Cadbury Chocolate Company Marketing Strategy - Research Paper Example

 Cadbury Chocolate Company Marketing Strategy Executive Summary Cadbury Chocolate Company is one of the reputed organizations but due to various marketing issues, the brand image and reputation in the market got affected. Along with this, the current position and situation of the organization of Cadbury Chocolate is analyzed with the help of SWOT analysis. Along with this, varied strategic alternatives are also presented in order to solve the above presented issues so as to amplify the brand value and portfolio in the market. Other than this, marketing mix strategies are also presented in order to implement the alternatives in an effective way that may increase the brand image. Introduction Brief history of the Cadbury Company Cadbury Chocolate is recognized as one of the British multinational organization operating in the segment of confectionary, with headquartered in Uxbridge of London. After establishment in the year 1824, the organization of Cadbury positioned itself as the market leader in the segment of diary holding almost 80 percent of market share and considerable brand image. This is mainly due to the presence of wide range of chocolate products such as diary milk, perk, 5 star, éclairs, temptations, gems and many others. Thus, due to the presence of a wide range of product lines, the organization of Cadbury enhanced its revenue by £11,346,002,000 and net income by £447,545,760. Due to which, the reputation and brand value of the organization of Cadbury amplified by a significant extent that may improve its reliability and loyalty in the market among many other brands (Cabdury, 2014a). Rationale of the research paper The purpose of this research paper is to analyze and evaluate the marketing strategy of the Cadbury chocolate company. Along with this, the current marketing strategy is also evaluated with the help of specification and proper assessment of the organization of Cadbury chocolate. Other than this, current situations and its strategic assessment might also be analyzed through SWOT as well as strategic marketing issues are evaluated. Moreover, specific issues are evaluated along with development of marketing mixes. Discussion A specification and assessment of the Cadbury Chocolate’s current marketing strategy In order to amplify the position and reputation in the market, the organization of Cadbury Chocolate tried to implement effective marketing strategies. Only then, the organization of Cadbury Chocolate might enhance its brand image and range of customers to a significant extent as compared to many other rival players. Effective distribution system: the organization of Cadbury tried to maintain effective distribution system so that the customers might get their desired products at any time and at any place. However, this strategy of Cadbury Chocolate became successful only due to the effective team management and work coordination of the sale team members that amplified the productivity and market share of the organization of Cadbury Chocolate in the market among many other rival players. Customer choice and preferences: the organization of Cadbury Chocolate became successful in understanding the demands and requirements of the customers and acted in that way. It prepared varied types of chocolates such as gems, diary milk, perk, 5 stars, éclairs that enhanced the profitability and demand of the products of Cadbury Chocolate that amplified its equity and trust (Cabdury, 2014b). Moreover, constant modification of the products so as to fulfill the preferences of the target customers amplified its growth by almost 35 percent within a very small period of time. Due to which, it helped the organization to position itself as a market leader in chocolate segment. Healthy and tasty products at affordable price: the strategy of presenting healthy and tasty products at a competitive price also proved extremely effective for the organization of Cadbury Chocolate that amplified it range of customers and reliability in the market among others such as Nestle, Amul etc. Affordable luxury: in order to improve the market value and demand, the organization of Cadbury Chocolate also enhanced its presence in candies. Due to which, varied types of products such as halls, Cadbury dairy milk éclairs etc are highly preferred and consumed by the customers of varying income groups so as to attain a refreshing feeling at a affordable price (Kotler & Armstrong, 2010). Strong dominance and leadership: due to the presence of wide range of products at a competitive price, the organization of Cadbury Chocolate became successful in holding a strong image and position. Such an image and position helped the organization of Cadbury Chocolate to reduce the threats and weaknesses of the new entrants. Thus, due to these above mentioned strategies and points, the organization of Cadbury Chocolate became successful in amplifying their brand image and popularity in global perspectives among many other rival contenders. Using a SWOT analysis, the Cadbury Chocolate’s current situation and its strategic assessment is analyzed SWOT analysis is one of the strong analytical techniques that may be used to evaluate the underlining strengths, weaknesses, opportunities and threats of the concern. Strengths: Strong leadership position in Chocolate: in order to retain the strong leadership position and reputation in the segment of chocolate and dairy products. The organization of Cadbury Chocolate desired to develop a wide range of products such as perk, 5star, éclairs, gems, temptations, dairy milk, shots etc so as to satisfy the changing taste and preferences of all age groups. The prime intention of implementing such a strategy of product development is to amplify its customer base and profitability to a significant extent among others. Strong brand image: in order to retain the dominant image within the minds of the customers, the organization of Cadbury Chocolate desired to offer high attention over the calorie content of the products. This is done, in order to offer the customers, a very healthy and tasty product at an affordable price so as to improve its brand value and popularity in the market. Low cost of production: this is also another important strength of the organization of Cadbury Chocolate in this age of aggressiveness. This is mainly due to effective economies of scale that helped the organization to penetrate numerous developing and developed markets along with attainment of high profit margin. More emphasis on sales promotion: as the organization tried to amplify its total sale and demand of the products lines, high attention is offered over the concept of promotion or advertisement. By doing so, the organization of Cadbury Chocolate became successful in amplifying its distinctiveness and market share among many other rival players. Strong partnership with retailers: in order to maintain its loyalty and reputation in the market, the organization of Cadbury Chocolate always tried to maintain a strong partnership with its retailers. Due to which, the organization of Cadbury Chocolate became successful in attaining a wide range of customers and distinctiveness in the market. Weaknesses: Followed a single flavor: as the organization of Cadbury Chocolate followed a single flavor of chocolates, so its range of dominance is declining significantly. So, it might try to implement new flavors such as jellies, gums etc. Less attractive packaging: the organization need to offer high attention over packaging in order to make it more attractive and beautiful among others. Opportunities: Introduction of new products with low fats: the organization of Cadbury Chocolate in introducing varied types of new product lines with low quantities of fats such as wafers, gums, jellies, baked chocolates, bars etc. This strategy of improved product lines might prove effective for the organization to amplify its brand image and performance in the market. Increasing gifts packs: Now days, the organization of Cadbury Chocolate is trying to position itself in substitute to sweet products (Mithai’s). By doing so, it tried to amplify its total sale and profitability. Threats: High competition: the rate of competition is increasing day by day in this age of globalization in order to amplify its brand value and reputation in the market. However, due to which, maximum extent of the organization are offering high concentration over research and development to present healthy and tasty products for the customers. Thus, it might be clearly depicted that the organization of Cadbury Chocolate attained a strong image and position in global perspectives only due to its strategies of products development, innovation as well as competitive pricing. An assessment of Cadbury Chocolate Company’s competitive environment and other factors that is likely to have significant effects on its results in the next 2-3 years Competitor analysis: the prime competitors of Cadbury Chocolate are Nestle, Mars Inc, Premium Chocolate, and Amul etc. Among them, Mars Inc implemented the strategy of expanding its market share by offering high concentration over small-buyouts. That amplified the market share of the products lines of galaxy chocolate and Dove tablets to almost 4.5 percent in both United Kingdom market as well as in global perspectives. Apart from this, the product lines of Nestle might also prove harmful for the organization of Cadbury Chocolate due to its competitive pricing policies. Premium Chocolate is also trying to amplify its demand and position and reliability by presenting varied types of products as per the tastes of the customers. So, if the organization of Cadbury Chocolate does not offer high attention over product development, then Premium Chocolate might eat up its market share in the coming 2 to 3 years (Pride & Ferrell, 2004). Perceptual map of Cadbury Chocolate as per its competitors such as Amul, Mars Inc, Premium Chocolate, Nestle etc. High Price Cadbury, Mars Inc, Nestle Low Quality High Quality Amul, Premium Chocolate Low Price On the basis of the perceptual map, it might be stated that the organization of Cadbury Chocolate might focus over the take-home segments or family packs. So as to amplify its brand image and value in the market as compared to its competitors. However, in order to do, the organization of Cadbury Chocolate, might try to make its packaging more attractive and cozy. Other than competitors, various other factors such as environmental, technological, demographic, socio-cultural, economic, regulatory over the image and profitability of the organization of Cadbury Chocolate is presented below: Environmental: due to the enhancement of the intensity of disorders of cocoa, numerous health conscious customers are reducing to consume it. As a result, the market share of Cadbury Chocolate is reducing, so it might try to diversify its product lines to candies, wafers in order to retain its portfolio in the coming 2 to 3 years (Kotler & Armstrong, 2010). Technological: in order to retain the image and reputation in the market, the organization of Cadbury Chocolate might try to implement improved technologies, machineries and techniques. Only then, it might become successful in presenting high-quality of products to its customers thereby amplifying its profitability among others. Demographic: as the range of substitute products is increasing so, the organization of Cadbury Chocolate might try to change its target segment with age groups 7 to 25 years to 7 to 50 years. This means it need to present varied types of wafer or bars in family sizes so as to target all the members of a family with varying age groups. Only then, it might become successful in retaining its brand value and uniqueness in the market (Kotler & Armstrong, 2010). Socio-cultural: the taste and preference of the customers of this age is changing rapidly as they are favoring snacks more than chocolates. So, the organization of Cadbury Chocolate might try to offer varied types of new flavors of snacks in the coming years. Economic: if the rate of per capita income declines, then the consumption rate or purchasing rate of the chocolates of Cadbury might get decreased significantly. Due to which, the organization of Cadbury Chocolate might try to present its product at a quite low cost so as to attract new customers and retain the existing ones (Pride & Ferrell, 2004). Regulatory: if the rules and regulations of the government changes, then it might offer a significant impact over the profitability and reputation of the organization of Cadbury Chocolate in the coming years. Thus, the organization of Cadbury Chocolate might try to implement the above mentioned strategies in order to retain its reliability and uniqueness in the coming 2-3 years. Identify 2-3 major strategic marketing issues related to the Cadbury Company’s overall goals In spite of strong brand image, the organization of Cadbury Chocolate is facing numerous major strategic marketing issues that hindered its portfolio and popularity in the market. These are: Lack of promotional campaigns: the organization of Cadbury Chocolate do not offer high preference over promotional campaigns. Due to which, the level of awareness of the product lines of Cadbury Chocolate is reducing significantly in this age. However, in order to mitigate such issues of promotions, the organization recruited reputed brand ambassadors so as to promote its products. This created a significant trust and loyalty within the minds of the customers (Grant, 2005). Over dependence over the suppliers of developing countries for attainment of ingredients: due to over dependence over the suppliers of the developing countries created varied types of discrepancies or delays. As a result, the organization had to delay its production schedules. Moreover, due to over dependence of the supplies in developing countries, varied types of disorders of cocoa also aroused that hindered the trust and loyalty of the product of Cadbury Chocolate within the minds of the customers. Change of customer preference: due to presence of high level of calories within the products lines of Cadbury Chocolate, the preferences of the customers are changing rapidly. Due to which, the organization is trying to present itself as a brand, that develops products rich in milk and cream to make life more sweet and pleasant. Thus, the organization of Cadbury Chocolate is trying to position its product lines as extremely healthy and hygienic commodities that create a different felling within the lives of the individual. Identify viable strategic alternatives for the company with respect to the most important 2-3 issues including the product or service being examined In order to mitigate the impacts of the above mentioned issues, the organization of Cadbury Chocolate might implement the strategy of contraction. By implementing this strategy, the organization might reduce its weaknesses and threats by amplifying its strengths and opportunities. It might increase its awareness and customer base by extensive promotion and the market share and portfolio of the organization may be enhanced by penetrating numerous developing and developed markets. Only then the dependency and reliability of the organization might get retained and improved to a considerable extent as compared to many other rival players (Dagnino, 2012). Select the alternatives for each issue as the most likely to succeed, with the rationale for that choice In order to improve the level of sustainability and competitive advantage in global perspectives, the organization of Cadbury Chocolate needs to implemented the below mentioned strategies. These strategies might also prove effective in amplifying the brad value and loyalty of the organization within the minds of its target customers (Cengagebrain, 2013). Introduction of Cadbury Diet: invention of Cadbury diet Chocolate proved extremely effective for the organization of Cadbury thereby amplifying the taste and preference of its target customers. This is because; the cholesterol and fat conscious customers might prefer this chocolate very much as it comprises of very low amount of cholesterol as well as fat contents. Due to which, introduction of this Chocolate of Cadbury Diet might prove effective in enhancing the brand image and reputation of the organization within the minds of health conscious individual. Presence of varied types of seasonal discounts and schemes on the family packs: in order to improve the level of awareness of the customers, the organization might try to offer varied types of discounts and seasonal schemes on the family packs. This might encourage or motivate the individual of varying age groups of a family to purchase the family packs to attain the special schemes and discounts. Recruitment of suppliers of the local regions: in order to reduce the disorders caused by the ingredients supplied by the developing countries, the organization needs to recruit suppliers in local regions. Only then, the production related delays as well as discrepancies related to cocoa might get reduced significantly (Bradley, 2007). These above mentioned strategies might prove effective in amplifying the brand image and expansion of the organization of Cadbury Chocolate in different global market among others. Develop a relevant marketing-mix strategy to support the alternatives The relevant marketing mix strategy is presented below: Product: introduction of Cadbury diet might prove effective for the health and diet conscious individual. Only then, the brand image and reliability of the organization of Cadbury Chocolate in the market among many other rival players. Then, the range of customers might get enhanced to a significant extent thereby amplifying its competitive advantage and position (Beall, 2010). Price: the price of Cadbury Diet might be lowest as compared to many other rival contender products. Only then, the desire of the organization to amplify its total sale and profitability in the market might get fulfilled that may increase its reputation and portfolio. Place: the distribution of the product of Cadbury Diet might be present in each and every retailer, distributors and supermarkets. Only then, the totals ale and demand of the product of Cadbury diet might get enhanced (Armstrong & Kotler, 2005). Promotion: the organization of Cadbury Chocolate might offer promotions in all television channels, online sites, social media networks so as to amplify the total revenue and demand in the market. A plan to implement the strategy, including contingency plans to address the unanticipated events, considering the company’s resource constraints In order to control a sudden problem, a contingency or action plan needs to be developed. It is presented below: Steps Time period Resource Constraints Step 1: introduction of the new product : Cadbury Diet 2 months Lack of product awareness Competition from existing products Step 2: promoting the features of the products such as low calories, low fat etc 4 months Communication gaps in advertisements Unclear USP projected to the customers Step 3: presenting schemes with the family packs of Cadbury Diet 4 months Not preferable by all customer demographic segments in a family Step 4: availability or the product in all supermarkets, hypermarkets, retail chains and outlets to increase demands. 2 months Inefficient distribution of new products in target markets Only then, the health and diet conscious individual of all age groups might get attracted towards the products that may improve its brand image and reputation in the market among other rival players. There are 4 steps on the table above and according the time table along with resource constraints have been set. One year action plan has been proposed with significant constraints on each stage. In order to mitigate the constraints in stage 1, the company can focus on more promotion of awareness programs and marketing initiatives. The constraints in stage 2 can be mitigated by proper communications and highlighting the main USP of the product in comparison with that of the competitors. In step 3, the company can initiate awareness consumption of diet foods. Efficient use of existing distribution channels into the markets along with the popular products. Conclusion Conclusively, it might be stated that in order to retain the brand image and portfolio in the global market, it is extremely essential to offer inventive products and services. Only then, the organization might become successful in satisfying the changing tastes and preferences of the customers of varying age groups thereby amplifying its portfolio and position in the market. Similarly, the organization of Cadbury Chocolate needs to present varied types of inventive products such as wafers or Cadbury Diet for its diet conscious customers. Only then, the total sale and profitability of the organization of Cadbury Chocolate might get enhanced to a significant extent in the international markets among many other rival players. Moreover, due to the introduction and high-ended promotion of Cadbury diet, the level of dominance and dependency of the brand might get enhanced that may prove effective in amplifying its sustainability and popularity. References Armstrong, G. & Kotler, P. (2005) Marketing: An Introduction. Germany: JohnWiley & Sons. Beall, A, E. (2010). Strategic Market Research: A Guide to Conducting Research to solve problems. Boston: Harvard Business School Press. Bradley, N. (2007). Marketing Research: Tools & Techniques. New York: McGraw-Hill. Cabdury. (2014a). About Cadbury. Retrieved from: https://www.cadbury.co.uk/ Cabdury. (2014b). Products of Cadbury. Retrieved from: https://www.cadbury.co.uk/products Cengagebrain, (2013). Marketing Research. Retrieved from: https://www.cengagebrain.co.uk/content/kent03279_1844803279_02.01_chapter01.pdf Dagnino, G, B. (2012). Handbook of Research on Competitive Strategy. New York: McGraw-Hill. Grant, R, M. (2005). Contemporary Strategy Analysis. London: Sage. Kotler, P. & Armstrong, G. (2010). Principles of Marketing – 7th Edition. London: Sage. Pride, W. M. & Ferrell, O. C. (2004). Marketing. London: Sage. Read More