This essay explores the fundamentals of marketing, analyzing Cadbury's marketing strategies, including its marketing mix, interdepartmental relationships, and a comprehensive marketing plan for its walnut dairy milk chocolate.
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MARKETING ESSENTIALS
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TABLE OF CONTENTS INTRODUCTION...........................................................................................................................1 TASK..............................................................................................................................................1 1- Marketing concept and current trends and future trends....................................................1 2- Overview of the marketing process...................................................................................2 3- Roles and responsibility of marketing manager in Cadbury-.............................................2 4.Inter-relationships between marketing and other functional departments..........................3 5- The value and importance of the marketing role in the context of the organisation..........4 6- Significance of having effective interrelation within different functional departments....4 7. marketing mix of Cadbury and nestle-...............................................................................5 8. Prepare Marketing plan.....................................................................................................8 CONCLUSION..............................................................................................................................11 .......................................................................................................................................................11 REFERENCES..............................................................................................................................12 .......................................................................................................................................................12
INTRODUCTION Marketing deals with sales and promotion of the products and services to capture the large market share so that sales target can be met. It is the process through which company can make people aware and can spread information about goods and services to mass audience. This is the best way of promoting brand and expanding operations across the world. Present study is based on Cadbury, a leading brand in chocolate industry and was set up in Birmingham, England in 1824. the founder of the company was John Cadbury (Baker, 2016). It operates in almost every country around the world. In this report, a detailed study on marketing of Cadbury is discussed in this report. Study will compare marketing mix elements of Cadbury and Nestle. In addition, marketing plan will be prepared for promoting the product successfully. TASK 1- Marketing concept and current trends and future trends Marketing is considered as one of the most important function as it helps business in reaching to mass audience and increasing awareness among people. Various concepts of marketing are described as below: Product concept–This concepts pay attention on the aspect that consumers buy such items that are easily available in business and are affordable to customers.Companies always look on improving production capabilities and improving distribution efficiency as well (Singh, 2018). By following this concept Cadbury can meet with its organisational goal. Selling concept -This concept explains that consumers buy such products which are promoted by firms in effective manner. Management of the firm make hard efforts to increasesalesofthegoodsandservicesandthissupportsthebusinessinraising profitability. Though, it does not majorly concentrate on fulfilling needs of consumers. Selling concept mainly focus on making profit through increase sales of the product. Thus, it would be better for Cadbury in order to enhance sales volume. Marketing concept –Cadbury company also follow this concept because company make profitand can raise satisfaction of consumers. This concept pay attention on needs of buyers and try to fulfilling their requirements. Companies identify requirement of buyers and create value for them. This is beneficial in order to make people loyal andretain them in firm for longer duration. Cadbury follows marketing concept, it offers satisfactory goods to its consumers that is why its buyers are highly satisfied and loyal towards brand. 1
Current and future trends Currently companies are using social networking sides, TV advertisement in order to promote their goods and services. Use of Face book, Twitter gain attention of buyers and firm become abletoreachtomassaudience(McDonald and Wilson, 2016). Involvementof celebrities is another current trend of marketing. Future trends would be use of artificial intelligence. This would help in promoting the brand in most significant manner. 2- Overview of the marketing process Marketing process is the direction through which enterprise prepare its marketing plan and market its products successfully. Situation Analysis: This is the first phase in which company has to analyses internal and external situation of the firm.SWOT analyses is the model that supports in analysing internal situation of company. On other hand PEST isanother modelthathelpsin identifying external market position of business unit (5 Marketing Concepts Explained with Examples, 2018). Objective- This is another phase of marketing process, Company has to set its marketing objective. This helps in developing effective marketing strategy so that objective can be accomplished (Gupta, 2016). Marketing mix- This is another process in which companies are required to make effective marketing strategy so that overall goal of company can be accomplished. Product, price, promotion, place etc. are various element of marketing mix. Cadbury has to ensure making effective strategies related to these elements so that it can met with its organisational goal. Strategic planning: Company has to make effective plan so that strategies can give positive results and firm can run operations in smooth manner (Kozlenkova and et.al., 2015). 3- Roles and responsibility of marketing manager in Cadbury- Marketing manager has to perform various role in business unit. There are so many responsibilities of marketing manager in the company, these are explained as below: Role of marketing manager Marketingmanagerplaystheroleofcommunicator.Managerisresponsibleto communicate with consumers and employees. Manager of Cadbury has to communicate with other functional unit as well so that other departments can also perform well. Marketing manager 2
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plays the role of evaluator, individual has to evaluate the results whether company has received benefit through marketing process of not. Responsibility of marketing manager Marketing manager is responsible to make effective plan, effective planning aids in minimising uncertain event and minimising risk of business unit. Marketing manager has responsibility to make accurate and clear strategic plans to allocating resources and achieve goals. Manager of marketing department is responsible for conducting market research. Individual has to gather information about current market trends, needs of consumers and have to make changes in its strategies accordingly (Fahy and Jobber, 2015). Marketing manager of Cadbury is responsible for evaluating the progress, individual has to look upon return on investment. This helps in analysing actual success of marketing plan ResolvecustomercomplainsisanotherdutyofmarketingmanagerofCadbury. Individual has to listen issues of customers and have to provide immediate solution to them so that sales of the firm can be increased (Kotler and et.al., 2015) 4.Inter-relationships between marketing and other functional departments Marketing is very important function of business unit. It always concentrates on promoting the brand and raising sales of the firm to great extent. Marketing department is strongly interrelated with other functional units. Relationship between several functional unit is explained as below: Marketing department with human resource department- Marketing department through effective marketing strategies like advertisement on social media, television and print media enables the human resource department in attracting the large talent pool so that the process of recruitment and selection becomes effective. If firm fails to recruit talented people then employees will not be able to resolve issues of consumers immediately that would affect overall profitability of business(Dietrich, Rundle-Thiele and Kubacki, 2017). Marketing department with finance department- Finance department has to allocate funds to marketing department. This investment helps the marketing department in conducting market research and gathering information about needs of buyers. In the absence of adequate funds marketing department will not be able to manage its 3
activities. On other hand marketing unit aids in generating sales. Hence finance department get adequate funds so that company can run its operations. In the absence of marketing it would be difficult to make balance between cash outflow and inflow (Chernev, 2018).. Marketing department with production department- Marketing departments gather information about needs of consumers. By this way production department get to know what kind of goods require by clients and this functional unit can produce such products so that consumers can get satisfied. On other hand production department helps marketing departmentin offering satisfactory products to consumers and making them loyal towards brand (Palmatier, Houston and Hulland, 2018). 5-The valueand importance of the marketing role in the context of the organisation Marketing create employment- Marketing is essential part of business unit that supports in creating employment opportunity in business. As through marketing, firm can rise demand of its products and can increase its staff those who can meet this demand in Cadbury. Enhance selling – Marketing is very important in order to increase sales of the firm. By this way enterprise can enhance its profitability to great extent. Marketing build image – Marketing function helps in promoting the brand and create positive image in the mind of consumers. Cadbury has strong brand reputation in market and people have trust on its products. (Chaffey and Ellis-Chadwick, 2019). Competitive advantage- Cadbury promotes its brand in great manner. It uses social networking sides in order to reach to mass audience. It has developed strong relationship with its potential buyers. That has helped the firm in gaining competitive advantage. Profit maximisation – Marketing helps business in maximizing profit and expanding business across the world. Marketing is valuable for the business, as by this way Cadbury can make its consumers loyal and can enhance their awareness about company’s product and services. This is the best way to reach to mass audience and meet the organisational goal successfully. 6- Significance of having effective interrelation within different functional departments Thereisstrongrelationshipbetweenvariousfunctionalunits,significanceofthis relationships explained as below: 4
Effective interrelation create trust within the organisation so department member work effectively and give accurate information . Cadbury company's all department also interrelated so it will create effectiveness and efficiency of the team members. Better customer services- This strong relationship aids in producing quality products and satisfying needs of consumers. This is beneficial in order to provide goods customer services and developing confidence of buyers towards the brand (Pooler, 2018) Enhance efficiency of communication- Effective interrelationship is helpful in improving communication at workplace and minimising confusion as well. By this way company can satisfy its consumers and can retain its skilled employees in business for longer duration (Chernev, 2018). 7. marketing mix of Cadbury and nestle- CadburyNestle productsCadbury is one of the leading service industry in the name of chocolates across the globe. It offers wide range of products likechocolatebars,biscuits, beverages,cookingproducts, candy, gum brands, ice-cream etc. The product delivered by theCadburyworldis“a memorable, exciting and great day out”. Nestleisthelargest multinationalfoodand beverage industry. It provides variety of products that include coffee and tea, dairy products, frozenfood,babyfood, breakfastcereals,petfoods, water bottle, ice-cream, snacks etc. The top brands of nestle are Nescafe, kit kat, Maggie, Nestea etc. placeCadbury has its operations in more than 49 countries across theworldheadquarteredin Uxbridge,westLondon, England. The products of this company are present at many placesandstoreslike Nestle operates in more than 180 countries and has around 445 factories worldwide. They display their productsin the malls,theatres,canteens, hospitals,supermarket,street vendors, bakery shops grocery 5
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supermarket,streetvendors, bakeryshops,malls,general stores and many more (Singh, 2018). stores and public places etc. PriceThe company adopts different pricing strategy like skimming pricing strategy where initially the prices are set high to grab thebenefitofpeople's willingnessforthenew productandalsouses competitivepricingstrategy foritsbasicproductsand premium pricing strategy for its other variants. Nestleusesdemandbased pricing strategy where the cost of each product is dependent onthedemandofthe customers like a high demand for nescafe and maggie induce the company to keep its price high. They also fix the price of theproductincompetition with the Cadbury (Kozlenkova and et.al., 2015). promotionThis marketing mix is the vital partofthemanagement. Cadburyusesvarious promotionaltechniqueslike advertisementsontelevision, print media and posters. It also offersmultipackssothat customers can use those multi packs for gift purpose. They set upexhibitions at the time of festivals in the malls and stores with various promotion offers so that the customers in substitute of sweets could buy chocolates at a lower price in Nestleconnectstopeople throughauniquewayof promotionalactivitythatis launchingcampaignsfor different products and builds tag line for each product so thatcustomersgeteasily attracted towards the product (Dietrich,Rundle-Thieleand Kubacki, 2017). It also uses ATLmarketingtechnique whichmeansabovetheline marketing where a large target audienceiscapturethrough advertisement.Theyalso 6
bulkquantity.Eyecatching chocolate coolers are used by Cadbury so that young and the children get attracted towards the Cadbury products. utilize eye catching techniques where the products are kept at the entranceand exit in the storessothatcustomersget attractedandendupwith buying it. processItdeliversitsproductto ultimateconsumersthrough differentchannelof distributionthatinclude manufacturer, wholesaler and retailer. For example- Cadbury dairy milk is produced at the chocolatefactoryin BournevilleinBirmingham and after all the quality checks it is transported to the dealers likesuperstores,shopsetc (Pooler, 2018). Nestlemanufacturesits productsbyusingthelatest technologyliketheyuse vendingmachinestoserve theircustomersquicklyand easily. They also deliver the productsthroughwholesalers andretailers.Forexample- generalstores,malls,super markets etc. peopleAround71,657no.of employees are working for the companyglobally.Theyuse different practises like training anddevelopmentand motivationaltoolsfortheir employees so that the staff get specialisationinperforming their task and could build up goodcommunicationskills whiledealingwiththe Thecompanyfacilitates employmentopportunitiesto the people and approximately 330,000 people are employed by the company till now. They also provide training to their employees so that queries of theircustomerscanbe resolvedandbetterservices canbeprovidedtotheir customers.Employees 7
customerswhichleadsto effective customer service. organise various campaigns to achieve the objective of sales promotion in various countries across the world (Chaffey and Ellis-Chadwick, 2019). Physical evidencePhysicalevidenceisthe material part of the service that thecustomerreliesupon. Cadbury has its attractive tag line,packaging,brochures, chocolatecoolersasits physical evidence. Nestlehadcreatedabetter connectivitythroughits evidencebysettingthe vending machines at the coffee cornerswiththelogoofits product nescafe and by using different tag lines for different productslike“Nobreakfor education” for kit kat and “2 minutesforeducation”for Maggie. Marketing mix helps in achiving bsuiness objetives-It is one of the effective tool, strategies and covered with tactics that allows firm to promote its product and services in better mode. In addition to it, it defined as strategies and tactics that are needed to be implemented by marketing team in order to promote and develop these strtegies. Hence, with the above discussed marketing mix it has been clarified that each element must be discussed effectively so proper course of action can be taken towards it. 8. Prepare Marketing plan as per planning process. Executive summary Marketing plan is the process that describes overall planning of business unit. Effective marketing plan supports in meeting the objective of business unit in efficient manner. It helps to eactablush goals and tactics for each marketing campaign.It is comprehensive document that aids to outlimne the marketing objetives.Marketing plasy crucial role in terms to attract and keep customersattracted.Thisplanincludessituationalanalysis.Marketingplanalsocovers 8
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marketing mix strategy it will help to reach to right consumers and meet the overall goal (Dietrich, Rundle-Thiele and Kubacki, 2017). Importance of marketing plan-It helps to develop the product and services in order to meet the needs of target market. Therefore, marketing plan emphasize the strategies in order to enhance customer based. Marketing plan aids to evaluate new opportunities exists within market. He planning is the most crucial step that aids identifuy the needs and to go with innovation so that customer can get attracted. Illustration1: Marketing planning process (Source:Strategic Marketing Planning,2018.) Marketing objective : Increase selling of walnuts chocolate by 40% in the end of the 6 months. Enhance customer base and maximization of profit of that chocolate by 30% in the end of 6 months. It is marketing focused company and relies on satisfying the needs of its customers. 9
This firm take various initiative in terms to create new products that build on exising core brands. Mission statement: Cadburymeansquality.Reputationisbuiltuponqualityandensurecontinuous improvement so that the promise is delivered. Vision statement: A peaceful, equitable society, free from discrimination and based on the principle of social justice for all. Standard of performance Cadbury follows legal guidelines properly. It has strong reputation in the market. Core competences Skilled human resource, adequate financial resources, advance technologies are the core competence of business. SWOT ANALYSIS- It is framework that carried out by enterprise in order to identify the internal strenth and weakness and its opportunities and threats. This is effective term that aids developing a marketing plan in effective mode. Cadbury StrengthBrandname-Cadburyhasastrong brand name worldwide that helps the company in enhancing its goodwill in different countries. Loyalcustomers-Thetasteandthe sweetness of the product enhance the customer loyalty towards the company. Large market share- Cadbury operates its business in most of the countries across the world so it has a large market captured that enables the company in achieving its sales target (Singh, 2018). 10
Global presence- Cadbury has a well known presence globally which lets to increase the reputation of the company. WeaknessesUnhealthyproduct-chocolateare regarded as an unhealthy product so it becomes a weakness for the company as health conscious people will not buy it. Lack of coverage- Cadbury is weak in its rural distribution as India has wide rural areas which need to be covered by the enterprise. OpportunitiesBrand extension- Company can go for brand extension in which it can use the brand name of Cadbury for its new products(Pooler, 2018). Sugar free candies- other than calorie products they also facilitate the sugar freecandieswhichactsasagreat opportunity for the company(McDonald and Wilson, 2016). Threatscompetitors-nestleisthebiggest competitor for Cadbury so it acts as the threat for the company. Lowswitchingcost-customerscan easily shift to competitor product so it becomes a threat for the company as the switching cost is very low. Segmentation, targeting, positioning (Core buyer persona and target market) 11
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The STP is process that is defined as having continuous improvement in product and services to differ market segments. It develops product in order to perceived in market. This is defined in following manner as- Segmentation- This aids to define the market into group of potential customers and cadbury has divide on the basis of occupation as well as the age group in market. therefore, it defined as marketing process depends on marketing segmentation and foundation of marketing processes. Cadbury will apply behavour segmentation strategy. in this the decison role is played by thechildren and youngsters. Thus, they play crucial role taking decison to buy cadbury dairy milk. in addition to it, supply chain of cadbury is very very good and quality conscious. Targeting- The main target of this firm is the children and all type of customers no matter at what age they are. They can be yound, old, male and female. Positioning- In this, it can be stated that cadbury dairy milk has made ultimate position in the mind of customers. therefore, there are various promotion techniques and that can be used in order to take the postion in the mind of customers. Thus, this are as electronic media, press media, sign boards, with help of giving discount etc. This would be better in order to target right consumers(Dietrich, Rundle-Thiele and Kubacki, 2017). It will target people on the bases of age and gender. It will mainly target to kids and young female candidates. Furthermore, differentiated targeting will be applied that would help in targeting to mass audience. In addition, company will apply cost positioning strategy. This would give best result to Cadbury and will help company in maintaining its position. Marketing mix strategy- Product– In the range of chocolates walnut dairy milk added as a new product. Now days people are more conscious about the health so customer will prefer walnut dairy milk. Price –premium pricing strategy will be adopted for walnut Dairy milk to gain the benefit of people's desire for this new and nutritional product. Promotion -Promotion strategy generate awareness and influence customer to try product. It will helps in increase customer and profit maximization of the company (Kozlenkova and et. 12
al., 2015). Company will have to promote and advertise their business idea through social media , television and newspaper. Place-Walnut dairy milk chocolate will be distributed across the world because Cadbury company already have wide network and huge customer base. Budget Overall budget of marketing plan for the product of CADBURY would be 4000 Pound. Marketing expenses 180 Pound Utility bills 70 Pound Salaries 100 Pound Administration cost 50 Pound Total cost400 Pound Evaluation and monitoiring the mrketing plans with aid of using appropriate control and evaluation technique- Sales analysis- It is analysis that aids to defined that how stock inventory, measurement of effectivess of scale, effective manufacturing capacity and to perform all against it goals. In addition to it, the cadbuyd shoud uses the break even sales analysis that aids to show that a minimum level of sales must be made in order to make sure they do now want lose money. thus, it aids to show the sensitive break even point. Market share analysis- To determine the effectiveness of amrket is one of the probabale cause. In addition to it, expansion of marketing budget is a plan that works as to working well and to gain effective support to the enterprise. It also supports to show that how well firm is doing with their competitiors. 13
Cost profitablity analysis-It is consist of target profit plan and applying teh control measures. There must be no change in teh strategy of marketing. Therefore, price can be reflected with having chnages in input cost and competitiev activity. Efficiency raito- It is ocncerned with the process with aids of ehich the plan can be delievrd to produce outputs. In addition to it, this is concerned with the output and that can also be determine with maximisation of output for the resources that needs to be allocated. Hence, evaluation must be carried out in termed to define the variation between actual and planned performance. Among all of this, cadbury uses the cost profitablity analysis so that rator of profit and price of product mabufacturing can be identified. if there is any difference between actual and planned then corrective action must be taken towards it. CONCLUSION From the above report, it is concluded that marketing plays a vital role in increasingsales and meeting demands of the customers through different promotional strategy. The key role and responsibility of the marketing managers is to attract the customers and to increase the profitability of the Cadbury. Manager can use marketing mix strategy and can prepare a marketing plan as an efficient marketing strategy so that brand image of company canbe enhanced. Recommendations Cadbury should work as to identify the needs and wants of customers in order to cater their demand in relation to specific commodity in market. In present senerio, the most of the customers are the health consicous so that they need to produce the commodities that contains low calories. The quoted firm should provide customer the better quality commodities at the resoanble price so that it can attract the customers. 14
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