Marketing Analysis: Cadbury's Strategies and Plan (Report)

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This report provides a comprehensive overview of Cadbury's marketing strategies, functions, and plan. It begins with an introduction to marketing principles and Cadbury's background, followed by an analysis of the roles of marketing functions within the company, including market information, planning, understanding consumer needs, branding, product promotion, and social media management. The report then explores the inter-relationship between the marketing department and other functional units like human resources, finance, and research and development. A key section compares Cadbury's marketing mix tactics with those of Nestle, examining product, price, place, promotion, and the role of people. Finally, the report outlines a marketing plan specifically tailored for Cadbury, summarizing the key elements of the marketing plan and providing recommendations for further improvement. The report concludes with a summary of the key findings and a list of references used throughout the analysis.
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Marketing Essentials
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Contents
INTRODUCTION...........................................................................................................................3
LO1..................................................................................................................................................3
P1. Roles of Marketing Functions...............................................................................................3
P2. Inter-relationship of marketing department with various functional units............................5
LO2..................................................................................................................................................6
P3. Comparison of marketing mix tactics between two different organizations.........................6
LO3................................................................................................................................................10
P4. Marketing plan for Cadbury................................................................................................10
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................14
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INTRODUCTION
Marketing is considered as the management and study of exchange relationship in order
to manage effective relationship with consumer in order to provide higher satisfaction to them.
The primary goal of marketing is to attract more people (consumers) towards the product and
services of organization. This report is providing brief of marketing function of Cadbury
(Lovelock and Patterson, 2015). Cadbury is considered as one of the most famous food and
beverage sector organization. It was established in year 1824 by John Cadbury in Birmingham,
England and it is providing its product on the world wide level. The study is explaining the role
of marketing function in organization various responsibilities of marketing department in
organization will be explained in report. A comparison will be provided about how marketing
mix is applied by different organization in marketing planning process of organization to achieve
business objectives. A basic marketing plan also will be explained in report.
LO1
P1. Roles of Marketing Functions
There are different operations are performed by marketing department in the
organization. The main function of marketing department in company is to promote their product
and services in the market place to attract more people to use the services and product of
organization. some of main role of marketing department are-
Market information: Marketing has the major role and responsibility in Cadbury. This
department makes consumer aware about products and services which is given by company.
Also it supports firm in knowing about various trends which are going in and on. This
responsibility which is being performed by marketing department can help firm in growing and
reaching out their aims and objectives (Schlegelmilch, 2016). In order to gather information
related to market Cadbury is also involved in doing marketing research. This helps them in
knowing about what strategy is being used by competitors, what their consumers are expecting
from them. This information can be collected from single source or from collection of source.
Market Planning: This process includes making of plan in order to increase production
and sales. It helps in reviewing marketing environment, so that this support Cadbury in making
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plan about the factors which can impact their working. When plan is being made by company it
is their responsibility to fulfil needs and demands of consumers. Also by doing marketing
research they tend to analyse what consumers are expecting from them, so has supported
Cadbury in establishing their market share in various places. It has also supported them in
increasing their profitability and enhancing their operational productivity. Also the plan is being
made by company so that they can fight form uncertain situation.
Knowing needs of consumers: Marketing department also have the role and
responsibility to know needs and demands of customers. They also make consumer aware about
products which is being sold by Cadbury. Various promotional methods are being used by
company so that they can reach large range of consumers in order to grow. Firm also have
invested huge amount in research and development department, so that they can know about
consumer’s trends and design their products and services according to that. They are also trying
to bring out more innovative product.
Branding: One of the major role and responsibility of marketing department in Cadbury
is that it promotes the brand. Marketing has supported Cadbury in increase their brand value and
Brand equity. By promoting high quality of product, company has been able to create high
consumer loyalty. It has been analysed that customer prefer Cadbury over other brand. Also this
aspect has supported firm in increasing their profitability as well customer experience. Brand
managers also have major role in this, they manage brand integrity and also it manages portfolio
of product. This has supported firm in growing.
Promotion of product: The most important function of Marketing is to promote product.
Cadbury has made use of various marketing tactics in order to promote their goods and services.
Like for example Social media channels have been highly used by firm so that they can reach out
large number of consumers (Büyüközkan, Mukul and Uztürk, 2016). This has helped firm in
growing and achieving their goals and objectives. Cadbury is also making use of celebrity
endorsement so that they can increase their goodwill and attract large range of consumers. This
has also helped them in increasing sale of their products and services. It has supported firm in
growing.
Defining and Managing Brand in Market Place: This is one of the most important role
of marketing department in the market place (Hasan and Ali, 2015). In this process marketing
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department defines the function, product and services of organization in market place to make
people aware of the particular brand. This is all about creating the brand values of organization
in the market place to develop larger consumer base for company and improve their brand
identity in the market place (Keegan, 2017) . This operation is performed by marketing
department through different communication processes.in this process marketing defines that
how the Cadbury is conducting their business and how they are creating valuable product for
their consumers.
Conducting Market Research: This is also important role of marketing department in
the market place. The operations of organization are depended on the current and future trends of
market place that are related to the requirements and demands of consumers. In this role
marketing department organises different type of researches and surveys to collect the
information of market place and consumer demand to make further plans for promotion of
product and services of Cadbury. This marketing and consumer research is important to define
target market and opportunities for organization.
Monitoring and Managing Social media: As per current technological trends social
media marketing is one of the most important element of organizational. This is work of
marketing department to handle the social media page of Cadbury to make it more informative
for customers (Baker, 2016). The main role associated with social marketing is about creating
effective social media marketing campaign to make effective interaction with customers. By this
process marketing department of Cadbury also can track customer activity to collect information
about customer behaviour. This is how by using social media platforms marketing department
promote the products and services of Cadbury.
P2. Inter-relationship of marketing department with various functional units
Marketing has inter-relationship with various departments like human resource, finance,
production, operation, research and development and many more. This department performs their
function in all functional units. Marketing function also perform major role and responsibility in
these departments. It has been analysed that without marketing all these departments have no
effect on working of organization. Marketing supports firm in growing and achieving their
ultimate goals and objectives. It makes consumer aware about various products and service
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supplied by them. It has most important position in organization. Inter-relationship includes the
following:
Marketing inter-relationship with human resource: Marketing department of Cadbury
is being engaged in promoting products while human resource department is being involved in
recruiting employees which are highly efficient. These two departments are inter-linked or inter-
related with each other (Rutz and Watson, 2019). Like for example marketing department of
Cadbury promotes if there is any vacant position in their unit and then human resource is being
engaged in attracting and selecting new talent towards them. So this has supported Cadbury in
hiring efficient workers which can help them in achieving their organizational goals and
objectives. This has also supported firm in increasing profitability.
Marketing inter-relationship with finance: It has been analysed that marketing and
finance is arguably one of the most important within any business. Marketing promotes the
product of Cadbury company that supports them in increasing sale of product. This supports
Finance department in making budget and making the profitable records of company
(Taecharungroj, 2017). Marketing department help finance unit in keeping up the most profitable
consumers and therefore this function relates to cash flow. This inter-relationship has supported
them in increasing their profit and also by initiating more marketing strategies products sale has
also been increased. This increases profit of Cadbury company.
Marketing inter-relationship with Research and development: Marketing department
is inter-linked with research and development. Marketing department of Cadbury supports
company in knowing about the recent trends which is going on in country. By knowing this
research department engages in collecting data about trends and brings out new and innovative
idea so that firm can grow. This has supported company in achieving heights, goals and
objectives (Liu and Chou, 2016). It has also supported firm in increasing their market share and
reaching out large range of consumers. By doing research firm is also bel to increase consumer
experience. It has supported them in building brand.
LO2
P3. Comparison of marketing mix tactics between two different organizations
Marketing mix tactics are being used by company in order to increase sale of their goods
and services. These strategies are being used by company so that profitability of firm can be
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increased. Tactics are also being used in order to make consumer aware about goods and service
which is given by them.
Basis Cadbury Nestle
Product Cadbury is involved in selling
out large variety of
confectionary products and
chocolates. These include Dairy
Milk, 5-Star, Perk, Eclairs, Oreo,
Cadbury celebration and many
more. Company is engaged in
selling high quality of goods and
services in order to attract more
consumers. It has been analysed
as second largest confectionary
company.
Nestle provide variety of goods
and services such as breakfast
cereals, coffee, confectionary,
dairy products, ice cream, pet
foods, Maggie noodles and snacks.
Firm is involved in selling out
large number of high quality goods
and services. They are also
involved in selling out frozen food.
It is the largest food company in
world.
Price As it has been known great
quality comes with price. It has
been analysed that Cadbury is
making use of skimming pricing
strategy. In this firm keeps the
cost higher in initial and lower
down when they have been
established in market. This
supports them in gaining
competitive advantage.
It has been analysed that majority
of goods and services which are
being sold up by Nestle is based on
competitive pricing strategy. In
this company set up their price
according to their competitors.
Also skimming pricing strategy is
being used by company for health
related products. These products
are targeted towards consumers
who are really health conscious.
Place In order to attract broader range
of consumers Cadbury has set up
their stores at various places.
They have been engaged in
Nestle is engaged in selling out
their products in about 191
countries. They have 447 factories
which are operating in about 191
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targeting more areas where it is
easy for consumer to get access
through. Like for example their
product is been available in
super market, Retail shops and
even with whole sellers.
countries. They sell out their goods
and services in France, UK, China,
India, Russia and many more. This
has supported Nestle in increasing
their profitability and also
company has given employment
opportunities to a lot of people.
They also have attractive stores.
Promotion Cadbury is highly engaged in
making use of celebrity
endorsement in order to promote
their goods and services. These
advertisements and
endorsements are being
published in Television in which
they are able to reach out large
range of consumers. They are
also making use of public
relation in order to promote their
product.
Nestle is making use of various
promotional strategies like social
media website. They are
promoting their goods and services
of Facebook, Instagram, Twitter in
order to reach out large number of
consumers. This has supported
firm in increasing their profit.
They are also making use of digital
channels in order to increase
awareness.
People Cadbury is engaged in providing
training to their employees so
that they can increase customer
experience. Both on the job and
off the job training are being
given by company. They are also
making use of various HR
promotional strategies like
managing for value programme.
In this their aim is to increase
Nestle has employed over 3,39,000
people. Company is being engaged
in giving out best training to their
employees so that their skills and
knowledge increases. This has
ultimately increase the operational
productivity of organization.
Giving training to workers has also
helped Nestle in achieving their
goals and objectives. Company is
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understanding how firm could be
more profitable.
also involved in giving them
coaching and mentoring.
Physical evidence Cadbury is engaged in following
combination layout. They are
following integration of line and
process layout. Also they are
involved in giving their product
innovative and creative
packaging, so that their can
attract more number of
consumers towards them.
Company makes sure that they
provide consumer with value
which they are trying to receive
(Key and Czaplewski, 2017).
Nestle stores are really attractive
with great interiors so that they can
attract consumers. They are
engaged in selling their products
with distinct colour. This makes it
easier for customers to locate such
shelves in busy retail stores. They
are also using digital marketing
channels in order to create
awareness among consumers.
Process In order prepare better
confectionary item Cadbury is
making use of fully condensed
process. Being productive
means using resources
efficiently in order to maximize
added value in the production
process. Cadbury most reliable
department is operation
department as this has helped
them in making procedure of
preparing chocolates easier.
Nestle is making use of
distribution channel in which they
are providing product to
wholesaler and then whole seller
give their product to retailers and
then it reaches to ultimate
consumers. In their process layout
they are making use of machines
which uses resources in effective
manner and also it can help them
in increasing efficiency of firm.
They are also making sure that
sustainable use of resources is
being done by them. So that they
can grow.
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LO3
P4. Marketing plan for Cadbury
It has been analysed that Cadbury is being engaged in bringing out new product for their
target market. This plan is based on new good and service which is being brought up by
company.
Executive Summary: Cadbury is being involved in bringing new product which is
Cadbury noodles. The new product which will be launched by them will be launched new market
which is Kenya. Also the plan will highlight upon various strategies which will be used in order
to promote product. It will also lay emphasis on the internal capabilities of Cadbury and will also
analyse gaps which needs to be fulfilled by firm.
Mission: To develop differentiated product, while exploiting a smart variety, to achieve
their profitable growth in confectionery and beverages. Another objective is to further take
advantage of technology in order to increase growth, quality and productivity.
Vision: Vision of company is to increase consumer experience in upcoming time. They
also have vision to increase their profitability in future. They also have a vision to expand their
market share in new areas.
Situational analysis: In this SWOT analysis of company will be done. This will analyse
Cadbury’s internal capabilities.
Strength: The strength of company is that they provide high quality products. They also
provide variety of goods and services like Oreo, Dairy milk, Bournvita. Company also have high
brand loyalty. Consumers are engaged in preferring their goods and services over competitors.
Band equity of Cadbury is also analysed to be high. It has also been analysed that Cadbury is
giving their products to over 200 countries. They are also making use of distinctive marketing
which attracts more consumers.
Weakness: There are also various weakness of Cadbury Brand and one of them is there is
less rural distribution. Company has weak distribution channel in Rural area. Also there are
many cased which were filed against company. Like for example In year 2006 a case was filed
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by consumer against company related to quality of product they were offering. Also Cadbury is
providing confectionary items which have high taste sugar and high fat food so health conscious
consumer may not be consumed by them.
Opportunity: Cadbury also have huge opportunity to expand its market in country like
China and USA. In these countries company has less market share. So they have ability to grow
over there. They also can set up their production department in countries where labour is being
available to them at cheaper cost. This can support company in growing and thus this can also
reduce their production cost.
Threat: Cadbury has huge threat from their competitors such as Mars and Hershey’s. So
they must think of more innovative products which can attract consumers. By this way company
can gain competitive edge. Demand of Cadbury items can also get affected as they are engaged
in providing high fat sugar products which causes obesity to consumers. So individual might
think of not buying the goods.
Marketing Mix: There are various marketing mix tactics which can be used by Cadbury
to promote their new Maggi Noodles. This includes following:
Product: Cadbury is going to bring out new product which is Noodles. In this new
product they will make use of various health related ingredients like wheat flour, vegetable gum,
mineral salt and many more.
Price: Cadbury is also making use of skimming pricing strategy. In this they will set high
price at first and when their market is being establish then company will lower price of new
Cadbury Noodles.
Promotion: Cadbury is making use of various promotional channels like social media
websites. In this company can reach out large number of consumers. This can support firm in
increasing their profit.
Place: Cadbury will open their stores in more rural areas where they can increase sale of
new Cadbury noodles. They will also start their new stores in USA and China where they have
less market share. It will increase their profitability.
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Financial planning (budget):
Particulars 1st Year 2nd Year 3rd Year 4th Year 5th Year
Initial money 3000 7000 12000 13500 20000
Investment 11000 11500 23500 31000 15000
Total 14000 18 500 35500 44500 35000
Marketing Outlay
Particulars 1st Year 2nd Year 3rd Year 4th Year 5th Year
Advertisement 2500 2000 3750 1500 1500
Promotion 5000 1700 4500 3000 2000
Direct selling 3000 2500 4000 2000 5000
Total 10500 6200 12250 6500 8500
STP:
Segmentation: Cadbury has been engaged in segmenting the market on demographic
basis. They are mainly targeting young adults and adults. Also they have also segmented market
share on geographic basis. Like company has been involved in distributing their new products
and services which is Cadbury noodles in areas such as India, Russia, France, and many others.
Targeting: Cadbury has been involved in targeting young adults and teenagers between
the age 13- 19. They have done the deep research that noodles are being liked most among these
children. Also they are keeping their main focus on rural areas in order to promote their product
over there.
Positioning: Cadbury is making use of cost positioning strategy where they will keep
price of Noodles low and increase quality of product until they set up their base market. This
strategy can support firm in growing (Olson and et.al., 2018).
Monitoring and controlling: For purpose of monitoring, Cadbury can use method of
Benchmarking in which they can set target and check upon whether firm has achieved it or not.
They can also make use of KPI in which performance can be measured of employees by taking
in account their past performance.
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