PGBM15 - Cadbury: A Critical Evaluation of Marketing Management

This report provides a critical evaluation of Cadbury's marketing management, examining the contribution of current marketing management theory and practice to the company's success. It analyzes Cadbury's marketing management strategies, including its selling concept, relationship marketing, holistic marketing approach, and internal marketing philosophy. The report also explores the various marketing environment factors, such as political, economic, social, and technological influences, that impact Cadbury's performance. Furthermore, it offers recommendations for increasing Cadbury's profitability, market share, and sustainability, including focusing on marketing and promotion in emerging markets, demographic and behavioral segmentation, mass targeting, positioning strategies, product diversification, investment in research and development, and CSR programs. This document is available on Desklib, a platform offering a wide range of study resources, including past papers and solved assignments.

Running head: MARKETING MANAGEMENT 0
Critical Evaluation of the Contribution of Current Marketing Management Theory and Practice

MARKETING MANAGEMENT 1
Part 1
Marketing management is referred as a procedure for strategically planning and overseeing
new product development, promotions, marketing, and sales. This report will focus on
analysing the marketing management of ‘Cadbury’ and conduct research on marketing
environment of the firm for improving its profitability (Sahoo and Garg, 2012). The
marketing management philosophies direct marketing operations in an organisation; Cadbury
use effective marketing management strategies to deliver high-quality products to its
customers. The corporation has adopted a Holistic marketing approach which assists them in
delivering value to its customer. Holistic marketing focuses on designing, developing and
implementing effective marketing processes, programs and activities (Allen, 2010).
Following are major components of Cadbury marketing management strategy that assist the
delivering the value to its customers.
 The Selling concept of Cadbury provides a major competitive advantage to the
corporation; the firm offers its products in large supermarkets along with small shops
which assist them in targeting every segment of the customers. An extensive
distribution channel and create a competitive advantage over others.
 The firm uses Relationship marketing in order to deliver value to its customers. This
strategy primarily focuses on building an effective relationship with different
stakeholders of the enterprise including employees, suppliers (benefit driven relation),
society, and customers. Cadbury has become the market leader in chocolates and
confectionery industry in which their sales team plays a significant role (Thomson,
Crocker and Marketo, 2010).
 The company regularly conduct survey of customers’ requirements and choice which
provide them information that improves their production process. Collaboration
between research and development, sales, and production team assist Cadbury in
implementing Holistic marketing approach which increases their market share
worldwide.
 Cadbury implements Internal Marketing philosophy in which it considers its
employees as the first consumers of the firm. The corporation focuses on satisfying its
employees and aligning their goals with organisational objectives which creates
harmony, ownership, and coordination among workers. Following programs assist
Cadbury in delivering value:

MARKETING MANAGEMENT 2
o Workplace wellness programs
o Annual training for employees
o Equality between rights and opportunities for female employees
o Provide safe, diverse, healthy and inclusive workplace
 Cadbury has integrated Sustainability in its business strategy, and it implements
different Corporate Social Responsibility (CSR) programs for development of society
such as Cadbury Cocoa Partnership and Purple Goes Green.
Part 2
Following are various marketing environment factor which positively and negatively affects
its performance.
Political
Cadbury offers its products to a global audience across 40 countries; the political decisions
made by the governments in these nations influence the performance of the enterprise. In the
context of the United Kingdom, the change in policies from Labour party to Liberal
Democrat can influence company’s performance. The corporation has eight factories in the
UK, and it employs more than 3 thousand workers. However, the decision taken by the
Liberal Party to restrict the entry of skilled labour in the country can negatively affect
Cadbury’s performance. Another example is reduction in tax rate on confectionery products
can be beneficial for the organisation (Leissle, 2013).
Economic
Increase in interest rates due to unforeseen and unavoidable economic factors including
recession could result in reducing the opportunities for Cadbury. In recession, income gets
lower, and people spend less on expensive confectionary products. On the other hand, boom
phase results in increasing the opportunities for the enterprise, and it will increase the sale of
company’s products. Though the economic downturn negatively affected the global
expansion plans of Cadbury, its sales remained same in most of its major markets (Ngo,
Misra and Spence, 2011). The firm was able to generate 30 percent increase in its annual
profits which is a positive sign for the company.

MARKETING MANAGEMENT 3
Social
The social perception of people regarding the brand image of a company has a significant
impact on its functionality and profitability. Alternative equal brand with lower prices or
better taste can result in decreasing company’s sales. Increase in health consciousness is
another factor which negatively affects the organisation (Carroll, 2009). However, CSR
programs of the firm and positive brand image assist them in maintaining a steady position in
the market.
Technological
The traditional methods of Cadbury’s chocolate productions can hinder the profitability of the
enterprise due to the introduction of new machines and techniques that produce more
products with less time and resources. The company also have to hire new employees with
technical know-how and increase the technical skills of their current employees through
effective training programs (Minifie, 2012).
Part 3
Following recommendations can assist Cadbury in increasing profitability, market share, and
sustainability.
 Cadbury should focus on increasing its marketing and promotion globally by
advertising new and unique products in emerging markets. The corporation should
offer new products at lower prices to target new markets in emerging countries which
will result in increasing its market share.
 Cadbury should focus on demographic segmentation of its customers by offering new
products for low-income individuals, especially in markets such as China, Indonesia,
and India. However, the firm is known for its luxury high-quality chocolates which
should be offered by them in new markets as well. As per Behavioural segmentation,
the company should focus on occasion segmentation such as festive chocolates or
after dinner dessert (Levine, 2011).
 The Targeting strategy of the corporation should focus on mass targeting, and it
should target all the age and gender demographic since everyone eats chocolates.
 Positioning of the enterprise should focus on targeting youth and children since they
are the major part of company’s sales. They should position its products to be about

MARKETING MANAGEMENT 4
“moments” in which chocolates can be enjoyed by family, friends or loved one
(Wilde and Sutherland, 2010).
 The firms should shape its marketing offering by introducing non-chocolates products
to its customers in order to diversify its product line. It will result in diversifying
company’s customer’s bases which will result in increasing its market share.
 The firm should invest heavily in research and development of new low calories and
sugar-free chocolate for its health-conscious consumers which will result in building
the positive brand value of the firm. It will assist the corporation in building its brand
image as a healthy lifestyle choice which will result in increasing its sales.
 Kid segment is a huge market for the enterprise; therefore, it should focus on targeting
its marketing campaign to attract more children by introducing new products for kids.
The company can use cartoon characters to become the brand ambassador of the firm
which will result in increasing the number of children customers.
 The enterprise can enter into new joint ventures for targeting new emerging markets
without risking large capitals.
 Cadbury should continuously invest in new CSR programs and charities which result
in increasing its brand value along with global sales (Berlan, 2012).

MARKETING MANAGEMENT 5
References
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consumers. Thunderbird International Business Review, 52(1), pp.13-20.
Berlan, A., 2012. Good chocolate? An examination of ethical consumption in cocoa. Ethical
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Carroll, C., 2009. Defying a reputational crisis–Cadbury's salmonella scare: why are
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Leissle, K., 2013. Invisible West Africa: The Politics of Single Origin
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Levine, P., 2011. Chocolate, Women and Empire: A Social and Cultural History. Victorian
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Minifie, B., 2012. Chocolate, cocoa and confectionery: science and technology. Springer
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Wilde, P. and Sutherland, E., 2010. Venturing Overseas: Geography and the Cadbury
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