To find out exactly what customers want Cadbury also carry out their own primary research by asking people to fill out questionnaires. They could do this to find out what people want or they could go to another company and try buy information that the other company has already gathered, this is their secondary research.
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Price- Cadbury use competitive pricing so that their product cost’s about the same as similar products from competitors, from each bar Cadbury make 3p profit so its important to keep cost’s low so that they make a bigger profit,
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Place- where the product is placed is crucial to the sales of the product what you see is what you sell. Hotspots for companies like Cadbury is the end of the gondola, the entrance as all people walk past the entrance and end of aisles and Cadbury needs to use this presence marketing strategy to make people see and then buy their product
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Promotion- Cadbury sponsor Coronation Street, choosing who you want to be associated with is very important because you don’t want to give the wrong impression about your company. Cadbury Dairy Milk was the best selling product from Cadbury Trebor Bassett so, 2003 the Purple patch focus group helped to make a master brand which made most of Cadbury Trebor Bassett’s product associated with Cadbury Dairy Milk because it was the best selling product so people will try the other products because they will think that they are also good because they know it’s the same company that make Cadbury dairy milk.
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Product- Cadbury can have brand loyalty which is encouraged through the use of the same logo on each product and use of colour (purple) this makes people be aware that the product is from the same company as their favourite chocolate bar so they will try the other products because they must also be good if their from the same company. Some product do not do so and get bad publicity like the salmonella scare in Cadbury cream eggs which ment that the product had to be withdrawn from the shelves which would have cost Cadbury a lot of money.
I found an article in “the Times” on June the 11th about Cadbury, in it was;- that Cadbury Schweppes are changing their investments to slightly healthier options to meet the change of more health conscious customers. Cadbury have decided to put 66% more money into the “lite sweets” market, this means that they are increasing on artificial sweeteners, flavouring and changing some of the existing products into new low-calorie model, in total spending from £78 million now to £126 million by 2009. Cadbury will also be putting £500 million into more research over the next five years! Cadbury Schweppes’s chief scientific officer said that “ low-sugar products were a core part of its strategy” and that the company is looking to create its own artificial sweetener. 80% of Cadbury’s total sales is from some confectionery categories such as chewing gum, low-sugar products.
On the Cadbury Schweppes website its says that they listen to consumer needs which helps them offer products that are delicious and enjoyable.
On the independent’s website there is an article about a new Cadbury advert, in the article it talks about how past ads have shown that Cadbury is generous with the “a glass and a half” but they want to show joy and pleasure in their chocolate, Cadbury said that they’ve created a branded space in which Cadbury's can be generous in bringing joy, this shows that Cadbury want to give to their customers and treat them.
On the product lifecycle Cadbury in general are in growth, this is because in 2005 their total revenue was 6,432 million and last year it was 7,427. Their revenue increased by 995 million, which is a massive amount over just one year! From this evidence we can see that Cadbury are a very successful company that keeps growing!
Evaluation
Cadbury do a lot of marketing to get their product known, they find out what people like and want through looking market maps. They identify a niche in the market or somewhere where they are not present where they could be and doing questionnaires too find out what people want, eg. Chewing gum market, where Wrigley’s had 98% of the market and after 6 weeks of introducing trident sugar free gum they made up 14% of the Market from Wrigley’s. For their introduction of trident launched a TV campaign (which cost them £5 million) to get their product known in the UK. Sometimes thought the marketing and research that Cadbury do does not pay off for them, like Cadbury had a product called 24-7 mints, this product failed mainly because it did not fit in most people pockets when they went out clubbing and was priced too high at 99p where they competitors products were only 40p. Cadbury might not have done their market research properly or they took a risk that didn’t pay off. This doesn’t happen a lot with all the time, effort and huge amounts of money Cadbury put into their research to get the exact product that people like and want. So in conclusion I can see that Cadbury Schweppes are a very successful company and that they succeed much more than they fail, finally that most of the company’s success is due to marketing.
By
Bibliography-
School trip to Cadbury world in Birmingham
The times newspaper article on the 11th of June
Glossary-
I will be finding the secondary information on the Internet and other sources like the newspaper.
End of gondola - the end of the aisle
On our trip to Cadbury world in Birmingham on Tuesday the 12th of June we collected data about the company.
Trident is originally from America but only introduced in the uk by Cadbury this year
The confectionary market is the market that includes things like chocolate and other sweets etc.
Appendix-
Cadbury Trebor Bassett is the most profitable sector of the “parent” company Cadbury Schweppes, Cadbury merged with Trebor Bassett in 2000.
Price- most of the profit from eg. a chocolate bar goes to the supplier like Tesco, Woolworth etc.
Place- Cadbury’s research showed that 1 third of customers went down the confectionary aisle
Promotion- is done to try and get the product know, it can be done through things like sponsoring. For example, last year were there were accusations of racial abuse on big brother and so Carphone warehouse who was sponsoring the programme was also given a bad image and so withdrew their relations to the programme
