Cadbury Marketing Plan: Strategies, Tactics, and Competition

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This report provides a detailed analysis of Cadbury's marketing plan. It begins with an introduction to marketing principles and then focuses on Cadbury, a UK-based multinational corporation in the confectionery sector. The report includes an activity comparing Cadbury's marketing mix (product, price, place, promotion, physical evidence, people, and process) with that of its competitor, Nestle. It further explores the tactics Cadbury applies to achieve its organizational goals, including market segmentation. The report concludes with a basic marketing plan for Cadbury, incorporating an overview of the organization, a SWOT and PESTEL analysis, and strategies for introducing new sugar-free chocolate products targeting health-conscious consumers. The report also provides insights into Cadbury's strengths, weaknesses, opportunities, and threats within the competitive landscape.
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Marketing Essentials
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Table of Contents
Introduction .....................................................................................................................................3
Activity 2.........................................................................................................................................3
Application of marketing mix to achieve business objectives along with comparison with
competition..................................................................................................................................3
Tactics applied by Burberry to achieve organisational goals and objectives..............................7
Basic marketing plan for Cadbury..............................................................................................7
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................14
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Introduction
Marketing is a set of methods which are used by organisations so as to grabbing attention
of large number of customers towards the offerings of firm so that sales and productivity would
be enhanced. This activity is also very necessary for the firm because it influences the buying
behaviour of customers so that they can easily purchase the product. Chosen firm for this project
is Cadbury which is a UK based Multinational corporation that provides its duties in
confectionery sector. Present report will discuss about the coherent marketing plan along with
comparison of marketing mix of two companies of a similar sector.
Activity 2
Application of marketing mix to achieve business objectives along with comparison with
competition
Marketing mix can be defined as a set of tools or methods which are used by organisations
for promoting their brands or products in market. It mainly depends on seven elements that are
product, price, place, promotion, physical evidence etc. This technique is used by company for
updating the company about existing offerings or policies so that relevant changes can be made
for competing the rivals in market (Baines, 2013). Nestle is a Swiss multinational company
which deals in a same sector of Cadbury and providing tough competition to each other.
Comparison of both companies on the basis of Marketing mix is given as below:
Factors Cadbury Nestle
Product Cadbury is a renown firm and
have build its strong presence
across the world. Company
offers various confectionery
products like dairy milk,
Dinky deckers, Bitsa wispa,
freddo etc.
Nestle is a multinational
corporation and also known as
world's largest food company
on the basis of revenue.
Offering of firm includes Baby
food, coffee, dairy products,
ice creams etc. As company
operates its functions at large
level then they also make
modifications in existing
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products on regular basis so
that brand image can be
maintained in market.
Price Price is also an essential
element of marketing mix that
supports the managers of firm
in capturing huge market share
and customer base. Company
believes in low pricing method
and delivers products at low
prices as compared to others
due to which they have build
good brand image in the
mindset of customers. For e.g.
Price of a dairy milk chocolate
100g is £2.00
Whereas, Nestle provides
quality products at premium
rates. Prices of all
confectionery products as
compare to Cadbury is high.
For e.g. company charges on
shreddies 80g of around 2.5
pounds.
Place Cadbury operates its functions
in around 60 nations around
the world and their products
are easily available at
supermarkets and local shops
due to which they have
maintained good image in
marketplace. Apart from that,
company have also started to
selling its products through
online platforms so that large
market area should be covered
in a less time-frame.
Where, Nestle has made its
presence in 189 nations
therefore market size of firm is
larger than Cadbury. In
addition, company also offers
products at online platforms
due to which market share of
firm is also high than Cadbury.
Company have also opened its
outlets in metropolitans cities
in most of the nations so that
customers can easily find their
offerings.
Promotion In order to promoting Company always stay classic
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offerings, Cadbury is using
various methods or techniques.
Promotion and advertisements
of company are mainly done
through various platforms like
T.V Advertisements,
Newspapers, Online platforms,
radio etc. Some effective tag
lines Like “Kuch Meetha Ho
Jaye”, “You Earn It”, Shubh
Aarambh etc. are also used by
company in order to promoting
offerings as per the needs of
customers or according to the
nation.
and innovative in their
marketing ideas when they
have to promote the product in
market. Nestle uses its own
tune at the end of their each
advertisement that has
supports the company in
making good customer base
through out the world. Strong
presence of Maggi and
Nescafe have also provide too
much assistance to the
managers in making good
customer base. Nestle also
uses various promotional tools
like TV, Hordings, Online
advertisements etc. for
promoting the products.
Company is also active on
social media platform which is
used for promoting offerings.
Physical evidence For making better physical
evidence Cadbury have
adopted little pinkish and
violet colour. Through the
colour and logo of product,
customers can easily identify
the offerings of Cadbury.
Company also uses different
packaging in festive seasons so
that large number of customers
While, Nestle is also using
unique combination of colours
in packaging of products.
Nestle also uses unique logo of
unbalanced heart shape in their
offerings so that customers can
easily identify the offerings of
firm. Outlets of Nestle are
fully air conditioned so that
customers feels fresh at the
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get attracted towards offerings
(Dibb, 2013).
time of entrance in outlets.
Management also believes in
creating healthy working
environment so as to removing
harmful diseases or infections
from the workplace.
People Company have employed
around 70000 employees who
are working in their stores.
They are also efficient and
posses effective skills and
knowledge due to which they
are serving the needs of
customers in best manner.
Management of Cadbury also
Provide training to their
employees on regular basis so
that brand image of firm would
be maintained in front of
customers. Employees of
Cadbury have also effective
communication skills through
which they assists the
customers in deciding best
product as per their needs and
wants.
Whereas, there are around
30000 employees are working
in Nestle who are providing
their better contributions for
achievement of desired goals
of firm. Employees of nestle
are highly equipped with
leadership and management
skills due to which they have
ability to handle critical
situations in easy manner.
Management of Nestle also
provide training to them on a
specific interval so that they
can improve their personal as
well as professional
development.
Process Company is using effective
production process which
manufactures quality based
products for customers.
As Nestle is operating its
functions at large level then
company follows FMCG
channel for distributing of
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Distribution and supply chain
system of Cadbury is very
strong that maintains brand
image of company in front of
its customers. Cadbury also
uses lean management and
inventory management system
for managing or monitoring
the production process or
stocks so that products would
be delivered on time to the
customers.
offerings. Products or services
of Nestle are directly supplied
to the retailers or wholesalers
by warehouses of firm
(Pappas, 2017). Company also
offers discount to distributors
who purchase products in
bulk. Company also uses
inventory management for
managing or handling stocks
in warehouses so that products
can be provided as per the
demand of customers.
Tactics applied by Burberry to achieve organisational goals and objectives
Cadbury is operating its business operations at global level and having a strong presence in
market thus they have adopted various tactics for achieving desired goals or objectives. Such
tactics involves segmentation of market so that needs and wants of loyal customers would be
satisfied in easy manner. Process of Market segmentation of Cadbury is given as below:
Identifying the targetted customers who prefers to buy products of company for e.g.
youths who mainly prefers to buy chocolate or confectionery products.
Evaluating needs and wants of targetted customers.
Positioning strategies of firm are developed or implemented.
Evaluating the segmentation process then take feedbacks from customers for the
segmentation (Van der Wagen, 2015).
Basic marketing plan for Cadbury
Marketing plan can be defined as a document in which list of actions are included that
should be performed by company in future. In addition, it is a blue print which guides the
managers of firm for executing the functions so that desired objectives can be achieved in a
specific time-frame. Marketing plan of Cadbury is given as follows:
Overview of organisation
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Cadbury is a Multinational corporation which is engaged in food and beverage sector and
provide its services across the world. Organisation was established in 1824 at England by John
Cadbury. There are approx. 70000 employees who are providing their services across 50 nations
in the world. Management of Cadbury is planning for introducing New sugar free chocolates
which will be manufactured through organic raw Cocoa. Main reason behind introducing of this
kind of product is to satisfying the needs of health conscious customers. This idea was
developed due to increasing trend of eat healthy and sugar free products. Most of the customers
are using chocolates for lowering their blood pressure, cholesterol and risk of heart disease.
Targetted customers for the products are middle and higher class individuals because their
income allows them to buy products of firm without worrying about financial situations.
SWOT and PESTEL of the business:
Strength Weakness
Cadbury is operating its functions across
the world from a long period of time.
Firm has also maintained strong
distribution system which consists of
whole-seller, retailer etc. company have
also a huge product portfolio that consists
of chocolate, shakes, confectionery
products etc.
Company has a good presence in more
than 50 nations due to which they have
build a good customer base across the
world.
The main competitors of Cadbury are
Nestle, Mars, Hersheys which can
harm the sales figures of firm at the
time of launching new product in
market.
Company has captured a lower
market share than its competitors due
to which revenue figures are also low
as compared to their rivals.
Opportunities Threats
Cadbury is merging with several other
organisations for improving demand of
their products as well as to enhance the
market share through expanding business
operations.
Milky bar and Bar-one of Nestle are
healthy chocolate products which can
become threat for New sugar free
chocolate of Cadbury.
Low cost offerings of rivals can
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Company is mainly focuses on marketing
and advertising in order to gaining more
profit or success as the customers are
attracting towards sugar free chocolates.
become threat for the sales figures of
new sugar free chocolate product.
PESTLE of Burberry
Political factor: Cadbury is operating its functions in various nations whose rules and
regulations of government are also different. That can provide difficulty towards the firm to
understand rules and regulations and can influence the profitability or productivity. As Cadbury
is introducing new sugar free chocolates in UK due to which government may provide favour
their production through giving some relaxation in tax rates (Kassambara,2018).
Economical factor: It includes fluctuations in the growth of economy that directly makes
huge impact on purchasing power of customers. Economy of UK is continuously growing that
can provide profitable results to Cadbury at the time of launching new product.
Social factor: It includes social and cultural elements that impacts directly on the taste
and buying behaviour of customers. In UK, citizens are more health conscious and prefers to buy
healthy and hygiene product which can brings profitable outcomes for Cadbury in launching of
new sugar free chocolate.
Technological factor: The huge sustainability for new product launched by Cadbury can
be achieved only if managers have appropriate knowledge regarding usage of advanced
technology for promoting products into market. For e.g., use of digital platform like TV
advertisements, Social Media can make positive attraction of new product in the mindset of
customers.
Marketing objectives
At the time of launching new product in market, firm has to develop some objectives that
can be accomplished through using of new products. Company have decided to form SMART
objectives for launching new sugar free chocolates which are given as below:
Specific: Specific objective of Cadbury behind launching new sugar free chocolate is to
increasing customer base so that good sustainability can be achieved in competitive market.
Measurable: Management has expected around 10% increment in present customer base.
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Achievable: Objectives can be achieved through providing training or development
programmes to employees because when better skills or efficiency will be implemented in
employees. Then chances of getting better contributions from them are higher which leads the
firm towards growth and success.
Relevancy: This product will assist the organisation in gaining strong market position
among their rivals of same sector (Wilson, 2018).
Time Bound: Managers of Cadbury have estimated a time period for 6 months of
achieving all the objectives.
Segmentation, Targetting and Positioning
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Segmentation: It is the process of segmenting the market as per the taste and preferences
of customers. For e.g., segmentation of customers on the basis of gender and consumption can
provide favourable outcomes to the management. As Cadbury is launching new sugar free
chocolate in UK then they can use demographic segmentation through which they will easily
targetted their customers on the basis of age, religion, gender, income etc. Through this
segmentation, Company will be able in providing their products to their targetted customers
effectively and achieve huge sustainability in market.
Targeting: In it, managers of firm have to select a particular group of customer from
whole marketplace. Cadbury is introducing new sugar free chocolate in market then the targetted
customers of firm are health conscious and diabetic people.
Positioning: It is the last step of STP Process in which Managers of Cadbury have to
build good brand image among the customers. For it, company is launching their new sugar free
chocolates so that product range or market position of firm can be improved. It is also essential
to use appropriate platform in order to promoting products and provide valid and reliable
information to the customers so that customers shows more attention towards purchasing of
product (Page, 2014).
Marketing mix
Marketing mix is a technique which is used by firms in order to evaluating market situations for
introducing new products. Marketing mix for new sugar free chocolates of Cadbury are given as
below:
Product - New sugar free chocolates are manufactured by company for positively
affecting the customers in terms of health. These sugar free chocolates helps the
customers in reducing their high blood pressure, cholesterol and risk of heart problems.
Price - Price skimming strategy is decided by management of Cadbury for launching new
product. In it, product is introduced in market at lower prices then increment in prices
will be done as per the market share. Also chocolate is affordable for middle and upper
class individuals.
Place - New sugar free chocolate will be provided at those places where demand of this
product are high and provided to the customers who are living in various parts of UK like
Briston, Manchester, Bristol etc.
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Promotion- Management of firm have decided that they will use social media platforms
or offline advertisements for promoting new sugar free chocolates because these methods
are less expensive and covers large area of market in a small time period.
Process- Cadbury should use updated machinery in production of new sugar free
chocolates. Apart from that, company should also process raw cocoa from updated
equipments for ensuring the quality. Distribution chain of Company is also strong due to
which they can easily deliver the product in market on time.
Physical evidence- For making physical evidence of new sugar free chocolate
management of Cadbury have decided to adopt bluish and pinkish colour in its packaging
so as to making its attractiveness across the nation. People - Employees who are engaged in production of new sugar free chocolate should
be highly skilled or talented so that machinery for producing product can be used in
effective manner (Williams, 2013).
Implementation plan for the promotional launch
There are numerous promotional functions are available which can be used by Cadbury for
attracting the targetted customers. These functions consists social media channels, TV
advertisements, Celebrity endorsement, campaigns etc. that are less expensive in nature and
covers more area. Management of Cadbury have decided an amount of 120000 pound for
introducing new sugar free chocolate in UK and for it they have also formulated Budget for
carrying out several activities in effective manner. Budget is given below:
Particulars Amount (£)
Advertising on TV 12000
In social Media Platforms 40000
On newspapers 18000
Sales Promotion 50000
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