Evaluate the marketing strategy of Cadbury's Fuse Bar making recommendations on how they may be developed.

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Robert Machin

Evaluate the marketing strategy of Cadbury’s Fuse Bar making recommendations on how they may be developed

Introduction

In September 1996 the Cadburys Fuse bar was launched and before this they did a lot of marketing. My job is to evaluate the way they marketed the product and make recommendations. To do this I will have to conduct some surveys and questionnaires.  The key word in this question is marketing this is the management process, which is responsible for identifying potentially profitable products and then selling them to customers. (Anderton) In marketing you have to take the marketing strategy or mix into account. This is the combination of factors which help the business sell a product – usually summarised as the 4 Ps, which are price, product, promotion and place. (Anderton) Once these things have been taken into account I can evaluate the marketing strategy used by Cadbury.

The 4 Ps

∙ Designing and developing a new PRODUCT, that is satisfies the needs and wants of the customer.

∙ Getting the PRICE right so to make profit and to be affordable for the customers

∙ Making sure the customer knows it’s out there by PROMOTION

∙ Making sure it is on sale at the PLACES where it is convenient for the customer to buy it.

I will analyse the chocolate market using two sources of information

∙ Secondary data, which is using information someone already has found. For example the Cadbury website

∙ Primary data, which is collecting data from people which has not been done be for.

When using these things I have to take into consideration the boundaries that I face in carrying out my research and evaluating the bar.

For this coursework a have to go by these boundaries

It must be typed on a computer

The word limit is 2500 words

I have limited financial resources

These boundaries have to be taken into account when marking this coursework assignment.

 The stages of Market Research

Keeping to the boundaries I have I still can use this flow diagram when doing my coursework:

        

I need to complete my research and analyse the information then use graphs and other techniques so then I can draw conclusions and make recommendations on how their existing strategy can be improved.

The chocolate bar I am studying Fuse is made by the subsidiary of Cadbury Schweppes plc. Cadbury Ltd.

Background on the market

 

In the UK confectionary market there are 3 dominated companies these are: Cadbury Schweppes (producers of the Fuse), Mars and Nestle. These are all oligopolies because there are only a few dominated companies. Having oligopolies in a market means that the products they make will tend to sell will tend to have very similar prices.

On Average people eat 35lbs of chocolate a year proving the hugeness of the market. Most of the consumption of chocolate is done has an impulse purchase and can be known to replace meals in a day. The advertising in this market is also fierce and costs’ a lot so launching a new bar is going to be hard and expensive.

                                             

Background on Cadbury

In 1824 a man named John Cadbury started a small business selling chocolate. He thought alcohol was the source of poverty so he offered something different like tea coffee and chocolate. The Cadbury family had very good factories for workers conditions because they had a sick club in case of illness and they didn’t have to work on Saturdays. He used to make the chocolate differently than today but he made a lot of money and later his company turned into the huge company it is today

Cadbury Schweppes

This company employs over 40,000 people worldwide it sells many beverages and confectionary brands to people from all different consumer segments.
In the confectionery business, Cadbury Schweppes is the world's fourth largest supplier of chocolate confectionery. The Group has manufacturing plants in 25 countries and sales 165. Cadbury Limited is Cadbury Schweppes' UK confectionery operation and it is responsible for the production of all of Cadbury's best-known UK brands i.e. Fuse

Cadbury Schweppes is also very big seller in the beverage business it is ranked number 3 worldwide.


The Consumer

A business should always find their target audience so they can get the best sales. The target audience can be split up into segments.  

Customer segments

The market segments are categories where people are spilt depending on the needs and wants of the consumer. Examples could be:

∙ Age

∙ Gender

∙ Income

∙ Where they live

∙ Hobbies

∙ Minority/Ethnic/Religious groups

∙ Socio-economic groups these are groups rated on the type of job you have they go from A B C1 C2 D E.

Cadbury target Audience

Cadbury thought that the Fuse bar should be aimed at 16 to 24 year olds and both genders. They came to this idea through extensive research both primary and secondary. They also came to a decision to make the chocolate bar for people “on the go” meaning they have very busy lives and don’t have time to sit down to a roast dinner but just grab a chocolate bar instead. Knowing their target audience gives them the right way to market the price, place, promotion and product at the people who are most likely to buy it so they can achieve maximum sales so maximum profit.

I am carrying out my own research to find out if Cadbury had got the right audience for their product so I can evaluate there marketing and make any recommendations on the way they marketed it.

On carrying out my primary research into this I will be using a questionnaire that people can answer then I can analyse. It is going to be a random sample of age, which will represent the make up of larger audiences. The reason I am using this way of carrying out my research is because I need to find out if Cadbury had their audience right with age and gender and busyness being a factor. I also feel a questionnaire is the best way of recording my results because I can keep it all multiple choice questions which will make them numerical so I can plot them on graphs to analyse them better.

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The analysis of primary research (see questionnaire)

I did a questionnaire on 12 males and 6 females and all split into 5 age groups 5-10 11-15, 16-25, 26-35 and 36+. I asked them 12 questions about chocolate and the Fuse bar.  

My Results of my primary research show us that the main target audience for Cadburys Fuse bar are young men  around teens and women of most ages because these people seem to eat the most chocolate so they are most likely to buy it. (See graph on ...

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