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An investigation of the current marketing mix and strategies of Cadbury's

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Contents Objective Details Page Number 1 An investigation of the current marketing mix of Cadbury's 2 - 6 2 Secondary and primary research methods 7 - 18 3 SWOT and PEST analysis 20 - 24 4 Methods of analysing the marketing opportunities 26 - 30 5 Creating a new marketing strategy based on research 32 - 34 Bibliography Books and other sources used Appendix Validity Checks An investigation of the current marketing mix and strategies of Cadbury's Introduction I am going to investigate the current marketing mix and the strategies used by Cadbury's. The marketing mix is the '4Ps' (Product, Price, Place and Promotion). I will get the information required from various sources. Mainly I will use textbooks, the Internet and through some primary research (visiting supermarkets and shops). I got some pricing information from the local Sainsbury's supermarket. I looked on the Cadbury's website for additional information on Cadbury's. Product Product Type Cadbury's offers a wide range of products for many different people. Cadbury's has chocolate aimed at children, 16-25year old, 25+, males and females. The products offered by Cadbury's come in many different sizes, the sizes are dependent on the market they are aimed at. Children usually have small appetites so most children's chocolate comes in small packs. A good example of this is the Cadbury's Buttons range. This range started out with just small bags for children and then the bags got even smaller for children. Then Cadbury's released giant buttons and buttons in big bags. This was not only to provide for the whole of the market but to increase sales as well. Giant buttons were aimed at older children and adults, as well as children with very large appetites. Product Life Cycle The product life cycle shows the sales of a product over time. When the product is launched, sales tend to be slow. If the product succeeds the sales will then grow, until at some point they begin to stabilise. ...read more.


Internal Strengths Cadbury's has a world known brand name that is associated with quality. Cadbury's also have a large distribution and its bars can be found all over the world. Cadbury's has a very good customer service centre and has a large variety of chocolate bars to suit everyone's taste. Cadbury's is the biggest name in the chocolate market and is the market leader. Cadbury's has very effective promotions on their products. Cadbury's has a very good research and development department leading to new products. Cadbury's has built its name around a high quality almost faultless product quality. Weaknesses Cadbury's has its products priced higher than most of its other competitors. A large range of the Cadbury's products has reached the maturity stage of its life cycle. The costs of the company are too high. Cadbury's are making a low profit per bar due to the high costs. External Opportunities Cadbury's has still got a lot large room for expansion into South Africa, Asia and South American regions. Cadbury's could look to develop new products in new markets. Due to the growing product range Cadbury's could launch new products. Cadbury's could diversify into new markets e.g. Breakfast Cereal Market. Threats Cadbury's have got a lot of competitors in the market and must be wary of their position as market leader. The pricing on their products is too high Cadbury's could lose sales if a competitor was to launch a new product to rival Cadbury's best sellers. Legislation on ingredients could cause huge problems. Healthier options could cause problems to Cadbury's with trends tending to favour the new healthier options. New products from competitors could cause problems to Cadbury's as they could begin to lose their market share. PEST Analysis A PEST analysis shows the external factors outside a company that could affect the business. PEST stands for Political, Economical, Social and Technological. Political This part of the PEST analysis deals with the government influences. ...read more.


The design on the box will be very cartoon like to appeal to children. The reverse of the box will be aimed at the adult section of the market. The product will taste very chocolaty but have good nutrional value. The box will have a large price at the top of the box. This will attract the buyer's attention, as it will be a low price. The product will have the famous Cadbury's logo on the box in very large letters. Price Based on my research I am going to use market penetration and have a special introductory offer on the cereal so a box of 350g will cost 99p and a box of 500g cereals will cost �1.25. The prices will then rise to �1.75 for a box of 500g cereal and �1.50 for a box of 350g. This will attract customers to our product and I am confident once they taste our chocolaty cereal they will not go to another brand. Once the product is established competition based pricing will be used. Place I would distribute the products to the main wholesalers so the small shops would have easy access to the cereal; through their local cash and carry. I would then distribute the product to the supermarket depots. The supermarket chains will then distribute the product to outlets. The benefits of this distribution is it is cost effective to Cadbury's and the orders will be in bulk so the product will not have to be distributed to every small chain. Promotion I would promote the product via both above the line and below the line promotions. The product will have TV advertising the product. The radio will also have a radio advert. The product will be advertised at the cinemas before a movie. The cereal will also have a banner on the Internet. The below the line promotion will be competitions on the radio. We will give the radio a box of cereal to try and then give away a supply of cereal over the week. ...read more.

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