Marketing Essentials Case Study Assignment - Cadbury

MARKETING ESSENTIALS

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
1. Concepts of marketing........................................................................................................1
2. Overview of different marketing process:..........................................................................2
3. Role and responsibilities of marketing manager of Cadbury.............................................3
4. Marketing department with other functional departments of Cadbury..............................4
5. The value and importance of the marketing role in the context of Cadbury......................5
6. Significance of having effective interrelationships between different functional units.....5
7. Comparison of marketing mix elements between Cadbury and Nestle.............................6
8. Marketing Plan for new product launched by Cadbury....................................................10
CONCLUSION..............................................................................................................................14
REFERENCES..............................................................................................................................15

INTRODUCTION
Marketing essentials describes creating, promoting and delivering goods to customers.
Marketing concept is an idea that organisation analyse the needs of targeted customers and help
them satisfy their needs and achieve the desired goal and objective by increasing profitability and
productivity of the company. Marketing essentials of cadbury is discussed in this report. Cadbury
was established in Brimingham, England in 1824 by John Cadbury. Its legal name is Mondelez
Austrella pty ltd. It is known mainly for its chocolates and chocolate bar. It has more than 71,657
employees. Cadbury is growing rapidly and now is one of the leading business. This report will
include overview of marketing process and importance.
MAIN BODY
1. Concepts of marketing
Production concept: Cadbury aims at providing high quality products to the targeted
markets. It aims to produce products which are affordable by the customers. Further, it has also
increased the size of bar and improved taste of confectionery.
Selling concept: Cadbury focuses on aggressive selling programs and carry on various
campaigns and promotion activities to attract new customers and retain old customers.
Marketing concept: Cadbury aims at improving product quality of confectionery and
introducing new products in the market according to the needs and requirement of customer. It
focuses on building brand image of the company and attracting more customers by innovative
packaging and market positioning than its competitors (Baker 2016).
Product concept: Product concept is the understanding of the dynamics of the product in
order to showcase the best qualities and maximum features of the product. Cadbury involves
there lot of time in market research to reach their target audience.
Societal marketing concept: The societal marketing is a marketing concept that holds that
a company should make marketing decisions not only by considering consumers' wants, the
company's requirements, but also society's long-term interests.
Current and future market trends:
 Social media marketing
 Advertising
 Content marketing
 Word-of-mouth marketing
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 Audio visual marketing
 Hoardings and banners
 Artificial intelligence
 Virtual reality and augmented reality
 Chatbots
 Personal website
 Blogs
 Application for phone and tablets
Cadbury mainly focuses on social media marketing and advertisement on television,
hoardings, etc. to attract large number of customers worldwide. In future it aims at tapping
growth into dark chocolate and will target health conscious consumers by launching no added
sugar chocolate bar and lower calorie product. Cadbury is also working on development of
applications for phone and tablets (Baker 2016).
2. Overview of different marketing process:
SOSTAC MODEL for Cadbury:
 Situation analysis: Where are we now?
Cadbury is one of the second leading confectionery brand in the world after Mars. It focuses on
systematic marketing plan and achieving high level of operating efficiency and achieving goals
and targets of company. Cadbury has upgraded, improved and modernize production equipment
for efficient productivity.
 Objectives: Where do we want to be?
The main goal of the Cadbury is to be the world's best confectionery company in terms of quality
and profitability. Furthermore, they want to focus on cost reduction and improved technology for
increasing productivity, sales and growth of the company.
 Strategy: How do we get there?
It focuses on making a strategic plan to meet desired goal and objective of the company.
Cadbury aims at targeting market segment and customers which will increase volume in sales
and attract more customers.
 Tactics: Details of strategy.
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Cadbury uses various promotional and marketing strategy like social media marketing, e-
marketing, content marketing and by launching various campaigns, advertisement, hoardings and
banners, audio video marketing to attract more customers.
 Actions: Details of tactic plan.
Action plan segregates the responsibilities to be performed by each employee to achieve desired
goal and objective of the company.
 Control: How do we monitor performance?
Actual performance is measured with the action plan and evaluated whether the desired goal and
objectives are achieved or not. In case of any deviation in performance necessary step is taken by
the employee of the company to meet desired goal (Singh 2018).
3. Role and responsibilities of marketing manager of Cadbury
There are so many roles and responsibilities perform by marketing manager, some roles
and responsibilities are mentioned below -
CONDUCTING MARKETING RESEARCH – Cadbury marketing manager do
conduct marketing research to get information about Cadbury products, target customers,
markets, their competitors so that they can compete with others and maintain their position in the
marker as well as in industry too (Babin and Zikmund 2015).
PLANNING ABOUT EXPANSION - Cadbury company can expand their business
either by launching new Cadbury product or open their market to new place so that they can get
new customers and they can increase their market share and brand image.
FULFIL THE DEMAND – Cadbury are most popular in young customers whose
demands are constantly changing so fast catching on their demand and fulfil their ever changing
demand can increase the company's goodwill. For that marketing manager is responsible
(Sargeant and MACQUILLIN 2016).
MONITORING MARKET ENVIRONMENT – In today's era, nothing is constant,
everything keeps changing. In this changing environment, there are so many external factors
which keep affect the organisation adversely so it's marketing manager role to monitor the
external environment of organisation and give report to top level management of Cadbury
company (Tuten and Solomon 2017).
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EVALUATION OF PRODUCT – By evaluation of product they can get to know that the
products are viable or not, the products are good for customers or not, the products are beneficial
for company or not.
CREATE CUSTOMER RELATIONSHIPS – It's their role to create and maintain
customer relationships. Customers are final and most important for any organisation. If Cadbury
can satisfy the customer, Cadbury can go up. So marketing manager are the strong link between
Company and Customers (Järvinen and Taiminen 2016).
Marketing Mix Planning: Planning for making product price, place, promotion strategy
and introducing offers for the product will help to continue the long-lasting development goals.
this can help to continue the effective management goals for achieving the effective company
objectives. Marketing manager is responsible to fix all those functional goals for marketing mix
planning.
Market implementation: This is another function of marketing that should be performed
by the marketing manager. Besides, manager should need to implement the all plans or
marketing strategies to promote the product.
4. Marketing department with other functional departments of Cadbury
MARKETING DEPARTMENT WITH FINANCE DEPARTMENT - Finance
department majorly deals with the financial aspects of the company like increased shareholders,
funding, deal with profits and losses etc., while marketing department majorly deals with
advertising, marketing, sale promotions, etc. which helps to earn sales and through which profit
is earned. So for beneficial for the Cadbury, there should be close link between marketing and
finance department.
MARKETING DEPARTMENT WITH HUMAN RESOURCES DEPARTMENT-
Marketing department work for increasing sales of products, when it fulfilled organization needs
more employees for production or need training and development for new employees and Human
resource department deals with identify the need of employees and fulfils it by recruitment and
selection for the organisation.
MARKETING DEPARTMENT WITH PRODUCTION DEPARTMENT- Production
Department deals with the making of those products which is demand-able and profitable for
Cadbury. Marketing department deals with the product promotions and monitor the demand of
customers. If there is any new demand in market, marketing department identify it and make a
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plan that how to produce it. And production department makes new product so they can available
in market according to demand and meets need. So this both department are interrelated and
interact with each other (Mandal and Joshi, 2017).
5. The value and importance of the marketing role in the context of Cadbury
Create Brand Awareness– Marketing tells customers about their Cadbury products,
their core features and also additional features. Like this, they create awareness about their
products and create brand image of Cadbury.
Increase Sales– By implementing proper marketing strategies, they can boost the sales of
Cadbury products and in turn increase the turnover of the Cadbury.
Market research– Marketers do market research about the customers' needs and
demands, give report on these to Cadbury production department. Like this, marketers indirectly
fulfil their customers' demand and make Cadbury more profitable (Babin and Zikmund, 2015).
Promotion – Marketing is an important aspect to grow Cadbury organisation. It helps
Cadbury to expand their business by doing e-marketing and digital marketing and getting more
and more customers.
Branding and Positioning – Whenever Cadbury launches its new products, it is easy for
company to create brand image of that new product in people mind. A successful marketing
strategies can create fast branding and positioning of new products. The best example – Cadbury
Dairy Milk Silk became popular so fast because of branding and positioning of Dairy milk in
People mind.
6. Significance of having effective interrelationships between different functional units
Effective interrelationships between functional departments has ensured growth for
cadbury. Without effective interrelationships between them, there will be creation of problems,
conflicts and confusions which can lead cadbury to close the company. Marketing department
connection with human resource department has helped organisation in recruiting skilled and
talented staff. Like for example HR department has ran a staff development program, whose
promotion has been done with the help of preparing a newsletter (Baker, 2016).
Profit can be made by achieving sales target which is decided by finance department and
sales target cannot be achieve without the help of marketing department. Finance department of
cadbury achieve their target and increase their sales volume which lead them to gain more.
Cadbury did the same but collecting those right people for right positions cadbury are done by
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Marketing department. Hence, effective interrelationship between Marketing with HR
department make cadbury successful. Cadbury always fulfil the demands of customers on time
and become popular. Cadbury marketing department always tell production department about
customers and their demand which lead them to produce good quality product, which in turn
increase their sales and turnover. It's because there is an effective interrelationship between both
department (Fine 2017).
7. Comparison of marketing mix elements between Cadbury and Nestle
Marketing Mix Elements Cadbury Nestle
Product Cadbury offers a variety of
chocolates to its customers in
Nestle offers different variety
of products to consumers.
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Illustration 1: Marketing Mix
Source: The 7 Ps of Marketing, 2016

different flavours, size, and
names. It diversifies its
product in line extension. Ex:
Dairy milk, dairy milk roast
almond, bubbly dairy milk,
Oreo dairy milk etc. Cadbury
used improve existing
product's strategy for its
products (Datta, Ailawadi, and
van Heerde, 2017). For this it
develops its existing products
by some changes and
innovative things. Cadbury
develop its product on the
basis of production cost,
demand fluctuation,
competition presence etc.
Nestle diversifies its products
in brand extension and line
extension both such as snacks,
coffee, milk products, infant
foods, beverages etc. are
example of brand extension
and kitkat, milky bar, polo,
classic etc. are example of line
extension. Nestle is focusing to
bring its new products in
market in many flavours.
Price Cadbury used economy
pricing and bundle pricing
strategy for its customers.
Cadbury comes out with
different variants to reach out
to a large audience such as five
star, eclairs etc. are price
economic. Cadbury used
bundle pricing by providing
multiple products at lower rate
compare to that if they buy
them individually such as gift
packages, celebration
Nestle used competitive
strategy mainly for its
products. Majority of products
which offered by nestle are
provided price of those
products are decided according
to competitor products which
already exist in market. Nestle
Maggi, Nestle KitKat are
example of competitive pricing
strategy. Skimming pricing
strategy also used by Nestle to
targeted some individual
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chocolates packs in festive
season (Erevelles, Fukawa and
Swayne, 2016).
customers in some products
such as Nestle A+ Slim, Nestle
A+ toned etc.
Place Cadbury can be found in more
than 40 countries and
manufacturing more than 15
countries. Cadbury used
distribution channel for
providing its product
everywhere, so this is easy
accessible for every customer
in any location.
Nestle has 447 factories in 189
countries which helps it to
make a global brand. Products
of nestle are also easily
available but some prime
products of nestle is only
available in super malls or
hyper malls.
Promotion There are different advertising
campaigns that Cadbury used
to promote its products.
Emotional advertising
campaign is mainly used by
cadbury because cadbury
focuses on emotions more than
information. The use of
emotions in advertising is to
connect and engage audience
in much better way (Fine,
2017). It used campaigns like
“Nothing tests better” etc. in
advertisements and which
worked wonder for this. For
promotion Cadbury used
advertisements, social media,
TV, print etc.
Nestle has a strong social
presence that will allow it to
interact and engage with
customers. Nestle generally
used BTL and digital channels
for promotions. It has strong
product portfolio that makes it
different with competitors.
This brand is relying on BTL
promotions which uses
vernacular communication. It
used campaigns like
“staystarted” as tag lines who
help it to promote.
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People Cadbury motivate its
employees by giving them
rewards time to time. Cadbury
use promotion techniques to
increase profitability of its
employees, and provide
training programs for workers
to increase their efficiency and
develop skills. To retain its
employees, it gives extra
benefits also such as
recognition, accommodation
etc. This is also known as a big
organization who give
employment in high rate.
To motivate its employees,
Nestle conduct training and
development programs. To
retain its employees, it gives
bonus, medical benefit and
promotions through which
employee loyalty is created
and productivity and efficiency
is increased. Nestle provide
some coupons and vouchers
also to its employees to
motivate them.
Process Cadbury follow distribution
channel process. This process
includes manufacturing
warehouses where chocolate
production takes place.
Manufacturers are first
distribution channel then
wholesaler and then retailers
are work in this distribution
channel. The aim of cadbury to
using distribution channel is to
provide its chocolate to all
type and class of customers.
By using its wide distribution
channel it distributes its
products in all supermarkets,
Supply chain management
plays an important role in
Nestle. It helps to meet the
satisfaction of customer and
leads to company in success.
Nestle used product flow,
money flow, information flow
and return low in supply chain
management process. In nestle
supply chain forecasting is also
applying by meeting the
demand of customers or
completing order.
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hypermarkets, retailers etc
(Fine, 2017).
Physical evidence Cadbury have a strong part in
its physical evidence. It
provides a very good
packaging to attract customers.
A special Blue colour is used
by cadbury which makes easy
to identify product of this and
which known a physical
evidence of cadbury. It
provides different type of
packaging to customers
according to their needs or
occasions. Cadbury can also be
customized according to
customer needs. Customers
can easily find product of
cadbury which help to increase
sales of this through that
company's goal of earning
profit is achieved.
Consumers will make their
perception for any product on
the basis of its physical
evidence. Nestle also provide
good packaging. But it used
different colours in its
packaging according to
product or process, it does not
have a particular colour which
can become its identity,
because it has many products.
It mention its name in its
products in big fonts which
helps to identify its products
and difference with another or
imitated products which helps
to increase sales of Nestle.
8. Marketing Plan for new product launched by Cadbury
“ Cadbury Zero”
Summary: Cadbury launches new range of confectionery “Cadbury Zero” to target
health conscious people. This protein bar has all necessary nutrition value products which
includes nuts and low amount of calorie count and no artificial preservative, flavouring and
fillers. It is gluten free and whole grain nutritious bar with high proportion of nutrition to
carbohydrates/fats (Datta, Ailawadi and van Heerde, 2017).
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Mission: Our mission is to create nutritious protein and energy bar which are delicious,
high in nutrition and rich in protein.
Vision: To bring in products which enhances customer satisfaction and productivity.
Objective: The main objective behind launching Cadbury Zero is to target those segment
of people who are health conscious and to grow the market share of the company by 20% in next
financial year, increase in revenue growth by 20%-25% per year, increase in profit margins by
5%-8%.
Market audit: SWOT analysis of “Cadbury Protein Bar”
Strength: Cadbury has a competitive advantage over its competitors as it is highly
recognized throughout the world and offer economic price which attract more customers. There
are few large competitors in the market and Cadbury has launched a differential product than its
competitors in terms of quality and taste. This helps Cadbury to focus on growing health food
products and attracting large consumers worldwide and leads to long term business plan and
higher profitability.
Weakness: As Cadbury is new to this product line it is difficult to tap the right market
segment and it also adds additional cost to the company in terms of research and development,
promotion and marketing of new product.
Opportunity: People are becoming more health and diet conscious as this emerging
lifestyle trend gives opportunity to grow the business and make product available near gym and
various other stores to increase sales and grow market share by capturing large audience
regardless of age group.
Threat: Cadbury faces huge competition as there is a threat of large number of
competitors entering into the market by launching innovative bars in similar product line.
Government launching new regulations and rise in production cost is also a major threat to the
product (Steenkamp 2017).
Marketing Mix: Marketing mix comprises of 4 p's which are product, price, place and
promotion.
Product: “Cadbury Protein Bar” is a new product of Cadbury confectionery. This is a
protein and energy bar which consists of rich quality chocolate coated almond nuts and have low
calorie count. This product is specifically made by keeping in mind all nutrition factors in mind
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and no added artificial flavouring. Types of flavour offered are Cadbury nuts protein bar;
Cadbury Almond protein bar; Cadbury Almond and Raisins protein bar.
Price: Cadbury uses economical and affordable pricing strategy. Cadbury protein bar is
offered in different sizes and price range which are worth their money and quality. They also sell
multiple products at lower or at discounted price then the products if bought individually.
WEIGHT PRICES
25 gm packet 20 Rs.
50 gm packet 40 Rs.
200 gm tin 150 Rs.
Place: Cadbury products are distributed in many countries like United Kingdom, Ireland,
India, Canada, New Zealand and South Africa. It largely focuses on distributing products in
grocery stores, supermarkets, gym nutrition stores. The distribution is largely done by targeting
young health conscious audience.
Promotion: Cadbury is promoting its new protein bar with help of social media marketing
and advertisement on television and billboards. Cadbury promotes its new product by featuring
brand ambassador in advertisement and mention all necessary nutrition benefits of the bar in
advertisement to attract large customers.
Strength
Marketing is the beneficial way that shows the company strategies which is important to
be mentioned properly. It explains the proper prices of the product, strategies, place, promotional
activities etc.
Weaknesses
Marketing mix does not consider client behaviour because it is internally oriented. Also
marketing mix does not mention building relationship with the consumer that has become a
major function focus.
 Segmentation, Targeting and Positioning:
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1. Segmentation: It is mainly done through demographic segmentation by identifying
customers of the age group between 10-60 and target customers who are young and old
which will increase sale and profit of the company.
2. Targeting: Cadbury protein bar uses differentiated market segment strategy which
focuses on youth and diet and health conscious people. It usually targets all types of
customer ranging from young and old.
3. Positioning: It targets on brand and quality positioning by offering differentiated
products than its competitors and rich nutrition quality protein bar at economical pricing
i.e. they offer quality product by reducing the prices. Cadbury aims at positioning the
new product by conducting various promotional activities through social media
marketing and advertisement which includes specific feature of protein bar like price,
flavour, fillers and low calorie bar with no added sugar by featuring brand ambassador in
television, newspaper, magazine and billboards.
Weaknesses
it is not very much beneficial for the company to gain the market gain.
Strength
Strength helps to define the company positioning in the market also helps to select the
target market customers of the company goals. This also helps to measure the effective goal
outcomes and approach.
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Illustration 2: STP Model
Source: Segmentation, Targeting and Positioning, 2015

Budget: The total budget of the “Cadbury Zero” is £50.
Basis Expense
Production £15
Promotion and Marketing £10
Distribution £5
Cost to employee £10
Other variable expenses £10
TOTAL £50.00
Strength
Budget is the tool or technique which measures the all expenses of the company that
helps to manage the all company capital accordingly. In addition to that, marketing budget also
can helpful to guide company about their marketing expenses and which are most important.
Weaknesses
Ineffective adverting cost and campaign can occur unnecessary cost to the company
which affect the overall marketing efforts.
9. Monitoring and Controlling: Company monitor and analyse how the new product is
appreciated and recognized in the market and take feedback from the consumers about the
protein bar and in case of any negative feedback company will try to manage and control the
issue of consumers by improvising the product in terms of taste and quality (Erevelles, Fukawa
and Swayne, 2016).
All the elements of the marketing plan are equally important and essential for the
company in order to meet the company functional task. In order to maintained the proper
performance of the company it must be required by the manager to monitors the marketing plan
to get the effective management success and long-lasting growth. In other words, it helps to
quality the marketing work and get the best possible action plan.
Another measuring performance goal is to require or analysis the market share of the
company to evaluate the proper performance of the company and goals. in order to meet out the
goals and effective management goals.
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CONCLUSION
Above the study it has been summarized that how marketing influenced customers to buy
products and interrelated with its internal department to increase profit. This identified
techniques and strategies used for marketing in Cadbury. A business plan has made in above
study which describe that by using different marketing mix strategies how a business lead in
market. This study described how price, physical evidence and place influenced to customers for
buying product. An overview of marketing process is defined in this report.
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REFERENCES
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ONLINE
The 7 Ps of Marketing. 2016.[ONLINE] available through
<https://www.entrepreneur.com/article/70824>
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Segmentation, Targeting and Positioning. 2015.[ONLINE] available through
<https://www.consumerpsychologist.com/cb_Segmentation.html>
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