Marketing Report: Cadbury and Nestle's Marketing Mix and Planning

This report provides a comprehensive analysis of the marketing strategies employed by Cadbury and Nestle, two leading multinational confectionery companies. The report begins with an introduction to the concept of marketing, its key roles, and responsibilities, and then explores the marketing functions within an organization, emphasizing their interrelation with other departments such as finance, operations, HR, R&D, and IT. It also delves into the 7Ps of marketing mix, examining how Cadbury and Nestle utilize elements like product, price, place, promotion, people, process, and physical evidence to achieve their marketing objectives. The report then constructs a basic marketing plan for Cadbury, outlining strategies to achieve business goals and objectives, and concludes with a summary of the key findings and insights into the marketing practices of these major players in the confectionery industry.

MARKETING
ESSENTIALS

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Key roles and responsibilities of marketing functions ..........................................................1
P2 Interrelation of marketing department with other functions .................................................3
TASK 3............................................................................................................................................6
P3 7P's of marketing of Cadbury and Nestle..............................................................................6
TASK 4............................................................................................................................................9
P4 Basic marketing plan for Cadbury........................................................................................9
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
Marketing is termed as collection of activities which are undertaken by a company in
order to relate profits to market. Basically, it is a process which assists in exchange of products
and services can be viewed as an integral part of socio-economic system that renders a
framework to a business association. Along with this, marketing involves those working
activities and operations that can affect existing as well as potential demand of products and also
concerned with physical distribution of goods to their end users (Armstrong and et. al., 2015).
But before introducing a new product in capital market, management is required to understand
the overall structure of society so as to achieve high competitive edge. The present assignment is
based upon Cadbury which is one of the leading multinational confectionery industry. Cadbury is
a second largest brand in this industry. The firm was founded in 1824 and there are over 72000
employees are currently working with it. Apart from this, the report will describe roles and
responsibilities of marketing functions and their interrelation with overall organisational context.
Furthermore, there will be define marketing mix of two different business associations and there
is produce a basic marketing plan for accomplishing business goals and objectives.
TASK 1
P1 Key roles and responsibilities of marketing functions
The term marketing covers various activities and operations that are associated with
selling firm's offerings to its target audiences. Advertising and promotional are the main
marketing activities but for this management requires to conduct a consumer research so as to
attain higher customer satisfaction level. But marketing concept is not only associated with fulfil
demands but also generate demands. By this medium, goods and services are carried out to place
of consumption with an aim to satisfies customers' needs and desires. Subsequent activities are
undertaken in appreciate of the exchange of products and offerings (Askeland and Wright, 2013).
Business owners and marketers share one common threat, that is generate more and more
consumers and make money. In present scenario, companies are adopted quality marketing so as
to increase traffic on their websites; it involves blogging, webinars, visual contents, white papers
etc. it sets new standards of marketing. Marketing approaches, efforts and messages are regularly
developing. In this manner, instead on changing products as per the firms have to change alter
their marketing strategies in order to flourish a product across the society.
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Nature of marketing: -
 The prime motive of marketing is to attain and retain customers' interest so as to create an
effective brand image. It can be done by using billboards as well as print ads; in modern
era firms are also using internet marketing via social media.
 Another purpose of marketing is to improve brand image of the company, brand name
acts as a foundation for entire firm. If a company does not have unique or clear idea then
it is tough to attain and retain customers for long term period (Babin and Zikmund,
2015). Marketing also assists people to engage with target audiences so as to make necessary
conversations with them. For this purpose, companies are tend to acquire all social media
channels and monitoring as well as responding to all comments. It shows how customers'
will think about the products or offerings of the firm.
Roles and responsibilities of marketing functions: -
 Financing – It is one of the most significant function for marketing as certain amount of
capital is required in order to manage inventories and delivering effective marketing
services. To reach their target and potential customers, marketers uses several
promotional channels which needs maximum finance. Finance can be generated through
two sources, i.e. owned capital and borrowed capital. Along with this, manufactures also
require capital to sustain goods while demand anticipation; they also sale on credit to
retailers. Whereas middleman requires finance for keeping maximum quantity of goods
(Blacher-Wilson, Mense and Richardson, 2011)
 Buying and selling – Buying is one of the foremost function of marketing; its a procedure
of executing goods at right place, at right time and place as well. It is done by directly or
by a middleman. Various manufacturing firms buys inputs in order to transact them into
products. On the other hand, selling is the heart of marketing and it is comprises with all
personal and impersonal activities, such as- securing, finding and generating demand
among customers regarding products and services. Due to manifold enhancement in
production, selling of goods on a profitable prices is one of the main problem with
producer.
 Marketing information system – The core concept of marketing starts with collecting and
analysing marketing information so as to make important business decisions. In Cadbury,
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marketing manager conduct research activities in order to find out customers' needs and
wants. It consists what customers want to buy, in which quantity and on which price. On
the basis of this information, a product is manufactured and send in market to sell. It also
aids in labelling, packaging, branding and promoting of products so as to gain high
cutting edge.
 Product designing and development – On the premises of this evaluation, management
can easily necessary decisions so as to accomplish business goals and objectives. An
effective product design supports to make the product more imperative and attractive
within target market (Clow and James, 2013). In this competitive era, business
organisations are moved to acquire new and innovative techniques so as to make their
products more stylish and attractive rather their competitors.
 Transportation, storage and warehousing – It is not compulsory that all products are
consumed at the same time and place when and where they are produced. There is a large
time difference between production and consumption. In order to cover up this gap,
companies used several modes of transport as products can be easily reached to their end
users across the globe. Along with this, multinational firms also acquire transport not
only for finished goods but also for raw materials. For this purpose, goods are stored at
safe place so as to provide them at the time of requirement.
P2 Interrelation of marketing department with other functions
Marketing department of Cadbury has the role to research about the market and
identifies the factors which prevails in market. It provides the opportunity regarding
determination of the competitors and their strategies. There is huge link of the marketing
functions with other departments in organisation. Through this large number of benefits are
gathered by different departments. It provides direction to production department to products the
products as per the preferences of customers. This will have direct impact upon their sales and
profitability. It also helps in making better connection within the organisation in between
different departments to take their support in completion of specified tasks (Desai, 2013). The
relationship of marketing department of Cadbury with other organisational functions can be
understood with the following points:
 Relation of marketing with operational department: The major role of marketing
department in organisation is to provide their final products to their end customers. The
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four major function which helps in achievement of their predetermined target includes
identification, selection and development of product, determination of price, selection of
appropriate distribution channel and implementation of the effective promotional
strategy. All such activities somehow related to the operational department of Cadbury. It
helps them to understand about the current demand of their chocolates and different items
in market to optimally utilise their available resources to met their different requirements
(Enache, 2011). It also helps in formulation of new flavour chocolates as per the need and
preference of customers. It provides the opportunity regarding attraction of large number
of customers.
 Relation of marketing with finance department: It is not possible for marketing
department is to provide their activities effectively without sufficient amount of funds.
Lack of funds affects the capability of marketing department of Cadbury about use of
modern promotional tools which bring awareness among wider range of customers about
their existing and upcoming products. It is the responsibility upon the finance department
is to effectively understand about the requirement of funds by different departments.
Such effective allocation of financial resources helps in performing their different
activities in more appropriate manner. It is the responsibility upon finance department is
to formulate the budget which provides direction to marketing department is to operate
their functions within given budget.
 Relation among marketing and HR department: The main role of HR department is
about workforce planning. There are many other functions are provided by this
department in cited organisation like appraisal of performance, recruitment of staff,
determination of remuneration etc. All such functions have direct link with other
departments working in organisation even marketing also. It helps in appointment of
more talented staff members which provides support in achievement of desired targets.
On the other hand, appraisal of actual performance helps in designing of appropriate
training programmes which provides the opportunity regarding development of their
existing skills (Getnet, Kedir and Yousuf, 2014). Simultaneously, determination of
remuneration of as per performance proves as the motivating factors which helps to
improve their passion towards their work. So, they provides the function regarding
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formulation of better teams in organisation whom collective efforts helps in achievement
of common goals of organisation.
 Relation of marketing and R&D department: Research and development department
of organisation is considered as sub system of marketing department. The main function
of R&D department is to conduct the research about factors which are present in market
and affects their sales. Also, about the activities, products and strategies applied by their
competitors to build their position more strong in market. All such information is further
used by the marketing department to formulate their own policies which provides
opportunity to perform their different activities in more appropriate manner.
 Marketing and sales function: Sales department of Cadbury has the aim is to maximise
their sales figure. There is huge role is played by marketing department to accomplish the
targets which is seen by sales department. Promotional activities helps in advertisement
of their existing products and attraction of large number of customers to buy their
products (Gordon, 2012). In this regard, large number of techniques are adopted by
marketing department to improve their sales like trade discount, cash discount etc. It
provides the opportunity to attain the trust and loyalty of customers towards their brand.
It helps to build their position strong in market.
 Relation of It department with marketing: The main function of IT department is to
bring innovation in organisational processes. It provides the opportunity to the marketing
department is to effectively store their important data in more secure manner. It saves the
time about collection of past information in more fast manner. Application of new
technologies to conduct research helps in improving their efficiency about attaining better
results. Application social media platforms to promote helps to reach towards wider
customer base.
It is understood from the above explanation that marketing is one of the important
activity which has direct link with organisational functions. It helps in performance of their
activities in more appropriate manner by reducing mistakes. It provides the opportunity to attain
maximum benefits like higher market share, better brand image etc. All such activities
contributes in accomplishment of objectives.
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TASK 3
P3 7P's of marketing of Cadbury and Nestle
Marketing mix refers to the concept which includes seven different elements like for an
instance product, price, place, promotion, people, process and also physical evidence. It is set of
tactics or actions which an organisation used to promote its products or brand at market place.
Generally, Cadbury business firm put right product at the right place, in right cost and at right
time. In addition to this, it is the responsibility of manager to provide goods and services to
confusers on the basis of their needs and preferences in an effective manner. For producing new
goods, it is essential that firm should use the better raw material in manufacturing process
(Griffitts, 2016). All components of the marketing mix should use through Cadbury company in
a better manner. It will be assess in enhancing sales as well as profit level. Marketing mix is used
through business firm in order to achieve the decided targets and aims with in a specified time
period. In order to this, there is a comparison of marketing mix among the two different firms
Cadbury and Nestle given below as above:
Marketing Mix of Cadbury
Product- Cadbury firm has power line-up of goods. Product can be provided to market
for acquisition, consumption and attention which can fulfil needs and wants of consumers. The
products of Cadbury firm are chocolates, candies, beverages, biscuits and gum. It provides its
products in all over the world.
Price: Price of Cad bury products are fixed on the basis of their quality. Bournville is
luxurious product which are priced higher as per quality. But there are many other products
which are priced lower to satisfy the demands of lower segments. Such items includes Eclairs,
Perk, Five star etc. They decide their pricing strategies on the basis of competition, demand and
packages.
Place: Cadbury provides their products in all over the world. It has such huge impact
upon global market because of having wide distribution channels. They make sure that their
products timely available to all distributors to satisfy the needs of customers (Huang and
Sarigöllü, 2014). It helps to generate their income from different regions of country and
improves their customer base.
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Promotion: There are many ways which are adopted by the management of Cadbury to
promote or advertise their products in all over the world. The major tools which are adopted
includes television, poster, newspaper, online, radio. It helps to expand their reach towards every
region of country and bring awareness among the customers about their existing products. It
helps in improving their sales figure. Such techniques helps in influencing the behaviour of
customers to buy their brand products only. It contributes to build good relation with their
customers.
Process: This includes about the adoption of transparent process which helps to grab the
attention of customers towards their services. This will helps to attain the support of government
and society towards their services. It helps in running the business more effectively and
efficiently to accomplish their desired objectives.
People: This includes about the customers and the individuals whom are directly related
to activities of Cadbury. It helps to properly implement the strategies which helps to fulfil their
different demands through providence of their products and services. On other hand, employees
are asset of organisation. The organisation is need to motivate them to work hard to pay effective
incentives (Jones and Rowley, 2011). It helps in production of more innovative and new products
which satisfies the preferences of customers. It provides the opportunity regarding build good
relation with employees.
Physical evidence: This will provides about that how products should be delivered in
market place. It provides the opportunity regarding determination of their position and presence
at market. Through proper use of this tool customers perception are changed towards their brand.
Their brand products are first available in market. It helps to derive their competitors out of the
market and grab their attention to improve their sales and revenue.
Marketing Mix of Nestle:
It is considered as an effective marketing tool which is used by an organisation in order to
achieve desired goals and objectives.
Product: Nestle becomes the world largest food company which has around 8,000 brands
through which they can offer wide range of products across worldwide. It includes Dairy
products, Chocolates, Beverages etc. through they are capturing largest market share and attain
strong brand position in competitive market world. The company are well known with their
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quality of products due to which they gives tough competition to their rivals such as Bru and
Sunfeast.
Price: The company charges prices on their product for the quality they offered to their
customers. As there are lot of competitors in market whose products are less expensive but due
to lack of quality they failed to attract customers (Kennedy and Parsons, 2014). For example:
Nestle charges little but high prices as compared to Yippee noodles due to offering better quality.
Therefore the company set their pricing strategy on the basis of competitors' pricing strategy,
product quality, geography served etc.
Place: It has been observed from the international reports that Nestle has generated most
of the revenue from European countries. It is almost 90% of the total sales. In order to supply
their products to the customers, they first need to kept products in warehouses after which it sent
to distributors and retailers on the basis of demand of products in market. Sometimes, to attract
customers the company offers discounts on their products which increases the chances of shifting
customers from rival's product to their product. As due to strong players in chocolate market, the
firm may faces difficulties in distribution in market.
Promotion: Nestle always tried to find an effective ways of influencing interest ad
buying behaviour of customers toward their product and services. For this, they should focus on
adopting various promotional tools such as advertising products on TV, hoardings, print, online
ads etc. which helps them in increasing the sales figure of product and generate huge revenues.
People: It is important factor which help company in achieving grow and success in
market for longer duration. It includes the staff members and customers on the which the success
of organisation depends. Therefore, the management need to recruit skilled staff and conducting
training programs for them so that they can effective product quality products with the help of
utilising available resources in an optimum manner (Leonidou, Katsikeas and Morgan, 2013). It
directly helps in maximising the level of satisfaction of customers as well.
Process: It refers to the process of delivering products to customers on the basis of
demand arises in market. Nestle should required to maintain their level of stock in warehouses
and accordingly supply to the wholesalers and retailers whenever the demands arises in market.
It helps in retaining loyal customers for longer duration through supplying products on time.
Physical evidence: Nestle in world largest food company which can easily recognised by
the people in all over the world. The company have attained strong brand identity in market for
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the quality they offered due to which they have attained large number of loyal customers. The
customers also have good perception towards the company's name due to which they exit in
competitive market for longer duration.
TASK 4
P4 Basic marketing plan for Cadbury
Marketing plan for Cadbury are described below:
Introduction Of Business: Mentioned company formerly known was Cadbury's and
Cadbury Schweppes which is multi national company who has been dealing in confectionery
items and this is mainly owned by Mondelez International since 2010. This company was being
established in England within year of 1824 by John Cadbury who mainly sold tea, coffee and
drinking chocolate. In current situation, this company is one of the largest one who has been
dealing in this sector after Mars. There are various kind of famous products which are dairy milk
chocolate, Creme Egg and roses selection and thus many more. This company has been a
constant constituent of the FTSE 100 on the London Stock Exchange from the index of 1984
inception until the company which was bought out by Kraft foods in 2010. This kind of company
hs been dealing in about 50 countries and headquarter is in west London.
Vision and Mission of the company: There are certain kind of objectives on which the
vision of company mainly depends and thus it being accomplished by exchanging up of items
along with administration within centre of commercialism. This company has been focusing up
on promotional activities. Hence they are mainly engaged for image rather then needs of the
clients and employees. When the new management came in, they started focusing upon needs of
customers and thus is being sorted out into sub parts in better and effective manner (Lovelock,
2011). They have been focusing upon various ages by various different promoting plan.
Company's Mission is “Cadbury means quality; this is our promise. Our reputation is built
upon quality and our commitment will bring continuous enhancement which will ensure for the
promise which will be delivered”.
Situational analysis: -
SWOT analysis of Cadbury is being described below:
Strengths
 The major strength is that this company
Weaknesses
 Brand like Cadbury needs to have
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is one of the effective leader in sector
of chocolate market and known for
manufacturing up of wide distribution
channel and thus it is present in about
200 countries.
 There are numerous products of
Cadbury which possesses brand loyalty.
There is high brand equity of company
die to its marketings strategy which is
much more comfortable and thus
charge for premium products
(Menegaki, 2012).
 There is another strength which can be
measured and that is that it has strong
value of brand within the portfolio of
product like Dairy Milk, Bournvita,
Oreo and many more. There has been better distribution
strategy and like all FMCG companies
this uses the concept of breaking Bulk.
Products are being distributed within
many of the countries along with
varieties from past few decades.
strong hold within marketplace but in
some case rural distribution system like
India which has the wide rural term that
can be covered.
 There has been negative impact on the
goodwill of company as there are
various kind of cases where the
elements of non eatable items were
being found.
 This can be stated that Cadbury brand
has been ignoring such kind of
ignorance along with infected
chocolates which can not be leaved for
quality control at all (Pomering, Noble
and Johnson, 2011).
Opportunities
 There is huge opportunity for this
company and that is penetration of rural
areas along with rural markets
distribution. This is mainly present in
foreign companies along with rural
presence which is highly needed by
company so that brand value can be
Threats
 Cost of distribution has gone up and
thus has made increment in fuel costs
with increase rate in transportation as
well.
 There are various kind of people which
has turned up focus upon having
healthy things and turning upon healthy
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