This document discusses the roles and responsibilities of a marketing manager in the context of Cadbury. It also explores the inter-relationship of marketing function with other functions of Cadbury and their influence. Additionally, it highlights the value and importance of marketing role in the context of Cadbury.
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MARKETING ESSENTIALS
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CONTENTS INTRODUCTION.....................................................................................................................................1 Roles and responsibilities of marketing manager in the context of Cadbury.....................................1 Inter-relationship of marketing function with other functions of Cadbury and their influence........2 Value and importance of marketing role in the context of Cadbury.................................................3 Conclusion.........................................................................................................................................3 Comparing the ways Cadbury applies its marketing mix to marketing planning process for achieving the business objectives......................................................................................................4 Conclusion.........................................................................................................................................6 Basic marketing plan for Cadbury......................................................................................................6 Executive summary............................................................................................................................6 PESTEL analysis (External environment)............................................................................................7 Competitive analysis (Porterās five force)..........................................................................................8 SWOT analysis (Internal environment)..............................................................................................8 Marketing objectives.........................................................................................................................9 Marketing strategies..........................................................................................................................9 STP.....................................................................................................................................................9 Market control.................................................................................................................................10 CONCLUSION.......................................................................................................................................10 REFERENCES........................................................................................................................................11
INTRODUCTION Marketing is the quite essential for almost every organization in this competitive and modernbusinessenvironment.Itgenerallyincludesdevelopingprofitablerelations, understanding of the market place, providing quality, customer driven marketing strategy and demands of the customers. Consequently, the current research report is also focused towards detailed marketing analysis of the business organization. Cadbury is being taken as a case company for the current report. It was founded in the year 1831 at Birmingham. The firm employs more than 45000 employees in almost 60 nations of the world (The Cadbury story, 2018). They have positioned strategically as the 4thhighest supplier of chocolates and sugar confectionery all throughout the world. As a Marketing Manager of Cadbury, the main aim is to explain the role and responsibilities of marketing function and their inter-relationship with other functions of the business. Further, ways in which the marketing mix is being applied in the company will be evaluated. Finally, basic marketing plan will be developed and analysed for Cadbury. Roles and responsibilities of marketingmanager in the context of Cadbury Marketing is a set process that helps the company in diffusing their products to the final users as per American Marketing Association (AMA). It is concerned with the product distribution activity and rejects market segmentation and market research (Elliott, Waller and Rundle-Thiele,2014). Modificationsare regularly done by AMAin the definitionof marketing because of dynamic market conditions and global upcoming trends. In this present era, customers are king and when it is related with the retail business, they become quite important. Patrons are pleased by the companies instead of just selling them the products and services. The success of Cadbury was also dependent on the strategies, tactics and procedures being used by them. The main of the firm is to offer quality products and services to their valuable customers which is stylish, accessible, and innovative and money value. Marketing function in Cadbury is defined as the role which is being performed by the firm to identify and source potential product for the market and for promoting the same (Solis, 2011). The mainrolesandresponsibilitiesofmarketingmanagerinCadburyarebeingdefined underneath: Roles of Marketing Manager ļ·Determining the potential marketsā The marketing manager is required to increase the demand of the products in the market and must determine the potential market as well. Further, his main role is to establish relations with the existing market. 1
ļ·Launching new products and servicesā The main role is to attract new customers and retain the old patrons of Cadbury. He basically studies the needs and demands of the market and accordingly launches new products to satisfy the needs of the target market Zarantonello and Luomala, 2011). ļ·Evaluating the productā The preferences of the customerās changes with time in this technological arena and therefore, it is essential to analyse all these changes and products periodically so that required modifications in the product can be done effectively. ļ·Creating a marketing planā As per the marketing nature of the Cadbury, the manager develops an action plan so to identify when, by whom and where the marketing activities such as sales forecasting, promotion, distribution, advertisement etc. should be carried out so as to attain the final goals and objectives (Doole and et.al, 2016). Responsibilities of Marketing Manager The marketing managers is being defined as a responsible authority for the fulfilment of the goals and objectives of Cadbury. The main responsibility of the manager are as follows: ļ·Accumulating the results of market research and controlling the quality as well as quantity of production ļ·Arranging after sales service and removing the problems of consumers ļ·Coordinating different activities of employees ļ·Product planning, price fixation and sales forecasting (Ellwood, 2002) ļ·Educating customers about alternative use of the products and services ļ·Development of road map of advertisement and promotion ļ·Controlling the credit policy of Cadbury Inter-relationship of marketing function with other functions ofCadbury and their influence Marketing function and other function of Cadbury are inter-related with each other. There are numerous functions that needs to be undertaken by the firm and every individual function is grouped into varied department so that efficiency and effectiveness can be attained. Each and every function such as human resource, production, operations and finance have their own direction of performing the tasks (Sager, 2012). However, the activities of every function is directed towards accomplishing the common objectives. As discussed above, marketing function is being needed in Cadbury for backing up other operational department as well as to undertaken all the activities effectively. for instance, if the firm 2
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wants to launch new product and services in the market and want to develop a marketing plan than will require support from financial department as well to pass the budget. The need and support of human resource department is worth noting as they will train the employees in respect of the new product and services (Roy and Andrew, 2003). Other than this, if the marketing team of Cadbury wants to offer discount on bulk purchase of the products through varied schemes than they need to communicate and have interaction with the finance as well as production department of the company at the initial level. Marketing function and all other function are separate entities in business but they are inter-connected with one other. The main function of marketing is to increase the revenue of Cadbury by augmenting the sales. This can be turned into reality only when all other department of the firm actively participate in the same (Appleton, McKeownand Woodside, 2011). The finance department is required to offer appropriate budget to marketing department. Moreover, logistics department should be consulted for meeting out the demand and supply of products and services. Thus, marketing departments do have inter-relationship with other department of Cadbury. Value and importance of marketing role in the context of Cadbury The role of marketing is very valuable and important in Cadbury, as it helps in transferring, movement and exchange of good and services. Marketing is quite complex mechanism within Cadbury which encompasses numerous people in one form or the other. The main function of marketing in the company are purchasing, selling, warehousing, transporting, risk bearing as well as standardization. In each and every function, activities are being carried out by different individuals. Consequently, marketing offers employment to numerous people. Another role being performed by marketing is creating customer needs insteadofdeterminingcustomerneeds(Chand,2018).Inreality,itbeginswith comprehending the potential clients and then creates the need of the customers. Finally, marketing function is all vital in the context of Cadbury as it is the only way by which revenue can be generated or increased. Conclusion Therefore, it can be said that all the functional units of Cadbury are correlated with each other and helps in achieving growth and success. The company is paying more attention towards offering products to the customers that adds value to them and other stakeholders and thus, they are shifting their focus in regards with better marketing activities. 3
Comparing the ways Cadbury applies its marketing mix to marketing planning process for achieving the business objectives In order to attain the objectives and goals of the firm, marketing mix is being applied to the marketing planning process. Firms adopts different methods so as to apply marketing mix amid their firms (Borden, 2011). This is generally done on the basis of demographics of market, size of the company, market and products and service of the firm. Cadbury is a multi- national firm and with customer focussed efforts, they have created a big impression both in the international as well as national market. They achieved this success mainly because of the extended marketing mix and customer centric approach being adopted by them. In addition to this, the application of marketing mix with the marketing planning process is majorly focussed towards place of selling the products, promotional activities, product dimension and pricing structure. But, the extended marketing mix utilizes the importance of providing physical evidence as well as process of delivery to the customers and people (Changchien and Lin, 2013). Marketing mix elementsCadburyHersheyās Product Alltheproductsofthe companyarebeingdesigned andmanufacturedfor improvingtheexperienceof thecustomers.Numerous products are being offered by thefirmsuchasbeverage, candy,Chocolatesetc.They alwaysmakesurethattheir product reaches the market at therighttimeandplace (Enache, 2011). It is a popular brand that provides sweetsauces,chocolatesand syrups.Rangeofproductsare availableinvariedshapesand sizes. They continuously innovate theirproductswhichhashelped them in achieving growth through the years. Price Pricing is being regarded as the most critical component of the marketing mix and it includes catalog prices, offers, discounts anddistinctivechoicesof It is a premium brand and thus, the firmchargeshigherpricesin comparison with the other standard chocolates present in the market. 4
financing.Cadburysetstheir prices after analysing the prices of the competitors. Place Talking in reference with the distribution of Cadbury, it is fantastic as well as widespread. They are present in more than 200 nations of the world and theproductsaredistributed through varied channels such asC&Fagent,Distributors, Retailers and Consumers. The company has its present all throughout the world in the form of grocery stores, vending machines, wholesale clubs, gas stations, drug stores etc. They are also available on the online means such as Big basket. Amazon, eBay etc. Further, theyhavestrongdistribution network which covers all the major cities (Hershey's, 2018). Promotion Promotion of the firm for their each and every product is quite different.Formarketing, Cadbury makes use of ad and advancement as it is the best way of communication. They alsopromotethrough television,shoppercontract movement etc. The promotion of the products is beingdonebyMagazine, TelevisionandBillBoards.The mainmissionofHersheyisto produce delicious chocolates that is likedbyeveryone.Theyalso makeseffortstoposition themselves as a healthy product for the growing kids and toddlers. People People plays a very significant role in brand establishment as they are directly connected in therecognitionofitinthe market.Theytargetyoung people and children (Lee and et.al, 2016). The customers of the firm needs to beeducatedformanagingtheir expectations of the services. In this regards,itisvitaltotrainand motivate the staff members. So as tomaintainhighstandardof services. Process The record of all the processes is being kept by the company along with the services which aresupportiveforthe customers.Alltheprocesses The success of the service on the totalcustomerexperienceis generally based on the method of delivery.Asmoothprocessis adopted by Hershey for effective 5
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being used in the production of theproductsareadoptedin such a way that it minimizes thecostsandmaximizesthe profits. flow of operations and activities. Physical evidence Theyofferbrochures, pamphlets as a guidance to the customers about the products and keep a record of all the experiencerelatedtobuying behaviour of the customers. It is being defined as a measure of determining whether the customer has received a value or not. For example,alengthoftime consumerhastowait,way customer is being treated by the staffmembersetc.Theyalso contain paper packaging as well as internet pages websites that can be experienced by users (Guido and et.al, 2011). Conclusion Therefore, it can be said that marketing mix is being regarded as one of the most vital tool that helps the marketer as well as respective firms to understand their product. The marketing mix encompasses 4 Pās such as product, price, place as well as promotion. Later, three mix is further included which is popularly known as extended service marketing mix i.e. physical evidence, people and processes. All these elements of marketing mix needs to be planned effectively for attaining the pre-determined objectives of the organizations. Basic marketing plan for Cadbury Executive summary The present research study focusses on evaluating the marketing environment of Cadbury, which is quite popular and branded multi-national organization of UK. The firm has innovative ability to achieve competitive edge over the other firms in the market. In order to analyse the external marketing environment, it is vital to carry out PESTEL and Porterās five force analysis of Cadbury and for internal analysis, SWOT analysis will be performed significantly. 6
PESTEL analysis (External environment) Political ļ·Government of UK is establishing standards for manufacturing healthy products with clear labelling ļ·Initiating campaign to advertise healthier way of living among the citizens of UK ļ·Fat Tax being introduced by the government on food Economical ļ·Changing in the climatic conditions is affecting the yield of the crops and thus, influencing the prices as well as trade balance ļ·Economic crisis can influence the spending of the customers (Saltini and Akkerman, 2012) ļ·Because of low disposable income, people will spend less on premium and luxurious chocolates ļ·Cadbury is downsizing the bars of chocolates before increase in the rate of VAT Social ļ·Because of changing preferences and current social surrounding in UK, people are now preferring dark chocolates ļ·Due to economic down turn, people spend less and stay at home ļ·There is high demand of seasonal chocolates in every occasion Technological ļ·Due to rising technological advancement, Cadbury need to increase their research and development efforts (Bayne, 2012) ļ·Social media tools such as Facebook and Twitter is being used by the company for communicating with their customers ļ·Innovation in technology force the firm to change their packaging Environmental ļ·Change in the climate can influence the cocoa farms ļ·Decrement in the plant of cocoa because of plant disease ļ·Outburst of Ebola has adversely influenced the production of Cocoa Legal ļ·Cadbury is required to adhere by the Coca and Chocolate Products Regulations Act. ļ·All the members of CAOBISCO are required to follow the rules relating to food and safety being laid down by European Union ļ·Government of UK has also established penalties for the non- fulfilment of any type of labelling and description requirement (Davids and Newcomb, 2015). 7
Competitive analysis (Porterās five force) ļ·Threats from new entrantsā The confectionary market in UK is quite established and reputed. Further, it is very much controlled and influenced by major players such as Mars, Mondelez and Nestle. Cadbury is deemed to be an essential barrier for new entrant, as they have strong recognition in the market. ļ·Bargaining power of buyersā There are majorly two kinds of buyers of Cadbury i.e. Ultimate consumers and retailers. Further, players like, ASDA, TESCO, Morrisons, Sainsbury are forcing more power of negotiation than regular customers (Festa and et.al, 2016). ļ·Bargaining power of suppliersā This industry generally deals with the merchants of food ingredients and suppliers. Because of the partnership of Cadbury and Cocoa, the supplier power is kept quite low, as the funds are being invested in the cocoa farms. ļ·Competitive rivalryā There is high level aggression in competition can be seen in confectionary industry. Big players like Nestle, Ferrero, Mondelez and Mars are indeed very robust brands and giving competition to Cadbury (Cohen, 2013). ļ·Threats from substitute productsā The threat from the substitute is very less, as the brand equity is the key competitive edge of the firm. Last few decades have witnessed apprehension of healthy lifestyle and thus, there has been increase in the sales of the products such as sugar free, calorie bars etc. SWOT analysis (Internal environment) Strength ļ·Strong brand image, research and development and innovation in chocolates ļ·Successful marketing and promotion campaigns ļ·Wide range of products (Brooks, Heffner and Henderson, 2014) Weakness ļ·High price brand and thus, turning the price conscious people away ļ·Egg ingredient is making people avoid purchasing the products ļ·Lack of penetration in the rural market ļ·Problem in product recall Opportunities ļ·Potential for growth and a huge population who do not eat chocolate Threats ļ·Inflation can decrease the sales ļ·Health consciousness among the 8
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till now can be converted into new users ļ·Increasing reach in the rural markets ļ·Diversification of product range people ļ·Increasing cost of raw-materials Marketing objectives ļ·Biggest and best confectionery company in the world ļ·Organic revenue growth every year by 4 to 6 percent ļ·Growth in the market share by 2 percent every year ļ·Achieving 80 percent of consumer awareness within 12 months of launch Marketing strategies The company majorly focus on the strong brand image and thus, decisions in regards with the products are in line with the brand image. The products of Cadbury are high quality, innovative and contains nutritional value as well. Further, no artificial colorants and banned ingredients are being used. The products of the Cadbury are being targeted to different segments and thus, prices are marked differently. Bar chocolates are being offered at premium prices and special deals are also offered at the same selling prices (Marketing Plan of Cadbury, 2016). The pricing strategy is competitive. Other than this, the company is available at all distribution channels such as hyper market, super market, retail outlets, convenient stores etc. Finally, for promoting their products, the company makes use of their websites, campaigns, print media, radio and newspaper. STP Segmentation ļ·Geographicā Urban and sub-urban markets and other villages such as London, Glasgow, Cardiff, Manchester, Barnstable, Abingdon, Stamford and Sawston. ļ·Demographic āBy age, gender and income group ļ·Psychographicā Lifestyle, attitude and motives Targeting All locations all across the UK especially the urban market. Teenagers, childrenās and females is the main target market of Cadbury. Positioning 9
The company is targeting wider market and thus they have broader range. Youth segment is being positioned as love and entertainment. Teenagers and children are attracted by adventure aspiration and taste & small gifts. Market control Market control is the main element of marketing plan. At this stage, activities are being controlled through effective matching of marketing objectives with the results. All drafted activities are also considered with a view to have effective checking so that corrective actions can be undertaken timely (Hawkes, 2013). CONCLUSION Thus, it is concluded that it is vital for the firm to realize the importance of customer relationship and should put their efforts in delivering innovative approach in relation with the marketing strategy in business. 10
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Roy, C. and Andrew, G., 2003.The Emergence of Modern Marketing.London: Frank Cass. Sager, M., 2012. Chocolate and Cocoa Products as A Source of Essential Elements in Nutrition.Journal of Nutrition & Food Sciences, 2(1), pp.65-76. Saltini, R. and Akkerman, R., 2012. Testing improvements in the chocolate traceability system: Impact on product recalls and production efficiency.Food Control, 23(1), pp.221-226. Solis, B., 2011.Engage-The Complete Guide for Brands and Businesses to Build, Cultivate, and Measure Success in the New Web. John Wiley & Sons. Zarantonello, L. and Luomala, H., 2011. Dear Mr Chocolate.Qualitative Market Research: An International Journal, 14(1), pp.55-82. Online references Chand,S.,2018.7MajorImportanceofMarketing.[Online].Availablethrough: <http://www.yourarticlelibrary.com/marketing/7-major-importance-of-marketing- marketing-management/25857>. [Accessed on 4thNovember 2018]. Hershey's.2018.[Online].Availablethrough: <https://www.hersheys.com/en_us/home.html>.[Accessed on 4thNovember 2018]. MarketingPlanofCadbury.2016.[Online].Availablethrough: <http://marketingdawn.com/marketing-plan-of-cadbury/>. [Accessed on 4thNovember 2018]. The Cadbury story.2018. [Online]. Available through: <https://www.cadbury.co.za/the- story>. [Accessed on 4thNovember 2018]. 12