This essay analyzes Cadbury's marketing strategies, covering key aspects like marketing functions, marketing environment, interrelationship with other functional units, and a comparison of its marketing mix with Nestle. It also discusses various marketing tactics employed by Cadbury to maintain its competitive edge in the confectionery industry.
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MARKETING ESSENTIALS
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Table of Contents INTRODUCTION...........................................................................................................................1 TASK 1............................................................................................................................................1 PART A...........................................................................................................................................1 a) Roles and responsibilities of the marketing function relate to the organisational context.1 b) Roles and responsibilities of the marketing in relation to organisational context.............2 c) Roles and responsibilities of the marketing in context of marketing environment..........3 d) Significance of interrelationship of marketing and other functional units of organisation4 e) Evaluation and analysis of key elements of marketing function and its relationship with other functional units of an organisation................................................................................5 PART B............................................................................................................................................6 a) Comparison of Marketing Mix...........................................................................................6 b) Different tactics applied by organisation..........................................................................9 TASK 2..........................................................................................................................................10 1) Basic Marketing plan.......................................................................................................10 2) Evidence-based marketing plan.......................................................................................10 3) Strategic marketing plan..................................................................................................10 CONCLUSION-............................................................................................................................10 REFERENCES-.............................................................................................................................12
INTRODUCTION Marketing refers to all the activities that are performed by an organisation to sell the product or service to customers. It includes advertising, promotion and selling product to customers.Cadburyis a British multinational confectionery company which is wholly owned by Mondelez International. It's headquarter is in Uxbridge, West London, it operations are in more than 50 countries. Main products of the company are, Dairy Milk chocolate, Roses selection box etc. It was established in Birmingham, England in 1824 by John Cadbury.The Report will emphasize on role and responsibilities of marketing functions, interrelationship between marketing and other functional units. It also highlights role and responsibilities of marketing in relation to marketing environment. TASK 1 PART A a) Roles and responsibilities of the marketing function relate to theorganisational context. Different marketing functions of an organization are as follows- ï‚·Market Research-Firstly to identify the needs and demands of customers company performs market research through SWOT and PESTLE analysis. Then, it will segment the whole market into different homogeneous groups of customers which are having similar needs and wants. After segmentation, the company will target a niche segment to develop and market the product in targeted segment to fulfil their demands. Company uses different techniques of performing research like, through questionnaire, checklist and survey etc. ï‚·Branding-It is defined as a promise of company to provide satisfaction to customers. It says that, a good branding helps to improve the reputation of company. The products of Cadbury are well known and loved by all. It is the second largest confectionery brand in the world. It operates in more than 50 countries and sell its products worldwide. Main reason behing company's success is its diversified range of products like, Cadbury Dairy Milk, Wispa Egg Etc. Cadbury brand is famous for its well known, high quality products. Company uses its resources to create a well known brand so that, it can take competitive advantage over other competitors (Avraham, 2016.). ï‚·Communication and Advertisement: Cadbury uses different types of medium to advertise and communicate the benefits of products to targeted consumers. Through 1
advertisements, company aims at widening their product consumption among different age groups. So that, product will reach to wide geograp[hic location. Company advertises the product through newspaper, T.V., magazines etc. The ads reflects that, products are available at various locations and eaten by people of different agev groups. ï‚·Distribution Channel-Cadbury brands are available at multiple locations across the world. It has many outlets. With advancement of technology and increase in competition, it is important fora company to use such distribution channel through which company can reach lot of consumers. Company's channel of distribution includes, manufacturing the products then, store it in warehouses where the production takes place. Then products reaches wholesalers after that, retailers like, Sainsburysell to ultimate consumers (Bruice, 2016). b) Roles and responsibilities of the marketing in relation to organisational context Marketing plays an important role in promoting mission of the company. Marketing plays different roles in organisation. Such as, Marketing defines the products of company to their customers. Marketing helps to identify the product and services during the course of sales cycle of the company by creating awareness through communication material and publicity . Employees of the company helps in creating content for the website of company so that, people go to website and find out information regarding products of company. Employees plays an importantroleinmonitoringandmanagingsocialmediaforcreatingawarenessamong consumers regarding the products. Firstly, employees of company must know about values, goals of business then only employee will make efforts to achieve the gpoals through marketing of products. Ex. Marketing of Cadbury products through intranet and newsletter etc. Research and development staff helps the company in conducting consumer and market research so that, company can identify the needs of consumers and opportunities available in the market and how consumers will perceive the value of products. Employees of marketing department are responsible for selecting and communicating with outside vendors and agencies who will produce marketing support by providing information regarding consumer taste (Cockayne, 2016). They are also responsible to guide the executives in responding to media queries. Staff of Marketing department plays an important role in knowing the position of company in the market and to monitor the competition so that, company can develop marketing plan . 2
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It also helps to coordinate the marketing efforts of various marketing partners like, journalist, consultants etc. And efforts of all these partners are aligned with the objectives of the company. Marketingdepartmentmakecontinuouseffortsinbringingnewpromotions,marketing programmes, customer retention techniques etc. A company is a chain of peoples who are working towards achieving a common goal of the organisation. Thus, marketing department must ensures that, their actions are aligned with overall objectives of the company. It is responsible for preparing strategic plans for the company (Coussement, 2017.). c) Roles and responsibilities of the marketing in context of marketing environment Various roles and responsibilities of marketing in relation to marketing environment are as follows- DEMOGRAPHIC FACTORS- Cadbury considers the demographic factors of consumers before preparing marketing plan for differenttargetedsegments.Like,age,educationqualification,tasteandpreferencesof consumers. Before advertising the products, company focus on the psychology of consumers that is,buying behaviour , how they feel, think, how consumers are influenced by environment. Like, culture, family etc. POLITICAL FACTORS- Liberalisation policy of World Trade Organisation has allowed the entry of companies of other countries. This has affect the sales of Cadbury products. This affects the market share of Cadbury (Marketing Environment,2016). Changes in government policies has allowed the foreign companies in UK Chocolate market which is givingcompetition to Cadbury. And to get competitive advantage, company is promoting itsproducts through marketing. The Food Safety and Standard Bill, 2005 gives power to Inspecting Officer to seize food articles if they are harmful for consumers. Company is creating awareness through marketing that, it is following the requirements of Bill (Eneizan, 2016.). SOCIO CULTURAL FACTORS- Cadbury is always remain responsive towards change in the demands of consumers. Company also responded to change in consumer taste and preferences through Marketing Campaigns to reintroduce Chocolate Bars like,Wispa. Due to growing concern of consumers regarding health, company has also started to manufacture smaller bars. Company is also tryingto reduce the level of sugar in the products. In this way, company is responding to its consumers. 3
TECHNOLOGICAL FACTORS-Cadbury uses social media like, Facebookto connect with customers . This helps in improving relationship of company with their consumers. Company also uses various apps based on gameplay to involve their consumers in activities like, crème egg game etc. ENVIRONMENTAL FACTORS- There are certain environmental issues for Cadbury like amount of packaging the company is using in its products, carbon footprint created by supply chain including distribution and manufacturing. Through marketing, company is supporting the farmers who are growing cocoa beans to ensure that production is carried out sustainably. d) Significance of interrelationship of marketing and other functional units of organisation Marketing interrelationship with Human Resource- As Cadbury has divided its market in different segments, it requires qualified employees to implement different marketing strategies made by the unit. HR would help it by recruiting and selecting desired employees and by considering skills required by the company. HR scopes out the job, person profile, and job description according to their requirements of marketing unit and thus help in generating desired type of employees by the marketing unit (Kaur, 2015). Marketing interrelationship with Operational Unit-Cadbury has maintained its effective distributionofproductsindifferentmarkets.InshortCadburyprovidesitsproductson continuous basis through its quick distribution channels. To maintain this chain, it requires efficient and optimum productivity from the operational unit. Thus, there is a direct relationship between the marketing and operational unit, as for more supply and distribution there should be sufficient units produced which is fulfilled by operational unit. Marketing interrelationship with Finance Unit-To supply, promote and distribute variety of products, Cadbury marketing unit has to be close with finance unit as there is a requirement of adequate budget to meet these needs of promotion and distribution. Cadbury marketing unit creates different strategies to grow and expand their business. Finance department let them know the exact allocation of funds, return of investment, profit margin as according to their analysis. 4
Marketing interrelationship with ResearchAnd Development Unit-Cadbury market unit continuously stays in touch with research and development functional unit, as marketers study the entire market policies and the needs and requirement of customers and their satisfaction. The researchers develop and innovates various products as per the requirement and needs of customers and on the analysis of information produced by marketing unit. Also, Cadbury has variety of market segments according to geography, demographics and interests of consumers, so it is important role of a researcher to analyse whether the product will be sold in a particular market. e) Evaluation and analysis of key elements of marketing function and its relationship with other functional units of an organisation Marketing interrelationship with Human Resource-Marketing unit always have positive relationship with HR is they get skilled employees from HR and their requirement is also fulfilled. HR helps the marketing department by making job profiles and job description of required employees by the marketing unit and accordingly recruit them in organization. But it falls on negative side also, as if employee is not that efficient as being required, which will not clear the way for Cadbury to increase its sales volume. Also, employees regularity is not based on its skills and efficiency, an irregular employee can create break-fall in functioning and achieving targets for sales and affect the marketing unit. Its difficult that H.R. recruits employees which will be able to perform every task and meet all the needs of marketing unit (Key, 2017). Marketing interrelationship with Operational Unit-Marketing and operation has direct relationship with each other, as marketing unit can increase sales only when there is timely production and supply from operations department. So it is necessary that there is strong coordination between both the units for growth of Cadbury and achieving its objectives. This serves to negative side as well, as market is not constant and depended on the needs and demand of customers so if there is sudden fall in demand, it will lead to overproduction and create a load on warehousing process. In the other end if there is an excess demand in market which will 5
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create huge workload on operations' department and if production is not efficient, there will be shortage of supply. Marketing interrelationship with Finance Unit- Finance department plays important role as the department allocates adequate budget to marketing unit and also decide the price and cost of products so that it could be sold with greater volume and gain maximum profit for Cadbury. But finance department also restricts the functioning of marketing unit through various means as by notprovidingsufficientbudget,notprovidingadequatefinancialresourcestoperform advertisement and promotional activities. Marketing interrelationship with Research And Development Unit-Research unit provides the entire market information containing needs of customers and advices the marketing unit, exactly what need to be done as to increase the volume of sales of Cadbury. But sometimes it is difficult to depend on the analysis of researchers as market is not constant and also customer needs cannot be satisfied wholly. So a slight misrepresentation of analysis by researchers can affect marketing unit and also Cadbury functioning. PART B a) Comparison of Marketing Mix Figure1Marketing mix of Cadbury Source: (Marketing Mix,2019) Key elementsCadburyNestle 6
ProductTheproductsegmentof Cadbury is large and classified intolargestandardof products. Huge list of Cadbury comprise Cadbury Dairy Milk, Fivestar,BournVita,Oreo, Caramel, Fruit and Nut, etc. Theseproductsmadelarge impact on market and helped thefirmincontinuous growing in the market. Nestlehaswiderangeof product, it covers 8000 brands ofproductinthemarket. Nestlefocusondairy products,chocolate,cook foodsandbeverageto enlarging the market. PriceCadbury focuses on Skimming pricing strategy because of the beliefsthatGreatquality comes with price. Price is based on quality of product.Nestlealsofocuses on Skimming pricing but the pricing of products by firm is doneonthebasisof competitors.Thefirmsets pricehigherthanits competitors PlaceDistributionchannelof Cadbury is very large almost 200countriesormoreare involvedindistribution channel of products. Cadbury make sure that their product willreachinallruraland urban area of country. Nestle follow FMCG method ofdistributionofchannel. They distribute their products from distributor and retailers. PromotionCadburyincorporatesuseof different promoting strategies of the products through radio, television, newspaper, etc. tag Nestle always focus on unique advertising and create somemeaningfullineson advertisement.Iteffectsthe 7
line of Cadbury is attractive and influence the customer to buy more and more. customer to buy the product in largeamount.Thefirm advertisesthroughsocial media,magazinepromotion, etc. ProcessCadburydistributetheir productinworldatlarge number of products. Further, the chocolate making process offirmisbasicforwhere sugar is added to condensed milk and Cocoa mass to make creamychocolateliquid (McDonald, 2016). Nestle distribute their product to distributors and distributors give products to retailers for easy availability of product in marketforcustomer’s.In addition, the firm focuses on labellingofingredientsto ensurequalityofproducts supplied. PeopleCadburyfocusonthe employee's needs and provide trainingforbetterworkor production.So,that employees are trained to do work effectively and provide service as per the need. Nestleiscustomer-oriented process which is focus on the tasteandpreferencesofthe customer. For these customers will be happy and buy more product of nestle. Physical evidence Packaging of product should be clean and hygiene as per the require of customer. Qualityandquantityof product have to affective and fulfil the needs of customer. It should be examining by the operator of firm that help them to solve issues at right time. 8
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b) Different tactics applied by organisation. Product Strategy-Competition in industry is increasing and to remain competitive, company has to introduce new innovative products. Company uses different tactics to remain competitive in the market like, Cadbury is combining products .Ex. Popping candy and jelly beans. Another wayistochangetheshapeofDairyMilkBar.CadburyUKLimited(CIL)products includes,Dairy Milk, Bytes, and Gems.These are the largest selling brands in its portfolio. Cadbury's Dairy Milk is having a market share of 30% and its average daily sales is 1 million bars. Company has also introduced 'Cadbury Celebrations' in which it provides Cadbury Celebration packs for different festivals (Pappas, 2017). Pricing Strategy-Cadbury considers different factors while determining the price of chocolate bars. Like, whether a consumer will buy the product, and level of sales to be achieved by the company etc. Company uses Skimming pricing strategy for its existing products. Ex. Cadbury Silk. So that, in the initial stage of introducing new product, company can generate substantial profits. When competition in market tends to increase, Cadbury lowers the price of product. Company uses this strategy because of various benefits like, to generate high profit margin. It helps the company to recover the cost of developing the product when market niche is small. Marketing Strategy-Cadbury UK Limited always looks for attractive and growing market. And it believes in building entry barriers for new entrants in the market though its marketing strategy. So that, company can earn better returns ion its investment and to create m,monopoly in the market. Company uses market penetration strategy in which, it focuses on selling existing products in existing market. So that, it can increase the market share of existing products. Ex. Introducing chocolates in corporate gifting segment with variety of gift- packaging and customization in branding of chocolates (Brychkov, 2017). Place Strategy--Cadbury hasvarious manufacturing locationsatPune, Gwalior etc. Its distribution network reaches to 6 lakhs outlets for each of the chocolate brands. Company distributes its products directly, means products are sold directly to retailers. Cadbury also uses Information Technology to improve distribution logistics. It also attempts to improve distribution quality. To solve the problems of product stability it has installed VISI coolers at different outlets (Uncles, 2018). 9
Distribution Strategy-- Different brands of Cadbury are available at million of outlets across the country.Company focuses on achieving equity in product distribution. With increase in speed of technology advancement and competition in market, it has become difficult for the company to retain product differentiation for a long period of time. To take the advantage of opportunities, distribution channel of company starts with manufacturing the product then, store it in warehouses where chocolate production has takes place. Then product is sold to wholesaler then to retailers. People Strategy--Cadbury UK has a strong brand as an employer in the mind of employees. Company believes in promoting equality and culture diversity among its staff. Employee's of company helps in creating a brand that people love and they achieve this through team work. Company also introduced the 'Purple Star' program to induce fresh talent in the organization. Organization lay focus on Succession Planning of employees. So that, they help the company in achieving its organizational objectives (Loo,2018). TASK 2 1) Basic Marketing plan (Covered in ppt) 2) Evidence-based marketing plan (Covered in ppt) 3) Strategic marketing plan (Covered in ppt) CONCLUSION- From the above study it is summarised the study of various roles and responsibilities of marketing functions such as Branding, market research, distribution channel etc., that affect the business of company. It also includes how market planning which consists of mission, vision and objective, is necessary for the growth of business. It also considers marketing strategy such as price strategy and product strategy. Further it is noted about the interrelationships of marketing 10
unit with other functional units such as H.R., Operations, Finance and research and development unit.Lastlyitfocussedonevaluatingmarketingfunctionwithotherfunctionalunitsin organization. 11
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REFERENCES- Books and journals Avraham, E. and Ketter, E., 2016.Tourism marketing for developing countries: Battling Stereotypes and Crises in Asia, Africa and the Middle East. Springer. Bruice, P.Y., 2016.Essential organic chemistry. Brychkov, D. and Domegan, C., 2017. Social marketing and systems science: past, present and future.Journal of Social Marketing. 7(1). pp.74-93. Cockayne,D.,2016.RedefiningB2Brelationshipmarketing:insightfrompostmodern Alibaba.Journal of Customer Behaviour.15(1). pp.49-66. Coussement, K. and Demoulin, N., 2017.Marketing research with SAS enterprise guide. Routledge. Eneizan, B.M., Abd-Wahab, K. and Obaid, T.F., 2016. Effects of green marketing strategy on the financial and non-financial performance of firms: A conceptual paper.Oman Chapter of Arabian Journal of Business and Management Review.34(3796). pp.1-14. Kaur, J. and Sharma, S.K., 2015. Internal marketing: Scale development and validation. Vision.19(3). pp.236-247. Key, T.M., 2017. Domains of digital marketing channels in the sharing economy.Journal of Marketing Channels.24(1-2). pp.27-38. Loo, P.T. and Leung, R., 2018. A service failure framework of hotels in Taiwan: Adaptation of 7Ps marketing mix elements. Journal of Vacation Marketing. 24(1).pp.79-100 McDonald, M.A.L.C.O.L.M., 2016. Strategic marketing planning: theory and practice. InThe marketing book(pp. 108-142). Pappas, N., 2017. Effect of marketing activities, benefits, risks, confusion due to over-choice, price, quality and consumer trust on online tourism purchasing.Journal of Marketing Communications. 23(2).pp.195-218. Uncles, M.D., 2018. Directions in higher education: A marketing perspective.Australasian Marketing Journal (AMJ).26(2).pp.187-193. . 12