The marketing principles of Cadbury’s are:
- Products and markets
- Co-ordinated marketing
- Policy
- Efficiency
- Competitors Legal factors PEST factors
- Who and what they are statute law and trade awareness of changing
- Agreements environment
For a company like Cadbury’s to be successful they have to develop a product. This would mean developing an existing product from the market for an existing market. The Ansoff’s matrix shows, that there are four promising strategies.
Existing New
New
Market Development is where a marketing strategy is where a business focuses on trying to make their existing product development remarkable at a new line of customers. This can be unsafe for a firm because they have not dealt with new customers before so therefore they are not experienced.
Market penetration is all about the growth of the market share. Market penetration suggests a further penetration of existing markets with existing products. This method is very safe and easy to use because the business has great knowledge of this already. Market penetration exists products to gain a larger share market.
Product development is where a marketing strategy is a bout a company trying to develop a product that they are selling now. Most companies maintain to develop their product so it keeps on recuperating for some businesses to survive in the industry this is necessary.
Diversification is when Cadburys develop a completely new product where they are entering a new market. Something that Cadburys have not manufactured before. This is the most risky strategy because the business will be entering a new market, which has new competitors and customers. In addition they will be working with a new product that is not guaranteed to be a hit.
The first step in developing a marketing strategy is to understand your customers, enabling reaction to their changing needs and the changing dynamics of the market. We must conduct several stages of in-depth customer research and investigation of the Cadbury's brand. The research involving both quantitative and qualitative research methods. For Cadburys to achieve its marketing objectives they must thin about their marketing mix. The business marketing strategy is referred to the marketing mix. This meets the needs of the customers. The four elements are:
- Price
- Promotion
- Place
- Product
The price is developed from competition. There are 3 C’s that Cadburys should take under consideration. The 3 C’s are competiotn, costs and customers.
Costs: a business must charge a price, which earns enough revenue to cover all its total costs of production (permanent and unpredictable) at any stage of productivity; they will need a decent price where they make profit aswell.
Promotion: Before communicating with customers you must be aware of what the competitors are communicating to create a beneficial difference between them and us. This coursework from
Place: Distribution is key to any retailer or brand.
Product: Expanding products for sale
Summary of the confectionery market that Cadburys are in
The vast majority of UK consumers buy confectionery, although sales of certain items tend to be bought mainly by females, especially within the chocolate sector. Children are also involved in a major target market - data shows that confectionery purchases tend to rise if there are children in the household. The market has been one of the main beneficiaries of the general rise in the spending power of children within the UK.
Three large companies, all of which are active in overseas markets and have wide product portfolios, dominate the confectionery market. Cadbury's, Nestlé and Mars all own a number of well-established brands in the chocolate and sugar sectors. Many of these brands have high advertising budgets and a number have been extended using limited edition flavours and new packaging. A somewhat small number of brands account for a relatively high level of confectionery sales. There are also a number of smaller companies in the industry, many of which target particular markets - such as premium confectionery.
Growth will be strongest in the sugar confectionery sector, which will steadily increase its share of the market. The chocolate sector is likely to benefit from the trend towards gift giving and sharing among others, which will increase sales of items such as chocolate assortments. The major players are forecast to increase their global presence even further.
List of references
Textbooks
Gordon Wills, John Cheese, Sherril Kennedy (1957) Introducing Marketing
B Howard Elvy (1972) Marketing
Michael J Baker and Susan J Hart (1989) Marketing and competitive success
John B Clarke (1990) Marketing Today
Websites
(28th February 2005)
(28th February 2005)
(28th February 2005)
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Bibliography
Textbooks
Gordon Wills, John Cheese, Sherril Kennedy (1957) Introducing Marketing
B Howard Elvy (1972) Marketing
Michael J Baker and Susan J Hart (1989) Marketing and competitive success
John B Clarke (1990) Marketing Today
Websites
(28th February 2005)
(28th February 2005)
(28th February 2005)
(28th February 2005)
