Cadbury's Marketing Plan: Analyzing 'Coffee Choco Shakes' Launch

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This report provides a comprehensive analysis of marketing essentials, comparing the application of the marketing mix by Cadbury and Nestle to achieve their respective organizational objectives. It evaluates the different strategies employed by each organization, highlighting their approaches to product, price, place, promotion, physical evidence, processes, and people. The report also introduces and analyzes Cadbury's marketing plan for launching 'Coffee Choco Shakes,' utilizing the SOSTAC model and SWOT analysis to assess the current situation and formulate effective strategies. The analysis covers various aspects of the marketing mix, promotional tools, and distribution networks, aiming to provide insights into achieving marketing objectives and enhancing customer satisfaction. Desklib offers a wide array of similar solved assignments and study resources for students.
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MARKETING
ESSENTIALS
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Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1 Covered in Booklet............................................................................................................1
TASK 2............................................................................................................................................1
P3 Comparison between application of marketing mix to achieve organisational objectives by
different business....................................................................................................................1
M3 Evaluation of different strategies applied by organisation to achieve business objectives. .5
TASK 3............................................................................................................................................7
P4, M4, D2 Introduce and analyse organisation's marketing plan.........................................7
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12
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INTRODUCTION
Marketing is a discipline which involves action of organizations taken to grab customer's
attention and build long-term relationships. It basically seeks to align products or services with
customer who wants them and ensures profitability. Marketing activities includes advertisement,
selling and delivering of products to consumer or businesses as raw material. Importance of
marketing functions in organisation is increasing day by day as it helps in improving brand
awareness, saves time and resources, boots sales, expand businesses, etc. Cadbury is
multinational confectionery company based in UK (Baker and Magnini, 2016). It is located in
Uxbridge, West London and operates in around 50 countries in the world and best known for its
Dairy Milk Chocolates which is market leader in industry. Now, it has introduce 'Coffee Choco
Shake' which is new range of Shakes. This report will cover important roles and responsibilities
of marketing functions which is perform by team of marketing department. These are essentials
for organisation so that objectives can be achieved effectively. Inter Relationships between
various functional units of organisation and marketing department will also be studied so that
integrated efforts are analyzed to attain objectives of business. Ways and strategies will be
compared by which different companies apply marketing mix to their overall objectives so that
marketing plan is also accomplished. At last basic marketing plan with different plans and
strategies will be produce and analyze for introduction of new product in market. This helps
company to launch its new product or range of products in effective and sustainable manner so
objectives can easily achieved.
TASK 1 Covered in Booklet
TASK 2
P3 Comparison between application of marketing mix to achieve organisational objectives by
different business
Marketing mix: It refers to set of strategies used by company to endorse its product or
service in market. It typically consist of 7P's, Product, Price, Place, Promotion, Physical
Evidence, Processes and People elements. Cadbury has objectives of increasing sales revenues
with increase in market share while Nestle is focusing on enhancing customer satisfaction in
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target market. All components of marketing mix are interrelated and sum up to frame plan for
business strategies to achieve organizational goal. It requires research and in depth knowledge of
internal or external environment so that it can be prepared successfully. There is difference in
ways by which Cadbury and its competitor Nestle apply marketing mix to business plan to target
its goals and objectives, 7P's of both brands is discussed below:
Particulars Meaning Cadbury Nestle
Product It is goods or service that
company offer in market
to satisfy customer needs
and generate revenue
(Pike, 2015) (Campbell,
Martin and Fabos, 2018).
Company has wide
range of products with
different variety of
each. It has various
chocolates like Five
star, Dairy Milk,
Bournville, etc. and
Oreo as Premium
biscuits. In beverages
product line it has
Bournvita which is one
of dominating product
in industry.
It has different range
of products lines in
beverages, milk items,
foods and chocolates.
It has number of
products like Nescafe,
Munch, Kitkat, Milky
Bar, Maggie, etc.
Price: It is value of product or
services offered in
monetary terms that
customer is willing to
pay. Company adopts
different pricing strategies
so that it can generate
revenues with profits
margins.
For chocolates like
Dairy Milk and
Bournville, Cadbury
has adopted Premium
Policy because of its
quality, taste and
variants it is available
in market. For other
products like
chocolates and biscuits
Nescafe and Maggie
have skimming prices
according to packages
and sizes Nestle offers
of these products in
target market. Other
products like
chocolates have
competitive pricing
policy which is
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company has adopted
competitive pricing
policy which is
according to prices of
competitor products.
according to other
substitutes available in
market.
Place This factor represents
important aspect of
marketing strategy
because it decide place or
market where it will be
convenience for customer
to access the products.
Company uses
different distribution
channels like supply
chain networks, E-
commerce platforms
and official websites
which is widely spread
and accessible by
customers (Malhotra,
2015).
Nestle uses two types
of distribution
methods. One is
distribution
management and
another is sales
network of marketing
team which is wide
and extensive.
Promotion: It includes all activities
like advertisement,
branding, public relations,
offers that encourages
customers to buy products
or service. It
communicates message
with information about
brands and influences
buying decision of
consumer.
Cadbury uses different
promotional tools and
tag lines for its
products. For
Bournville
promotional tools are
applied as premium
products displaying
about its quality. For
Cadbury Celebrations
it is positioned as gift
in target markets so
that customers use it as
gifting items.
Remaining products
Company has strong
advertising campaign
which is recognisable
by Nescafe tune. The
recent campaign of
Maggie in which
individuals are telling
their story was
impactful. It is also
done on online
platforms with creative
designs and appeal so
that it can influence
buying behaviour.
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also have different
brand positions in
target market.
Processes: It includes all processes
by which product or
services are delivered to
customers, maintain
relationships and
manufacturing operations
of product.
Cadbury processes
focus on providing
products with ease to
customers so that it is
effective in market
with distribution
operations and
marketing team. This
helps company to
achieve its objective of
increasing sales in
target market.
Nestle ensures that its
products are available
with ease on every
retails outlets with the
help of distribution
channels and sales
executive teams active
in personal selling. It
also accessible with
online delivery on
official websites and
other e-commerce
platforms. This
ensures that customer
experience is improved
and they become loyal
towards the brand.
Physical Evidence: Physical place is where
customer and selling staff
meets like retails outlets,
personal selling space,
etc. Along with this, cases
and testimonials of
present customer
provides evidence that
reduces uncertainties of
other buyers.
Cadbury labelling and
packaging is different
and unique in its
colour and logo which
serves as physical
evidence of company
and easily recognise
by buyers.
Products of Nestle are
available in distinctive
packages sizes, unique
colour and printed
logo which makes it
easy for buyer to
differentiate it from
other products.
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People: It plays crucial role in
achieving marketing plans
because it includes people
selling product and
identifying customer
needs to produce product
accordingly.
Customer care service
team is effective and
active towards
handling grievances.
Sales and marketing
team is efficient and
trained so that they can
perform with full
productivity
(Marketing mix of
Cadbury, 2018).
It has efficient sales
team which is
important for any
company. It also have
customer service
department which
takes feedbacks and
take actions in case of
grievances. Employees
are working on retail
stores so that they can
help buyers and
influence customer
purchasing decisions
for brand (Nestle
Marketing Mix
Strategy 7Ps Analysis,
2018).
7P's of marketing plan is crucial for success of products as manufacturing goods or
services without making related decisions about price and promotional activities to promote it,
will not aware audience about company's offering in markets. Cadbury and Nestle have their
own different ways to develop and apply marketing plan in order to achieve organisational goals
or objectives. Offering variety of products Nestle uses different pricing strategies to charge for
its products while Cadbury applies Premium pricing and competitive pricing to have competitive
advantage. Cadbury applies mix of traditional and modern promotional techniques, on other hand
Nestle uses social media platforms to promote its products. This helps both brands to achieve
organisational objectives and remain competitive in industry.
M3 Evaluation of different strategies applied by organisation to achieve business objectives
Cadbury: There are different product line in which company deals like chocolates,
biscuits and flavoured food drinks which targets every age group segments of population so that
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it covers segments of market so that market share is increased. It operates world wide and applies
different pricing strategies like skimming policies according to product quality and competitors
price. It has wide and extensive distribution network which covers every retail outlets and
multiplex stores so that its product is easily accessible. This helps to cover target market and
make product available so that its sales is increased. It uses different promotional tools and
techniques for its various products like Bournville is advertise as Premium Product and other like
chocolates and biscuits as quality item in market. This helps company to positioned its products
accordingly in target market so that its share of market increases. People aspects of marketing
mix comprises of trained and skilled staff which assist business to make product accessible with
ease to every buyer. There is also customer care services which is efficient in handling and
resolving complaints and grievances in pro active manner (Purvis, 2015). This helps in
improving customer satisfaction which leads to increase in sales revenue for company.
Packaging and labelling of every product in line is unique in sizes, logos, colour and different so
that it is easily recognisable, can be distinguish by buyers from that of similar and competitors
products. There are different processes of research by which Cadbury conduct market research,
identify factors which affects consumer buying behaviour and manage supply chain management
with the help of different functional units of organisation. All above points shows that company
adapts marketing mix in such way that it is helpful in achieving objectives of marketing plan and
overall objectives.
Nestle: There are different products like chocolates, biscuits, Coffee, Maggie and other
range which helps company to capture big share of market by targeting different age group in
segments. There are skimming pricing strategies which is adapted by business according to sizes
and packets of products so that every segments of market is covered. It has strong and wide
supply chain distribution which have positive results as products are available with ease to
consumers. It uses different advertising campaigns for its different products so that powerful
impact is left on buyers that can influence their buying behaviour and decision. Nestle has
talented and skilled sales and marketing team which helps company to handle complaints and be
active in increasing satisfaction level of customer. There is experienced sales executives which
provides complete information about product and its uses. It uses different processes of research
and development to conducting research, analyse trends and competition, effective promotional
tools for advertising, training and development of staff so that company is efficient in every
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aspects of business. This will helps company to enhance customer satisfactions and thus market
share of organisation. It is creative and innovative in packaging and labelling its products which
attracts consumers and children up-to great extend which also helps in increasing customer
experience. (Lane, 2016).
TASK 3
P4, M4, D2 Introduce and analyse organisation's marketing plan
Marketing Plan is document that brings out promotional strategies which will be
implemented by organisation to generate revenue and reach target market. It includes
specifications of products or market and related activities to achieve marketing objectives within
specifies time. Cadbury will introduce 'Coffee Choco Shakes' which is range of Dessert under its
brand name. To launch this product company will frame marketing plan with use of SOSTAC
model. This model contains general marketing actions that are applied to commercialize product
or services. The detail of steps in model is given below to introduce 'Coffee Choco Shakes' for
Cadbury:
Situation: Cadbury presently deals in various range of products and will launched
'Coffee Choco Shakes' which is range of Shakes. Analysing current position of Cadbury with
help of SWOT analysis which examine strengths and weaknesses of internal environment along
with threats and opportunities from external environment, are as follows:
Strengths Weaknesses
ď‚· Strong brand image in selling
chocolates
ď‚· Captured big market share in industry
ď‚· strong channel of distribution is one of
its strengths (SHUKLA, 2016)
ď‚· Higher employee turnover rates.
ď‚· Distribution in sub-urban area is weak
and thus affecting its demand.
ď‚· Cases of poor quality in chocolates
Opportunities Threats
ď‚· Changes in customer taste and
preferences bringing opportunities to
grow and expand
ď‚· It is an opportunity to supply in sub-
ď‚· Production cost of Cadbury is high as
compared to other competitors which is
leading to high prices.
ď‚· As healthy lifestyle awareness is
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urban area so that market share can be
increased
ď‚· There is opportunity for Cadbury to
increase their variants in new product
due to changes in taste and
specifications
increasing these days it is affecting
demand for products.
ď‚· As importance of occasions and
festivals is decreasing it is also
affecting demand. (SWOT analysis of
Cadbury, 2018)
Objectives: This step of model will study mission, vision and business goals of Cadbury
for coming years. It includes organisational objectives that company wants to achieve with help
of course of actions to attain goals (Zimmerman and Blythe, 2017).
Mission: Cadbury mission is to improve quality as its brand image is based upon
qualitative products it offers and continuous improvements in same.
Vision: Long-term goal of Cadbury is to become brand that individual loves
Objectives: Cadbury wants to achieve leadership in industry to earning higher
profits and providing variety of innovative product line.
ď‚· To increase sales by 20% within 1 year through employing effective promotional
strategies to introduce 'Coffee Choco Shake'.
ď‚· To increase market share by 10% in 2 years by improving brand image and building
customer relationships.
Strategy: It includes combinations of actions and plans that will help company to
achieve organisational goals or objectives with limited resources in specified time period. To
introduce product and target potential customer, Cadbury will adopt different type of strategies
such as:
Segmentation: It defines that how market is divided into sub sections on basis of various
characteristics like gender, age, lifestyle, income level, etc. Depending on these divisions,
segmenting is done to target potential and new customer. For this product company will segment
on basis of age and lifestyle.
Targeting: 'Coffee Choco Shake' target market will be kids and teenager of age 7 – 20
years that also who likes to eat dessert.
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Positioning: Cadbury have strong brand image that will assist new product in promotion
and trust of customers in quality of products. Display in exclusive stores, official website of
Cadbury, E-commerce platforms, social media will play important role in positioning its new
product in mind of customers.
Tactics: It defines all those actions taken by Cadbury to build marketing plan to
introduce new products and various other decisions that will directly or indirectly affects new
product in market (Nirschl and Steinberg, 2018). For this company will make appropriate
marketing mix in accordance to 'Coffee Choco Shake' and frame decisions related to product and
other areas of operations, which is discussed below:
Product: It represents finished goods and services that company offers in target market so
that it can meet their needs. New product launched by Cadbury is 'Coffee Choco Shake' which
comes in shakes range. This will help brand to have competitive advantage in industry and make
profits at early stages of introducing products by attracting customers to qualitative taste.
Price: It that value which buyers pay for the quality and other attributes of products or
services. For company it involves cost incurred and profits margins so that organisation can
sustain and grow in market. Cadbury will adapt Premium Pricing strategies under which high
prices will set to create perception of high value of introducing product in market. Later on
when competitor will come up with similar types of cake, company will adapt cost leadership
pricing policy to capture share in market with same quality.
Place: It is supply chain management of company which ensures that product are
available at every outlets and stores which is under target segment of market. It will be available
on every retails outlets, mall shops, online websites on official websites and other online E-
commerce websites will provide customers to access new 'Coffee Choco Shake' with ease.
Promotion: It is various combinations of promotional tools and techniques that
organisation uses to attach and influence purchasing decisions of consumers. Various traditional
methods like televisions, print media and modern marketing tool like social media, advertising
campaigns, live demonstration by staff on exclusive stores of Cadbury will be used to market its
new range of products(Perreault, 2018).
People: It includes customer, employees, stakeholders and general public which directly
or indirectly affects brand and its image in market. Company will providing training sessions to
ground staff for handling customer grievances, build relationship rather than pitching sales,
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attend customer with positive behaviour. Cadbury will identify customer taste and make changes
in new range of shakes accordingly so that market share is increased.
Processes: These are procedure and processes that company uses of its different
operations so that they are effective in every aspects of business. Methods and procedures that
are used in 'Coffee Choco Shakes' will be set according to industry standards that are set by UK
government along with controlling techniques to avoid deviations. Quality will be maintained
with Total Quality Management which controlled quality in every step of manufacturing Shakes
as per targeted standards of Cadbury to satisfy customer's needs.
Physical Evidence: It includes that place where product will be available to customer and
other materialistic aspects of products. Cadbury will ensures that packaging and labelling in such
a way that will attract consumers and distinguish products from that of competitors (Rowley,
2017). It will maintained its traditional packaging style, materials and colour which will help
customer to recognise that it is product of Cadbury.
Actions: To launch new product, Cadbury will employ factors like specific time to
launch product like some festive season in UK, adequate sources of finance for example like
retained earnings or investors. Automated latest technology in manufacturing so that quality is
maintained and testing in small market segments of UK in some selective cities. This will ensure
efficiency and effectiveness in introductory stage of product launching of 'Coffee Choco Shakes'
Cadbury. In this step all plans and strategies are put into actions and implemented within
specified time to introduce new product. This stage ensures that every action and strategy is
according to marketing plan so that objectives are achieved and launch of new product is
successful which helps to increase its brand image and positioning in market. This stage is
characterised by budgets and time are allotted to each marketing activity so that their operations
runs smoothly and in direction of attaining marketing and overall objectives of Cadbury. In this
qualitative aspects are maintained and controlled using different tools like Total Quality
Management which ensures that quality is maintained in each and every aspects of activity in
marketing plan so that overall standards are achieved (Hugos, 2018). This tool is applied to
analyse that tasks are accordance to budgets and standards that are allotted and sets to achieve
objectives.
Control: The most important step in SOSTAC model is controlling and analysing whole
processes to avoid delays and distortions in maintaining quality. It starts with recording actual
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results with the help of analysing performance of activity in terms of budgets and other
resources. After that comparison is done between estimated outcomes and actual results to find
out gap between them so that it can be planned again. If any variance occurs in process or end
results, corrective actions will be taken to reduce actions and for future reference. While
introducing product it is important to rectify differences thereon, so that organisational objectives
can be achieved efficiently. This ensures that marketing plan is according to objectives of
business and its operations. This is effective in evaluating success of new product of Cadbury
and future development so that further strategies can be planned to gain market share and
increase customer satisfaction (Stern, and Porr, 2017).
CONCLUSION
From above assignment it is concluded that marketing includes all various activities
necessary to produce products and deliver it to end consumers. It involves processes like
conducting research, analysing data, producing product, promotional activities and distribution
channel. It is important that marketing activities are effective so that proper identification of
customers needs and wants so that products are designed and distributes to meet buyers
expectations. Functions of marketing includes combination of strategies and plans to efficiently
carry out marketing activities so that business targets are attained with efficiency. It is consists of
actions which are taken to achieve marketing objectives which are align to organisational
objectives. There are number of roles and responsibilities of marketing functions that helps
organisation to target its goals in context of modern environment of marketing. Marketing mix
comprises of all those aspects of products and operations which describes every dimensions
while framing decisions related to products and other factors. Its involves product specifications,
pricing policies, distribution channel, promotional strategies, affected people, operating
processes and physical evidence about products. Marketing plan includes overall decisions of
organisation using SOSTAC model which analyse present situations, mission, vision, objectives,
marketing mix, implementation of actions and controlling processes to avoid deviations in
performance. This model is effective in introducing new product in market and control actions or
strategies that are essential to position in target segment so that objectives of organisation are
achieved.
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REFERENCES
Books and Journals
Baker, M. A. and Magnini, V. P., 2016. The evolution of services marketing, hospitality
marketing and building the constituency model for hospitality marketing. International
Journal of Contemporary Hospitality Management. 28(8). pp.1510-1534.
Baker, M. J. and Saren, M. eds., 2016. Marketing theory: a student text. Sage.
Campbell, R., Martin, C. and Fabos, B., 2018. Media essentials: A brief introduction. Bedford/St.
Martin's.
Gillespie, K., 2015. Global marketing. Routledge.
Hair Jr, J. F. and et. al., 2015. Essentials of business research methods. Routledge.
Hugos, M. H., 2018. Essentials of supply chain management. John Wiley & Sons.
Lane, P., 2016. Human resources marketing and recruiting: essentials of employer
branding. Handbook of Human Resources Management, pp.23-52.
Larson, J. and Draper, S., 2015. Internet marketing essentials. Idaho Falls, ID: Stukent
Incorporated.
Malhotra, N. K., 2015. Essentials of marketing research: A hands-on orientation. Essex: Pearson.
Nirschl, M. and Steinberg, L., 2018. Einstieg in das influencer marketing: grundlagen, strategien
und erfolgsfaktoren. Springer Gabler.
Perreault, W. D., 2018. Essentials of marketing. New York: Mc Graw Hill.
Pike, S. D., 2016. Destination Marketing Organizations–Research opportunities in an era of
uncertainty. In Book of Abstracts-6th International Conference on Tourism.
International Association for Tourism Policy (IATOUR).
Pike, S., 2015. Destination marketing: essentials. Routledge.
Purvis, J., 2015. Human resources marketing and recruiting: Essentials of digital
recruiting. Handbook of Human Resources Management, pp.1-19.
Rowley, J. E., 2017. Information marketing. Routledge.
Rowley, J., 2016. Information marketing. Routledge.
SHUKLA, P., 2016. Essentials of marketing research.
Stern, P. N. and Porr, C.J., 2017. Essentials of accessible grounded theory. Routledge.
Wirtz, J. and Lovelock, C., 2016. Services marketing. World Scientific Publishing Company.
Zimmerman, A. and Blythe, J., 2017. Business to business marketing management: A global
perspective. Routledge.
Online
Marketing mix of Cadbury. 2018 Online. Available through:
<https://www.marketing91.com/marketing-mix-of-cadbury/>
Nestle Marketing Mix Strategy 7Ps Analysis. 2018 Online. Available through:
<https://www.essay48.com/term-paper/13633-Nestle-Marketing-Mix>
SWOT analysis of Cadbury. 2018 Online. Available through:
<https://www.marketing91.com/swot-analysis-of-cadbury/>
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