Dairy Milks current marketing strategy
Dairy Milks current marketing strategy (E4)
At this present time, Dairy milk is in a competitive market with a small number of large dominating businesses. The main competitors of Cadbury are Nestle and Mars. These are also large firms, which are able to produce confectionary that is similar. Therefore all firms in the market place must differentiate their products. In order to try and gain advantages over the competition Dairy Milk has developed a marketing strategy based on the marketing mix.
Dairy Milks Marketing Mix
In order to achieve the marketing objectives of Dairy Milk, as well as the overall objectives of the company, Cadbury's must consider its Marketing Mix. This refers to those elements of a firms marketing strategy, which are designed to meet the needs of the customers. These are four parts to the marketing mix, (product, price, promotion and place) the marketing mix is often referred as the 4P's. To meet consumers needs Cadbury must produce the right product at the right price and make it available at the right place, and let consumers know bout it through promotion ideas.
Product - this refers to the goods or services that the business is providing. In order for a product to be produced the business must first meet the needs of customers. The product here is Cadbury Dairy Milk.
Price - the way in which a product is usually priced reflects the market at which the business is aiming at. Cadburys Dairy Milk is priced in a competitive strategy. The current price that Dairy Milk is usually priced at 37p
Promotion - There is a number of promotional methods a business can use in order to sell its goods and services. Dairy milk is promoted in different ways, such as advertising on television and posters. It also includes promotion in terms of public relations and packaging of dairy milk.
Place - this refers to the physically method used to supply a product to the consumer. It also refers to the retailer used to sell Dairy Milk
Cadburys should also get the rights Marketing Mix when working out their marketing strategy. At different times a business may chose to emphasise on only one or two aspects of the marketing mix. It may for instance depend on the type of the product that the business producing, or the market that the business is selling to. Also the amount of competition which faces the company and the position that the business holds in the market.
Cadbury at the present time has a marketing strategy based on the principles of the 4P's. I will now look at the 4P's in turn and evaluate and analyse the research used to find information about Dairy Milk.
Product
Business must make sure their products are meeting the needs of their customers. This means paying close attention to a number of features on the product.
* How consumers will use the product - Cadburys dairy milk is a chocolate bar, so it will be used as a snack to eat or an impulse buy. The chocolate bar also comes in bigger sizes, which are sometimes used as gifts.
* The appearance of the product - this is likely to involve a consideration of such things as colour and design. Cadburys Dairy Milk has an innovative design, which used the colour purple and gold. The Cadburys script is recognised almost everywhere and is associated with quality.
* Financial factors - there is little point in Cadburys producing a product which meets the needs of the customers if it can not be produced at the right cost. A manufactured good produced at the right cost is likely to be sold for a high price. Consumers have to be convinced that a product is value for money, otherwise they are unlikely to purchase it. Cadburys is a large company, however it does still have to review ways in which to cover and cut costs of production. Consumers might take into consideration factors such as the quality of the product, of which is very high for Cadburys Dairy Milk
* The product life cycle - after a period of time the sales of all products rise then later start to fall. A business must decide whether to allow the product to decline and cease its productions or to revive it in some way. Cadburys dairy Milk has been very fortunate in being able to remain in the maturity stage of the product life cycle. Thus, it has been able to keep sales at a constant level over a period of time.
* A products unique selling point - this is the aspect if the product that allows it to differentiate it from its rivals. It may help a business to gain a competitive advantage over competitors. Cadbury was one of the first businesses ever to produce quality milk chocolate, and therefore been able to be associated with good quality. It has therefore used its main selling point.
* Market position - this is the view that consumers have a product compared to its competitors. Cadbury dairy Milk has been able to obtain a very good market position in that its one of the best selling chocolate bars.
Product Development
A business develops new products to keep it ahead of competitors. Cadburys must continue to develop the chocolate bar in order to increase the market share of the confectionery market. A product such as Dairy Milk will need a unique selling point (U.P.S.). This means it should be a product with a unique appeal that is not shared by any of its competitors. The firm does have this in terms of quality and brand name. However, its competitors are now also being associated with quality and brand names which may cause issues.
Cadburys Dairy Milk is now available in a wide range of bar sizes suitable for all ages and all different occasions, Dairy Milk is also the main ingredient in many other Cadburys chocolates. The wide range of Cadburys dairy milk bar sizes and kinds of packaging is a reflection of the changes of consumer's lifestyles and the development within the retail trade.
Cadburys have now developed the Dairy Milk range to provide a presentation to meet consumers' demands for almost every chocolate eating occasion. The choice is wide, for instance some examples are given below -
* 200g bars as the 'family share'
* 100g bars the small chunky bars
* the new multi-packs with bars designed for a family to eat or a packed lunch ingredient
Product Differentiation
A company like Cadbury is a very competitive oligopoly that will need to differentiate their products from competitors. Each firm in the market has a product that is differentiated from the others which is usually achieved through branding. This is when a product is given an identity of its own. Cadburys has been very successful in being able to create a brand name for itself. This enables the company to help sell its product, like that of Cadburys Dairy Milk. This was Cadburys first product, which was able to create the brand name of Cadbury. In the confectionary market a business will face competition from a wide range of other firms competing in the same market with similar, but differentiated products. This can now be seen in the market, with other products from other manufactures such as Mars, who have the product Galaxy. This is also another milk chocolate bar, which was able to differentiate itself from Cadburys Dairy Milk.
Price of Dairy Milk
The pricing strategy used by Cadburys to price Dairy Milk is a reflection of the market at which the business is aiming at. Cadbury also has lots of other dominant competitors. Therefore price should be a reflection of this. The current price of Cadburys Dairy Milk ranges from 35p to 40p, depending on the retailer. However the normal price is 37p, which is similar to that of competitors. For instance galaxy is priced at 36p.
Pricing Strategies
A business also has to decide how to price a product or service. There are a number of different strategies that the business can use.
Penetration Pricing - prices are set very low to let the company gain access in the market. Cadbury was one of the first company is produce milk chocolate and would therefore have more or less set the price for chocolate. However, when launching a new product or re-launching Dairy Milk then it may well decide to use penetration pricing in other to gain a foothold in the market
Skimming Pricing - prices are initially set very high to take advantage of some peoples wants for a new product or design at any price. Cadburys would not use this method for Dairy Milk as it is in a very competitive market. If prices were to rise then consumers will simply switch to competitors. Therefore it would be sensible for Cadburys to have a price which was similar to competitors
Cost plus pricing - this form of pricing is mainly used with businesses that are trying to maximise profits, thus this method would not really meet the needs of Cadbury as it is in a very competitive market that relies on demand and supply aspects. Cadbury will use the cost of production as the baseline on which to charge prices, but this may not be the final price, as Cadbury will use the cost of production as the baseline on which to charge prices, but this may not be the final price, as Cadburys would like to be competitive in the market.
Positioning Pricing - the products are repositioned at higher prices to change their image. Cadbury is usually associated with good quality chocolate, and therefore may be tempted to charge higher prices in other to enhance their image of quality. However this will not help in a competitive market, as they may loose more customers then gain customers.
Demand based pricing - prices will change on the basis of demand and supply. Cadburys may do this in order to meet the demand of consumers. However, this does not take into account the competitors Cadburys which may be charging a lower price in order to increase demand for their own product.
Competitive pricing - a business will set its price in line that of competitors. I think this is the strategy most likely to be used by Cadburys for Dairy Milk. As the company is in competition with other companies which are also well known then it will need to be in a competitive in pricing in order to keep customers.
Discount pricing - consumers want to buy goods for less then the advertised price. This means discounts such as 'buy one get one free' or '20% free'. Cadbury may also use this method for Dairy Milk in order to increase sales ant the maturity stage of the product life style. It will also give it a competitive edge as consumers are getting more for their money
Differential pricing - this is the method of charging different prices at different times. Prices will be based on the price elasticity of demand.
Cadburys will change their prices on a seasonal basis for instance Cadburys may charge higher prices during Christmas and Easter, in order to take advantage of higher consumer spending on chocolate.
Promotion of Dairy Milk
Promotion is an important aspect for the selling of Dairy Milk. Large amount of money is spent in promoting Dairy Milk
Branding
The brand value of Cadbury stands at £76 million per year and rising. Cadbury has been very successful in obtaining a brand name, it has an instantly recognisable 'Cadbury purple' which makes a statement of the company's heritage. To begin with, the slogan 'glass and a half full cream milk' was restricted to Cadburys Dairy Milk but in the early 1960's the symbol became a vital part of the corporate design for Cadbury - the face of the company.
The three elements - the unique script logo with the glass and half symbol and the purple and gold house colours constitute the visual expression of Cadbury Limited. Benefits of a consistent company logo can be summed up as:
* Memorable and distinctiveness
* Assurance and quality
* An established and consistence house logo helps significantly to persuade customers to sample a new line.
This was all part of the branding process that Cadbury undertook in order to create a well known brand name. It has been very successful in doing so, that it has also created an international image.
Advertising
Advertising is very important in letting customers know about Dairy Milk. The choice of advertising media is very important. It is vital that Cadbury decide on the right media when advertising, so that they reach their target audience and perhaps more. Also advertising for a large company is an expensive suck cost (money which the company can not get back), so the company must be vigilantly when deciding on the advertising media in order not to waste money.
Methods of advertising -
* Television - Cadbury is a large company that can afford to advertise on television so it should therefore take advantage of this method. Recently it has been noticed that Cadburys Dairy Milk is not being advertised on television as it was being advertised some years back.
* Newspapers - Cadbury does not advertise very much in newspapers, maybe because the company thinks that it will not be able to reach its target audience, it will therefore have to spend money on advertising medium that may not work
* Magazines - Cadburys will advertise Dairy Milk in a food magazine such as that of a super market magazine.
* Posters - it may also encourage impulse buying through location close to shops. It is often seen that Cadburys uses this method in order to increase impulse buying of consumers. Posters may all be seen repeatedly. It is a good way for short shard messages
* Radio - this is a method which is not that often used by Dairy Milk to promote itself as the product can not be seen
* Internet - Cadbury has taken advantage of by advertising here. It has a site for consumers who want to know more about the products.
Other promotion methods used by Cadburys
Public relation
Cadbury has formed good relations with the local community for good PR in the form of Cadburys World. It also supports a number of charities. PR is also needed when re - launching Dairy Milk
Sales Promotion
This refers to the techniques and methods used by a business to sell its products to either customers or other businesses. This firm may use techniques such as vouchers and coupons. Another effective promotion technique is to give discounts to the consumer, such as '20% free'
Trade Promotion
Point of sale displays in a major contribution to Cadburys sales. For a relatively low cost, the firm's products are brought right to the attention of the targeted consumers. Another successful method is have competitions and discounts
Sponsorship
This promotion technique is used by Cadburys and can be seen on television. Cadburys is seen to sponsor Coronation Street television soap. It has the advantage of being advertised during prime time television viewing.
Products Presentation and Packaging
There are several important factors to be taken into account in designing and developing packaging for Cadbury
. Cadbury are will known for quality of their products, a status that must be maintained
2. the quality of the confectionary is determined by two factors - the appearance of the product before purchase and the taste
3. Cadbury produce considerable quantities of chocolates and sweets that must sell themselves in supermarkets and on shop counters
The key features of qualities of good packaging are as follows.
* Instant recognition through colour, shape, design, brand visibility - Cadburys products are recognised by the Cadbury script writing and the colour purple, which is associated with it.
* Attractive - dairy milk is appealing and quality looking product. This will help Cadbury to sell products as people will be more attracted to it.
* Eye catching - dairy milk should be eye catching in order to attract the attention of the consumer. The purple packaging is very attractive, however it is not very eye catching compared to another confectionary bar such as 'Kit Kat' which is bright red.
* Persuasive with clear texts and visuals - the title of dairy milk is written in a clear and understandable text. The text is large and can easily be read and seen. There are few images on the product, as there is only a small amount of space on which the firm has to advertise.
* Protecting the product from damage and transit - Cadbury products are protected, so that they are not damaged in transit or in storage. The packaging of dairy milk has improved over the years, in that the foil wrapping was not very effective in protecting the product. The foil sealed wrapping is much better in protecting the product. In addition to the attractive primary packaging which protects and displays the product, there is the all important secondary packaging required for distribution. This is the shrink wrapped outer cartons made from corrugated board and the stretch wrapping used for large loads
* Functional and easy to open - the product, Cadburys Dairy Milk now has a more easily opened packaging style.
Place or distribution of Dairy Milk
However good the product, a business has to deliver its goods on time. This refers to the means by which the product will be distributed to the customer. The products must get to the right place, at the right time. This means making decisions about the way in which the product will be physically distributed. It also means taking into account if how the product is sold. This can be done through retail outlets such as supermarkets.
The process of distribution which is the way in which the seller gets the right goods and services to the customer, either consumers or other businesses, on time, first time, everyplace. To do this successfully a business needs and effective system to place the product at the point where the customers requires it. Cadbury has its own Distribution centre, which will try to solve the problems of distribution channels, warehouse, storage and stock controls.
Retailing
Retailers are very important to procedures like that of Cadburys as well as Cadburys itself. This is because they are responsible for the sale of the products to the final consumer. Retailers have a major role to play in the distribution of most products, like Dairy Milk. This is because they have the ability to reach huge numbers of consumers, in different markets, over a huge area. Therefore, retailers can have a huge influence on producers such as Cadbury's, as they may insist on high standards of quality and products to be delivered on time. Retailers can be grouped to their characteristics.
Multiple Shop Organisations
These retail stores have recently seen the arrivals of confectionary goods being sold in the stores. Cadbury has taken the advantage of the impulse buying habit of consumers and started selling its products in these types of stores. Consumers usually purchase their goods in multiple shop organisations, as they are value for money, however confectionery goods tend to be more highly priced, and so consumers loose out.
Supermarkets
Cadburys would generally tend to sell multi-pack in supermarkets, aimed at housewives. At check out tills there are usually Dairy Milk bars to encourage impulse buying.
However, there is a growing trend for supermarkets to provide 'own brand' goods. There has also been a growth of supermarkets stressing lower prices and selling less well known brands. There is therefore, further competition for Cadburys Dairy Milk, which are usually sold for a lower price
Superstores or Hypermarkets
Once again as in supermarkets Cadburys is usually sold in a multi-pack in supermarkets, aimed at housewives. At check out till there are also the usual Dairy Milk bars, to encourage impulse buying.
Department stores
These sell five or more different lines of products. They tend to sell more highly priced goods and increasingly parts of these stores are run as franchises. Cadburys Dairy Milk is usually sold in these stores and is usually placed at the check out tills to once again encourage impulse buying.
Independent retailers
The smaller local shops, often owned by sole traders, are still important for selling many types of products. These tend to be newsagent and corner shops. These rely heavily on the supply of nationally known or branded goods through a wholesaler or a manufactures agent
Cadbury is most often brought at newsagent's stores and is an impulse buy. So therefore, independent retailers are very important when selling Dairy Milk. However, independent retailers also tend to stock other manufactures products. Cadbury also has independent stores, which trade Cadburys brand name.
Evaluation of the current marketing strategy of Dairy Milk
The marketing strategy of Cadburys has now been looked at and the SWOT analysis is used to evaluate it. SWOT is a technique used for comparing or matching an organisations internal strengths and weaknesses with the opportunities and threats found in the external environment. Each part of the analysis should be identified precisely.
Strengths -
* Currently Cadbury products are market leaders in some countries in terms of sales and market share
* There is brand loyalty to products and to the corporate identity
* There is excellent distribution network
Weaknesses -
* Age of the life cycle of the product. Dairy milk is at the moment at the maturity stage of the product life cycle
* There is a restricted product range that could cause problems if sales suddenly fail.
* The public forgets the slogan or catch line of the product.
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This is a preview of the whole essay
Strengths -
* Currently Cadbury products are market leaders in some countries in terms of sales and market share
* There is brand loyalty to products and to the corporate identity
* There is excellent distribution network
Weaknesses -
* Age of the life cycle of the product. Dairy milk is at the moment at the maturity stage of the product life cycle
* There is a restricted product range that could cause problems if sales suddenly fail.
* The public forgets the slogan or catch line of the product.
Opportunities -
* Expansions into newer markets such as lower calorie chocolates or low in fat. There could also be in new flavours.
* Development of a global brand and possible global marketing
* Possible growing demand for milk chocolate
Threats -
* Growing competition from supermarket own brands
* Increasing competition from competitors bringing out new products.
* Legislation on ingredients could force changes in production.
The proposed marketing strategy for Dairy milk. (E3)
Having looked at the current marketing strategy for Cadburys dairy milk and analysed it using the Swot analysis I have decided to make some changes to the marketing strategy. To do this I have used to principles of the 4 P's otherwise known as the marketing mix.
Using the information obtained it can be said that even though Cadburys dairy milk is successful it still has some weaknesses that it can improve on. Using the principles of the marketing mix, the four P's the following improvement can be made.
Product
The product dairy milk is very successful product in the past few years. However, in order to stay successful it should once again review the features of the product, in order to make sure their product is meeting the needs of their customers.
Consumers are now demanding that products are only functional but are aesthetically pleasing. Lifestyles affect products and their packs. More people are eating on the move creating further opportunities for count - lines.
The wide range of Cadburys dairy milk bar sizes and kinds of packaging is a reflection of the changes consumer lifestyle and the development with the retail trade.
* How consumers will use the product - As I mentioned before Cadburys dairy milk is a chocolate bar, so it will be used as a snack to eat or a an impulse buy. The chocolate bar also comes in bigger sizes, which are sometimes used as gifts. It should therefore emphasise its presence more during peak selling times like Christmas and Easter, if it is to stay ahead of competitors.
* The appearance of the product - this is likely to involve a consideration of such things as colour and design. Cadburys Dairy Milk has an innovative design, which used the colour purple and gold. The Cadburys script is recognised almost everywhere and is associated with quality. However the colour used is not very bright and eye catching and this must be changed. However this would also cause a problem for Dairy Milk as it already has an established brand name and image. It could make the product more eye catching by making the purple brighter and perhaps adding contrasting colours.
* The product life cycle - after a period of time the sales of all products rise then later start to fall. A business must decide whether to allow the product to decline and cease its productions or to revive it in some way. Cadburys dairy Milk has been very fortunate in being able to remain in the maturity stage of the product life cycle. Thus, it has been able to keep sales at a constant level over a period of time. This can be done by continuously promoting the product, through adverts and sales promotion, such as discounts and special promotions.
* A products unique selling point - this is the aspect if the product that allows it to differentiate it from its rivals. It may help a business to gain a competitive advantage over competitors. Cadbury was one of the first businesses ever to produce quality milk chocolate, and therefore been able to be associated with good quality. Therefore Cadbury must maintain this high quality image by continuously reviewing production techniques and that competitors quality is not is not exceeding that of Dairy milk.
* Market position - this is the view that consumers have a product compared to its competitors. Cadbury dairy Milk has been able to obtain a very good market position in that its one of the best selling chocolate bars. However it will continuously be facing competition from other chocolate manufactures and now also supermarket brands. In order to stay in competition with these competitors the firm must continue to review its pricing strategies and maintain its high quality strategies.
The product life cycle of Cadburys Dairy Milk
The product lifecycle model shows how products may go through four stages during their life in the market place. The diagram bellows shows the position of Dairy Milk.
Stage 1 - Introduction and Launch
Introducing a new product into the market can be very expensive process. During this stage, costs are likely to be very high and profits will tend to be low. This stage could be particularly difficult for a new business without an existing distribution network. Internet sales and direct selling has been particularly useful in enabling some businesses to overcome this entry barrier.
For Cadburys Dairy Milk this stage was in the early 1900's a considerable amount of time and money was spent on research into new recipes and production methods and the company invested in a new plant to make the product. This was done in order to beat competition, the Swiss were domination the milk chocolate market with a product of superior taste and quality.
Stage 2 - growth and development
During this phase the product should be establishing itself in the market, sales and profits be increasing and the initial investments should be paid for. If there is still little competition, profits could be at their highest.
Following the introduction of Cadburys Dairy milk there was tremendous growth in the milk chocolate market. There was continued investment in the plat to continue to make the popular brand of chocolate.
Stage 3 - maturity and competition
This stage is characterised by an increase in competition, which could lead to increase costs because of the extra cost of advertising and promotion. Sales of the product are still increasing but an ever decreasing rate. Price cuts, special offers and discounts may be given in an attempt to increase sales.
Cadburys Dairy Milk has reached this stage of the product life cycle. It is important that Cadburys Dairy Milk remains at this stage and not to reach the next stage of the product life cycle. Dairy Milk has managed to remain at this stage with sale promotion techniques, such as their special offers and discounts.
Stage 4 - Saturation and Decline
This stage is typified by declining sales and low profits. Even price cuts and advertising are not enough to tempt the consumer into purchasing. The business may attempt to re-launch the product in a different form.
Cadburys has been very successful in not allowing Dairy Milk to fall into this stage of the product life cycle.
Product development
Cadbury must continue to develop the chocolate bar in order to increase the marker share of the confectionary market sector. As mentioned as before Cadburys is a well known quality product and has used this as its unique selling point. However, competitors are now also being associated with quality and brand names. For instance, Mars has developed 'Galaxy' a milk chocolate bar similar to Dairy Milk which is also a milk chocolate bar, this product is also associated with quality and developed a brand name for itself.
In order for Cadburys to develop a new idea or re-launch Dairy Milk it must generate new ideas. It must identify gaps in the cover which they can cover. For instance, consumers now demand foods that are low in fat or calories.
Product Differentiation
Cadbury is a very competitive oligopoly that will need to differentiate their products from competitors. Each firm in the market has a product that is differentiated from the others which is usually achieved through branding. This is when a product is given an identity of its own. Cadburys has been very successful in being able to create a brand name for itself. This enables the company to help sell its product, like that of Cadburys Dairy Milk. This was Cadburys first product, which was able to create the brand name of Cadbury. In the confectionary market a business will face competition from a wide range of other firms competing in the same market with similar, but differentiated products. This can now be seen in the market, with other products from other manufactures such as Mars, who have the product Galaxy. This is also another milk chocolate bar, which was able to differentiate itself from Cadburys Dairy Milk.
In order for Cadbury to continue to differentiate Dairy Milk it must promote Dairy Milk more. As it has been seen the promotion of Dairy Milk has recently declined to people forgetting the slogan of the product. A slogan can be used to make the product different from that of competitors. It should also emphasise the fact that it is a quality product.
Dairy milk has been and is a very successful product. However in order to keep up with competition from other confectionary producers and supermarket brand name products it should make some changes. Consumers are now very health conscious due to the media and would prefer something that tastes good and is low in fat and calories. Cadburys could therefore move into new markets.
Dairy milk could also be made more appealing for people on the go, rather then just for consumer which is buying on impulse. Again Cadburys would be moving in a new direction. It can also use this in petrol stations where people are on the move.
Price
A business can influence its price depending on their competition which it faces. Cadburys is a very competitive oligopoly market. It is also important that Cadburys keeps in mind the competition factor. Therefore, Cadburys would have to be cautious when setting prices, so that the competition would be able to reap the benefits of Cadburys charging high prices. Competition is then able to obtain some of the customers of Cadburys Dairy Milk, especially if demand is elastic in the confectionary market.
The pricing that I think Cadburys should decide to choose is a reflection of the market at which it is aiming at.
Pricing Strategies
As discussed before a business has to decide how to price a product or service, there are number of different strategies that the business can use.
Penetration pricing - prices are set very low to let the company achieve entrance in the market. If the elasticity of a product is high, this strategy is most affected then. This is because the consumers are tempted away from their usual supplier. There are many products that will have a low price when they first enter the market then later they will reach the same level of their competitors.
Cadburys may well use this pricing strategy when re-launching Dairy Milk, along with a sales promotion technique. This price that is set is very low to let the company gain access in the market. It should not also be forgotten that the elasticity of Dairy Milk is high and therefore this strategy would be most effective. This technique can be used to get rid of competition. Dairy Milk have a low price when they first enter he market, then later they will reach the same level of their competitors.
Cadburys can also use this technique if they decided to launch Dairy Milk into a new market such as the healthy market I mentioned before. For instance Cadburys could promote Dairy Milk as a product which can be eaten on the go, rather then on impulse buying.
Skimming Pricing
Prices are initially set very high to take advantage of some peoples wants for a new product or design. The supplier of the product will have some control over the market or the market may only have a few suppliers. Therefore the prices that is charged can be highly priced there is little competition. As competition increases the price will eventually fall. Skimming tends to be most effective if demand for the product is elastic.
Cadburys could enter new market and use this technique to do so. Prices are initially set very high to take advantage of some peoples wants for a new product or design at any price.
Cadburys would have some control over the market as the market may have only a few suppliers.
However, later competition in the market would increase, as other manufactures would start to produce a similar product. Therefore, Cadburys would have to price similar to that of competitors. However, it may be worthwhile if it where to make a short term product.
Cost plus pricing
This type of pricing is primarily used with businesses that are trying to maximise profits. The basic principle of the strategy is to use the cost of production as a baseline to the final price, a percentage of the cost of production is added to final price of the product. This method however, tends to ignore important features of the market such as demand and competition.
Cadbury may well use this method when they have developed a new type of Dairy Milk, it order to maximise profits. Cadburys are influenced by their costs when setting prices to some extent. When Cadburys enter a new market, as that of food on the go, it may use this to set price as that they are able to make a profit and cover cost of research and development. However, later they will have to pay attention to important features of the market such as demand and competition.
Positioning Pricing
The prices are set at higher prices to modify their image. Prices are set which reflect the image that the customer has of the product.
When Cadburys enters a new market the firm is able to use this technique to charge higher prices. As Cadburys is usually associated with good quality chocolate, it may be able to charge higher prices of the re-launch of Dairy Milk. There would also be little competition in the market at this time. Dairy Milk would be repositioned at a higher price to changer their image. Prices are set will reflect the image that the consumer has of the product.
Demand based pricing
Priced will be priced on basis of demand and supply. For businesses, this means to sell at the price where demand meets supply. The price that customers are willing to pay for the amount that is supplied.
When Cadburys launches a new form of Dairy Milk demand will be high (as long as the promotional strategy used by the firm is an effective one). Prices can then be changed on the basis of demand and supply. For businesses this means to sell at prices where demand meets supply. That is the price customers are willing to pay for the amount that is being supplied. As demand is too high, prices can also be high and the firm can increase profits. Eventually competition is likely to increase and demand will drop as the product reaches maturity stage of the product life cycle.
Competitive pricing
A business will set its price in line of competitors. It will depend on the number of competitors in pricing in order to keep customers.
Using this method Cadburys will set its price in line that of competitors. It will depend on the number of competitors there are and the number of sellers. As mentioned before Cadbury has many competitors such as Mars and Nestle, which have also developed a brand name for themselves. There is also an increase in supermarket own brand name chocolate.
This is the strategy most likely to be used by Cadburys for Dairy Milk, when demand of the product becomes relatively elastic and the product reaches the maturity stage of the product life cycle. As Cadburys is in competition with other businesses which are also well known, then it will need to be competitive in pricing in order to keep customers.
Discount Pricing
This method is nearly effective with products, such as Dairy Milk. Consumers want to buy goods for less then the advertised price. This means discounts such 'buy one get one free' or '20% off free'. This method will also give Cadburys a competitive edge as consumers are getting more for their money. Cadburys can use discount pricing for Dairy Milk in order to increase sales and the maturity stage of the product life cycle.
Differential Pricing
This is where businesses are able charge different prices at different times. Prices will be based on the price elasticity of demand.
Cadburys will change their prices on a seasonal basis. For instance Cadburys may change higher prices during Christmas and Easter, in order to take advantage of higher consumer spending on chocolate. This is very effective method for the use of the traditional Dairy Milk, as consumers will prefer this chocolate, to others.
The pricing strategy of Dairy Milk can be improved by Cadburys using the penetration technique when entering the new market. However, later the firm will have to start to use the skimming techniques as competition comes into the new market. Meanwhile, Dairy Milk will have to continue to be priced competitive, so that the firm is able to stay in the market.
Promotion of Dairy Milk
Promotion is a way to obtain and retain customers by drawing attention to the firm. There are a number of promotion methods a business can use including television advertising and personal selling in order to promote its product. A business will choose a promotional method it feels is likely to be most effective in the market in which it operates. Cadburys is able to use a wide range of advertising media in order to promote Dairy Milk.
However, promotion is not just about advertising, it's also includes the following:
* Branding
* Advertising and the media used
* Public relations
* Sales promotions
* Trade promotions
* Sponsorship
* Product presentation and packaging
Branding
This main objective of branding is to differentiate the product. By creating product differentiation the business is able to establish its own segment in the market. Brand names are a very important way in which a product is packaged. Every company will want the customer to ask for the product by its name. It is also important in creating the customer loyalty and therefore later increases sales. A business will then therefore have inelastic demand.
As mentioned as before the branding of the product such as Dairy Milk is very important to Cadbury. This is because it allows the company to differentiate the product and to create the loyalty to the company. Every company will want the customer to ask for the product by its name. It is also important in creating customer loyalty and therefore later lead to an increase in sales. Cadburys has now a relatively inelastic demand for Dairy Milk
Cadburys have been successful in obtaining a brand name and this has shown in the brand value of Cadbury now stands at 76million per year. It has an instantly recognised 'Cadburys purple' which makes a statement of the company's heritage.
Branding is very important to Cadburys and the consumers who buy the product. Brand name is the most influence on purchase with just under a third of the population though that brand name was important.
Popular brands have often been supported and developed by catch-lines. There are phrases, which seek to strengthen the identity of the brand. From market research conducted it was found out that the catch line to Dairy Milk was not known. This showed a weakness in the promotional strategy of Dairy Milk.
There are a number ways in which Cadburys can strengthen the brand name of Dairy Milk.
* Multiple branding - this involves a business using a range of brand names for its products. Cadburys uses this method with products such as Dairy Milk, Milk Tray and Caramel. Dairy Milk would then have the advantage of the fact that different brands with separate identities can be developed to meet the needs of different segments in the market.
* Corporate branding - This where the business uses its corporate name as the principal brand identity. Cadburys can use this form of branding to all new products to readily accept by consumers if they already trust the existing corporate brand. Therefore, if Cadbury decided to develop the low in calories Dairy Milk it will rely on the corporate brand name it has to promote the product. It also enables marketing campaigns to be spread over a range of products and therefore Cadbury is able to benefit from marketing economies of scale.
* Corporate and individual branding - This is the middle way of the two previous branding strategies. It involves and emphasis being placed upon both the corporate and the individual brand name. This strategy has been used to a good outcome in Cadburys. The range of goods has a strong identity. Nevertheless, the limelight is always shared with the name Cadburys, so that for consumer the two brand names appear to naturally go together.
Therefore it can be concluded that Cadburys Dairy Milk needs more emphasis on the individual branding in order for consumers to remember that all important catch line. Even though to begin with, the slogan "glass and a half of full cream milk" was part of Dairy Milk, consumers and the public have started to forget it.
The branding process that Cadburys undertook years ago now needs to be restated, in order to create that well known brand name and catch line once again. It will also help the firm to continue to create a well known international brand image.
Advertising
Advertising is a form in which it informs the buyer. It can be information about the product. It is persuasive when it is intended to tempt consumers to buy a particular product in preference to any other.
The main purposes of advertising are to:
* Increase demand - increasing demand is to shift the demand curve to the right so that the business can sell more at any price. Cadburys will advertise more in order to create more sales and carry on with the maturity stage of the product life cycle of Dairy Milk.
* Create or change the image - when Cadburys decide to re-launch Dairy Milk with a new image they will advertise heavily, so that consumers will still be able to recognise the product.
* Create brand loyalty so that consumer will continue to use the product - in the beginning of Dairy Milk Cadburys advertised heavy in order for people to find out and see their product. This heavy promotion would have lead to an instant recognition and therefore eventually create brand loyalty.
* Maintaining market share - Advertising is needed in order to create a larger market share. Advertising will create instant recognition and will inform the consumers about the product. If people are aware of the product they are more likely to buy it and therefore market share of Dairy Milk will increase.
Advertising Media
In order for Cadburys to maintain the market share in the confectionary market and to promote a new image of it it must advertise. The firm can use a wide range of advertising media in order to do this. The choice of advertising media is very important. It is essential that Cadburys decide on the right media to advertise, so that they are able to reach their target audience.
Television -
Television is often used by businesses that are aiming at a large audience. 99% of the population watch television in the UK. Also the growth of cable, satellite and digital television may attract companies to advertise on television.
The benefits of using television are that it enables companies to have creative advertisements, which can attract attention and have a great impact on people. It enables the demonstrations of the product in use. As well as reaching a vast audience it can increase the scope for targeting the audience. The message of the firm can be reinforced by continuous advertisements.
However this is an expensive method of advertising initially. The message can also be short lived and consumers may not watch the commercials. Technical information may be difficult to get across to the audience. There is the fact there may be a delay between seeing the advert and visiting the shops.
Cadburys is a large company that is able to use television to reach a wide audience. Even though advertising on television can be an expensive process, it would be worthwhile, as Cadburys needs to reach a wide audience in order to reinforce brand loyalty the company also needs to reinforce the slogan of Dairy Milk. Television may also encourage impulse buying for consumers. The firm needs to spend more on advertising on using this form on media.
Newspapers
Newspapers can play a very important part in advertising to the mass market of consumer goods. People sharing the similar often read newspapers.
The advantages of advertising in the newspapers are that there is national coverage. The reader is also able to refer back to the advert. It can also relatively cheap to advertise in a newspaper. Also the details of the can be provided.
However there is no movement or sound and the advertisement is usually limited to black and white. Also individual advertisements may be lost as there are large quantities of other advertisements.
Advertising in newspapers can be relatively cheap way to advertise and also reach a national audience. Cadburys can use this media to create brand loyalty with Dairy Milk and also encourage corporate branding.
Magazines
These can appeal to specific groups of people, who read different magazines. Therefore Cadburys is able to target its main audience.
The benefits of the medium are that colour advertisements are possible and businesses are able to aim for the target audience with special magazines. Also advertising can be linked to features as well as the audience being able to refer back to the advertisements at a later time.
Cadburys can use this type of media to advertise and have a great affect on the audience. Magazines can appeal to specific groups of people, who read different magazines. Cadburys is therefore able to target its target audience using this medium. Cadburys can advertise Dairy Milk in a food magazine such as that of a supermarket magazine. This would also lead to impulse buying of housewives and buying Dairy Milk in multi-packs.
Posters
Posters are able to display a direct message in a variety of locations. This enables motorists and pedestrians to get the message and consider the product. A poster should be large, attention grabbing and placed in a site where it is highly visible to large number of people.
The advantages of poster are that it allow national campaigns and also covers most of target group. It may encourage impulse buying.
However, the disadvantages of using such a medium are that it can only display a limited amount of information. It is also difficult to measure the effectiveness of the posters. Also weather and graffiti can ruin the poster.
Posters I believe would be a very effective way getting people to buy the Dairy Milk product on an impulse buy. Posters are able to display a direct message in a variety of locations. This enables motorists and pedestrians to get the message and consider the product. Posters can be places on billboards and also inside stores such as supermarkets and newsagents. They can also be used at the point of sales placements. It may also encourage impulse buying through location close to shops. Posters may also be seen repeatedly. It is excellent for short sharp messages, such as the slogan.
Cinemas
This medium has increase over the years, as the number of people attending the cinemas has increased. The advantages of using cinemas are that the colour sound and movement can be used. Also advertisements can be highly localised. It may also have a great impact on the consumer and can allow age groups to be targeted.
The disadvantages of using this medium are that there is a limited audience and the message is short lived, furthermore the message may only be seen once.
Cadburys to promote Dairy Milk and create a corporate branding can use cinema. As different group ages can be targeted Cadburys may decide to aim at the children and young adults.
Radio
The number of independent radio station in the country has increased as well as the number of radio listeners. The radio also targets audiences to be targeted. The benefits of using the radio are that it enables the use of sound and can be produced cheaply. It allows consumer groups to be covered as well as targeting younger audiences.
However, there is no visual and no copy of the material. Interruptions to music may prove to be irritating to listens and therefore may not capture the audience's attention.
Advertising is important in an impulse purchase market, and therefore radio may not encourage that much impulse buying. The radio however can be used to target audiences such as young adults.
Internet
The growth of the internet was due to the growing interests to businesses to advertise on the internet. The word wide web allows businesses to advertise anywhere around the world. The advantages of advertising on the internet are that it is relatively cheap and easy to set up. It can be easy to be targeted and the web page can be easily changed and updated. The number of people visiting the site can also be monitored.
The disadvantages of this are there is a limited audience and there could be possible technical problems of connection, viewing, ordering and maintaining.
Internet shopping for chocolate confectionary is not a source of revenue for Cadburys as buying Dairy Milk is an impulse purchase. However the internet can be used to allow multi packs to be brought.
Public relations
This is concerned with the process of communicating a specific message to firm's stakeholders so as to achieve favourable publicity. The public relations (PR) department of an organisation has the responsibility for getting publicity.
Cadburys is very concerned about PR, as it has developed a 'family' image for itself, which it would not want to tarnish. PR is concerned with the process of communicating a specific message to a firm's stakeholder so as to achieve favourable publicity. Public relations involve:
* Keeping the media informed of new products or changes to existing products - if Cadburys was to change the image of Dairy Milk then it has to inform the media of its change. Cadburys may use a press conference to attract publicity. Journalists are given a company presentation, where they are given information. Cadburys may use this opportunity to launch updated Dairy Milk.
* Providing press release stories on the behalf of the firm to the media - Cadburys send a press release to the public about a re-launch of Dairy Milk.
* Community relations - This is to do with providing a service to the community. Cadburys Dairy Milk should be used to support a charity and help in community projects. Dairy Milk is used in wild life bars which are used to make donations to the World Wide Fund for Nature for each bar to be sold. There is also the very successful 'Cadburys World', often used for education purposes and family trips.
Sales promotion
This refers to the techniques and methods used by businesses to sell its products to either customer or other business. This is technique used by Cadburys to sell its projects to customers. There are several ways in which to do this:
* Vouchers and coupons - Cadburys can use vouchers and coupons to promote Cadburys Dairy Milk by putting them in magazines, especially supermarket magazines which are aimed at housewives. This will encourage sales of the product.
* Samples and gifts - Samples are given when re-launching the product with something new, such as improved taste. Samples can be given when Cadbury has developed a new Type of Dairy Milk, such as one that is low in calories, or Dairy Milk has an improved taste.
* Competitions - To encourage sales Cadburys may offer prizes for competitions. A competition will encourage consumers to buy Dairy Milk rather than there competitors. It was very successful strategy used in past years, however it does not have the same effect it used. It is only successful when consumers feel that the prizes are worth it. Otherwise, Dairy Milk will only be brought on impulse and this would not increase sales.
* Discounts - Cadburys often uses this technique in order to increase the sales of Dairy Milk, this means supplying the customer with special deal such as buy on get on free or 20% extra free. This could be a particular successful technique used in supermarkets.
Trade promotion
The point of sales promotion is to encourage potential customers to buy a product, to promote or maintain customer loyalty, to persuade businesses to top up stock and sell the product.
* Point of sales displays - for a relatively low cost, the firms products are brought right to the attention of the target consumers. The problem facing Cadburys is somewhat different. With a market dominated by impulse purchasing (around 70% confectionary market is brought on the spur of the movement) and with perhaps only one or two inches of space on a pack to catch consumers attention the company's display material have to work very hard indeed.
Cadburys needs to offer a wide range of displays on cardboard displays which must be cheap, easy to assemble. The average retailer seller does not have the time to assemble a point of sale material. The displays should be cheap, easy to assemble, yet durable enough to last through the campaign. Costs of POS material are low compared with other promotional media, and Cadburys should take advantage of it. There is also the fact of competitors will be using this method of promotion in the same area, so the POS must be eye catching.
* Competitions - to encourage sales Cadburys may offer prices for competitions. It is used as an incentive to encourage consumers to by Dairy Milk. It is a very successful strategy used in past years, however it does not have the same effect it used to have years ago. It is only successful if consumers feel the prize is worth it. Otherwise, Dairy Milk will only be brought on impulse.
* Discounts - This is another incentive to increase consumer expenditure on Cadburys Dairy Milk. It is often successful in supermarkets, with the multi packs, where consumers are always looking for special offers and discounts. It would also encourage consumers to buy the product if they thought that they were getting more for their money.
Sponsorship
This is where financial support is given to an organisation, usually by another organisation. The purpose of sponsorship is to raise customer awareness of the organisation and its products, raise the companies profile, create, enhance and image, and generate more sale and to widen the audience that sees the companies logo.
Cadbury has given sponsorship to 'Coronation Street', a very popular award winning television programme, during prime television. Sponsorship is where financial support is given to an organisation, usually by another organisation. The purpose of sponsoring 'Coronation Street' was to raise customer awareness of Cadburys and its products, like Dairy Milk, raise the company profile, create, enhance and image, generate more sales and to widen the audience that sees the company's logo.
Cadburys has been very successful in the decision to sponsor 'Coronation Street'. The firm also sponsors other organisation such as 'World Wide Wildlife', using Dairy Milk.
Product presentation and packaging
The main aspects, which were found out by conducting market research in order to analyse the marketing strategy of Dairy Milk in terms of product presentation and package are as follows.
* Design is becoming increasing important in all aspects of life. Consumers are defiantly becoming more design conscious, demanding that goods are not only functional but are aesthetically pleasing. Lifestyles affect the product and their packs. More people are eating on the move creating further opportunities for count lines.
* With the reduction of trade barriers in Europe and increasing trade world - wide, design styles will spread with the best elements of national design being blended into global trends.
* The need for good corporate design and brand presentation will defiantly be enhanced, as the market place becomes more competitive.
* Design is becoming increasingly important in all aspects of life. Consumers are unquestionably becoming more design aware. The need for good corporate design and brand presentation defiantly need to be enhanced, as the market place becomes more competitive.
* With the reduction of trade barriers in Europe and increasing trade world - wide, design elements of national design being blended into global trends.
In doing this, several important factors should be taken into account when designing and developing packaging for Cadburys Dairy Milk.
* Cadbury are well known for the good quality of their products, a status that must be maintained.
* The quality of Dairy Milk is determined by two factors - the appearance of the product before purchase and the taste.
* Cadbury must produce considerable quantities of chocolates and sweets that must sell themselves in supermarkets and on shop counters.
In order for Cadburys to have qualities of a good packaging design it must have the following features, which are as follows.
* Instant recognition through colour, shape, design, brand visibility - as we all know Cadburys products are recognised by the Cadburys script writing and the colour purple, which is associated with it. In this case Cadbury has no trouble with being recognised, however it may have trouble being recognised internationally. Therefore it must promote itself well internationally.
* Attractive - Dairy Milk being an appealing and quality looking product will help Cadbury to sell the products, as people will be more attracted to it. It does not change its image within this aspect, however if it is going into international markets then it must reconsider its appearance as there would be an increase in competition and therefore make it more difficult to compete in a international market.
* Eye catching - Dairy Milk should be eye catching in order to attract the attention of the consumer. The purple packaging is very attractive, however it is not very eye catching compared to another confectionary bar such as Kit Kat. It could therefore make itself more eye catching by adding more colours to its packaging.
* Persuasive with clear text and visuals - the title of dairy milk is written in a clear and understandable text which is easily recognisable. I believe there is no need for an image, only if Dairy Milk was promoting or having special discounts.
* Protecting the product from damage storage and transit - Cadburys products have to be protected, so that they are not damaged in transit or in storage. The packaging of dairy Milk has been developed over the years so that it now has a foiled sealed wrapping. This has proven to be a success, and would not have to be changed.
* Functional, convenient and easy to open - The product, Cadburys Dairy Milk not has a more easily opened packaging style. This could also appeal to the market, such as food on the go.
Cadburys needs to do a lot more promotion for Dairy Milk in order to maintain the maturity stage of the product life cycle. It needs to reinforce the individual branding of Dairy Milk. The firm can do this by advertising more on television and using more poster and point of sale promotions in stores to encourage impulse buying. It needs to have effective advertising campaign to enforce the consumer's loyalty to Dairy Milk.
If Dairy Milk was to promote itself in a new market such as the health food or food on the go then it must also have another advertising campaign. The best way to promote a new product would be to use media such a television, magazines and posters.
Place or Distribution
The choices of transport, warehousing and stock control are all necessary ingredients of a successful marketing strategy. However good the product is a business has to deliver its goods on time. This refers to the means by which the product will be distributed to the customer. The products must get to the right place, at the right time. This means making decisions about the way in which the product will be physically distributed. It also means taking into account if how the product is sold. This can be done through retail outlets such as supermarkets.
Cadburys has to be able to deliver Dairy Milk to their customers on time and at the right place. The choices of transport, warehousing and stock control are all necessary elements. Cadbury needs to make decisions of how to distribute the product and where to sell the product.
Over the past decade, the grocery trade has become a crucial retailing type as well as the conventional Confectioners, Tobacconists and newsagents (CTN's) which have always played an important aspect of the confectionary market. Purchasing in CTN's tends to be impulse buying. Whereas in other stores such as grocery stores shopping tends to be in bulk packs designed to last longer. This leads to the development of multi - pack, such as treat size and snack size Dairy Milk bars, aimed at the housewives.
The process of distribution which is the way in which the seller gets the right goods and services to the customer, either consumers or other businesses, on time, first time, every place. To do this successfully a business needs an effective system to place the product at the point where the customer requires it.
Transport
As Cadburys has its own distributions centre, it has developed its own transportations system. A well organised system of transport is fundamental if goods are to reach the consumer in ideal condition at the time the consumer needs them.
If Cadburys decides to launch a new type of Dairy Milk then it must ensure that the product reaches the consumer on time and that any sales that were not anticipated can be met. Therefore transportation is essential as t may lead to loss in sales, as Cadburys was not able to supply in time.
Warehousing, Storage and Stock Control
Cadbury has purchased built distribution centres, which will enable the firm to have control over where the products are to sell. The main purpose of distribution centres is to store goods, so that they could reach the customer in perfect condition, at the right time, in the right place i.e. where the customer wants them. It will also ensure that products are left in good condition when they reach the consumer.
Stock control would be important when launching a new product as Cadburys would need to make sure that there is enough stock to meet the demand. Cadburys should always be monitoring the amount of goods available for sale so that there are always sufficient to meet demand. This could mean making large amounts of stock available.
Retailing
Retailers have a major role to play in the distribution of most products, like Dairy Milk. This is because they have the power to reach huge number of consumers, in different markets over a huge area.
Multiple shop organisations - Cadburys needs to take advantage of the impulse buying habit of consumers and start selling its products in these types of stores. Consumers usually purchase their good in multiple shop organisations, as they are value for money.
Supermarkets - Supermarkets have the advantage in that they are able to sell Dairy Milk in multi-packs and able to offer special discounts. Cadburys have to sell more multi-pack in supermarkets, which are aimed at housewives. Also at checkout till there are the usually Dairy Milk, to encourage impulse buying. Also there is a growing trend in consumers make their purchases in the foyer of the supermarket rather than go to the main part of the store.
Superstores or Hypermarkets - Cadburys is usually sold in a much larger multi-pack than in supermarkets, aimed at housewives. Superstores also have a much emphasis on bulk buying. At check out tills Cadburys can place the usual Dairy Milk, to encourage impulse buying.
Department stores - Cadburys Dairy Milk can be places in these stores at the check out tills to encourage impulse buying.
Independent Retailers - The small independent retailers tend to be newsagents and corner shops. Cadburys depend on these types of stores to encourage impulse buying. However, during the years 1998 - 199 there has been a fall of 34.6% in the retail sales of chocolate confectionary. This can be given a boost by having more Cadbury stores. Stores, which trade using the Cadburys name. As Cadbury has quality and brand image associated with it, it may well encourage the demand of Dairy Milk.
Other retailers - Confectionary is the second best selling item sold at petrol stations with 13% (not including fuel). The retail sales of confectionary sold at the petrol stations has increased in the years 1998 - 1999 of 38.8%. Showing the greatest increase out of all retailers.
There is also an increase in the number of consumers now buying confectionary foods from vending machines. This can be increased by having Cadburys own vending machines, as Nestle has with 'Kit Kat'
Dairy milk has a wide range of retailers, which sell the product. However, there are sales figures rising in retailers such as petrol station and the foyer of supermarkets. Therefore it would be wise of Dairy Milk to be advertised near these stores. Cadburys would also have to make sure that Dairy Milk is able to reach the consumers on time and at the right place.
Factors influencing the marketing plan of dairy milk (E2/C3)
A marketing plan should be able to identify the internal and external factors, which affect a business. Businesses should be careful to consider how each of the factors affects consumers and their buying habits and behaviour. Changes in external factors can cause changes in the wants and needs of the consumers. An affective plan should anticipate these changes as well as any other issues affecting consumer's needs. An effective plan should anticipate these changes as well as any other issues affecting consumer's needs. Cadbury would therefore have to take into consideration the following factors when conducting a marketing strategy, as will I.
Internal Factors
The marketing mix
This is the assessment of how effective the marketing mix is. It should include an evaluation of each accept of the marketing mix and how well each aspect fits together. Cadburys would therefore have to evaluate the marketing mix and how effective each aspect it, this can be done using the SWOT analysis.
People
A large number of people will be involved in developing and putting into practice the marketing plans. The objectives of these people will establish the targets set in the plan. Also the skills and capabilities of these people working for a firm will determine whether goals can be met. Cadburys would have a large amount of people on the marketing aspects of Dairy Milk. There would also have to be people working on the production line if demand of the product increases, due to the successful marketing strategy.
Finance
In Cadburys there may well be a marketing budget. Firms can set themselves sophisticated marketing goals. However, unless finance is available to fund plans, such goals are doubtful to be accomplished.
Production process
Any marketing plan must take into account whether the firm can produce the product, there is little point planning to grown market share unless enough of the product can be produced to achieve this. Likewise, a Cadburys cannot plan to launch a new product if it cannot manufacture it.
External factors
An analysis of the external factors on a business usually involved a consideration of the PEST factors.
Political
This is concerned with how political progress regionally, nationally and internationally. There is an increasing of legislation and regulation that may affect the marketing plans of the Cadburys. It can differ from controls on the ingredients of products to limitation on price changes.
Much of new legislations affecting the UK are from the European Union. For instance, a legislation, which will affect Dairy Milk, is that the EU wants to weight of goods in grams. So the packaging of Dairy Milk will have to weigh of the product in grams.
Economic
A wide range of economic factors may affect businesses marketing plans. A contented economy for instance, may lead to increased demand for products, higher incomes ant the possibility of price increases. This would therefore be a positive effect on the marketing strategy of Dairy Milk. Growing unemployment may lead to a fall in future levels of demand therefore a fall in sales of Dairy Milk. However, these factors only affect Dairy Milk in a direct way.
Marketing plans should also take into account the pricing promotion, distribution and product polices of rival businesses. This may also include the following:
* Consumer activity - confidence, spending patterns, willingness to spend.
* Economical variables - inflation, unemployment, trade, growth.
* Government policy - fiscal, monetary, supply side, exchange rate.
* Fixed and variable cost of the business
* The effect of changes in product and labour markets.
Social
Changes in society can have consequences for marketing planning. The ageing of the populations may influence the types of products, which are developed, and the channels of distribution used to deliver products to customers.
Pressure groups can also affect businesses. Pressure group such as environmental friendly groups may want Cadburys to product the packaging that is not harmful to the environment, and they may also complain bout the Cadburys distribution centres if they are harming and polluting the environment in anyway.
Technological
Businesses now operate in a world of a rapid technological change. Changes in technology can affect marketing plans in a variety of ways. It may make it possible for businesses to manufacture products that were previously thought to be too costly. It may also lead to greater obsolescence and shorter product life cycles.
New technological developments such as interactive television and the internet may change the promotional methods that a business uses. The internet is a widely used media, in which business, such ad Cadburys, are able to advertise.
Market Research (C1)
For Cadbury and for me, to develop a marketing strategy we must have some information about the potential customer and competitors in the market. A firm may do this by carrying out both primary and secondary research. A market research can be defined as a systematic, problem analysis, model building and fact finding for the purpose of improving decision making in the marketing of goods or services.
Primary/Field research.
The data which is collected for a specific purpose. It is the most up to date and accurate data that could possibly be collected. Firms may either collect the data themselves or they may hire an agency to do the work (this is often cheaper for the firms)
There are five basic methods that can be used to collect the information needed. They as follows:
* Discussions with people
* Direct observations
* Questionnaires and surveys
* Sampling
* Testing through pilots and field trials.
Questionnaires
For my primary research I have conducted a questionnaire. This is a set of printed questions, which is given to a number if people in order to collect statistical information. Questionnaires enable the company to gather information about the respondent, which will later be used to determine to which market segment or category people belong. Also to collect specific data required for the investigation.
Questions tend to be broken down into specific types. The main types are:
* Dichotomous - these are close ended questions with only two possible choices
* Multiple choice - A definite answer must be given
* Open ended questions
* Scaled or rated question
The sampling technique used to research the market was a simple random one. This would allow me to choose the size of the sample required and then to pick the sample on a purely random basis. The sample must be selected in such a way that every item in the sampling frame has an equal chance of being selected.
I have selected 20 members of the public by random. This is to create a representative sample of the population #
A sample of the questionnaire is included as the results of the questionnaire are as follows.
Questionnaire To Find Out What People Feel About Cadburys
Dairy Milk
. Gender
Male Female
2. What is your age group?
Up to 16 Up to 21 Up to 40 Up to 60
3. Have u ever eaten a Cadburys Dairy Milk bar?
Yes No
4. How often do you buy the product?
Never Occasionally Very often
5. How would you rate the taste of the chocolate bar? 1 being the lowest and 10 being the highest.
- 4 5 - 7 8 - 10
6. Where do you buy the product from?
Newsagents Supermarkets Vending Machines
Others (please state) _______________________________________________
7. What do you think of the price?
Reasonable Very good Expensive
8. Where have you seen the adverts?
TV Stores Radio Posters Leaflets
Word of mouth Others (please state) ______________________________
9. What do you think of the adverts?
Attractive Informative Bad
0. Do you know the slogan?
Yes No
If yes what is it? ___________________________________
. Gender
Gender
Tally
Total
Male
| | | | | | | |
9
female
| | | | | | | | | | | |
2
Asking the gender of people is important aspect when conducting an interview as it allows separating the market gender. If firms are able to do this then they will be able to target the right audiences.
As the graph above shows the gender of people interviewed where 40% male and 60% female. The questionnaire may then be affected slightly, as the questionnaire is based on chocolate and typical females eat more chocolate.
2. What is your age group?
Age group
Tally
Total
Up to 16
| | | | | | | |
8
Up to 21
| | | | | | | |
8
Up to 40
| | |
3
Up to 60
|
61 and over
0
The age group of the sample is important because as it allows firms to see what different age groups feel about the product and what age group to target Dairy Milk at.
The majority of people 80%, interviewed were under the age of 21, showing a young population being questioned. The group of up to 16 represents 40% of the people interviewed and the age group of up to 21 represents 40% of the people interviewed. This would mean that the questionnaire would be affected in that the people interviewed were young and therefore had different opinions of that of an older generation.
The people interviewed that were over the age of 21 represent only 20% of that questioned. The age group of up to 40 represents 15% of the people interviewed and the age group of up to 60 represents 5% of the people interviewed. There was no one interviewed over the age of 61. Therefore there would be a large number of the portion of the population not being represented.
3. Have you ever eaten a Cadburys Dairy Milk bar?
Opinion
Tally
Total
Yes
| | | | | | | | | | | | | | | | | | | |
20
No
0
This question is needed to be asked to make sure that the sample had eaten and brought Dairy Milk. This is also to allow the group to have an opinion on the product.
As the chart above shows all the people interviewed had eaten a Cadburys Dairy Milk bar. This is a positive aspect, as it will enable me to obtain a greater picture of the market and the consumers.
4. How often do you buy the product?
How Often
Tally
Total
Never
O
Occasionally
| | | | | | | | | | | | |
3
Very often
| | | | | | |
7
This question is important as it allows prediction of sales. It will allow me to analyse whether sales need to be increased or not.
The majority of people, just under a third interviewed 65%, eat Cadburys Dairy Milk bars occasionally. This means tat people are very familiar with product.
5. How would you rate the taste of the chocolate bar? 1 being the lowest and 10 being the highest.
Rating
Tally
Total
- 4
| |
2
5 - 7
| | | | | | | | | |
0
8 - 10
| | | | | | | |
8
The taste is an important aspect of Dairy Milk as it represents quality. Quality is an important aspect in the product and the company.
The majority of people 85%, interviewed thought that the taste of Cadburys Dairy Milk was pleasant and only 15% regarded the taste to be not so pleasant.
6. Where do you buy the product from?
Place
Tally
Total
Newsagents
| | | | | | | |
8
Supermarkets
| | | | | |
6
Vending Machines
| | | |
4
Others
| |
2
This question was asked to see where Dairy Milk is sold, so that it may be promoted more these retailers.
As the chart above shows the percentage of people that brought Cadburys Dairy Milk from newsagents was the highest with 40%. The product was also brought from supermarkets, 30% of people interviewed brought the product from supermarkets. 20% of people interviewed brought Cadburys Dairy Milk from vending machines. The 10% that selected 'others' brought Cadburys Dairy Milk from stores that where Cadburys outlets. These are newsagent type stores that trade with the Cadburys brand name.
7. What do you think of the price?
Opinion
Tally
Total
Reasonable
| | | | | | | | | | | | | | | |
6
Very good
| | | |
4
Expensive
0
This question was asked to see what people though of the price. Cadburys Dairy Milk may have to re - think their pricing strategy, in order to stay competitive.
Most of the people interviewed 80%, thought that the price of Cadburys Dairy Milk was reasonable and the other 20% thought that the price was very good. None of the people interviewed thought that the price of Cadburys Dairy Milk was to expensive which is good.
8. Where have you seen the adverts?
Place
Tally
Total
TV
| | | | | | |
7
Stores
| | | | | |
6
Radio
0
Posters
| | |
3
Leaflets
0
Word of mouth
| |
2
Others
0
None
| | |
3
This question was asked to see which media is used most often by Cadburys to promote Dairy Milk. Also to see which media is not being used by the firm. So therefore, the firm may be able to use a media which could be used to promote Dairy Milk and have a positive effect.
Most of the people interviewed 33% saw Cadburys Dairy Milk advertised on TV. 29% saw the product being advertised in stores, such as supermarkets and newsagents. 14% saw the product being advertised on poster. Two people 10% saw the product being advertised through word of mouth. !4% of people did not see Cadburys dairy Milk being advertised on the radio. Also not that people were allowed to choose more then one option in total there were 21 comments.
9. What do you think of the adverts?
Comment
Tally
Total
Attractive
| | | | | | | | | | |
1
Informative
| | | | |
5
Bad
|
This question was asked to see how effective the advertisements used was and whether it influenced the sample.
The majority of people 65% thought that the adverts of Cadburys Dairy Milk were attractive. 29% of the people thought that the adverts were informative and 6% thought that the adverts were bad.
Also note that only 17 people answered the question, as 3 people had no seen any adverts.
0. Do you know the slogan?
Comment
Tally
Total
No
| | | | | | | | | | | | | | | | | |
8
yes
| |
2
I have asked this question to the sample to see how effective the market strategy is in promoting the product. It will also establish how well known the brand name of Dairy Milk is known by the sample.
As the chart shows only 1 in 10 people 10% knew the slogan of Cadburys Dairy Milk. The other 90% did not know the slogan.
Secondary Research
Secondary research is also needed to find out more information from the external environment. This uses published data that is available as hard copy resources, which have been collected by others for their own purpose. I am going to use secondary data to find out information bout Cadbury as well as Dairy Milk
Sources of information
The business may obtain information both internal and external.
* Internal information - data can be collected via, the sales department, finance, personnel, production and transport departments.
* External information - Data that can be collected from outside the organisation such as Government reports. Such reports are publications from the Department of Trade and Industry.
Marketing Database
This is a structured collection of related marketing data on past, current and potential customers. Cadbury will hold all this data in a computer system where it can easily be organised, stored and accessed.
Market Research Companies
There are a number of market research companies offering a range of services and selling data required from a selection of resources. For this project I have used Mintel Records. The firm provides information including market size, main competitors, the advertising spend of main competitors and other trends. Mintel also produces comprehensive reports on certain markets.
Mintel Notes
Chocolate Confectionary December 2002
The market has a number of segments. They are as follows:
* Chocolate blocks e.g. Dairy Milk
* Count-lines e.g. Mars bar
* CBLLS - chocolate biscuit count-lines e.g. Kit Kat
* Self lines - bags or boxes e.g. Smarties
* Boxed chocolate and assortments.
* Seasonal
Count line fuel growth
Market is worth £3.8 billion in the year 2004 and increase of 12% over 1999 by the count line segment account 45% of the market dominated by Kit Kat and Mars.
The Big Three Dominate
Cadbury, Nestle and Mars dominate the market. Cadbury is the market leader with 28%. Mars is the fastest growing manufacturer with growth of 32% between 1997 and 1999 due to new products such as Celebrations which is still popular today in 2006, and in advertising and promotion support. Nestle continues to perform well and has boasted by the launch of Kit Kat crunchy and their new flavour of Kit Kat crunchy.
Advertising
An important part of the appeal of chocolates is the image that the brand portrays, the image created must appeal to the target audience and communicate a clear to the proposition that adds value to the product itself. Advertising, especially TV advertising is powerful in creating brand imagery for chocolate confectionary products and this is the reason that such large amounts of money are spent on this type of product.
Brand
2004
2002
change
Kit Kat
Mars
2
2
Twix
3
3
Snickers
4
4
Milky Way
5
0
+5
Crunchie
6
8
+2
Bounty
7
7
-
Wispa
8
5
-3
Caramel
9
Toffee Crisp
0
(Ranks the top ten brands in the count-line sector in the years 2002 and 2004)
Brand
2004
2002
change
Cadbury
-
Mars
2
3
+1
Nestle
3
2
-1
KJS
4
4
-
(Top companies in the Christmas sector by market position)
Cadbury confectionary is over 40% of the turnover.
As well as supporting brands through corporate activity, Cadbury also supports heavily on support of its individual brands, with £19.9 billion spend on ATL advertising in the 12 months to August 2009. Indeed over recent years Cadbury has moved away from only using Cadbury name in its sponsorship to including individual brand names as well as the introduction of new brands. The name Cadburys is a guarantee of quality and taste appeals as such it can hasten the speed of buying by consumers.
Advertising and Promotion
Advertising expenditure as chocolate confectionary totalled £103.3 million in the year august 2003 the majority of this being spent on count-lines and the bars. It is important in an impulses purchase market.
Distribution
Multiple grocers continue to gain market share of the distribution of chocolate confectionary breaking the 40% level of the first time in 1999. Supermarkets also have and advantage in that they offer multi-packs of the popular brands and are increasingly able to offer individual count-lines. It is believed that the foyer of supermarket is a high potential sales areas with some estimates claiming that as many as 30% of supermarket customers make a purchase there rather than going into part of the store itself.
2003
%
%change (1999 - 2003)
Multiple Grocers
,560
41.6
+29.7
CTN
446
1.9
-34.6
Department/variety
319
8.5
-1.8
Symbols and independent grocers
323
8.6
-0.6
Petrol stations
315
8.4
+38.8
Co - ops
73
4.6
+6.8
Other* (including vending machines)
615
6.4
+89.2
(UK retail sales of chocolate confectionary by type of outlet 1999 - 2003)
Working with retailer
Internet sales - potential threat or blessing Internet shopping for chocolate confectionary is not believed to be a source or a revenue in the near future as the bulk of purchasing are made on impulse. However incorporated on the multi packs, as part of the weekly shop have delivered sales could increase rapidly in the next few years. It is possible that impulse purchases would fall.
Vending machines - traditionally only a small part of the market. However, technological improvements to the machines and high capital expenditure have increased consumer acceptance, growing 14% a year, and are very popular in work places, where people at work by chocolates for quick snacks during their lunch breaks.
The consumer
In 2004 over 8/10 adults brought chocolate bars making them the most popular type of chocolate in the confectionary market.
The most popular type of chocolate confectionary is standard size continue which are brought by over half of adults.
* Count-lines - broad appeal
* Standard size - count-lines have a fairly middle market 15-44 and C2s.
Those working full time are more likely to purchase possibly because of their need take quick launch breaks or refuel while commuting. Standard size chocolate bars are popular in households with children ages 5 and older with this type of product because they are more suitable as a treat.
Imagery Essential
Brand name is the most important influences on purchase with 62% of adults mentioned this, as confectionary is a market where brand imagery is highly developed, this finding is not surprising. Manufacturing investment large sums in their products. Brand is especially for A/Bs where 75% of adults are influenced by this factor.
Personal mood at the time of the purchase is also very important to the consumer with so much choice available in the market and with different motivations - indulgence, hunger, satisfaction, treat etc. - all approve at various times.
Number of people
Trusted brand name
62
My mood at the time/whatever I fancy
44
What on special offer at the supermarket
33
Will buy from a few favourite brands
25
Like to try new products
25
Extra free on individual bar
23
What the kids ask for
20
Something you can eat on the move
8
Whatever is in season
6
Brand I've seen advertised recently
2
Luxury product I fancy as a treat
2
Support for a good cause
0
Something I keep in the fridge
0
Whether I am on a diet at that time
8
Instant win promotion
6
TV sponsorship
3
None of these
3
(Major influence on the purchase of chocolate confectionary. September 2004, bases on, 1,026' aged 15+)
Children, adverts and altruism
Consumers are much less willing to admit being influenced by adverts than they are to admit to being swayed by their children. Only 12% admit to being influenced by value, which indirectly contradict the 62% who purchase a trusted brand name, as the trust is built up largely through promotion.
Nuts are the favourite with over 1/3 considered them a favourite. Soft toffees in the form of caramel. Milk chocolate is most popular with over 1/2 the adults.
Forecast
Count lines will continue to dominate the market as snacking becomes increasing driver of the chocolate bar sales are deal for those who do not have much time during the day to eat a decent meal due to busy work, social schedules and satisfy hunger.
Brand extension by expanding their range, manufactures can encourage people to try out new products and so spend more on chocolate.
Eye catching impulse is vital to this marketing accounting for 2/3 of chocolate purchases. Packaging style and format is vital and important as this is often the deciding factor when choosing from a variety of chocolate. Growth can be sustained in the market through continuing market support in the form of promotion and advertising, even for the most established chocolates.
Other secondary resources
I have used a wide range of secondary resources. They are as follows:
* Information from Cadburys - this provided me with some in depth knowledge of the businesses and of Dairy Milk, this allowed me to evaluate the current marketing strategy of Dairy Milk
* Information from books - the information from books was not related to the product and only provides background information to the marketing strategies
* The internet - This media allowed my search for the Cadburys website. The provided me with information of the company and the product.
Marketing Models (A1/A3/A4)
There are a wide rang of marketing models that can be used to analyse a marketing strategy. The most common ones and the ones that are used in this report are as follows.
* The product life cycle
* P.E.S.T analysis
* SWOT analysis
* Boston Matrix
* Ansoff Matrix
The Boston Matrix and Ansoff Matrix are decided below.
The Boston Matrix for Dairy Milk
After producing a product lifecycle for each of its products the business can use these to carry out an analysis of its products portfolio. This will help the business identify possible areas of growth. A useful technique for doing this is the Boston Matrix, originally developed by the Boston Consulting group, a leading form of management consultants in the U.S.A
The horizontal line shows the market share compared to the largest competitors. The vertical shows the growth in the market.
Stars
These are products with a high market share in a rapidly growing industry. Unless the product has achieved this position through heavy discounting it should be generating high profits. To remain a star in a competitive environment the product will continue to need heavy marketing expenditure.
Cadburys Dairy Milk is currently at this position. It has a large market share in expanding the market. In order for the firm to stay to in the successful position it must continue with promotional methods, such as trade's promotions. This also means continually advertising the product, using media such as television and posters.
Cash Cow
These have a high market share in a slow growing, probably mature market. This should mean that the product benefit forms high economies of scale and has lower unit costs that its competitors. It should be generating a high level of profits that could be used to finance 'problem child'. Marketing expenditure would still be required to generate continued public awareness and repeat purchases.
Cadburys Dairy Milk is getting close to this position, but is still in the star product position, but product position in the Boston Matrix
Problem child
This product has a low market share in a rapidly growing market. The organisation has to decide either to support it with heavy marketing, which could be difficult, if it is not generating funds elsewhere or withdraw the product from the market. If Dairy Milk was to be entered into a new market or launch a new product then Cadburys will find itself in this position.
Dog
This product has a low market share in the markets where there is little growth. A dog is probably reaching the end of its product life cycle (the decline stage). Unless the market is expected to grow the product can rejuvenated there is from little point in continuing to market and support the product. It should be dropped from the product portfolio. Dairy Milk should try not to reach this stage and is unlikely they will at this moment. Using promotion methods such as discount can do this.
Using the Boston Matrix it is possible to predict the sales for Dairy Milk. At the present time, sales of Dairy Milk is doing very well and will continue to do with promotional techniques.
The Ansoff Matrix
The Ansoff Matrix is a useful tool for businesses such as Cadburys which will want to expand and grow. There are four possible marketing strategies to achieve growth.
Market Penetration
Growth can be achieved in existing markets with existing products. Cadburys can do this in a number of ways such as:
* Increase the brand loyalty of customers so that they use substituted brands less frequently.
* Encourage consumers to use more of the product e.g. Cadburys producing 'King - sized: Dairy Milk, rather then the standard size.
* Encourage consumers to use the product more regularly.
Product Development
This is a strategy often used by Cadburys. It means to market new or a modified product in existing markets. It can be used for Dairy Milk when trying to enter a new market, such as healthy eating.
Market Development
Here the existing product is marketing in new markets. Cadburys Dairy Milk could move into the healthy Market or food on the go market.
Diversification
This allows a business to move away from reliance upon existing markets and products. New products are developed for new markets. Cadburys would be able to spread risk over a wider range of goods. However for Cadburys this would mean moving into a new market, which is outside its expertise.
Evaluation of models used to propose a marketing strategy for Dairy Milk.
The models, which I have used on this report, are as follows.
* Product life cycle
* P.E.S.T
* SWOT
* Ansoff Matrix
* Boston Matrix
I used the above models for analyses of the marketing strategy of the current and the proposed of Dairy Milk.
Model
Strengths
Weaknesses
Product life Cycle
* It will illustrate the broads trend in revenue that a product might earn for the business
* It will identify points, at which businesses may need to consider launching new products, as older ones are in decline.
* It will identify points at which extension strategies may need to be introduced
* It may help a business to identify when and where spending is required.
* It may help a business to identify points at which a business should no longer sell a product
* It will help a business to manage its product portfolio - its mix of products.
* It will identify points at which revenue from products should be growing and points where it may be declining.
* It will give an indication of the profitability of products at each stage in its cycle
* It will allow a business to plan different styles of marketing that a product might need over its life cycle
* It is a record of past events, it cannot predict the future outcomes.
* The stages show only general guides, not every product will go through all the stages.
* Some products never get beyond the launch phase and fail immediately.
* Movement of products along the life cycle may be difficult to detect or predict. The sales curve may follow an unusual or irregular pattern, while external changes in the economic may distort its progress.
* Constant market research is needed for the firm to monitor change and to use the product life cycle effectively
* Firms may be tempted into self-fulfilling prophecies, for example withdrawal of marketing support for a product which then collapses when it could of recovered.
P.E.S.T analysis
* Analysis wide range of factors.
* Some aspects might not be relevant
* There is no way of predicting future
S.W.O.T analysis
* About the product and the organisation
* Do not know how the external influence the product.
Ansoff
Matrix
* It is one of the best know frameworks for outlining the overall corporate strategies.
* It is over simplified
Boston Matrix
* It is simple but useful strategic planning technique based on that analysis of a company's product
* It can be very difficult to define "high and "low", these can vary between industries e.g. in oligopolistic situation 15% may be considered a low market share, whereas industries with a large number of organisations with would be considered very high.
* The model assumes that an organisation is actively seeking either a bigger market share and/or rapid growth.
* By focusing on market share and growth it ignores other factors which may be important, such as profit margins.
* It can over simplify situations.
* The boxes are not secure or self-contained. Markets are dynamic over time and products positions within are subject to constant change.
Therefore you can see that the various models which are available to analysing the marketing strategy of Dairy Milk can be used to evaluate the success of the marketing strategy.
However, each model as have seen earlier has both strengths and weaknesses, these models must be used as guides only in predicting the likely success of Dairy Mil. Any model is good for the user. Not one model can be said to predict the likely outcome of Dairy Milk.
RESOURCE LIST (E1, C2, A2)
Resources I used to collect and analyses different marketing aspects of Cadbury's and their product Cadbury Dairy Milk
Data type
Source
Title
Strengths
Weaknesses
Primary Data
Questionnaire
'questionnaire to find out what people feel about Cadbury's Dairy Milk'
* Able to obtain opinions of what people think
* The data collected here will be very relevant as this is what people think about Cadburys Dairy Milk.
* Data is very up to date as it has been recently collected.
* The data sample is too small and therefore does not provide a representative picture of the population. Would like to obtain a bigger sample however there was a time constriction.
* Errors may be made while transferring data.
* The data can be very accurate however when collecting data and transferring data to be processed errors may be made.
Secondary data
Book
Essentials of marketing
* Able to find lots of information to the background of marketing strategies.
* The data is very accurate
* The data from the book is more up to day than other books.
* The book is not relevant to the product
* The data from the book is not very relevant to the product, however does provide some background to the marketing strategies.
Secondary Data
Book
Marketing - an active learning approach'
* Able to find lots of information to the background of marketing strategies
* The data is very accurate
* The data from the book is more up to date than other books
* The book is not applicable to the product
* The data from the book is not very relevant to the product, however does provide some background to the marketing strategies
Secondary Data
Book
Business studies
* Able to find lots of information to the background of marketing strategies
* The data is very accurate.
* The data is up to date
* The data from the book is not very relevant to the product, however does provide some background to the marketing strategies
Secondary Data
Book
The practice of advertising
* The data is very accurate
* The book provides some very good aspects of marketing
* The book is not very up to date
* It does not relate to the product
* The data from the book is not very relevant to the product
Secondary Data
Annual report
'Cadburys Schweppes annual report'
* The data is very useful in finding out about the business and its sales.
* The data is very accurate as it is obtained straight from the business
* The data is not very relevant to the actually product
* It is not very up to date as date of the business can change every year
Primary Data
Information obtained from the company
* The data is very useful in finding information about the product.
* There is also some information on the marketing strategies used.
* The data is very accurate as it obtained straight from the company
* That data is very much up to date
* The information is not relevant to my specific product jus the company
* It can be time consuming to find out the information in this method
Primary Data
Internet
www.cabury.co.uk
* The information is updated regularly as it is on the internet
* There is an important pack available on the internet, which is sent to the address given
* The data is very accurate as it is straight from the company
* The data collected is very much related to the company as well as the product.
* Some of the information is not relevant to the actual product.
* It can be time consuming to find out some information
Secondary Data
Mintel reports
Chocolate confectionary 2002
* The information given is very useful when analysing external influences.
* The data gives a very accurate picture of the market
* The Mintel records can not be removed from the library, therefore there would only be notes made from the Mintel records.
* The data is quite old and therefore the market may have changed.
* The data collected is about the general trends of the chocolate confectionary market, and therefore not relevant to the product
Secondary Data
Book
Essential business studies
* The book provides some very good aspects of marketing
* The book is not very up to date
* It does not relate to the product
Secondary Data
Book
AVCE advance business
* The book provides some very good aspects of marketing
* That data is up to date
* IT does not relate to the product.
Secondary Data
Book
Business studies: marketing
* The book provides some very good aspect of marketing
* The data is very accurate
* The book is not very up to date
* It does not relate to the product
Unit 3 - Marketing
