Marketing Report: Cadbury, McDonald's, and Marketing Mix Elements

This report provides a comprehensive analysis of Cadbury's marketing strategies, beginning with an introduction to the importance of marketing in a competitive market. It delves into the critical roles and responsibilities of the marketing function, using Cadbury as a case study to illustrate these concepts. The report examines Cadbury's organizational structure and its relationship with other departments such as R&D, administration, production, sales, ICT, human resources, finance, and distribution, highlighting the interdependencies that contribute to its success. A key component of the report is a comparative analysis of the marketing mix elements (product, price, place, promotion, people, process, and physical evidence) of Cadbury and McDonald's, offering insights into their differing approaches. Finally, the report concludes with an evaluation of a potential marketing plan for Cadbury, synthesizing the findings and providing recommendations for future marketing efforts. The report aims to provide a thorough understanding of marketing principles and their practical application in a real-world business context.

MARKETING

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1. Important roles and responsibilities of the marketing function........................................1
P2. Relation of the marketing with the other functional areas of Cadbury............................4
TASK 2............................................................................................................................................6
P3. Comparison of the marketing mix elements of Cadbury and Mcdonald's.......................6
TASK 3............................................................................................................................................9
P4. Evaluation of marketing plan for Cadbury.......................................................................9
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................13

INTRODUCTION
In the competitive world if a company wants to survive in the market they have to
develop marketing strategies. The success of their business depends upon their marketing.
Marketing involves advertising, public relations, promotions and sales. It is the way through
which an organisation introduces their product into the market. With the help of better marketing
they build an image and convince target customers to buy that goods & services. A firm might
offer a quality product but without its marketing it will not able to survive in the market. Result
of this will lead to losses and profit margins will go down (Al-Hasan, Thomas and Mansour,
2016). This report will be emphasizing on the crucial marketing essentials which are required for
successful marketing and to make it more clear a case study of Cadbury is taken. It will be define
the important roles of the marketing function and its relation with the other departments. A
comparison will be made between Cadbury and McDonald's regarding their marketing mix
element. In the end a marketing plan will be developed.
TASK 1
P1. Important roles and responsibilities of the marketing function.
Marketing is a procedure followed by the companies to deliver their concepts to the
customers. This activity is related with buying and selling of goods and services. Marketing
people tries to crab the attention of the individuals by using different strategies. They take help
of different media platforms and deliver their messages (Babin and Zikmund, 2015). Various
ideas are adopted by the organisation depending upon their target market and they make sure that
their strategies posses innovation. Through this they inform the customers that certain product
exists in the market and if they will be adopting this what all benefits they will have. They try to
relate the goods & services with consumers day to day activity. With increase in the competition
the significance of marketing has also increased. Earlier it was a tough task for the firms to reach
to people directly and promote their promote (Baines, Fill and Page, 2013). But with evolution in
the technology things has become easier and in a few hours they can easily put forward their idea
in-front of people. Marketing is not a small term as it includes lots of activities at a single time.
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The basic aim of it is to build relationship with the customers and make them believe in the
products and services which they are producing.
Cadbury is a British Multinational sweet food industry and owned by Kraft Foods. It was
established in 1824 in Birmingham and was founded by John Cadbury. It is the second largest
company in the world in his sector. Currently, it operates its operation in more 50 countries. For
handling its various operations it has employed almost 70000 people (Baker and Saren, 2016). In
UK it has eight factories which are used for different purposes. It follows simple organisational
structure in UK where managing directors holds the top place and down its is the general
manager. General manager controls vice president and he is given the responsibility to handle
marketing, manufacturing, sales, finance and distribution department. Through this we can say
that it follows “Top Down” structure because the decision making power is distributed in
hierarchy.
It is observed that there is difference between the marketing to a business and marketing
to a consumer. Business to business marketing deals with notion of the goods and focus is made
on the specifications of that particular item. When the purchasing decision is made it does not
include personal references. But if there is case of business to customer marketing Cadbury will
emphasis on the advantages of the product (Banerjee, 2013). Emotional side is considered and
the consumers demand distribution platform which are easy for convenience. Cadbury have to
follow seven functions and some of them are as follows:-
 Distribution: It has to do with the products which will be introduced in the market.
Cadbury has to know what how they will market a new product.
 Financing: Marketing involves paid promotion called as advertising and there are also
other activities which needs investments. Cadbury should make a budget and try to
allocate money to every creation which is required in the marketing operation.
 Market Research: All the information related to the target consumers are gathered. For
Cadbury this is an important task because on the behalf of this only they will for
strategies. The information contains several questions like who all are the target
customers, why they should prefer your product. With the help these Cadbury can know
what are the market trends.
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 Pricing: With the help of market research prices of different products of Cadbury can be
set. They should adopt trail and error method which will assist them in knowing what is
the right price. It is important because a correct price will give Cadbury competitive
advantage. If the prices will be too high people will look for the other brand and if the
products will have hight prices its profit margins will decrease.
 Product and Service management: It deals with hearing the customers demand and
responding according to it. Such things keeps the company's pace because they are up to
date. This has to do with the management of the goods and services (Beatty and
Samuelson, 2014).
 Promotion: Marketing is totally depended upon this as this is the way through which
they will reach their target audience. The promotional message is disseminated through
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media platforms. Cadbury uses various modes of advertisement to promote their
chocolates. If they have to each larger number of people they can use social media.
 Selling: It is last function of marketing and as a close relation with it. This can only
happen after analysing the market and identifying the customer. It is totally focused on
selling right products at right time (Berkowitz, 2016).
P2. Relation of the marketing with the other functional areas of Cadbury.
In Cadbury, marketing department helps them in increasing the productivity and
profitability. There is a relation of marketing with the other departments. To increase the profits
it should be successful in developing a relation with the customers. Cadbury tries to analyse the
market by knowing consumers demands and needs. As it is almost 190 years old and still
running successfully because of its good image in the eyes of customers. It has got a great
success in countries other than UK (Blythe, 2012). There marketing campaigns are creative and
uniqueness. This has given them an extra advantage and has from years it has hold its market.
Marketing is not only the function in an organisation but there are also some other (Bivins,
2013). Cadbury has different organisational functions like administration, research &
development, production, sales, marketing, ICT, human resource, finance, distribution and
customer service. All the functions are interrelated to each other, so there should be coordination
between them. Without any link they will not able to get success in their operations. Following
are the relationship between the marketing and other organisational function.
Research and Development:- It has to play a crucial role in the life cycle of a product.
This department deals with the research of new product, development, modification in the
current product and checking of the quality. Cadbury relies on this department in order to
increase the quality of their product or bring a new one in the current market. The marketing
department coordinate with the R&D team and make them aware about the demands of the
customer. Utilising that information they develops chocolates. For example; through observation
they cam, to know that its product Dairy Milk is one of the most popular product. By keeping the
demands in mind they will produce Dairy Milk in another flavours.
Administration:- The role of this is to take care of all the laws made by the government
and make sure that there is efficient performance of the employees. They try to built a relation
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between the senior members of the Cadbary and the lower level staff. They help marketing
people to know their limitations and scope ensuring that all the government regulations are
followed.
Production:- Marketing department aware the production team about the type of product which
has to be developed. They also aware them about the quantity of the chocolates which has to be
produced. Marketing strategies can also try to stimulate a certain response of markets in order to
influence the demand of products in terms of timings (Braslow, 2015).
Sales:- It builds relationship with the customers and tries to sell the products of Cadbary.
Marketing departments builds background for the sales team by promoting the products and
services which has to be sold.
ICT:- Expanded as information and communication department and in current era it is greatly
helping the companies. With the help of this advertising copy for the promotion can be
developed from this. It would be a great support in placing ads on social networking sites
because Cadbary know that through it they can reach to a larger number of customers. They can
build online platforms where they can sell their products (Brooks and Simkin, 2012). This is also
useful in knowing the market trends through an online survey. ICT software also gives freedom
to Cadbary to monitor the visitors on their official site.
Human Resource:- Cadbary can gain many advantages from the coordination of human
resource and marketing department. Marketing people aware HR department to about the
employees which are required by them and they also make them aware that what all resources
they require in marketing procedure. Cadbary has the great products which has capability to
satisfy the customer needs. Through strategic management, brand management and human
resource use this objective as a deliver all decision making.
Finance: All the marketing strategies has information about the upcoming as well as current
goods and services. Finance departments supports marketing teams and make sure that they don't
face shortage of funds (Campbell and Martin, 2015). Whatever operations are carried out by the
marketing may rise their sales so a proper estimate of the expenses are made by the finance
personnel. Cadbary marketing team is has tied up with an advertising agency and decided to
work together. They wants to build a advertising campaign for a new chocolate flavour which
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has to be launched. Marketing team contacts the finance team that they require this much amount
in order to provide further.
Through interrelation between the marketing and other department Cadbary can gain new heights
in their business. In the same context distribution department also has its own significance. It
will bring satisfaction to the customers and will increase performance as well.
TASK 2
P3. Comparison of the marketing mix elements of Cadbury and Mcdonald's.
Comparing the concepts of marketing mix for different company elements requires set of
actions and planning to do it. To sell the products and services of any organisation for
improvement in its quality and promotion of its brand, they require to properly inspect their
quality through marketing mix strategy. This plan basically contains seven elements that need to
be processed (Cua, Reames and Chai, 2013). They are product , people, process, price, place,
promotion and physical evidence. To improve in the quality of Cad bury firm, there is a
comparative analysis with another organisation that is McDonald. The brief discussion of all
these seven factors are mentioned below in context of these two organisation. McDonald's and
Cadbury. Although both these companies are working in different fields and sectors, still a
comparative analysis is made below:
McDonald's: It is most popular and fast food chain restaurant in UK which has basically
establishes in the year 1940. it was opened by two people named as Richard and Maurice
Mcdonald's. So the restaurant was named after their last names (Desai, 2013). It is a biggest food
chain industry, which actually operates their businesses in more than 100 countries
approximately, across the globe. They have calculated their stores which is circulated in parts of
world, which was counted up to 30,000 stores and even more. The customer base of this
organisation is very strong, that is around 53 millions.
Product: McDonald's is a greatest chain of food products and items, that it has served
large amount of customers with its food and beverages. There would be around so many
customers and fans all around the world. The items provided by this company is provided in both
the varieties that is vegetarian and non-vegetarian (Desselle, Zgarrick and Alston, 2016). Their
main aim is to provide better quality of products which will finally help the organisation to
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increase its productivity, customer count and brand name. Also while distribution of food items,
there should be an extra care taken to see that no cast, religion or creed is been affected by their
processing of businesses. The food items it sell include cheeseburgers for both veg and non veg,
chicken nuggets, veg nuggets, hamburgers and French fries (Dibb and Simkin, 2013). Also with
this they provide cold drinks, soft drinks, shakes smoothies mock tails and so on to drink.
Cadbury is also one of the top leading company of today generation, who is providing
large number of products distributed all over the country. Their main aim is to provide better
quality of products which will finally help the organisation to increase its productivity, customer
count and brand name. Also while distribution of food items, there should be an extra care taken
to see that no cast, religion or creed is been affected by their processing of businesses.
Price: The appropriate price establishment for any product is very crucial job. It should be apt
according to the situation of the market scenario. The effective costing of product can lead to
high sales and marketing of that company. The price should be neither too high , as it will
become UN-affordable for normal people and nor too low to get the company being exploited.
This will maintain a balance and correct position of that company in the market place (Dioko,
2016). There are many factors used by McDonald's through which it maintains its prize at a
minimum level, which is almost affordable by many categories of people, especially middle class
gentry. With the serving of food items and services individually, they also have provision of
combos, which interests many customers. Their products and services are at competitive price
level, which maintains their status in the market.
Now when we talk about Cadbury, its price is considerably very reasonable and easily
available in the market. It is the most frequent product of the world, because it is very
considerate and of great taste. It maintains its quality and also the range of prices is in wide
variety so every one can afford to buy it.
Place: For McDOnald's, as it has established its businesses on large scale, at various parts of the
world, in approximately 120 countries or even more. Which means it has more than 30,000
restaurants across the world (Draelos, 2010). They have made use of some unique different
strategies of businesses and marketing which involves to open the restaurant in rural as well as
urban areas. Even at remote locations of UK, there can be an existence of this restaurant to
facilitate customers with their service. It supports customer convenience, because it has better
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areas and location where these branches are opened. Also parallelly with this, this company has
given franchise to many shopping malls, airports, railway lines and even highways.
As company mentioned above, same is the case with Cadbury, since it has been located
in many parts of the world, so it has no issues with the location and in fact it has many benefits
due to the place factor, because it has diverted its franchisee to all parts of the world. They have
made use of some unique different strategies of businesses and marketing which involves to open
the restaurant in rural as well as urban areas (Hauer, 2011).
Promotion: It is the most crucial step of maintaining a business and trying to keep it to work
effectively and efficiently. This generally involves the process of communicating with people of
targeted market. Convincing them to buy their products and avail their services is the sole aim of
the promotion department of McDonald's team (Fill, 2011). All the strategies of promotion help
the company to maintain its brand name and image. Once proper promotion is done, then it will
attract a lot of customers and bring the name of the company in lime lights. Everyone will likely
to use their items and services, because of good promotion tactics. There are different tools and
techniques used by McDonald's. All these help in developing brand name with the use of
television, radio, social media, broadcasting on national television, and advertising campaign.
In Cadbury firm, there are various methods used for promotion to reach to even to the
smallest city or lane of the country. Products of this company can be seen even to the remotest
locations possible because of its promotion techniques. Once proper promotion is done, then it
will attract a lot of customers and bring the name of the company in lime lights.
People: This is a latest newly added attribute added to the marketing mix strategies, which
includes employees, customers and organisation (Hoványi, 2013). Their main aim is to build
good relation with customer and produce better products for gaining profits. McDonald's hire
very efficient and effective staff members, so that the quality is not compromised.
In cadbury, people are very particularly hired and they focus on good employee relation.
This brings the best outcome possible for this company. Their main aim is to build proper
relation with their customer as the above mentioned company .
Process: The actual working of the organisation comes under this process. All the functional
attributes of conducting businesses plans comes under this activity (Jackson, 2011). McDonald's
method of distributing and packaging is unique and different from other companies, and they
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properly do them with full dedication. They also give provision of checking the ingredients
which are packed for the customers, in case they want to re-check.
For the company like Cadbury there main focus is on effective delivery of products and
items with good quality to the customer. This should be properly formulated and worked upon.
Physical Evidence: The services provided by McDonald's is intangible in nature, which
basically means it cannot be felt or touched (Jain, Ahuja and Medury, 2013.). But still there are
customers which rely on the organisation because of their brand name or layout and buy their
products. It simply means an assurance of a store which has been established in a particular area
gives customers a belief or trust to buy their items.
Cadbury firm is also trusted and established in due course of time. Since it has been
established from long before and at verified places, thus there is a trust by the customers on this
company to make them buy their products and avail their services.
TASK 3
P4. Evaluation of marketing plan for Cadbury.
Marketing plan is a document which highlights the marketing operations which will be
carried out by the Cadbury to expand their business. It describes what all things are required to
promote company's product. Any organisation who want to survive in the market or constantly
maintain their performance need that they should build a plan which is according to current
marketing trends. It includes all the actions which are required to be done in a specific period of
time. While developing or creating a marketing plan Cadbury should have all its information
related to its business (Jones and Rowley, 2011). They need market research, knowing their
competitors, what all budgets they have and what all goals they wants to achieve. The basic aim
of this is to show the path to the business of Cadbury which will lead them to success.
Marketing Plan or Strategy for Cadbury:
Segmentation, targeting, positioning in the market plan: It brings products by
analysing demographic and behavioural factors. For example; they may bring a product on any
special occasion or festival. It is observed that almost all people consume its products whether
young or older people. Cadbury's offering are based on the production capacity, pricing of the
various packs, designs of its packets and the what all storage capacity they have in the shops.
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Although they don't have any target audience because its products are for all class of people. But
there are some which of products which focuses on certain groups only. Its chocolates
Bourneville came in the market with emphasizing on consumer who are ready to pay high
amount (Joshi, 2014). Through Cabdury Silk they has also set the target market and focused on
people who cannot chew chocolates. They have given it a symbol that it can be consumed during
happy movements or at the time when the person is carefree from all the headaches.
SWOT Analysis of Cadbury:
With the help of SWOT analysis Cadbury can evaluate its internal and external
environment.
Strengths
 It has high reputation in the market.
 It is well known brand among people.
 Individuals have a positive perception
regarding Cadbury.
 It is the most consumed chocolate
brand in UK.
 They have really good Research &
Development (R&D) department.
Weaknesses
 Branding of it requires more financial
investments.
 Its chocolates are not considered as
healthy.
 Sales totally depend upon the season.
 Some of its products have high price.
Threats
 It is facing increase in the cost in its
supply chain, manufacturing,
transportation and packaging.
 It has pressure from government to
transparent its operations and provide
information on its CSR model. They
need to be very much clear about what
they are doing otherwise they might
loose brand value.
 Changes in eating habits are increasing
Opportunities
 They can promote or expand their
business in the countries where demand
for western products are high. They can
target Asian subcontinent for this.
 As it is part of the Kraft foods which is
one of the biggest food company in the
world. They can take advantage of this
and can lower the cost of its structure.
 They can introduce new products by
partnering with other brands of Kraft
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