Marketing Plan For Cadbury Marketing Essay

Marketing aim For Cadbury Marketing EssayCadbury is the icon of the British confectionary diligence, with a heritage which dates back to 1824. Since then, Cadbury has expanded its business without the world, through both organic and acquisition conduct product. Today Cadbury is a leading global confectionery come with, operating in over 60 countries. Cadbury has an outstanding portfolio of Chocolate, mucilage and Candy brands. In 2008, Cadbury enjoyed a 10.5% market sh ar of the global confectionery market, with revenue of GBP5.4 billion. The company employs close to 50,000 people and work with close to 35,000 direct and mediate suppliers glob all(a) toldy. Cadbury manufactures markets and sells unique brands which give pleasure to millions of people around the world every day. Cadburys Vision is to be the biggest and best confectionary company in the world. One of Cadburys Strategic goals for 2009 to 2011 is to amplify market sh be of the global confectionery market, wit h revenue growths of 4% to 6% annually.Cadbury believes that the confectionery business still has signifi give noticet unused potential. By exploiting the strengths of its innovative products/brands, it believes it can continue to grow its market share and returns, and hand its Vision of becoming the biggest and best confectionery company in the world.VisionThe Vision into action (VIA) blueprint embodies all aspects of our strategy. Our governing objective is to deliver superior shareowner returns by realizing our vision to be the worlds biggest and best confectionery company.Cadburys PhilosophyCadburys philosophy of Vision into carry through (VIA), a strategic plan for 2008 to 2011 is an example of how business strategy is translated to a Marketing plan to deliver positive jounce to its revenue and margin performance.Cadburys growth ambition is based on the following-Strengths of its brands and market stainIncreased investment in Innovation, Marketing SalesGreater exposure to faster evolution categories (e.g. gum) and markets (e.g. emerging markets)1.2 Product, Market Operational CharacteristicsCadbury is a leading global confectionery company with an outstanding portfolio of chocolate, gum and candy brands. Cadbury created few famous brands like Cadbury, Trident and Halls.Flakes park BlacksHallsHollywoodStimorolEclairsCadbury featured brands areCadbury featured brandBubbalooCadbury Crme EggCadbury Dairy MilkCloretsDentyneBorn in 1824 when John Cadbury opened a condescend in Birmingham selling cocoa and chocolate. Since then Cadbury defecate expanded their business throughout the world by a program of organic and acquisition led growth. On 7 May 2008, the separation of the confectionery and Americas Beverages businesses was completed creating Cadbury plc with a vision to be the worlds BIGGEST and BEST confectionery company.Cadbury operates in over 60 countries and worked with around 35,000 direct and indirect suppliers. Cadbury tolerate employ ar ound 50,000 employees all over the world. Cadbury plcis managed by the Cadbury plc Board of Directors which delegates day-to-day management to the Chief Executives Committee (CEC).Cadbury business is divide to four main regions and they are-AmericaBritain, Ireland, Middle East and AfricaEuropeAsia PacificCadburys ValuesCadbury team is performance driven, entertains led. Throughout changing times, our everlasting values have inspired us to be pioneers in business and in corporate responsibility. They help ensure we are proud of our company and are critical to our core purpose of creating brands people love.Cadburys values are Performance, Quality, Respect, Integrity and Responsibility to affectionate, economic and the environmentOur Business Principlesare our code of conduct and too take account of global and local cultural and legal standards. They confirm our commitment to the highest standards of ethics and business conduct.02. Task One2.1 Marketing Planning Principals abridg ment of the Market creation in the confectionery business and dealing with consumers, Cadbury has always been a market and consumer focused organization. It consistently conducts market studies to chance the arrangementing of its brands, in current, natural and future markets. This forms the foundation of the Marketing Plan.Setting the Marketing Objectives In order to deliver growth, Cadbury conducts many trade programs for its brands every year. Each selling program is accompanied with a Marketing Plan. Each marketing plan has clearly defined objectives for the project team to deliver.Establishing the Strategies Tactics Based on the market summary and answer objectives, each Marketing Plan ordain contain strategies and tactics which forget be necessary in delivering the desired outcome.Developing an Action Plan This is one of Cadburys key philosophies, making things happen. Therefore, every Marketing Plan in Cadbury has specific actions to be implemented by a person responsible, and within set time targets.Monitoring of Progress In Cadbury, every Marketing Plan is monitored monthly by the Senior Management Team of the respective SBU, to track the ramp up of the plan, as well as to make any necessary improvements or changes. resource Financial Management Once a marketing program has been canonic by the Senior Management Team of Cadbury, the necessary resources leave behind be provided in order to deliver the objectives set in the Marketing Plan. As in the case of providing the necessary resources, Cadbury in any case provides an appropriate financial budget for the project to deliver the objectives set in the Marketing Plan.Measuring Success Cadbury continuously measures the victor of each of its marketing projects, and compares the results achieved vs. the objectives set in the Marketing Plan.2.2 Marketing Audit / Situational psychoanalysis2.2.1 Market environmentConducts a complete external marketing scrutinise which includes bot h the macro and micro environment of the confectionary industry and how these may have an relate on Cadburys Chocolate, Gum and Candy businesses. From this audit, the company depart be subject to identify the key issues impacting each business, and how the business can contrive an effective plan with tactics and strategies to tackle these issues and ultimately achieve the Marketing Objectives.2.2.1.2 Macro EnvironmentMacro factors are factors that we totally have no or extremely little control off. It is not just looking at a constituent of the industry, but the effects these factors have on the whole industry. An example of an audit tool is the PESTEL analysis, which identifies the opportunities and threats of the external environment, which then helps the Company to develop appropriate plans.PoliticalBeing in a confectionary industry, political factors have little impact on Cadburys business as chocolates, gums and candies are well ceremonious consumer products, and availabl e everywhere. There are no political factors which restricts consumers from purchasing these products. However, in Singapore, the Government has banned the sale of gum, as it is seen as a nuisance to the environment. Therefore, in the UK, Cadburys businesses have no impact politically.EconomicThe state of the economy has an impact to most businesses. The credit crunch and slow down of economic growth, as we are currently experiencing, does effect consumer buy power, and hence Cadburys businesses. However, the reduction in interest rates does help consumers, as it creates consumer spending, and hence Cadburys businesses may have minimal impact.SocialIn terms of neighborly factors, in that respect are many consumer groups which voices their own opinions and somewhattimes this have a major impact on regulations and legislations. Consumer businesses are highly impacted by social factors. As an example, Cadburys chocolate business may be impacted by health reasons, such as sugar an d obesity, which will influence the sugar and department content of its product, and ultimately the formulation and taste. The introduction of sugar free gums and dark chocolates are good examples of how the gum and chocolate industry has evolved over the past 2 decades.TechnologicalThe increase use of internet has impacted businesses worldwide. Consumers are more(prenominal) than aware of product offerings, have greater access to information and knowledge about products and can make more educated choices of products. The internet has also brought consumers closer to companies such as Cadbury, who now have faster feedback from consumers about their products. totally of this has both positive and negative impact to Cadburys businesses.Advancement in manufacturing technology has also influenced the confectionery industry in terms of cost of production, shapes, sizes, packaging etc. All of these do affect Cadburys businesses in many ways.EnvironmentalAs the world experiences great er environmental challenges, such as global warming, environmental legislations do impact Cadburys manufacturing, product and packaging. As a responsible company, Cadbury practices a zero discharge to the environment, which increases the companys manufacturing costs. It also uses bio-degradable packaging material, which is a requirement in the EU.LegalThe confectionery industry is a highly regulated industry. In each country, as in the UK, it is governed by legislations and monitored by the Food and Drug authorities. Influences from Environmental and Social groups, may preface changes in legislations, which in turn impacts the confectionery business. As an example, the use of artificial discolors, additives deemed to increase hyperactivity in children, has forced Cadbury and another(prenominal) confectionery companies to find alternatives, at high costs.The increasing manufacturing standards for nutriment products have also impacted Cadburys businesses. Tighter standards means higher costs to manufacturers. Whilst this is good for society, it has a negative impact to Cadburys businesses.2.2.1.2 Micro EnvironmentAnalysis of the micro environment is equally important. These are the issues relating specifically within the organization and it is crucial that we clearly understand this in order to plan and develop the marketing plan. There are 6 factors and we use a simple tool SPICCSupplierThe Supplier is important to any business, as they can either domiciliate or destroy value. In the case of Cadbury, due to its economy of scale, and long standing confederations with suppliers, it is able to obtain good support from its suppliers. This provides Cadbury with the necessary competitive benefit it requires.PublicIn general the consumer and public at large tend to support a well effected and responsible company such as Cadbury. However, there will always be minority groups who voice their concerns about products and companies, and these have to be handled wi th sensitivity.IntermediariesThe retailers and stores tend to have less power to negotiate when it is dealing with a company as big and well known as Cadbury. Every store wants to have the Cadbury brands on their shelves and would tend to agree with terms offered by Cadbury due to the unpack of consumers this brand brings to their shop.CustomersCustomers do play a big part on the success of a company or its brands. As there are many choices in the market, the customer determines the value of a brand.2.2.2 Industry AnalysisPorters Five Forces is very useful in this analysisTreat of Substitutesdicker power of BuyerRivalrydicker power of SupplierThreat of new EntrantsEach of Porter Five Forces model contributes to the competitive environment in an industryThreat of new EntrantsWith the confectionery industry showing good growth potential, new players may enter the market to get a dainty market share of a very large industry. However, due to high entry barriers, such as establishing a renowned Brand, as well as high manufacturing standards, the threat of new entrants remains low for the confectionery industry.Threat of SubstitutesWith new entrants in the market, a group of existing or new competition may introduce new products/brands, for the chocolate sector, claiming the same consumer satisfaction, but at lower costs, e.g. Ice-creams, puddings which claim to be cheaper and healthier. The threat of substitutes is moderately high for the chocolate sector.Bargaining power of SuppliersAs a long established player in the confectionery industry, Cadbury has the economics of scale to bargain for low cost raw materials. It kit and boodle with the best suppliers in the world in order to ensure consistent quality and low cost materials. Therefore, the bargaining power of Cadburys suppliers is comparatively low.Bargaining position of BuyersIn todays world consumers have many choices, due to the intense rivalry in the confectionery industry. However, Cadbury has a numb er of established brands which command a relatively stronger pull, hence the bargaining power of buyers (eg wholesalers and supermarkets, B2B) is low but the bargaining power of the consumer is moderately high. (B2C)Rivalry among Existing firmsThe confectionery industry is a crowded, with many players. well-nigh are well established players, such as Nestle and Mars, who have equally strong brands as Cadburys. Some have carved out sectors, e.g. in-house brands of Tesco, tag Spenser and Sainsbury. There are also many small players who have good positions in small sectors of the industry. Hence the rivalry among existing players is moderately high. However, Cadburys well established brands do provide some level of edge in the industry.2.2.3 SWOT AnalysisThere are factors within a company which affect the inner(a) environment and these should be addressed. Being a global leader in the chocolate business, the product, Brand and Corporate image, service, value of the product and qualit y is inseparable. Therefore an audit of the internal environment is also important.The SWOT analysis is a useful method in determining the key issues of a company, and will the company to develop a plan to mitigate threats and focus on opportunities.SWOT analysis of CadburyStrengthsWell established company since 1824Global brands and innovative productsOne of the top 4 leading confectionerycompanies in the worldOnly focuses on confectionary products.Products available in almost all distributionChannels.Financially strong, with continued revenueAnd receipts growth annually.WeaknessesToo many products and brandsHighly dependent on confectionery marketHigh cost base when compared to someSmaller confectionery companies. relatively small presence in emergingMarkets.OpportunitiesEntry into new markets (e.g. India China)with its established Brands.Ability to introduce new product extensionsin existing markets using its establishedBrandsAcquisitions of other confectionerycompanies.Threat sNew legislations and regulations which may increase costsSocial impact from consumer groups onhealth related issuesNew entrants into the confectioneryindustryProducts could be easily copied by competitors (carbon copy)2.2.4 Value Chain AnalysisSupport ActivitiesFirm InfrastructureFormation Includes general management, planning management, finance, legal, accounting, quality management, public affairs, etc .Human Resource ManagementPersonal activities All activities that links with recruiting, development (training, education), retention and compensation of employees, manager, etc .Technology DevelopmentR D, etc Include the technology development to support the value chain activities, i.e., Process automation, Research Development, design and redesign, etc.ProcurementPurchasing inputs The role of purchasing inputs i.e., procurement of raw materials, machines, spare parts, servicing, buildings, etc .Primary ActivitiesInbound LogisticsReceiving inputs Activities that associates wi th receiving, storing, exaltation scheduling, inventory controlOperationsBuilding the product/ providing the service Includes packaging, assembly, machining, maintenance, testing, activities that transform the final input into final productOutbound LogisticsDistributing the product to buyers Activities that involved the immaculate product to get to the customers warehouse, orders, transportation, distribution, etcMarketing SalesPre-sale support Activities associated with getting buyers to purchase the product including channel selection, promotion, advertising selling, pricing, retail management, etcCustomer ServicePost-sale support the activities that withstand enhance the products value, including customer support, repair services, installation, training, spare parts management, upgrading, etcTask 023.1 Marketing ObjectivesAs the business still has significant untapped potential both in terms of top line growth and returns. By exploiting the strength of our leadership po sitions to continue to grow their market share and significantly increase the margins and returns, cadbury aim to achieve their vision of becoming the biggest and best confectionery company in the world.Vision into Action (VIA) plan for 2008 to 2011 aligns the energies and efforts of the teams around the world behind a number of priorities which will make the most impact on our revenue and margin performance. In order to generate superior returns for our shareowners, our VIA will deliver six financial targets. These are set out in our financial performance scorecard belowOrganic revenue growth of 4% 6% every year positive confectionery share gainMid-teens trading margins by 2011Strong dividend growthAn efficient balance sheet Growth in Return on Invested crownwork (ROIC)To achieve these financial goals, have a growth and efficiency strategy which aligns behind our focus on fewer, faster, bigger and part. This focus is being applied to all aspects of our business.Corporate objecti veAchieve sales of min. GBP25 Mil in 2009 UK MarketAchieve sales of GBP80Mil in 20011, UK MarketFunctional objectiveTo increase 6% by end 2009Operational objectiveAchieve min of 80% consumer awareness of CCE Twisted within 12 months of launchMarketingProducts, price, place promo, people, process, sensual evidenceDirectorOr CEO3.2 StrategyThe strategy for any marketing project is the key to the success of the project. It should map out what posits to be done, targeting which consumers, and providing them with what value, through the product offered.3.2.1 Segmentation of MarketCadbury segments the UK Chocolate market based on Geography, Demographics and Psychographics to identify the target market segments for their Cadbury toss Egg Twisted.GeographyCadbury geographically segments the UK chocolate market by-Urban market (Cities) e.g. London, Glasgow, Cardiff, Manchester, etcSuburb markets (Towns) e.g. Barnstable, Abingdon, StamfordOthers (Villages) e.g. SawstonThe company identi fies the size of the chocolate market, per capita consumption, growth trends, as well as analyses each segment in terms of Cadburys market share, Cream Egg lovers and chocolate bar consumption. This will provide Cadbury the necessary information to target the right market for Cadbury Cream Egg Twisted.DemographicDemographic segmentation allows Cadbury to understand the chocolate market by age, gender, income group, etc. This allows Cadbury to identify which groups are the chocolate lovers, which group prefers Cream Eggs, which group prefers bar chocolates, etc.PsychographicPsychographic segmentation is based on consumer lifestyle, attitudes and motives. Cadbury segments the UK chocolate market, based on consumers who prefer branded goods, those who prefer taste, texture or shapes. By doing this, the company is able to identify the target segment which will best suit the Cadbury Cream Egg Twisted product.3.2.2 Targeting the marketAfter establishing the market segmentation, the next timber is to evaluate each segment and choose which possible segments should the company target and offer Cadbury Cream Egg Twisted in order to meet its marketing objectives.Based on the segmentation analysis, Cadbury is targeting the following groups-All locations around UK, with greater focus on urban markets.Across all channels, especially super and hyper markets, and comfortable stores, where the chocolate consumption per capita is high.Children, teenagers and females, who are seen to be lovers of CadburyChocolate bar lovers, the group which Cadbury is hoping to switch from traditional bars to the Cadbury3.2.3 Positioning CadburyCadbury is having broader ranges targeting many segments. Youth segment should position as Love and entertainment. Teenagers can attract through adventure aspiration. Childrens mind goes to various tastes and small gifts they are getting. Therefore should do the positioning accordingly.3.2.4 BCG MatrixThe BCG or Boston Consulting Matrix is a tool used t o analyze the portfolio of a company. It classifies business units or product ranges into four categories based on a intercellular substance of market growth rate and market share position. The market growth rate determines the attractiveness of the industry and the relative market share shows the competitive position of the business. Below is the BCG Matrix.Details about the 4 categories are as follows-Cash Cows business units that have large market share in a mature, slow growing industry. Cash cows require little investment and generate cash that can be used to invest in other business units.Stars- business units that have large market shares in a fast growing industries stars may generate cash, but because the market is growing promptly they require investment to maintain their lead. If successful, a star will become a cash cow when its industry matures.Question Marks business units that have small market shares in high growth markets. These business units require resources t o grow market share, but whether they will succeed and become stars is unknown.Dogs business units that have small market shares in mature industries. A dog may not require substantial cash but it ties up capital that could better be deployed elsewhere. Unless a dog has some other strategic purpose it should be liquidated if it has little prospect for it to gain market share.In summary, the BCG matrix provides a framework for allocating resources among business units within a company, and it will be useful for us to review the portfolio of our Chocolate Business.3.3 Marketing MixThe marketing mix is a combination of critical factors that make up the marketing strategy for a product, which helps the company to successfully achieve the set marketing objectives.3.3.1 ProductCadbury UK emphasizes on the need for strong brand image, and therefore all the closings they make with regards to its products are in line with the brand image. The product and packaging are designed to project a nd bring the brand image reflecting Cadbury as who they are. The product reflects the innovation, high quality and nutritional value it provides to its customers, whilst the packaging clearly reflects the familiar purple corporate brand color and corporate brand logo, associated with reliability and quality.Cadbury maintains the original Cream features and taste, which is a well loved product.Uses no artificial colorants or banned additives, and meets all EU food standards.Product is in a twisted bar form to attract chocolate bar lovers.Personality of the Brand is fun and novel to target the modern trendy and female market segment. Specially loversPackaging is colorful, to attract the children, teenage and young adult market.3.3.2 PricePricing of products is key in reflecting the image of a brand. This is why Cadbury carefully considers the image of the product, the value it offers to the consumer and who is the target consumer, before it determines the price of any of its produc ts. It is obvious that different Cadbury products, targeted at different segments of the market are priced differently. The decision on pricing does have an impact to the brand. For example Cadbury offers its bar chocolates at a premium price compared to Tescos or Sainsbury bar chocolates, for the mass market. Cadbury also sells some of its high end products to reflect a luxury image, and can command good premiums, example Cadbury Milk Tray, Cadbury Roses and Green Blacks. The price of a product is also dependent on customers perception of the brand which Cadbury takes into account before it prices its products. However, with the current economic scenario, Cadbury gives special deals, for example Cadbury Dairy Milk bars 20% more (means bigger size) at the same selling price without reducing the price and affecting the brand image.Cadbury priced to competitive priceGBP per gram it is cheaper than the Cream, which allows differentiation.3.3.3 PlacementCadbury chooses carefully the di stribution channels it places its products based on the brand image of the products. For example for its Cadbury Dairy Milk bar range of products, because it is targeted to the mass consumer, this range of products are accessible crossways all channels, in all super and hypermarkets, chain retail outlets, other convenience stores and even in the mom and pop shops. For the premium products, eg Green Blacks brand, Cadbury carefully places them at high end outlet, such as Selfridges and Airports.Cadbury will be available across all distribution channels in the UK market.Focus will be in Hyper and Supermarkets as well as convenient stores, at prominent locations within the stores.Greater visibility will be provided at urban segments (both cities and towns).3.3.4 PromotionDepending on the brand image, the target consumer and market, Cadbury carefully chooses its communication strategy to meet the objectives of increasing awareness and ultimately pulling the consumer to purchase its pro ducts. Every promotional activity has its own strategy and this can can vary from increasing brand awareness, maintaining the brand value, educate consumers about a new product, increasing seasonal worker purchases, or campaigns such as choose Cadbury to highlight the positive emotional value of the brand. However, due to the current economic downturn, Cadbury carefully selects its promotional activities such that it has supreme returns for its promotional spend.With the advent of the electronic media, Cadbury has created a number of websites for its popular brands for consumer/members to be active. These websites have education information, games, good associates such as purple goes green, cocoa partnership and fair-trade. Cadbury has recently agreed to partnership with the 2012 Olympic, which will give its brands, global recognition. Websites are www.cadbury.co.uk, www.cadburycremeegg.co.uk. www.aglassandahalffullproduction.com, etc.Above the line promotion via TV, Radio and prin t media.Advertising will focus on target groups, e.g. children, teenagers, young adults and females.Below the line activities will be carried out at urban markets at high traffic outlets, such as Hyper and Supermarket concourses.Special standees will be appropriately designed to portray the fun and novel personality of the product, and placed in major outlets.Task 034.1 bring out Issues faced by Cadbury and Implications to the Marketing PlanKey IssuesImplication to the Marketing PlanThe economic slowdown and credit crunchPossibility that the market will shrinkCompetition will be intensive driving prices to be more competitive.Pressure from consumer groups on health related issuesNeed to have more PR with consumer groupsNeed to educate consumers on ingredients used in productsHigher legislations and standards for industryTo support this in order to create higher barriers to entry for new entrants into the industryToo many products and brandsTo implement a rationalization program to weed out older and low margin brandsConsumer awareness to create pullTo conduct effective AP programs to bring awareness to consumers.Conduct market research to establish consumer needs and trendsGrowing in a challenging market unveil new products in existing markets using established BrandsIntroduce existing Brands in new marketsUnderstanding the CompetitionConduct market research to determine level and position of competitors in the market4.2 McKenzies 7S FrameworkThe McKenzies 7S framework is a value based management model, which looks at all the key elements which make up an organization, and it enables us to evaluate the effectiveness of our Marketing organization. An effective organization achieves a fit between all these 7 key elements, and should any element change, it affects all other elements and hence the organization as a whole.The McKenzies 7S framework is made up of hard and soft elements. Hard elements are those which are easily classifiable and visible, whilst the Soft elements are those which are less visible and are below the surface. Most organizations tend to focus on the hard elements, and ignore the soft ones, which tends to be an ineffective way of diagnosing and solving an organization issue.The 7S framework is a useful tool used to analyze the current state of an organization. Below is a pictorial view of the McKenzies 7S framework showing the Hard elements (green) and Soft elements (yellow)Hard ElementsStrategy plans for the allocation of a firms scarce resources over time to reach place goals.Structure the way the organizations units relate to each other centralized, functional divisions (top-down) decentralized (the trend in larger organizations), matrix, network, holding etc.Systems the procedures, processes routines that characteri