Marketing assignment essay help study on: Cad bury chocolate marketer’s analysis
Introduction
Cadbury, the British confectionary is now owned by Krafts food and is one of the major chocolate makers in the global front. They have about 8 factories in UK (Cadbury, 2012). The importance of market research, segmentation and marketing strategy can never be overstated even in the case of a confectionary product. This is a report that analyses on the internal and external environmental factors that influence the marketing decisions taken by Cadbury and proposes criteria for segmentation of their various products. This report also proposes a plan for positioning the new “on the go” chocolate bar.
Macro Environmental Analysis
Chocolates still play an important role in the snacking experience of UK irrespective of the various concerns about the prices. Here are some of the major reasons that should be concentrated on while designing a marketing strategy. Consumer confidence is highly significant in the markets but do not impact the confectionary industry. In UK the conception of the chocolates tend to be highly seasonal in nature. The first quarter of the year is where most of the sales happen especially due to their various festivals. This is a trend that has to be broken away and this will ensure that Cadburys sales will boost up. Obesity in increasing more than ever in UK and this has to be tackled with care. This means that the manufacturers and the marketing people have to concentrate on polishing credentials in relation to health. The political, legal, socio-cultural, technological and economic factors are ever changing (Mintel Group, 2012).
On analysing the political environment it can be said liberalisation has increased and the sales of Cadburys tend to get affected in UK. The changes in the policies have brought in new players in to the market. UK is only emerging from the financial crisis now and this means that Cadburys have to be sensitive to the requirements of the customers now. On the legal front there are a high range of requirements that is set by Food Safety Bill and these bills are not only to be adhered to but also to be revealed to the customers that their health requirements are taken care of. On the social front people tend to consume sweets during Christmas till Easter in UK and it is also the peak season as far as a confectioner is concerned. The life style of people is changing and they have started to have an aversion towards chocolates because of the increasing awareness about the importance of health and fitness.
Technology now rests both in the hands of the customers and the manufacturer. There is increasing amount of internet usage and these offer opportunities for web marketing and helps in receiving instant responses from customers. Communication is no longer restricted to one way where advertisements are concerned. People are highly concerned about the environment and usage of environment friendly packages.
Micro analysis
Cadbury is now financially safe with dedicated employees and belong to the Kraft’s Food Chain. There is a well established connection between the suppliers and Cadburys and they help them with adequate resources. Cadbury is now updated to modern technologies and is accompanied by technology and efficient workforce in every step if its venture.
SWOT Analysis
| StrengthCadbury is a Well established brad and is recognized by most chocolate lovers in the worldExtremely good brand image
Belongs to Kraft’s now and increases its perception values |
WeaknessReturn on investment is their main strategy now and there is no much concentration on innovation now.Large group size now in comparison to their early existence and that mean more time for decision making. |
| OpportunitiesManufacturing new productsExpanding
Economies of scale Innovation |
ThreatsPrice sensitivityIncreasing competition
Seasonal consumption of sweets Reducing consumers due to health reasons
|
Porters Five Force
The Supplier Power
The operations of Cadbury are well supported by the suppliers whom they are in contract with. The company shares an extremely good connection with the suppliers and are well appreciated for that. Since the company and the suppliers work on a mutual basis, it can be said that the company and the suppliers have equal amount of power on each other.
Barriers to Entry
Cadbury as a company is well known throughout the world and hence it has trust of many. There are opportunities for competitors to rise. But it is unusual for them to rise up to the level of the Cadbury in terms of its acceptability, quality and affordable prices. The threat from new entrants is lower in the case of Cadbury.
Power of the buyers
The buyers are highly health conscious now and tend to demand health products. But irrespective of this people tend to be sensitive to prices and switch to products that are offered at a cheaper cost by the competitors. This in turn influences Cadbury to reduce the cost of the chocolates offered. The bargaining power of the customers is high
Threat from the Competitors
There are many competitors for Cadbury and they tend to capture the same target market as that of Cadbury. They do this on the basis of changing the taste and customers requirements. The companies are now involved in making products that are extremely innovative and are hard to be worked with.
Threats for substitutes
Brand image that is created by Cadburys is extremely strong and customers are attracted to the brand for its chocolates. There are sweets of different kinds but chocolate still remains the most preferred sweet. But the existence of the other substitutes in the market cannot be underestimated.
All the mentioned issues above can be solved with the help of proper marketing skills which is also the necessity of the hour where Cadbury is concerned.
Segmentation criteria
There was no segmentation in the case of Cadbury initially. But for the time time being it seems best for Cadbury to adapt a heterogeneous segment and to concentrate on the basis of the reasons why they buy chocolates. Market segmentation can be defined into many ways and some of them are demographic variables. Other factors that influence their decisions are lifestyle of consumers, the occasions of the purchase and the benefits that people would get out of buying that particular product. All these factors are to be considered when a product is being made by Cadbury.
Segmentation is also done by Cadbury on the basis of behavioural segmentation. Following are the segments that are used by Cadbury.
Break segment: products that can be snatched and consumed when there is a break from work of office or studies. These products can be consumed in a daily basis. Some of the examples of these products are Cadbury’s TimeOut and snack range.
Impulse Segment: the products in this category can be purchased impulsively for instant consumption. These products are most advertised and are made available everywhere. Some of the examples for these products include Mori, Twirl, Crunchie, Starbar, Diarymilk and Fuse.
Take home segment: the products in these segments can be taken home and used at any further point of time and people tend to purchase it when the need arises
Gift segment: This is a segment where people purchase boxes of chocolate and other products for giving away gifts during special occasions and others festivals (Cadbury, n.d)
Demographical segmentation is also used by Cadbury. Age is a dominant factor used for segmentation in the case of Cadbury. The target segment for Cadbury is from 5-60. But even kids lesser than the age of five tends to consume Cadbury’s. One of the reasons why people in this age group are targeted is because of the nature of the product that is sold by them. Chocolates are equally liked by people of every age.
Among this target segment they further divides the targeted segment on the basis of the occasions that they tend to consume chocolates. This will further include everyone in their segment producing variety of chocolates as per their requirements. They also try and include obese people in their target and bring out specialised products for them. Products are manufactured on the basis of the perceived preferences.
An example for a product that is made available for kids are milk chocolate covered with nuts. The kids are further attracted towards the brand for the superheroes that are used for wrapping and as gifts in the packages. Brown chocolate and nuts with lower calories are provided for middle age group because of their diet conscious nature and old age targets are provided with white chocolate and nuts (Cadbury, 2012).
Targeting Strategy
The targeted segment can be divided into three groups as far as Cadbury is concerned and they are 5-10, 11-20 and 21-60. The segmentation strategy used here is demographical segmentation and the major target chosen here primarily is the segment from 21-60. One of the major reasons for this target is the number of people from this target range are numerous and independent. They can make impulse decisions and purchase the chocolate and not ask for permission from their parents. The usage of advertisements will be differentiated in nature depicting models and contexts that people in this age group are bound to be involved in. The target segment concentrated on will be in age limit of 21-60. But the consumption of these chocolates will not be limited to this segment and others are also encouraged to consume the chocolate bar. This segment is chosen on the basis of the ingredients of the chocolate products that tend to be more appealing to 21-60 age groups.
Influence of buyer behaviour on marketing strategies
Buyer behaviour is highly dependent on many issues including the internal and the external factors. There are influencing factors behind every purchase made by the customers and these influencing factors can be used positively by the marketers in increasing the attractiveness of their products. Analysing these behaviours is what helps Cadbury to design the best of positioning strategies to attract more customers to the brand. Some of the factors that have higher had in the buyer behaviour now are online feedback on the products, friends and families opinion on the product, the cost of the product and the requirement for consuming or not consuming the product. The range of cultural factors, social factors, personal factors and psychological factors impact the decisions that are taken by buyers. It is also highly critical for the marketer to decode these influences segment and target them accordingly to enhance the chances of them making a favourable decision (East, 2004).
Example: some of the qualities that are portrayed by the brand personality of Cadburys are fun loving, down to earth, reliable, confident, indulgent and friendly. Cadbury tends to appeal to its users on the basis of buyers behaviours and their personality. There always tend to be synchronisation between the brand personality and the buyer personality. Here are some of the buyer behaviours personified and targeted by Cadbury
- Cadburys Diary milk has the personality of the rebel leader and appeals to youthful exuberance and rebelliousness
- 5 Star depicts a male personality and reliability, and is the champion companion
- Perk has personality of the girl next door and the main factors of its personality includes warm, perky, naughty and accessible.
Positioning Strategies
Product: The product that is discussed here is a chocolate bar which is manufactured with different combinations including the 50% cocoa, 60% cocoa and 70% cocoa. This means that the products can be consumed by people who are calories conscious, has a taste for chocolate and has sweet tooth. The product is of high quality and can be used for other direct consumption and baking purposes as well. This helps in including people from various demographics in to the superset of the consumers.
Price: The price range of this product is slightly higher that its peer products. The reason behind it is that the product is of high quality and is healthy in nature. Cadbury believes in attracting people towards its products for the brand image that they have build for them self including the reliability, friendly nature and the grandeur its products have by default.
Promotion: Web marketing, social marketing and bill boards will be the main ingredients for the new product. Cadbury is highly active on face book and twitter and believes in giving opportunities to its users to speak. The idea is to appeal to targets on a timely basis. It is targeting the middle age group initially and then the kids. We plan to capture the market in segments on a timely basis in the case of this product instead of capturing the whole market instantly. Cadbury Gems another product in the Cadbury tree is also using the same strategy to attract elders after being preferred by kids, there will be competitions for public participation to enhance the perceived image of the product. The package will be purple and yellow in colour darkening according to the cocoa content in the product.
Place: The brand will be released in UK. These products will reach the hand of retailers and other shopkeepers. These are places where people tend to shop the most. People who come to malls and shops would either be there for serious shopping or for having fun. Cadbury will appeal to both categories of people as an instant rejuvenator and as a champion companion. These places help in a lot of impulse purchase based on the tiredness and the instant craving for chocolate. There will also be an option of direct purchase and home delivery in the case of Cadburys when people are ready to make bulk purchase. This is for those people who would like to resale or supply Cadburys in their partners and will help in increasing the supplier base. The suppliers of Cadbury are extremely loyal to Cadbury and keep its chocolates for sales on the counter where it gets the maximum attention.
Conclusion
It is important to be extremely careful about the marketing strategy where umbrella branding is concerned. Marketing strategy has in it to make or fail a product and hence it is extremely necessary to have an innovative marketing strategy in hand. Marketing acts as a link between the product and the consumer and hence it should be given ultimate preference along with the quality of the product. Cadbury has also managed to become this famous because of the quality of their products and the marketing strategies adapted by them. If you want Marketing Essay writing Assignment Help study samples to help you write professional custom essay’s and essay writing help.
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