Marketing segmentation, targeting and positioning

Marketing Segmentation,
Targeting and Positioning

Table of Contents
TITLE .............................................................................................................................................3
CHAPTER 1: INTRODUCTION ...................................................................................................3
Background to the research ........................................................................................................3
Organisational background.........................................................................................................4
Significance of the research .......................................................................................................4
Statement of the problem............................................................................................................5
Research aim and objectives.......................................................................................................6
Research questions .....................................................................................................................6
Structure of the dissertation........................................................................................................6
LITERATURE REVIEW ...............................................................................................................9
RESEARCH METHODOLOGY ..................................................................................................19
Results and Discussion .................................................................................................................25
Reflection and alternative research methodology..........................................................................27
REFERENCES .............................................................................................................................29

TITLE
How important is the Segmentation, Targeting and positioning strategy for a business in
the confectionery industry? A case study of Cadbury.
CHAPTER 1: INTRODUCTION
Background to the research
Segmentation, targeting and positioning are interconnected marketing process that will
help an organisation in attraction of more customers towards brand. STP is a marketing process
progressively explains the marketing strategy decisions for an organisation. Marketing
segmentation introduces to the process of splitting market into small groups with related product
requirements or identifiable characteristic, for the motive of choosing appropriate target markets.
Targeting refers to an organization’s proactive choice of a appropriate market segments with the
purpose of heavily emphasising the company’s marketing offers as well as activities towards this
group of similar consumers (Akbar and et. al., 2017). Positioning introduces to the target
market's perception towards the product's key advantages and features, in relation to the
offerings of competitive items. There are different importance of segmentation, targeting and
positioning strategies such as: makes marketing efforts more economic and efficient, facilitates
proper choice of target market, assist crystallizes the requirements of target market as well as
ellicit more predictable responses from them. Therefore, STP is important and essential strategies
of marketing that supports company by increasing customer base, reducing marketing cost,
increasing sales, improving brand image and enhancing brand awareness among customers. All
these will assist company in attainment of competitive advantages as well as achievement of long
term goals and objectives in less period of time. For this dissertation Cadbury is a chosen British
multinational confectionery company that specialise in selling of chocolates to the customers.
USP of Cadbury is one of the largest and most trusted chocolate brand in all over the world.
The segmentation of Cadbury products is supported on mix of psychographic,
demographic and behavioural factors; for example on the basis of occasions and Income.
Segmentation of Cadbury is belongs with people who purchase chocolates for eating or gifting.
Target market of Cadbury are children and families who belongs to lower, middle and upper
middle class (Ali and Kaldeen, 2017). Positioning of Cadbury, it is a sweet for happy occasions
or auspicious beginnings.

Organisational background
Cadbury is a chosen organisation for this dissertation. It is a British multinational
confectionery organisation that was founded in 1824 by John Cadbury. Confectionery refers to
the art of making confections, which are food products that are rich in carbohydrates and sugar.
Cadbury is the second biggest confectionery organisation in the world after Mars. Cadbury in
globally headquartered in Uxbridge, west London as well as operates in different countries
worldwide. Company is well known for its Dairy milk chocolates, Creme Egg and roses
selection box, as well as many other confectionery items. Portfolio of Cadbury products are
divided into different types including Temptations, Oreo, Dairy milk, Bournvita, Perk, 5 Star,
Gems etc. All these are main products produced by company to their customers.
Segmentation, targetting and positioning abbreviated as STP is a common tool in
marketing which is used to categorise and target prospective customers for a business. Cadbury
which is a renowned name in the confectionery business have been employing this marketing
tool for better sales. Segmentation is the first step which involves categorising people on the
basis of their similar characteristics. The major segments which are formed by Cadbury are on
the basis of occasions & income. All the consumers are targetted such as Cadbury Temptation
are formed for high end consumers where are dairy milk are for lower end of income. Targetting
stage focuses on evaluating the different consumers segments so that most profitable target
segments are identified (Dangelico and Vocalelli, 2017). This mega manufacturer targets all the
people belonging in the age group of 5-50 years who like eating chocolates. All the consumers
belonging to different income segments are targetted such as Cadbury Temptation are formed for
high end consumers where are dairy milk are for lower end of income. Positioning refers to
formation of mental models which help in differentiating a brand from its competitors. A
positioning is successful when an intended message when it is perceived appropriately by the
target audience. Cadbury positions itself as a chocolate which is meant for all irrespective of
their ages. The use of purple packaging have been a distinct recognition of sweetness and trust.
Significance of the research
This research is important at personal as well as academic level. At personal level this
research helps investigator by improving their research skills including data collection, data
analysis, literature review, time management and many others. All these skills helps researcher in
completion of full dissertation timely and systematically. At academic level, this research helps

students by enhancing their knowledge about the importance of segmentation, targeting and
positioning for an organisation. STP is an important and significant marketing process for
company because it will support them in increment of customer base, reduction of marketing
cost, increment in sales etc. If this research is publish will support organisation, industry or
person by increasing their awareness regarding the segmentation, targeting and positioning and
its importance in context of an organisation. Along with this, current investigation is significant
in attainment of research aim and objectives (Gachimu and Njuguna, 2017).
Main rationale behind doing this investigation is to identify the significance of
segmentation, targeting and positioning in enhancement of business performance. With the help
of this research, researcher can easily basis understand about the Segmentation, Targeting and
positioning strategy in context of an organisation. This study also support investigator in
identification of the significance of Segmentation, Targeting and positioning strategy in
improving business performance of Cadbury. This investigation will also help investigator in
identifying of dependence of targeting and positioning over activity of segmentation in effective
implementation of STP (Kirova, 2017).
Statement of the problem
Segmentation, targeting and positioning are important strategies of marketing for
company. If an organisation not follow this, they may face certain problems such as lack of
customer base, higher cost of marketing, decreased business success etc. All these are major
issues faced by company if they not follow STP. There are certain challenges of segmentation for
business such as forgetting about individuality, sending the wring message, ignoring potential
audience and many other. All these are major challenges that will negatively impact on business
performance. There are also some problems related within targeting strategy including time-
consuming, considerations, expensive and omission of other customers. Along with this, there
are some ways to determine if positioning of company works. These are lack of quality inbound
leads, decrease in proposal win rate and so on. This create more difficulties for company in
improvement of its performance and productivity level (Moges, 2017).

Research aim and objectives
Research aim and objectives are important part of dissertation because each activity of
study is depend on aim and objectives. Research aim expresses the aspiration or an intention of
the study. It summarise in a single sentence that support in achievement of research objectives.
Research objectives explains what researcher expect to accomplish by a project. Research
objectives will be frame with the help of dependent and independent variable. Within an
investigation business performance is dependent variable because it is dependent on
segmentation, targeting and positioning strategies (Mokaya, Kanyagia and M’Nchebere, 2017).
There is aim and objectives of the study which are:
Research aim:
Main aim of this dissertation is “To identify the importance of Segmentation, Targeting
and positioning strategy for improving business performance of an organisation within
confectionery industry. A case study of Cadbury.
Research objectives:
 To develop basis understanding about the Segmentation, Targeting and positioning
strategy in context of an organisation.
 To ascertain the dependence of targeting and positioning over activity of segmentation in
effective implementation of Segmentation, Targeting and positioning.
 To identify the significance of Segmentation, Targeting and positioning strategy in
improving business performance of Cadbury.
Research questions
 Explain about the about the Segmentation, Targeting and positioning strategy in context
of an organisation?
 What will be the dependence of targeting and positioning over activity of segmentation in
effective implementation of Segmentation, Targeting and positioning?
 How Segmentation, Targeting and positioning strategies help Cadbury in improving its
business performance within confectionery industry?
Structure of the dissertation
This is an essential part because it helps reader in identification of requirements regarding
the chapters that helps in completion of full dissertation. There are some important and useful

chapters for completing this dissertation. These chapters will be defined as below apart from
their purpose in completion of research. These are:
Chapter 1: Introduction: This is a first activity of dissertation that consists of different elements
including, background of the study, overview of selected organisation, research aim and
objectives, research questions, significance of the study, statement of the problem etc. All theses
are major parts for completing first activity which is called Introduction (Schlegelmilch, 2016).
Chapter 2: Literature review: This chapter of dissertation helps researcher in gathering of
secondary information from secondary sources i.e. magazines, books, articles etc. In this part of
dissertation, authors have to create critical evaluation about the research questions. Main purpose
of literature review is finding of research gap in previous studies. In this section, different
authors provided their opinion about the topic.
Chapter 3: Research methodology: This chapter is useful in Identifying of effectiveness of
research methods according to the research title. This section consist of research philosophy,
research approach, research strategies, research choice, time horizon etc. All these are useful part
of research onion framework that will be applied within an investigation for achieving research
aim and objectives. Main purpose of this research methodology is to provide reliable data to the
researcher as it will helps them in completion of dissertation successfully. Current study is based
on secondary research and for collecting secondary data, there are number of sources that will be
followed by investigator such as articles, magazines, publication research, journals, books etc.
All these are useful sources in gathering of secondary information accurately and systematically
(Takata, 2016).
Chapter 4: Results and Discussion: This chapter helps in analysing of data effectively.
According to the current dissertation, secondary data has been collected for literature review.
This section of study helps in analysing and discussing of secondary information collected for
literature review from journals, books, articles and many other sources. This part of the
dissertation supports in attaining of valid outcomes as well as achievement of research aim and
objectives successfully.
Chapter 5: Conclusion and Recommendations: This is a last activity of dissertation that helps
reader in identifying of achievement of research aim and objectives. In conclusion, researcher
will explain information of each chapter in short and clear manner. In recommendations, some

suggestions will be provided to the company or industry in improvement of its business growth
or success (Winston and Weinstein, 2016).
Summary of the chapter:
Introduction is an important chapter because it helps in developing of research aim and
objectives. With the help of this chapter, researcher identified the importance of research. This is
essential in identification of main purpose behind doing this investigation. Along with this,
introduction part of dissertation is essential in preparing of another chapters such as literature
review, research methodology, data analysis and findings, conclusion and recommendations.
Therefore, introduction is important in identifying of overview and background of the study.

LITERATURE REVIEW
Literature review is the process of gathering secondary data from various sources which
are consider publication research, journals, books, magazines etc. All these are useful sources
and helps investigator in collecting of secondary information regarding the segmentation,
targeting and positioning. In this part of the dissertation, different authors have to provided their
view regarding the research aim and objectives. Main purpose of literature review is to find out
research gap in previous studies. In current investigation, main research gap is the importance of
Segmentation, Targeting and positioning strategy for improving business performance of an
organisation within confectionery industry. In previous studies, there were data available about
the Segmentation, Targeting and positioning strategy but there were missing or lack information
regarding its importance in improvement of business performance. Research questions will be
used by investigator for fulfilling research gaps and attainment of research aim and objectives.
Therefore, research questions of the current investigation will be explained as below for fulfilling
missing data. These are:
Explain about the about the Segmentation, Targeting and positioning strategy in context of an
organisation?
According to Lapaas, (2020), marketing management includes different concepts such as
segmentation, targeting and positioning which are parallel to each other but equally important for
an organisation to understand their importance while framing an effective marketing strategy.
Segmentation is defined as the division of population on the basis of their different attributes
such as taste and preferences, income level, caste, religion etc. It makes easy for an organisation
to identify their targeted customers according to their list of offerings which is known as
targeting. Targeting can be called as sub part of segmentation that plays a critical role in their
marketing mix. After segmenting the population on the basis of their needs and preferences and
other attributes, an organisation tries to identifies part of population that prefers to buy their
offered products and target them by using different marketing channels. The last concept of STP
is positioning in which an organisation ensures that a right message must be conveyed to their
targeted audience by placing their products at right market. It facilitates their targeted customers
to understand the benefits they can receive if buy company’s products and services. This will
increase the chances of achieving long term sustainability of their products and services in the
competitive market.

According to Bhasin 2019, segmentation of Cadbury products is combined basis of
demographics, behavioural and psychophysics which includes income and occasions. The
products and services offered by Cadbury are mostly based on production capacity, pricing of
various items, packaging designs, celebrity endorsements and many other factors. Consumption
of Cadbury products are from all age groups but distinguished their products to specific class of
consumer groups. For an instance, Cadbury Temptation and Bourneville are produced with an
objective of attracting higher income group of people who are willing to spend more.
Bourneville is position as best dark chocolate among rivals products which is currently promoted
by brand as category innovator. This chocolate is positioned as a chocolate for people who lives
abroad and searching for an international taste of chocolate.
Market segmentation is the effective process of subdividing or separating a market into
various subsets of clients that behave within the same way as well as have similar requirements.
It is completed in order to adjust marketing program to identify customer differences. There are
different purpose of segmentation such as improving branding, increasing sales, better
advertising and better distribution. It can be completed on the basis of certain variables such as
geographic, behavioural, demographic and psychographic. Cadbury Bournville has segmented or
classified the entire market that was based on three parameters such as demographic: Age: 12-19
years, 20-34 years, psychographic: Socio-economic classification: A1, A2, B1, B2, C, D, E1, E2
and behavioural: Occasionally, medium usage rate, quality service, strong brand loyalty.
A target market refers to the group of clients towards which an organisation has decided
to goal its market efforts as well as ultimately its merchandise. Target customers of Cadbury
Bournville is not all customers, they are those who love chocolates. The Cadbury Bournville is
intending the 20 to 30 year old SEC A segment.
Positioning introduces to client's perception of the place a brand or product occupies
within a market segment. In certain market, position is accomplished by associating the
advantages of a brand with the life style or wants of the segments. Positioning of an organisation
involves the differentiation of the business's offerings from the rivalry by developing or implying
a comparison in way of particular attributes. Positioning refers to the marketing idea that outlines
what an organisation should do to market its services or products to its clients. In positioning,
marketing department of an organisation develops an effective image for the brand or product

based on its audience or customers. This is developed via the use of product, price, place and
promotion.
As per the view of Uddin I. (2018), one of the efficient and relevant marketing strategies
now these days is STP that considers three stages marketing strategic activity. This splendid
marketing model is the second widely adopted tool only beaten by the popular SWOT/TOWS
analysis. In diverse cases, marketers have to create a marketing communication plan in reference
to prioritise propositions and then set up and offer reliable and personalised information to get
the attention of different users and clients. In this situation, the STP analysis plays an effective
and critical role. Moreover, the model also focuses on the commercial efficiency by selecting the
most essential segments for an establishment like Cadbury (Wuryandani, Ismoyowati and
Nugrahini, 2018). By segregating the market in to segments, marketing administrators can obtain
an effective understanding of the demands and desire of target audiences. It helps them to modify
or to tailor he firm’s marketing practices more appropriately and responsibly to the individual
customer’s likings. Segmentation marketing supports business in attaining and surpassing their
target audience’s needs. It may also permit them to measure the rival’s capability and
weaknesses. In this manner, they could discover business growth options in markets that were nit
provided well so effective marketing segmentation is required for evaluation, sustainability,
openness, action ability and others.
Targeting is an action of measuring the attractive of the customer segments and analysing
how to get attention of customers. An establishment like Cadbury choice of customer segment
widely based on the commodity and facility they are providing. It also analyses the marketing
strategy the firm will employ. Markets that are undiversified are suitable for mass marketing.
Whether an organisation determines to enter one or more segments may also base on its assets. If
these are restricted, it may be effective served to concentrate on one or a few smaller segments
that acknowledged as niche market. Positioning and segmentation is highly associated and based
on each other (Shah, Azhar and Bhutto, 2019). Positioning is the activity of coordinating or a
commodity to occupy a clear, distinctive and desirable place associate to competing goods in the
minds of consumers depends on the differentiation. The position of product is the one and main
thing that a customer would think of hearing the name of it. This position should be selected so
that it is differentiated from other rivalry commodities to the high level possible and direct the
greatest benefit in the target market. Thus, the firm should first find out potential consumer value

differentiation that offer rivalry benefits on that the position can be built on. After the firm has
selected a desired position, it can consider the phases required to deliver and communicate that
post to target customer by differentiation. If the expected position to be seen as the cheapest
good in the marketplace, the product should be distinguished by an unusually low cost.
On the other hand, market segmentation is an effective activity of classifying a business
market or broad consumer, especially consisting of existing as well as potential clients, into sub-
group of clients. In segmenting or dividing markets, investigators typically observe for common
characteristic including shared needs, similar lifestyles, common interests or even similar
demographic profiles. The entire aim and purpose of segmentation is to recognise high yield
segments. Additionally, segmentations mean to classified the marketplace into segments or parts,
which are accessible, actionable, profitable, definable and have a development potential. In
other words, an organisation would analysis it not possible to target the whole market, because of
cost, time and effort restrictions.
Targeting refers as an advertising mechanism that permits an organisation to segment
some customers, who meet an outlined set of criteria, from the common customer. It support an
enterprise in increment of effectiveness of the campaign. It is also applied in e-marketing for
segmentation. Targeting is important for company because without proper targeting strategy,
product promotion of business is doomed to failure. In order to sell successfully, firstly company
require understanding who their selling to, and then getting the most appropriate techniques and
strategies for each segment. With an effective plan, company will be capable to reach some goals
including attract quality leads, stay competitive, improve their services and products etc.
Therefore, targeting is important part of the business growth and success in customer's mind and
in marketplace.
Positioning is outlined as the conceptual place an organisation wants to own in the mind
of target consumers. An effective and essential brand positioning strategy will help an
organisation in maximisation of competitive distinctiveness and customer relevancy, in
increasing brand value. Positioning of company is important for them in attraction of large
customers that results in higher growth and success. Market positioning introduces to the
systematic process of setting the effective identity or image of a product or brand so that
customers perceive it in a different way.

Therefore, segmentation, targeting and positioning are important strategies for an
organisation in attainment of competitive advantages easily. Segmentation, targeting and
positioning supports an organisation in understanding the wants and requirements of its targeted
customers. Segmentation of market also supports in positioning and targeting its products.
To ensure that they are able to perform their services in an adequate manner, firm has
opted to make use of STP (Segmentation, targetting & positioning) which denotes fundamental
concept within marketing success. This is liable for guiding Cadbury within development and
execution of adequate marketing mix.
As per the diagram, the STP process will lead organisation within improvisation of
marketing mix of designs. This collectively leads to creation of product positioning that in turn
appeals to their target market customers. This acts like a fundamental concept within the
understanding of marketing as well as strategies of organisation.
Segmentation: The process associated with subdividing market within different subsets
of consumers which behave in identical manner or comprises of identical needs then it is referred
to as segmentation. In this case, each subset might be chosen conceivably like a market target
that has to be chosen like a market target that has to be reached with unlike marketing strategies.
This is carried out for making adjustment within marketing program through which customer
differences can be recognised. The segmentation will aid within improvisation of branding,
better distribution, enhanced advertisements and better distributions. Cadbury can do this by
taking into consideration different variable, they are illustrated below:
Illustration 1: The STP Process

 Demographic:This segmentation is based on the income status of customers. For this,
Cadbury has divided their products into two category including premium products and
basic products. In premium product, there are certain products produce by Cadbury
including Dairy milk silk, Dairy milk glow and many others. In basic products, there are
also different types of products such as Dairy milk, Dairy milk shots etc. Psychographic: Segmentation of Cadbury dairy milks product is done on the basis of
'size' as large blocks, small blocks, bars. Behavioural: Such type of segmentation is divided into three areas which are occasions,
gifts and user status. In occasions, Dairy milk product has changed the scenario oh having
chocolates from having it casually to occasionally. Along with this, large number of
peoples are give Dairy milk chocolates as a gifts on various occasions. Under user status,
there are commonly the regular customers found in the user status of Cadbury Dairy
milk. Behavioural segmentation is also divided into occasion segmentation and in this
segmentation, celebration, after dinner as dessert etc. are main types. Geographic segmentation: Under this type of segmentation, Cadbury products are
classified into different areas such as rural, urban and semi urban.
Targeting: Cadbury the chocolate leader and aim is to target children between the age
group of 5-10 who consume chocolate the most. Along with this, the target customers of the
Dairy Milk have been from advertisement to advertisement and time-to-time.
Positioning: Cadbury provides a friendly, contemporary and warn environment where
customers or users can includes themselves with the chocolate of Cadbury. In order to make sure
this premium position, company set out to distinguish the experience from chocolate retailers and
coffee shops on the high streets as well as in shopping centres/malls.
What will be the dependence of targeting and positioning over activity of segmentation in
effective implementation of Segmentation, Targeting and positioning?
According to the DIXIT 2020, Targeting and positioning allows an organisation to
develop marketing strategy to effectively target individuals from mass market as to satisfy them
with organisational offerings. With the help of this business organisation can gain significant
benefits and can further assure more growth and long term advantages. It has been evaluated that
targeting and positioning is having higher amount of dependency upon activity of segmentation.
As it has been identified that it is essential for an entity to target customers for more growth and

development, for this they are required to evaluate market on the basis of various factors. In
terms with Cadbury, this has been evaluated that entity by conducting PEST analysis can
significantly identify various form of opportunities as well as threat upon organisational
functions (SEGMENTATION – TARGETING – POSITIONING. 2020). While if it is talked about
positioning, this has been duly determined that in this management of Cadbury can undertake use
of marketing mix, positioning map and unique selling proposition. With the help of this
respective organisation can effectively position their offering in market. Further as per according
to organisation size of Cadbury it has been evaluated that entity is a multinational organisation.
Thus, it becomes essential for company management to target large market. In addition to this
entity is also required to anticipate that their profits must exceed their input cost. Every target
market is required to be accessible to team in order to ensure that all the essential and required
informations are being provided to customers in target market accordingly.
As per the view presented by Das 2020, Cadbury is also required to position their
products and services in target market in a well defined and effective manner, for this entity must
ensure that they have formulated propositioning objectives. In addition to this company must
also develop positioning strategy by involving three essential elements that are competitive
advantage, customer targets and competitors targets. Thus, according to the above mentioned
evaluation it has been evaluated that it is important for respective organisation to effectively
emphasise upon targeting and positioning as it is having great dependency upon segmentation
activity. With the help of this entity can effectively place their services as well as products in
efficient manner in marketplace.
As per the view point of Li and Soulivanh, 2020 it is being determined that there are
various ways through which Cadbury can use targeting and positioning method for efficient form
of implementation of segmentation, targeting and positioning. For instance with the assistance of
Pest evaluation entity can effectively able to determine different type of factors like political,
economic, socio-cultural and technology (Demidova, Gusarova and Kulachinskaya, 2020). It will
significantly assist entity to overcome any form of analysis and further facilitate them to
formulate goals through which they can gain more economic advantages. Thus, according to
analysis this is being evaluated that both the process targeting and positioning allow Cadbury to
undertake the process of segmentation as in this they are required to segment customers in a
market segment according to demographic factors like eduction, gender, occupation and more.

Segmentation is also required to be done of the basis of following factors like geographic,
psycho graphic and behavioural (The Importance of Targeting in Marketing (And How to
Include It in Your Strategy 2020). Thus, according to the above mentioned analysis this is being
evaluated that positioning as well as targeting plays crucial role through which target customers
can be duly identified as per according to various factors like competitive resources, needs and
demand of customers and more. Positioning allow entity to effectively understand needs of
consumers through which entity can take use of right channels of communication to provide key
messages to customers. Further this is being identified that with the help of positioning
management of Cadbury can effectively differentiate their products as well as services from
other competitors. In addition to this, it also facilitate towards building more deeper customer
loyalty. Along with this, it also aid entity to stay focused through which more opportunities can
be evaluated for future growth (Dicky and Mansoor, 2020). As this has been determined that
with the formative assistance of targeting entity can make themselves more specific about
direction, marketing strategies as well as initiatives.
Market positioning is a capability to impact the customer perception toward the products and
services which are offered by the firm with the purpose of fulfilling and providing satisfaction to
their needs and demands. The objective of market positioning is to set up the image or identity f
a brand or commodity so that customer perceives it in a certain manner. In context of Cadbury to
build a effective and good position in market, the firm can consider diver market position
strategies and approaches like innovative product quality, changing price of committees and
many more. By adding certain characteristics and beneficial value in its current products they
can make an immense market position. log with by changing price of commodities and adopting
or implementing innovative pricing strategies they can reserve a effective brand position. By
offering quality products to its customer can also help in providing a good market position as
now these days people are ready to efficient quality commodities which have some value (Zhang
and Wang, 2019). In addition to this, due to having information an awarding with the needs of
target audiences, the firm can offer goods and services according to them. It help in fulfilling and
providing satisfaction to customers’ needs and establishing a better and appropriate market
position.
While if it is talked about effective positioning it has been signified that with the help of
good postponing organisation can more effectively learn about their organisational offerings?

Along with this, this is being determined that it is important for Cadbury to effectively undertake
the process of positioning in order, for this they are required to undertake advantage of
conceptual idea and make sure that it is not copied. As differentiation is a most important aspect
with the help of which more competitive advancements can be gained. Thus, in accordance with
the above mentioned evaluation it has been evaluated that it is essential for Cadbury management
to ensure that they take advantage of good positioning and it must be unique from other rivals.
Along with this their positioning statement is also required to be believable and target actual
need or preferences of customers. For instance, now day’s customers are looking forward
towards more healthy options and lower sugar intake. Thus, as to gain more competitive edge in
respective industrial sector it is essential for Cadbury to offer their customers with low sugar
products. In addition to this as to reach out to more number of customers it is essential for entity
to undertake significant advantage of various forms of marketing communications as well as
sales presentations especially on digital platforms (Dicky and Mansoor, 2020). For this cadbury
management must create sample marketing materials such as web site content, press release, e-
mail etc. in order to effectively test usability. Thus, by undertaking all these measures into
consideration and effectively emphasising upon targeting and postponing respective entity can
implement segmentation, targeting and positioning in best effective manner. It will further assure
them to have higher productivity and productivity. Along with this, with the help of this they can
also ensure their long term sustainable growth and higher competitive advancements.
How Segmentation, Targeting and positioning strategies help Cadbury in improving its business
performance within confectionery industry?
As per the view point of Kaul (2019), It can be said that conducting frequent STP is
helpful in improving the business performance. The justification for the same is that application
of STP for Cadbury will be helpful in enhancing value and improves the effectiveness and
efficiency of marketing activities which are conducted at Cadbury. This approach is easier to
apply for an organisation. It begins with dividing or segmenting the market into clusters
considering their favourable characteristics. Further, out of the clusters the most suitable ones are
chosen and targetted with marketing strategies and initiatives by the business. The marketing
initiatives are formed in the manner that they create a distinct identity of the business in the
minds of consumers.

As per the opinion of Slyuta and et. al., (2019), STP promotes in identification of needs
and wants of the consumers and fulfilling the same with value proposition. Their needs, values
and lifestyle are taken into consideration so there is a lower chances of upsetting the target
audience. The continuous focus on profitable and valuable market segments promotes the
chances of attaining success in the market. When the consumers will be able to relate to the
promotional programs they will be persuaded to buy more of company's products resulting in
higher profitability. Therefore it can be finally said that value proposition and tailored marketing
are the key contributors to the success of a business.