Marketing Essentials

This report discusses the role and responsibilities of marketing function, the relationship between different departments of Cadbury, the elements of marketing mix (7Ps), and the marketing plan of Cadbury. It also includes a SWOT analysis and Porter's generic strategies.

Marketing Essentials
1

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P1 Role and responsibilities of marketing function....................................................................3
P2 Relationship between different departments of Cadbury:.....................................................3
TASK 2............................................................................................................................................3
P3 Elements of marketing mix (7Ps)..........................................................................................3
TASK 3............................................................................................................................................6
P4 Marketing plan of Cadbury....................................................................................................6
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11
2

INTRODUCTION
Marketing refers to the helping tool in attaining the main objective of a company i.e.
attracting customers towards products and services of their company. It is a very important
function of any organisation, because, it is a connecting link between organisation and its
customers (Uncles, 2018). The main objective of this branch of organisation is to increase sales
and revenue. This report throws light on marketing practices of Cadbury. Formally known as
Cadbury's and Cadbury Schweppes is a British multinational confectionery company. It is the
second largest Confectionery brand in the world after Mars. It was founded in 1824. Main
business line of Cadbury is chocolates and cookies. In this report, marketing essentials followed
in Cadbury are discussed in three parts. First part discusses important roles of marketing function
and its relationship with other departments of organisation. Second part is focused upon
comparison of marketing practices followed in two different organisations namely: Cadbury and
Nestle. Last part is focusing on preparation of a marketing plan for Cadbury.
TASK 1
P1 Role and responsibilities of marketing function
(covered in PPT)
P2 Relationship between different departments of Cadbury:
(covered in PPT)
TASK 2
P3 Elements of marketing mix (7Ps)
Marketing mix refers to the set of actions that a company uses to promote its product or
service in the market (Perreault, 2018). 7Ps of marketing are namely product, price, place,
promotion, people, process and physical evidence. Marketing mix of Cadbury and Nestle are as
follows:
Element of
marketing mix
Cadbury Nestle
Product Cadbury has a variety of cocoa
products in its line up. It has
chocolates bars, biscuits, beverages,
Nestle also has multiple brands and
products in its kitty. It offers
chocolates & confectionery, dairy
3

rolls, cakes and desserts, etc. . Most
famous cadbury products are its
chocolates lead by various varieties
of dairy milk and bournville. Other
chocolates are crunchie, fudge,
starbar, darkmilk, etc. It also offers
other products like bournville cocoa,
choc's shake, freddo biscuits,
chocolate chip brownie, fingers, etc.
Cadbury also offers special festive
boxes on occasions such as
Christmas and Halloween.
products, coffee and drinks, breakfast
cereals and other packaged ready to
cook food, drinking water, pet care,
etc. Its cash cows include Maggi
noodles and Nescafe. Other
prominent brands from company
include Nespresso, Kitkat, Purina pet
care range, carnation, sma nutrition,
Herta, etc.
Price Cadbury prices its products
strategically so that all targeted
segments can be met. Company uses
various pricing strategies such as
skimming pricing, economy pricing,
bundle pricing, etc.
Products are priced as per their
quality. For example, bournville is
priced higher than dairy milk,
darkmilk, etc.
Nestle determines price of its each
individual product on the basis of
geographical market as well as
packaging and targeted market. For
example, Nescafe and Maggi are
charged at higher margins. This is
because the product is placed
comfortably in the market and a bit
of skimming price will not cause the
customer to switch brands (Mehta
and Kaushik, 2015).
Nestle offers products in varied sizes
and packaging options and price
them according to competitors' prices
which helps it target all kinds of
customers.
Place/Distribution Cadbury distributes its products all
over the UK in all the supermarkets,
Nestle follows typical distribution
channels like other FMCG
4

physical grocery stores and online
retailers. Cadbury follows breaking
the bulk strategy as followed of
FMCG companies.
Cadbury chocolates are manufactured
in Bournville, England and is then
sent to all over country. This makes
distribution costs of company higher
but because of high demands, that
costs get covered.
companies i.e. from manufacturers to
C&F agents or distributors and from
distributors to retailers and finally,
from retailers to consumers. It has a
strong marketing and sales network
for distribution but faces a tough
competition from other brands. So, it
regularly introduces trade discounts
and other promotions to keep
retailers connected.
Promotion Cadbury follows a wide range of
promotional mix. It promotes its
products in newspapers, television,
posters, etc. It often arranges
innovative digital media campaigns
to increase its popularity and connect
with target customers (Kayabasi and
Mtetwa, 2016). It often uses a distinct
tag line for each of its products that
can create impression in the minds of
people. It hires famous celebrities to
promote itself so that maximum
number of people connects with it.
Brand promotion is very big strength
of Nestle. It comes up with unique
strategies of brand promotion with
every product. Nescafe tune and
maggie ads are one of the most
successful brand promotional
campaigns ever. “Have a break Have
a Kitkat” promotional campaign of
Kitkat is also very innovative and
popular. Major focus of Nestle is to
push sales promotions at a ground
level.
People People are the employee of the
company. Staff is provided training
to provide better customer services.
Cadbury encourages its staff to
innovate the product and process as
per customer feedback. They are paid
well and are provided several
Nestle offers competitive packages to
its employees. They are trained to
increase sales and profitability of the
company. Nestle leadership follows
democratic style of leadership and
invites suggestions and ideas from
their team which can help company
5

incentives, bonuses and options
according to their performance.
develop better brands (Hisrich and
Ramadani, 2017).
Process Process refers to a set of activities
performed in order to achieve
something. Cadbury provides
standardised and customised flow of
the activities and processes (Akbar,
Omar and Wadood, 2017). Cadbury
regularly undergoes market research
to determine customer feedback and
then changes its process accordingly.
Nestle focuses on using innovative
technologies to enhance its business
process. It trains its employees to
manage the products and customer
service in such a way that it leaves a
lasting impression in the minds of
consumer whenever they connect to
Nestle company or products.
Physical Evidence The physical evidence stands as a
proof of authentic products provided
to the customer. Cadbury has a sound
infrastructure that maintains same
quality globally. Same quality
maintained by company over the
years stand as evidence in the mind
of buyers.
Nestle makes lots of efforts in
packaging of its products. It is its
packaging which attracts the
customer in first place. Then, it
promotes brand in such a way that
people connects to it and start
considering it a quality benchmark.
TASK 3
P4 Marketing plan of Cadbury
Marketing Plan
A marketing plan is a strategic road map that businesses use to organise, execute and
track their marketing strategy over a given period of time. It helps company in identifying its
primary objective, target audience and promotional strategy (Groucutt and Hopkins, 2015). It
includes feasibility analyses such as SWOT analysis, Porter's generic strategy analysis,
marketing mix and also financial viability plan. Marketing plan for Cadbury is as listed below:
Company Overview - Cadbury is a British multinational company which produces,
markets and sells cocoa confectionery products to wholesale and retail outlets. It was established
in 1824 by John Cadbury as a grocery store, selling cocoa and drinking chocolates. Over the
6

years, it transformed into a manufacturing company selling various varieties of cocoa goodies
and drinks. At present, it is a part of Mondelez International and offers a wide range of products
from chocolates bars, biscuits, beverages to rolls, cakes and desserts, etc. in the market. Its top
competitors include the likes of Mars/Wrigley's, Hershey and Nestle.
Vision – Cadbury envisions to create products with love and share it with world.
Mission – Cadbury's mission statement says “Cadbury means quality; this is our
promise”. Company continuously makes effort to ensure that their promise is delivered.
SMART Objectives - SMART objectives are a form of objective setting which allow
managers and employees to create, track and accomplish, short and long term goals (Eletxigerra,
Barrutia and Echebarria, 2018). SMART goals stands for Specific, Measurable, Achievable,
Realistic and Time bound goals.
 Cadbury aims to introduce 'Gluten free chocolate cookies' within 1 year in the
untapped market of gluten intolerant people in order to increase market share
and business profit by 8%.
SWOT Analysis
SWOT analysis is strategic planning technique to help an organisation identify its internal
strengths and weaknesses and external opportunities and threats (Critchley, 2020). Cadbury is
analysing this technique to determine the correct strategies it needs to follow in order to make
this new product successful in the market. It will help company identify its weak spot to be
eliminated and strong points to be strengthened.
7

Strengths Public trust: Cadbury is a trusted brand in minds of consumers. Its chocolates, candies
and other confectionery items are much relished and appreciated in market by both kids
and adults. New products by Cadbury are much awaited. This new product will not only
be relished by present consumers but also by those gluten intolerant consumers who were
not able to relish cadbury cookies earlier. Strong Research & Development: Cadbury always invites new ideas from stakeholders,
consumers and public in general. Whenever company receives a new suggestion, it
strives to develop it in a new product. New product is then tested in samples before
launching in consumer market. This reduces possibilities of product failure.
Weaknesses Product recalls: Cadbury often find itself surrounded by controversies of infested
products. Many a times it had to call back its products. This spoils the goodwill of
company in market. Such negative news floating about company in market makes it
tough for company to introduce a new product and make it successful.
8
Illustration 1: The Actionable SWOT Analysis, 2020

 Limited reach: With so many local brands offering chocolate confectionery items on
prices lesser than Cadbury, it appears highly priced brand in eyes of lower income group
of society. It takes away a part of targeted consumers from Cadbury.
Opportunities Untapped sweets market: There are many less international brands that offer gluten free
chocolate cookies option. Therefore, there is a huge potential in this market and Cadbury
can grab big market share till competition enters the market.
 Savoury food market: At present, company doesn't offer any savoury product. Today's
consumers have a growing shift in tastes and it is good time for company to enter savoury
market. It can also bring a diet food products range for fitness aware consumers.
Threat Health Consciousness:Cadbury only offers sweet products. In today's times, there is a
growing health awareness and people are increasingly turning away from sweet and high
calorie products (Brychkov and Domegan, 2017). This shift in consumer preference pose
a high threat of decline in sales revenue of Cadbury as well as introduction of new
product.
 Strong Competiton: Big competitors like Nestle, Wrigley's, etc. are always keeping an
eye over their competitor's products and market. So, there is a high risk of close
substitutes being available soon.
Porter's generic strategies
There are three strategies namely, cost leadership strategy, differentiation strategy and
focus strategy which forms part of Porter's genric strategies. These are called generic strategies
because they can be applied to all products or services in all industries, and to organisations of all
sizes (Chernev, 2018). Porter's generic analysis for Cadbury is as follows:
1. Cost leadership strategy - Cost minimization is focus of this strategy. It can be achieved
through input cost reduction or overhead minimization.
2. Differentiation Strategy - This strategy aims to create a differentiated product from the
already existing products in the market (Babin and Zikmund, 2015). This strategy helps
company charge premium pricing from their customers.
3. Focus strategy – This strategy aims to focus only on one area. A company should either
go for cost leadership or create differentiated products.
9

Since the product Cadbury is planning to launch is a new product in a new market,
differentiation strategy is suitable. It will help to create a competitive advantage for Cadbury in
the beginning period of product life cycle.
4Ps of Marketing Mix
The mix involves key factors affecting the marketing of a good or service. These factors
are constrained by internal and external factors in the overall business environment (Blythe and
Martin, 2019). They are product, price, place and promotion of a good or service.
Product: Cadbury offers a wide range of confectionery products. Its products consists of
chocolates, candies and beverages. Cadbury also marks their presence in ice cream, biscuits and
desserts segment also. This new product will add gluten intolerant people to its customers list.
Pricing: Cadbury uses differential pricing policy. They price their products according to
the quality and targetted market. Cadbury can use premium pricing strategy for this new product
as it does not have a near substitute but must keep in mind that prices shall not be that premium
that the product becomes unattractive to target consumer.
Promotion: Cadbury uses various promotional strategies to promote its products both pre
and post launch. Few strategies are TV ads, posters, newspaper ads, online promotions, etc.
Company can promote this new product with some innovative social media campaign on the line
of creating health awareness.
Place: Cadbury products are manufactured at certain places and are then transported all
over the world. It aims to place their products at every supermarket, retail stores, online retailers,
etc. so that they can have ever increasing customer base. Company can distribute some packets
of cookies to few target consumers and with their feedback shall decide on distribution strategy.
10

Budget
Monitoring and controlling
Monitoring and controlling are required for measuring the effectiveness of marketing
plan and its execution. It helps marketing managers determines where they went wrong and what
they can do better. Monitoring ensures effectiveness of the plan while controlling helps company
check on its efficiency (Baker and Magnini, 2016). With continuous monitoring and controlling,
company ends up achieving its desired results.
CONCLUSION
In the above report, it was seen that marketing is that part of the business process which
is at forefront to drive sales of products and services in the market. Ultimate aim of company is
business growth and marketing is that steer wheel which leads it to its road to success. It is
instrumental in taking business to new heights. Marketing department works in cooperation with
other departments of the organisation to achieve targets and objectives of the business. In the
later part of report it was also seen that marketing departments often undertakes marketing mix
process to know different sets of actions and activities, to decide on their final strategy to
promote their products and services.
11

REFERENCES
Books and Journals
Akbar, F., Omar, A. and Wadood, F., 2017. The Niche Marketing Strategy Constructs (Elements)
and its Characteristics-A Review of the Relevant Literature. Galore international
journal of applied sciences & humanities. 1(1). pp.73-80.
Babin, B.J. and Zikmund, W.G., 2015. Exploring marketing research. Cengage Learning.
Baker, M.A. and Magnini, V.P., 2016. The evolution of services marketing, hospitality
marketing and building the constituency model for hospitality marketing. International
Journal of Contemporary Hospitality Management.
Blythe, J. and Martin, J., 2019. Essentials of marketing. Pearson UK.
Brychkov, D. and Domegan, C., 2017. Social marketing and systems science: past, present and
future. Journal of Social Marketing.
Chernev, A., 2018. Strategic marketing management. Cerebellum Press.
Critchley, S., 2020. Dynamics 365 for Marketing. In Dynamics 365 Essentials (pp. 231-255).
Apress, Berkeley, CA.
Eletxigerra, A., Barrutia, J.M. and Echebarria, C., 2018. Place marketing examined through a
service-dominant logic lens: A review. Journal of Destination Marketing &
Management. 9. pp.72-84.
Groucutt, J. and Hopkins, C., 2015. Marketing. Macmillan International Higher Education.
Hisrich, R.D. and Ramadani, V., 2017. Entrepreneurial marketing mix. In Effective
Entrepreneurial Management. (pp. 75-99). Springer, Cham.
Kayabasi, A. and Mtetwa, T., 2016. Impact of marketing effectiveness and capabilities, and
export market orientation on export performance. European Business Review.
Mehta, R. and Kaushik, N., 2015. A Study of Emerging Trends in Brand Engagement through
Digital Marketing. Journal of marketing & communication. 11(2).
Perreault, W.D., 2018. Essentials of marketing. New York: Mc Graw Hill.
Rowley, J., 2016. Information marketing. Routledge.
Uncles, M.D., 2018. Directions in higher education: A marketing perspective. Australasian
Marketing Journal (AMJ). 26(2). pp.187-193.
Online
The Actionable SWOT Analysis, 2020. [Online]. Available
through:<https://www.valueprop.com/blog/the-actionable-swot-analysis>
12