Primary Research
Primary research is also known as field research and is about collecting information from scratch meaning that you will be the first person to gather the information. The benefit of collecting information first hand is that you get to solve the problem first. The advantage of doing primary research is that you can get information on the specific question or problem you need answered and the information is related to the organisation.
The methods of collecting primary information are the following:
The interviews can be done in many different ways for example it can be done by telephone, face to face and the internet.
Mystery shopping is a research method used to collect information about the businesses products and services. The mystery shoppers will enter a shop and pretend they are real customers. The purpose of mystery shoppers is to help businesses increase sales and improve employee customer service awareness.
Focus group research involves organised discussion with a selected group of individuals to gain information about their views. These views of the peoples are put together by the highly experienced researchers.
The projective technique is from the field from psychology. Imagine that you are a product and describe what it is like to be used.
Product test is a part of the marketing process. The products are getting displayed in a shop for example. They ask the customer to visit and they look at the customer reactions to the product.
Diaries are getting used by the selected customers. The customers are asked to complete the diary for purchasing behaviour over the time period e.g. monthly, yearly.
The omnibus study is where different organizations’ questions are put into one questionnaire with the hope of achieving the same aim.
The methods of collecting primary information for Cadburys are;
Cadburys use this research method to collect information. Cadburys go through different interview stages; the most useful method that Cadburys go through is face to face interviews. The interview that Cadburys carry out is managed by market researcher(s). The researcher of Cadburys will collect all the data on a survey. This survey that has been created by Cadburys will contain different types of questions and these questions will be asked by the market researcher to the candidate. These research methods help Cadburys to understand their customers because the market research will contain all the developed points and concerns about Cadburys LTD.
Cadburys uses this method of research to collect data and to discuss ideas about Cadburys. Cadburys gets together with group of 10 highly experienced researchers. The discussion of opinions and beliefs is encouraged and the research will investigate into specific areas that are of interest to Cadburys.
This research method is used by Cadburys to check their products before launching to the market. Cadburys chooses busy places e.g. shopping centres to run their product test. This is to ensure that more people try the new tastes of Cadburys. The company then asks customers to try the new products. Experienced researchers will then look at the customers’ reaction towards the products and will ask question about the product tastes.
Product development process is what Cadburys uses before placing their product in to the market. If Cadburys follow up this process correctly it can improve its knowledge about launching the product at the right time and place. This process starts with ideas from group members and at the end of the process Cadburys will launch their product to the market.
This research method used by Cadburys to collect information and ideas from different organisation. Different organisations including Cadburys questions will put into one questionnaire. Then they will ask customers to complete. This method is useful to companies because they get to know their competitors thoughts.
www.business2000.com
Idea generation
Ideas for a new product are
thought up
Product screening
The ideas are assessed and the most promising one selected
Concept development
The idea is turned into a
finished product
Prototype development
A model of the product is made
Feasibility study
The product is assessed to
determine if it is viable
Test marketing
Market research is carried out to determine consumer reaction
Launch
The product is introduced to
the market
Section 1 Task 2 (B)
Secondary Research
Secondary research is also known as desk research. It describes information gathered for other purposes. This can be done through books, newspapers, internet, and government statistics etc.
Advantages
- It is cheap to use the information
- You have easier access to the information
- It saves you time
- There are large amounts of information which can be used
- Everyone has access to the data
Disadvantages
- The information is not up to date
- The information is not always relevant
- There are large amounts of information
The secondary information can be collected in two ways:
- Internally-The information that can be collected within the business. This can be an advantage for the business if it’s being used as first choice for research.
- Externally- Information can be collected outside the business. The advantage of collecting information from outside is that there are a lot of data which can be used. The internal information can have limitations.
The methods of information collected internally
-
Records of sales -Number of items sold frequency and where purchased in the market.
- Accounts-The sales figures, cost and profit figures for individual items which have been sold
- Regional sales trends
- Analysis of the type of customer
- Life cycle of individual items
- Previous market research
The methods of information collected externally
- Social trends
- Economic trends introduction
- Office for national statistics
- Family spending
- National Import and Export statistics
- Population distribution
- Commercial organizations trade association and professional bodies
- Confederation of British industry (CBI) Charted Institute of Marketing Chambers of Commerce
The methods of collecting internal secondary data for Cadburys are;
Cadburys uses this method to analyze through the stock levels, the items which they have sold and they also use this to find out how many items they sold in the previous products. Cadburys then use this data to manufacture more products if needed. Cadburys also get to find out the level of products they have sold. Cadburys also have the access to find out if the consumer liked the products which have just been launched or those which have already been ready in the market for years.
- Life cycle of individual items
Cadburys use this method to find out how long their previous product stayed in the market. By using this method Cadburys get to manufacture their products, to help Cadburys LTD develop strategies to keep products longer in the market.
This method helps Cadburys to understand their previous market requirements. Also Cadburys encourage the company’s marketing arrangements through organizing and planning before making a start on production.
Cadburys use this method because it helps the business to evaluate and understand the previous social and economical trends which have been used in current products. This internal research method will contain all the data about Cadburys’ competitors, customers and all the products in the market.
- Analysis of the type of customer
Cadburys study their consumers before launching their new products. This is to make sure that the products they are launching are marketed to the right customer. When Cadburys does research about the customer they look at the age groups. For example what kind of chocolate does a 16-20 year old teenager like it? If the research has been completed Cadburys will then know what kind of people are their consumers.
The methods of collecting external secondary data for Cadburys are;
Cadburys use this method to find out about their customers attitude towards their products and Cadburys get to know about the demand trend for their customer’s age group.
Cadburys does research to figure out how much a family spends on Cadburys products. This method helps Cadburys to find out if the customers buy their products and amount of money they spend on the product.
- Population and distribution
Cadburys uses this research method find out about their consumers. The business obtains this information from government statistics. The research method will help Cadburys to find the population living in the area. Cadburys then market their products where the distribution is high. Cadburys also get to find out number of people who buy the products.
- National import and export
Cadburys uses this method of research to find out the ways which they can sell their products within and outside the country. Cadburys LTD export cocoa from West Africa or from Asia and they import it into the UK.
Section 1 Task 2 (C)
How does Cadburys LTD use primary research to understand its;
Interviews-This research method helps Cadburys to understand their customers because the market research will contain all the developed points and concerns about the Cadburys LTD.
Focus groups -From this research Cadburys will get to recognize their customers, thoughts and their ideas. Cadburys will then provide quality service and products to customers’.
Omnibus studies- this primary research method help Cadburys LTD to find out about their competitors. Cadburys LTD get to know how to compete with their competitors by providing better quality products than the competitors.
Interview– Cadburys will use interview method to understand it chocolate market.
Omnibus studies- this method is sued by Cadburys to understand chocolate market.
How does Cadburys LTD use secondary research to understand its;
Records of sales- Cadburys gets to understand and know their customers needs and wants because the business gets to know the level of product they have sold in previous research they have done and they get to know the customers taste on the product. By doing this research Cadburys will get to know when and where to place the product.
Life cycle of individual items- Cadburys Ltd gets to understand their customers and chocolate market by using this research method. Cadburys gets to know their consumers reactions on the previous products. They also get to know if their consumers are satisfied with Cadburys previous products.
Previous market research- This research method will also help Cadburys to get to know their customers, and competitors. This is because the information will be already having been collected and ready to be used and Cadburys will have picked up the relevant data. This is to make sure that will satisfy the customers and needs and wants from Cadburys.
Analysis of the type of customer- This method helps Cadburys to find out about their customers of all the products they have launched in previous years. Cadburys is also entitled to find data about customers’ names, the products they buy regularly. Cadburys get to use this data to produce new products to the right people. This will help Cadburys to succeed within the market because they get to know their customers.
Social trends- This method will also help Cadburys to find out about their customers and market. The business then uses the research method to make consumers satisfied with the products.
Family spending- This research helps Cadburys to understand their customers and they get to manufacture more products that customers buy regularly. They also launch more products to give customers more choice when selecting new types of Cadburys products.
Previous market research- this method will help Cadburys Ltd to understand its customers.
Record of Sales –Cadburys gets to find out how their competitors did in the past year and if they made a profit or not.
The following research methods help Cadburys LTD to find about their market environment. The reasons for these research methods are defined in the above secondary research methods.
Social trends
Record sales
Life cycle of individual items
Section 2 Task 3 (A)
SWOT analysis is a tool for investigating an organization and its environment. SWOT stands for Strengths, Weaknesses, Opportunities, and Threats. Its purpose is to identify company strengths and weaknesses so that strengths can be maintained or increased and weaknesses corrected. It is also to identify opportunities and threats ensuring from external factors especially those that have an effect on the company's strengths and weaknesses. Company strengths and weaknesses need to be identified in all conditions of the business such as is it relative to the rest of the market i.e. compared to competitors, relative to previous performance or expected performance, relative to customer demand for example all companies in an work may fail to satisfy a particular customer need.
Cadburys SWOT analysis
To develop an appropriate marketing plan would involve creating a link between the external environment and the internal strengths of Cadbury's.
To enable a SWOT analysis to be carried out, research into Cadbury's current and future positions need to completed. This would result in building upon its strengths, minimise its weaknesses, control its opportunities and cancel out the threats.
S.W.O.T analysis for Cadburys LTD
S.W.O.T analysis for Cadburys dairy milk MINT CHIPS
SECTION 2 Task 4 (A)
Marketing Strategy
Marketing strategy is involved with identifying and meeting the requirements of customers successfully so that the organisation can meet their objectives.
For example marketing strategies in Cadburys Ltd require detailed research to find out about:
- Customer requirements
- The right products to develop to meet customer needs
- How to position the product or service in relation to other products and services
- The right marketing mix
The 4ps for Cadbury Ltd products
The 4 P's are Product, Place, Price and Promotion. The 4 P's are important because they help businesses sell their product effectively and successfully, they are the most important part of a marketing campaign. If the business doesn't use the 4 P's for their product it has a very low chance of succeeding.
Product
Cadburys sells many different products to the widest range of people possible and to do this Cadburys Ltd design the product as different as possible or make them seem different to their competitors e.g. Mars.
Cadburys new chocolate “mint chips” colours are bright violet and aqua. The shape of Mint Chip was established to deliver a good taste experience. The format of the chocolate is suitable for bite size and it is preferred by the customers for squared block chocolate.
Cadburys Ltd packaging on a product is also very important because they design the package to grab the eye of the segment in the market.
The packaging of the mint Chip is designed to fit with the product’s image of being mint.
Cadburys researches to find suitable packaging for their new products. This is to make new products to be modern and quality chocolate bars that are different enough to catch the consumer’s eye on a shelf.
The ingredients that have been used in this product are: milk chocolate (milk, sugar cocoa mass, cocoa butter, vegetable fat, emulsifiers (E442, E476), and flavourings), mint granules (14%) sugar, glucose syrup, vegetable fat, flavouring, and molasses.
The nutrition Information: Per bar energy1035kj/245 kcal protein 3.2g, carbohydrate 30.0g, fat 12.8g, per 100g energy 2115kcal, protein 6.5, carbohydrate 61.2g, fat 26.1g.
Cadburys uses these ingredients and colours to meet the wants and needs of the customers and satisfy them with the products. The research that the Cadburys has done shows that the Cadburys dairy milk mint chip is one of the most popular flavours. The research shows that the 83% of the customers purchase Cadburys dairy milk mint chips.
Price
Cadburys dairy milk mint chips will be priced at 39p.Cadburys Ltd set this price to Mint chips because the chocolate bars in the market are usually set around the same price. Cadburys Ltd do this because there is not much brand loyalty to chocolate and if the price of your chocolate bar went up a lot then people would just start buying other products similar to Mint Chips.
Skimming- Cadburys Ltd does not use the skimming technique over the Mint Chips because people are not prepared to pay too much just for a chocolate bar whether it is new or not.
Penetration-This technique has been used by Cadburys to encourage more customers to buy the product Mint Chip.
Promotion-Cadburys will do discounts for buying over a certain amount of the Mint Chips chocolate bar.
Place
Cadburys Ltd manufacture their new chocolate bar Mint chips;
Manufacturer (Cadburys)
Wholesaler
Corner shops, Newsagents
Customers
In a shop the chocolate will in most cases be at the front or near the till, this is because when people are paying for their other things they will see the chocolate and pick it up. This will be advantage for Cadburys Ltd because the more customers buy the more shop owners will order.
Promotion
Sales Promotion-Cadburys Ltd uses many different techniques to encourage people to buy from Cadburys products range. When launching Mint chips Cadburys Ltd give the buyer extra % free this will include more chocolate than customers would usually get with the bar. Also Cadburys Ltd will use tokens to get more people to buy Mint Chips.
Tv Advertising- Cadburys Ltd one of the useful advertising method is TV. Cadburys Ltd uses Coronation Street to advertise because the chocolate Mint Chips can reach a wide range audience.
Magazine-Cadburys uses magazine as another method of advertising and it is useful for Cadburys because the targeting can be linked features.
Product
The colour of the product is mixture of green and orange. The shape of the Boost Guarana is a rectangle and the size of the product is e 60.5g
The ingredients are: centre (68%) (Glucose solids (18%) (glucose syrup, dried glucose syrup),, hydrogenated vegetable oil, sugar, dried skimmed milk, biscuits (5%) wheat flour, sugar, hydrogenated vegetable oil, methyl cellulose, salt, malt extract, flavouring, raising agents, tartaric acid sodium bicarbonate, milk, glycerol, cocoa mass, dried whey, emulsifiers, Soya lecithin, E471,E442 guarana,0.1% flavouring ,caffeine, milk chocolate cocoa mass, cocoa butter, vegetable fat, emulsifier E442 flavouring.
Nutrition information: per bar energy 1300 kj/310 kcal protein 3.4 carbohydrate 35.5g fat 17.2g per 100g: 2145 kcal, protein5.6, carbohydrate 58.4g fat 28.
The Boost Guarana has been launched to meet the consumer need and to encourage the mind and balance a busy lifestyle. The test marketing shows that the Boost Guarana has successfully achieved the target. The Boost Guarana competes with by energy drinks and this market is worth an estimated £750million.
Price
The price that Cadburys charge for Boost Guarana is 41p.
Skimming-This technique wont be very useful for Cadburys Ltd because if price high for a chocolate there is more chance to not succeed. This is because people are not willing to pay too much on a chocolate.
Penetration-This technique has been used by Cadburys to encourage more customers to buy the product Boost Guarana. When Boost Guarana launched Cadburys give lower price to its customers. Then Cadburys decided that a lot of people are buying their product they increase the price.
Place
Cadburys Ltd some method to sell their products they manufacturer to retailers will sell it to corner shops and then the product will go through to customers.
The Boost Guarana is also sold on the direct (internet) websites for wholesalers and retailers.
Promotion
Sales promotion -tokens are another way which has been used by Cadburys Ltd to get more people to buy your product. Consumers have collected a certain amount of tokens to receive a gift.
TV advertisement-Cadburys used Coronation Street to advertise Boost Guarana.
Product
The colour of Dream chocolate is a mixture of blue and white and it has been used for their attractiveness. The shape format and size of the Dream chocolate is a squared block chocolate format. This design and shape of the chocolate has been designed by the preferences customers’. The packaging of Dream chocolate is designed to fit with the products image of being soft and it is to appeal to the target market.
The ingredients of Dream chocolate are: Sugar, milk preparation (dried whole milk, dried way) cocoa butter, vegetable fat, emulsifier (Soya lecithin), flavouring. It may contain traces of nut, egg and wheat.
Cadburys has successfully marketed Dream chocolate in the marketplace and has have achieved the targeted audience. The research that Cadburys has done shows that 80% of consumers purchase Dream chocolate. “Dream chocolate has quickly become the UK’s number one adult moulded white chocolate bar. More than 10% of the population has already bought Cadbury Dream, and of these 70% were new consumers to the white chocolate market”.
www.cadburys.com
Price
The price that Cadburys will charge is 39p.
Skimming-This technique has not been used fro Cadburys Dream chocolate bar. This is because the research that Cadburys have done shows that the people are not willing to pay too much on a chocolate.
Penetration-This technique has been used by Cadburys to encourage more customers to buy the product Boost Guarana
Promotion-Cadburys will do special discounts for buying over a certain amount of the Mint Chips chocolate bar.
Place
Cadburys has delivered Cadburys Dream to all supermarkets in the UK and to a wide range of retailers and wholesalers. They also use internet to sell DREAM products to wide range of consumers.
Promotion
Sales promotion -tokens are been used by Cadburys Ltd to get more people to buy your product. Consumers have collected a certain amount of tokens to receive a gift from Cadburys.
TV advertisement-Cadburys used Coronation Street to advertise Cadburys Dream. Consumer magazine-This is being used to advertise Dream.
SECTION 2 Task 4 (Merit 1)
Merit 1
In this part of the report I will be discussing advantages and disadvantages of primary and secondary research. I will also be explaining ways of Cadburys maintain the advantages and how to improve the disadvantages. I will be showing this with Cadburys figures.
Advantages and disadvantages of primary research
Advantages of face to face interview
- Flexible and easily controlled
- Extra questions can be asked
- The body language can be seen
- You can discuss things in detail
Disadvantages of face to face interview
- Interviews can be expensive
- It can take a long period of time to arrange and carry out
- Needs trained interviewers
- Can be unrealistic unless people are carefully selected
Effectiveness of interview research method
This method would be good for Cadburys to use because it would mean that they got a wide range of opinions of a lot of different people.
Advantages of focus groups
- Can be used in depth investigations with immediate reaction and feedback
- All members and the researchers work together
- You get ideas from different group members
Disadvantages of focus groups
- Highly experienced researchers are needed.
- Difficult to organize
- Can be very expensive
Effectiveness of the focus group method
This method would also be good for Cadburys because they could easily find out how their existing customers will react to their developed products.
Advantages of product test
- You get to know reactions of customers before launching your product
- It is a cheap a method to use
- You get wide range of first hand responses
Disadvantages of product test
- Customers tastes and requirements change you can not base your data
- They might not say their true thoughts about the product
- Customers may not want to try
- they might not want to spend their time on answering their questions
Effectiveness of the product test method
This method would be very useful to Cadburys because they could get people to taste their new or developed products and get a wide range of first hand responses. But this method can be disadvantage as well because people tastes are changing.
Advantages of product development
- It improves the knowledge about launching the product
- You get to know where and when to launch
- You get ideas from group members
- You get to know the reactions of the customers before launching the product
- It is a cheap method
Disadvantages of product development
- You might choose, wrong time place to launch
- Your data might not be accurate and you may launch your product at the wrong time and place
- The ideas that group member bring up may not be correct
Advantages and disadvantages of secondary research
Advantages of record of sales
- Cadburys get to know the stock level they have sold
- They know the areas which needs more stock
- They find out the level of products they have sold
- Cadburys get to know if the customers liked the product by looking at stock level
Disadvantages of record of sales
- The figures might not be accurate
- Data might not be updated
- The tastes and requirements of consumers might change and it is not a good idea to manufacture a lot of stock to one area
- Life cycle of individual items
Advantages of life cycle of individual items
- Cadburys get to find out about the period of previous product stayed in the market
- It helps to develop strategies to keep product longer in the market
Disadvantages of life cycle of individual items
- You can not base your new product launch to previous product because the customer might not like your previous product
- The data might be out of date
- Tastes of customers always change so you can not relay your new product to previous product
Advantages of previous market research
- Cadburys get to understand their previous market needs and wants
- By using this method Cadburys gets to organise and plan things in the company
- They will know what research methods they have used in the previous products.
- It saves time, they got information ready to use
Disadvantages of previous market research
- It may not be exactly what Cadburys want
- It may not be up to date
- The taste of your previous product may be different than new product so you can not relay data
- Analysis of the type of customer
Advantages of analysis of the type of customer
- Cadburys get to know their consumers before launching their product
- They know what age group to market their product
- Cadburys cab base their new launch on previous product figures
Disadvantages of analysis of the type of customer
-
data may be out of date
- different customers have different requirements
The methods of collecting external secondary data for Cadburys are;
Advantages of social trends
- Cadburys get to know about their consumer attitude towards the product
- They know about the demand trend for their customer’s age group
Disadvantages of social trends
- Customers tastes and requirements will change
Advantages of family spending
- Cadburys know the figure of family spends on Cadburys products
- they get to find out if the customers buy their products
- they know the amount of money customers spend on the Cadburys product
Disadvantages of family spending
- May be difficult to measure trustworthiness of the data
- People tastes are keep changing and Cadburys can not relay their new launch on this method
Effectiveness of the family spending method
-This method would not be very useful to Cadburys because they would only be interested if the shopper bought chocolate and nothing else, so it would be a waste of time and money.
- Population and distribution
Advantages of population and distribution
- Cadburys collect data about government statistics
- Cadburys get to find out about the population living in the area
- they get to manufacture more products in the areas they research
- Cadburys get to find out about number of people buy their products
Disadvantages of population and distribution
- The population can go up or down you can not relay your data
National import and export
Advantages of national import and export
- Cadburys get to use different techniques to sell their products within and outside the country
- People are more interested products which is export from other countries
Disadvantages of import and export
- Something might happen within the country and this will affect the product
What does Cadburys has to do to maintain ADVANTAGES?
For Cadburys to maintain the above advantages they will have to check their system regularly. This is to make sure that the business is under control of the managers. Also if these systems checked regularly they can provide their customers quality services and products. Cadburys will have to update their information.
What does Cadburys has to improve DISADVANTAGES?
Cadburys can do a questionnaire and ask people in the street to find out if they are happy with the products and services. With the information gathered they can improve their products quality and methods which they use. By using questionnaire they improve their disadvantages and they will provide them their wants and needs.
Constant Currency1
2003 2002 Reported Growth % Growth % excl.
Growth % Acquisitions&
Disposals3
Turnover £m 6,441 5,298 +22 +22 +2
Underlying Operating Profit £m 1,052 983 +7 +10 -1
Goodwill/intangibles amortization £m (129) (64)
– Operating exceptional items £m (224) (53)
Group Operating Profit £m 699 866 -19 -13 -11
Profit Before Tax £m 564 830 -32
Underlying Profit Before Tax2 £m 922 935 -1
Basic EPS p 18.2 27.4 -34
Underlying EPS2 p 32.0 32.0 – +2 +2
The above figures show that the CADBURYS LTD is maximizing their profit and sales within the last two years 2002 and 2003.Every year the sales is increasing this means that the Cadburys is making profit. From 2002 to 2003 the profit has increased from £5,298 million to £6,441 million. Also the results summarized in the above table confirm that the market research that Cadburys has done worked well during the two years.
Ways of maintaining profit
- In order Cadburys to stay ahead of competitors, they can try to provide new products.
- Cadburys LTD can concentrate on making goods or providing services for which demand is growing.
- They can try to save as much as possible on its factors of manufacturing this means that Cadburys can use the cheapest labour and machinery.
- Cadburys can motivate and award their shareholders and employees in order to collect best from them.
SECTION 2 Task 3 (Merit 2)
In this part of the assignment I have been asked to produce an S.W.O.T analysis for another similar product to compare with new Dairy Milk Mint Chips. I have done research to find out about more established product in the chocolate market. The product that I have found out is Nestlé’s After Eight Chocolate.
Nestlé’s After Eight Chocolate
After Eight chocolate was first launched to the market in 1963, serving as the perfect complement to many dinner parties and celebrations within UK. After Eight is a family products offers a variety of choices, including luscious chocolate Thin Mints, Delights and Biscuits. The chocolate is available in more then 60 countries, and the chocolate is also the world’s best selling mint chocolate.
2003 2002
Sales 65 460 57 560
EBITDA 10 171 8 826
EBITA 8 189 7 063
Net profit4 883 4 623
Equity before proposed appropriation of profit of Nestlé S.A. 29 742 25 049
Market capitalisation, end December 96 6748 1 560
Per share
Net profit USD 12.60 11.95
Equity before proposed appropriation of profit of Nestlé S.A. USD 76.85 64.62
The above figures show that the Nestle has made profit and maximized their sales within the last two years 2002 and 2003.this means techniques of Nestle worked well within last two years.
SECTION 2 Task 4 (Merit 3)
In this part of the assignment I have been asked to analyse the strategies used in task 4.
Cadburys NEW DAIRY MILK MINT CHIPS
Cadburys Dairy milk BOOST GUARANA
Cadburys DREAM
