Marketing Strategies Analysis: Cadbury & McDonald's

This assignment involves analyzing the marketing strategies of two prominent brands: Cadbury and McDonald's. You'll need to apply the traditional 4Ps (Product, Price, Place, Promotion) and SWOT analysis techniques to evaluate their strengths, weaknesses, opportunities, and threats. Additionally, you'll discuss how digital marketing has aided in the growth and development of these companies, with a specific case study on an online music production company.

Marketing Essentials

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Explaining the key roles and responsibilities of the marketing function of Cadbury............1
P2 Explaining how roles and responsibilities of marketing relate to other functional units of
Cadbury.......................................................................................................................................4
TASK 2............................................................................................................................................6
P3 Comparing the ways in which Cadbury applies marketing mix to marketing planning process
to achieve business objective......................................................................................................6
TASK 3............................................................................................................................................8
P4 Producing and evaluating a basic marketing plan for Cadbury.............................................8
CONCLUSION..............................................................................................................................13
REFERENCE ................................................................................................................................14

INTRODUCTION
These are the necessary elements of marketing which are all included in the
marketing process. Digital marketing is now becoming wide among customer and
making the marketing experience more personal. The present report is about Cadbury
the worlds famous British multinational company and how it is making its marketing
strategies to gain more market. Cadbury is having the business worldwide and set up a
different marketing department to look after Cadbury's promoting and all the other
related activities. The roles and responsibilities in the development of Cadbury is very
essentials and interrelationship between the marketing and other functional units are
important as well. Marketing essentials are also required in the marketing planning of
Cadbury and thus achieving the business objective of the firm.
TASK 1
P1 Explaining the key roles and responsibilities of the marketing function of Cadbury.
It is an act of doing business and sell products and services, which includes
market invention, advertising and distribution of the products of the company.
Marketing functions are the role which promotes the company to identify and source
innovative products for the market in which they are operating and then promoting the
products by differentiating them with the similar products and services available in
market (Iancu and Maier, 2017). Marketing plays a vital role in establishing
relationship between customers and organisations offering to market they also play a
role in branding, publicity activities, advertising and customers feedback collection.
Cadbury's marketing functions carry some roles and responsibilities with them in
enhancing the growth and developing company for a better competition. A typical
marketing functions within a large organisation like Cadbury includes performing
market research, marketing planning, product and market development, marketing
penetration, taking care of advertising, distribution for sales, pricing and the last after
sales customer service and maintaing public relationship. Cadbury's marketing
functions have the following key roles and responsibilities.
Conducting promotional activities- Cadbury's marketing function help the
company in the promotional activities like the advertising and distribution
functions. Cadbury mainly target the kids aged 2-15 with most of the
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advertisements are animated and appealing to the imagination of kids. Then
after the success of the chocolates it produced it began targeting all age group
of customer show casting that there are kids in every one (Maghaireh, 2016.).
And they are promoting their products with different marketing strategies
which are very useful in the development of company.
Defining and managing the brand image of Cadbury- as Cadbury is the
world leader in the world of chocolate industry and is known by the name in
the market. For the chocolate industry Cadbury is pitted against competitors
like Nestle but the brand position of Cadbury Dairy Milk in the customers mind
is very much occupied then the others.
Online marketing- in today's era where everything is online the customer is at
the ease of getting the products online and companies are also advertising its
products and services online. Cadbury utilises common social networking
channels like Facebook, Twitter, Instagram, YouTube and Google and it enjoys
a great return from its investment in social marketing above the traditional
media channels. Cadbury invest a huge amount of time and money into
advertising their brand in the major networking sites and this is lived up their
growth for creating memorable and standout campaigns.
Producing marketing and promotional materials- Cadbury launch a big
profile on pack promotion giving its customers the chance to earn money
cannot buy prize (Moini, 2017.). The new promotional strategies of Cadbury in
the year 2013 was of a huge success and created 1 million online entries
compared to 300000 a year before.
Outside vendors and agencies- Cadbury has selected the VCCP as its new
leading global ad agency after the increase in competition. VCCP will be
leading Cadbury's global brand strategies and creative direction which will be
acting as a full-time service partner agency for the Cadbury portfolio in UK
and Ireland.
Serving as media liaison- Cadbury is one of the world's best known chocolate
brand and is facing an increased competition. Whenever it is placed in the
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media regarding any controversies or to share any information through the
means of media there is a person who acts for the spokesperson of the
company.
Producing internal communication- employee's of Cadbury are the assets of
the company and helping in the success of the company in the market. Staff of
Cadbury got the sweet relief from the inflation with new pay deal by the
company and also get the increase in maternity pay. Employees received a
backdated pay rise for April 2017 to March 2018 of about 3.2% on a Retail
Price Index (RPI) measure of inflation in February (Pappas, 2017). Cadbury
also increased the period of maternity from 12 weeks to seven and a half
months and also will be getting 90% of the pay to 65% as required by law.
Conducting customer and market research- market invention are carried out
to identify customers and their wants and views as it is a link to connect
customer with the management of the company. Customer of Cadbury also like
food values that often contain ingredients such as cereals, wafers, biscuits,
peanuts and fruits in chocolates. The core objective of Cadbury is innovation as
it helps the company to develop one step above of its competitors in those areas
of market which are new and innovative.
Collection of data, planning and then using this data in the development of the
company is the applied strategies of Cadbury. Gathering of knowledgefrom different
areas of invention then putting it all together to see what the company found out and
analysing it to see what type of information is primary or secondary. Marketing
always help Cadbury to make accurate decision on the information it is provided with
and uses the marketing methods to understand its competitors, customers and the
environment. Cadbury use new research as this is very effective and allows Cadbury
to find new ways and ideas from market and before its competitors. Primary research
is found using strategic, technical and data research and secondary is existing research
like from books and journals.
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P2 Explaining how roles and responsibilities of marketing relate to other functional
units of Cadbury.
There are may business functional areas of every company and also in the
famous chocolate company Cadbury (Posavac and Posavac, 2017). Cadbury is having
70000 employees working for them and is a successful business maintained some
models and business functions to meet their aims and objectives. The production
department produce the product for the company, sales department do the selling part,
marketing department do the research and advertisements, finance department deals
with the accounts of company and R&D department create new ideas and innovation
in the process. These all departments do their work according to their set goals,
objectives and strategies and also aim at making the company successful. Cadbury and
its main source of following areas is tohelp and maintain the objectives which have
been set by business and allow Cadbury to continue to have success and reach their
aims.
The Production Department- all the chocolates produced in Cadbury are the
responsibilities of the production team that it should be of the best quality and
made with the pure and natural raw materials. The operation team need to have
a high level of system to be able to provide, produce and also reduce the
amount of waste of materials within Cadbury. The operation team of Cadbury
would be concerned with the following issues like cost of operation, means of
production, health and safety issues, with the use of new technology,
maximization of use of plants and reducing the waste of materials. The
marketing department will do the necessary research of the market and helping
the production team how much to produce according to the market demand of
Cadbury's products.
The Finance Department- this department deals and control the money factor
of Cadbury and is also responsible for keeping all financial records and
documentations of Cadbury (Rezaei, Wee and Valaei, 2017). The finance team
is also responsible for submitting tax reports, filling the income tax returns and
process regarding the registration of Cadbury. This department controls all
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given budgets to each other department this is done to achieve the objective
and not to waste money. As for marketing and the promotional activities
marketing department require budget so it will get this money from finance
team.
The Human Resource Department- this is concern with the welfare of the
employee working in each department of Cadbury. HR is responsible for
training and development of the employee's, to motive the staff and see that all
the health and safety issue have been taken. The marketing department also
require the personal to carry out the marketing activities in Cadbury which will
be provided them by the HR department only.
Administration and IT Department- within Cadbury administration
department provide support to all other department by creating working order
to routine and function smoothly. Then IT department help in keeping records
of relevant information, maintaing computer systems, software and security of
systems which will helps the marketing department as well.
Research and Development Department- Cadbury staff in R&D investigate
new products and try to improve sales of existing products. This is only
possible after marketing department is done with the market research for
Cadbury to increase the demand.
Sales Department- marketing is a department that would identify customer
need by carrying out the research and this will ultimately increase the sales of
Cadbury and thus increasing the profits (Rudden, 2016). The sales department
has to coordinate with marketing department to carry out the sale of Cadbury.
Without marketing and its functions Cadbury can not measure the amount of
demand and supply is there in the market of its products. All these function of
Cadbury should interact harmoniously to gain the organisational goals and objective
of company. Cadbury use aims and objective as they are the foundation for decision
making in the company helping to fulfil the goals and maintaing profits. It also
provides long term thinking which measure, control, motives and inspire workers and
also communicate with shareholders and employers regarding the business future.
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Cadbury always aims at maximising profits, to lead the market, maximise sales,
to grow regularly, operate in wide markets, to always have good reputation, achieve
the best financial return on capital and also to boost or maintain share market values.
Over the years the way Cadbury is advertising their products have seen many changes
are very important to Cadbury as they affect the way customer think about company
and products. It always tries to make sure that customers are satisfied with the goods
or services that customers are buying.
TASK 2
P3 Comparing the ways in which Cadbury applies marketing mix to marketing
planning process to achieve business objective.
Illustration 1: 4P's of Cadbury
[Source: 4P's of Cadbury, 2017]
It is a tactical or operational part of marketing planning it is a combination of
factors that are controlled by a company to influence consumers to purchase its
product. Marketing mix includes 7P's of marketing i.e.product, price, place ,
promotion, people, process and physical evidence all these are used by Cadbury to
achieve the organisational goals (Udachyna, Bandorina and Savchuk, 2017.). These
all 7P's are combined to gain success by the company and to become the market leader
in terms of production and sales of chocolate. All 7P's are linked with each other as
are used in the combination only. The product based company of world generally use
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4P's of marketing mix i.e. product, price , place and promotionwhich is also regarded
as the old or traditional marketing strategies. While the service based industry use all
7P's of marketing mix i.e. the 4P's and including physical evidence, people and
process as well which is a new method of marketing mix.
Product- this means the goods or service combination that a company offers to
the target market which are further divided into core product, actual product
and augmented product. The product life cycle is based on the biological life
cycle like from where it starts introduction of product, then it begins to grow in
the market, then it becomes an adult or attains the maturity level and after a
long period as on maturity level it declines. Cadbury is having a strong brand
presence worldwide with even stronger product range. Cadbury is having 57
sub brands under it, over 11 different types of dessert, 7 types of beverages, 3
types of biscuits, 4 types of cooking products etc., Its famous products include
5 star, Bournville and its range, Dairy milk and its range, fuse, perk,
Temptation and its range, jems and its range, bournvita, Oreo and its range, and
many more.
Price- Cadbury is having a goal in terms of price to lower the costs by
improving manufacturing and efficiency. The price is always set according to
quality of product and Cadbury is having a very high quality of product and
thus price are also high. But this price rage vary from product to product in
Cadbury like some products like beverages and Oreo are of high price while
others like perk, 5 star and eclairs are available at a reasonable price (Verma,
2017). And in this aspect Cadbury Dairy Milk is the clear winner as it is
available in both high and low varieties. Cadbury has tried to position itself as
somewhat of an affordable luxury by keeping its price relatively high and
giving a competition to premium brands Ferrero Rocher.
Place- the distribution or place management of Cadbury is very good and is at
widespread. Cadbury is available strongly in all urban areas also in A, B and C
category towns but the rural marketing of Cadbury is weak as there is low
demand . Chocolates of Cadbury is manufactured in Bournville, England and it
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buys the best cocoa beans from Ghana, West Africa. Cadbury is having a very
strong channel od distirbution in Singapore and its star products like Dairy
Milk and Time out can be found in almost any store. The distribution network
consist of all convenience store, supermarkets, hotels, airport duty free shops
and else where and targeted segmentation is whole family as said to be
“everyone's chocolates”
Company>>C&F agent>>Distributors>>Retailers>>Consumers
Promotion- as Cadbury interacts with the customers it keeps on trying
establishing an intimate relationship with customers. They share history of
chocolates, chocolates news around the world, new chocolates' consumption
methods and choosing their fan of the month and then making the profile
picture of their Facebook page. Promotion of Cadbury is different for all the
various products of company form eclairs to Bournville to bournvita to perk. It
uses all kinds of promotional activities like online marketing, advertisements
on TV or newspapers or radios, hoardings, standies as well as banners on shops
etc. Promotions includes all activities marketers undertake to inform consumer
about company's product and to encourage potential customer to buy these
products. There are no chances of agreements on specific content of marketing
communication mix there are many promotions elements like sales,
advertising, sales, promotion, public relations, direct marketing, online
communications and personal selling.
As Cadbury being the product based company and following only 4P's of marketing
mix like the product, price , place and promotion and not 7P's excluding process. As
Cadbury is making chocolates so the process of producing and manufacturing
chocolates are very important as per the customer's view (Akbar, Omar and Wadood,
2017.). The procedures which it is using must be healthy and safe as all the group of
people like to eat Cadbury chocolates worldwide.
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TASK 3
P4 Producing and evaluating a basic marketing plan for Cadbury.
British confectionery has its global icin in the name of cadbury since 1824 and a very
prestigious past of 193 year.cadbury has extended its business in whole world and operates
in over 60 countries.cadbury has enjoyed 10.5% market share of global confectionery market
with income of £5.4 billion company employs more than 70000 people and works
with 35000 direct and indirect suppliers globally. Cadbury is having a vision to be
biggest and best confectionery company in world strategic goal is for 2017-18 is to
increase market share with a revenue growth of 4% to 6% annually. The confectionery
business still having a significant unused potential by exploiting the strength of
business innovation Cadbury can continue to increase its market share and returns.
VISION of Cadbury-
Cadbury wants to be biggest and best confectionery company of world by the
year 2018 and cadbury strategy is to place vision into action [via plan]. The main
objective of cadbury is to give shareholders returns by meeting their vision. increase
investment in innovation, marketing and sales, having greater exposure to fast
growing categories and market and strengthening the brand image and market position
in world market (Badrinath, 2016). Cadbury business is segmented to mainly four
regions which are America; Britain, Ireland, Middle East and Africa; Europe and Asia
Pacific.
OBJECTIVE of Cadbury-
The confectionery business as per the Cadbury's perception has many untapped
potentials both in terms of top line growth and returns. Cadbury by exploiting
strengths of their leadership position will continue to grow market areas and increase
the profit margin and return. Cadbury has set up their objective for each year of their
financial performance scorecard like the
4% to 6% organic revenue growth every year.
Increasing the total confectionery market share of world.
Mid- teens trading margins.
Strengthening the dividend growth.
Growth in the return on invested capital (ROIC).
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STRATEGIES of Cadbury-
The planning or strategies for a marketing project is the key to success of any
organisation and that of the product. The strategy should include what needs to be
done, targeting the customer segments, providing them with what the want and
offering the product to customer. This is segmentation, targeting and positioning the
market such that Cadbury can increase its market share.
SEGMENTATION of Cadbury's market-
The UK chocolate market of Cadbury is segmented based on geography,
demographic and psychographic to identify the target market segments for Cadbury
Dairy Milk
Geography- UK market of Cadbury is geographically segmented into urban
markets i.e. cities like London, Manchester, etc; suburb markets i.e. towns like
Stamford, etc and others i.e. villages like Saws ton (Burgess and Munn, 2017).
Cadbury identifies the size of chocolate market, per capita consumption,
growth trends and analysing each segment in term of market share and Cadbury
Dairy Milk consumption.
Demographic- this segmentation allow Cadbury to understand chocolate
market by age, gender and income group. Cadbury can see who are the
chocolate lovers and which group will like Cadbury Dairy Milk.
Psychographic- this segmentation is based on consumers' lifestyle, attitudes
and motives. UK's chocolate market is also divided on the consumers who
wants goods with a brand name and the others who want taste of the product
more than brand.
TARGETING of Cadbury's market-
After identifying the market segmentation Cadbury will evaluate all segments
then choosing which possible segments will it actually target. Cadbury will target all
places in UK with more focus on urban market, distribution in all channels like the
supermarkets.
POSITIONING of Cadbury's market-
cadbury have all types of segments like youth as entertainment and
love ,adventure aspiration teenagers and children mind by various samll gifts.
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SWOT analysis of Cadbury-
Illustration 2: SWOT analysis of Cadbury
[Source: SWOT analysis of Cadbury, 2017 ]
Cadbury as a leading brand image of the confectionery industry are having
many strengths, weaknesses, opportunities and threads in the global market.
Strengths- Cadbury is well established company since 1824, and one of the top
4 leading confectioneries of world. They are having global brands and
innovative products which are available in almost all distribution channels.
Cadbury is very strong financially with increasing revenues and profit growth
annually.
Weaknesses- Cadbury is having very small presence in emerging markets and
products are highly dependent on confectionery market (Heroux, 2017). It is
having very high cost base with compared to others in the same industry and
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too many products and brand are there under which is not easy to manage every
time.
Opportunities- Cadbury can enter into new markets with its established brands
like in China and has the ability to make new products extensions in existing
markets. It can also acquire the existing confectionery companies .
Threats- Cadbury is facing the problem of carbon copying of its products in
the market by many of its competitors. There are also new rules and regulations
laid down which may increase its cost and social impact .there are many
consumer groups also.
PESTLE analysis of Cadbury-
The macro factors of a business are those factors which have no or very little
control over them by company and they effect the whole industry. The PESTLE
analysis identify the opportunities and threats of external environment and this
certainly effect the company's strategic planning making.
POLITICAL- As Cadbury is a confectionery industry so political impact are
very less on this industry. There are certainly no such political factors which
restricts buyer to buy the chocolates or gums. However, in Singapore the
government has prohibited the sale of gums as it is regarded as harmful to the
environment.
ECONOMIC- Any credit crunch or slow down of economic growth always
effect buying power of consumer and hence also that of Cadbury. The decrease
in the interest rates help consumer creating more money which will help the
Cadbury's business but a little.
SOCIAL- Cadbury business will be affected by health reasons like sugar and
obesity and bringing down the sale of the Cadbury products (Iancu and Maier,
2017). introducing sugar free gums and dark chocalate are very good
examples of how the confectionery industry is growing.
TECHNOLOGICAL- threasing use of internet has effected the business of
whole world and now coe incnsumers have more knowledge about the product
offers and have more approach to market.
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ENVIRONMENTAL- the world is experiencing many environmental
challenges like global warming, environmental legislations which are affecting
the Cadbury its manufacturing, products and packaging and company is
practising zero discharge to environment which is increasing company's cost.
LEGAL- the industry is monitored by the Food and Drug authorities in UK
which introduce changes in legislation affecting Cadbury.
CONCLUSION
From the above report on marketing essentials it has been concluded that in
today's world company can not perform better or can not grow if the company is not
having a good and efficient marketing team who are updated with the world. Cadbury
is having a very qualified marketing team of professional who are responsible for the
growth and development of the company. Also, having many other departments which
are interrelated to each other and work together to achieve the organisational goals of
company. Cadbury is a leading UK based company in the field of chocolates which is
operating worldwide. As is a product based company so using the traditional
marketing mix functions including price, place, product and promotion to bring up the
company in the emerging new market.
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REFERENCE
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Akbar, F., Omar, A. R. B. and Wadood, F., 2017. The Niche Marketing Strategy
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Marketing: Accelerating Growth in Strategic Accounts. Kogan Page
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Heroux, L., 2017. Sports Outfitters’ Marketing Strategies: A Comparative
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Moini, J., 2017. Focus on Pharmacology: Essentials for Health Professionals.
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Rezaei, S., Wee, C .H. and Valaei, N., 2017. Essential of Apps Marketing
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Real-Time (pp. 141-158). IGI Global.
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Rudden, D., 2016, November. Can You Hear Me Now? Marketing Essentials for
Audiologists in a Noisy Health Care World. In Seminars in hearing (Vol.
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Udachyna, K., Bandorina, L. and Savchuk, L., 2017. Modelling the economic
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Verma, R., 2017. How can a digital marketing plan aid in the growth and
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4P's of Cadbury. 2017. [Online]. Available though:
<https://www.marketing91.com/marketing-mix-of-cadbury/>. [Accessed
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