Marketing Chocolate: Cadbury's Strategies and Organizational Context

This report provides a detailed analysis of Cadbury's marketing strategies, examining its key roles, responsibilities, and organizational context. It explores the marketing mix, including product, place, price, and promotion, and compares Cadbury's strategies with those of Nestle. The report delves into Cadbury's marketing plan, covering objectives, segmentation, targeting, positioning, and SWOT analysis. It highlights Cadbury's strengths, such as its strong brand, and weaknesses, like its failure to capture the rural market. Opportunities, including healthy chocolate options, and threats, such as increasing competition, are also discussed. The report offers a comprehensive overview of Cadbury's marketing practices, providing valuable insights into its strategic approach to the confectionery market.

Marketing
Chocolate (UNIT
2)

Table of Contents
INTRODUCTION...............................................................................................................3
MAIN BODY.......................................................................................................................3
Key roles and responsibilities of marketing function......................................................3
The roles and responsibilities of marketing in relation to wider organizational context.4
Comparison of marketing mix of different companies....................................................5
Marketing Plan...............................................................................................................8
REFERENCES..................................................................................................................1

INTRODUCTION
Marketing refers to all the activities undertaken by an organization to promote the
buying and selling of its goods and services. It includes advertising, selling and
delivering of products to its customers. It is imperative for every business to market its
products in order to become successful. The main objective of marketing is to identify
the needs and wants of customers and develop goods and services accordingly.
Cadbury is a British Multi national confectionery company founded in Birmingham,
England in 1824 by John Cadbury. Headquartered in London, United Kingdom, the
company is now owned by Mondelez International and it ranks as the second largest
confectionery company in the world after Mars. As of 2019, there are more than 70,000
employees working for Cadbury in 50 countries. The current study will highlight the
importance of marketing strategy in introducing a new product or service and how it can
help in the achievement of organizational goals and objectives.
MAIN BODY.
Key roles and responsibilities of marketing function
The marketing function plays several roles and responsibilities as it is concerned with
the process of converting a concept into product or service. Through its medium, the
goods and services are brought to the place of consumption. Its roles and
responsibilities include:
 Gathering and analysing market information: Its is very important for an
organization analyse the market information through proper research and
development in order to identify the latest trends in the market, level of
competition, needs and wants of consumers, level of quantity required, at what
price and the source of distribution. After analysing the market information,
Cadbury plans to spread its operations online where it can chocolates and other
confectionery items directly to its customers as it would not only help them in
reducing the operational cost through elimination of middle men but also increase
the market share which will lead to profit maximization (Kotler, Harker, and
Brennan, 2018).
 Setting marketing strategy: The most important role of marketing is that it helps
in developing strategy for the business that can help them in increasing the sales

of its products and services. Cadbury's marketing strategy involves increasing
the sales of their newly launched product by 25% at the end of 2020. Once the
strategies are developed, then plans are formulated regarding the achievement
of these stratgies.
 Product designing and development: Product designing and development is
concerned with manufacturing a product or service after identifying the customer
needs and wants and performing the market research. The company currently
plans to launch a new product or service into the market which can be done by
applying the marketing skills effectively and efficiently. Cadbury aims to introduce
the product with unique packaging as it will help in attracting customers and
maximize the sales of the organization.
 Communication and promotions: The major role of marketing function is
concerned with communicating with the customers and develop a relationship
with them. It is important to maintain customer relationship by addressing their
problems, enhancing their overall experience as it would help in building a brand
image of the organization and further lead to customer loyalty. Cadbury company
promotes its products and services through TV advertisements, internet, social
media campaigns and through E-mail marketing (Bailey, and Alexander, 2019).
 Sales team support: Another role of marketing involves coordinating with sales
department as it can help in the achievement of goals and objectives effectively
and efficiently. The marketing department can help the sales department by
providing them various leads related to target customers and further can help in
increasing the overall profitability of the organization. It also helps the sales
department by providing them with promotional ideas that can attract consumers
towards the product or service.
The roles and responsibilities of marketing in relation to wider organizational context.
All the departments in an organization are directly or indirectly inter related with
each other because each functional unit is important for the growth and success of the
business. The major departments of Cadbury includes finance, marketing, production
and human resource. The inter relationship between different functional units of
Cadbury is as follows:

 Marketing with human resource: Marketing and human resource are the two
important pillars of an organization and both play a significant role in the growth
and development of the company. It is very important to retain the right talent in
order to maximize the sales and profitability of the company. It is the duty of the
human resource department to select right individuals at right time and at right
place so that they can use their skills and knowledge to accomplish
organizational goals and objectives effectively and efficiently. Without skilled
employees, Cadbury will fail to develop marketing strategies and promotional
activities that may ultimately hamper the growth prospects of the business. Also,
the skilled and talented employees continuously study the market trends and
then adopt these changes in their marketing activities as well. Thus, human
resource and marketing function both play a significant role in the growth of
Cadbury company and also helps them in achieving competitive advantage (Bell,
2017).
 Marketing with finance department: The marketing and finance department
are directly inter related with each other. Although, the finance department aim
towards saving the funds and managing the expenses whereas marketing
department focuses on spending the money on market research and other
promotional activities. Cadbury's finance department allocates funds to the
marketing team that is used for developing a new product or service. Moreover,
the finance department of Cadbury works closely with marketing department to
monitor the trends in the business as well as manage the efficiency of sales
promotions initiated by the organization.
 Marketing with production department: Both marketing and production
department are inter related with each other as marketing department cannot
sale with production department producing it. Also, the marketing department
provides various information to the production department regarding the
customer needs and wants, packaging and labelling and the production
department manufactures the products and services accordingly. Therefore, both
the departments are inter related with each other as one provides information

about the type of goods that need to be manufactured and the other department
actually produces it (Bharucha, 2016).
Comparison of marketing mix of different companies
Marketing Mix Cadbury Nestle
Product Cadbury company has a
huge line up of products but
the company mainly deals
in confectionery items like
chocolates, cookies and
milk additives. Some of its
products include Dairy Milk,
5 Star. Bourn vita and Oreo.
Cadbury identifies the
needs and wants of its
customers, performs market
research and then develop
products in order to provide
maximum consumer
satisfaction.
Nestle offers huge range of
consumer goods like
confectionery, baby food,
packaged drinking water,
coffee and cereal. The
company focuses on
continuously improving the
quality of its products and
services and also develops
something unique by
research and development.
Place Cadbury has spread its
operations in 50 countries
all around the world. The
company follows 4 level
channel of distribution
where the goods are
distributed by company to
agents, then to distributors,
whole sellers and finally
retailers. This is done
mainly because of the huge
Nestle operates in 189
countries and has 447
factories all across the
world. The company follows
bot 4 and zero level
distribution channel where
the goods are sold by the
company directly to its
customers through opening
its own franchise stores. It
helps in reducing the

demand of its products and
services.
operating cost of the
business by eliminating the
profits of middle men.
Price The price of Cadbury
products vary from high to
low as a result it attracts all
kind of customers and thus
maximizes its profits (Stead,
and Hastings, 2018).
The Nestle products are
priced on the lower end
because the company
follows the market
penetration price strategy
where it attracts many
customers by providing
them good quality products
at nominal prices. This is
done by Nestle to achieve
competitive advantage over
other players in the market.
Promotion Cadbury promotes its
products and services
mainly through TV
advertisements as it
communicates the idea of
product to large number of
audience and also the cost
per person is very cheap.
Nestle company promotes
its products and services
through TV advertisements,
internet, social media
marketing, Direct E-mail and
also by providing various
rebates and attractive
discounts.
People People refer to the number
of employees that work for
the organization. Cadbury
company employs 71,000
individuals globally so that
they can work with
maximum efficiency for the
Nestle is the largest food
producing company in the
world and it employs
300,000 skilled individuals
globally.

achievement of goals and
objectives.
Process The process followed by
Cadbury company involves
providing quality products
and services to maximize
the consumer satisfaction
and to improve the brand
image of the business.
The company spends a lot
of money into research and
development so that it can
develop innovative products
that create value for
customers and also
maximizes its profits.
Physical Evidence The physical evidence
involves the attractive
packaging of Cadbury
company that influence the
consumers into buying its
products and services.
The physical evidence
involves include the design
of Nestle products and how
it attracts consumers
(Ramli, 2017).

Marketing Plan
 Objectives: The objective of Cadbury is to become the world's largest
confectionery company by manufacturing good quality products and services for
its customers and thus achieving profitability.
 Segmentation, targeting and positioning
Segmentation: Market segmentation is concerned with the process of dividing
customers into groups or segments, based on different characteristics. Cadbury has
segmented its customers on the basis of:
Demographics: The Cadbury chocolates are mainly consumed by children from ages 7
to 18. The confectionery boxes are mainly purchased by adults or family members.
Psychographics: Cadbury offers attractive packaging and labelling that attracts target
customers towards the brand and also the company uses the help of celebrity
endorsements that help in influencing the buying decision of consumers.
Targeting: Targeting refers to identifying the potential customers and then developing a
product or service accordingly. The company targets children and young population an
design the packaging and labelling accordingly to attract them so that they can
purchase the products (Sharland, 2019).
Positioning: Positioning refers to the place that a brand occupies and how is it
distinguished from the competitors. Cadbury provides high quality products at low prices
which has helped them in achieving competitive advantage.
SWOT analysis
Strengths
 Strong brand has always helped Cadbury in achieving competitive advantage
and maximized its profits (Todorova, 2015).
 Excellent marketing and advertising campaigns has helped Cadbury in
increasing its market share by attracting new customer base towards the
organization.
Weaknesses
 Failing to capture the rural market is the biggest weakness of Cadbury as the
products are expensive compared to its competitors.

 The consumers fail to differentiate between different varieties of Cadbury
chocolates which has affected the image of the company.
Opportunities
 The company can increase its market share by providing healthy chocolates or
protein bars that contain less sugar and carbohydrates. It will increase the market
share of the organization.
 The company can spread its operations online and directly products to its
customers as it help them in maximizing their profits.
Threats
 Increasing competition from other players in the confectionery industry will
reduce the market share of Cadbury in the long run.
 Lack of innovation will reduce the sales of Cadbury products as customers want
new and unique products every time.
Marketing Mix:
 Product: Cadbury company provides good quality products and services to its
customers and provide variety of products after identifying the needs and wants
of its target audience.
 Place: The company operates in 50 countries and follows 4 level distribution
channels where the goods and services are sold to its customers via middle men.
 Price: The price of Cadbury products vary from low to high and it develops them
for different customer base.
 Promotion: It uses TV advertisement and Social media to market its products so
that it reaches wide audience and earn profits for the organization.

CONCLUSION
From the above study, it can be concluded that marketing is an essential part of
every business and every organization must develop marketing strategies if it wants to
become successful. It also included information related to the roles and responsibilities
of marketing, inter relationship between marketing and other functional units and
marketing plan.
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REFERENCES
Books and journals
Kotler, P., Harker, M.J. and Brennan, R., 2018. Marketing: an introduction. Pearson UK.
Bailey, A.R. and Alexander, A., 2019. Cadbury and the rise of the supermarket:
innovation in marketing 1953–1975. Business History, 61(4), pp.659-680.
Bell, J., 2017. 'Setting the joy free'with Cadbury UK: A CDA analysis of how persuasion
is communicated within Cadbury UK's social media discourse, according to
Aristotle's' persuasive proofs'.
Bharucha, J., 2016. Cadbury Vs Nestle: A Study of The Chocolate War. International
Journal of Research in Social Sciences, 6(9), pp.609-620.
Ramli, N.S., 2017. A review of marketing strategies from the European chocolate
industry. Journal of Global Entrepreneurship Research, 7(1), p.10.
Sharland, A., 2019. Kraft's acquisition of Cadbury. Thunderbird International Business
Review, 61(2), pp.453-454.
Stead, M. and Hastings, G., 2018. Advertising in the social marketing mix: getting the
balance right. In Social Marketing (pp. 29-43). Psychology Press.
Todorova, G., 2015. Marketing communication mix. Trakia Journal of sciences, 13(1),
pp.368-374.
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