Strategic Marketing Report: Cadbury's Market Strategies

This report provides a detailed analysis of Cadbury's strategic marketing initiatives. It begins with an executive summary outlining the core focus on strategic marketing's role in fostering successful market growth. The report delves into various strategic models, including PESTEL analysis, market entry options, market segmentation, and Porter's generic strategies, to assess their impact on Cadbury's decision-making processes. The PESTEL analysis examines the political, economic, social, technological, environmental, and legal factors influencing Cadbury's operations. The report explores different market entry options, such as joint ventures, turnkey projects, and partnerships. Market segmentation and customer analysis are also crucial for understanding the target audience. Furthermore, Porter's generic forces are assessed to determine the competitive landscape. The report concludes with a recommendation for Cadbury to adopt a cost leadership strategy to maximize revenue and maintain product quality. The report provides a comprehensive overview of Cadbury's marketing strategies, offering valuable insights into the company's approach to market analysis and strategic planning.

Strategic Marketing
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EXECUTIVE SUMMARY
In the following report, the details is provided that how strategic marketing help the
companies to provide a successful growth in the market. The chosen company is Cadbury and all
the strategic models are explained in the file which affect the decision regarding the companies
growth. The various market entry options are described in the file and models like Pestle, Market
segments and Porter's generic strategies are explained in detailed. Cadbury must choose the cost
leadership theory to minimize the cost process and increase the revenue of the company by
providing same quality and quantity.
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Table of Contents
INTRODUCTION...........................................................................................................................4
MAIN BODY...................................................................................................................................4
1. PESTEL analysis.....................................................................................................................4
2. Market entry options...............................................................................................................6
3. Market segmentation and customers of the organisation........................................................8
4. Porters generic forces............................................................................................................10
CONCLUSION..............................................................................................................................12
REFERENCES .............................................................................................................................13
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INTRODUCTION
Marketing is the process of identifying the products and services of the organisation and
making them reach to customers (Agic and et.al., 2016). The products and services are
persuading the customers to purchase from the organisation. The level of income, buying
behaviour, demand of the products and services, marketing, etc. helps them to make the
strategies. The organisation need to have the market driven strategies which will help them to be
successful. Strategic marketing is the process of evaluation and making the business strategies
for achieving the goals of the organisation. Strategic marketing is making the strategies for
attracting customers and making strategies for increasing the performance of the organisation.
The organisation chosen for the report is Cadbury in 1824 in UK. The organisation is the first
choice for customers when they want to have chocolate. Marketing strategies of Cadbury is
making them successful because they are operating in many countries and they are one of the
largest organisation. The report includes the external analysis of the organisation, entry option,
marketing strategies, porters generic forces.
MAIN BODY
1. PESTEL analysis
The external factors are important for understanding the factors which are affecting the
organisation. The organisation have to identify the external factors which will impact the long
term business of Cadbury and they have to make the strategies which will help them to achieve
the goals of the organisation. The organisation have to make strategies which are making them
effective and achieve profits (Hunt, 2017). The world is moving ahead and the strategies of the
organisations are changing with the needs of customers. The strategic marketing is helping the
organisations to attract customers and making them purchase the products and services.
Political factors
The organisations are having strategies to grow and they want to achieve success. This is
possible when they are having operations in the global markets. The political factors of the
country help them in making the decisions because are important to understand when the
businesses are expanding.
Cadbury is a large organisation and they have operations in many countries. The
organisation is working beyond the political boundaries and have to make decision for making
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them successful and expanding in different markets and they have to understand the political
factors which can affect the business of the organisation. They have to pay taxes, custom duties,
import and export and it directly increasing the cost of the organisation. 75% of the Cadbury's
business comes from emerging markets and they help them in making strategies because the
organisation will grow.
Economic factors
The organisations have to make decisions according to the needs of customers (Sharp,
2017). The income of customers is important for making the strategies of the organisation.
Cadbury is a large organisation and they have good and services in different countries.
They manufacture them which is affected by the prevailing economic conditions and this will
help them in making strategies. The political environment of the countries are impacting the
business of Cadbury and they can measure the performance of the organisation. The recession of
2008-2009 has dropped the sales of Cadbury by 4-7%. They have cut the cost and they use
economical methods like use of machinery and less labour to increase the profits of the
organisation. The inflation of the country will affect the performance of the organisation.
Social factors
Social environment is the most important factor which is used by the organisation when
they make strategies. They need to analyse the social factors of the economy where the business
of the organisation is because they are related to understanding the needs of customers
(Varadarajan, 2018). They need to make the strategies because it will become for the
organisation to manage when they will not understand the factors affecting the organisation. The
obesity in western countries is high so the people have shifted to healthy bites and they are
purchasing less chocolates. Cadbury has come up with healthy bites for the health conscious
customers and the intake of chocolates is less which is increasing the profits of the organisation.
Technological factors
The organisations are using different methods of achieving the goals and they are making
strategies which will help them in marketing. The technology is helping the organisation in
strategic marketing and they will use different methods like online marketing and data analytics
to understand the needs of customers and monitoring the performance of the organisation. They
are helping the organisation to make faster decisions and they are making it easy for them to
make strategies for the success of the organisation.
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Environmental factors
The organisation have to understand the environment where they want to have the
operations and they will make strategies for the success (Miles and et.al., 2015).
The organisation should make the strategies which are helpful for the environment.
Cadbury have to manage the resources which are not impacting the environment. They are
helping the farmers in cultivating, educating girl child, farming activities, donation according to
the policies of UN to give the profits in Corporate Social Responsibilities. The are making the
environment clean and using different methods which are useful for the organisation. They are
operating the sustainable businesses which are helping the organisation in making strategies.
Legal factors
The factors are affecting the businesses of the organisation indirectly are the legal factors
and they are important for the organisation to know when they are making the strategies. The
legal factors involve costs and the organisation will take efforts to protect the rights. The legal
factors save the organisation from malpractices and they will achieve the goals of the
organisations.
The small organisation copy the logo and brand identity of Cadbury which is affecting
the profits because customers are attracted to the fake products. It is reducing the sales of big
organisations and they have to make the strategies for improving the performance.
2. Market entry options
The entry options help the organisation to analyse different markets where they can have
the business. The organisations need to understand many factors which will make the market
successful for them (Sood, 2017). There are many option to enter in new market but the
organisation have to make the strategy to enter in new market with new product or existing
product. Cadbury has operations in many countries and they have products according to the
needs of customers so that market entry strategies are successful for them in the countries. When
they want to move to new market they can use many entry options.
Joint Venture- Joint venture is the agreement between two or more organisations to
make the strategies to share profits and losses (Launching a World-Class Joint Venture, 2020).
They will work together and share the roles which will help them in making strategies and form
new organisation. The organisations together make the strategies for achieving success and they
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will help each other to grow. The success of the organisation will depend on the strategies made
by the organisations.
Advantage- Joint venture will help the organisations in making strategies which will help
them to achieve the goals of the organisation. They will work effectively and the organisation are
committed for the project which they want to be successful (Andaleeb and Hasan, 2016). They
will get the information of the market which will help them in making strategies of marketing.
Disadvantage- The organisations face the problem of communication when they are
making the strategy. There is lack of flexibility in the organisation because the operation are
different in different countries.
Turnkey projects- The small projects are managed by the organisation which will take
the decisions of the manufacturing of the good and services. The organisation make the strategies
for achieving the goals and they will be effective in achieving the profits. The organisations have
to decide the projects they want the organisations to perform. Example, The organisation wants
to increase the project scope and size.
Advantages- The organisations have many work and they do not want to manage
everything. The small projects are manage by the organisation which are payed for the services
provided by them. They will help the organisation in achieving the goals. The productivity of the
organisations will increase.
Disadvantage- The cost of the organisation will increase. The decisions will be taken by
the clients so the organisation will have to take the risk. The organisation will have processes
which will make them dependent on the clients and the work will be done by them so they need
to analyse the performance and they will be according to the strategies to achieve success.
Partnering- Partnership is the process of making the strategies of the organisation. They
will help them in maintaining long term relationship with customers (Kreutzer, 2019). They will
help the organisation in making strategies for expansion of the organisation. The organisation
will be successful when they have good partnership and it will help them in increase the
performance.
Advantage- The organisation partner with different organisations because they will help
them in achieving success in different countries. They will make the strategies which will help
the new business to achieve the goals and they will get the help for expanding the organisation.
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Disadvantage- The organisation will have to involve cost in partnership and they will
have to make strategies. The organisation have to make strategies because they will expand in
new markets which will require them to have effective working to achieve profits.
The organisation have to do the strategic analysis of different markets they want to
expand in and the strategies should be effective for achieving the goals of the organisation. The
competitors analysis of different markets will help Cadbury in making strategies for product,
place, price and promotions of the products and services of the organisation. They have to
analyse different factors which will affect the organisation and they need to make the strategies
along with the market entry options. The organisation should choose Joint venture as the entry
option because it will help them in being successful in the countries they want to have the
business. Cadbury is an organisation which is having operations in many countries and they will
make the strategies to be successful (Berman, Evans and Chatterjee, 2018). The joint venture
will help them in making strategies and the organisation will be able to expand the business.
They need to decide the company they want to tie up with and the policies of profits and sharing
of work. There are many factors they have to analyse which will impact the strategies of the
organisation. The organisations will make the analysis of the factors for increasing profits and
they will help them in achieving success.
3. Market segmentation and customers of the organisation
Market segmentation is the process of dividing the target market in group and the
organisation will focus the strategies to understand the needs to increase the performance of the
organisation. It will divide the market in smaller group and make strategies to help them achieve
the goals of the organisation. The people will have homogeneous characteristics and it will be
easier for the organisation to make the strategies. The importance of the segmentation is that the
strategies of the organisation will focus on the increasing the satisfaction of customers. Cadbury
is the organisation whose products are attracting customers (Ahmadi and O'Cass, 2016). The
segmentation of the organisation is based on demographic, psychographic and behavioral factors
which are important for making strategies of the organisation. The organisation is focusing on
the products based on the production capacity, pricing, demand, supply, etc. The have targeted
the products to specific age groups but are liked by all customers. Cadbury temptations are for
rich customers and Silk is for customers who like to have sweet and are for celebrating the
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special moments. They have divided the segment of customers in different groups based on
different factors.
Demographic segmentation
The age of customers- Cadbury is segmenting customers on from the age of 4 to 50 years.
The customers are targeted based on the prices in the age groups.
Gender- The organisation segment customers based on the gender where they use
different products for males and females and they make strategies (Chiarini, 2015).
Income- The products of Cadbury has prices low to make it affordable for customers.
They want that customers can purchase the chocolates easy and they will not have to spend much
on products of the organisation. The organisation have different products with different prices
and most of the products are affordable. They have premium chocolates like Cadbury temptation,
Silk, etc. for the rich customers.
Generation- The organisation is have products for all the generation of people. They have
emotional connect with the products and they attract customers to purchase. The organisation
make strategies for increasing the performance.
Psychographic segmentation
Psychographic segmentation is the process to divide customers on the basis of
personalities and characteristics. The customers of the organisation are based on the lifestyle,
characteristics, interest, priorities, etc. They understand the needs of customers and wants to
achieve the goals of the organisation. Cadbury have products for all type of customers and the
products are affordable to satisfy the needs of customers and they help the organisation in
making strategies.
Behavioral segmentation
The organisation understand the need of customers and have products to increase the
satisfaction (Yusof, Mahmoud and Ahmad, 2016). The customers can have the chocolates
anytime and they have different package like celebration, temptation, etc. The organisation need
to focus on the factors which understands the behaviors of customers and behaviors are
purchasing habits, spending habits, status of customers and brand interactions.
Segmentation of customer
The organisation have to understand the needs of customers and they should make
strategies to achieve profits. Cadbury has products for children to adults and they are
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understanding the needs of customers and have chocolates for families and children. The
organisation make strategies which are making the marketing of Cadbury effective in achieving
the goals of an organisation. The marketing is making the organisation connecting the customers
to the brand which has products to satisfy the needs and they are made to make the moments
special. They have products for Christmas, valentines day, celebrations, birthdays, etc. They are
connecting people with the chocolates and they have replaced sweets in many special moments.
There are many factors which are affecting the organisation and they need to make the strategies
for the growth of the organisation.
The organisation have to understand the demand of products and they should be able to
increase the performance. The R&D of the organisation is making the strategies and they will
analyse the purchasing habits, demand, supply, buying behaviour, etc. The growth of the
organisation is helping in achieving success and they will choose the best strategy to increase the
satisfaction of customers (Baker and Saren, 2016). The organisation is focusing on achieving the
goals and they are making strategies for increasing the performance.
4. Porters generic forces
The organisations have to make strategies for the choosing the best method for helping
them to achieve success. The organisation has many options and they have to choose which will
help them in improving performance. The generic forces are explained by Michael Porter and
they will achieve cost leadership, focus strategies, differentiation and they will analyse to
achieve the goals of the organisation. The organisation will have cost leadership when they will
cut the cost, differentiation will have attractiveness in products and will give unique products to
customers. They will have focus strategy when they understand the needs of customers. The
organisation will make the strategies for achieving success (Chahal, Dangwal and Raina, 2016).
There are four types of Porter's generic forces:
 Cost Leadership
 Differentiation
 Focus strategy- Cost focus and differentiation focus
Cost Leadership
The organisation have to make strategies and they should manage the cost for increasing
the performance. The cost leadership in the organisation is focusing on becoming the low cost
producer of products. The organisation will get many options to reduce cost and they should
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analyse them to increase performance and they will be able to achieve the goals. The
organisation will be benefited because they will increase the performance and the cost will be
reduce and they can make strategies for making the organisation grow. They will find the
methods of reducing the cost of raw material, labour, etc. to help the organisation increase
profits.
The organisation will make strategies for achieving the goals and they will have to
understand the needs of customers. They will reduce cost and have to maintain the relationship
with the people. Cadbury has products to understand the needs of customers and they are
affordable by customers and products are better in quality. The organisation will have to cut the
cost to make them effective and they will manage the resources for increasing performance.
Differentiation
The organisation should understand the needs of customers and they should make
strategies for attracting customers. They should be unique and increases the satisfaction of
people. The customers should feel that the organisation is understanding the needs and they will
help them in achieving profits. The products of the organisation should be different and they
should be good in quality and gives good experience to customers. The differentiation strategy of
the organisation communicates the customers that they are important. The organisation should
differentiate the products on the basis of the factors like name, size, characters to increase the
satisfaction of customers (Anees-ur-Rehman and Johnston, 2019).
The customers is helping the organisation in achieving the goals and they are attracted to
the products. Cadbury is understanding the behaviour of customers and products are made to
increase the satisfaction by making them accordingly. The customers are attracted to the
organisation because on the quality products, brand name, marketing and strategies of the
organisation. The products of Cadbury are unique because they are satisfying the needs of
customers.
Focus strategy
The organisations are focusing on the customers who will help them in making the
strategies. The focus strategy of the organisation is of two types cost focus and differentiation
focus. The bases of the focus strategy is that in focus on cost where they give the products at
lowest price to customers and focus on differentiation is when the organisation increases the
satisfaction of customers.
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Cost focus- The organisation focuses on cutting the cost for the market segment who they
want to give the products. The organisation will understand the needs of customers and they will
make the strategies to give them good experience. They are making products for customers who
have different needs and the strategies of the organisations are focusing on increasing the
satisfaction of customers.
Differentiation focus- The organisation is having differentiation strategy to understand
the needs of customers of a particular market segment. They are giving the products to customers
to understand the wants of customers and they will make strategies to give better products to
customers. Cadbury is focusing on differentiation and giving the products at better quality.
Choosing the best strategy for Cadbury
The best strategy for Cadbury is cost leadership because products are prices less and they
are maintaining the quality. The customers of the organisation are attracted to the products
because they are connected with Cadbury as a brand. The brand image of the organisation is
making them the successful organisation and they are connected with customers to increase the
satisfaction. The cost is the most important factor and they are able to manage by giving good at
the lowest prices to customers. The organisation is successful because they have increases the
satisfaction.
CONCLUSION
From the above assignment it is concluded that strategic marketing is summary of
planning, monitoring and controlling the activities which are running in the company to meet the
targets and objectives and make a strategy to developed a competitive nature in the market. A
brand like Cadbury, also have to focus on the strategic marketing of the company to make a
sustainable position. Cadbury used Pestle analysis for choosing the appropriate market condition
and planned according to that. New companies option to enter into a market and increase the
competition in the industry with the restriction to strategic alliance, mergers, acquisition and FDI
etc. and different market segment help in customer orientation in the market of Cadbury. And in
last porter generic models will help in deciding the way to run business in the market.
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