Comparison of Marketing Mix: Cadbury vs Nestle

This report compares the marketing mix of Cadbury and Nestle, including product, price, place, promotion, physical evidence, people, and process. It also includes a basic marketing plan for Cadbury.

Marketing Essential

Contents
INTRODUCTION...........................................................................................................................3
PART A...........................................................................................................................................3
Comparison between two organisations on the basis of marketing mix................................3
PART B............................................................................................................................................7
Develop basic marketing plan of Cadbury.............................................................................7
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
The term marketing refers to a course of action that is undertaken by entities of company for
promoting, buying and selling of goods / services. In which it includes various activities like
advertising, delivering etc. to consumers for spreading awareness about as well as for the
accomplishment of organisational goal. The marketing in an organisation is considered as a core
function that carried out by the entities of marketing team for promoting their business function
in effective manners (Charlesworth, 2020). In relevance to this, the present report is based on
Cadbury company, which is a British multinational confectionery corporation. This company
was founded by John Cadbury in 1824. This company deals with Bournvita Biscuits, Bournvile,
dairy milk and so on. In which the present report covers comparison between two firms on the
basis of marketing mix as well as includes a basis marketing plan on chosen firm.
PART A
Comparison between two organisations on the basis of marketing mix.
The term marketing mix tends to a strategic approach that is undertaken by the entities of
company in order to promote brand at marketplace. In which it is a combination of various
marketing functions that assist in getting guidance for firm. It has been considered that it is
although a time consumer’s process but gives a fruitful and worthwhile outcome that can be used
by an entity (Nirschl and Steinberg, 2018). The marking mix is exit in marketing because
manufacturer wants to meets the demands of potential consumers by selling their products to
them in affordable prices at appropriate place. With the help of this company will able to make
effective marketing strategies by taking consideration in order to carry out their functions
smoothly. In relevance to this a comparison between two enterprise based on marketing mix is
discussed below:
Components Cadbury Nestle
Products A product refers to an item
that is offered by company to
consumers in which the chosen
firm possess a large portfolio
such as dairy milk,
On the other hand the products
that is offered by Nestle
company are Maggie, milky
bar, Nestle slim and so on. In
which the major cash cow in

Bourneville, five star etc. with
the help of this they will able
to grab huge market shares
(Hanlon, 2019).
this segment that they have is
nestle Maggie noodle. In
which they expand their
segments in this sector in order
to create an umbrella of
different product like maggie
pasta, maggie sauce, maggi
cubes and so on. Along with
this, they are also dealing with
chocolate products like kitkatt
nestle, munch and many other
variety of chocolates.
Price This refers to the value that a
specific product possess. In
which the price of product will
be decide on the basis of
quality, features and on the
manufacturing cost. It is vital
to have price of product so that
the exchange process will be
carried in appropriately. In
relevance to selected firm, they
use skimming price strategies
for their products so that they
will able to set the price of
product according to the
quality & taste of goods.
the price strategy of nestle is
totally depend on the market of
each individual product for
instance Nescafe and Maggie
Bing the clear leaders are
priced with higher margins for
company as compared to other
players of market. It is just
because of quality which they
offer as well as the skimming
price strategy which will not
cause the end users to go for
other brands. In addition to
this the price strategy of nestle
is also depends on packaging
of product. Along with this it
has been identified the nestle
sets price of their products on
the basis of market demand as

low as possible because nestle
is the trend set in the market
whereas Cadbury offers
incentive schemes such as
Maha munch give more values
for the same price at key price
points like rupee 5.
Place This is also another component
of marketing mix in which the
place refers to a location so
products are easily available to
the potential customers. It is
vital to have convenient place
so that customer can get easily
access towards product. In
relevance to Cadbury they
possess several physical store
with wide chain of distribution
retailers across the globe as
well as the products of the
company are also available at
small shop and luxurious mall
(Wilson, 2017)
In relevance to nestle, the
management team of company
follows FMCG strategies for
delivering of goods to
consumers that includes
breaking the bulk. With
reference to this nestle
chocolate segment faces stiff
competition from Cadbury
therefore it become difficult
for them to self-chocolate’s at
marketplace. For instance they
have they on brand position of
cricket but it is not better than
Dairy Milk as well as the
converting little era to sell
nestle over Cadbury is difficult
task for them and with the help
of effective promotional
activity they will attend the
goal.
Promotion The term promotion refers to
an advertising activity which is
In context of promotion nestle,
they use various kinds of

spread awareness about
product at market place and
this will be carried out with the
help of some tool such as
social media, word of mouth,
digital marketing, TV,
newspaper etc. and in social
media like Facebook YouTube
etc. It is important for entities
of company to Carry out
promotional activity about
brand or product so that
consumer will get awareness
about new products and
company portfolio.
campaign activity such as TV
advertisement, social media,
digital marketing and so on.
The business entity of nestle
mainly focus on take a break
that is related with the Kit Kat
as well as the website of kitkat
is very innovative and ask
visitors to take a break and
have kit-kit (Kornegay and
Ursiny, 2020)
Physical evidence In a business unit it is
important for company to have
a physical evidence of
products and brands so that
they will easily retain their
customers for longer period of
time. With reference to
selected frim they poses
various physical evidence like
stores, templates, promotion of
brand, title of company and so
on
The physical evidence that
nestle poses is that they have
their own title line such as take
a break and have a kitkat along
with this have so many stores,
promotion of brands, templates
etc. Additionally they have a
strong coverage in urban areas
and developing in rural areas.
People Here, the people term refers to
end users who consumes the
products that are offered by the
With reference to nestle
deposes less fan following
compared to Cadbury. Nestle

company so it is very
important for a corporation to
have strong consumer base
then only they will able to
accomplished their predefined
goal. In context of Cadbury
they have a very strong &
loyal consumer-base as well as
have salesmen, retailers for
delivering the products to
customers.
have low consumer base
whereas can we have a loyal
consumer base.
Process The term process can be
defined as a distribution
channel by which product is
being supplied or delivered to
the consumers. In context of
Cadbury they use
supermarkets, general stores
for delivering their goods
Nestle follows FMCG
distribution structure for
delivering their goods as well
as they're penetrating and
focusing to enter into rural
areas (Chernev, 2019)
PART B
Develop basic marketing plan of Cadbury
Marketing plan can be defined as a comprehensive report which comprises different
marketing plans and strategies of enterprise that are vital for communicating to potential
customers. This process helps company to determine the target and competitive consumers that
are available in the market (Fill and Turnbull, 2019). In relevance to the selected firm, Cadbury
the management team of firm decide to establish new product which are made up of natural
ingredients and sugar free that influence and grab more consumer towards their product.
Overview of company

Cadbury is a British multinational organization as well as a second largest confectionary
company throughout the world. This company was founded by John Cadbury in year 1824. In
which they operates their business at various nation of globe and deals with variety of products
like dairy milk, Bourneville, halls etc. In addition to this they have the biggest supply chain of
brand like Cadbury Bubblicious, Bassett and on. In relevance to this some of the Cadbury
products are bars, desserts, ice cream, beverages, cookies, biscuits and many other products.
Cadbury firm targets all type of end users such as small large and medium that aids them to
expand their product line as well as market by adopting new technologies that give them success
and development in business unit (Al Badi, 2019).
Mission and Vision: Mission of company focuses on present market such as what is
happening there whereas the vision focus on future what the organization want to be. With
relevance to this the main objective of company is to deliver an excellent & good quality
products along with tasty to their customers.
Objective of company
The main objective of companies to become one of the best and leading company in
confectionary unit along with this they are seeking to perform better with respects to other
competitors of market for increasing the productivity and profitability of firm.
Marketing objective
 To offer full satisfaction to their and end users by providing chemical free as well as
sugar free products to them.
 To increase the sales ratio by 30% with the help of introducing new products.
 To influence and attract more number of customers by offering excellent quality of
goods.
STP approach
When it's come to marketing planning & strategies, the most effective tool that is used by
company is STP model as it helps company to provide an appropriate path for the
implementation of plan & activities as well as to determine the position of company at
marketplace. This approach is majorly use by the researcher of company in order to conduct
market strategies in effectual manner (Stephens, 2016) The term STP stands for segmentation,
targeting and positioning that means to segment the potential customers of various sector and
then target potential buyers by positioning the services within the market. In context of Cadbury,

it is necessary for them to segment, target and position their customers for reaching out them so
that they will able to make maximum profit. STP model for chosen firm are as follows:
Segmentation: This is a process of sub division of markets into small segments which
holds similar needs and behaviour in same manner. It is carried out on the basis of some set
criteria such as geographical, behaviour, demographical and psycho graphical. For example
Cadbury temptations are mean for those who are willing to pay more or prefer dark chocolate.
Segmentation of whole market for Cadbury is carried out on the basis of 3 elements
Behavioural- Qualitative, service, occasionally and medium uses rate
Demographical - 18 to 13 years & 12 to 18 year
Psychographic- Show economy classes A1,A2, B1,B2,C,D,E1,E2
Targeting- After segmentation the targeting of potential consumers is to be considered in
which capable end potential customers are being targeted based on criteria such as demographic.
In relevance to Cadbury the Bonneville product of this company are made for those who loves
dark chocolate for this they mainly targets 12-30 years old section A-segment.
Positioning- The term position refers to value or image of brand at marketplace. It mainly
relies on perception of customers towards product. It is vital for company to make some
differentiation in their products from competitors so that consumer will get to know what they
are actually offer (Bloomfield, 2020). Customers always attract towards innovation and
creativity as well as tasty & towards those product which have good image within the market.
Cadbury have a good image at marketplace & holds good position for those who are looking to
find international taste of chocolates
SWOT analysis of Cadbury
This is also a strategic framework which is undertaken by management team of company
for determining the internal strength and weakness as well as external opportunity and threat.
With the assistance of this they will able to make effective strategies and plan according to the
condition of market. Entities of Cadbury carried out is what analysis for identifying the
capabilities and potential which are follows:
Strength Weakness
 Cadbury is well known and establish
brand at marketplace and this act as the
 There is Lake of penetration in rural
areas

biggest strength of Cadbury company.
 They have a use market share approx.
70%
 They are rich in product mix as they
deals with various kinds of product.
 Various number of individuals are
suffer from diabetes which pushes them
to avoid chocolate's
 Some individuals or segment feels that
the cost of Dairy Milk is higher
compared to other brand.
Opportunity Threat
 To enhanced the shares off market by
adopting targeted acquisition.
 Innovation for capturing the market
 To increase acceptance of globalization
in sector is another opportunity for
Cadbury
 Entrance of other international brands
 Controversy and negative publicity
towards quality of product
 Competitive threats from nestle and
Amul
Use of marketing mix in order to achieve overall marketing objective
It has been analysed that the main components of marketing strategies which assist
company in gaining the competitive edge at marketplace is marketing mix. With reference to
Cadbury, The management team carries out marketing mix which are underneath:
Product- By providing products based on the demands and preferences of consumers
such as chocolate's which are made from natural ingredients and sugar free in order to maximize
the profitability of company
Price: On the basis of cost leadership and skimming strategy, selected firm could able to
adjust the cost price of their products without hampering or minimising their quality of products
Place -The Cadbury Company are lacking their own outlets so by opening that they can
improve their sales and profit margin as well as by offering more services at rural areas
Promotion -By using digital marketing, social media marketing, Cadbury can attract
more number of customers toward their services or product
People -For introducing new products at Marketplace Company needs to recruit some
talented and experience in R&D department by this they will able to attain their goal.
Additionally, by using CMR tool they will able to analyse the preferences of customers.

Process- In order to produce sugar free Chocolate Corporation needs to add some natural
ingredients over chemical products for making sugar free chocolate.
Physical evidence- In relevance to this product that company wants to introduce at
marketplace need to have appropriate branding & labelling with the title or logo of firm.
Coherent evidence based on marketing plan of company.
Marketing budget- During formulation of any plan, it is vital for management team of
company to have awareness about budget that are required for the implementation of plan. In
which the audit and finance team perform various function and makes notes of transaction on
daily basis.
Particulars 1st year 2nd year 3rd year 4th year
Investment 11000 20000 6500 6000
Initial money 12000 25000 7500 8000
Total 23000 45000 13000 14000
Marketing outlay
Sales publicity 2300 2000 2000 2000
Direct selling 4900 4500 2000 2000
Promotion 6000 2500 6000 3000
Total 13200 9000 10000 7000
Evaluation of marketing plan
Sales analysis
This is a framework that is used by entities of organization to measure their performance
and progress of sales within company (Haugom, 2020). So that it become easy for firm to
determine the weak points, problems and reasons of errors.
Advantage
Consumer branding- In context of this company always seeks to take feedback from
there unknown consumers to make modification accordingly. Therefore the company will able to
assess that what people things about their product
Disadvantage

Cost- It has been analysed that most of firms hires outsiders as a counsellor for investigation
and analysis so it become demerits for company in terms of cost.
CONCLUSION
From above discussed report it has been analysed that it is vital for company to analyse all
external and internal factors for smooth running of business operation and with the of various
tool such STP, SWOT etc. company will able to analyse. Additionally for making effective
strategies related with promotion entities need to carry out marketing mix in effective manners.

REFERENCES
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Fill, C. and Turnbull, S., 2019. Marketing communications: touchpoints, sharing and disruption.
Pearson UK.
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Limited.
Haugom, E., 2020. Essentials of Pricing Analytics: Tools and Implementation with Excel.
Routledge.
Kornegay, A. and Ursiny, Z., 2020. 6 Essentials for Building Successful Family Teams. Journal
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Nirschl, M. and Steinberg, L., 2018. Einstieg in das Influencer Marketing. Springer Fachmedien
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