Principles of Marketing: Analysis of Marketing Mix and STP Marketing Planning Process

This document provides an analysis of the marketing mix and STP marketing planning process in the context of Cadbury, a multinational brand of chocolates. It discusses the effectiveness of the marketing mix elements and compares Cadbury with Excellence milk chocolate bar. The document also explains the segmentation, targeting, and positioning strategies used by Cadbury.

Principles of
Marketing

INTRODUCTION.......................................................................................................................................4
TASK 1.......................................................................................................................................................4
Analyse the effectiveness of the marketing mix for any given company or brand...................................4
TASK 2.......................................................................................................................................................6
Demonstrate knowledge of STP marketing planning process..................................................................6
CONCLUSION...........................................................................................................................................8
REFRENCES..............................................................................................................................................9

INTRODUCTION
The marketing mix refers to a methods, tactics and actions which are used by the companies to
promote the brand and products in the market. All the elements of marketing mix are influenced
by each other and marketing plans are made by considering the 4 P’s which are price, product,
promotion and place. These are the factors which are analyzed by various companies before
launching a product or in increasing the profitability from their product and brands. STP
marketing also plays an important role in developing the size and increase the profits of products
and brands of a company offering to the people. STP refers to segmentation, targeting and
positioning in the market. These are the factors which are studies in this report in context with
Cadbury a multinational brand of chocolates which has a worldwide reach and it is a UK based
multinational company. In reference with Cadbury these approaches are considered along with
conclusion.
TASK 1
Analyse the effectiveness of the marketing mix for any given company or brand.
Efficiency of the marketing mix can be analysed by studying about 4P’s of the company. In
context with Cadbury marketing mix is explained with the help of comparing its 4P’s with
Excellence milk chocolate bar which is also a big brand such as Cadbury. Analysis and
comparison between both are given below:
Marketing mix Cadbury Excellence milk bar
Product It offers a wide variety of
products such as candies,
beverages, biscuits and
various types of chocolates. It
offers products which differs
from various demographic
factors and production costs
incurred from the making and
serving the people with their
products. Its product has a
good market share and also
becomes a market leader. It
offers products according to
wants of the customer to
satisfy them. It has a huge
impact on the minds of
customers and continuing to
grow rapidly. (Gilmore and et
.al., 2020)
It is specialized in chocolate
products which also offers a
variety of products such as
hazelnut chocolate, ieish
cream, almond flavor, peanut
butter and a variety of the
products are offered to
customers. They also focus on
innovating the products as it
has become a need and want
of customers that an up
gradation in the product is
welcomed nowadays. They
offer the products according
to needs and changing
conditions.

Price Products of the Cadbury had a
wide distributing strategy.
Cost of the products offered
are reasonable which makes it
affordable for everyone to
purchase their products. They
also offer skimming price
products for some people who
can afford and desires new
products at any prices such as
Oreo biscuits, Bournville,
Cadbury silk and many other
products whose prices are
higher and cannot be
affordable for everyone. But it
gave consideration to every
type of customers and offers a
wide variety by adopting
different pricing strategies.
It faces a fluctuating market
as it operates in oligopoly
market. It offers a wide
variety of products but as it is
a premium brand its price is
high. It offers a good quality
products ass quality of the
product is maintained by
incurring more cost on the
making and maintaining the
products. As it is a luxury
brand it offers premium price
strategy which is not
affordable by everyone. A
segment of customers are
targeted by the company who
can afford their products. It
has positive and negative both
the aspect that company deals
with high class customers but
it becomes a limitation for the
company that its products are
purchased by only a class of
customers(Solimun,
Fernandes, A.A.R., 2018).
Place Cadbury has a chain of
distribution which is spread all
over the World. Due to its vast
distribution it has become
successful in making huge
impact on global market.
Products of the Cadbury are
available in urban as well as
rural areas of the world. It has
made its brand name in more
then 200 countries. But it has
a weak strategy towards the
distribution in rural areas as it
does not have that much reach
which is in urban areas of the
countries. This shows that it
has a strong distribution
strategy and covered various
places which helps it to grow
rapidly ( Thaichon and et .al.,
It has wide variety of products
but as it is a premium product
which is not affordable by
everyone which is a reason for
the limited distribution of their
products. It serves their
products in more then 100
countries and they also take
orders via online mode. They
have diversified its products at
a large level. As nowadays
people prefer quality over
quantity so it becomes a plus
point for the company to
expand their business in more
countries. Moreover, it can
impact negative in the
countries where income and
spending capacity of the
people are less by which their

2020). products may not attract the
people towards their products.
Promotion Promotion plays an important
role in marketing of a
company such as Cadbury. It
has been using several
methods for promoting their
products and making aware
about the products they offer.
It provides a lot of
information online, promotes
their products at
supermarkets, shops and
through social media. It also
spends a lot of money by
using celebrity endorsement
of social media and
television. The company also
has various ambassadors for
various product which makes
a positive impression on the
mind of people and attract
more customers towards their
products( Hostetter Jr, L.R.,
2017).
It also uses print advertising
and promotion through digital
media. They also uses
respectable public figures
which has a huge importance
and impacts positively on the
minds of the people. As it is a
premium brand it uses to
advertise at airports, trains and
big shopping centers of the
world. This act as a
opportunity for the company
to covert the people into their
potential customers by
offering a experience to feel
good with the taste of their
products.
From the above study of the marketing mix of Cadbury and Excellence milk chocolate bar it is
inferred that both are the multinational brands which have a wide variety of products and a large
distributing strategy. The only a positive aspect of Cadbury is it provides luxury as well as
normal range of products which is affordable by every class of the customer. But, in case of
Excellence milk chocolate bar it is a premium and luxurious chocolate brand which everyone
cannot afford and only a segment of customers are attracted towards the company.
TASK 2
Demonstrate knowledge of STP marketing planning process
STP stands for segmentation, targeting and positioning of the products and services of a
company. It is a modern approach which is useful in creating communications with different
audience. It also helps the marketers prioritize the propositions and deliver personalized
messages which attracts more customers towards their company. In context with Cadbury STP
marketing model refers to target the segment of the customers with marketing campaigns and to

know about their priorities and preferences. It also tells about the way in which the needs and
desires of the customers can be fulfilled by the products and brands which Cadbury is offering.
Segmentation refers to divide the customers into groups for using the segmentation practices.
Targeting determines the group the customers which is measurably targeted by the company and
make efforts to attract the customers. Positioning of the product means presenting the product
and analyzing marketing mix of the company by which the products get success in appealing the
targeted customers( Gonchar and et .al., 2020).It is a approach which is taken into consideration
by Cadbury in a three way process which is explained below:
Segmentation: It is a first step of marketing model in which the main motive of the Cadbury is
to segment or divide the customers based on specific criteria. There are four types of audience
segmentation:
 Demographic segmentation: It divides the audience on the factors such as age, level of
literacy, gender and level of employment.
 Geographic segmentation: It divides the audience on the basis of country, state ,
province etc.
 Behavioral segmentation: In this audience or customers are divided on how they
behave towards the business. What type of products they prefer, browse and buy etc.
 Psychographic segmentation: It divides the audience of a company according to the
opinion towards the product and services, activities they perform and lifestyle they carry
etc are taken into consideration.
Targeting: It is the second step of STP model.. An ideal segment of targets the class of
customers which involves low cost and more profits. In context with Cadbury there are factors
which are taken into consideration are:
 Profitability: It studies about which segment is able to give better results towards the
products of the Cadbury.
 Reachability: It consider how easy and hardship is faced by the Cadbury to reach its
customers at a low cost.
Positioning: It is the last step which is studied to set the products of Cadbury apart from
competition. Factors which are taken into consideration are:
 Functional positioning: It solves the problem of customers and provide genuine
solutions.
 Experiential positioning: It considers emotional bond of the customers with the
products of Cadbury( KAWSAR and et .al., 2018)

CONCLUSION
It is concluded from the above report that Cadbury has a wide variety of products which is afforded by
every segment of the people. It has been explained above from above comparison of Cadbury with
Excellence milk chocolate bar. STP model is also explained with the factors which are taken into
consideration while studying this model.

REFRENCES
Books and Journals
Gilmore and et .al., 2020. Four questions of entrepreneurial marketing education: Perspectives of
university educators. Journal of Business Research, 113, pp.189-197.
Solimun, Fernandes, A.A.R., 2018. The mediation effect of customer satisfaction in the
relationship between service quality, service orientation, and marketing mix strategy to
customer loyalty. Journal of Management Development.
Hostetter Jr, L.R., 2017. Teaching innovations in marketing: A brand-based student-led inquiry
of marketing concepts and practices. Marketing Education Review, 27(2), pp.66-71.
Gonchar and et .al., 2020, September. Marketing Provision Of Realization Of Entrepreneurship
Potential As The Basis Of Enterprise’s Competitiveness. In 2020 10th International
Conference on Advanced Computer Information Technologies (ACIT) (pp. 647-650).
IEEE.
KAWSAR and et .al., 2018. Islamic customer relationship marketing (ICRM) and inspirations
for religious tourism. Islamic Tourism: Management of Travel Destinations, p.78.
Thaichon and et .al., 2020. Transforming Relationship Marketing: Strategies and Business
Models in the Digital Age. Routledge.