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Acknowledgement submission form...........................................................................................i
Table of content..........................................................................................................................1
1.1 Introduction of Cadbury Company......................................................................................2
1.2 Strategic Analysis of Cadbury Company..........................................................................3-4
1.2.1 4Ps of Cadbury............................................................................................................3
1.2.1.1 Product................................................................................................................4
1.2.1.2 Price.....................................................................................................................4
1.2.1.3 Place....................................................................................................................4
1.2.1.4 Promotion............................................................................................................4
1.2.2 Ansoff Matrix...............................................................................................................5
1.2.3 SWOT Analysis............................................................................................................6
1.3 Strategic formulation of Cadbury Company.....................................................................7-8
1.4 Strategic implementation of Cadbury Company.............................................................9-10
1.5 Conclusion & Recommendation........................................................................................11
Reference............................................................................................................................12-14
Appendix one......................................................................................................................15-18
Appendix two...........................................................................................................................19
Appendix three.........................................................................................................................20
Appendix four..........................................................................................................................21
Cadbury Dairy Milk creates an enormous amount of happy feeling or emotions in a person
whenever they consume it. It stands for goodness because Cadbury gives values such as
bringing family togetherness to the personal enjoyment of an individual. The world has become
very synonymous with the word Cadbury. No matter where you go, no matter what you see,
no matter what you hear, Cadbury is the name people shouts when they are asked what
chocolates gives them the most beautiful inner feelings. Cadbury remains the top of everyones
wish list everyday just because of the taste that Cadbury gives the most delicious and best
tasting chocolate.
Cadbury had its very first own product produced in the year 1897. It was in the form of milk
chocolate bar, it is made by adding milk powder paste to the dark chocolate recipe of cocoa
mass, cocoa butter and sugar. Sadly, this product didnt reach great heights as it did not attract
a lot of interest among consumers. Those days, Swiss were the leading manufacturers in the
field of producing chocolates which was much better compared to other chocolate rivals. In the
year 1904, Mr George Cadbury developed a milk chocolate bar that had more milk compared
to other chocolates in the market. With time and consistency shown by Cadbury, the company
have created new different products to add to their collections of chocolates in the market. The
brands which was produced by Cadbury are the likes of Dairy Milk bars, Crunchie, Caramel,
Flake, Curly Wurly and Fudge.
1.2.1 4 Ps of Cadbury
1.2.1.1 A) Product
The objective of Cadbury in focusing on the products is to make every chocolate lovers to keep
a Dairy Milk product in their pockets. Keeping something sweet is a need that Cadbury are
trying to indulge in every persons mind and soul. Its nothing other than having a Dairy Milk
product, at times it just helps to cheer someones day regardless of where they are and what
they are doing. The feel good pure unadulterated milk chocolate which melts in the mouth
creates a very blissful after feelings. It is just not a chocolate product one buys and consumes
but it also gives a certain amount of delightful factor that one will feel after consuming it.
1.2.1.2 B) Price
Strategy used by Cadbury is market penetration pricing. They have undoubted used market
pricing by not reducing the price of their products instead what they did was in the market is
by introducing smaller packets of chocolates that value in a small amount of price. By offering
products at a low price, they have increase their penetration in the market. This strategy used
by them worked greatly as the sales of this smaller packaging products generated higher
revenue with low price. Thus, they have been smart enough is using this strategy to make
themselves known around the world.
1.2.1.3 C) Place
Cadbury products are all over the places wherever you go. Shopping malls, retail outlets, mini
markets and shops by the road sides actually sell Cadbury products because people loves it so
much and the craving for it is unbelievable. It is accessible everywhere because it will be easier
for people to purchase it and satisfy their cravings. Besides that, book outlets like MPH and
Borders actually does this as well because when people came by to get stuffs or just sits there
to read, they would have something munch on.
!.2.1.4 D) Promotion
Cadbury does sampling and give-aways promotion on their new products by giving out samples
at shopping malls, cafes and etc. For example, I remember once when I was in the shopping
mall where I went by to get some stuffs and Cadbury was giving out free new chocolates
product for tasting. This advertising move being used by them is essential in making a name
for the product brand. Moreover, the company have been making aggressive moves in the
market by advertising and doing promotions all over the place. Cadbury spends
their
promotion budget by the sales of the products. For example, about 13-14% of sales revenue
goes to advertising. Largely, this product is well known in the market and they are just making
good progress in expanding their brand.
Firstly, I would like to discuss on market penetration. This is a move where the company
tries to achieve growth by using existing products that they have in the current market to try
and increase its share. The current product that is penetrating the market is Brunchbar. This
product is currently not doing so well as it is less popular among Cadbury lovers. People would
not buy it as it doesnt taste that good and many people dislikes it. Therefore, Cadbury should
look very closely into this picture and make necessary alterations needed to make
improvements. Secondly, I would like to discuss on product development. Product
development is when the company targets a new product in their current market segment. For
Cadbury to use this method, they have to make sure that their previous unsuccessful product
doesnt affect their plans to create a new product. This can be a very successful method to use
in the near future.
Thirdly, is the method of market development. This happens when Cadbury seeks growth
in the market by targeting their existing product and placing them in new markets. Therefore,
I feel that this move will be highly successful as they may have aimed their previous products
in the wrong market that gives bad return. Lastly, if Cadbury use diversification by aiming a
new product in a new market, it can be highly successful as Cadbury may have targeted wrong
product in other markets and this could give people in the new market a wrong impression on
their previous product.
Weaknesses
Opportunities
Threats
Competitor intelligence is to identify the competitors surrounding the market who are
more or less selling the same kind of products, target profilling of several competitors,
benchmarking and making analysis on a timely basis. Before a new product is distributed in
the market for consumers to try it, it is important for Cadbury to gain the support of the trade
customers. Hereby, every trade customers which are also known as retailers will view it as
helpful in encouraging consumers to visit their respective shops. This make sense as if the
products had failed to give any interest to the retailers and distributors, the costs of investing
in Cadbury products would not have met and they would not have stocked the products in the
first place. This is largely due to the commitment shown by Cadbury in conducting one-to-one
meetings with over 70 key trade customers to expand the brand. This method helped Cadbury
to build awareness and commitment for the launching and receiving significant orders for instore displays and merchandising of the product.
Customer loyalty tactics is to improve customer loyalty to those who loved consuming
Cadbury products. Traditionally, as always new products are launched in one region first to
know the products success before moving on to other region over a period of time. For an
example, Time Out was launched this way as it was a genuine success. The marketing strategies
used to market the products in the market is good enough because it attacts the right people
who have shown great loyalty towards the product at the right time and at a right price. All this
strategies accounts all the overall factors in promoting the products this way as it pays close
7
attention of the markets demands and expectation of the consumers. In my point of view, more
efforts are needed to make better advertising of the brand like some different kind of unique
promotional method to pull better loyalty from consumers and to formulate a stronger branding
name in the market globally.
Cadbury actually rolled out a marketing strategy to enhance the product awareness in
order to make good connections of the brand marketing to their products. The gigantic Cadbury
Daily Milk has formulated a 10-year brand communications strategy called Joyville. The
revamped foundation strategy aims to keep track on the levels of brand engagement enjoyed
with past ads and the same time focusing more on the core truth of the product(Matthew
Williams, Marketing Activation Director at Dairy Milk). Joyville is an idea which connects the
products as much as possible as it can be with its brand. It aims at capturing the attentions of
the public and huge companies worldwide just the way like how Facebook company have
captured the attention of the people globally. As we all are aware that Dairy Milk is Cadburys
main branding, Joyville if successful, could somehow make its move in extending to other
different brands in their portfolio.
Innovation of products is also one marketing strategy that can be used by Cadbury to maintain
and enhance its brand and name in the fast growing market place. Innovation of products simply
means that better creation on the present products in terms of taste and flavour that can attract
the attention of consumers. New product doesnt always carries luck when launched in a new
place or even by being in the right market. For an example, industries such as fast growing
industries and high-end technology achieved better valuable product performance on average
(Cooper 1993). A stand of intent has to be made, however, product strategies implemented will
have an effect on performance. Cadburys direction and commitment for all the new product
effort will all help in determining a good performance. A strategy-performance is important to
the management of the companys new products implementation. Through innovation,
Cadbury is able to keep its status in the foreign and local industry. To assist the company to
overcome its many problems and threats that they will face from other competitors, innovating
new chocolates with better taste will definitely help the company. Moreover, innovations will
help to attract clients and will show drastic resurge in purchasing of chocolates and other
similar products.
1.5 Conclusion
10
To conclude, Cadbury have done remarkably well in penetrating their value for money products
globally. Its a very extreme unique brand of a product to have made their way into peoples
heart. Everyone from young kids to adults to old people loves Cadbury products very much.
The company understands the demand of the consumers and have maintain the quality of the
product professionally. Besides that, the pricing of Cadbury is a key factor as it is very
affordable to consume. Consumers find it cheap and reasonable. Not many product delivers the
kind of service that Cadbury gives to people.
Recommendation
Cadbury should maintain their dominance in the market
Organize more events for children to instilled ideas in them
Do more charity service for the people
Use the Internet source more seriously in promoting the products (Facebook, Google
etc) and radio channels as this kind of advertising does not generate a lot of money
Colourized the packaging in a more attractive manner
Create more different kinds of flavours and different shapes
Cadbury need to ensure that their products are safe to consume always. Any faulty
products should be discarded in advance
Reference
11
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12
Available from:
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Ansoff
Matrix
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Available
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Chocolate.
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7 April 2014 ]
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Available
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http://www.mbaskool.com/brandguide/food-and-beverages/3350-cadbury.html. [ 7
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13
Business case studies. Cadbury Schweppesh launching a new product in the market.
Businesscasestudies.com. Available from: http://businesscasestudies.co.uk/cadburyschweppes/launching-a-new-product-into-a-developed-market/the-launchstrategy.html#axzz319Msjlwa. [8 April 2014 ]
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(NITINSINGHAL
14
CADBURYS APPENDIXES
Appendix 1 ( 4Ps of Cadbury )
Product
15
Price
16
Place
17
Promotion
18
19
20
21