Marketing Report: Cadbury's Strategies for Bournville Chocolate

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This report provides an in-depth analysis of Cadbury's marketing strategies, focusing on the introduction of its Bournville chocolate product. It begins by exploring the benefits and processes of market research, including primary and secondary research methods, and the importance of understanding consumer preferences. The report then details Cadbury's approach to targeting customers and consumers, outlining strategies such as market segmentation, geographical targeting, and the use of the marketing mix (product, price, place, and promotion). It also discusses the company's promotional activities, including digital advertising, social media, and e-commerce. Furthermore, the report examines the marketing plan, including how Cadbury adapts its strategies to different cultural contexts, particularly in Asian markets. The report also touches upon marketing functions, Ansoff matrix, and limitations such as consumer protection and advertising regulations, as well as the importance of branding and competitive analysis to sustain market position. The report concludes by highlighting the significance of an effective marketing plan for Cadbury's success, supported by a comprehensive review of relevant literature.
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MARKETING FOR
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TABLE OF CONTENTS
Benefits and process of conducting market research.............................................................3
Ways to target customers and consumers through marketing activity...................................6
REFERENCES................................................................................................................................8
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Marketing in the present business concept is considered as a significant function that
concentrates on finding out requirements of target audience by conducting a market research. It
is a process that includes planning of marketing goals and implementation of strategies to
achieve those objectives. Business marketing is a practice that is performed by individuals or
enterprise which allows them to sell their goods and services to their target customers or
enterprises that resell them as well as consumes their products and services. In order to introduce
new products and services in the market, there is requirement of effective market research like
primary and secondary research, PESTLE analysis and emerging market trends. Present research
study will be based on analysis of process of marketing for Cadbury which is a British
multinational confectionery company that produces various consumer products like chocolates,
biscuits, desserts, spreads and beverages, etc. Main objective of Cadbury for marketing is to
develop new and attractive products by analysing continuous changing requirements and
preferences of their target customers like Children and Youngsters. The above study of market
process of marketing proposal will determine the structure of marketing and strategies which are
applied by the Cadbury in order promote its new chocolate products named Bournville.
Marketing of products and services through various means has supported the enterprise to
promote the brand to their target market and customers by meeting their needs.
Benefits and process of conducting market research.
Production concept of Cadbury is unique as they are focused on achieving high efficiency
by providing the products at low cost and mass distribution. This has supported enterprise
because when organization manufactures high amount of products then will mean that consumers
will desire to purchase more goods and services. Cadbury has assumed that customers are having
interest in prices that are low and availability of the price that attract and influence the customer
to purchase products. Further, concept of selling new product of company is to make use of
effective promotion practices through which they will be able to provide information about their
new products to customers. Presently, Cadbury is using new and the latest channels of promotion
like digital advertisement, newspaper, social media and printed promotionin order to promote
their new product, Bournville. Research also suggested that Cadbury has a set of effective selling
and promotional tools to inspire more buying. Marketing concept is considered as a key to
achieve the business objectives of Cadbury. It consists of being more effective as compared to
competitors when creating, delivering and making communication with customers to meet their
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values. It also consists of 7 key elements like products, price, place, promotion, price, people,
process and physical evidence that concentrate on the needs and desires of target market and
company also tries to provide better values than their competitors like NESTLE, Hershey's and
Mars/Wrigley’s, etc. Cadbury in marketing always focused on Pull strategy in which they need
to develop their brand stronger so that consumers will prefer to choose its brand over the other
competitors.
In this product concept, Cadbury focuses on creating the economies of scale in
production and effective distribution of goods or services. It is the concept that provides an
understanding that customers will prefer those goods that provide the best quality and have high
market performance. In this, managers of Cadbury also concentrates on this concept as they are
focused towards developing their products bigger by making continuous improvement over time.
Along with this, functions of marketing is considered as role that helps the Cadbury to
identify and analyse the potential as well as successful products for market. The marketing
functions which are performed by Cadbury include market research, marketing plan, developing
marketing plan, products development, strategic management of advertisement, promotion,
distribution of sale, etc. Marketing department of company closely with the production as they
provide them supports to meet desire of customers so it can help with development of new
products. They also have to make various decisions related to products needs to be produced like
Bournville, changes required in prices, promotional decisions to influence the consumers, place
at which company needs to sell their products. Hiring of qualified employees who are able to
develop these products and apply an effective process in order to maintain the quality of product.
Analysis of Ansoff matrix determines that there are four main market strategies like market
penetration, products development, market diversification, and diversification which are used by
organization in marketing. From the above, company has decides to use the market penetration
strategy in which will have to increase the prices of their existing products to promote their new
products, Bournville through application of strategies like advertising, low prices and providing
discount offers. For example: Kellogg’s also use this strategy by bringing their new products that
is suitable for customers of all age groups. Coco cola selling their new diet coke to the same
market by selling their products retail store like TESCO, ASDA, McDonalds, etc. Cadbury also
needs to develop branding of their new products by creating attractive packaging material with
attractive colours that encourage children to buy the product.
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While performing the market functions, marketers of Cadbury also have to face some limitations
like consumer's protection, promotion health competition, and environmental protection. There
are some important legislations under marketing areas which comes from the different policies of
UK government and European union like sale of goods act 1979 which states companies needs to
develop and sell their products by following the contract of sale, buying power of consumers,
provide quality products and charged limited prices as per the value of products. Consumers
protection act 2008 also provide some limitation like companies are not able to trade unfairly and
have to be honest and fair with customers. It mostly concentrates on prices charged by
companies, disclosure of correct information, competitors, selling methods and after sale service
etc. Further, Cadbury also needs to use voluntary code of advertisement practice in order to
remove the issues like Truthfulness, Health claims, safety, decency and children etc. Other
constraints like Data protection act, pressure groups, consumerism and acceptable languages are
also considered by enterprise in order to increase the marketing of its Chocolate product
Bournville.
As per analysis, Cadbury limited have planned to make Asian countries as their largest
international market for which they have used primary and secondary methods in order to collect
information about the requirements of customers in those countries like India, China etc. Primary
research includes qualitative method under which the company collects the information about the
feeling and experience of people about the products or service which can be done through
questionnaire, taking interviews, observations and analysing other focus groups (Dibb and
Simkin, 2013). Cadbury used quantitative research to collect the numerical data rather than
experience by using methods like Surveys, questionnaire etc. Under secondary research,
company will use two methods like internal that consists of company's reports, data of retail,
internal reports and stock analysis etc. And external research involves analysis of published
research, reports of government and commercial data in order develop an effective marketing
plan for launching of their new product. Primary research help Cadbury by developing their
knowledge actual needs of customers in Asian countries. Secondary research will help to develop
an effective marketing plan by learning about condition of industry or market, competitors and
requirement of customers (Ebert and et.al., 2014).
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Ways to target customers and consumers through marketing activity.
Marketing is considered as bridge among the products and customers under which the
marketers of company uses the 4 elements like product, price, place and promotion in order to
interact with consumers. Promotion is analysed as all forms of communication with target
audience including advertising and public relations etc (Wirtz and Lovelock, 2017). Various
important ways have analysed through by Cadbury will target their customers and consumers
like
Marketing plan: Company has developed an effective marketing plan in order to produce,
communicate and selling of products or services. By using the above market research on target
customers to develop plan and budget for promotion campaign will set out.
Targeting customers and consumers is process under marketing which customers in
market are distributed under different segments. In this, Cadbury has also done target its
customers and consumers in order to analyse their needs and desires related to new products like
Bournville. Targeting has been done company by understanding the problems which are faced by
customers in market related to products (Koontz, 2010). Through this, company will be able to
develop a picture of their customers and consumers in particular segment. Under next step,
company will analyse their products or service so that they will able to consider the demands of
their customers. After that, Cadbury will select its specific demographic to target its customers
like age, location, gender, income level, education level, Marital or family status and ethical
background etc (William, 2012). In order to implement its marketing plan, company has targeted
children and youngsters living at different geographical segments in Asian countries under
middle income group who have power to purchase its products.
Company has also selected method of geographical segmentation under which they will promote
their new product in different areas like cites, countries, regions and international regions etc.
From the marketing mix, it is considered that new product of company ie Bournville is
unique and developed by analysing the requirement of its customer. It also consists of high
quality and produced by concerning the health as well safety of consumers. Apart, in order to
increase the sale company will provide this product at low price and use price penetration
strategy to attract its customers. Further, Cadbury has also developed a wide distribution
channels in different countries and also established its manufacturing unit so that they will able
to provide their new products at different place and also sell their product to large retail store so
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that consumers call easily access their products (Gummesson, 2011). For the promotion of its
new products company will use different channels like television advertisement, newspaper,
pamphlets, Email marketing, social media and e-commerce websites etc. Cade Bury has hired
qualified employees under marketing and production which provide them support in marketing
and development of new products to meet the demands of customers.
Situation analysis of company has determined that it posses high financial position in market and
strong brand recognition which provides them support in increasing sale of their new products
and also helps in development of competitive advantage over rivals (Desselle, Zgarrick and
Alston, 2016). Company also has high threat of existing competitors in market and in order to
overcome this threat, they need to analyse strategies of rivals and modify its own strategies
effectively to sustain its market position.
Further, it is also considered difference in culture of people in Asian countries also
affects their perception, feeling and requirement towards the products (Belch and et.al., 2014).
For example: People with different culture will understand different languages. Thus, Cadbury
needs also need to covert their marketing information and message in different language in order
to provide complete understanding to people effectively.
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REFERENCES
Books and Journals
Babin, B.J. and Zikmund, W.G., 2015. Essentials of marketing research. Nelson Education.
Belch and et.al., 2014. Advertising: An integrated marketing communication perspective.
McGraw-Hill Education.
Charlesworth, A., 2014. An introduction to social media marketing. Routledge.
Dahlén, M., Lange, F. and Smith, T., 2010. Marketing communications: A brand narrative
approach. John Wiley & Sons.
Desai, S.S., 2013. An analysis of the competitive marketing strategies of the hospitality industry
in UAE. IUP Journal of Management Research.12(1). p.22.
Desselle, S., Zgarrick, D. and Alston, G., 2016. Pharmacy Management: Essentials for all
practice settings. McGraw Hill Professional.
Dibb, S. and Simkin, L., 2013. Marketing essentials. Cengage Learning.
Ebert, R.J. And et.al., 2014. Business essentials. Pearson Education Canada.
Gummesson, E., 2011. Total relationship marketing. Routledge.
Koontz, H., 2010. Essentials of management. Tata McGraw-Hill Education.
Thorson, E. and Moore, J. eds., 2013. Integrated communication: Synergy of persuasive voices.
Psychology Press.
William, K., 2012. Essentials of marketing research. London: Cengage Learning.
Wirtz, J. and Lovelock, C.H., 2017. Essentials of services marketing. Pearson Higher Ed.
Online
CADBURY. 2017. [Online]. Available through: <https://www.cadbury.co.uk/>.
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