Cadbury's Marketing Strategies: A Comprehensive Analysis

Desklib offers solved assignments and past papers to help students succeed.

Activity 2
MARKETING ESSENTIALS OF
CADBURY

INTRODUCTION
The report will describe how Cadbury
Company will use marketing mix i.e. 7Ps
to attain business objectives.
The section will also identify how
Cadbury with Hershey’s is differentiated
with the 7Ps with evaluation of various
strategies.

ORGANISATIONS APPLY MARKETING MIX TO
MARKETING PLANNING PROCESS
Cadbury is the brand with high
goodwill and fame and has
adopted new policies to combat
various issues.
Cadbury also organizes few
promotional events in shopping
malls, colleges and other places.
 In case of Hersey’s, it spends
more on events to find better
sponsors.

STRATEGIES APPLIED BY ORGANISATIONS
TO IDENTIFY THE BUSINESS OBJECTIVES
•Product:
•Cadbury is dealing with the production of various brands like Dairy Milk, 5 Star, Perk,
Gems, Éclairs and many others. It is presently operating in 5 varieties- Chocolate
confectionery, Beverages, Biscuits, Gum and Candy (BBC News, 2016)
•Hershey’s deal with various brands like Kisses, Reese’s Kit Kat, jolly Rancher and
Bubble Yum. It is operating in many categories like chocolate candy, mint, gum, nuts
and caramel.
•Price:
•The cost of the products existing in Cadbury is of superior quality and the owners have
followed convenient pricing system for the product.
• Hershey’s does not comprise with the quality of the products, so its products are
expensive in nature (Armstrong et al., 2015).
•Place:
• Cadbury has around 250 branches in both urbanized and rising countries of the world.
•Hershey’s is widely available in stores like departmental stores, malls and shopping
malls. Consumers can also purchase them online from Amazon or Big Basket

STRATEGIES APPLIED BY ORGANISATIONS TO
IDENTIFY THE BUSINESS OBJECTIVES CONTD..
•Promotion:
• Cadbury displays advertisements on newspapers, uses posters and hoardings, media or present
small commercials that is liked by the people of all ages.
•Hershey’s provides chocolate recipes, and attracts people by telling them about the secrets of their
chocolate making recipes (Goldring, 2015).
•People:
• Cadbury Company depends on its own skilled workers who are qualified enough and are
excellent executives.
•Without having any prior experience in the same field, it is almost impossible for anyone to join
into the Hershey’s company (Amyx et al., 2016).
•Process:
• In Cadbury factory both dark and milk chocolate goes through the processes of refinement,
tempering and conching.
•Hershey’s follow the eco-safe process of manufacture.
•Physical Evidence:
• Cadbury have their own industrialized units and allocation channels by which their products are
distributed by its employees worldwide.
•Hershey’s distribute their products to various shops and units who in turn sell them to the
consumers.

STRATEGIC MARKETING
PLAN FOR CADBURY OREO
•Cadbury Company has headquarters in West London and it
operates in more than 55 countries worldwide.
•It has around 300000 employees with a net worth of $3.45
billion (BBC News, 2016)

7PS OF CADBURY OREO
 Product: The Company has integrated with Oreo to provide tasty and delicious products. It
provides Oreo Bar, Big Taste Oreo Crunch Bar of 300gms, Mini Oreo Eggs, 110gm pack of
Oreo bites, 92gm of Oreo Sandwich and even Oreo chocolate crème biscuits of 120gm.
(Chockalingam and Isreal, 2016).
 Price: Making partnership with Oreo, it is keeping a mid-premium pricing strategy to target
the consumers of all ages.
 Place: The Company has its product present in more than 100 countries its starting point being
West London. It has expanded its market to China, Japan, Australia, Canada, UK and others.
 Promotion: The Company has launched antagonistic marketing strategies, which includes in
and out store activities and digital media.
 People: The Company has made partnership with another famous brand like Oreo. Both of
them have goodwill in the market (Kozlenkova et al., 2015). This partnership is helping the
company to attract more customers as they have a feeling of trust and confidence about both of
them.
 Process: The Company follows a process that is very different from its competitors and
customer loyalty has developed by means of the excellent products provided by the company.
 Physical Evidence: Alongside their retail outlets, the organisation has their substantial outlets
in the many countries of the world .

CURRENT MARKETING SITUATIONAL
ANALYSIS
Strengths Weaknesses
 High brand worth
 Tough bonding with the company
 Extensive distribution
 Strengthened communication
 Expensive raw materials
 Internal competition
 High advertising costs
Opportunities Threats
 Rising demand for biscuits
 Potential in developing countries
(Kamugisha, 2017)
 Strong competition
 Rising health consciousness

OBJECTIVES
To enhance the sales of the product by
20% by the ending of the quarter of
2019, in order to achieve successful
sales platform globally.
To increase the target audience of
Cadbury Oreo product by improving the
taste and the quality
To increase the market share of the
product by 20% in 2019, so that
distribution network can be developed
with higher profitability of the company.

MARKETING STRATEGY
 The company uses wholesale strategy to sell its products
among the consumers. They use social media as a
platform for the promotion of their products.
 The Push and Pull selling strategy attracts all the classes
of the society. They always aim to adopt cost leadership
strategy to generate revenues of huge amounts
(Kozlenkova et al., 2015)
 Frequent launching and re-launching of old products
with little modifications, design and packaging is the
best strategy adopted by the company to attract its
customers

SEGMENTATION AND TARGET
MARKET SELECTION
 The company targets the local as well international customers as their
Geographic
 The demographic segmentation states that the target market of the
company is the people from age grouping 10-45.
 From the aspect of behavioural segment, the ones consuming it first time
as well the hardcore consumers are targeted.
 The people of all classes be it lower middle or higher are targeted
based on the psychographic segmentation.
 The target market of the company is the individuals from local as well as
international places of the world. The market is designed to target the set
of consumers who can meet the expense of the products and prefer them.

TACTICS AND ACTIONS
 The company can unite with its consumers on public
medium platform and turn out to be the first name in
search engines, which will help to enlarge brand
consciousness about the product (Khan, 2015).
 It will use purely fresh ingredients in producing
Cadbury Oreo Chocolates so that the buyers are
conscious and benefitted on such consumption.
 The company should entrust the social media executives
and the production executives with the job to look after
the development and spread awareness of the product to
its consumers.