Cadbury: Segmentation, Targeting, and Positioning Analysis

This report provides an in-depth analysis of Cadbury's Segmentation, Targeting, and Positioning (STP) strategy within the confectionery industry. The report begins with an executive summary, followed by an introduction that outlines the research background, organizational overview of Cadbury, research significance, problem statement, research aims and objectives, and research questions. A comprehensive literature review explores the theoretical foundations of STP and its application in marketing. The methodology section details the research approach, including secondary research and an interpretivist research philosophy. The results and discussion section analyzes secondary data to assess Cadbury's STP approach. The report concludes with recommendations and reflections on alternative research methodologies. The analysis examines Cadbury's segmentation based on demographic, psychographic, and behavioral factors, its targeting of various consumer segments, and its positioning as a brand for happy occasions. The report highlights the importance of STP in improving business performance by increasing customer base, reducing marketing costs, and enhancing brand awareness. Overall, the report aims to identify how Cadbury utilizes STP to achieve its marketing goals and improve its business performance within the competitive confectionery market.

Marketing Segmentation,
Targeting and Positioning

Executive Summary
Main purpose of doping this dissertation is to identify the importance of Segmentation,
Targeting and positioning strategy for improving business performance of an organisation within
confectionery industry. For accomplishing this purpose, there are different activities or tasks
used by researcher. Introduction is determined as a first activity that was done by describing
background and overview of the study, developing aim and objectives, identifying research gap
etc. These supported researcher in completion of introduction activity in systematic manner.
Literature review is another part of dissertation that was completed by using secondary sources
including books, magazines, articles, publication research and many others relevant to the topic.
This part of dissertation supported investigator in fulfilment of research gap or filling of missing
data through research questions. In this part, number of authors provided their opinion that helps
investigator in attainment of research aim as well as objectives also. Research methodology is
important part of dissertation that was completed with the use of different methods. These are
secondary research, interpretivisim research philosophy, inductive approach etc. These helped
researcher in gathering of secondary data about the segmentation, targeting and positioning.
Results and discussion is another part that was done by analysing secondary information
collected for literature review. This section helped in analysing and interpreting of secondary
information about the current topic in systematic manner. Conclusion and recommendations are
consider last activity of dissertation that were done by describing information or data of each
activity in short and clear manner. In recommendation, number of suggestions were given in
improvement of research topic.

Table of Contents
Executive Summary ........................................................................................................................2
Acknowledgement ..........................................................................................................................5
TITLE .............................................................................................................................................6
CHAPTER 1: INTRODUCTION ...................................................................................................6
Background to the research ........................................................................................................6
Organisational background.........................................................................................................7
Significance of the research .......................................................................................................7
Statement of the problem............................................................................................................8
Research aim and objectives.......................................................................................................9
Research questions .....................................................................................................................9
Structure of the dissertation........................................................................................................9
LITERATURE REVIEW .............................................................................................................12
RESEARCH METHODOLOGY ..................................................................................................24
Results and Discussion .................................................................................................................30
Conclusion and recommendations.................................................................................................39
Reflection and alternative research methodology..........................................................................43
REFERENCES .............................................................................................................................45

Acknowledgement
I would like to demonstrate my sincere gratitude towards my committee and supervisor
who have helped me throughout the entire dissertation and also recognize the guidance which
has been provided by them. I personally look up to the learning chances which were given to me
in the development of this dissertation.
It is surely a fact that this dissertation could not have been done without help of my
family, supervisors and friends. The research dissertation done on “To identify the importance of
Segmentation, Targeting and positioning strategy for improving business performance of an
organisation within confectionery industry. A study on Cadbury”. It is surely a broad topic as
well as would not be completed with continuous support and input of many government and
corporate officials which are linked to the field of confectionery industry.
Thank-you!! I genuinely acknowledge the bring up on this important project.
Sincerely,
XYZ

TITLE
How important is the Segmentation, Targeting and positioning strategy for a business in
the confectionery industry? A case study of Cadbury.
CHAPTER 1: INTRODUCTION
Background to the research
Segmentation, targeting and positioning are interconnected marketing process that will
help an organisation in attraction of more customers towards brand. STP is a marketing process
progressively explains the marketing strategy decisions for an organisation. Marketing
segmentation introduces to the process of splitting market into small groups with related product
requirements or identifiable characteristic, for the motive of choosing appropriate target markets.
Targeting refers to an organization’s proactive choice of a appropriate market segments with the
purpose of heavily emphasising the company’s marketing offers as well as activities towards this
group of similar consumers (Akbar and et. al., 2017). Positioning introduces to the target
market's perception towards the product's key advantages and features, in relation to the
offerings of competitive items. There are different importance of segmentation, targeting and
positioning strategies such as: makes marketing efforts more economic and efficient, facilitates
proper choice of target market, assist crystallizes the requirements of target market as well as
ellicit more predictable responses from them. Therefore, STP is important and essential strategies
of marketing that supports company by increasing customer base, reducing marketing cost,
increasing sales, improving brand image and enhancing brand awareness among customers. All
these will assist company in attainment of competitive advantages as well as achievement of long
term goals and objectives in less period of time. For this dissertation Cadbury is a chosen British
multinational confectionery company that specialise in selling of chocolates to the customers.
USP of Cadbury is one of the largest and most trusted chocolate brand in all over the world.
The segmentation of Cadbury products is supported on mix of psychographic,
demographic and behavioural factors; for example on the basis of occasions and Income.
Segmentation of Cadbury is belongs with people who purchase chocolates for eating or gifting.
Target market of Cadbury are children and families who belongs to lower, middle and upper
middle class (Ali and Kaldeen, 2017). Positioning of Cadbury, it is a sweet for happy occasions
or auspicious beginnings.

Organisational background
Cadbury is a chosen organisation for this dissertation. It is a British multinational
confectionery organisation that was founded in 1824 by John Cadbury. Confectionery refers to
the art of making confections, which are food products that are rich in carbohydrates and sugar.
Cadbury is the second biggest confectionery organisation in the world after Mars. Cadbury in
globally headquartered in Uxbridge, west London as well as operates in different countries
worldwide. Company is well known for its Dairy milk chocolates, Creme Egg and roses
selection box, as well as many other confectionery items. Portfolio of Cadbury products are
divided into different types including Temptations, Oreo, Dairy milk, Bournvita, Perk, 5 Star,
Gems etc. All these are main products produced by company to their customers.
Segmentation, targetting and positioning abbreviated as STP is a common tool in
marketing which is used to categorise and target prospective customers for a business. Cadbury
which is a renowned name in the confectionery business have been employing this marketing
tool for better sales. Segmentation is the first step which involves categorising people on the
basis of their similar characteristics. The major segments which are formed by Cadbury are on
the basis of occasions & income. All the consumers are targetted such as Cadbury Temptation
are formed for high end consumers where are dairy milk are for lower end of income. Targetting
stage focuses on evaluating the different consumers segments so that most profitable target
segments are identified (Dangelico and Vocalelli, 2017). This mega manufacturer targets all the
people belonging in the age group of 5-50 years who like eating chocolates. All the consumers
belonging to different income segments are targetted such as Cadbury Temptation are formed for
high end consumers where are dairy milk are for lower end of income. Positioning refers to
formation of mental models which help in differentiating a brand from its competitors. A
positioning is successful when an intended message when it is perceived appropriately by the
target audience. Cadbury positions itself as a chocolate which is meant for all irrespective of
their ages. The use of purple packaging have been a distinct recognition of sweetness and trust.
Significance of the research
This research is important at personal as well as academic level. At personal level this
research helps investigator by improving their research skills including data collection, data
analysis, literature review, time management and many others. All these skills helps researcher in
completion of full dissertation timely and systematically. At academic level, this research helps

students by enhancing their knowledge about the importance of segmentation, targeting and
positioning for an organisation. STP is an important and significant marketing process for
company because it will support them in increment of customer base, reduction of marketing
cost, increment in sales etc. If this research is publish will support organisation, industry or
person by increasing their awareness regarding the segmentation, targeting and positioning and
its importance in context of an organisation. Along with this, current investigation is significant
in attainment of research aim and objectives (Gachimu and Njuguna, 2017).
Main rationale behind doing this investigation is to identify the significance of
segmentation, targeting and positioning in enhancement of business performance. With the help
of this research, researcher can easily basis understand about the Segmentation, Targeting and
positioning strategy in context of an organisation. This study also support investigator in
identification of the significance of Segmentation, Targeting and positioning strategy in
improving business performance of Cadbury. This investigation will also help investigator in
identifying of dependence of targeting and positioning over activity of segmentation in effective
implementation of STP (Kirova, 2017).
Statement of the problem
Segmentation, targeting and positioning are important strategies of marketing for
company. If an organisation not follow this, they may face certain problems such as lack of
customer base, higher cost of marketing, decreased business success etc. All these are major
issues faced by company if they not follow STP. There are certain challenges of segmentation for
business such as forgetting about individuality, sending the wring message, ignoring potential
audience and many other. All these are major challenges that will negatively impact on business
performance. There are also some problems related within targeting strategy including time-
consuming, considerations, expensive and omission of other customers. Along with this, there
are some ways to determine if positioning of company works. These are lack of quality inbound
leads, decrease in proposal win rate and so on. This create more difficulties for company in
improvement of its performance and productivity level (Moges, 2017).

Research aim and objectives
Research aim and objectives are important part of dissertation because each activity of
study is depend on aim and objectives. Research aim expresses the aspiration or an intention of
the study. It summarise in a single sentence that support in achievement of research objectives.
Research objectives explains what researcher expect to accomplish by a project. Research
objectives will be frame with the help of dependent and independent variable. Within an
investigation business performance is dependent variable because it is dependent on
segmentation, targeting and positioning strategies (Mokaya, Kanyagia and M’Nchebere, 2017).
There is aim and objectives of the study which are:
Research aim:
Main aim of this dissertation is “To identify the importance of Segmentation, Targeting
and positioning strategy for improving business performance of an organisation within
confectionery industry. A case study of Cadbury.
Research objectives:
 To develop basis understanding about the Segmentation, Targeting and positioning
strategy in context of an organisation.
 To ascertain the dependence of targeting and positioning over activity of segmentation in
effective implementation of Segmentation, Targeting and positioning.
 To identify the significance of Segmentation, Targeting and positioning strategy in
improving business performance of Cadbury.
Research questions
 Explain about the about the Segmentation, Targeting and positioning strategy in context
of an organisation?
 What will be the dependence of targeting and positioning over activity of segmentation in
effective implementation of Segmentation, Targeting and positioning?
 How Segmentation, Targeting and positioning strategies help Cadbury in improving its
business performance within confectionery industry?
Structure of the dissertation
This is an essential part because it helps reader in identification of requirements regarding
the chapters that helps in completion of full dissertation. There are some important and useful

chapters for completing this dissertation. These chapters will be defined as below apart from
their purpose in completion of research. These are:
Chapter 1: Introduction: This is a first activity of dissertation that consists of different elements
including, background of the study, overview of selected organisation, research aim and
objectives, research questions, significance of the study, statement of the problem etc. All theses
are major parts for completing first activity which is called Introduction (Schlegelmilch, 2016).
Chapter 2: Literature review: This chapter of dissertation helps researcher in gathering of
secondary information from secondary sources i.e. magazines, books, articles etc. In this part of
dissertation, authors have to create critical evaluation about the research questions. Main purpose
of literature review is finding of research gap in previous studies. In this section, different
authors provided their opinion about the topic.
Chapter 3: Research methodology: This chapter is useful in Identifying of effectiveness of
research methods according to the research title. This section consist of research philosophy,
research approach, research strategies, research choice, time horizon etc. All these are useful part
of research onion framework that will be applied within an investigation for achieving research
aim and objectives. Main purpose of this research methodology is to provide reliable data to the
researcher as it will helps them in completion of dissertation successfully. Current study is based
on secondary research and for collecting secondary data, there are number of sources that will be
followed by investigator such as articles, magazines, publication research, journals, books etc.
All these are useful sources in gathering of secondary information accurately and systematically
(Takata, 2016).
Chapter 4: Results and Discussion: This chapter helps in analysing of data effectively.
According to the current dissertation, secondary data has been collected for literature review.
This section of study helps in analysing and discussing of secondary information collected for
literature review from journals, books, articles and many other sources. This part of the
dissertation supports in attaining of valid outcomes as well as achievement of research aim and
objectives successfully.
Chapter 5: Conclusion and Recommendations: This is a last activity of dissertation that helps
reader in identifying of achievement of research aim and objectives. In conclusion, researcher
will explain information of each chapter in short and clear manner. In recommendations, some

suggestions will be provided to the company or industry in improvement of its business growth
or success (Winston and Weinstein, 2016).
Summary of the chapter:
Introduction is an important chapter because it helps in developing of research aim and
objectives. With the help of this chapter, researcher identified the importance of research. This is
essential in identification of main purpose behind doing this investigation. Along with this,
introduction part of dissertation is essential in preparing of another chapters such as literature
review, research methodology, data analysis and findings, conclusion and recommendations.
Therefore, introduction is important in identifying of overview and background of the study.

LITERATURE REVIEW
Literature review is the process of gathering secondary data from various sources which
are consider publication research, journals, books, magazines etc. All these are useful sources
and helps investigator in collecting of secondary information regarding the segmentation,
targeting and positioning. In this part of the dissertation, different authors have to provided their
view regarding the research aim and objectives. Main purpose of literature review is to find out
research gap in previous studies. In current investigation, main research gap is the importance of
Segmentation, Targeting and positioning strategy for improving business performance of an
organisation within confectionery industry. In previous studies, there were data available about
the Segmentation, Targeting and positioning strategy but there were missing or lack information
regarding its importance in improvement of business performance. Research questions will be
used by investigator for fulfilling research gaps and attainment of research aim and objectives.
Therefore, research questions of the current investigation will be explained as below for fulfilling
missing data. These are:
Explain about the about the Segmentation, Targeting and positioning strategy in context of an
organisation?
According to Lapaas, (2020), marketing management includes different concepts such as
segmentation, targeting and positioning which are parallel to each other but equally important for
an organisation to understand their importance while framing an effective marketing strategy.
Segmentation is defined as the division of population on the basis of their different attributes
such as taste and preferences, income level, caste, religion etc. It makes easy for an organisation
to identify their targeted customers according to their list of offerings which is known as
targeting. Targeting can be called as sub part of segmentation that plays a critical role in their
marketing mix. After segmenting the population on the basis of their needs and preferences and
other attributes, an organisation tries to identifies part of population that prefers to buy their
offered products and target them by using different marketing channels. The last concept of STP
is positioning in which an organisation ensures that a right message must be conveyed to their
targeted audience by placing their products at right market. It facilitates their targeted customers
to understand the benefits they can receive if buy company’s products and services. This will
increase the chances of achieving long term sustainability of their products and services in the
competitive market.

According to Bhasin 2019, segmentation of Cadbury products is combined basis of
demographics, behavioural and psychophysics which includes income and occasions. The
products and services offered by Cadbury are mostly based on production capacity, pricing of
various items, packaging designs, celebrity endorsements and many other factors. Consumption
of Cadbury products are from all age groups but distinguished their products to specific class of
consumer groups. For an instance, Cadbury Temptation and Bourneville are produced with an
objective of attracting higher income group of people who are willing to spend more.
Bourneville is position as best dark chocolate among rivals products which is currently promoted
by brand as category innovator. This chocolate is positioned as a chocolate for people who lives
abroad and searching for an international taste of chocolate.
Market segmentation is the effective process of subdividing or separating a market into
various subsets of clients that behave within the same way as well as have similar requirements.
It is completed in order to adjust marketing program to identify customer differences. There are
different purpose of segmentation such as improving branding, increasing sales, better
advertising and better distribution. It can be completed on the basis of certain variables such as
geographic, behavioural, demographic and psychographic. Cadbury Bournville has segmented or
classified the entire market that was based on three parameters such as demographic: Age: 12-19
years, 20-34 years, psychographic: Socio-economic classification: A1, A2, B1, B2, C, D, E1, E2
and behavioural: Occasionally, medium usage rate, quality service, strong brand loyalty.
A target market refers to the group of clients towards which an organisation has decided
to goal its market efforts as well as ultimately its merchandise. Target customers of Cadbury
Bournville is not all customers, they are those who love chocolates. The Cadbury Bournville is
intending the 20 to 30 year old SEC A segment.
Positioning introduces to client's perception of the place a brand or product occupies
within a market segment. In certain market, position is accomplished by associating the
advantages of a brand with the life style or wants of the segments. Positioning of an organisation
involves the differentiation of the business's offerings from the rivalry by developing or implying
a comparison in way of particular attributes. Positioning refers to the marketing idea that outlines
what an organisation should do to market its services or products to its clients. In positioning,
marketing department of an organisation develops an effective image for the brand or product