Marketing Essentials Report: Cadbury and Nestle Marketing Strategies

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This report provides a comprehensive overview of marketing essentials, focusing on the roles and responsibilities of marketing functions within an organization. It explores the interrelationship of marketing with the wider organizational context, highlighting the contributions of various departments like R&D, production, HR, finance, IT, sales, and customer service. The report then delves into the marketing mix of two distinct business entities, Cadbury and Nestle, comparing their product portfolios, pricing strategies, distribution channels, and promotional activities. Finally, it culminates in the development of a basic marketing plan, offering insights into strategic marketing decisions. The report aims to provide a clear understanding of marketing concepts and their practical application in the business world, using Cadbury and Nestle as examples.
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Marketing Essentials
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Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P1 Roles and responsibilities of marketing functions ................................................................3
P2 Interrelationship of marketing with wider organisational context ........................................6
TASK 2............................................................................................................................................8
P3 Marketing mix of two different business entities .................................................................8
TASK 3..........................................................................................................................................12
P4 Develop a basic marketing plan...........................................................................................12
CONCLUSION..............................................................................................................................16
REFERENCES..............................................................................................................................17
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INTRODUCTION
Marketing is one of the most important factor which is responsible for growth and vitality
of a business organisation. It helps individuals to get aware about products and services of the
company so as to increases sales and profitability in a certain time period. The marketing
department of organisations intend to gather information about customers' needs and wants and
tries to produce the same with an aim to give higher level of satisfaction to buyers. Along with
this, the main objective of marketing activities is to reach large group of customers by promoting
goods and services. It is one of the best way of improving brand image and increasing market
share of the company (Baker, 2016). Companies which are able to respond quickly towards
consumers' taste and preferences, driven up awareness, brand satisfaction as well as brand
loyalty. The present coursework is based upon Cadbury, it is one of the greatest supplier of
confectionery products. The main motive of the firm is to generate qualitative and healthy food
items for its customers. On the other hand, the report will define roles and responsibilities of
marketing functions and their its interrelationship with overall business organisation. Readers
will also come to know about marketing mix of two different business organisations and a basic
marketing plan.
TASK 1
P1 Roles and responsibilities of marketing functions
The term marketing captures lot of different activities which is associated with selling
products and services. In this, advertising, promotion, personal selling, public relations are the
most obvious marketing activities. Product design and innovation are the critical of task of
marketing which contributes in attaining goals and objectives of the company. Along with this,
marketing is becoming more crucial over the world as it can strive for developing products
which appeal to buyers and aims to increasingly crowded at global marketplace (Carvalho,
Estevinho and Santos, 2016).
Purpose of marketing: -
The prime objective of marketing is to recognise the product effectiveness by which
customer can take advantages. Such kind of awareness can be generated by marketers in
order to attain and retain customers for long term period.
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Another purpose of marketing is to create utility in terms of place, information, time and
possession utility. For instance – place utility can be done by moving products closure to
customers whereas time utility entails to make products available when it is required.
In context of society, marketing provides wide range of job opportunities to people so as
to improve their living standard. It will also contributes per capita income of the nation
which improves GDP rate (De Mauro, Greco and Grimaldi, 2016).
Marketing creates a competitive environment which supports lower prices of products so
that customers can easily consume them. It builds demand of goods which supports to
expand labour force. Furthermore, marketing also offers several tools and techniques which have ability to
deliver right messages to customers ; it contributes to change societal behaviour of in
correct manner.
There is defined different types of marketing functions, such are stated as under: -
(Source: What is Market and discuss the Main Functions of Marketing, 2011)
Illustration 1: Different marketing functions
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Financing – Finance is known as backbone of every business organisation as it is
responsible for completion of all business activities and operations in a system manner. Firms are
required to invest in marketing activities in order to obtain maximum returns and higher
profitability. Cadbury has sufficient financial sources which makes its marketing more attractive;
it prefers to promote itself on televisions, radios, social media channel, newspapers etc. If the
product starts growing and getting popularity, business organisations are tend to spend more and
more so as to make it available in all possible areas (Kapferer, 2017). They also offers schemes,
discounts and dimmish the cost of certain specific products.
Risk taking – Business risks are associated with uncertainty regrading market trends,
customers' preferences, changes in weather conditions and marketing of goods etc. It is important
for marketers to analyse future risks and uncertainties so as to develop marketing strategies and
policies accordingly. Along with this, risk bearing in marketing also refers with financial risk to
the owner of the organisation, as he is the person who held goods in order to fulfil future
demands. Risks can be also generate through fallen in prices, depreciation, fire, floods,
obsolescence, spoilage and further damages which can occurred while passage of time. On the
other hand, changes in trends and inventions can also be a risk which can affect the sales and
profitability of the firm.
Storing and warehousing – It consists holding of goods or services in the best possible
manner so as to provide them at the time of requirement. Cadbury has its own warehouses and
storing places that protects its products from any kind of losses and damages. Thus, it can be said
that an effective storing assists to preserve from deterioration as well as carrying out surplus for
future consumption (KAUR, 2015). In addition, Warehouses of Cadbury are located at those
places which make easier and cheaper the distribution process.
Transportation – It means physical movement of products from one place to another so
as to deliver them wherever it is required. For example- the production house of Cadbury of
situated only at few places but it serves across the world. Not only the finished goods but also
raw materials are transferred. Along with this, business firms assess their transportation needs on
the basis of different elements, such as- nature of goods, location, cost, interest of target
customers etc. and take any decision towards which form of transportation will be used to deliver
products in other areas.
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Product designing and development – Another marketing function is to design and
develop a new product so as to gain higher cutting edge. It is done so as to make a product more
effective and attractive that is able to attain and retain customers for long run. In this over-
dynamic environment, not only cost but also the design, shape, style, suitability etc. matters in
order to ton take imperative purchasing decisions. The core concept of product designing also
comprises to maintain quality standards of new products and services (McDonald and Wilson,
2016). In order to remain successful and competitive, Cadbury requires to create innovative and
qualitative which attracts numerous customers.
Marketing information system - In order to determine needs and wants of customers,
then assess the overall information so as to arrive at imperative business decisions; it results
creation of successful marketing campaigns. Along with this, analysing marketing information
can be done by different tools, although it also includes determination of strength and
weaknesses of an organisation and political-legal, socio-cultural data of the market. In addition,
such kind of information can be also used by market segmentation.
P2 Interrelationship of marketing with wider organisational context
In this competitive era, business organisations are required work with cooperation and
collaboration for managing healthy and positive environment. It can also improves the decision
making process of the company as if all departments work together will provide better
suggestions. A business enterprise managed and operated their business activities in different
divisions which help in giving effective services or facilities for achieving desired goals and
targets in proper manner (Mihart, 2012). Cadbury is the multinational confectionery firm which
provide dairy milk chocolate, cream egg etc. There are certain roles and responsibility of
marketing in relation to organisation that are given as under:
Following are the main departments of Cadbury: - Research and development department- It is one of the most important department of
Cadbury which assist in giving accurate data and information regarding market
requirements and demand. This department help in analysing current market situation and
condition in proper manner. So they will make that product which attract large number of
customers. Production and operation department- This division of Cadbury assist in manufacturing
high quality based products and services according to the demand and needs.
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Manufacturing department follows correct instruction of research and development
department to produce effective goods in easy manner. Such type of strategies and
policies provide effective management for quality based goods and services (Nguyen and
Simkin, 2012). Human resource department- This division of Cadbury assist in analysing and monitor
different business activities and functions in proper manner. They perform different
functions such as provide training and development, selection or recruitment, analysis
and monitoring and given experienced to employees. This department help in doing
marketing with the support of staff member who sell their products among customers.
The HR department of the organisation is responsible for recruiting, training and
development, performance management, compensation benefits, employee motivation
etc. In order to improve the performance level of individuals, HR managers provides
training and development assistance. In context of marketing, if workers have good
knowledge and communication skills then they will easily influence people to purchase
products and services. Finance department- This is one of the most confidential division of company which
manage and handle all budget and accounts in effective manner. Also this department
provide correct and appropriate funds properly. There are various financial activities
which are performed by finance division such as balance sheet, cash flow, management
of income and expenditure and also given cash reserve for operational and functional
activities. IT department- In current time period, company need to manage and control all
necessary functions which help in getting high business advantages in easy manner.
Modern technology help in giving various ideas and thoughts for improving different
quality of specific products and services. With the help of this division, they easily
promote their product to domestic as well as international customers (Ogunmokun and
Tang, 2012). With the assistance of this, company can easily improve their effective
goods and reducing additional wastage of material in appropriate manner. Sales department- This department assist in spreading proper data and information
regarding particular goods and their services for targetting buyers. It will help in
understanding market activities and functions which are related to organisational services
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and its standardised quality. There are various process such as promotional activities,
effective communication and advertising concept with customers for gaining high
advantages.
Customer services- This is last department of company which assist in providing face to
face services to their customers. An organisation employees require to be talented and
skilled who easily understand their needs and demand for serving better things. It us
necessary for staff member is to provide appropriate knowledge and information
regarding their products and goods in better manner (Papasolomou and Melanthiou,
2012). If company provide high quality based products so they can build strong relation
with their customers and also attract new buyers.
TASK 2
P3 Marketing mix of two different business entities
Marketing mix is an important tactics as well as a set of action which is used to put right
place at right time. It is an idea which comes to provide There are seven aspects of marketing
mix, such as – product, price, place, promotion, process, physical evidence and people.
Below describe marketing of two different business organisations: -
Basic Cadbury Nestle
Product Product portfolio of an organisation is
highly responsible for attracting
customers from target market. In
addition, the product range of
Cadbury is wide and can satisfy
customers' needs in the best possible
manner. The organisation has divided
its goods as per the demand of season
(Pappas, 2017).
Cadbury also introduce a new product
range on festive occasions, like
Christmas and Halloween. It has also
ventured into ice-cream and deserts
The main products of Nestle are
Beverages, Milk products, cookies,
chocolates etc. Nestle is one of the
leading food company which owns has
8000 brands and a wide range of
products. In addition, chocolates are the
most dominant factor for Nestle; its
popular products are – Munch, Polo,
Eclairs, Milky bars. Etc.
Recently, the firm has introduced
Alpino which is highly famous among
customers. The chocolate segment of
Nestle is star that assists to increase the
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segments so as to attain more and
more buyers. The product line of
Cadbury is- Bournville, Dairy Milk,
Caramel Cadbury Five star, Pretzel,
Oreo, Blackcurrent mini rolls, Brunch
Hazelnu, Crème Egg, Perk,
BournVita etc.
market share of the company.
Price The prices of Cadbury products are
based upon the quality of its products.
Some of its products are high prices,
like Bournville and Oreo
Chocolates whereas certain products
have lower prices.
The pricing strategy of Cadbury is
rely on market competition and
customers' demand; it also provides
discounting offers to people if they
purchase products in a bulk. In festive
seasons, Cadbury increase its prices
in order to gain higher profitability.
Thus it can said the organisation
follows well planned strategy of
fuelling volume growth by launching
smaller unit packs at lower prices
points.
Furthermore, prices of drinking
beverages of Cadbury are set by
keeping customers' in mind.
The price of Nestle products are depend
on the demand of the products. For
instance Nescafe and Maggi are
provided at lower prices.
Cadbury is the major competitor of
Nestle, in order to get higher
competitive edge, the firm adjusts its
prices as per its competitors. Along
with this, products' prices are also
based upon their quality and quantity, a
bit of skimming price will not cause the
customer to switch brands (Purvis,
2016).
Place In UK, Cadbury starts it operations in
1919 by importing chocolates. Now
Most of the sales and revenues of
Nestle come from Western countries. It
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the firm operates its functions overall
the world.
The organisation uses effective
distribution channels so as to serve its
products to their end users in a certain
time period. Basically, its chocolates
are easily available in both, urban and
rural areas. Along with this, the brand
has a worldwide presence and its
chocolates are served in almost 200
countries. There are several
franchises also has been established
which increases the market area of
the company. Once the chocolate
reaches in bulk, it is broken down as
follows.
Company >> C&F agent >>
Distributors >> Retailers >>
Consumers.
is almost 80% of its sales and
profitability. Thus, Nestle follows
FMCG channel for effective
distribution. In its stores, products are
come in bulk and sent to agents and
retailers.
Promotion In order to promote its products and
services over the world Cadbury uses
effective marketing strategies and
policies. In 2016, the brand has spent
$4 billions in advertising and
promotional activities. Along with
this, for Bournville it has kept a
specific tag line- “you don't buy
Bournville, you earn it”.
The company also has acquired
different brand ambassadors in order
Nestle always come up new and
innovative ideas as it needs to improve
the brand image of the company.
However, the promotional strategy of
the firm is based upon extensive
advertising and promotion
In this modern era, social media is one
the best way to promote and expand the
market area of the firm.
It is focused on managing good public
relations by fulfilling all CSR activities.
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to promote its products as it put a
great impact on customers' mind
(Rayasam and et. al., 2017). Cadbury
has not left any stones unturned to
promote itself.
Physical
evidence
It comprises the aspects that are
involved into a service so as to make
it more more tangible as well as
measurable. The brand has kept a
record of all customer experiences
that is done by questioning in order to
analyse the buying behaviour of
individuals. Along with this, its
managers also provide guidances
towards products which is mentioned
on pamphlets and brochures.
In terms of physical evidence, Nestle
provides overall information of its
products and services on its official
website. Here, it also present the
upcoming marketing plan and strategy.
Process It entails the manufacturing process
which is used by the firm so as to
make products and services more
effective and innovative. Cadbury
believes to make transparency of its
operational processes and procedures
in order to win customers trust and
faith on the brand.
For this purpose, it also organise
several programmes and activities to
interact with clients.
Nestle believes to reduce the production
time and cost; it helps to make products
and services more effective. Along with
this, it also provides online payment
facility to customers as they can easily
consume goods of the firm (Rayasam
and et. al., 2017.).
People As a customer oriented brand,
Cadbury relies to provide qualitative
and attractive products to customers
Employees and customers are one of
the most important part for Nestle. In
order to retain employees for long term
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so as to maintain good public
relations. It targets young people,
children in comparisons to others.
period, the firm emphasis on providing
them training and development
assistance; which improves the quality
standards of goods.
TASK 3
P4 Develop a basic marketing plan
Marketing plan is one of the most important factor that helps an organisation to attain
their goals and objectives. In this competitive environment business firms are required to take
important marketing decisions and such decisions can come out from interaction of people who
are liable for marketing responsibilities. In other words, marketing plan is a blueprint for doing
all business activities which are related with communication of information towards products and
services (Silberschatz, Galvin and Gagne, 2014). It is a detailed roadmap which draws marketing
strategies, activities, tactics and costs for a certain time of period. Marketing plan sets out
necessary actions that business need to accomplish one or more business goals and objectives. It
supports to build an interest of target and potential customers and then to persuade them to
purchase these products and services. The purpose of marketing plan is to coordinate business
goals, define marketing mix, create market segmentation and systematized marketing activities
so as to accomplish higher cutting edge.
Overview of the company – Cadbury is known as of the one of the leading confectionery
organisation which produce as well as distributes qualitative and branded products across 200
countries. Cadbury is a fourth largest supplier of chocolate and other similar products. Along
with this, the firm was founded in 1824 and there are over 100000 employees are currently
working with this.
Vision and mission of the company – The mission statement of Cadbury is to built
effective marketing reputation at marketplace on the basis of quality. The firm's commitment
towards continuous improvement in manufacturing ensure its growth and success in target
market. On the other hand, the vision statement of the company is intended to provide guide and
directions to employees like how they behave and perform at workplace (Titman, Keown and
Martin, 2017). The vision statement Cadbury is to working together in order to create brand
which people love. It revels an ideal brand image of the company for forthcoming period. In
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