HND Business Management: Cadbury Marketing Essentials Report Analysis

This report comprehensively analyzes the marketing strategies of Cadbury, a prominent confectionery company. It begins with an introduction to the evolving role of marketing, emphasizing customer preference research. The report delves into Cadbury's background, established in 1824, and its diverse product portfolio. A detailed SWOT analysis highlights the company's strengths, such as a strong brand image and global presence, and weaknesses, including limited product diversification. The PESTLE analysis examines the political, economic, social, technological, legal, and environmental factors influencing Cadbury's operations. The report further explores Cadbury's SMART objectives, market segmentation, targeting, and positioning strategies. It then outlines the company's marketing mix, encompassing product, price, place, and promotion strategies, along with implementation plans for new product launches, such as organic sugar-free chocolate. The report concludes by emphasizing the importance of adhering to marketing standards and continuous innovation to gain a competitive advantage. References from academic journals are included to support the analysis.

Marketing essentials

Introduction
 Marketing role has been changed with passing time now marketing does not
mean only sale the product. Marketing also include research for customer
preference to give best to its customer. This ppt describe whole process of
Cadbury product marketing, it contain, SWOT and pestle of Cadbury,
SMART objective decide by Cadbury for its new product. Marketing mix
strategy of Cadbury. It also include the process for developing new product.

Background of Cadbury
 It was established in 1824 by John Cadbury in England. At that area people was highly
addicted of alcohol, john find chocolate drink as healthy substitute of alcohol.]
 First factory was established in countryside village and named it bournville.
 First ever dairy product of Cadbury is Dairy Milk launched in 1905.
 Company now do its business in nearly 40 countries.
 Cadbury has so many quality products in its basket like Dairy Milk, Caramel Cake
Bars, Brunch Hazelnut and Oreo, Blackcurrant Mini Rolls. Cadbury make
diversification efforts like health beverage and organic chocolate, biscuits

SWOT of Cadbury
Strengths
Strong brand image
Global presence
Sound financial position
Quick Adaptability of customer demand
Excellent Advertisement practice
Weakness
Less product diversification
No healthy ingredients in product
Lack knowledge of international market
Short shelf life of product
Opportunity
Growth opportunity in Asian market
Merger and acquisition opportunity
Low fat and sugar free product
Threat
Sugar tax and fuel price can quickly affect
product price
Product substitute easily available
Health awareness can decrease sale

PESTLE of Cadbury
 Political factor- BREXIT and immigration restriction affect the organisation. change in
regulation for tax, labour, environmental policy also affect the Cadburys whole function and
operations.
 Economical factor- Inflation rate reduce the purchasing power of customer which can affect
sales of Cadbury’s high cost product like Bourneville. interest rate increase than Cadbury would
not be able to expand its business because of costly borrowing.
 Social factor-Obesity, life style disease and diabetes are the issues that influence the product
develop decision of Cadbury. Cadbury launch organic and sugar free chocolate and health drink
because of these social changes
 Technological factor-. Technological change force Cadbury to implement the latest technology
in production, distribution, marketing and customer relation, For instance Earlier Cadbury use
traditional method in maintain customer relation but now it manage its customer relation with
CRM and inventory and logistics management by RFID.
 .legal factor- law regarding customer health and safety, labour law, food packaging and labelling
law force Cadbury to make its production process and packaging to insure consumer safety.
 Environmental factor- Cadbury now use eco friendly packaging for its product and recycling
and wastage management includes in its CSR policy.

SMART Objective of Cadbury

Market segmentation, targeting and positioning of Cad-bury
 Segmentation- Cadbury customer demographic segmentation include 4 to 50 year age,
medium income level group. Cadbury dairy milk is offer for regular chocolate user and
Bourneville is for occasional uses.
 Targeting- Cadbury target all kind of customer for dairy milk its include young, old, male,
female etc. Cadbury crème egg targets children of 5 to 10 age where Cadbury luxury
collation pack targets dark chocolate lover and health conscious people .
 Positioning- Cadbury promote Bourneville as its luxuries product which can be use for gift
purpose. Cadbury try to make Boonville image among customer as high living customer
product by comparing it with wine. Dairy milk is promoted as fun break for youth and
children.

Marketing strategy of Cadbury.
Cadbury use different marketing strategies for different product after analysing the current
position of product in market. Company use Ansoff's Matrix to develop different market stagy
for different product.
 Market Penetration- market penetration strategy used to increase sale of existing product to
achieve higher market share. Cadbury choose market penetration for Dairy milk, perk and
bourvita because these product already have nice demand and image in market so sale can be
increase with minimum marketing efforts.
 Market development- Cadbury try to increase market size for its current product. This can
be achieve by convert potential buyer into existing customer of product. Cadbury use
market development strategy for Bourneville because currently so many people do not use it
 Product development –product development include bring innovation in current product
for existing customer to enhance their satisfaction. Cadbury add organic ingredients to its
chocolates for health conscious customers.
 Diversification- Cadbury diversifies itself into healthy drinks and candy, ten chunk,chocos,
Hazelnut Truffle and Toffee Truffle variants for children.

Marketing mix of Cadbury-
Cadbury marketing plan include maximise the customer satisfaction, new product
development, increase market share.
Product
• Cadbury has so many quality products in its basket like Dairy Milk,
Caramel Cake Bars, Brunch Hazelnut and Oreo, Blackcurrant Mini
Rolls.
Price
• Cadbury offering differentiate pricing for different product so that
customer can purchase as per his capacity. Pricing policy depend on
product size, capacity of target customer, demand and competitor,
packaging quality
Place
• Cadbury have large distribution channel form which include
manufacture, whole-seller , retailer and end up with customer, long
distribution chain lower the profit margin for Cadbury.
Promotion
• Confectionery giant Cadbury uses television, social media, internet
marketing, event management, charity programme for promotion.

Implementation plan for new organic sugar free chocolate
1st month-
 Define new product as unique characteristic product have. For instance Cadbury
decides to launch organic chocolates. Requirement of new product making like
ingredients, unique feature, and need must be crystal clear in mind of marketing and
production department employee.
 Measure the competency of new product with organisation vision and mission
 concept testing of organic chocolate
 Budget estimation and demand forecast
 Communicate to stakeholder like supplier, share holder, customer and ask for
suggestions for new idea by board of director

2nd month
 PESTLE, SWOT, porter 5 force analyses to know factor that can affect the production
of new chocolate.
 Product research and development efforts are to be made to achieve the objective for
launching the chocolate.
 Financial and physical arrangement for production of new product.
 Start production
 Internal audit for quality of product. For instance Cadbury distribute this organic
chocolate to employee and for their family and ask them to give feedback and review.

3rd month
 Distribute the chocolates among external stakeholders to receive their opinion.

 Cadbury firstly launch the product with among customer so that final quality check can
be done(Habibi, Laroche. and Richard, 2016)
 In case of positive feedback from customer Cadbury can make marketing plan for the
product.
 Cadbury has to brainstorm for increase excitement among customer for new launching
by press release(Habibi, Laroche. and Richard, 2016)

4th month
 Training to marketing team for making marketing effort like promotion
 Build media influencer ,
 Give training to marketing team about new product
5th month
 Build strong PR and communication with customer,
 Check everything is done like quality check, rule and regulation check, packaging
check etc.
 Strong promotional practice by social media, TV radio etc.

6th month
 Finally, launch the product
 ask for customer support
 communicate and educate about the product like Cadbury provide health benefit
information at the launch time so that customer can understand the idea behind launch
 review the market performance

Conclusion
 It has been conclude that any organisation must follow standard of marketing
process like SMART objective and SWOT, PESTLE before performing any
kind of marketing activity. If company follow these standard , failure risk can
be minimise. Organisation can get competitors advantage only by making
correction, improvement and innovation as per need of customer so it must do
more brain storming before launching any product.

REFERENCE
 Godey, B. and et.al., 2016. Social media marketing efforts of luxury brands: Influence
on brand equity and consumer behavior. Journal of business research. 69(12). pp.5833-
5841.
 Schlegelmilch, B. B., 2016. Segmenting Targeting and Positioning in Global Markets.
In Global Marketing Strategy (pp. 63-82). Springer, Cham
 Iqbal, A., 2015. Understanding global product launch process: Stages, standardization
and influencing factors.

Thank You!