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Table of content

Page

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

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1.1 Introduction of Cadbury Company

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.

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1.2 STRATEGIC ANALYSIS OF CADBURY

Showcasing methodology is an arrangement of movement which is utilized by numerous

organizations around the globe, which helps the business reach its points and targets, it can

additionally aid a business when propelling another item as it serves to recognize which

distinctive systems might be best to utilize. Advertising methods might be part into two

principle classes which are the short term method and long term method. Short term methods

helps a business to centre basically on the four Ps: Product, price, place and promotion which

are fundamental to all organizations, as these four characteristics are the principle things which

help a business to accomplish targets in the event that they are utilized accurately. On the other

we have long term methods which are utilized to arrange the future movements of a business,

this can could be generating tables, for example, an Ansoff matrix which helps a business to

settle on numerous things, for example, whether to launch another item or to enhance past

items, general settling on the right choices on which sort of system to utilize is key, particularly

on account of Cadburys as it serves to choose how to launch another oat bar, to guarantee that

they achieve greatest deals. All around the following few pages I will talk about conceivable

short term and long term methods which Cadburys could utilize, demonstrating which kind of

system in each one case might be the most valuable to help them accomplish accomplishment

when there is a new product in the market.

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.

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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.

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1.2.2 Ansoff Matrix

An Ansoff Matrix can be used to make identifications and strategize many growth

strategies as Cadbury could benefit from it as it assists in focusing on the firms present value

and products in the market. The importance of using Ansoff Matrix is that it helps to identify

possible ways to make the business grow by generating new ideas to improve present products

or to produce new products in the future. There are four different parts that Cadbury should

look into which is market penetration, product development, market development and

diversification.

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.

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1.2.3 SWOT Analysis

Strength

Creates stronger bonding among family members

It also brings community together

Their product offer is very wide

Strong research and development plus innovation

Weaknesses

Cadbury do not have enough funding and sponsorship to promote

A few unsuccessful product is hampering their brand image

Opportunities

Raising awareness for all the children and people involved

If the event is successful, it might be carried as annual event

Opportunity for family to network their networking with others

Cadbury might be able to contract themselves with more supplier

Threats

People might be more health conscious

Experiencing lost of income rather than gaining

Inflation can cause sales to reduce drastically

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1.3 Strategic formulation of Cadbury Company

The formulation of every new product in the market is essential and critical as it will

determine the importance of the branding of the product. Cadbury has two targets for their

products one is trade customers who are equipped with the products and the other one is

customers who buys it. In recent years, within the market when the products are launched, it

has become an art which can make progress or break a product. Every successful launch of any

new products in the market will potentially gives awareness to customers and may be keen to

try it. There are two types of launch strategy that I will be discussing here which is the

competitor intelligence and customer loyalty tactics.

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 in-

store 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

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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.

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1.4 Strategy implementation of Cadbury Company

Advertisement

One of the strategy implementation used by Cadbury is advertisements. In a very imaginative

manner, Cadbury targeted the market in terms of gender, age, income range earned and also

the behavioral attitudes of the people in the market. Cadbury then find various ways and ideas

to reach and address the target market. Cadbury incorporated different textual address on their

advertisements that they come out with whenever they produce new products. All this various

different kinds of textual address in a new trying to speak to certain specific sections of the

society, in return gives viewers a better understanding. Advertising a new product is essential

as many are not aware of it because it is new in the market. Many may have the impression that

if a new product is out, they may need the capture of the brand by itself. Advertising companies

have to play their exquisite role by advertising good work because they view themselves as

marketable entities and therefore must stand out for the service they claim to provide. Cadbury

uses television commercials to market all their new products that are less known or new in the

market place. The company also uses the Internet to promote all their new products.

Third party distribution

Another way Cadbury can implement is through third party distribution where the company

will allow their products to be sold by non competitors and other different businesses that sell

various kinds of products. Entrepreneurs are hired as they are seen as one to possess special

information and to obtain profits. Its very ambitious that building up core competencies and

different having it integrated vertically. Moreover, managers will decide if to make and decide

on the end products as the old products may not carry any defining value as time goes by. Old

products will expire over time and may not worth the keep. If a firm knows to plan well from

past experience on ways to efficiently build distribution networks that make enhance the

competitiveness of its product, then the firm will be able to find ways to place the necessary

assets more competitively and with a lower price than firms which lacks this competence. Third

party distribution gives Cadbury the chance to expand into more markets and making it easier

for people to purchase their brand. The third party distribution also enable the company to be

stronger competitively and would be able to survive in both markets; local and foreign market.

Innovation of products

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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.

Traning and development programs

To have an effective fast work pace moving company, training plays a very important role for

development. How effective and productive one worker can be in an organization doesnt just

reflect upon the skills shown or working environment that they are working in but

dependability of the company to provide proper hands on training methods that can satisfy the

demands of the work. There will surely be a small gap between the job and skills shown by

workers. Therefore, all the gaps can be cemented by providing proper effective training and

development courses. As a result, the workers will be able to have an opportunity to improvised

their skills, demands of their job and enhance the production of the Cadbury company. Lastly,

with all the proper training and development courses organized by Cadbury for their workers

will show good return in terms of fulfilling own crave for knowledge and bring a whole new

level of the companys production.

1.5 Conclusion

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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

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CADBURYS APPENDIXES

Appendix 1 ( 4Ps of Cadbury )

Product

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Price

17

Place

18

Promotion

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Appendix 2 ( Ansoff Matrix )

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Appendix 3 ( BCG Matrix )

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Appendix 4 ( Annual sales of Cadbury year 2004-2007 )