japan can purchase the Kit-Kat chocolates
online.

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Elements Cadbury Nestle
People The employees working in the stores and
business operations of the Cadbury are efficient
in their working and also possess suitable skills
and qualities through which they are serving the
customers with better products. The company is
also providing training to the new recruits in
order to earn more profitability and productivity
by using the improved skills and knowledge of
their customers. Apart from that, the employees
has suitable communication skills through which
They are helping the customers in deciding the
suitable product according to their demand and
need.
The employees in the business operations of the
Nestle are providing their maximum contribution
for accomplishing the desired organisational
goals. These goals are achieved by the employees
through the assistance of their personal skills and
capabilities. The employees of Nestle are
equipped by the company with leadership,
management, communication skills etc. through
which employees can perform their work in
proper manner. The company is also providing
training and other programmes for the personal
and professional development of their employees.

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Elements Cadbury Nestle
Process The company is using efficient and effective
production process which manufactures quality
based products for the customers. The
distribution system of the Cadbury is also
stronger due to which the company is capable of
delivering its products and services to the
customers all over the world. The company is
also using the inventory management system for
managing and monitoring their inventory and
stocks so that these can be used properly
according to the needs of operations.
The company is following FMCG channel of
distribution through which the company can keep
the extra products in the warehouses. The
products are then supplied to the distributors and
retailers from the warehouses of the company
(Rancati, Gordini and Capatina, 2016). The company is also
providing discounts to the distributors so that
they can keep busy their distribution channels.
These products are supplied to distributors at
discounted prices according to the demand so that
they can continue in selling the products of the
company. Also the company is using the
Inventory management for managing their stocks
in the warehouses so that the products can be
provided according to the demand in market.

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Elements Cadbury Nestle
Physical
evidence
The physical ambience of Cadbury products is
little pinkish and violet which depicts the logo or
image of company on the products. Through the
packaging of products, customers get the idea
that this product belong to Cadbury. Also the
company is using different packing of products
based on the occasions and festivals. Apart from
the products, the physical ambience of the
company is airy having sufficient amount of light
and space. Fragmented environment assist
employees in working properly.
Nestle is using unique combination of colours in
the packaging of their products in order to attract
huge number of customers. Also the products has
the unique logo of Nestle in an unbalanced heart
shape. Apart from that the products of the Nestle
are kept in cold storages due to which the
physical appearance of retail outlets or stores are
also air conditioned, Clean and spacious. The
business operations of the company has good
atmosphere which keeps the employees away
from any harmful disease and infections.

Strategies used by Cadbury in achieving
organisational goals
Cadbury is a global company having operations in a large number of countries. The
company is using various strategies for accomplishing their predetermined goals
and objectives. These strategies are essential for Cadbury in surviving in the highly
competitive market place. These strategies includes segmentation of customers,
determining trend and needs of customers etc. which can assist the company in
providing the products to the customers in a proper manner. The company is
determining the suitable customers based on the demographics, geographic, age,
gender etc. for providing the products to the customers according to their
requirement. For example: Youth and children prefers the chocolates due to which
company is targetting these customers for selling their chocolates.

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Before providing the products to targetted customers, company is determining several things as
discussed below:
 Identifying the needs and requirements of targeted customers so that products can be developed
accordingly.
 Determining suitable positioning strategies which can be implemented for providing the products
to customers.
 Taking feedbacks and suggestions from existing customers regarding the segmentation.
Through these, company can effectively offer its products to the targetted customers as the
products are developed based on the needs of customers which will enhance the customer satisfaction
and trust. This is essential for the firm so that company can maintain its market position for a long
period of time.

Basic marketing plan
The marketing plan is a document in which list of action is discussed which should be
performed by the company in the upcoming time period. It serves as a blueprint for
carrying out the organisational activities in future time. The marketing plan for
Cadbury is discussed on further slides.

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Overview of organisation
Cadbury is a multinational company which is performing its business operations throughout
the world. The company was founded by John Cadbury in 1824 in Birmingham, England. The
present headquarter of the company is in London, UK. The company is employing more than
71,657 employees throughout their business operations in more than 50 countries. The company is
planning to launch their brand new organic dark chocolates which will be manufactured from the
organic raw Cocoa. The company is introducing this new product for satisfying the needs of
customers who wants to eat healthy dark and organic chocolates. This idea was developed due to
the increasing trend of healthy eating habits. Also chocolates is chosen as these helps in lowering
blood pressure, cholesterol and risk of heart disease (Rowley, 2016).

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Marketing objectives
While introducing new product in the market, organisations develop some objectives
which are to be accomplished by using the new products. The objectives of Cadbury for
launching the new organic dark chocolates are SMART objectives which are discussed below:
 Specific
 Measurable
 Achievable
 Relevancy
 Time Bound

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Segmentation, Targetting and Positioning
Segmentation: It is the process of segmenting the market according to the taste and
preferences of the customers. For example: Segmentation of customers on the basis of
gender or consumption. Cadbury is launching their new organic dark chocolates due to
which they can use the demographic segmentation in which the customers are
segmented based on their age, race, religion, gender, family size, ethnicity, income etc.
Through this segmentation, company can provide its products to the targetted segment
effectively for achieving huge sustainability in the market.

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Targeting: In this, the company select a particular group of people from the entire market
and provides their products to them. Cadbury is launching new dark organic chocolate due
to which the company is targeting the youth and children as they prefers to eat chocolates.
Positioning: It is the last step in which Cadbury needs to develop good and better brand
image among the customers. For this, the company is launching their new organic dark
chocolate so that the product range of the company can improve along with the market
position (Scarborough, 2016). The company needs to use the suitable platform for
promoting the products and also the company needs to ensure that they are providing
valid and fair information to customers so that the customers shows more willingness in
purchasing their product.

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Marketing mix
Marketing mix is the technique which is used by the organisations for evaluating the
market situations in order to launch their new product. The marketing mix for the new
organic dark chocolates of Cadbury is as follows:
Product
The organic dark chocolates are developed by
the company for positively impacting the
customers in terms of health. These dark organic
chocolates assist the customer in lowering the
chances of blood pressure, cholesterol and risk
of heart disease.
Place
This chocolates will be provided to the
customers in various parts of UK such as
London, Briston, Edinburgh etc. in the first
phase where the demand for organic chocolates
are high.

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Price
Price skimming strategy is followed by the company in
launching this new product. In this the product is
launched at lower prices and increased with the increase
in market share. Also the chocolate is affordable for the
middle and upper class people
Promotion
The company will use the Social media platforms,
Newspaper advertisements etc. for the promotion of new
chocolates as these methods need less amount of money.
Company is also providing discounts and offers to the
existing customers.
People
The employees who will be engaged in the production of
this new dark chocolate are skilled and talented having
sufficient knowledge of operating the production
machinery.
Physical evidence
The packing of the new dark chocolate is little bluish and
pinkish in colour which is similar to dairy milk silk.

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Process
The company will use the updated machinery in the production of new dark organic chocolate.
Apart from that, the company will also process the raw cocoa from updated equipments for
ensuring the quality. Distribution chain of Cadbury is strong due to which the product will be
delivered easily in the market.

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Implementation plan for the promotional launch
There are various promotional activities which can be used by the Cadbury for influencing the
targeted customers. These tools includes social media platforms, TV, hiring celebrities and
campaigns etc. which consumes less time and money (Wilson, 2014). A budget has been
prepared by marketing department for carrying out the activities for the promotional launch of
organic dark chocolates as given below:

Conclusion
It has been concluded from the above presentation that the marketing department is very
useful for an organisation in order to achieve high market share and productivity. The
marketing department plays various roles at the workplace which are essential for the
development of organisation as well as for improving the sales and profit. The marketing
department is also responsible for improving the customer satisfaction and relations so that
customers can be retained by the company. The elements and marketing plan is useful for
the firms in carrying out the various marketing activities for promoting the products and
services of the organisation.

References
Ahrens, C. D., 2011. Essentials of meteorology: an invitation to the atmosphere. Cengage
Learning.
Berkowitz, E. N., 2016. Essentials of health care marketing. Jones & Bartlett Publishers.
Brooks, N. and Simkin, L., 2012. Judging marketing mix effectiveness. Marketing
Intelligence & Planning. 30(5). pp.494-514.
Clow, K. E. and James, K. E., 2013. Essentials of marketing research: Putting research
into practice. Sage.

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