Investigating Marketing
Product is: Cadbury Dairy Milk
History of Cadbury Dairy Milk
John Cadbury established the Cadbury story in 1824 in Bull Street, Birmingham. This was a family business when it first started but now it is one of the world's largest international chocolate producers. In 1831 the business developed from a grocery shop and John Cadbury became the manufacturer of drinking chocolate and cocoa. This was the start of Cadbury manufacturing business.
Cadbury business is an industrial and social development business. It has been developed over a century and half. The business shows how it developed since it was established and the features of having the highest standards quality, technical skills and innovation.
Cadbury Limited is the confectionery partition of Cadbury Schweppes plc, a great power in the confectionery and soft drinks international market. One of the main focuses for Cadbury is the quality from the establishment until now. Generations from the start have worked to produce chocolate with taste, smoothness and snap characteristics of the Cadbury chocolate.
Cadbury's logo
Milestones
In 1824 John Cadbury, son of Richard Cadbury, opens his own business at 93 Bull Street which is a fashionable part of Birmingham. John Cadbury sells tea coffee and additional to this he sells hops, mustard and a new sideline - cocoa and drinking chocolate, which he prepares himself using a mortar and pestle.
866 Cadbury brothers introduce a new cocoa process to produce much more delicious cocoa essence.
897 Cadbury manufactures its first milk chocolate.
905 Cadbury Dairy Milk is introduced with a new recipe using fresh milk.
915 Cadbury Milk Tray is introduced.
920 Cadbury Flake is introduced.
923 Cream filled eggs, the forerunner of Cadbury Crème Eggs, are launched in the UK.
Mid-1920's Cadbury Dairy Milk gains its status as the brand leader in the UK, a position that it has enjoyed ever since.
928 Fruit & Nut is introduced as a variation of Dairy Milk. Cadbury introduce the "glass and a half" advertising slogan.
929 Cadbury Crunchie is launched.
938 Cadbury Roses are launched.
958 Cadbury Picnic is launched.
971 Launch of Cadbury Crème Egg as we know it today.
976 Cadbury Caramel is launched.
987 Cadbury Twirl is launched.
2000 Cadbury Snowflake is launched.
Cadbury's Objectives
* To grow the market for chocolate confectionery
* To increase Cadbury's share of the snacking sector
All businesses need to set objectives for themselves or for the products or services they are launching. What does your company, product or service hope to achieve?
Setting objectives are important; it focuses the company on specific aims over a period of time and can motivate staff to meet the objectives set.
A simple acronym used to set objectives is called SMART objectives. SMART stands for:
The objectives set by Cadburys chocolate are specific, measurable, achievable and realistic. However they do not give any time to when this should be achieved.
. Specific - Objectives should specify what they want to achieve. Cadburys objectives are specific as they wish to grow the confectionary market for chocolate (which covers any business selling chocolate) and increase their market share within this sector. These are very clear objectives.
2. Measurable - You should be able to measure whether you are meeting the objectives or not. They can easily measure both objectives as over time they can see the trend for growth in the chocolate confectionary market (a qualitative measurement) and they will be easily able to compare whether they have increased market share in the snacking sector compared to their competitors like Nestle.
3. Achievable - Are the objectives you set, achievable and attainable? They already one of the leading chocolate confectionary businesses in the world and our experts in this market and therefore I believe they are able to achieve these two objectives. Cadburys are already market leaders in the chocolate confectionary industry.
4. Realistic - Can you realistically achieve the objectives with the resources you have? For a business like Cadburys these are realistic objectives.
5. Time - When do you want to achieve the set objectives? Through our market research I have been unable to find on any of Cadburys website when they expect to achieve their objectives however they already have a big market share.
Some Business Objectives:
There are a number of business objectives, which an organisation can set:
Market share objectives: Objectives can be set to achieve a certain level of market share within a specified time. E.g. obtain 3% market share of the mobile phone industry by 2004.
To increase profit: An objective maybe to increase sales 10% from 2003 - 2004.
To survive: The hard times the business is currently in.
To grow: The business may set an objective to grow by 15% year on year for the next five years.
To increase brand awareness over a specified period of time.
The development of chocolate snacks concept was after the results in market research showed the growth of the snacking and the exact gap of the chocolaty snacks in the market. Consumers were questioned on their snacking habits and preferences also ingredients were devised and tested on them. After this research and development team was asked to develop number of recipes of products which was made up from the consumer's preferences and choices.
Cadbury is planning to continue as a driving force in the confectionary market. They will also persistently analyse the offerings for trade. Main objective of Cadbury's innovation programme is to create incremental capacity for the company and reach the vision of market leadership in each segment which they operate in. The position of innovation is vital as it allows Cadbury to expand further on of its competitors in those areas of the market which are new or developing.
What Market is Cadbury is in?
There a number of different markets:
• Consumer goods - divided into consumer durables (fridge, TV) and consumer goods (non-durables, like food). In this type of market consumer taste can change very quickly. Businesses will need to keep up-to-date with market change
• Services - these are tangibles such as insurance, banking, transport and tourism. This type of market tends to follow long term trends and pattern.
• Capital goods (Industrial markets) - goods which will be used to make other good/services such as machinery, equipment and tools. In this type of market brand and image tend to be less important
•
Cadburys operates within the Consumer goods market this means that they sell non-durable goods i.e chocolate and other confectionary food.
What products Cadbury Dairy Milk produce?
The Cadbury Chocolate Master Brand covers the entire chocolate bars that contain Cadbury Dairy Milk. Besides to Mega brand Cadbury Dairy Milk, Fruit & Nut and Whole Nut, it includes further well-loved names such as Flake, Crunchie, Boost, Twirl, Caramel, Double Decker, Marble, Wispa, Picnic, Fuse and Cadbury's Classics.
Product Brands
Cadbury brand has an intensive force on individual product brands. These brands have features that are aimed at specific target markets for specific requests. These brands obtain a benefit from been under the name of Cadbury. T ensure that the product brands are been successful every aspect of the top chief brand is focused on. A Flake, Crunchie or TimeOut are visibly dissimilar and are manufactured to plead to a range of consumer segments. However the key brand supports the brand value of each product. Consumers are aware that they can carry a chocolate ...
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Product Brands
Cadbury brand has an intensive force on individual product brands. These brands have features that are aimed at specific target markets for specific requests. These brands obtain a benefit from been under the name of Cadbury. T ensure that the product brands are been successful every aspect of the top chief brand is focused on. A Flake, Crunchie or TimeOut are visibly dissimilar and are manufactured to plead to a range of consumer segments. However the key brand supports the brand value of each product. Consumers are aware that they can carry a chocolate bar with reliance which is under the Cadbury branding.
Correspondingly issues such as particular advertising or product quality of a packet of Cadbury biscuits or a single Crème Egg will, in turn, impact on the sensitivity of the chief brand. Also the main brand owns a strong brand value over the individual brands, and it has a reputation which the brands below it should all follow and support at all times.
4'ps in Cadburys Dairy Milk
Cadburys' dairy milk is a product that is targeted at variety of segments. Dairy milk standard size bar is about 49g which is more of traditional. The packaging is also more of Cadburys' traditional which is bright and purple colour with Dairy Milk logo across it. Price and quality are obviously linked but usually about 40p which is a bargain that everyone can afford.
Products
Place
Promotion
Price
Cadbury Dairy Milk
Supermarkets, newsagent, internet, vending machines, chocolate shops.
Television adverts, magazines, newspapers
49g - 44p
block - 5.49
Cadbury Dairy Milk Melts
Supermarkets, newsagent, internet, chocolate shops.
Television adverts, magazines, newspaper
89p
Bournville Deeply Dark
Supermarkets, newsagent, internet, chocolate shops.
Television adverts, magazines, newspaper
250gr - £1.95
Flake
Supermarkets, newsagents, internet, vending machines, chocolate shops.
Television adverts, magazines, newspaper
£0.65
Crunchie
Supermarkets, newsagents, internet, vending machines, chocolate shops.
Television adverts, magazines, newspaper
3 items per pack
£1.49
250gr - £1.95
Picnic
Supermarkets, newsagent, internet, vending machines, chocolate shops.
Television adverts, magazines, newspaper
Price £1.19
Double Decker
Supermarkets, newsagent, internet, vending machines, chocolate shops.
Television adverts, magazines, newspaper
41p
Cadbury Hot Chocolate
Supermarkets, newsagents, internet.
Television adverts, magazines, newspaper
500g - £2,75
Heroes
Supermarkets, newsagent, internet, chocolate shops.
Television adverts, magazines, newspaper
480g - £4.75
Milk Tray
Supermarkets, newsagent, internet, chocolate shops.
Television adverts, magazines, newspaper
£3.29
Cadbury Crème Egg
Supermarkets, newsagents, internet, chocolate shops.
Television adverts, magazines, newspaper
3 items per pack
£1.59
Snaps
Supermarkets, newsagents, internet, chocolate shops.
Television adverts, magazines, newspaper
36g - £2.75
Products
The following products are produced inUnited Kingdom and Republic of Ireland.
* Cadbury Dairy Milk (Milk Chocolate), sold in sizes from 25g up to 1 kg, although bars larger than 250g are sold only in certain outlets.
* Cadbury Dairy Milk Fruit & Nut (Almonds & raisins)
* Cadbury Dairy Milk Whole Nut (Hazelnuts)
* Cadbury Dairy Milk with Caramel (formerly Cadbury's Caramel)
* Cadbury Dairy Milk Caramello (only available in Ireland)
* Cadbury Dairy Milk Bubbly (formerly Wispa)
* Cadbury Dairy Milk with Crunchie Bits (known as Cadbury Dairy Milk Golden Crisp in Ireland)
* Cadbury Dairy Milk Mint Chips
* Cadbury Dairy Milk Orange Chips
* Cadbury Dairy Milk Shortcake Biscuit
* Cadbury Dairy Milk Turkish (Turkish delight)
* Cadbury Dairy Milk Almond & Honey
* Cadbury Dairy Milk Wafer
* Cadbury Dairy Milk with Creme Egg
* Cadbury Dairy Milk Double Choc
* Cadbury Dairy Milk Banana Chopper (New for 2007)
* Cadbury Dairy Milk Roast Almond
* Cadbury Dairy Milk Melts Velvety Milk
* Cadbury Dairy Milk Melts Deliciously Dark
* Cadbury Dairy Milk Melts Heavenly Praline
* Cadbury Dairy Milk Buttons (formerly Cadbury Buttons)
* Cadbury Dairy Milk Tiffin (biscuits and raisins; only available in Ireland)
* Cadbury Dairy Milk Double Chocolate
The following products are produced in Australia and New Zealand
* Cadbury Dairy Milk (Milk Chocolate)
* Cadbury Dairy Milk Fruit and Nut (Almonds & raisins)
* Cadbury Dairy Milk Hazelnut
* Cadbury Dairy Milk Roast Almond
* Cadbury Dairy Milk Brazil Nut
* Cadbury Dairy Milk Cashew
* Cadbury Dairy Milk Coconut Rough
* Cadbury Dairy Milk Mousse (Chocolate Mousse)
* Cadbury Dairy Milk Caramel whip (Caramel and nougat)
* Cadbury Dairy Milk Marble
* Cadbury Dairy Milk Peppermint
* Cadbury Dairy Milk Breakaway
* Cadbury Dairy Milk Caramello (Caramel)
* Cadbury Dairy Milk Rocky Road (marshmallows, cherry flavoured jellies, peanuts and coconut)
* Cadbury Dairy Milk Snack
* Cadbury Dairy Milk Top Deck (White chocolate & Milk chocolate)
* Cadbury Dairy Milk Triple Decker (Mint, white chocolate & milk chocolate)
* Cadbury Dairy Milk Black Forest
* Cadbury Dairy Milk Turkish Delight
* Cadbury Dairy Milk Mint Chips
* Cadbury Dairy Milk Malt Crisp
* Cadbury Dairy Milk with Crunchie
* Cadbury Dairy Milk Desserts Fudge Brownie
* Cadbury Dairy Milk Desserts Banoffee Pie
* Cadbury Dairy Milk Desserts Lemon Cheesecake
The following products are produced in Canada
* Cadbury Dairy Milk (Milk chocolate)
* Cadbury Dairy Milk Fruit & Nut (Almonds & raisins)
* Cadbury Dairy Milk Hazelnut
* Cadbury Dairy Milk Almond
* Cadbury Dairy Milk Bubbly
* Cadbury Dairy Milk Mint Menthe
* Cadbury Dairy Milk Orange
* Cadbury Dairy Milk Peanut Butter
* Cadbury Dairy Milk Thins
* Cadbury Dairy Milk Thins Toffee
* Cadbury Dairy Milk Minis Peanut Butter
* Cadbury Caramilk (Caramel)
Place - the places where Cadbury products are sold are at stores, supermarkets, newsagents, internet, chocolate shops and vending machines. Vending machines are great benefit in terms of selling the product because they can be found where people usually visit such as schools and hospitals. These areas are all benefit for Cadbury because people can easily reach to their products and buy them. The products can be found effortlessly. Usually when you went into any of the supermarkets Cadburys chocolates are placed in the ile for to be sold with all other confectionary products. Sometimes when there are promoting taking place they are placed at the end of each ile opposite the checkouts. This is to encourage after thought purchasing. An a newsagent they usually are placed by the till at waste level in order to catch the eye especially children.
Promotion - one of the strong associations that Dairy Milk has tried to keep is milk, and for this they have used slogans such as "a glass and a half of full cream milk in every half pound" also advertisements which feature a glass of milk pouring out and forming the bar.
In 2004, Cadbury started a series of television advertisements in United Kingdom and Ireland. The advert featured a person and an animal indicating the person's happiness debating whether to eat one of a collection of bars including Dairy Milk.
In 2005, it was Cadburys' original Dairy Milk bar's 100th birthday as it was first being sold in 1905, so this was celebrated by Cadbury. Cadbury remains UK's leading selling brand. In United States Cadbury is been sold under the Cadbury label but it is manufactured by the Hershey's company in Pennsylvania.
Price - When comparing the prices of Cadbury Dairy Milk to Nestle which is one of the prime competitors of the organisation, it shows hat the prices are quite related but the products that they are selling are similar but not same. The price really depends on the chocolate brand they selling and the amount, but generally the prices are identical.
Cadbury Dairy Milk Price Comparison with Nestle (main competitor)
Cadbury Dairy Milk Prices
Nestle Prices
Standard Size Bar Comparison
Nestle Standard Size Bar
Price £0.90
Cadbury Dairy Milk Standard Size Bar
Price £0.44
From the comparisons we have made the results show that Cadbury Dairy Milk products are better reasonable prices. This will attract more consumers for good quality and better prices.
The Family Range Products of Cadbury Dairy Milk Shown Below:
Family brand name is the parent brand is also known as "umbrella brand. This name is given to product ranges where the family brand name is used for all products. The advantage of this advance is that positive connection with the parent brand will transfer to all sub-brands; however the risk is that if one brand is unsuccessful, the status of the complete family of brands can be tarnished. Recently marketers have identified particularly strong family or corporate brands as Masterbrands. Cadbury is such a brand. However, a true Masterbrand is more than the name of the company - it incorporates the company's mission, vision and values, representing them in a way that is easily understood by consumers.
Mega brand Cadbury Dairy Milk
A Mega brand spans an entire range of products, creating relationships with products which may have been before unseen by consumers.
NPD - New Product Development
One way of achieving competitive advantages for a business is the development and success of the new product. When producing and developing a new product it is a great risk for the business - over 40% of all new product introductions is unsuccessful at begin. For a new product to be successful the business should take all the factors into account and care for innovative corporate culture. This is to ensure that all the staff in the organization is encouraged to do the best in their work. Cadbury takes innovation very seriously and it is a major part of Cadbury's strategy for success.
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There are many great ideas - many of them generated by chance. However, only few products make it through to the end of the process. The further a product goes through this process, the more expensive it becomes. As products progress, the company is making an increasing commitment in terms of resources. Once a product is developed, the launch marketing costs are significant; so a company must carry out extensive market research to ensure a product has the best chance of appealing to the market.
Segmenting the market makes it easier to categorize groups of people with the same consumer requirements and desires.
Branding and packaging
The essential role of packaging has always been to protect and contain a product. In a competitive market, branding and packaging are significant and have become an important part of the product. Consumers directly identify products by the size, shape and colour of packaging.
The marketing department give a product a distinctive look and decide on the package design. This will incorporate the brand name and will separate the product from competitors. This is known as a unique selling point
The shape, size and colour are key factors when packaging a product to make the packaging eye-catching and unique.
The packaging of Cadburys dairy milk is made of some shiny plastic and it is mainly like that. It has a zigzag edge on which would be called the top and bottom of the packaging, which makes it easier to tear open. It has the Cadbury's logo on the top left with the words "Dairy Milk" underneath. On the back there is a "suitable for vegetarians" logo. It has a logo telling you to put the wrapper in the bin.
Market Share
In 2005, as in 2004, Cadburys had the number one share of the global confectionery market (source: Euromonitor 2005), and extended their share lead. Cadburys had the biggest share of the global confectionery market at 9.9%, an increase of 20 basis points over the previous year (source: Euromonitor 2005). This compares with a market share of 5.2% in 2001. (source: Euromonitor 2005)
Cadburys' has strong positions in many of the world's important confectionery markets. We have number one or two market shares in 22 of the top 50 (see table below), and strong positions in all of its geographic regions. Cadburys' made acquisitions in three developing markets in 2006. In June 2006, they acquired Dan Products, South Africa's leading chewing gum business. In April 2006, they purchased a further 30% stake in Kent, their Turkish confectionery business, taking its stake to 95%. In February 2006, they increased their shareholding in Cadbury Nigeria to 50.02% (see table below).
Number of No.1 or No.2 Positions in the Top 50 Confectionery Markets by Geography
Cadbury Schweppes
|Nestlé|
Kraft|
Mars|
Wrigley|
Ferrero|
Hershey
No.1 Position
5
4
4
2
5
No.2 Position
7
0
5
5
2
4
Total Confectionery
22
4
9
7
7
5
2
Cadburys' confectionery revenue is generated from products spanning the full range of the market: chocolate, gum and candy. The table below shows its leading market share in the global confectionery market (US dollar share), and the shares in each of these three categories.
Market Share in the Global Confectionery Market (US dollar share)
Global Confectionery Market
Choc.
Gum
Candy
Cadbury Schweppes
9.9%
7.5%
25.7%
7.2%
Mars
9.0%
4.8%
-
3.0%
Nestlé
7.8%
2.6%
0.1%
3.2%
Wrigley
5.8%
-
35.9%
2.7%
Hershey
5.5%
8.2%
.1%
2.7%
Ferrero
4.4%
7.3%
-
.5%
Target Market for Cadbury
It is important for Cadburys to analyse its market. Many businesses like Cadburys use segmentation to help them meet their customer's expectations.
Different types of customers have different needs and wants and it is therefore difficult to cater for everyone. A business like Cadburys needs to reduce the number of expectations they need to meet if they are to be successful in their objectives. The market is divided into different chunks/ segments based on customer attributes.
These are the different attributes:
• Demographic - by age, gender, income, race, martial status, education and occupation
• Socio-economic - by social class based on the occupation of the head of the household only! NB: Check out the socio-economic grouping
• Psycho-graphic - by behaviour and habits e.g lifestyle, hobbies, entertainment enjoyed, attitudes, personality
• Geo-demographics - by where they live, size of family, type of house etc.
For Cadbury younger adult consumers are more important as this is what they are targeted at. The Snack brand is well known and popular by older age consumers and children, but the younger adult consumers is a faction connection between. They are likely to purchase the snacks for their children and in future they can become the older generation.
The key target group for Cadbury is both males and females which are career builders which are mainly aged between 25 and 45 years. This age group in Cadbury's view is still having fun, but also at a stage where they are settling down and taking responsibilities. These people usually work hard and work for long hours so they are interested in having a chat and laugh with friends both inside and outside of workplace.
Packaging and brand name also plays a big role in the success of products. This is because it creates the 'personality' of the product.
The Purpose of Market Research
Market research is the gathering, recording and analysing of information about markets and their probable reaction to product, price, distribution and promotion decisions. Market research is critical for successful NPD and marketing mix planning. It also helps on identifying and satisfying consumers needs. The main advantage is to reduce the risk and aid the decision making. Market research is particularly important when producing a new product and ensures that it meets consumer's needs.
Consumer needs and wants - people have diverse requirements and companies should classify consumers with similar characteristics. Companies should choose a target market or section of the market for its products to be tested. This will help for the attention for its marketing activities.
Competitors - no firms exists on its own. Competitors should be identified and there business should also be monitored so when a new product is planned to be produced a research can be taken on competitive advantage for the new product.
Marketing mix - 4ps of the marketing is very important and marketing involves them. They include having the right product at a reasonable price, at the correct place, and offering the right promotion. If these four factors are well combined then there is high chance of the product been successful.
Potential sales - if a firm is aware of the level of the sales then they will be able to estimate the correct amount to produce/ supply which will then reduce the risk of financial factors.
Methods and types of market research
There are two major methods of market research - desk research and field research.
Field research - This is also known as the primary research. Primary research includes survey, focus groups, general observation, consumer panels, testing marketing
• Who to ask (sample e.g. random, stratified)
• How many to ask
• What to ask
• How to present the information
This is when contacting potential consumers directly.
When carrying out a survey people are directly questioned about their reaction and attitude to a particular service or product. Surveys can be carried out at face to face interviews or on the telephone. A representative group or a sample will view the information and conclude the results. The design of the survey is very important because the questions chosen should give a chance to make decisions.
Desk research - this is also known as secondary research and the sources that can be taken into account are government, statistics, trade journals, commercial research reports (market share), the media, business own data and the use of information that is already available. Different departments can provide records on trends, customers and costings which can be very useful in the development of the new product. Technology such as the Internet can also provide great information.
Two types of market research - quantitative and qualitative.
Quantitative investigate is when research is concluded with numerical data. At the conclusion of a quantitative project it is feasible to say i.e. what proportion or percentage of the population drop into different groups - those that want something, those that would be likely to buy something, etc. The feature of quantitative research is that all respondents are questioned on the same series of questions. This research can be carried out in a range of ways including face-to-face interviewing, by telephone, by post and self-completion questionnaires.
Qualitative research provides an understanding of how or why things are as they are. It can be used on its own or to help in the progress of a questionnaire for a quantitative study. There are no fixed questions and as a result no statement about what is, or is not, essential. Instead there is a list of topics, problems, or
possibilities to be explored. The informant's personal concerns or assumptions deeply influence the outline and nature of the discussion.
Market Research
In order for me to find out about Cadburys customer needs, to identify Cadburys target market and create a marketing mix I need to carry out primary and secondary research.
Primary research
This involves me collecting and anlaysing information through a questionnaire. The advantage of me doing this is that the informational is original and up-to-date. In this questionnaire I will use a series of closed questions. This will help me to use quantative method of analysis. I have chosen to use this questionnaire with a sample of 20 people age of `11-45, in The Towers School. My questionnaire will help me determine the correct marketing mix to use in order to achieve Cadburys objectives.
Questionnaire
Please can you take the time to complete the questionnaire below concerning Cadburys chocolate.
Do you eat Cadburys Chocolate?
Yes No
What age group do you fall in?
1-15 15-25
25-35 35-45
45+
What is your gender?
Male Female
Are you a buyer and/or a consumer?
Buyer Consumer
Which of the following chocolates would you buy/consume?
Cadbury Dairy Milk Whole Nut Fuse
Picnic Flake
When do you usually eat chocolate?
Morning Break Lunch break
Dinner Night time
Special occasions only
Which one do you prefer?
Chocolate Candy sweets
Which one of the following do you fall in?
Student Worker
Housewife Other
Why do you prefer Cadburys?
Quality Price Taste
How many Cadburys chocolate bars would you say you consume in a week?
-3 bars 3-6 6+
Where do you usually by Cadburys products?
Newsagents Chocolate shops
Supermarkets Vending machines
How much roughly do you spend on Cadburys chocolate per week?
40p-80p 80p-£1.20
£1.20-£2.00 £2.00+
Where have you seen the advertisements of Cadburys?
Television Magazines
Newspapers Billboards
Cadbury Dairy Milk and Marketing
In 1905 Cadbury Dairy Milk launched onto the market and since mid 1920s it has been the top selling chocolate brand in UK. Cadbury Dairy Milk brand is sold in 33 countries round the world.
Dairy Milk had its own distinctive purple packaging, and a slogan glass and a half of full cream milk in every half pound" also the picture of milk pouring into the chocolate bar has been altered little over the decades. Now Dairy Milk produces a range of varieties. The first two add-ons to the Dairy Milk products were Fruit & Nut in 1928 followed by Whole Nut in 1933.
The company decided to group its several confectionary brands in 2003. These confectionary brands were Wispa and Caramel, under the Dairy Milk brand. Wispa was re-branded as Dairy Milk Bubbly, while Caramel became Dairy Milk Caramel. The variety now also contains Biscuit, Crispies, Crunchie Bits, Mint Chips, Turkish, Wafer and Orange Chips varieties.
Cadbury always carries out a market research before producing a new product which is been processes in a systematic way.
What is the Product Life Cycle Concept?
The product life cycle model helps the marketers to identify the stages and level that the product is at during its life cycle. It also gives the chance for marketers to check the sales and profits that the product produces during this time.
There are five stages that the products go through during this lifetime course. The stages are broken up as: introduction, growth, maturity, saturation and decline.
Stages and the Processes
Stage
Process
Introduction: Sales are slow as the product is not famous yet. Costs are high due to heavy marketing spend to create awareness. Emphasis is on advertising and distribution.
2
Growth: This stage shows growing market acceptance and increasing profits. Competitors begin to enter the marketplace. The business concentrates on optimising product availability. The Natural Confectionery Company is an example of brand at growth stage
3
Maturity: The rate of sales growth slows down as the product has been widely distributed and sold. The company now focuses on creating brand extensions and promotion offers to boost sales. New product research is critical to ensure future sales.
4
Saturation: Sales slow down as the market becomes saturated. Profits level off and may even decline due to increased investment in marketing to defend against competitors.
5
Decline: Sales slow down dramatically and profits fall off. The product may be dropped to make way for new products and the cycle recommences.
Variation of Product Life Cycle
Changes in design at different stages in the product's life. Not all products/brands follow the "S" curve of the product life cycle. Some products expire quickly after introduction stage for example Christmas toys. While other products are capable to live for a indefinite period of time. The Cadbury brand has been created in 1824 and has survived since then and it has been the number one brand in confectionary products.
How do brand live indefinitely?
To make a brand live indefinitely the action taken at the maturity stage is extremely important. If the product or brand is to remain accepted it must move with the times to remain significant to the present consumers. This process is called as repositioning.
What Stage is Cadbury Dairy Milk brand is at the Life Cycle
Stage where Cadbury Dairy Milk is at in the life cycle is the maturity stage. This is obvious by the sales and profits that the brands make. Cadbury Dairy Milk is the top selling brand in the confectionary market. This is been kept like this by the action that they take at this stage.
Cadbury Dairy Milk's action is repositioning. This helps the products not to die quickly during their life cycle course. The products are designed up to date so they can remain relevant to modern consumers.
POSITIONING
What is positioning?
Positioning is when the brand is actively communicated to the target audience, specifically, its competitive benefit, values and its image. It is powerfully associated to the perception and image of the product. When devising a positioning strategy for a product, marketers must set up an exclusive and characteristic image of that product in the mind of the consumer. This will have a major difference of the company's product when comparing with its competitors.
Why is repositioning essential?
Repositioning is very important for products because when they become mature new products enter the market and these mature products looks old and tired. The businesses that produce these products should take an immediate action to refresh the image of the product so repositioning form new demand for existing consumers or draw new consumers.
Repositioning strategies
Repositioning strategies are in act of response to the changes in consumer tastes, market conditions or an alteration in competitive strategy. The amount of the repositioning will depend on the degree of the change in taste, lifestyles and technologies. Another factor is how well competitors are performing
Repositioning Cadbury Snack Review
* Launched over 50 years ago the Snack brand was still popular but was not engaging consumers in a meaningful way.
* Cadbury decided to reposition the brand to target young, hard-working professionals who used quick breaks to catch up with
friends and relax during a long working day.
* Snack was repositioned to appeal to this market to become
their top-of-mind brand.
* New modern packaging and an advertising campaign altered
how the consumers perceive the Snack brand.
* The Snack brand is now being extended to widen its consumer
appeal and use (healthy cereal bars can replace breakfast and
provide healthy snacks).
* The brand is +5% to date in 2005 versus 2004
Cadburys Advertisments
AIDA of the Advertisements
ATTENTION - in Cadburys advertisements the attention is always grabbed by sound and colour effects. This grabs people attention to what is happening and makes them curious.
INTEREST - Cadburys make people interest in the advert by showing the glasses of milk pouring into chocolate which will make them interested in the chocolate and the advert.
DESIRE - this is the main and the hardest part of the adverts. At this point Cadburys main role is to make people go out and buy its products. At this part of the advertisement Cadbury like other confectionary adverts, always shows the chocolate which creates a desire at people.
ACTION - this is a benefit when the advertisements on television because then they can have people who are acting and promoting the product.
