Cadbury's Marketing Strategy Revamp: An Analysis - Suffolk BABS

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This report provides an analysis of Cadbury's marketing strategy, prompted by the CEO's dissatisfaction with the chocolate product line's performance. It employs tools like SWOT and PESTLE to assess both the internal and external environments impacting Cadbury's operations. The analysis identifies opportunities and threats, examines Cadbury's marketing mix, and offers recommendations for improvement, including ways to enhance branding. The report considers political, economic, social, technological, legal, and environmental factors, and addresses issues such as competition, health awareness, and supply chain challenges. Ultimately, it aims to provide a revamped marketing strategy to enhance the performance of Cadbury's chocolate product line.
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Marketing management
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Executive summary
The provided report is an analysis which explored the element of marketing strategy of
Cadbury through several tools . As per the provided report CEO of Cadbury was not happy with
the performance of chocolate product line. Hence, with the help of analysis of internal and
external environment of mentioned company highlighted its operations functions. dedicated
efforts were made in respect to revamp the strategy and several recommendation were also
provided in respect to enhance the performance of given product line.
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Table of Contents
Executive summary .........................................................................................................................2
Introduction......................................................................................................................................4
Main Body.......................................................................................................................................4
Environment analysis tool to identify opportunity and threats for Cadbury .........................5
Marketing mix of Cadbury.....................................................................................................9
Recommendation of how to improve marketing mix...........................................................10
Various ways to enhance branding of Cadbury....................................................................11
Conclusion.....................................................................................................................................12
References .....................................................................................................................................13
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Introduction
Marketing is the main process that used by the companies to promote their product and
services in market. Through the effective marketing strategy marketers creates demands of
products in between the customers that succours into enhance the productivity of company. The
role of marketing managers is to enhance the performance of company by focusing on such
process. The main motive of marketing managers is to deliver the right message of company
operation to its targeting audiences. In this given report Cadbury is being taken into
considerations (Aina, 2019).
Cadbury is a multinational confectionery company that deals in several product.
According to the provided report revamping of marketing strategy for its chocolate lines will be
evaluated in this assessment. Further, several tools will be used to explore the complexity of
competitive environment of given company and their impact on marketing strategy will be
developed in relation to eliminate such issue. At last, some upgraded marketing strategy will be
provided in refer to its chocolates (Akinyemi, Alarape, and Adejumo, 2018).
Main Body
Cadbury is the worlds largest confectionery company that operates worldwide. It was
founded in 1824 in Birmingham, Warwickshire, England. The Company was named after the last
name of its founder John Cadbury. Company headquarters are situated in London, England and
Uxbridge. It is a leading brand in chocolate manufacturing industry. They have wide variety of
chocolates such as dairy milk, five stars, Oreo as well as bournville that has the large market
share of customers. The mentioned company have large number of loyal customer base that
shows their products reliability in market. Their profits are increasing year by year so on their
market value. Cadbury's star product is considered as Dairy Milk chocolate which enhanced the
brand image and value of the company and acknowledged its top competitive position in the
market. The first Royal Warrant for the company was granted by Queen Victoria in the year
1854. The company is aimed at achieving maximum customer base and acquiring highest profits
possible. The major competitors for the company in the market are Hershey, Nestle, Mars, etc
(Aziz, 2021).
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Environment analysis tool to identify opportunity and threats for Cadbury
SWOT ANALYSIS
The mangers of given firm uses such above mentioned tool through which company
identifies internal and external factors that can impact their operations. By such analysis succours
the company into improvise their marketing strategies to enhance the operations (El-Bassiouny,
and Letmathe, 2018).
Strength Strong brand name and products- The
mentioned company has a strong brand
name in the market that succours the
company into performing their
functions more deliberately and
smoothly. Due to such strong brand
image ease the operations of marketing
team into attracts the customers over
their large variety of products. Cadbury
has the large variety of products
according to the region demand as well
as they launched customized chocolates
on every festive seasons which
ultimately shows the strength of its
marketing strategy to acquire the
potential customers (Ghazali, et. al.,
2019).
Large market share- Due to its global
presence and market value company
has acquired the large number of
customers over its operations. Its
product quality and unique taste formed
the loyal customer base. Past data has
shown the great hiked of sales in
Weakness
Imitable products- Company
manufactured product such as milk
drinks and chocolates that can be easily
intimate by other competitors in the
market. Due to this others brands can
manipulate the market through
delivering the same products at lower
price range. In light to the fact company
has numbers of loyal customers in the
market but it doesn't gives the future
assurance of reliability.
Dependent on retailers- The mentioned
Company supply chain management
completely depends upon the number
of retailers worldwide. Cadbury does
not have direct form of relationship
with its customers. Due to such
dependency over retailers can influence
or effect the company customer base.
Therefore, it highlights the major
weakness of company marketing
strategy to rely on local retailers.
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Cadbury products. Therefore, company
large market share shows the
credibility of marketing team in
attracting the customers.
Opportunity Rural market- Cadbury majorly offer
its services in metropolitan cities.
Hence if company focus on the remote
and rural areas can succours into
enhance their customer reach and can
also provide the first mover advantage
to them. Therefore, by making the
effective marketing strategy can help
out the mentioned company can arise
the new opportunity for company
chocolates. Diversification of healthy products-
The customer taste are rapidly
changing. According to several surveys
has stated that customers are turning
towards new and healthy products. In
regard to this Cadbury have the
opportunity to manufacture such
chocolates that are full on nutritional
value as well as benefits the health of
customers. The company has the well
established name in the market as well
as they have the large reach of
customers too. Which can easily give
the advantage in creating the new
customer base it hey launches new
Threats
Strong competition- The major threat
that company facing in the market is
due to several other big competitors
i.e., Nestle, Mars, Harshey's and
ferrero. These companies are well
established as well as diverse range of
chocolate product in the market that
could be effect the mentioned company
market stake. Their products can be
manipulate the dedicated customers of
Cadbury by their unique tastes
(Insch,and Black, 2018).
Health awareness- Peoples nowadays
are more concerning regard to their
healths. The major populations are
shifting towards the healthy lifestyles
and reducing the consumption of such
sugary products. The mentioned
company products majorly contains
sugars and saturated fats that are not
good for healths. Therefore, due to
switching of customers towards healthy
products can create the threat of
Cadbury in decline of sales.
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healthy products.
PESTLE Analysis of Cadbury
The above mentioned analysis is perform by the managers of company to identifies
external forces that can impacts the company operations. The PESTLE analysis basically
includes political, economic, social, technical, legal, environment. These factors plays a major
role that conclude by the marketers before forming their operational strategies (Onikoyi, and et.
al., 2021).
Political factor
The political factor plays major role in every company operations any policies and reform
taken by the political party can impact the businesses of company. Moreover the instability of
such parties also arise the conflicts in performing the functions in market.
Political issues in between UK and EU- The UK government recently applied the BREXIT in
its economy which exit the Britain with EU in regard to common trade policy. Hence because of
such policy has raised the several problems regard to the trade reforms with EU. The supply
chain management has drastically affected due to increase in the tariff charges with EU.
Company faced the issue in lack of skilled workers which impacted due to above policy. Hence
these Policies overall increases the costing operations of Cadbury because of revamping of
supply chain route as well as extra high tariff charges that applied by EU (Schenkelberg, 2020).
Economic factor Changes in political reforms affect the economic factor- The economic factors are the
ones which completely depend upon the political policies. Since, Cadbury operates its
business worldwide in many economies. Hence any changes in policies of particular
economy can impact their business operations. In COVID the whole economy of UK was
in lock down which affects the daily lifestyles of peoples. Peoples of UK faced the
financial crises due to which they decreased their expenditure on unnecessary things.
This impacted the flow of income in UK economy that ultimately lowered the mentioned
company sales (Sondhi, and Chawla, 2021).
Social factor-
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customers shifting towards healthy lifestyle- The worlds slowly adopting the healthy
lifestyle. Peoples are shifting towards the healthy foods and following well balanced diet.
Due to such scenario company started the range of healthy chocolates which includes
healthy properties in their chocolates such as sugar free chocolates, fruit and nuts bars
and healthy bars. The company is planning to manufacture such more healthy bars by
including nutritional ingredients in its products. They are aiming to attracts such health
conscious customers towards their operations through which they can enhance their
productivity as well as market share (Thach, Unni, and Abdelmoety, 2018).
Technological factor Improved technologies- The mentioned company continuously embedded new
technologies in their operations that succoured them into create quality products. The
technology played a major role in company effective functions. In light to the fact
Cadbury has a large of customers base. Hence with the help of technology they fulfilled
the requirement on time. Social media for marketing- Cadbury uses the platform such as Facebook, Instagram as
well as you tube to advertise their products to target their audiences. Through such these
channels company were able to form effective relationships to its customers as well as
help them into increase the awareness of their products.
Legal changes in legal laws and taxes slabs in regions- Cadbury operates its businesses in
several region with their large variety of products. The main issue that company faced is
due to patent and copyright policies differentiation in every region. These types of issues
work as an hurdles for mentioned company to perform its functions smoothly in the
market. In addition to this various taxes that implied by government also impact the
company operations. Favourable condition can enhance the revenue and smooth
functions and vice-versa (Tieman, 2019).
Environment sustainable approach- UN enforced the several laws and regulations to companies
around the globe in regard to reduce the toxic emulsion in their operations. Cadbury have
an opportunity to take this law into favour its operations. By implementations of effective
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approach can reduce the threat of lawsuits for company as well as can influence
environment conscious customers.
Marketing mix of Cadbury
Marketing mix is foundation model to a business enterprise for which a market of a
business firm is being guided to produce better initiatives in respect to pull effective marketing
strategies of the corporate firm. The said model develops better standards of organisational firm
for which productive approaches can be undertaken in the given firm in respect to develop better
standards of working and enables with decent brand image in company's operational markets. In
relation to chosen company i.e., Cadbury, marketers of the business firm takes consideration of
this model to effectively promote products and services being derived from operational working
of the business firm. Reflecting to given scenario, as CEO of the given firm is not happy with the
marketing strategy of the firm, therefore, dedicated efforts will be made in respect to revamp the
strategy. Following are various element which will be taken into consideration for marketing mix
strategy of Cadbury (Uzma, 2018);
Product- The product is an item for which an individual consumer is willing to pay
money and provides them with certain level of satisfaction after their consumption. In
context of the chosen company, particular product line i.e., chocolate will be taken into
consideration. For the purpose being dedicated efforts will be made in respect to produce
the respective product with ensuring proper quality measures and using cost effective
techniques. Furthermore, enhanced decisions are being taken in regards to ensure
development of respective product as per market demands of customers and referring to
standards of quality control measures. There would be dedicated efforts made in respect
to which proper initiatives will be taken acquiring prospective of better approach towards
product line development by facilitating sustainable development approaches.
Price- Cadbury uses different pricing strategies according to its products category and
target audience. The company has produced various chocolates for different sections of
society be it the richer and class section or the middle and lower class section of society.
The company is best known for its higher quality and expensive chocolates in which the
company uses the premium pricing strategies. This premium pricing strategy is referred
by expensive price with premium quality offered. Different sizes of chocolates are
offered to the market so that middle class section of society could afford quality with low
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price. The premium chocolate line of Cadbury which includes Dairy Milk Silk,
Bournville, and Temptaion are the most expensive products by the company with Price
skimming Pricing strategy (Rogerson, 2020).
Place- Place is referred by distribution in terms of marketing-mix. Cadbury regulates a
vast distribution system to supply its chocolates to the local retail shops in the consumer
market. These retail shops involves general stores, confectioneries, bakery, small corner
shops, etc. Chocolates by Cadbury are easily available in nearby stores and also large
stores in the market. This strategy allows company to capture a huge customer base and
fulfilling consumer demands. Cadbury has also introduced their products with online
delivery services over many Food delivery platforms. Appropriate and efficient decision
making of distribution of chocolates will result in enhancing customer's reach to their
products and increasing sales for the company's products in the market (Chaney, 2021).
Promotion- Cadbury uses different sources of promotion such as Advertising on
Television, Social media, Print media, Sponsorships, etc. Target audience for Cadbury is
children in society with maximum cravings for eating chocolates. Cadbury's promotion
activities are heavily funded by the company to advertise their products to the general
public. The company uses different slogans such as Pure happiness pure cadburyness,
Tastes Like This Feels, Shubh Arambh, and many more in particular region considering
the cultural and social differences. Cadbury is aimed at acquiring more and more
customer by expressing them how chocolates can bring happiness to life (Stobbs, Weller,
and Zhou, 2018).
Recommendation of how to improve marketing mix.
There are several recommendation that can help Cadbury in influence its marketing
strategies to perform better in market. Improvements in supply chain management- The supply chain management plays a
major role in every company operations. By the effective approaches in supply chain
management can help the company into enhance its functions. Therefore the company
have to initiate time to time to increases its supply chain potential. With the use of several
techniques such as AI, blockchain and other favourble technology can enhance the
company distribution channel as well as can reduce the time in performing such
functions.
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Improvise product line- In the above document it is clearly stated that consumers tastes
and preferences are changing rapidly as well as they are shifting towards the healthy
foods. Therefore by developing the more unique tastes products as well as healthy items
can succours the company to enhance its customer base.
Favourable price range according to regions- since the mentioned company perform its
functions in various region. Therefore the same price strategy cannot be work in every
regions. Therefore by adopting the price according to the region market condition can
provide an extra edge for the company to capture more customers. For example company
can reduce the prices of its chocolates in rural areas through which they can influence
such customers more towards its functions.
Various ways to enhance branding of Cadbury
Branding is the main aspect that represents the company image in market. By effective
marketing strategy can enhance the company operations as well as can provide competitive
advantage. Through the favourable practice can succours the Cadbury into form new customer
base and hold their existing loyal customers with its brands. Below are some suggestion in which
company have the scope for improvisation in its marketing strategies. Adopt effective digital marketing technology- In today era modern marketing
completely take the place of traditional marketing approaches. Because it is cost
effective, time saving and most importantly gives impactful results. In instance, Cadbury
which is already indulged in the mentioned practice can enhance its marketing strategy
even further. They can adopt new technologies which will surely help them into deliver
their operations information in between larger audiences. Impactful advertisement marketing- Unique advertisement of products is the main key
that influence the customers towards using the products. In addition to this Cadbury have
to improvise their marketing strategy by developing campaigns that relates with peoples
emotions and can conclude current scenario that going on in economy.
Develop effective CSR practices- The best way to create great brand image is by
adopting CSR approaches in company functions. Since peoples are now more concerning
about environment and encouraging brands that uses such approaches. Therefore, by
developing CSR approaches in company functions can impress environment conscious
audiences.
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Conclusion
From the analysis of above report it can be said that marketing plays a major role in
performing the effective operations of company. In above discussion Cadbury product line of
chocolates was taken into considerations. Through analysis of internal and external factors
helped into recreating the marketing strategy for company given product line. By the marketing
mix company operations were deeply analysed as well as several recommendations were given
into enhanced its functions.
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References
Books and Journals
Aina, N.A., 2019. The Effect of Exchange Rate to Altman-Z in Mondelez International
‘Cadbury’. Available at SSRN 3385205.
Akinyemi, F.O., Alarape, A.A. and Adejumo, O.O., 2018. Entrepreneurial personality factors
and business sectors in emerging economies: Nigeria and South Africa. IFE
PsychologIA: An International Journal, 26(2), pp.163-174.
Aziz, Q., 2021. Corporate governance mechanisms on the internal relations between managers
and subordinates. In Transforming Corporate Governance and Developing Models for
Board Effectiveness (pp. 202-212). IGI Global.
Chaney, P., 2021. Examining Political Parties’ Record on Refugees and Asylum Seekers in UK
Party Manifestos 1964–2019: The Rise of Territorial Approaches to Welfare?. Journal
of Immigrant & Refugee Studies, 19(4), pp.488-510.
El-Bassiouny, D. and Letmathe, P., 2018. The adoption of CSR practices in Egypt: internal
efficiency or external legitimation?. Sustainability Accounting, Management and Policy
Journal.
Ghazali, E.M., Mutum, D.S., Radzi, M.M. and Woon, W.P., 2019. Cadbury and the Porcine
DNA Crisis. In Management of Shari’ah Compliant Businesses (pp. 163-169). Springer,
Cham.
Insch, A. and Black, T., 2018. Does corporate social responsibility cushion unethical brand
behavior? Insights from chocolate confectionery. Journal of Public Affairs, 18(3),
p.e1853.
Onikoyi, I.A., Ajayi, E., Aje, C.O., Raheem, A.J. and Akintayo, A.A., 2021. Strategic
Management and Organisational Performance in Cadbury Nigeria PLC. International
Journal of Business and Management Review, 9(2), pp.1-21.
Rogerson, S., 2020. The digital divide is a multi-dimensional complex. Journal of Information,
Communication and Ethics in Society.
Schenkelberg, S., 2020. The Cadbury Schweppes judgment and its implications on profit shifting
activities within Europe. International Tax and Public Finance, 27(1), pp.1-31.
Sondhi, N. and Chawla, D., 2021. Positioning implications for chocolate brands: An attribute-
based approach. Global Business Review, 22(1), pp.184-196.
Stobbs, J., Weller, G. and Zhou, Y., 2018. Overview of 2017 UK Trade Mark and Designs
Decisions. IIC-International Review of Intellectual Property and Competition
Law, 49(3), pp.331-347.
Thach, S., Unni, R. and Abdelmoety, Z., 2018, May. Local Brands and Global Brands:
Competition in Emerging Markets. In XVII International Business and Economy
Conference (IBEC San Fransisco 2018).
Tieman, M., 2019. Measuring corporate halal reputation: A corporate halal reputation index and
research propositions. Journal of Islamic Marketing.
Uzma, S.H., 2018. Corporate governance practices: global convergence and Indian
perspective. Qualitative Research in Financial Markets.
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