Why Cadburys dairy milk has been chosen
When Cadbury Dairy Milk chocolate was first introduced in the early 1900s it made an immediate impact quickly becoming the market leader. The success story has continued. It is still the top selling chocolate brand in the country. The famous slogan "glass and a half of full cream milk in every half pound" with the picture of milk pouring into the chocolate bar, is one of the all-time greats of British advertising.
The first two additions to the Cadbury Mega brand family were Fruit & Nut in 1928 followed by Whole Nut in 1933. The family has since been extended and there are now 10 varieties of Cadbury Dairy Milk bars in the range. In addition to Cadbury Dairy Milk, Fruit & Nut and Whole Nut are two of the best loved varieties of the Cadbury Mega brand.
Aims and objectives of Cadburys
Cadbury aims to achieve its objectives by cutting costs and generating sufficient cash from its key brands for continued support and investment.
To significantly enhance consumer’s perceptions of Cadbury and develop long term loyalty by:
- Giving the visitor a memorable, enjoyable and uniquely Cadbury chocolate experience
- Offering high quality and value for money
- delivering Cadbury values
Their objective is to maximise the value of Cadbury for our shareowners. Our aims to ensure that conditions within mainstream production chains. The attraction should be a leisure facility, reinforcing the public perception of Cadbury as the premier chocolate manufacturing company in the UK by feeding the thirst for knowledge about the chocolate making process
Public limited companies like Cadbury will have objectives such as:
- Maximise profit
- To be the number one product in a given market
- To maximise sales
- To grow
- To operate in a wide range of markets
- To give satisfaction to customers
- Have a good reputation
- Boost or maintain share market values
The different types and flavours of Dairy Milk and the nutritional information
Cadbury Dairy Milk - 49g
This product is also available in 85g and 250g
Cadbury Dairy Milk - Double Choc - 47g
This product is also available in 250g
Cadbury Dairy Milk Fruit and Nut - 49g
This product is also available in 85g and 250g
Cadbury Dairy Milk Caramel Egg - 39g
This product is also available in 85g and 250g
Cadbury Dairy Milk Mint Chunk - 31.5g
Cadbury Dairy Milk Wholenut - 49g
This product is also available in 87g and 250g
Cadbury Dairy Milk Turkish - 49g
This product is also available in 250g
Cadbury Dairy Milk with Wafer - 44g
Cadbury Dairy Milk with Caramel - 50g
Cadbury Dairy Milk with Biscuit - 49g
Cadbury Dairy Milk Shots - 200g
Cadbury Dairy Milk Bubbly - 36g
This product is also available in 181g
Cadbury Dairy Milk Freddo 20g
Cadbury Dairy Milk with Caramel Egg - 39g
Cadbury Dairy Milk Tre Novelties 115g
Segmentation
Segmentation is essentially the identification of subsets of buyers within a market who share similar needs and who demonstrate similar buyer behaviour. The world is made up from billions of buyers with their own sets of needs and behaviour. Segmentation aims to match group of purchasers with the same set of needs and buyer behaviour such a group is known as segment. Segmentation is a form of critical evaluation rather than a prescribed process or system, and hence no two markets are defined and segmented in the same way.
There are many ways that a segment can be considered they are:
- By Geography
- By Psychographics
- By Socio-cultural factors
- By Demography
Targeting is the second stage of the segment target position process. After the market has been separated into its segments, Cadburys will select a segment or series of segments and target them for example if they want to find out what people think about a certain product. There are three ways Cadburys could target their market which are:
-
Single segment product targets single product offering at a single segment in a market with many segments. For example Cadburys dairy milk has a high market reputation aimed at different people who are willing to pay more for it.
-
Mass marketing this is were differentiation is less important than cost Cadburys could aim a single products at all segments. An example of this is the approach taken by budgets airlines such as Go/Easy jet in the UK and Ryan Air in Eire.
-
Multi segment approach Cadburys will target a variety of different segments with series of differentiated product.
As well as the physical aspect of our store changing we have to look at the market differently. Where it was once possible to take a pile it high sell it cheap approach, to achieve broad appeal to the population we need to cater to the needs of the population. This is achieved by breaking the population into groups and then releasing products and services that meet the needs of these groups. This is known as target marketing. Although we all appreciate the theoretical economies of scale given by mass marketing a single product, there are few products that appeal to everyone. Naturally this has led to a segmentation of markets as companies that marketed one product, now produce a range of products. An example of this is Coca Cola. Originally they sold one product, as well as standard coke they now have diet coke, coke with vanilla, cherry coke, sprite, lilt and many more. By accepting that people have different needs and different shopping behaviours they can market themselves to these segments and attract new customers. There are six steps to market segmentation, targeting & positioning and these are
- Identifying qualities for segmenting the market
- Developing profiles of the segments created
- Develop measures of segment attractiveness
- Select target segment
- Develop positioning for each target segment
- Develop marketing mix for each target segment.
Geographical
It is possible to segment the population according to Geography; people from “the North” drink more Irn Bru than those from the South. This can be measured by the success of advertising, an example being the Jamie Oliver advert for Sainsbury’s was less successful in the north.
Demographics.
This is where segmentation is done by using personal characteristics of the population; Age, gender, income, stage in the family life cycle etc.
Socio Economic Grouping.
This is based upon the occupational status of the head of the household. It is based on the traditional social class system of this country ranging from Upper Class to lowest level of subsistence.
Geo Demographics
Gives a breakdown of demographic characteristics for a given area or charts the geography of a given demographic characteristic.
Benefits Sought
This relates to the different benefits the customer seeks from a product or service. It is concerned with identifying what characteristics customers commonly seek. It is looks at people’s usage rates of these products or services.
Psychographics
This looks at the lifestyle patterns of people and tries to identify how people spend their time and money. It is worth noting that two households with similar incomes, similar social standing, in similar locations may have very lifestyles with regard to holidays for example
Positioning
The image that Cadburys has positioned its self as is exclusivity, performance, technologically advanced, quality automobile producer. The markets Cadburys position them selves in are very competitive. This is due to the number of other manufacturers that produce chocolate of a similar quality, price, and image. The positioning of these companies and their brands has been built up over many years but Cadburys has stamped their mark upon the public in a positive way. This has lead to continuing sales growth through out the international car markets.
This is a chart showing the position of Cadburys dairy milk and the other range of competitor’s chocolate
This shows the positioning is about Cadburys and other competitors chocolate companies.
A target market is basically the type of person that you will want or need your product or services. By targeting a market, you will be able to save money by spending less on marketing and increase marketing. Once Cadburys have identified market a niche using target segmentation they will be able to concentrate their efforts on marketing to attract a specific consumer group. There are several ways you can go about segmenting a population to target a market. The following describes different aspects for market segmentation that will help you in identifying and maximizing the marketing money.
-
Demographics - Cadburys use this because they have to target the
- Age: they need to find out what age group like the product
- Income: They have to find out how much people would want to pay
For the product
- Family size: They would find out how many families would buy the produce e.g. they have a family size for a certain products.
- Education
- Occupation
- Gender
- Nationality/race
-
Geography: Region of the world: Cadburys is a world wide company
- Climate: a snow plow manufacturer will target.
- Value of quality
-
Psychographics: Personality
- Lifestyle
- Interests
-
Market research: Questionnaires
- Survey.
Market research
What is market research?
Market research is the collection and analysis of data in order to identify and satisfy consumer needs. Market research provides information on consumer needs and wants, competitors, the marketing mix and potential sales.
The main purpose is to reduce risk and facilitate decision making. It is particularly useful when launching a new product and ensures that the right goods are produced.
There are two main methods of market research – primary research also known as desk research and secondary research also known as field research.
Desk research, also known as secondary research, is making use of information that is already available. Internally the firm can draw on its own records. Different departments can provide information on sales trends, customers and costing, which are useful in the development of new products. Extensive published material can also be sourced externally. In addition the development of new technology such as the internet provides information at the touch of a button.
Field research or primary research is carried out by contacting potential consumers directly. It may include surveys, questionnaires and general observation.
Surveys involve questioning people directly about their attitude to a particular product or service. Surveys are usually carried out using a face to face interview or by telephone.
Because it is impossible to survey all target customers, sampling is used. A representative group or sample, whose views will accurately reflect the target population, is chosen. Questionnaires are lists of prepared questions which potential customers are asked to fill out.
There are two types of market research - quantitative and qualitative.
Quantitative research provides numerical data. At the completion of a quantitative project it is possible to say (for example) what proportion or percentage of the population fall into different groups – those that want something, those that would be likely to buy something, those that are in favour of a particular policy or plan, etc. The essence of quantitative research is that every respondent is asked the same series of questions.
Quantitative research can be carried out in various ways including face-to-face interviewing, by telephone, by post and self-completion questionnaires.
Qualitative research provides an understanding of how or why things are as they are. It can be used on its own or to help in the development of a questionnaire for a quantitative study. There are no fixed set of questions and therefore no assumptions about what is, or is not, important. Instead there is a list of topics, problems, or
possibilities to be explored. The informant’s own concerns or assumptions heavily influence the form and nature of the discussion. Qualitative research can be used for everything from testing reaction to a potential new advertising campaign, to exploring staff attitudes to a new management structure or procedure. There are various sorts of qualitative research, including unstructured interviews and focus groups (group discussions).
Analysis of my questionnaire
In this analysis I would cover all the information I gathered and would be explaining them. This is primary research
Do you eat chocolate?
This chat shows how many male and female like chocolate the result shows the females like it the most.
Age group that eat chocolate
What type of chocolate do you prefer?
Is there any other chocolate brand you prefer to Cadburys dairy milk?
What is your occupation?
This tally table shows that the people that I gave my questionnaire to
Most of them are students and they like chocolate and few of them are unemployed.
Which of the dairy milk products do you prefer?
This tally chart shows how many people like the different types of chocolate and as the result shows they mostly like fruits and nuts and caramel.
What promotional tools do you like on chocolate?
This tally shows that most people like buy one get one free promotional tools.
On a rating of 1-10 what do you thinks of Cadburys Company?
What Cadburys dairy milk chocolate do you prefer?
This pie chart shows that most people like the dairy milk chocolate and the fruits and nuts but people don’t really prefer the rest.
Where do you buy your chocolate from?
This chart shows that a high percentage of people buy their chocolate from the off-license and supermarket.
Limitations of my questionnaire
A questionnaire is a list of written questions that can be completed in one of two basic ways:
Firstly, respondents could be asked to complete the questionnaire with the researcher not present.
This is a postal questionnaire and (loosely) refers to any questionnaire that a respondent completes without the aid of the researcher.
Brief Outline of Method
A questionnaire is a list of written questions that can be completed in one of two basic ways
Firstly, respondents could be asked to complete the questionnaire with the researcher not present. This
is a postal questionnaire and (loosely) refers to any questionnaire that a respondent completes without
the aid of the researcher.
Secondly, respondents could be asked to complete the questionnaire by verbally responding to questions
in the presence of the researcher. This variation is called a structured interview.
Although the two variations are similar (a postal questionnaire and a structured interview could contain
exactly the same questions), the difference between them is important. If, for example, we are concerned
with protecting the respondent’s anonymity then it might be more appropriate to use a postal
questionnaire than a structured interview.
Questionnaires are restricted to two basic types of question:
Closed-ended (or “closed question”) is a question for which a researcher provides a suitable list of
responses (e.g. Yes / No). This produces mainly quantitative data.
Open-ended (or “open question”) is a question where the researcher doesn’t provide the respondent with
a set answer from which to choose. Rather, the respondent is asked to answer "in their own words". This
produces mainly qualitative data.
Strengths
1. The format of questionnaire design makes it
difficult for the researcher to examine complex
issues and opinions.
Even where open-ended questions are used, the
depth of answers that the respondent can provide
tend to be more-limited than with almost any other
method of research. This makes it difficult for a
researcher to gather information that is rich in depth
and detail.
2. With a postal questionnaire, the researcher can
never be certain the person to whom the
questionnaire is sent actually fills it in. For example,
if your research is concerned with finding-out the
opinions of women on a range of issues, it would be
less than useful if an unknown number of the
questionnaires sent by the researcher were filled-in
by men
3. Where the researcher is not present, it's always
difficult to know whether or not a respondent has
understood a question properly.
4. The researcher has to hope the questions asked
mean the same to all the respondents as they do to
the researcher. This is a problem that can - to some
extent - be avoided by conducting a Pilot Study
prior to conducting the real survey
5. The response rate (that is, the number of
questionnaires that are actually returned to the
researcher) tends to be very low for postal
questionnaires. A 20 - 25% return of questionnaires
is probably something that most researchers would
happily settle for and this may mean that a
carefully-designed sample becomes
unrepresentative of a target population.
6. The problem of the self-selecting sample is
particularly apparent in relation to questionnaires.
When a response rate is very low the responses
received may only be the opinions of a very highly
motivated section of the sample (that is, people with
strong opinions who take the time and trouble to
complete and return a questionnaire).
Applied Business Debbie Awofisayo Unit 3