Cadbury Marketing: Analysis, Strategies, and Business Objectives

This report provides a detailed marketing analysis of Cadbury, examining the roles and responsibilities of a marketing manager, the inter-relationship of the marketing function with other functions within the company, and the value and importance of marketing in achieving business objectives. It compares how Cadbury applies its marketing mix (product, price, place, promotion) to the marketing planning process, utilizing tools such as PESTEL, Porter’s Five Forces, and SWOT analysis to develop a basic marketing plan. The report highlights Cadbury's customer-focused approach and the importance of adapting to changing customer preferences to maintain a competitive edge in the confectionery market. The conclusion emphasizes the correlation of all functional units within Cadbury and their contribution to the company's growth and success through effective marketing activities.

MARKETING
ESSENTIALS

CONTENTS
INTRODUCTION.....................................................................................................................................1
Overview of different marketing processes.......................................................................................1
Roles and responsibilities of marketing manager in the context of Cadbury.....................................1
Inter-relationship of marketing function with other functions of Cadbury and their influence.........2
Value and importance of marketing role in the context of Cadbury..................................................3
Conclusion.........................................................................................................................................4
Comparing the ways Cadbury applies its marketing mix to marketing planning process for
achieving the business objectives......................................................................................................4
Conclusion.........................................................................................................................................6
Basic marketing plan for Cadbury......................................................................................................7
PESTEL analysis (External environment)............................................................................................7
Competitive analysis (Porter’s five force)..........................................................................................8
SWOT analysis (Internal environment)..............................................................................................9
Marketing objectives.........................................................................................................................9
Marketing strategies..........................................................................................................................9
STP...................................................................................................................................................10
Market control.................................................................................................................................10
CONCLUSION.......................................................................................................................................10
REFERENCES.........................................................................................................................................11

INTRODUCTION
Marketing is quite essential for almost every organization in this competitive and
modern business environment. It generally includes developing profitable relations,
understanding of the market place, providing quality, customer driven marketing strategy and
demands of the customers. Consequently, the current research report is also focused towards
detailed marketing analysis of the business organization. Cadbury is being taken as a case
company for the current report. It was founded in the year 1831 at Birmingham. The firm
employs more than 45,000 employees in almost 60 nations of the world (Cadbury, 2018).
They have positioned strategically as the 4th highest supplier of chocolates and sugar
confectionery all throughout the world. As a marketing manager of Cadbury, the main aim is
to explain the role and responsibilities of marketing function and their inter-relationship with
other functions of the business. Further, ways in which the marketing mix is being applied in
the company will be evaluated. Finally, basic marketing plan will be developed and analysed
for Cadbury.
Overview of different marketing processes
According to the American Marketing Association, marketing is nothing but a set
procedure that supports the firm in diffusing their products and services to the final
consumers. It is concerned with the product distribution activity and rejects market
segmentation and market research (Elliott, Waller and Rundle-Thiele, 2014). Modifications
are regularly done by AMA in the definition of marketing because of dynamic market
conditions and global upcoming trends. In this present era, customers are king and when it is
related with the retail business, they become quite important. Patrons are pleased by the
companies as the firm offer them many benefits instead of just selling them the products and
services. The success of Cadbury was also dependent on the strategies, tactics and procedures
being used by them. The main of the firm is to offer quality products and services to their
valuable customers which is stylish, accessible, innovative and value money. Marketing
function in Cadbury is defined as the role which is being performed by the firm to identify
and source potential product for the market and for promoting the same (Solis, 2011).
Roles and responsibilities of marketing manager in the context of Cadbury
The main roles and responsibilities of marketing manager in Cadbury are being defined
underneath:
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Roles of Marketing Manager Determining the potential markets – The marketing manager is required to increase
the demand of the products in the market and must determine the potential market as
well. Further, his main role is to establish relations with the existing market. Launching new products and services – The main role is to attract new customers and
retain the old patrons of Cadbury. He basically studies the needs and demands of the
market and accordingly launches new products to satisfy the needs of the target
market Zarantonello and Luomala, 2011). Evaluating the product – The preferences of the customer’s changes with time in this
technological arena and therefore, it is essential to analyse all these changes and
products periodically so that required modifications in the product can be done
effectively. Creating a marketing plan – As per the marketing nature of the Cadbury, the manager
develops an action plan so to identify when, by whom and where the marketing
activities such as sales forecasting, promotion, distribution, advertisement etc. should
be carried out so as to attain the final goals and objectives (Doole and et.al, 2016).
Responsibilities of Marketing Manager
The marketing managers is being defined as a responsible authority for the fulfilment
of the goals and objectives of Cadbury. The main responsibility of the manager are as
follows:
 Accumulating the results of market research and controlling the quality as well as
quantity of production.
 Arranging after sales service and removing the problems of consumers.
 Coordinating different activities of employees.
 Product planning, price fixation and sales forecasting (Ellwood, 2002).
 Educating customers about alternative use of the products and services.
 Development of road map of advertisement and promotion.
 Controlling the credit policy of Cadbury.
Inter-relationship of marketing function with other functions of Cadbury and their influence
Marketing function and other function of Cadbury are inter-related with each other.
There are numerous functions that needs to be undertaken by the firm and every individual
function is grouped into varied department so that efficiency and effectiveness can be
attained. Each and every function such as human resource, production, operations and finance
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have their own direction of performing the tasks (Sager, 2012). However, the activities of
every function within the firm is being directed to achieve the pre-determined objectives of
the firm.
Finance, human resource and marketing department
As discussed above, marketing function is being needed in Cadbury for backing up
other operational department as well as to undertaken all the activities effectively. For
instance, if the firm wants to launch new product and services in the market and want to
develop a marketing plan than will require support from financial department as well to pass
the budget. The need and support of human resource department is worth noting as they will
train the employees in respect of the new product and services (Roy and Andrew, 2003).
Production and marketing department
If the marketing team of Cadbury wants to offer discount on bulk purchase of the
products through varied schemes than they need to communicate and have interaction with
the finance as well as production department of the company at the initial level. Marketing
function and all other function are separate entities in business but they are inter-connected
with one other (The Cadbury story, 2018).
The main function of marketing is to increase the revenue of Cadbury by augmenting
the sales. This can be turned into reality only when all other department of the firm actively
participate in the same (Appleton, McKeown and Woodside, 2011). The finance department
is required to offer appropriate budget to marketing department. Moreover, logistics
department should be consulted for meeting out the demand and supply of products and
services. Thus, marketing departments do have inter-relationship with other department of
Cadbury.
Value and importance of marketing role in the context of Cadbury
The role of marketing is very valuable and important in Cadbury as it helps in
transferring, movement and exchange of good and services. Marketing is quite complex
mechanism within Cadbury which encompasses numerous people in one form or the other.
The main function of marketing in the company are purchasing, selling, warehousing,
transporting, risk bearing as well as standardization. In each and every function, activities are
being carried out by different individuals. Consequently, marketing offers employment to
numerous people. Another role being performed by marketing is creating customer needs
instead of determining customer needs (Chand, 2018). In reality, it begins with
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comprehending the potential clients and then creates the need of the customers. Finally,
marketing function is all vital in the context of Cadbury as it is the only way by which
revenue can be generated or increased.
Conclusion
Therefore, it can be said that all the functional units of Cadbury are correlated with
each other and helps in achieving growth and success. The company is paying more attention
towards offering products to the customers that adds value to them and other stakeholders and
thus, they are shifting their focus in regards with better marketing activities.
Comparing the ways Cadbury applies its marketing mix to marketing planning process for
achieving the business objectives
Focusing in relation with marketing mix, it is being regarded as the foundation tool in
marketing. Further, it is a set of marketing tools that is being used by the organizations to
pursue its marketing objectives in the target market. It includes four broad level of marketing
decision such as product, price, place and promotion. In order to attain the objectives and
goals of the firm, marketing mix is being applied to the marketing planning process. Firms
adopts different methods so as to apply marketing mix amid their firms (Borden, 2011). This
is generally done on the basis of demographics of market, size of the company, market and
products and service of the firm. Cadbury is a British multi-national confectionery company
which has created a big impression both in the international as well as national market
through customer focussed efforts. They achieved this success mainly because of the
extended marketing mix and customer-centric approach i.e. adopted by them. In addition to
this, the application of marketing mix with the marketing planning process is majorly
focussed towards place of selling the products, promotional activities, product dimension and
pricing structure. But, the extended marketing mix utilizes the importance of providing
physical evidence as well as process of delivery to the customers and people (Changchien and
Lin, 2013).
Marketing
mix
elements
Cadbury Hershey’s
All the products of the company are
being designed and manufactured for
improving the experience of the
It is a popular brand that provides
sweet sauces, chocolates and
syrups. Range of products are
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Product
customers. Numerous products are
being offered by the firm such as
beverage, candy, Chocolates etc. They
always make sure that their product
reaches the market at the right time
and place (Enache, 2011).
available in varied shapes and
sizes. They continuously innovate
their products which has helped
them in achieving growth through
the years.
Price
Pricing is being regarded as the most
critical component of the marketing
mix and it includes catalog prices,
offers, discounts and distinctive
choices of financing. Cadbury sets
their prices after analysing the prices
of the competitors.
It is a premium brand and thus, the
firm charges higher prices in
comparison with the other standard
chocolates present in the market.
Place
Talking in reference with the
distribution of Cadbury, it is fantastic
as well as widespread. They are
present in more than 200 nations of
the world and the products are
distributed through varied channels
such as C&F agent, Distributors,
Retailers and Consumers.
The company has its present all
throughout the world in the form of
grocery stores, vending machines,
wholesale clubs, gas stations, drug
stores etc. They are also available
on the online means such as Big
basket. Amazon, eBay etc. Further,
they have strong distribution
network which covers all the major
cities (Hershey's, 2018).
Promotion
Promotion of the firm for their each
and every product is quite different.
For marketing, Cadbury makes use of
ad and new media as it is the best way
of communication. They also promote
through television, shopper contract
movement etc.
The promotion of the products is
being done by Magazine,
Television and Bill Boards. The
main mission of Hershey is to
produce delicious chocolates that is
liked by everyone. They also
makes efforts to position
themselves as a healthy product for
the growing kids and toddlers.
People play a very significant role in The employees and staff members
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People
brand establishment as they are
directly connected in the recognition
of it in the market. They target young
people and children (Lee and et. al,
2016).
of the firm needs to be educated
and trained for managing the
customer’s expectations. Further, it
is vital to motivate the staff
members for the purpose of
maintaining high standard of
services.
Process
The record of all the processes is
being kept by the company along with
the services which are supportive for
the customers. All the processes being
used in the production of the products
are adopted in such a way that it
minimizes the costs and maximizes
the profits.
The success of the service on the
total customer experience is
generally based on the method of
delivery. A smooth process is
adopted by Hershey for effective
flow of operations and activities.
Physical
evidence
They offer brochures, pamphlets as a
guidance to the customers about the
products and keep a record of all the
experience related to buying
behaviour of the customers.
It is being defined as a measure of
determining whether the customer
has received a value or not. For
example, a length of time
consumer has to wait, way
customer is being treated by the
staff members etc. They also
contain paper packaging as well as
internet pages websites that can be
experienced by users (Guido and
et.al, 2011).
Conclusion
Therefore, it can be said that marketing mix is being regarded as one of the most vital
tool that helps the marketer as well as respective firms to understand their product. The
marketing mix encompasses 4 P’s such as product, price, place as well as promotion. Later,
three mix is further included which is popularly known as extended service marketing mix
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i.e. physical evidence, people and processes. All these elements of marketing mix needs to be
planned effectively for attaining the pre-determined objectives of the organizations.
Basic marketing plan for Cadbury
Executive summary
The present research study focusses on evaluating the marketing environment of
Cadbury which is quite popular British Multinational confectionary company. The firm has
innovative ability to achieve competitive edge over the other firms in the market. In order to
analyse the external marketing environment, it is vital to carry out PESTEL and Porter’s five
force analysis of Cadbury and for internal analysis, SWOT analysis will be performed
significantly.
PESTEL analysis (External environment)
Political
 Government of UK is establishing standards for manufacturing
healthy products with clear labelling
 Initiating campaign to advertise healthier way of living among
the citizens of UK
 Fat Tax being introduced by the government on food
Economical
 Changing in the climatic conditions is affecting the yield of the
crops and thus, influencing the prices as well as trade balance
 Economic crisis can influence the spending of the customers
(Saltini and Akkerman, 2012)
 Because of low disposable income, people will spend less on
premium and luxurious chocolates
 Cadbury is downsizing the bars of chocolates before increase in
the rate of VAT
Social
 Because of changing preferences and current social surrounding
in UK, people are now preferring dark chocolates
 Due to economic down turn, people spend less and stay at home
 There is high demand of seasonal chocolates in every occasion
 Due to rising technological advancement, Cadbury need to
increase their research and development efforts (Bayne, 2012)
 Social media tools such as Facebook and Twitter is being used by
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Technological the company for communicating with their customers
 Innovation in technology force the firm to change their packaging
Environmental
 Change in the climate can influence the cocoa farms
 Decrement in the plant of cocoa because of plant disease
 Outburst of Ebola has adversely influenced the production of
Cocoa
Legal
 Cadbury is required to adhere by the Coca and Chocolate
Products Regulations Act.
 All the members of CAOBISCO are required to follow the rules
relating to food and safety being laid down by European Union
 Government of UK has also established penalties for the non-
fulfilment of any type of labelling and description requirement
(Davids and Newcomb, 2015).
Competitive analysis (Porter’s five force) Threats from new entrants – The confectionary market in UK is quite established and
reputed. Further, it is very much controlled and influenced by major players such as
Mars, Mondelez and Nestle (Rogers, 2018). Cadbury is deemed to be an essential
barrier for new entrant as they have strong recognition in the market. Bargaining power of buyers – There are majorly two kinds of buyers of Cadbury i.e.
Ultimate consumers and retailers. Further, players like, ASDA, TESCO, Morrisons,
Sainsbury are forcing more power of negotiation than regular customers (Festa and
et.al, 2016). Bargaining power of suppliers – This industry generally deals with the merchants of
food ingredients and suppliers. Because of the partnership of Cadbury and Cocoa, the
supplier power is kept quite low, as the funds are being invested in the cocoa farms. Competitive rivalry – There is high level aggression in competition can be seen in
confectionary industry. Big players like Nestle, Ferrero, Mondelez and Mars are
indeed very robust brands and giving competition to Cadbury (Cohen, 2013).
 Threats from substitute products – The threat from the substitute is very less, as the
brand equity is the key competitive edge of the firm. Last few decades have witnessed
apprehension of healthy lifestyle and thus, there has been increase in the sales of the
products such as sugar free, calorie bars etc.
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SWOT analysis (Internal environment)
Strength
 Strong brand image, research and
development and innovation in
chocolates
 Successful marketing and promotion
campaigns
 Wide range of products (Brooks,
Heffner and Henderson, 2014)
Weakness
 High price brand and thus, turning
the price conscious people away
 Egg ingredient is making people
avoid purchasing the products
 Lack of penetration in the rural
market
 Problem in product recall
Opportunities
 Potential for growth and a huge
population who do not eat chocolate
till now can be converted into new
users
 Increasing reach in the rural markets Diversification of product range
Threats
 Inflation can decrease the sales
 Health consciousness among the
people
 Increasing cost of raw-materials
Marketing objectives
 Biggest and best confectionery company in the world
 Organic revenue growth every year by 4 to 6 percent
 Growth in the market share by 2 percent every year
 Achieving 80 percent of consumer awareness within 12 months of launch
Marketing strategies
The company majorly focus on the strong brand image and thus, decisions in regards
with the products are in line with the brand image. The products of Cadbury are high quality,
innovative and contains nutritional value as well. Further, no artificial colorants and banned
ingredients are being used (Marketing strategy of Cadbury – Cadbury, 2018). The products of
the Cadbury are being targeted to different segments and thus, prices are marked differently.
Bar chocolates are being offered at premium prices and special deals are also offered at the
same selling prices (Marketing Plan of Cadbury, 2016). The pricing strategy is competitive.
Other than this, the company is available at all distribution channels such as hyper market,
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super market, retail outlets, convenient stores etc. Finally, for promoting their products, the
company makes use of their websites, campaigns, print media, radio and newspaper.
STP
Segmentation Geographic – Urban and sub-urban markets and other villages such as London,
Glasgow, Cardiff, Manchester, Barnstable, Abingdon, Stamford and Sawston. Demographic – By age, gender and income group Psychographic – Lifestyle, attitude and motives
Targeting
All locations all across the UK especially the urban market. Teenagers, children’s and
females is the main target market of Cadbury.
Positioning
The company is targeting wider market and thus they have broader range. Youth
segment is being positioned as love and entertainment. Teenagers and children are attracted
by adventure aspiration and taste & small gifts.
Market control
Market control is the main element of marketing plan. At this stage, activities are
being controlled through effective matching of marketing objectives with the results. All
drafted activities are also considered with a view to have effective checking so that corrective
actions can be undertaken timely (Hawkes, 2013).
CONCLUSION
Thus, it is concluded that it is vital for the firm to realize the importance of customer
relationship and should put their efforts in delivering innovative approach in relation with the
marketing strategy in business.
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