Analysis of Cadbury's Marketing Plan and Strategies

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Desklib provides past papers and solved assignments for students. This report analyzes Cadbury's marketing strategies.
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MARKETING ESSENTIALS
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Table of Contents
Introduction......................................................................................................................................3
Marketing process-.......................................................................................................................3
Importance of marketing mix-.....................................................................................................6
Roles and Responsibilities of Marketing Function..........................................................................6
Roles and responsibilities of marketing manager-.......................................................................6
Plan outline......................................................................................................................................7
Comparison of the marketing mix:..................................................................................................7
Introduction......................................................................................................................................8
The SWOT analysis of Cadbury-.................................................................................................9
The STP Model of Cadbury.......................................................................................................10
Marketing strategies for Cadbury-.............................................................................................11
Marketing plan for Cadbury-.....................................................................................................11
Conclusion.....................................................................................................................................12
Reference list-................................................................................................................................13
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Introduction
Marketing refers to the company affairs connected with the acquiring and selling of product and
services. By using slogans, packaging design, general media exposure and celebrity endorsement
people try to get the attention of the target audience who are working in the marketing
department. It includes various activities like selling, advertising and delivering products on time
to people. According to the American Marketing Association (AMA) presenting that have value
for customers, clients, partner, and society at large by Board of Directors set of institutions,
marketing is the activity, and process for generating, communicating, delivering, distributing and
exchanging. According to Dr Philip Kotler, Marketing is defined as the science and art of
exploring, to satisfy the needs of the target market at profit by creating and delivering the value.
It basically interprets the potential profit, recognize the market and compute and quantifies that
market so that it can clearly point out that segment of the company which is capable of serving
best and its plan and promotes the appropriates products and services.
According to Mark Burgess marketing is a process by which company can easily convert
customer needs into profit. In current society, the marketing is a mixture of improved previous
trends such as print ads and TV ads, whereas with the new strategies focal point at some length
of operations. Some of the most common marketing strategies using these days are:
o Internet video advertisement
o Social media marketing
o Retargeting campaign
o Targeted email
o Text message advertisement
As all know no one knows what is going to happen in future marketing trends the only thing that
one can do is get some general idea about what to expect and what should be prepared. Now
day’s technology is increasingly available to everyone and consumers are more responsive
towards every marketing strategy when the material is design for them and everything is made in
order for the consumers. This trend will help in growing the technology and will make easy to
access to the users. In the upcoming years, the other tactics such as FM radio advertisement and
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cable TV advertisement is going to decrease their effectiveness and slowly vanished out from the
market (Pike and S., 2015). By understanding past, present and future marketing strategy the form
will come to know that what method thy need to use to set up your success by putting the
marketing strategy at best to reach out your customer.
Marketing process
There are 4 steps in the marketing process:
1. The process of analyzing the opportunity in the market
2. Selection of the target market
3. Development of marketing mix
4. Management of marketing efforts
The process of examining the opportunity in the market- the first element of the
marketing process is to inspect the opportunities available for the organization. These
opportunities are considered as the needs and want of a customer which are not fulfilled
by competitors but can be fulfilled. The marketing information system (MIS) helps the
initiators in the marketing process which can give chances to grab that opportunity to run
the business successfully with the improved performances, so it plays a very important
role in providing marketing information.
To know the valuable information about a customer, competitors, running trends and
extraordinary changes occurred in the market need to be understood through the
marketing research which should be necessarily done by the manager for the achievement
of success in the company. Through this collected information company recognize the
areas where it can see the potential opportunity and then they divide the market into
different sections. These segments are dividing in support such as geographic areas, age's
groups and demographics etc. then company evaluate its strength and weakness of every
segment separately to check the possibility in a market then effort on the specific
segmented market to work further.
Choosing the most suitable target market- this second step is the most important step
as it selects the target customer. In order to choose the final customer's company conduct
the methodical analysis. As no company is able to satisfy the needs and wants of
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customers that's why different segmentation is done to meet the demand of consumer
according to our strength and weakness. This requires to be done in steps-
i. Market segmentation: the market needs to be a break in different sections whereas these
each section belongs to similar needs, want, attributes and reaction of consumers which
should have, unlike strategies and marketing mix.
ii. Targeting the market: in this process, the most suitable segments which can be attracted
is being selected to target the market. This step of picking out the target market is done to
create most prospective and loyal customers for the company. The certain company also
adopts the rule of satisfying the needs and wants of one or two sections, in this case, the
company focuses on their relevant segments to develop the growth of products and
strategies to make it better. Firms also prefer to split the whole market into various
segments but it is proved to be less effective, but the most effective method is to target
few segments and after achieving success in those segments it can generate further new
target segments.
iii. Positioning: in this concept the company basically wants to create a perception in the
minds of consumers about their product. Its basic motive is to create image and identity
of the brand, by using competitive advantage so that consumer can perceive in some
certain ways. Therefore the company must concentrate on identifying its best positioning
strategy.
Development of marketing mix- now its time for marketing mix planning after the
completion of marketing strategy:
The marketing mix is a collection of market elements in order to generate the expected
reaction in the target customer by the company. The activities if the marketing mix
influences the demand of product among employees, this marketing mix is known as four
Ps.
1. Product- the product is the item is actually being sold in the market which is
offered by the company. This product must give its presentation at minimum level
otherwise other factors of marketing mix won't be able to give its best because the
product is the base of marketing
2. Price- value of a product that is put by the company, it basically decided on the
production cost, segmentation and targetability of market so that they can fulfil
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demand-supply of the market, pay and provide other factors. It is the amount paid
by the customer to obtain that product. An overall business plan is tied with the
various types of pricing strategy. Most importantly pricing helps the company to
separate the image of the product from several products.
3. Place- it basically refers to the point of sales, this element ensures the customer
about the availability of a product in the market. The main aim of any industry is
to provide the product so easily to a customer that their eyes also able to catch that
product so making the placing strategy should be made efficiently. Right location
of retailers is paid extra additionally. Location is the success mantra for any retail
business.
4. Promotion- promotions are the efforts made by the company to educate the target
customer through various modes of advertisement. It refers to all the activities
which help in making the product known among the consumers. It comprises
word of mouth, press report, incentives, advertising, commission and awards to
the trade. It can also include other additional promotional activities such as
contests, direct marketing, and prizes for the customer.
From the seller perspective the four P's are placed as:
I. Product refers to the customer solution.
II. Price refers to the customer cost.
III. Place refers to the convenience of the customer.
IV. Promotion refers to communication for the customer.
To accomplish the company's objective suitable combination of the marketing mix is
required to develop an effective marketing program so that coordination of various
programs can be done by giving value to the customer.
Management of marketing efforts- now it the time when the marketing mix is set for
the target market and to develop the actions for a marketing program. To manage the
efforts of marketing they adopt four functions which are as follows:
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I. Market analysis- here company recognize the internal strength and weakness and
external opportunities and threats of the company so that they can be alert for all the
situations.
II. Marketing planning- here company make certain strategies and plan so that it can
achieve the objective of organizational goal and can accomplish an overall marketing
strategic plan.
III. Implementation- the plan and strategies developed by marketer are now being
practically implemented in such a way to achieve the marketing objectives.
Importance of marketing mix
Marketing mix needs lots of understanding, market research and consultation with several
people, from the users to trade to a manufacturer and several other people. Because these factors
of the marketing mix affect each other, thus usage of these elements in the right direction of
marketing mix can give your business a great success.
Roles and Responsibilities of Marketing Function
Also, for a company with so many diversified products, it is important to coordinate between its
different business activities as well to ensure that marketing decision of one product isn’t
affecting the target customer of the other product of the same company.
Similarly, in the Indian market, it identified the culture of eating sweets at happy occasions.
Then, it came up with a marketing strategy of introducing premium ranges of chocolates which
were to be gifted at happy occasions.
Therefore, all marketing strategies adopted by the company ensured that they do not just promote
good quality but also maintain it which eventually increased its customer satisfaction.
This research helped them in promoting their most commonly used children beverage Bournvita
as a nutritious drink with a great taste.
With the market share that Cadbury holds, the marketing expense incurred by it is huge. Finance
department ensures that the cost incurred on marketing results in higher profits. Thus, with an
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efficient collaboration between both the departments, the company has acquired a major share in
the industry.
Hereby, it can be concluded that marketing function stands with great importance in any
organization. Major aspects of any business depend upon the success of its marketing. Marketing
function also has a major influence on other departments of the organization and efficient
coordination between all the function would together result in the success and sustainability of
the company.
Roles and responsibilities of marketing manager
Marketing manager basically emphasis on the practical applications of marketing strategies and
operations of the organization. The marketing manager is the in charge of whole organization
marketing activities such as formulating, directing and coordinating the marketing activities so
that target customer can choose our product over other product.
Conduct market research: to know what customer actually wants from the
organization, the marketing manager conduct the market research to gain understanding.
Market research enables the manager to know about all the opportunities available in the
market and prepare ideal positioning for the products and services. The research of
marketing also helps in reading and understanding the competitors of our brand so that
the company can make superior products and use efficient marketing techniques. The
research can be conduct in various ways like face-to-face interviews, questionnaires and
through the buying habits of consumers.
Evolving marketing strategies: the responsibility of a marketing manager is to
formulate the marketing strategies for the organization. To main, the pressure over its
competitors for these strategies needs to be highlighted to promote its product and
services so that ultimately they can increase the volume of sales.
Management of customer relationship: it is a basic function of a marketing manager to
maintain the relationship of customer and management in the organization. Manager
collects the data from the survey to know about customer satisfaction and feedback for
organization and product. Then the marketing manager conveys the result of the survey to
the employees of the organization to ensure that they are offering excellent services to
their clients and customers which can improve the relationship and make it lasting.
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Employee’s management: it is the responsibility of the marketing manager to handle the
employees within their department. The duty of a marketing manager is to allocate the
work and set the targets for the departmental staff. Manager needs to do the periodic
performance evaluation of the employees working for them.
Identification of new business opportunities: marketing manager examines the market
trends to avoid the threats and unexpected warnings for organization towards the
organization product and services, by analyzing the purchasing pattern of consumer,
manager can identify the ups and down in the demands of products, through the complete
market analysis manager can forecast and develop new strategies to ensure that
organization is giving tough competition to others.
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Plan outline
A marketing plan is a basic outline of activities done by any organization to make their product
reach out to their target customers. The main purpose of developing a marketing plan is to bridge
the gap between where the organization is standing and what it wants to achieve. With an
effective marketing plan, any organization can understand the market and consumer behaviour
and develop products which can fulfil their needs.
Comparison of the marketing mix:
Cadbury and Hershey’s are the two companies who go head-to-head in the market. The
Hershey company possess 43% of market share in the chocolate industry in us, this company
has the strongest chocolate manufacturing business by providing consumer awareness and
variety of products. Cadbury is the second largest company in confectionary brand it is
mainly known for dairy milk it has manufacturing plants in more than 60 countries, anybody
can buy the Cadbury as it is available in various prices and sizes with different flavours
whereas Hershey’s is a premium brand which offers at higher prices.
Hershey’s provides more bitter and less creamy than dairy milk, Cadbury contains 23% of
cocoa solid whereas Hershey’s contains just 11% of cocoa. Hershey’s is available globally in
every store as well as Cadbury is also available in every city of countries. Both the brands do
the promotions which can touch the consumers emotionally, Hershey’s showcase spreading
happiness in the ads through TV ads, billboards, and magazines whereas Cadbury says
‘’Kuch meetha hojaye’’ which target the celebratory occasions through events, posters and
TV ads. (Dahya, et al., 2002).
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Introduction
Cadbury was founded almost 200 years ago, Cadbury was the intellect child of John Cadbury, it
has the headquarters in Uxbridge and England. Cadbury was started from the grocery business in
Birmingham in 1824. In 1853 the Cadbury became confectioner in the British headband ( Dahya
et al., 2007). It is the leader in chocolate confectionery business.
The SWOT analysis of Cadbury
Cadbury is the topmost brand considered globally so there is no doubt it has more strength and
opportunities than having weakness and opportunities so let’s discuss:
Strength-
I. Leader- Cadbury is known as the world's leader in chocolate business, it has a wide
distribution channel with the best manufacturing across the world also it has existed in
more 160 countries.
II. Power system brand and products- Cadbury consist of various strong brands in its line
of the product such as dairy milk, Oreo, five stars, five star and many more. It produces
high-quality products which golden goose for Cadbury.
III. Brand loyalty – it marketing and strong branding makes this brand loyal in front of
customers, as it is offering from so many years it has high brand equity due to this it is
able to charge a premium for its products
IV. Stands as a gift- Cadbury used the smartest strategy by placing the dairy milk chocolates
and celebrations as gifts which are used to give on special occasion. And now it is trying
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and to place the Bourneville as a gift. And because of this Cadbury successfully made
itself different from its competitors.
V. Promotions- by using amazing slogans and taglines alongside with remarkable ATL and
BTL activities, Cadbury is doing the powerful promotion in the FMCG industry. This
helps in remembering as an excellent brand (Doyle et al., 2012).
VI. Placement and distribution- Cadbury use the strategy of breaking the bulk this helps the
brand in strong distribution and placement strategy of product. Cadbury considered as the
best FMCG distribution channel, as it distributes the variety of product about in 200
countries which are not at all simple. And it follows the same from many past years.
Weakness-
I. Rural distribution is the weakness of Cadbury, a country like India has a wide rural
displacement which can be sheltered if they focus.
II. Quality control needs to be strengthening as it's a big brand, ignorance can't be expected
from such brands that cockroaches or other insects were found in the chocolate which is
very harmful to the public so this brand needs to be strict on quality control activities.
Opportunities-
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