BTEC Marketing Essentials: Cadbury's Marketing Plan and Evaluation

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This report provides a comprehensive analysis of Cadbury's marketing strategies, focusing on the role of the marketing mix in achieving business objectives. It compares Cadbury's approach with Nestle, examining product offerings, pricing strategies, distribution channels, promotional activities, and customer engagement. The report then delves into Cadbury's adopted marketing strategies, including undifferentiated, differentiated, and concentrated marketing. Furthermore, it develops and evaluates a marketing plan for a new Cadbury product, the Fruity Bar, including an executive summary, vision, mission, objectives, SWOT analysis, and STP (Segmentation, Targeting, Positioning) strategies. The report aims to understand Cadbury's approach to achieve its goals.
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Marketing Essentials
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Table of Contents
INTRODUCTION ..........................................................................................................................3
TASK 2............................................................................................................................................3
P3 Role of marketing mix that helps in planning process to achieve business objective...........3
M 3 Marketing strategy adopted by Cadbury in achieving organisation goal............................7
P 4 Develop and evaluate marketing plan for company.............................................................7
M 4 Evaluation of detailed coherent evidence of marketing plan for introducing new product.
...................................................................................................................................................10
CONCLUSION .............................................................................................................................10
REFERENCES..............................................................................................................................12
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INTRODUCTION
Marketing is a way of communicating, promoting, purchasing and delivering product and
services to the end consumer. Through marketing company can generate brand image in the
minds of consumer. Marketing mix is a strategy that involves product, price, place, promotion,
people, process, physical evidence. These model help in achieving overall goal of company and
in planning process. The chosen company in this report is Cadbury that deals in wide category of
product range of confectionery founded in 1824. This brand always promote its product in a
inexpensive luxury way. This report provides the details of how marketing mix help in planning
process of enterprise. It also create and evaluate new business plan for company along with
coherent evidence base marketing plan. It helps in achieving goal of business.
TASK 2
P3 Role of marketing mix that helps in planning process to achieve business objective.
Marketing mix is one of the business model through which they achieve business goal of
organisation. This strategy helps in analyse consumer, market, product sentiments. It is essential
to keep on evaluating these sentiments in respect of marketing mix because it provides
competitive advantage to an organisation. In context of cadbury marketing mix plays a major
role in creating its famous brand name. These strategy helps in attracting new and existing
costumer base. To check effectiveness of business plan they use marketing mix strategy. By this
model company understand what category of product or services should be deliver to the
company (Bagozzi and et.al, 2018). This aid in planing of product offering of various category. It
helps management team in developing and executing effective strategy of marketing. It provide
strength to this organisation and control cost of operation (Arslanagic-Kalajdzic, Žabkar and
Diamantopoulos, 2019). It examine whether the product of company is preferable by costumer or
not. This determine requirement of potential consumer. This provide proper direction to
company for promotion of its product and services.
Here is a comparison of marketing mix in planing process to achieve objective between
Cadbury and Nestle.
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Factors Cadbury Nestle
Product Company provide wide
category of products and
services. It has strong length
and width category in product
range. The more preferable
product offerings are Diary
milk, 5 star, Eclairs, Perks,
Germs. These are highest
profitability segments as they
highest selling products.
It provides product range like
Kit-Kat, Munch, Milky Bar,
Polo. But Kit-Kit is the only
brand in chocolates that
preferable by premium
costumer.
Price Cadbury offers different
category of products that cater
each type of segmented
costumer. Each type of
segmented costumer has
different outlook towards
pricing of product. So
company successfully analyse
which segmented costumer
prefer what type of pricing
(Beygiyazdi, Nayebzadeh and
Davoodi Roknabadi, 2018).
This help in gaining maximum
profit. Example- Diary Milk 5
Rs. , Perk 5 Rs. For low
segment, Fruit and nut 22 Rs.
For high premium segment,
Nutties 18Rs. For moderate
Nestle fixed its price of the
product as per trend in a
market. The demand of market
aids in fixing price of its
products. They try to set up
price at low level to attract
more costumer. Example-
They offer Maha Munch only
of Rs. 5 that provide more
value to costumer at affordable
price.
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segment. They try to set price
as per taste and preference of
costumer.
Place The channel of distribution of
Cadbury is very well maintain
and established in all parts of
rural, urban areas. This system
is running effectively as they
easily satisfied the demand of
consumer in all the parts. This
is well established brand name
and popular for its distribution
channel.
They practice structure of
FMCG. It established effective
channel of distribution in
urban areas but trying hard to
develop in rural. In rural part
of countries they trying to
develop their channels by
establishing regional sales
office.
Promotion For promoting its product they
endorsing high profile
celebrities. They appoint
Amitabh Bachchan as brand
ambassador (Bonaparte, 2019).
It influence large market base
of consumer. This gives boost
in the sale of its products.
They are promoting through
various channel like social
media, television, radio, online
digital platforms etc.
Company appointed Rani
Mukherjee as brand
ambassador. This mainly
targeting youth of country. But
it does not cover wide range in
television promotion as
Cadbury spend more
investment in children's TV
channels. Cadbury covers big
market share thatb is a biggest
threat of company.
People Major elements of people
include employee and
costumer. Industry mainly
famous for better relationship
between consumer and
They believe in developing
value to costumer and
employee. As valuable
employee can only provide
better services to costumer.
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employee. They hire best
employee which analyse
costumer preference and
provide premium service to
potential costumer. This will
improve the performance of
company and leads to increase
in sale.
For betterment of employee
relationship by creating value
if its shareholders. They
organised regular campaign
for rural development that
helps in managing people. It
follows decentralised structure
in workforce.
Process It plays essentials role in
creating and delivering value
to end costumer. Through this
step they can analyse where
they are lacking and make
improvements accordingly. It
aids in making decision
making of marketing
strategies. They are much
effective in this step
As compare to Cadbury they
are not much efficient in this
step. They need to improvised
where they are lacking. They
need to decrease its expense
and operating cost that occurs
in delivering products. It will
aids in creating strong brand
image. They have to try to
maintain freshness in the
process of their product.
Physical evidence It includes branding,
packaging, physical
environment that involves
while selling of its products. It
is kind of value that costumer
are receiving while consuming
(Kumar, 2017). They are
much effective as branding,
promotion and costumer
service is well established and
maintain by them. They
They need to ensure that all
physical aspect are interlinked
with its product values. They
are delivering value their
potential consumer but this not
that much efficient as compare
to Cadbury. They are not
capable enough in providing
high quality to the premium
consumer. The physical
evidence of Nestle need to be
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delivered high quality of
products to end consumer.
improvised.
M 3 Marketing strategy adopted by Cadbury in achieving organisation goal
Marketing strategy help organisation in identifying affected segment areas and helps in
creating organisation plan. To providing clear direction in achieving business objective,
Cadbury adopted following marketing strategies.
Undifferentiated marketing- This involve unchanged marketing of existing product. It
decease cost of operations and marketing. But it will increase promotional activities and
effective distribution channel.
Differentiated marketing- In this strategy company updated its existing product and
launch in new market segment. The marketing mix is also updated as per the chosen
segments.
Concentrated marketing- This is a type of nice marketing strategies. In this strategy
they only focus on particular segments (Nargundkar, 2020). It leads to utilisation of
limited segment.
It is essential for organisation to utilise aggregation of all these strategies for various
range of its product and product mix.
P 4 Develop and evaluate marketing plan for company.
Executive summary- Cadbury is famous confectionery and beverage brand founded in
1824. They are offerings wide category of products and services. For increasing sale or market
share they can launch new product range that is Fruity Bar. It will provides competitive
advantage to the company. They can launch this new product in existing market or in new
market. This will increase their costumer base from its competitors.
Vision- Vision of Cadbury is to maintain the trust of potential consumer and create
sustainable environment. They believe to develop peaceful and discriminating free society.
Social justice is the overall vision of a company.
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Mission- Cadbury promise to deliver their product at superior quality. They believe that
their brand is depend upon quality (Noormoradia and Mozafarib, 2017). They promise to deliver
improvised product on regular basis.
Objective- To survive in market with this new product in long run. Provide improvised
new product with high quality. The distribution system of ths range should be effective so that it
will available to the all parts of country.
Smart objective- Smart objective of Company is to gain 25% revenue growth. 20%
annually Revenue increase. Increasing 6% per share dividend annually. For maximum
profitability they have to practice Ansoff matrix (Sivaraman, 2020). This will provide
opportunities for growth. Through this they can analyse market penetration and development of
its products.
SWOT- It is necessary to evaluate SWOT analysis before launching new product that is
fruity bar. This provides feasibility of this new product. It gives detail analysis strength,
weakness, opportunity and threat of fruity bar.
Strength- Organisation is well established brand since 1824. The company is already
leading and operating at global level. The company has a strong reputation image and
well establishes positioning in market. They create positive sentiments in the minds of
costumer. They are at peak so it is good time to launch new product range that is fruity
bar. Their targeted segment is large so there is a great opportunity. They are receiving
high growth in chocolate industry in past years. Hence there is a scope of opportunities
for this new product.
Weakness- There is a large market share of company and the fear of satisfying product
demand with market demand is also high. To tackle with this problem they need to
enhance capacity of production so that they can match growth rate of product with
market growth. They can face negative sentiments on launching new product as
costumer are habitual of consuming their existing product (Sulaiman and et.al., 2017).
The new product may be targeted in various segment that require detailed analysis.
Opportunity- Enterprise introducing its product in little competitive market. This is one
of the best opportunity for company to launch new products. They can introduce their
new product in innovative way through campaign or events. It can adopt various
strategies of marketing for product development in the market.
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Threat- As the cost of fuel increase, the transportation and distribution cost also
increase. This leads towards constant increase in costing and this is a big threat for
cadbury while setting price of the product. After pandemic everyone is much aware of
their health. Most of the people prefer to have some healthy supplement. Parents of
children also stopped giving chocolates due to health conscious. The purchasing power
of people also increases now days that increase demand in society, people will prefer to
buy some other stuff rather than chocolates (Suwidiyanti, Oktafia and Haryanto, 2020).
This is also a major threat for Cadbury for introducing new product.
STP- STP stands for segmentation, targeting, positioning. This model will provide
appropriate direction to the company for launching a new product.
Segmentation- company can divide their market segment on demographic basis,
behavioural, psychographic segment. In demographic they categorise through income and
gender. They can set their price of new product at affordable price so that each income group can
purchase. This new product should be available to all gender male or female, there is no set bar
for gender. In behavioural segmentation, they can categorise on decision role, occasion, benefits.
The decision role of purchasing is mainly done by children and youngster. There will no specific
occasion for purchasing new product. They should provide availability of this product in all parts
which act as benefits. Psychographic involve attitude and loyalty status. There should be
enthusiastic attitude seen in potential costumer. Loyalty status of end costumer should be strong.
Targeting- Through marketing campaign they can categories and target their market
segments. Like in past “kiss me miss me”. These tag line target youth, all members in family.
For this new product fruity bar they can create campaign like “healthy wealthy fruity bar” this
will target all the members in family as now days every one is concern about their health
(SWEDIK, 2019). They can provide fruity bar in a sugar free chocolates.
Positioning- It refers to differentiation in new product they will offer from its
competitors. To create unique perception in the minds of consumer they should provide sugar
free healthy fruity bar. This will provide some specific attributes that other competitors are not
offerings. People will definitely like this taste and this will positioning to those end costumer
who are health conscious.
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Ansoff Matrix- This model will classify different approaches that help in planning basic
marketing plan for Cadbury. This matrix includes market development, market penetration,
diversification, product and development.
Market Development- By researching their current market sentiments and demand for
new market share will provide insight in new product launch in new market.
Market Penetration- As per understanding taste, demand, preference of current
costumer base they can introduce new product to existing costumer. This will help in
launching successful campaign of new product in existing market.
Product and development- After launching new product they should keep on
developing and making new changes in that product (Wu and Lai, 2019).. This will grab
more attention of costumer.
Diversification- Cadbury should adopt this strategy for launching new product in new
market. This will enhance revenue and sale. But this requires expertise skill that support
their management team in finding feasible idea for introducing new product in new
market segment.
M 4 Evaluation of detailed coherent evidence of marketing plan for introducing new
product.
The strong marketing plan combines of realistic objective, high-grade strategy, details of
actions, method to track plan. They should be very confident in planning to achieving overall
marketing objectives. Cadbury can adopt market penetration and diversification strategy. In
market penetration they can launch fruity bar to their existing costumer by understanding taste
and preference of current costumer (Tarka, 2017). Through diversification strategy they can
enhance profit and sale but this will require expert knowledge to provide direction to the
company. They should segmented market on demographic and behavioural basis and target
through marketing campaign like healthy wealthy fruity bar. They can position by providing
sugar free fruity bar because most of the people become health conscious. This is the best time to
launch healthy chocolates to gab attention of heath conscious people. The company should focus
on tactics to generate more production, this will ensure availability of new product in all the parts
of countries.
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CONCLUSION
From the above report it has been concluded that marketing mix model provide detail
insight in achieving overall business objective. The marketing mix aids in formulating marketing
policies and strategy of company. The role of marketing is essentials in every organisation that is
why marketing department aids others department of organisation. This provides clear vision in
achieving set objectives. The deep analysis of marketing mix provides details where they are
lacking and take advantage of opportunities. Before introducing any new idea or product into
market they must check feasibility analysis of that idea. For feasibility analysis company must
research SWOT, STP and Ansoff Model. This will improve implementation policy and
controlling in operations. This will leads to setting an appropriate strategy to grab attention of
new costumer. Company should implement their vision and mission throughout their operation.
Company should keep on updating marketing plans using suitable techniques sales, Market share
analysis, efficiency and cost profitability ratio.
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REFERENCES
Books and Journals
Arslanagic-Kalajdzic, M., Žabkar, V. and Diamantopoulos, A., 2019. The unobserved signaling
ability of marketing accountability: can suppliers’ marketing accountability enhance
business customers’ value perceptions?. Journal of Business & Industrial Marketing.
Bagozzi, R. and et.al., 2018. Marketing-Management. Walter de Gruyter GmbH & Co KG.
Beygiyazdi, A., Nayebzadeh, S. and Davoodi Roknabadi, A., 2018. Investigating the Situation of
Lacquered Wire Kavir Yazd Company in Lifecycle and the Fit between Marketing
Strategy and Marketing Mix. Marketing and Branding Research. 5. pp.190-205.
Bonaparte, Y.L., 2019. Sustainable outcomes of an experiential learning project in a principles of
marketing course. Journal of Global Scholars of Marketing Science. 29(1). pp.7-14.
Holbrook, M.B., 2018. Creating value: the theory and practice of marketing semiotics research.
Kumar, V., 2017. Integrating theory and practice in marketing.
Nargundkar, R., 2020. Marketing research: Text and cases. McGraw-Hill Education.
Noormoradia, S. and Mozafarib, A., 2017. Investigating Relationship among Marketing Mix of
7p with Accosting. Journal of Economic & Management Perspectives. 11(1). pp.1431-
1437.
Sivaraman, G., 2020. Marketing Planning.
Sulaiman, Y. and et.al., 2017. The relationship between marketing mix and consumer preference
in supplement product usage. International Journal of Economic Research. 14(19).
pp.381-393.
Suwidiyanti, S., Oktafia, R. and Haryanto, B., 2020. Marketing Mix Strategy to Increase
Consumer Interest in Choosing Educational Institutions. Proceeding of The ICECRS, 7.
SWEDIK, A., 2019. Marketing mix: place (4 p's).
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