Cadbury's Innovation: Launching Dairy Milk Mystery Bar with Theories

This report examines Cadbury's strategy for launching its new product, the Dairy Milk Mystery Bar, through the lens of innovation theories, including Schumpeter's Innovation Theory and Roger's Innovation Diffusion Theory. It analyzes the market conditions, identifies strengths, weaknesses, opportunities, and threats, and proposes a marketing mix and differentiation strategy. The report includes a budget and discusses the use of KPIs and benchmarking for evaluation. Ultimately, the goal is to provide a comprehensive plan that supports Cadbury in achieving a competitive advantage and increased sales through this innovative product launch. The document is available on Desklib, a platform offering a range of study tools and solved assignments for students.

Proposal
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INTRODUCTION
Modernisation is an establishment’s procedure for announcing new ideas, services and
products in order to influence people and adopt changes. This involves improvement of existing
methods or practices that start from scratch. The environment is changing day by day, and it has
become important to introduce changes that could help to grow business and provide competitive
advantages. If there is lack of innovation and new products, then it could be challenging for
companies to regulate their business. The important task for organization is to analysis the
marketplace and bring innovative products that could help to attain higher performance. To
develop an understanding of innovation and idea generation to products Cadbury chosen, that is
British multinational confectionery company (Alqayed and et.al., 2021). This is second largest
confectionery brand in the World after Mars. This is internationally headquartered in
Buckinghamshire where it is operating their business in more than 50 countries. It is known for
its Dairy Milk chocolate, the Creme Egg and Roses selection box, and many other confectionery
products. The company is planning to introduce new product that is Dairy Milk Mystery Bar that
will be most likely by customers. Firm is focusing over innovative theory and concepts that are
used for managing the customers and attaining higher performance. The present report highlights
on theories on innovation and plan to launched that can help to develop the business
performance.
MAIN BODY
Theories of innovation and idea generation
Innovation is the new concept that is the creation of new idea and thoughts generated by
an individual for the purpose of introducing changes and managing work. This is the
involvement of creativity consider act of turning new and imaginative ideas into reality. The
management should have proper knowledge and skills in order to provide the better quality of
products and services. The main purpose of innovation is to build something new and attractive
that can help to attain higher performance (Kasirye, Radwan and Kreya, 2020). Cadbury is the
larger organization of UK whose management analysis the markets and introduces kind of
products that can help to influence number of customers and supports to increase productivity.
The company is using theories of innovation and idea generation defined below:
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Schumpeter’s Innovation Theory
According to Schumpeter, modernization denotes to any dogma that a separate
undertakes to reduce the complete cost of production then increate the demand of their products.
This theory of innovation given by y Joseph. A. Schumpeter, who supposed that an industrialist
could earn economic profits by introducing successful innovations (Malerba and McKelvey,
2020). In other words, innovation the wider concept for entrepreneurs as it is used to improve the
organizational performance by adopting the changes. The innovation can be classified into two
categories:
The category first involves all those activities which reduce the overall cost of production
like as the introduction of new technique and method, which is being used by business concern
and supports to influence the number of customers. The category second of innovation theory
contain all activities which increases the demand of a product like as introduction of new
commodity or new quality of goods, the emergence or opening of new market, and finding new
sources that is used by business concern for the purpose of growing their business and attain
higher productivity. An entrepreneur can earn larger profits for longer duration by managing the
all functions and activities effectively (Chen, Han, and Qu, 2020). In relation to Cadbury,
management mainly focused over innovation where they introduce new products or chocolates
by changing taste that can help to attracts the larger number of customers and supports to
increase the organizational profits. Dairy Milk Mystery Bar is the new products of Cadbury after
Silk Mousse that can help to influence the number of customers in changing environment and
supports to increase sales. The management of such organization analysis the environment and
make decision to leave the organization that can help to attain the higher profits (Varshney,
2020).
Roger’s Innovation Diffusion theory
This theory refers to an innovation theory, provides a foundation for understanding
innovation adoption and the factors that influence an individual’s choice about an innovation.
The theory is broad in scope which is used by individual for the purpose of introducing new
changes and managing the business activities. This theory describes the pattern and speed at
which new ideas, products, and practices spread through a population. This is important to
individual to analysis the environment and comes to know what people wants and how they can
be satisfied in changing environment. The management should be focus over changes and then
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put efforts to grow the business (Roger’s Innovation Diffusion theory, 2019). The main players in
the theory are innovators, early adopters, early majority, late majority, and laggards.
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Figure1 Stages to diffusion of Innovation theory, 2019
The stages are used by company while introducing the new products such as:
 Innovators – This involves people who wants to be first to try the innovation. These
people generate new ideas and willing to take risk while developing new ideas.
 Early adopters – The opinion leaders are represented in this stage where change
opportunity is adopted by leader to introduce the changes. In this strategies are
formulated by leader then implement within organization by creating comfortable
working environment (. Nakamori, 2020).
 Early Majority – These people are rarely leaders and do not adopt changes or new ideas.
They typically need to see evidence that the innovation works before and willing to adopt
it (Yakob, 2021).
 Late Majority – The people who follow such stage are considered as sceptical changes,
and will adopt only innovation after has been tried by majority. Strategies to adopting
innovation states how many people have adopted it successfully that can help to develop
the organizational functions (Bratton and Boak, 2020).
 Laggards – This type of people are very conservative and traditional. People are very
sceptical of change and hardest group to bring on board. Strategies to appeal to this
population involves statistics, feel fear, and pressure from other people to adopt changes
that affect the organizational productivity.
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Idea generation to products, processes or services is considering as process which is used by
entrepreneur via using critical thinking as it provides planning and sources to come inti new
market and influence the number of customers. The management of Cadbury analysed the
marketplace to know why customers are switching to other brand and what taste they like then it
makes the use of innovation and introduce new chocolates as per customer taste. To manufacture
this products, management and producers go through various processes, procedures, and services
that can help to develop innovative idea and increase the organizational performance in changing
environment (Nordberg, 2020).
A proposal for an innovative product, process or service for a working organisation and produce
an implementation plan.
To run a business successfully in changing marketplace, change is considered as important
aspects which is used by people to managing the business functions. Before launching and
introducing new products, processes and services there is need to conduct the market research as
it can help to operate the business and supports to increase productivity. Cadbury is the larger
size multinational company that is larger organization selling different types and taste of
products made of milk, influenced the number of customers and supports to increase the business
performance (Rydvalova and Skala, 2021). The management identify the condition of company
and formulate effective plans to increasing number of customers. The company is planning to
introduce new product such as Dairy Milk Mystery Bar with the help of business plan that
defined below:
Executive Summary Cadbury is the British multinational confectionery company, running
their business by offering different taste and flavour of chocolates
and other Cadbury products. The company is understanding the
needs and wants of their customers and bring new taste and design
of products that can help to influence the number of people. Now,
company is planning to introduce Dairy Milk Mystery Bar as new
taste and design. There is need to follow such stages:
Market Analysis Strength- Dairy Milk Mystery Bar is new products that will likely
by more customers. This contain a new taste and flavour. Company
is operating the business by managing all functions and resources in
changing environment. It is world’s leading confectionery company,
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having strong brand reputation.
Weakness – Having many competitors of Cadbury such as Nestle,
Mars, Ferrero Rocher, Toblerone, Lindt, Hershey’s and others. Few
controversies regarding advertisement. Recalling of product that
hampered Cadbury’s brand image.
Opportunities – Cadbury increases their reach and penetrate in
untapped markets, acquiring competition that can boost the market
dominance of organization, diversification of product range in to
food segments.
Threats – People are health conscious that can reduce the intake of
chocolates, inflation, and increase cost of raw material.
Strategies Marketing mix: This is a model which is used by Cadbury to enter
into market and introduce the products that can help to increase
performance. The model is explained below:
 Product: Dairy Milk Mystery Bar is new innovative
products that will introduce by Cadbury.
 Price: Cadbury is adopting price skimming strategy as it
provides better quality and design of chocolates influenced
people to make buying decisions (Sartipi, 2020).
 Place – The chocolates will be introducing in England, UK
as customer demanding more.
 Promotion – Cadbury is using social media marketing,
influencer marketing, you tube, and others that can help to
attracts the number of people and supports to increase the
organizational sales.
Differentiation strategy – This is important strategy which is used
by organisation for the purpose of introducing new products with
effective design and taste to influence the number of people. This
can help Cadbury to attract the higher range of people and increase
organizational sales. This supports to attain the competitive
advantages and maintain higher performance (Menzli, Smirani,
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Boulahia and Hadjouni, 2022).
Budget To formulate the plan in introducing Dairy Milk Mystery, bar a
budget is prepared such as:
Frequency Amount (£)
Operating expenses £ 2000
Investment expenses £ 5000
Financial expenses £ 3000
Total £ 10000
Measure and analysis The all stages and planning will be evaluated by Cadbury’s
management by using KPI tool and Benchmarking.
KPI – This is a technique and tool which is used by company to
evaluate the organizational and employee’s performance while
introducing something new product and services. This can help to
bring changes in existing performance and supports to adopt changes
effectively (Masciocchi, 2020).
Benchmarking – This is another tool which is used by Cadbury to
comparing business processes and performance metrics to industry
bests practices from other company. This can help to maintain the
high quality of products that can help to influence the number of
people and supports to increase the organizational sales.
The above discussed plan is implemented by Cadbury that can help to maintain the higher
competitive advantages and supports to increase the administrative yield. This also helps to
providing higher benefits while introducing new products and process.
CONCLUSION
From the report it can be concluded that business ideas and innovation is the process of
bringing new product, process and services that supports to run business effectively. Market
research and use of innovation theory considered as main phases that are used by marketing
management in an organization. This is significant for organization to analysis the market and
familiarise products accordingly which can help to attain the competitive advantages and develop
the organizational productivity.
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