Comparison of Marketing Mix: Cadbury vs Nestle

This presentation compares the marketing mix of Cadbury and Nestle, two multinational companies in the food and beverage sector. It discusses the elements of the marketing mix such as product, price, place, promotion, physical evidence, and more. The presentation also includes a marketing plan for Cadbury's new sugar-free chocolates.

Marketing Essentials
ACTIVITY 2

 Introduction
 Comparison of marketing mix
 Marketing plan
 Conclusion
 References
Table of Contents

Marketing mix refers to the set of procedures, strategies and tactics which
are used by the organisations for marketing their products and services in the
market. This is essential for the company in order to determine the various
aspects before launching or marketing new products in the market. Nestle is a
Swiss multinational company which deals in a same sector of Cadbury and
providing tough competition to each other. This presentation will cover
comparison of marketing mix of different organisation along with the
marketing plan.
Introduction

Comparison of marketing mix
Marketing mix can be defined as a set of tools or methods which are used by
organisations for promoting their brands or products in market. It mainly
depends on seven elements that are product, price, place, promotion, physical
evidence etc. This technique is used by company for updating the company
about existing offerings or policies so that relevant changes can be made for
competing the rivals in market. The elements are discussed on further slides.

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Comparison of both companies on the basis of Marketing mix is given as
below:
Factors Cadbury Nestle
Product Cadbury is a
renown firm and
have build its strong
presence across the
world. Company
offers various
confectionery
products like dairy
milk, Dinky
deckers, Bitsa
wispa, freddo etc.
Nestle is a multinational
corporation and also known
as world's largest food
company on the basis of
revenue. Offering of firm
includes Baby food, coffee,
dairy products, ice creams
etc. As company operates its
functions at large level then
they also make modifications
in existing products on
regular basis so that brand
image can be maintained in
market.

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Factors Cadbury Nestle
Price Price is also an essential
element of marketing mix
that supports the managers of
firm in capturing huge
market share and customer
base. Company believes in
low pricing method and
delivers products at low
prices as compared to others
due to which they have build
good brand image in the
mindset of customers. For
e.g. Price of a dairy milk
chocolate 100g is £2.00
Whereas, Nestle
provides quality
products at premium
rates. Prices of all
confectionery products
as compare to Cadbury
is high. For e.g.
company charges on
shreddies 80g of around
2.5 pounds.

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Factor
s
Cadbury Nestle
Place Cadbury operates its
functions in around 60
nations around the world and
their products are easily
available at supermarkets
and local shops due to which
they have maintained good
image in marketplace. Apart
from that, company have
also started to selling its
products through online
platforms so that large
market area should be
covered in a less time-frame.
Where, Nestle has made
its presence in 189 nations
therefore market size of
firm is larger than
Cadbury. In addition,
company also offers
products at online
platforms due to which
market share of firm is
also high than Cadbury.
Company have also
opened its outlets in
metropolitans cities in
most of the nations so that
customers can easily find
their offerings.

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Factors Cadbury Nestle
Promotion In order to promoting
offerings, Cadbury is using
various methods or
techniques. Promotion and
advertisements of company
are mainly done through
various platforms like T.V
Advertisements,
Newspapers, Online
platforms, radio etc. Some
effective tag lines Like
“Kuch Meetha Ho Jaye”,
“You Earn It”, Shubh
Aarambh etc. are also used
by company in order to
promoting offerings as per
the needs of customers or
according to the nation.
Company always stay classic and
innovative in their marketing ideas
when they have to promote the
product in market. Nestle uses its
own tune at the end of their each
advertisement that has supports the
company in making good customer
base through out the world. Strong
presence of Maggi and Nescafe have
also provide too much assistance to
the managers in making good
customer base. Nestle also uses
various promotional tools like TV,
Hordings, Online advertisements etc.
for promoting the products. Company
is also active on social media
platform which is used for promoting
offerings.

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Factors Cadbury Nestle
Physical
evidence
For making better
physical evidence
Cadbury have
adopted little pinkish
and violet colour.
Through the colour
and logo of product,
customers can easily
identify the offerings
of Cadbury.
Company also uses
different packaging
in festive seasons so
that large number of
customers get
attracted towards
offerings.
While, Nestle is also using
unique combination of colours
in packaging of products.
Nestle also uses unique logo of
unbalanced heart shape in their
offerings so that customers can
easily identify the offerings of
firm. Outlets of Nestle are fully
air conditioned so that
customers feels fresh at the time
of entrance in outlets.
Management also believes in
creating healthy working
environment so as to removing
harmful diseases or infections
from the workplace.

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Factors Cadbury Nestle
People Company have employed around
70000 employees who are
working in their stores. They are
also efficient and posses
effective skills and knowledge
due to which they are serving the
needs of customers in best
manner. Management of
Cadbury also Provide training to
their employees on regular basis
so that brand image of firm
would be maintained in front of
customers. Employees of
Cadbury have also effective
communication skills through
which they assists the customers
in deciding best product as per
their needs and wants.
Whereas, there are around
30000 employees are working
in Nestle who are providing
their better contributions for
achievement of desired goals of
firm. Employees of nestle are
highly equipped with
leadership and management
skills due to which they have
ability to handle critical
situations in easy manner.
Management of Nestle also
provide training to them on a
specific interval so that they
can improve their personal as
well as professional
development.

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Factors Cadbury Nestle
Process Company is using effective
production process which
manufactures quality based
products for customers.
Distribution and supply
chain system of Cadbury is
very strong that maintains
brand image of company in
front of its customers.
Cadbury also uses lean
management and inventory
management system for
managing or monitoring the
production process or stocks
so that products would be
delivered on time to the
customers.
As Nestle is operating its
functions at large level then
company follows FMCG channel
for distributing of offerings.
Products or services of Nestle are
directly supplied to the retailers or
wholesalers by warehouses of
firm. Company also offers
discount to distributors who
purchase products in bulk.
Company also uses inventory
management for managing or
handling stocks in warehouses so
that products can be provided as
per the demand of customers.

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Tactics used by Burberry
Cadbury is operating its business operations at global level and having a
strong presence in market thus they have adopted various tactics for
achieving desired goals or objectives. Such tactics involves
segmentation of market so that needs and wants of loyal customers
would be satisfied in easy manner. Process of Market segmentation of
Cadbury is given as below:
 Identifying the targetted customers who prefers to buy products of
company for e.g. youths who mainly prefers to buy chocolate or
confectionery products.

Marketing plan
Marketing plan can be defined as a document in which list of actions are
included that should be performed by company in future. In addition, it is a
blue print which guides the managers of firm for executing the functions so
that desired objectives can be achieved in a specific time-frame. Marketing
plan of Cadbury is given as follows on further slides:

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Overview of organisation
Cadbury is a Multinational corporation which is engaged in food and
beverage sector and provide its services across the world. Organisation was
established in 1824 at England by John Cadbury. There are approx. 70000
employees who are providing their services across 50 nations in the world.
Management of Cadbury is planning for introducing New sugar free
chocolates which will be manufactured through organic raw Cocoa. Main
reason behind introducing of this kind of product is to satisfying the needs of
health conscious customers.

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SWOT analysis
Strength Weakness
 Cadbury is operating its functions
across the world from a long period
of time. Firm has also maintained
strong distribution system which
consists of whole-seller, retailer etc.
company have also a huge product
portfolio that consists of chocolate,
shakes, confectionery products etc.
 Company has a good presence in
more than 50 nations due to which
they have build a good customer
base across the world.
 The main competitors of
Cadbury are Nestle, Mars,
Hersheys which can harm the
sales figures of firm at the time
of launching new product in
market.
 Company has captured a lower
market share than its
competitors due to which
revenue figures are also low as
compared to their rivals.

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Opportunities Threats
 Cadbury is merging with
several other organisations
for improving demand of
their products as well as to
enhance the market share
through expanding business
operations.
 Company is mainly focuses
on marketing and advertising
in order to gaining more
profit or success as the
customers are attracting
towards sugar free chocolates.
 Milky bar and Bar-one of
Nestle are healthy
chocolate products which
can become threat for New
sugar free chocolate of
Cadbury.
 Low cost offerings of
rivals can become threat
for the sales figures of new
sugar free chocolate
product.

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PEST of Burberry
Political factor: Cadbury is operating its functions in various nations whose
rules and regulations of government are also different. That can provide
difficulty towards the firm to understand rules and regulations and can
influence the profitability or productivity.
Economical factor: It includes fluctuations in the growth of economy that
directly makes huge impact on purchasing power of customers.

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Social factor: It includes social and cultural elements that impacts directly on
the taste and buying behaviour of customers. In UK, citizens are more health
conscious and prefers to buy healthy and hygiene product which can brings
profitable outcomes for Cadbury in launching of new sugar free chocolate.
Technological factor: The huge sustainability for new product launched by
Cadbury can be achieved only if managers have appropriate knowledge
regarding usage of advanced technology for promoting products into market.
For e.g., use of digital platform like TV advertisements, Social Media can
make positive attraction of new product in the mindset of customers.

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Marketing objectives
At the time of launching new product in market, firm has to develop some
objectives that can be accomplished through using of new products. Company
have decided to form SMART objectives for launching new sugar free
chocolates which are given as below:
Specific: Specific objective of Cadbury behind launching new sugar free
chocolate is to increasing customer base so that good sustainability can be
achieved in competitive market.
Measurable: Management has expected around 10% increment in present
customer base.

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Segmentation, Targetting and Positioning
Segmentation: It is the process of segmenting the market as per the taste
and preferences of customers. For e.g., segmentation of customers on the
basis of gender and consumption can provide favourable outcomes to the
management. As Cadbury is launching new sugar free chocolate in UK then
they can use demographic segmentation through which they will easily
targetted their customers on the basis of age, religion, gender, income etc.
Targeting: In it, managers of firm have to select a particular group of
customer from whole marketplace. Cadbury is introducing new sugar free
chocolate in market then the targetted customers of firm are health conscious
and diabetic people.

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Marketing mix
Marketing mix is a technique which is used by firms in order to evaluating
market situations for introducing new products. Marketing mix for new
sugar free chocolates of Cadbury are given as below:
 Product - New sugar free chocolates are manufactured by company for
positively affecting the customers in terms of health. These sugar free
chocolates helps the customers in reducing their high blood pressure,
cholesterol and risk of heart problems.

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Price - Price skimming strategy is decided by management of Cadbury for
launching new product. In it, product is introduced in market at lower
prices then increment in prices will be done as per the market share. Also
chocolate is affordable for middle and upper class individuals.
Place - New sugar free chocolate will be provided at those places where
demand of this product are high and provided to the customers who are
living in various parts of UK like Briston, Manchester, Bristol etc.
Promotion- Management of firm have decided that they will use social
media platforms or offline advertisements for promoting new sugar free
chocolates because these methods are less expensive and covers large area
of market in a small time period.

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Process- Cadbury should use updated machinery in production of new
sugar free chocolates. Apart from that, company should also process raw
cocoa from updated equipments for ensuring the quality. Distribution
chain of Company is also strong due to which they can easily deliver the
product in market on time.
Physical evidence- For making physical evidence of new sugar free
chocolate management of Cadbury have decided to adopt bluish and
pinkish colour in its packaging so as to making its attractiveness across
the nation.
People - Employees who are engaged in production of new sugar free
chocolate should be highly skilled or talented so that machinery for
producing product can be used in effective manner.

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Implementation plan for the promotional launch
There are numerous promotional functions are available which can be used
by Cadbury for attracting the targetted customers. These functions consists
social media channels, TV advertisements, Celebrity endorsement, campaigns
etc. that are less expensive in nature and covers more area. Management of
Cadbury have decided an amount of 120000 pound for introducing new sugar
free chocolate in UK and for it they have also formulated Budget for carrying
out several activities in effective manner.

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Budget is given below:
Particulars
Amount (£)
Advertising on TV 12000
In social Media Platforms 40000
On newspapers 18000
Sales Promotion 50000

From the above presentation, it has been summarised that
Marketing department is very essential for a firm in order to
achieving high market share and profitability. Marketing plan is
also very useful for organisation in execution of several
marketing activities in order to promoting products and services
of firm. Marketing mix is useful for companies for determining
various aspects associated with marketing of new product.
CONCLUSION

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.
Berkowitz, E. N., 2016. Essentials of health care marketing.
Jones & Bartlett Publishers.
REFERENCES

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