Marketing Essentials: Cadbury's Strategic Marketing Plan Analysis

This report provides a comprehensive analysis of Cadbury's marketing strategies, focusing on the application of the marketing mix and its comparison with Hershey's. The report delves into the roles and responsibilities of the marketing function within Cadbury, examining its relationship with other departments. It highlights the importance of the interrelationship between marketing and other divisions. Furthermore, the report presents a detailed marketing plan, including a SWOT analysis and a PEST analysis, to evaluate Cadbury's strengths, weaknesses, opportunities, and threats. The plan also outlines strategies for launching an organic chocolate product, aiming to meet consumer demand for healthier options. The report concludes with an evaluation of the strategic marketing plan, emphasizing its coherence and its potential to achieve Cadbury's long-term business objectives. It explores the company's mission, vision, and background, and how Cadbury has adapted to the market. The report also explores STP, and the 7 Ps of marketing mix.

Marketing Essentials

Table of Contents
INTRODUCTION...........................................................................................................................3
Activity 2.........................................................................................................................................3
Comparison of how different organisations apply the marketing mix to the marketing
planning process to achieve business objectives ...................................................................3
An evaluation of a detailed, coherent and strategic marketing plan.......................................6
REFERENCES..............................................................................................................................12

INTRODUCTION
Marketing is a process which emphasizes on the needs and wants of customers and
designing and produce a product accordingly. In other words, it is a wide concept which
comprises several factors like goods, experiences, information, satisfaction of customers along
with understanding of market and implementation of strategy accordingly etc. In addition to this,
this is a process through which company identifies the needs of customers and satisfying them
accordingly. It is a technique which is used by organisations for gaining growth and success in
the marketplace. Present assignment is based on Cadbury which is a multinational confectionary
company along with headquarters in Birmingham, England. Company was founded by John
Cadbury in the year of 1824 and it offers various confectionery products like bars, bags, rolls,
desserts, biscuits, chocolates, ice-cream etc. across the world. Present report will discuss about
the roles and responsibilities of marketing function in a firm along with its relationship with
other functions of firm. Importance of interrelationship of marketing division with other
divisions of firm will also covers in this report. In last, a marketing plan will also constructed in
which several strategies will be discussed which will be helpful for the firm in achievement of
their long term goals or objectives.
Activity 2
Comparison of how different organisations apply the marketing mix to the marketing planning
process to achieve business objectives
Marketing mix is a set of activities which is used by firms for promoting their products
and brand in the marketplace. In other words, it is a strategy of firm in which they provide right
products at right time, at right place and to the right person. This strategy or technique is used by
each firm for getting success in the marketplace (Khan, 2013). Marketing mix comprises of 7Ps
which comprises Products, price, place, promotion, people, physical evidence and process and
always assists the firm to compete their competitors. Marketing mix of Cadbury is very much
differ from their main rival Hershey's company which also engages in same sector. This
difference can be explained better in a tabular format, that is defined as under:
Factors Cadbury The Hershey's Company
Product Cadbury is known as the second Company is also considered as

largest confectionery firm
across the world. It also offers a
huge variety of products like
dairy milk, Oreo, Dinky
deckers, fudge minis etc.
the popular brand across the
world which is also engages in
same sector. It offers
chocolates, sauces, soups etc.
there are various kinds of
products offered by the firm in
different shapes. Company has
produced different and unique
products due to making
modifications in existing
products.
Price Price is the main factor which
plays a very important part in
capturing the marketplace.
Company offers a wide variety
of products along with different
prices and prices of firm are
very lower than comparison of
others so they have opportunity
to attract a large number of
customers so that strong brand
image will be build in the
mindset of customers.
Hershey is known as the
premium brand in food and
beverages sector. Prices of all
products are generally high in
comparison of Cadbury. For
e.g. company charges on their
chocolate products of around 3
euros.
Place Cadbury perform its business
functions in more than 50
nations across the world and
they always try to sell their
products in supermarkets and
local shops so that a good
customer base can be created in
Hershey's is operating its
functions in across 60 nations
they have covered more
market area than the cadbury.
Furthermore, company also
provides products on online
channel so that more area can

the marketplace. Whereas,
cadbury has also started selling
their products on online
platform so that large market
area can be covered in small
time period.
be captured by them. They
have opened their outlets in
main cities of these nations so
that customers can feel their
specialised offerings.
Promotion Cadbury is one of the best firm
across the world which
performs its promotional
activities in very clever manner
so that more customers get
attracted towards the offerings.
They also uses unique
packaging in festive seasons so
that customers will more
attracted towards the products
of Cadbury. They also make
modifications in their prices
according to the market trends.
Company more focuses on the
quality than promotions.
Company uses different
channels like T.V
advertisements for promoting
the products.
People Cadbury uses various
techniques for improving the
skills of their employees. They
also provide training to their
employees so that they can face
new challenges of market in
effective manner.
Company gives huge
incentives and effective
training to their employees so
that better efforts can be
gained for selling the products.
Whereas, company also uses
Kaizen technique for
improving the quality of their
products so that competitive
advantage can be gained by
them.

Process Cadbury uses lean management
and six sigma techniques while
manufacturing their products.
Main objective behind this is to
produce the product in a wide
quantity so that customer can
easily find their products in
marketplace.
Hershey also uses Kaizen for
improving the process while
producing the products due to
which their products are
considered as the top quality in
comparison of their rivals.
Their supply chain
management is also effective
because of which they have
created their strong market
presence across the 60 nations.
Physical evidence Cadbury uses mostly blue
colour in their products so that
customers can easily identify
the product and purchase
accordingly.
Whereas, Hershey's uses
brown colour in packaging of
their products so that
customers can easily attract
towards quality products of
firm.
Marketing is an important tool which assists the firm in formation of strategies and
policies so that business objectives can be achieved in a given time-frame (Lipsman, 2012). For
analysis, management of Cadbury have considered 7p's of marketing mix for setting their
objectives. As per the difference of marketing mix of Cadbury and Hershey's it can be said that
prices of Cadbury are very low than the Hershey's and managers of Cadbury have also started
online platforms for promoting their products. All these factors together helps the management
of Cadbury in achievement of their preset objectives.
An evaluation of a detailed, coherent and strategic marketing plan
Executive Summary: Cadbury has made a marketing plan for organic chocolates to
provide customers with accurate information as well as to aware customers about its unique
features. The Swot and PEST analysis is done to study the strength and weaknesses of the firm as
well as threat and opportunities are also mentioned so, that loop hole can be improved and

financial loss can be reduced. Here, company is planning to launch a organic chocolate in the
market for its customers. The main aim is to provide health chocolates bars to it's chocolate lover
people. Firm decided to launch the goods as many health issues can be seen by excess
consumption of sugar so, organic chocolate can stand up to their exceptions in both ways. As this
chocolates are organic good for health as well as chocolate lovers can consume them without any
hesitation for health. STP and marketing mix has helped the business to expand in global village.
The term marketing plan can be defined as a report, comprehensive documents or blueprint that
outlines the marketing and advertisement efforts for the up coming year. In other words it can be
said that marketing plan is a part of overall business plan. The main reason why this plan is made
is to set a organization on a specific course in marketing. It helps the firm to implement an
unified strategy with regards to customers and sales goals. This blueprint includes the following
components like, marketing strategy, sales forecast, situation budgets and expense budgets. It
helps the customers to understand in-depth why cadbury companies product or services are better
than other company product like, Ferrero Rocher, Lindt, The Hershey company etc. Firm is
planning to discover Organic chocolates in the market. A good and informative proposal helps
the business associates to reach out to their targeted customers and directly pull customers
towards their product also increase bottom line in the existing market. This kind of report helps
audience to known the actual difference between Cadbury product and the competitors product
or service offered to them. Here are some of the benefits of a plan are,, makes firm proactive and
aligned with goals and vision, helps to capture market ratio (Pike, 2015).
Mission of Cadbury: The mission states that “Quality means Cadbury, this is our
promise. Firms brand image and status lie on it's quality product and customers satisfaction as
well as the promises made to come up with innovate product on continuous basis in the market”.
Vision of Cadbury: “Joining hands together to build brands people love”
Cadbury company background:
Cadbury is a British multinational confectionery company founded by John cadbury in
the year 1824 around 195 years ago. It's headquarters is in Uxbridge, London, England. Firm
type is subsidiary products like, dream stick, flake 99 cone, dairy milk buttons cone, dairy milk
big toffee whole nut tub etc. The CEO of the organization is Dirk van de Put while the chairman
is Irene Rosenfeld. It's the second largest confectionery brand worldwide. This company in the
years 2010 was completely owned by Mondelez International. Company is holding around

71,657 employees across the globe according to 2008 data. In the year 1854 business was
acknowledged it's first Royal warrant from Queen Victoria. Whereas Dairy Milk chocolate came
in the market in 1905, used huge litres of milk for production of chocolate recipe compared with
competitors products.
SWOT:
Cadbury company uses SWOT (Strength, weaknesses, Opportunities and Threat) analysis
to study competitors position in the market and make strategic plans accordingly to capture
market share.
Strength: Cadbury is the world's leading industry in chocolates and also has presence in
160 or more countries. Firm is blessed with strong brand loyalty and also has powerful product
portfolio like: Oreo, Five Star, Bournvita, Dairy Milk etc. goods have high quality and some of
them are Cadbury and cash cows.
Weaknesses: The major issue faced by the organization is the rural distribution in India
has wider rural diaspore which can be covered. In the past few years firm faced complaints
regarding the quality and and hygienic issues like cockroaches and other rodents were found in
the goods. Thus quality and hygienic matter should be strengthened at a priority level to capture
more market ratio than existing ratio (Wirtz, 2012).
Opportunities: Cadbury is trying to turn distribution in rural markets and penetrating
rural market as future opportunities. In India people are more interested for small chocolates and
chocolates bars so, the new flavours and tastes can be big opportunities for Cadbury in the
coming years.
Threats: In the era of 21st century inflation is increasing day by day accordingly the
prices of production and manufacturing is also increasing due due to which pricing can be threat
to the industry over the years. Health awareness is another threat company is facing as customers
are more interested to drink juices and fruits rather than chocolates (Brooks, 2012).
Smart Objectives:
 To provide 30% extra on existing quantity for coming 3 month in Organic chocolates.
 To increase sales upto 20% within one year by providing distinguished flavours in
organic chocolates.
 To contribute one- third profits for the education of children's for next 10 years.
STP (Segmentation, Targeting and Positioning):

Segmentation: Cadbury company does market segmentation to enhance advertising,
sales, branding, distribution channels. Segmentation is done by various variables like:
Demographics, Behavioural, Psychographic and Geographic. This firm has distributed it's
product on three segments:
Demographics: Age 12-19 years.
Psycho graphic: Socio economic classification: A1, A2,B1
Behavioural:Quality, rate/prices, strong brand loyalty, occasionally.
Targeting: Cadbury firm is not targeting all the customers in the market but only those
customers who are actually chocolate lovers. The target audience is around 20-30 years of
customers who are chocolate lovers. Organic Chocolates are healthy and crowd who are lovers
of chocolates will be attracted to it directly. Business associates are trying Mumbai airport to
publish their organic chocolates as around six lakh people visit the airport which indirectly
increase loyal customers and helps to increase sales.
Positioning: Positioning in the market is created by it's unique features as Cadbury is
launching Organic chocolates by seeing raising health issues among customers help to create
position in the market. Example: Bournville has position in the market as finest dark chocolate.
Firm itself has been successful in creating position in the market as it makes goods out of milk
and provide different flavours and taste in it (Dibb, 2013).
PEST (Political, Economical, Social, Technological):
Political factor:Political decisions such as austerity and the raped fall in disposable
revenue generation has led to Cadbury undertaking shrinkflation due to which size of the
chocolate has been reduced from the existing size. This process started in the year 2008 recession
and was strictly asked to continue during the Brexit process.
Economic Factor: Cadbury was sold at a lower price as in the year 2010 the value of
pound was less due to which Kraft were able to purchase Cadbury at lower price from it's actual
price. This incurred huge loss to the company and margin of profit was less. Economic factor
plays vital role in the growth and expansion of the business in the global village.
Socio- cultural factor: As customers are more health conscious cadbury firm is asked to
reduce the level of sugar in the chocolates bars. But on the other side organization is relatively
responsive to the dynamic changing world. Example: Cadbury has positively respond to the
campaigns to reintroduce Wispa chocolate bar (Brooks, 2012).

Technological factor: Improvement in technology helps the Cadbury organization in
addressing the raising cost of raw material and transportation and this include innovations like,
heart resistant chocolate which will be beneficial for hotter climate in emerging market. Every
business should do continuous research and development for better innovation in the product
which indirectly helps to grab market ratio and pull customers towards their goods.
Marketing Mix: The term marketing mix means set of actions, tactics and tools that a
company uses to advertise it's product or goods in the market. The 7 (seven)Ps of marketing mix
are as flows:
Product: Cadbury is launching a organic chocolate in the market for its customers. The
organic chocolate should fit the taste and preferences of the goods according to the peoples.
exceptions. Product can survive in the market when the customers prefer their service or goods
in the market or else can be thrown out from the market.
Place:Product can be sold and revenue generation can be earned when availability of
goods I easy to the customers. Cadbury chocolates are available to all grocery stores in the
market from small road side stores to big multi stores building and even online orders can also be
done. They had made the availability of chocolates easy for customers at their door step which
raised their brand awareness and added loyal customers.
Price:The main reason why Cadbury is available everywhere is it's pricing. The prices
are so reasonable that every section on the people can afford to purchase it. Product should be
priced should be charged according to the income of the country. Customers are ready to pay bit
more if the goods are satisfactory and upto their demand.
Promotion:Cadbury does advertisement at a huge scale to make customers about it's
product launched in the market. Firm uses sales promotions, PR, Advertising, personnel selling
and social media ( Facebook, twitter, instagram) to attract customers and generate revenue from
the public and also to be a tough competitors other other chocolate companies.
People:People and product are interrelated with each other, product are made for
customers the ultimate end user of the goods. Cadbury firm make chocolates by taking people as
their first priority, so organic chocolate is introduced for the customers who are chocolate lovers.
Processes: Company uses more processes to develop a product it's cost also incur more
so, firm should use less process or steps to reduce cost of production. The best way to earn profit
is minimize cost of production. Firm should use well, tailored process to minimize cost.

Physical evidence: Products evidence is created in the market by it's unique quality
added to it or by it's distinguished outlet presented to the customers. Cadbury company is known
for its taste of milk in the product as well for the packaging. Example: In the few years the
packaging has changed a lot in the market, Currently in Chocolates a heart shape design can be
seen in mid of the chocolate (Baker, 2016).
Budget: A estimated amount of revenue generation and expenses over a specific time
period, it is re-evaluated and compiled on periodic basis. Every firm has their own set budget for
the product. It shows all the expenses and revenue obtained through out the year.
Marketing Budget
Total amount allocated to the budget is 2,00, 000
Particulars Amount
Advertising on TV (10%) 20000
In social Media Platforms (25%) 50000
On newspapers (10%) 20000
Sales Promotion- (30%) 60000
CONCLUSION: From the above discussion it has been concluded that the new product
of Cadbury must able to capture market ratio and will be able to gain huge profits from the
public. Marketing plan is the initial stage to taste the general public reaction about organic
chocolate. STP helps to find targeted customers and decide segments accordingly while PEST
and SWOT analysis helps to know minute level barriers in the market which help the firm to
expand it business at global level. Here marketing mix plays a vital role to understand the market
scenario. It gives detailed knowledge about each marketing ps which provides rough idea to
business associates to look weather their goods that is organic chocolate will be expected or will
be rejected by the customers.

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