Marketing Strategies for Cadbury's New Product Launch

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Activity 2

Table of Content
• Slide 3- Introduction
• Slide 4- A comparison of how different
organisations apply the marketing mix
• Slide 7- An evaluation of a detailed, coherent,
and strategic marketing plan
• Slide 14- Conclusion
• Slide 15- Reference List

Introduction
• The study compares
marketing mix
components of
Cadbury and Nestle.
It develops a strategic
and coherent plan to
show Cadbury’s effort
in investing in a new
product.

A comparison of how different organisations apply the
marketing mix
Elements Cadbury, UK Nestle, UK
Product Major product categories
served by Cadbury are
chocolate bars, rolls,
beverages, ice cream,
spreads, biscuits, and others.
Cadbury roses, dinky
deckers, dairy milk, fudge
minis, and others are some
examples of sub-categorised
products (cadbury.co.uk,
2019).
Nestle’s products come
under categories of bottled
water, breakfast cereals,
dairy products, drinks,
chocolates, confectionary,
nutrition products, and
others.
Price Cadbury uses both
affordable and premium
pricing strategy for different
confectionary products.
Nestle uses penetration
pricing to price a new
product.

Cont..
Place Cadbury products are
sold through retail
channels in
supermarkets,
convenience stores,
online supermarkets,
and corner shops.
Nestle uses effective
distribution mixes
that help to reach
customers easily.
Products reach
customers from
distribution centres
through wholesalers
to retailers.
Promotion Promotion of
Cadbury is done
through television,
print media, and
social media. The
firm introduces a new
advertisement for
different occasions of
the year.
Advertisement and
public relation are
two methods used by
Nestle to promote its
products. Nestle uses
sticker sampling,
shop boards, and
billboards to
advertise.

Cont..
Physical Evidence Physical evidence of Cadbury includes
company logo, interior, or exterior
design, and packaging and labelling of
products (Kucuk, 2006).
Nestle’s logo, packaging, labelling, and
design are evidence of its business.
Process Cadbury has adopted a formalised process
to increase sales and efficiency. It installed
new technologies that help employees to
achieve more in less time.
Nestle’s products are produced under high
supervision of professionals and advanced
technology.
People Employees at Cadbury believe in
providing excellent customer service and
creating positive customer experience
(cadbury.co.uk, 2019).
Nestle gives extensive training to each
employee during initial stage of joining
(nestle.co.uk, 2019).

An evaluation of a detailed, coherent, and strategic
marketing plan
Executive Summary
• The plan has formulated
objectives to work upon on new
product.
• It conducted situational analysis
to know how internal and external
environment of Cadbury perform.
Company Background
• Cadbury Dairy milk is a chocolate
brand produced by Cadbury.
• It was introduced in 1905.
• It is the best-selling chocolate bar
inthe UK in 2014.

External Analysis
PESTLE Factors Impact
Political Cadbury shall face challenges of more production, distribution,
and supply chain cost post-Brexit events. Political stability gives
Cadbury strength of taking business initiatives without much
conflict with political bodies.
Economic UK’s healthiest economic condition is observed large amount
nominal GDP. Cadbury Dairy milk will be able to employ more
personnel with a better salary. With a higher standard of living,
purchases of confectionary products may increase.
Social The number of health conscious population has increased in UK.
People have started liking sugar free, less sugar, and naturally
flavoured products.
Technological Technology shall alter production and packing of Cadbury, giving
it the opportunity to produce more with minimum effort.
Legal Legal environment of UK addresses some key areas of
employment and business. For example, ‘Employment Act 1996’
focuses on areas such as leave, holiday and sick pay, minimum
wage, and
Environmental Environmental regulations and awareness by British Government
encourage Cadbury to modify production and packaging systems
to reduce waste removal and decrease impacts of hazards on the
environment.

Internal Analysis
Strength
 Strong manufacturing process
 Diverse product ranges to
compete in emerging market
 Strong brand value
Weakness
 Direct competition with other
confectionary brands
 Government regulations on high
fat and sugar products
Opportunities
 Emerging markets give
opportunity to increase market
share
 Production can be transferred to
low-cost nations to save costs
including packaging,
production, and transportation
Threats
 Increase the cost of production
because of Brexit chaos
 Large numbers of health
conscious consumers

Market strategy
• Cadbury dairy milk shall use
demographic segmentation to
determine target consumer groups.
• Age will be the parameter to divide
customers
• Target group will be middle to old
aged people, who do not take
chocolates due to high sugar
contents.
• Positioning shall be done by stating
healthy facts about this new
version of chocolate.

Cont..
Elements Option
Product Product will be a new version of Dairy milk chocolate with
natural sugar content.
Price Cadbury shall use a skimming pricing strategy to price the new
product.
Place It will use existing distribution mix and channel to sell a new
product.
Promotion YouTube advertisement will be a better option to promote the
new version. It can be less expensive to implement.

Monitoring and Controlling
• Cadbury shall define performance indicators
to monitor activities based on the standard.
• These indicators will be sales volume, profit
margin, market share, and others
• If Cadbury witnesses any deviation, it shall
make changes to its marketing mix
elements.