Cadburys has many famous chocolate products which it has a variety of advertising campaigns for. Probably the most famous is the Cadbury Crme Egg slogans. Slogans include 'how do you eat yours' in which
Contents Page
Page No.
* History of the Business 3 - 5
* Marketing 6 - 8
* Primary Research 9 - 16
* Secondary Research 17 - 21
* SWOT Analysis 22 - 24
* Product
* Product Mix 25
* Branding 25 - 26
* Product Life Cycle 26
* Extension Strategies 27 - 28
* Product Differentiation 29
* Price 30
* Place
* Channels of Distribution 31 - 32
* Promotion
* Above the Line 33 - 34
* Below the Line 34 - 36
* Conclusion 37 - 38
* Recommendation 38 - 39
* Bibliography 40
* Appendix 41
History
In 1824 Cadbury was first created when John Cadbury, in Bull Street Birmingham, opened a grocery store as a sole trader. This is very risky as very few sole traders succeed in expanding their business but John Cadbury did. He did this because his new product, chocolate, was revolutionary and no-one had tasted anything quite like it. As chocolate releases chemicals in the brain making the consumer happier people kept on buying more and the only place you could get it at that time was from John Cadbury's shop so he made a lot of money allowing him to expand his company. By 1831 he had switched from being a grocer to becoming a manufacturer of drinking chocolate and cocoa, starting Cadburys as it is known today. On 1st January 1896 Cadburys became a registered private limited company with a capital of £1 million. This meant that Cadbury was now the company was run by a Board of Directors (who was elected by the shareholders) which is headed by a Chairman. The shareholders are those who have bought shares in the company and must be people working for the company and it can be decided on who can buy the shares or not. To become a limited company Cadbury had to produce legal documents called Memorandum of association and the Articles of Association which are sent to the Registrar of Companies who then issued Cadbury with a Certificate of Incorporation which allows the business to trade as a Private Limited Company. In 1969 Cadbury then became Cadbury Schweppes plc after merging with Schweppes and Cadbury became the confectionary division of it. They did this because there would be benefits for each business. Each business would be able to expand after their assets are joined as they would create a huge amount of revenue. This revenue would also be able to buy other competing products and adding it to their range so they would have full control of the market. This guaranteed both businesses a larger market share and the ability to wipe out any other competitor.
The first products to be produced were drinking chocolate and cocoa as chocolate manufacture had not been developed very much at in that time so this is what was used instead of eating chocolate. Later as the company developed they began to make eating chocolate in wrappers to make it more convenient for the customers to eat. By this time companies Cadbury later took over began to produce their first sweets such as Maynard's sweets and Basset's liquorice allsorts. As the company expanded and the chocolate manufacture developed Cadburys began to release more new products to the market such as the famous Cadbury Dairy Milk in 1905. This was so that they could produce a wider range of confectionary and fulfil their customer's needs for new and different tastes. New products such as stimorol in 2002 were produced for overseas countries to fulfil a different taste need for different nationalities. Leading products in the confectionary market were re-released under Cadbury as they took over other companies and since it was already a successful product it was sure to make them a profit. For example in 1989 Cadbury acquired bassets adding an extensive range of products to Cadburys line such as the famous jelly babies. In 1960 Cadbury bought Pascalls who produced the famous Chocolate Éclairs now one of Cadburys major assets.
From starting as a single grocery shop Cadbury has expanded greatly over 181 years to become part of a public limited multinational company. In 1847 Cadbury first expanded when John Cadbury went into partnership with his brother Benjamin and then moved to larger premises. In 1899 Cadbury had expanded so much that it was registered as a private limited company. In 1919 Cadbury joined with JS Fry & sons of Bristol whose products added to their increasing range. The largest expansion for Cadbury was in 1969 when it joined with the beverage producer Schweppes. They both created Cadbury Schweppes public limited company which is also a multinational. With this merger Cadbury got a huge amount of assets from Schweppes increasing the business size and wealth. Cadbury gained many successful products from Schweppes such as Schweppes lemonade and ginger ale and later dr. pepper and 7 up which they acquired. In 1990 Cadbury merged with Trebor Basset adding to their extensive range of sweets to Cadbury's chocolate products. Trebor Basset was a leading competitor in the confectionery market and had already acquired brands like Maynard's which Cadbury also acquired. In 2005 Cadbury quickly took over Green and Blacks, a company claiming it produces the first organic chocolate. They did this because people are very conscience about healthy food and since it is organic it is likely to sell well, it is actually the fastest growing company in the confectionery market.
Cadburys has many famous chocolate products which it has a variety of advertising campaigns for. Probably the most famous is the Cadbury Crème Egg slogans. Slogans include 'how do you eat yours' in which they use interesting characters which started in 1985 and was very successful as it ran for 10 years. Another famous product is Cadbury Dairy Milk with its famous slogan; 'glass and a half of full cream milk in every half pound'. This is so successful because it hints that it is good for you as it contains calcium for healthy bones and also tells the customer that it has a creamy taste which is an ideal chocolate taste. Cadbury also uses television advertising. Their most famous being the advertising time bought by Cadbury on Coronation Street at the beginning and end of every part. As Coronation Street is one of the most highly watched programs on British television it is seen by a very large audience encouraging them all to buy Cadbury brands as they recognise that name.
A picture of the coronation street advertisement
Today the company is a very successful subsidiary of Cadbury Schweppes which sells its shares on the stock market and operates in 35 different countries. Currently Cadbury sells a total of 14 products in the U.K of which many have different types. This is not counting the assets they gained from Bassets or Maynard's. Cadburys is currently the worlds largest confectioner but the U.K company dropped in net profits slightly by 1% to £992milionin 2004.
Half Year End June
2005
24 weeks
£m
2004
24 weeks
£m
Reported
currency
growth
%
Constant
currency #
growth
%
Revenue
3,127
2,954
+6
+6
Profit from operations
422
389
+8%
+10%
Profit before Tax
344
312
+10
+12
Underlying EPS *
2.5p
1.8p
+6
+8
Basic EPS
1.6p
0.9p
+6
+7
Dividends per share
4.0p
3.8p
+5
n/a
This graph and table show Cadburys performance between 2004 and 2005. Both show that Cadbury's profits and share price both rose between the two years. The share price rose from £450 to £550 meaning more money is available to the company to spend on future projects allowing them to expand and acquire even more brands. The table shows that their revenue rose by %6 meaning sales have increased as more people have bought their products. Cadbury ca use this available money to carry on expanding and releasing new products to satisfy people changing wants. I expect that Cadbury will continue to expand and acquire even more companies gaining even more assets and gain a larger dominance of the confectionery market.
Marketing
Every business involves marketing, without it people would have no reason to buy a product or even know what it is. A definition of marketing is "A management process of identifying, anticipating and satisfying customers wants profitably." In other words it is how a business finds out what their customers want and change their product or their marketing mix to suit them, meaning the customers wants will be fulfilled so they will buy that product.
Marketing involves researching your target customer and the market. A business would research their market to see what competition they are up against and what products they produce. Then they will research primary and secondary information about the customer range their product appeals to and compare them both. From this they create a marketing plan and must balance out their marketing mix in order to fulfil the needs of their customers. The marketing mix consists of 4 p's, product, what product they are selling and how it fulfils the wants of their customers, place, where their product is available for customers to buy, promotion, how they tell their customers about their product by using media such as TV advertising and price, how much their product is selling for and what type of people can afford them. These p's are important because they decide whether or not the product is successful or not. Each p must be carefully thought over and decided upon until the marketing team are sure that it is fulfilling the customer's wants fully. If they all meet the customer's wants then the product is likely to become a successful resulting in profit for the company.
Cadbury's marketing strategy is mass marketing as it produces products for the whole of the confectionary market and appeals to all groups of people in the market. It does this by making their products available for all types of people. Cadbury's chocolate is not expensive so can be bought buy even the lower class people. Also it is sold in all kind of shops so more people will see it and there is a larger chance that they will buy it. It sells its products globally as it is a multinational but even though it sells its main products, e.g. Dairy Milk, as a standardised product, there are some products which are produced and only sold in that area to meet the wants of the customers e.g. taste. This means they are competing with a lot of competition from other multinational confectionary producers such as Mars, who also sell products in countries all over the world, but are benefited by economies of scale which such as mass production which lowers the price it costs to make their products as you will normally receive a discount fro buying in bulk, a large company can buy machines for production which is cheaper than manual labour and another example is that a larger business can borrow more money for less interest because it is better for banks.
Cadbury uses an asset oriented strategy meaning they base marketing decisions on the business' strengths and at the same time meeting customer needs. You can see that they use their own strengths when producing new products as their new products always the original Dairy Milk chocolate in it. They now have 40 different products each using the Dairy Milk recipe in it. They use the Dairy Milk recipe in all their products because it is the leading chocolate in the chocolate market. Customers like the taste over other chocolates so it is easy to ensure the success of their new product by using what they already know is popular. This is how they use their own strengths to guarantee the success of a new product. They also meet their customer's needs with their new products by researching the market. Before they design a new product they research their target market and see which wants of their customers are not being met, or which new wants their customers have which Cadbury can create a new product to fulfil. Cadbury do this to ensure the success of a new product because they are making sure it will meet the wants of their customers meaning the customers will buy it.
An example of this is a new product Cadbury released called 'Strollers' which are assorted caramel, biscuit and raisin milk chocolate pieces. This product was asset-led because it used the businesses strength and assets of their famous Dairy Milk chocolate to cover the assorted pieces in which they know their customers already like. The product was also market orientated because it was created to suit the changing wants of the modern day customer's food trends. Customers were found to eat smaller amounts more often and consist of more familiar ingredients such as caramel raisin and biscuit, Strollers meets these wants as they are suitable for a snack and contain familiar ingredients.
This is a picture of the famous Dairy Milk chocolate which is
Cadburys most successful product, it is also used in other
Products they produce
At the beginning of 2005 Cadbury released a range of Dairy Milk chocolate bars using their asset-led marketing scheme. Including the original there are now 12 different ways consumers can enjoy Dairy Milk. Each bar contains a different ingredient such as nuts or orange chips. They did this because Cadbury know that their target market enjoy Dairy Milk but also they suit other people's tastes by adding different ingredients so they are mass marketed by meeting people's different wants.
Cadbury uses Market segmentation as an important tool when creating their marketing plan. It involves breaking the market down using various criteria, in order to identify distinct groups of customers. The main ways in which a market can be segmented are:
- Demographically such as their age, sex, income, type of house, and socio-economic group
- Psychographically which involves investigating their attitudes, hobbies, interests, tastes and lifestyles.
- Geographically is the region of the country, urban -v- rural, etc
Cadbury can segment their market psychographically as this would allow them to separate their markets tastes and whether or not they would have to release new products which would fulfil these people's different tastes. Also it also covers how these people would buy their chocolate. Most people buy their confectionary on impulse. This means that they do ...
This is a preview of the whole essay
- Demographically such as their age, sex, income, type of house, and socio-economic group
- Psychographically which involves investigating their attitudes, hobbies, interests, tastes and lifestyles.
- Geographically is the region of the country, urban -v- rural, etc
Cadbury can segment their market psychographically as this would allow them to separate their markets tastes and whether or not they would have to release new products which would fulfil these people's different tastes. Also it also covers how these people would buy their chocolate. Most people buy their confectionary on impulse. This means that they do not go out planning on buying it but have a craving and make a quick decision to buy it. As most people do this Cadbury must market their products in order to make people have this impulse more often. They do this buy selling their products by the store counter so everyone who enters that store will see it.
The main segmentation Cadbury uses as well as the whole segmentation market is different to that of another product available. This way of segmentation allows them to clearly see the different cases of purchases made by consumers and gives retailer a clear idea of which range of products to stock and how they should be merchandised as well to suit consumer wants and needs. Cadbury segment their market into 5 different sections:
* Immediate Eat - purchases in this section are purchased for immediate consumption. The needs these purchases fill are needs like 'I need a snack' or 'need some energy'
* Kids - This section includes purchases for or by children. They are bought fir needs such as 'treats' or 'parties'
* Seasonal - This section is for those purchases bought specifically at a certain time such as Easter, Christmas or Valentines Day. Examples of products are Easter Eggs, Calendars and selection boxes
* Home Stock - This section contains purchases bought for storage fr use later. Needs that this section fulfils are 'needing a snack later' or 'something to eat in front of the television'
* Gift - This contains purchases for everyday gifts such as 'a romantic gesture', 'appreciation' or 'a special occasion
This image shows the sections and percentages of the segments that Cadbury uses.
Primary research
In this section I will be designing and writing a questionnaire so I can investigate the effectiveness of the marketing mix my company is using to sell their products.
I have decided to collect primary research myself as the data I collect will be extremely relevant to my hypothesis as I will design it. I have decided to use primary research as well as secondary research as primary research is accurate, usable and up to date yet it is also time consuming, sometimes expensive and not as quick to access. I have also decided on using a survey to collect quantitive data which also includes mail surveys, telephone surveys and personal interviews. The advantages of using a survey is it is very convenient, cheap and participants can be chosen. The disadvantages are that it is time consuming and generates a low response rate.
Research Objectives
To complete my questionnaire successfully I must follow a set of objectives. This way I can make sure that all of my information collected is relevant to my hypothesis and reflects the ideas of all of Cadbury's consumers. These are my objectives:
* To identify and define marketing opportunities and problems for Cadbury
* Collect information to allow me to evaluate Cadbury's performance
* Be able to determined how well customer needs are being met and investigate new target markets for Cadbury
* To identify Cadbury's competition and pinpoint their strengths and threats
Factors
A factor that will affect the overall design of my questionnaire is who I will be asking. I will not be able to ask everyone my questionnaire as it is impractical and maybe impossible. To get around this I must ask a sample of people my questionnaire. I will be asking a small group of people that I choose who will reflect the views of the whole populations' opinions. I cant make my questions too impersonal such as how much do you earn as they may not answer the question so to get around this I have asked them the basics or asked them what area they would fit into and not directly asking them the question. I must ask questions specific to my companies marketing mix. I will do this by using the resources have collected and decide what questions would be relevant. Most of my questions must be dichotomous (closed questions) giving them 1 option out of 2 which will give me the easiest results to process. I must also use a variation of other types of questions such as multiple choice because it shows a clear decision and is easily interpretable, semantic differential questions express degrees of opinion which is good because it lets you know what they really think about the company and therefore shows how the company could improve and I can also use a few open ended questions as they encourage answers without restriction or structure meaning you can see what the participant really thinks as they are allowed to answer open minded.
Bias
Bias is when you are one sided and have a certain view of something. If my questions were bias then that could influence the participants into agreeing with my point of view which would be biased and unfair. If my questions were bias they would affect my data because I may be getting a dishonest answer from my participant as they are being persuaded. This is bad because I am looking for honest answer that show how may companies marketing mix effects them but if I get a biased answer my data will be wrong and therefore the whole of my project as well.
Market researches avoid bias by styling their questions in a non biased way. They do not include negatives in their questions which would persuade the participant to go along with whatever surveyor is implying. They also approach their participants in friendly ways and not putting them under any pressure which could lead to a dishonest answer which is therefore biased.
Sampling technique
As I cannot possibly ask all of my target market my questions I will have to ask a sample. A sample is a small group of people that is chosen to reflect the whole markets views.
While carrying out my questionnaire I will be using a method of sampling called Quota. This means I will be asking a small amount of people who Cadbury's marketing mix is aimed at which will give me results that should show the overall opinion of the whole market which reflects the proportions in Cadbury's consumer marketing profile. I will be doing this because it will give me an answer to my objective, how effective is Cadbury's marketing mix, by reflecting everyone's views. The other methods of sampling I could have used where Random where I choose participants at random, Systematic where I choose every nth person on a list and stratified random is like quota but the participants who fit the target market at random.
Analysing Questionnaire Results
This graph shows that the majority of the people who consume confectionary where either of social class B or E. This may be because people of these social classes are more attracted to chocolate and buy it more often as they do not have very high tastes and enjoy confectionary. This contradicts Cadbury's marketing plan as they aim their products at all age groups which must not be very effective as their customers are mainly 2 social groups. Cadbury can use this information by both concentrating their products and marketing for these 2 social groups and have a very high success rate in sales. Also release new products which might be more expensive to attract people in the A social class or sell cheaper confectionary to attract the more basic tastes of lower class people such as C2 or D.
This graph shows that Chocolate is the most bought and probably favourite type of confectionary. This may be because chocolate appeals to a large amount of social classes with different tastes whereas sugar confectionary may only appeal to the social class E for children as they enjoy the sugary taste more. This confirms Cadbury's marketing plan as they have more chocolate products available to the public than sugar confectionary which means they are more likely to have a larger profit as their chocolate products would be more successful. Cadbury's could use this information to release more chocolate products which are likely to succeed and have a high return of profit.
This shows that Cadbury is the most popular brand of chocolate confectionary as most people would purchase Cadbury over other leading competitors such as mars and Nestle. This confirms Cadbury's marketing plan as they plan to be the most popular brand by releasing products to suit every taste. Cadbury could use this by releasing products which would take market share away from the other competitors so they are the sole leaders of the market.
This shows that most people would not purchase a low calorie bar over a normal bar. This may be because people may believe low calorie bars to have less taste than normal bars as more sugar which makes its flavour so well liked is removed. This contradicts Cadbury's marketing plan as they aim to attract everyone to buy their products but this graph shows that most people wouldn't buy low fat bars so they wouldn't be able to attract health conscious people. Cadbury could use this buy changing the flavour and releasing samples so people see that the taste is the same and will buy more because it is healthier for them and spend more money.
This shows that Haribo is the most preferred sugar confectionary in the market sugar confectionary. This may be because they have a wide range of products which are suitable for sharing which people enjoy and are not that expensive. This contradicts Cadbury's marketing plan because they aim to release and advertise their products so they become the leaders in the market. Cadbury could use this by analysing Harbio's products and seeing why they are so successful and using some of these aspects in their sugar confectionary products such as the ones made by Trebor Bassets and Maynard's.
This doughnut chart shows that most people choose their confectionary based on its flavour. This would be because, although they wouldn't buy anything too small or expensive, flavour is the most important aspect as they wouldn't purchase products they do not like the taste of. This confirms Cadbury's marketing plan as they focus on the flavour of their products. They could use this information by not only focusing on the flavour but by making it cheaper as that was also a high priority.
This graph shows that most people purchase confectionary once a week. This may be because the shoppers are health conscious and do not wont to buy much chocolate as they fear they may gain weight if they spoil their diet. This contradicts Cadbury's marketing plan as a large part of it now is to release 99-calorie bars to target health conscious people. Cadbury could use this by releasing a wider range low fat bars but still keeping the same Cadbury chocolate taste so they wouldn't mind choosing a low fat bar over a normal one and as they are healthier would be encouraged to buy more.
This Graph shows how often people buy confectionary but specifically Cadbury products. It shows that people most commonly purchase Cadbury products every two weeks or more. This may be because people purchase confectionary more often but it isn't always the same brand. This may be because they prefer to have a larger variety of products to choose from. This contradicts Cadbury's marketing plan as they try to release enough products to suit everyone's tastes and to give them a large enough variety to have Cadbury chosen each time. Cadbury could use this information by making their products and all of them available in more places so consumers have more chance to buy Cadbury products. Cadbury also need to continue to release new products so they have a larger variety and suit everyone's tastes.
This graph shows how much someone would normally pay for a confectionary product and that they would normally spend 25-50p. This is because it is not that expensive and they are more likely to have this amount of change available. This confirms Cadbury's marketing plan as most of their products released are around this price range but some are more expensive to meet other people's wants. Cadbury could use this information by releasing new products around this price range because it is what people would comfortably pay for a product so it has a higher chance of success.
This graph shows that most people purchase their confectionary products in shops and close behind this is Supermarkets or petrol stations. This is because shops are larger and constantly visited for a variety of things and can contain larger amounts and varieties of products attracting many people. This confirms Cadbury's marketing plan as they aim to make their products available for everyone and to do this they had to put them in places where the majority of people would notice and buy the which Cadbury has done by making them available in these place.
This graph shows which type of advertisement scheme would be most effective and influence the purchases of most people. Most people, 39%, believed that a T.V advert would be most effective. This may be because T.V has very high audiences so would be seen by a lot of people which is what it needs to be. Also if the advert is made interesting and eye-catching more people will stop to look at it and it will be talked about so it is spread by word of mouth as well. This means that Cadbury's name will be better known and more likely to be chosen over other less well known brands.
Analysis of Secondary Information
I have decided to use secondary information to help me with this project as it can be useful. I will be using internal secondary data which is released by Cadbury showing figures of sales and market percentages. The reasons for using secondary information are its inexpensive, easily accessible and immediately available but the downsides to it are that it s potentially unreliable, often outdated and may not be applicable to my cause.
Since I am using secondary information I must have secondary research objectives to make sure I can process the information I collect. The information I will collect must:
* Reflect Cadbury's marketing success
* Show how Cadbury is competing with rival companies
* Be at least 5 years in date or it would have no bearing on my project
* Allow me to analyse their current performance
* Allow me to see how they can out perform their competition
This graph shows the percentage of the confectionary market that chocolate confectionary holds from the year 2000 - 2004. You can see that it gained a large amount from the year 2000 - 2002, an increase of 0.8%. This means that between that time sales increased for the chocolate confectionary companies. But after this the market for them slumped as the market share dipped from 69.1% to 68.9% meaning a decrease in profits and sales. Then from 2003 to 2004 sales picked up to 69%. This is useful to Cadbury as it would show that theirs and rivals marketing plans have not performed as well as the confectionary market is worth less than it was. But comparing this to Cadbury's sales which have increased recently this cannot be the case. It could be to do with a fall in cocoa prices or just competitors shares falling. This could be a chance for Cadbury to buy up rival chocolate companies when they are doing their worst to gain a bigger hold on the Chocolate market.
This graph shows the sugar confectionary sectors percentage of confectionary market held. In 2000 it had a large market share, as sales must have been high as well as demand but then form 2000 to 2002 market share dropped by 0.6% as sales must have dropped ad demand slackened. It then rose slightly in 2003 but stayed low again in 2004. This is useful to Cadbury because it shows that their sugar confectionary is not performing very well. This means that they should focus more on their Sugar confectionary side in order to increase its worth which will in turn increase the worth of their sugar products and will be able to raise higher revenue.
This graph shows how much chocolate or sugar confectionary gained in the confectionary market over a period of 4 years. In 2001 Sugar confectionary had decreased by 0.4 % meaning sales were low and profit was down while chocolate confectionary had increased by 0.4% so sales and profits were up. In 2003 Sugar confectionary increased while chocolate was down which then changed in 2004. This tells me that Cadbury should allow their sugar confectionary sectors to increase so that sugar and chocolate have equal share of the confectionary market meaning both sectors are producing as much profit as possible and that profit can continue to increase. This would be the most efficient route for Cadbury and would allow both sides of their companies to increase in value equally and a greater profit would be made.
This shows how much of the confectionary market the top confectionary produces hold and the smaller producers as one under others. SA you can see Cadbury hold the largest amount of the confectionary market meaning they have the biggest sales and largest profits, while Mars and Nestlé are close behind by only 7 and 14%. I would advise that Cadbury use their large profits to realise new products into the market, which will hopefully take market share away from other competitors. They could also take over other companies that may not be doing so well including successful new companies and gain their market share and assets.
This graph shows which type of sugar confectionary is the largest in the sector. It shows that Fruit sweets are the largest sector so they have the largest sales and biggest profits. I would advise Cadbury to use their acquired assets such as bassets and Maynard's to invest into the fruit sweets sector, as they are more likely to have larger sales and profits. Alternatively they could choose to invest more in the less popular sectors such as mints as there is more room for improvement and if they had a USP on one of their products it would be easier to succeed and expand. This way each sector would be equal so high profits would come from each one.
This Graph shows Cadbury's sales from the year 2000 to 2003. From 2000 to 2002 the sales rose by about 400 million each year. Then in 2003 sales increased greatly by over 1000 million. This shows that whatever Cadbury did to attract so many new customers and new sales worked, be it a products or advertising campaigns. From this I would advise Cadbury to look at why their sales rose by so much that year and see if they can use that in their marketing plan again for future years as it would guarantee more sales and larger profits.
Summary
From looking at my secondary information, I can see that Cadbury is performing well on its own as its sales have increased by over 2,000,000,000 in just 3 years meaning Cadbury's popularity has grown as more people are buying more products. Cadbury have out performed their competitors also as even though the confectionary market has gone down in value they have still managed to increase their sales by 1143 in 2003. Also Cadbury still hold the largest market share in the UK confectionary market beating their closest competitor, Mars, by 9%. Graph 5 also shows that Cadbury would do well to invest in the gum and mint sector of the sugar confectionary market as they are the smallest with only 18% of the sugar confectionary market giving them the greatest room to be successful.
SWOT Analysis of Cadbury
Definition
A SWOT analysis is a strategic plan used to evaluate the Strengths, Weaknesses, Opportunities and Threats of a businesses marketing plan. It is used because it helps business to evaluate external and internal factors affecting them. SWOT analysis can help in turning weaknesses and threats into opportunities, and ultimately into strengths. The plan can also identify opportunities that will relieve them of weaknesses, and strengths that will counter threats.
Strengths
The strengths of Cadbury are that they are good at producing low price quality confectionary goods which appeal to a wide range of people and become firm favourites of consumers and last for long periods of time. They are also well known for their Cadbury's milk chocolate which has been one of the top selling chocolate confectionary products for 100 years since it was first released. Cadbury have also comfortably made profit in every year of running for the past several years. This shows that they are increasingly more popular and can afford to invest in new products. Cadbury retain their customers who they whole for most of their life's by using the same Cadbury chocolate in nearly all of their chocolate products. The ingredients to this chocolate seem to be enjoyed by everyone and never seem to get old. Maybe Cadbury's greatest strength is their brand name. People are strongly persuaded to buy their products as they see the name on the confectionary product and relate it to be being good quality and trusted to provide an enjoyable product. Also having such a strong brand name allows them to charge prestige pricing adding more profit to each sale which the consumer is willing to pay for in order to have the brand name.
Weaknesses
Weaknesses of Cadbury's are that it has a high seasonal market. This is because the sales of chocolate items decrease quite significantly in the summer month, especially if the weather is hot as chocolate will melt and ice cream is preferred. While consumption rises during occasions such as Easter and Christmas because they are sold as gifts and as Easter eggs. Cadbury also has a weak market share of the U.S confectionary market which contains a large target market.
Opportunities
Cadbury's can always offer a wide variety of products for different kinds of people with different size, flavours and packaging as the confectionary market always has room for new ideas and products. Cadbury can also invest more into their healthy diet bars as there is room in the market for a popular brand to release similar tasting diet bars. Other markets Cadbury could enter our foreign markets. They could begin to sell to foreign countries such as Poland where, if they succeed, can greatly increase profits. They can also invest more in the mint sector of the confectionary market as according to my secondary research it only holds 18% of the sugar confectionary market so Cadbury would have less competition and could succeed with more ease.
Threats
Cadbury's has a lot of threats from other major companies such as the largest food and Beverage Company in the world, Nestle. They have a large amount of money available to invest in their rival products to Cadbury. Therefore the company has to compete with the competitors by using different pricing and packaging. Customer dissatisfaction is a threat as if the customers are not happy with the product then they will not purchase that product again and may be persuaded to not purchase another product from that company again. Figures suggest that customers in the confectionary sector are purchasing chocolate products less frequently because of health concerns. . Cadbury's also suffers from an unhealthy image, with people becoming more health conscience they see that chocolate will cause tooth decay and increase the level of obesity. Although the company has responded to this by introducing products such as low fat chocolate bars and sugar free chewing gums, concerns still remain especially over how the chocolate is advertised e.g. with free sports vouchers to help get children fit while eating the chocolate could be the problem in the first place
Cadbury could use this to change their marketing plan to their benefit by taking their strengths and opportunities and using them to their full advantage while looking at ways of combating threats and weaknesses. They can continue to use their Cadbury milk chocolate in their products as it guarantees that it will be popular because of its familiar taste. They should further use their dairy milk as my research shows that dairy milk was the top brand in 2004 which shows how liked it is by the consumers as it is over 100 years old. They could also use this to take opportunities by releasing low calorie Cadbury chocolate which has the same taste but people will not worry about the health issues associated with chocolate, although they have already done this they would do better if they promoted it further as from my research 83% of people would not currently buy a low calorie bar. Cadbury could also release chocolate lollies for the summer to combat the selling slumped around that time so the company has a high income all year round as my research shows that Cadbury's sales are greatest around Christmas during the cold winter. This would also combat the threat of other companies as it would be a new product which would take available market share as other confectionery companies experience this seasonal market.
Product Mix
The product element in Cadbury's marketing mix is 'the products characteristics must meet the needs or wants of the target market'. If they did not then the customers would have no reason to purchase that product and would purchase competitors products.
A product mix is the number of different products made by a business. Cadbury has a narrow product mix as they only produce confectionary and soft drinks which are only two different products.
The benefits of Cadbury having a narrow product mix is that it is quite cheap to produce their products as they do not need as much machinery or train as many different staff as they are all producing the same thing. This means that they have become very specialised in what they produce so their products would be of high quality and preferred by consumers. Cadbury's is also much easier to run as not as much responsibility has to be delegated than a company with a wide product mix so the person in charge of Cadbury can focus on all of the work.
The draw backs of Cadbury having a narrow product mix are that with so few different products is one of the product's markets slows and its popularity decreases Cadbury have no other products to fall back on. So when they begin to make a loss they have no profits from the sales of other products to invest back into the failing product range and pick sales up so they are forced to file for bankruptcy. Also Cadbury with having a narrow product mix means a narrow target market. With more products they could aim them at a larger market therefore attracting a larger amount of consumers and an overall larger profit.
As the confectionary market shows slowing as in 2004 it only grew by 1% Cadbury may want to branch out into other markets as the confectionary market is under threat from dieting and health conscience consumers and if sales drop and profits decrease the would want another product to make sure their overall profit is positive. If they do not want to make this leap they could simply modify their products by making them low fat or low carb which makes them appealing to a more health conscious market.
Branding
There are three types of products, Brand which is a named product that is seen as different like Cadbury's, Generic which are products made by a number of businesses that consumers see no difference in e.g. carrots and Own Brand which is a product sold under the name of a retailer rather than the manufacturer e.g. Tesco.
Cadbury's products are branded and are seen as different and recognised as different from competitor's products. I can see this because they clearly show the name of their company on all of their products meaning they believe it makes their products different and stand out from competitors and is a reason for consumers to choose them as if they like one of Cadbury's products they will like others.
Product Life cycle
Above is the product life cycle which is designed to shows the life cycle of most products. The product life cycle shows the stages (of sales) a product passes through during its life time. There are 5 stages to it development, introduction, growth, maturity and decline. In development money is being spent on making and designing the product so there would be no sales and cash flow would be negative. In the introduction the product is first released into the market. As it is relatively unknown sales are low and cash flow is still negative as not enough money has been made to make a profit. In growth it becomes more recognised and sales increase, cash flow passes the negative point and the company makes a profit. In maturity the product is as popular as it will ever be and sales are at its highest point this is where the most profit is made from a high cash flow. In decline the product is less popular and sales decrease. When they pass a certain point and cash flow is not high enough they stop production. Companies use this as they base their products life cycles on it so they know when to lower or raise the price of their product to increase sales. They also know when to advertise and how many they'll need to produce.
Cadbury's most popular product Dairy Milk is currently in maturity in its life cycle. I can tell this because sales have recently increased and is it is as popular as it ever was. Dairy Milk doesn't fit this cycle completely as instead of declining it has become a favourite of consumers and has been sold and bought for over 100 years.
Extension strategies
Extension strategies are ways a business modifies a product to appeal to more customers and maintain sales in maturity.
This diagram shows the sales of mars bar over a certain period of time and how Mars released snack sized mars and mars delights as extension strategies to increase sales as the original mars bar reached its maturity.
Cadbury's has used a range of extension strategies in order to keep sales of products high. These include the new range of Dairy milk products which have taken the most successful parts of other products and incorporated them into the Dairy milk for example Dairy milk with Caramel and Dairy milk with Turkish delight. Taking only the consumer's favourite aspect of other products guarantees that the product will be successful as it will be enjoyed by them and will attract new customers as it is a new product to try. Another extension strategy Cadbury's as well as competitors is used is the king-sized product. They take an existing bar an increase its size ad its price but make it a better value for money per kg encouraging people to buy it. But even though the profit is lower they sell more of it so overall profits would be greater. Cadburys have also redesigned their packaging to make it look more futuristic and modern as well as keeping the product fresh. They hope that the packaging will stand out from others and encourage consumers to buy that product when on impulse and that the notion of a fresher product will also encourage them to buy the product increasing sales and profits.
Future strategy extensions Cadbury could use could be a low calorie version of the new Dairy Milk range. This would be further increasing the sales of Dairy Milk as they would now be attracting a more health conscious market which is also continuously growing so the number of customers would be increasing so overall profits would increase. This would benefit there already lacking low calorie bar scheme which is shown by 83% of all of my questionnaire participants not wiling to purchase a low calorie bar. Another extension Cadbury could use could be to release a high quality Dairy milk chocolate that is more expensive then their original dairy milk. This would attract higher social groups and Cadbury would be able to sell to a larger market and attract more customers and therefore higher sales. I would recommend this because only 13% of my questionnaire participants who ate dairy milk were placed under social class A.
The benefits of a new dairy milk range would be that they would attract a larger target market and therefore higher sales. Also if their original target market becomes continually more health conscious they are less likely to purchase a normal bar so if their sales of normal bars fell they still have low calorie bars to attract the health conscious market. But currently 83% of people would not purchase a low calorie bar because of the taste or some other factor. The drawbacks of this strategy are that it would not increase sales as health conscious people may believe it does not have the same taste which I could see from my survey. Also if it is not a success it would damage the Cadbury name and would dissuade customers from buying other Cadbury products. This would be potentially damaging as 11% of people buy Cadbury products because of the brand name. The benefits of a more expensive Dairy milk chocolate would be that it would increase the market Cadbury could aim at and therefore increase customers and sales as only 11% of consumers are in the social class A. The draw backs would be that if it was more expensive to make and did not attract new customers because of its price it could lose Cadbury even more money than a usual failed product.
Product Differentiation
Product differentiation is the method a business implies in order to make a product seem different from another. There are three types f product differentiation, Brand which is a named product that is seen as different like Cadbury's, Generic which are products made by a number of businesses that consumers see no difference in e.g. carrots and Own Brand which is a product sold under the name of a retailer rather than the manufacturer e.g. Tesco.
Companies will try to differentiate their products because they need to make it different from competing companies so that consumers will have a reason to choose their product over their competitors. There are a number of ways a company can do this like changing the size, packaging colour and shape.
Cadbury has differentiated Cadbury Dairy Milk by changing the packaging so that it is different from any competitors so that the consumer can identify it between others and choose that to purchase. They have also changed the taste of Dairy milk so that it is unique and can be preferred over other brands and purchased instead of others. It also uses the brand name Cadbury and not the retailer because they hope to attract customers who like other Cadbury products to purchase Dairy Milk as they would think if they liked one they would like others. Dairy milk also has its own shape which has been moulded and would be recognised by a customer who if they liked the product would buy it again.
Using my research and market analysis Cadbury could differentiate their products differently by changing the colour of the products. Currently there are only two main colours of chocolate confectionary so if they created a new or changed on existing product it would be unique which would be a unique selling point and attract new customers to try it. They could aim this at children as they would be attracted to the new colours on use pressure power on their parents in order to buy them. It would also increase the percentages of purchases for children as currently they only have 17% of Cadbury's marketing segmentation (seen on marketing page 8). Also as price is part of product differentiation they could lower it so it is lower than competitors' prices so that it would be chosen over them. Even thought they would make less profit on each bar there sales would rise so in all they would receive a greater profit. This would be successful as 17% of my participants said that Price was the factor in choosing a chocolate bar after flavour so they would choose the cheaper bar over competitors and steal market share. But this may have the side effect of starting a price war. This would be because competitors would have to lower their prices as well and would drive each other out of business.
Price
Pricing for companies is important to consider when marketing products as it can affect the business in many different ways. The price must be competitive with rivals in order to attract customers away from them and must be priced so that it attracts those customers in their target market so it must be a price they are willing to pay. The business must also consider that raising their prices will increase profits and high prices make people assume that it is of high quality whereas low prices make people assume the product is of low quality. If the company brands its product they can add a premium price for their products as people will pay for the brand.
Cadbury uses pricing methods in order to attract more customers and sell more products. It uses a mixture of competition based pricing as their prices are all similarly based around competitors so that customers are not persuaded to go to competitors with significantly lower prices or higher prices resembling higher quality. Cadbury would not lower their prices in order to undercut their competitors as this would start a price war where all competitors would lower their pricing so profits are diminished until they are out of business. Cadbury also use market orientated prices by prestige pricing. . This means that they sell high quality products for a high price which gives customer satisfaction and a large profit. They can do this because people are willing to pay more for their product because of the quality and in order to have the brand name. At first Cadbury would have used penetration pricing in order to sell their high quality products at a low price in order to gain market share. Cadbury also vary their prices depending on the channel of distribution they use. If sales increase in the channels where there are two or more steps before it gets to the consumer than profit will be taken meaning the price will have to be raised in order to maintain the level of profit.
Cadbury could improve their pricing policy by taking their brand one step further. They could sell a branch of products which are marketed as high quality which they could then sell at a prestige price because the Cadbury brand name is so well known. This would work as my research shows that 11% of people decide on confectionary by the brand so would still by Cadbury's products. Alternatively, as 11% of people also buy confectionary depending on the price, Cadbury could use Predatory pricing as they are so large. This method of pricing would involve them setting their prices at such a low level that other competitors cannot compete profitably, and as a result they are forced out of the industry. This would leave Cadbury in a dominant position as they are larger than competitors as 2/3 of people buy Cadbury products instead of the other leading competitors, and it can then raise its prices to a much higher level in order to recoup any losses that they incurred when their prices were low.
Place
A channel of distribution is the route by which a product gets from the manufacturer or service provider to the customer.
This is a diagram of the different channels of distributions. It shows the seven most common channels. The retailer is a business that specialises in selling goods in small quantities to customers, the wholesaler is a business which buys in bulk from manufacturers and sells stock on in smaller quantities and an agent is an individual or business that sells a product on behalf of a business and gets commission for it.
Cadbury uses any of the first 4 channels of distribution to get their products to the consumers. They use the 1st channel when they sell products from factory tours and from Cadbury retailers owned by Cadburys themselves as well as Cadbury vending machines selling only Cadbury products. They would use two when a major food chain wanted to purchase a bulk amount of their product and Cadbury could rely on them to sell it all so they allow this to happen. They would use the 3rd chain by selling in bulk to wholesalers such as Costco where consumers could then by in smaller amounts. The 4th chain would be used when smaller retailers wanted to purchase Cadbury products but as the are not well known they cannot be counted on to sell all of the products so they must buy from wholesalers and then sell them on to the consumer. Cadbury would try to avoid this as there are two steps so more of the profit would betaken by other companies.
Changes Cadbury could make to their channel of distributions are that they could refuse to use the 4th channel as this is where they would lose the most profit and to keep profits high they would need to avoid this. They could also increase there use of Cadbury vending machines as this way Cadbury can keep the greatest amount of profit from their products and placing these vending machines in convenient places would increase their sales as 94% of confectionary purchased is on impulse and vending machines is a very easy way of getting the consumer to see the product and it only takes 48% of people 0-10 seconds to make the decision to buy confectionary. Also 0% of my participants purchased their products from a vending machine so it would be a new market for them to break into which gives lots of room for the scheme to be successful.
Promotion
Promotion is the communication between a business and consumers to make a customer aware of its products. An example of this is advertising through TV adverts which people will watch while waiting for their program to resume.
Promotion is important because it attracts new and existing customers to the business by communicating with them and encourages them to buy their products with more customers promotion can increase the time products spend in the maturity stage of the product life cycle where it is making the most profit. It also raises customer's awareness of the business and by attracting these customers they are beating competitors. Effective promotion can captivate a target audience by, if it the product is sold under a brand name, getting that name across to the consumer so that when they go to purchase a product remember that name and are influenced into buying their product. Also the promotion could inform the consumer of how their product is better than their competitors and would influence the consumer's decision of buying their product or competitors.
Above the line promotion refers to promotional campaigns on national media, such as television and newspaper advertisements.
An above the line promotion strategy Cadbury use to make their target audience aware of their products and brand name is their poster campaigns released this summer (2005).
It was run to promote their new line of Dairy milk products and was designed so that people will remember it while buying a confectionary product. The advantages of this type of promotion is that it is cheap as renting bill boards to display their advert is not very costly. Also this way if it is displayed by roadsides or at bus stops a lot of people will see it and keeping it simple makes it easy to remember which is what Cadbury wants. The disadvantages of this is that not as many people will see it as if it was on TV and the same people would see it again and not other new potential consumers.
Another method they used was TV adverts on national TV in order to promote Dairy milk and increase its time in maturity.
In this advert it used animals as the person's happiness and how it was pleased when the person ate their dairy milk. The advantages of TV advertising are that a lot of people will see it as it is broadcast throughout the whole country so it would show to a large audience and these people would not have to go anywhere to see it. The disadvantages of this method are that it is very expensive as it appeals to so many people and Cadbury do not have control over what people watch so they may change the channel when the advert is on.
In my opinion I think that above the line promotion used by Cadbury is effective because when people go out or impulse buy a confectionary product they remember the brand name of Cadbury from when they saw the brand name and it will influence them to buy the product.
Using my market analysis and research their market strategies have been very successful. Cadbury spend a large majority of their profits on promotion which seems to reflect their increase in profits over the past 4 years. Both of the methods I chose as examples where promoting Cadbury dairy milk and these ads appear to be successful as Cadbury dairy milk is one of the nations most popular confectionary product and has been in its maturity for over 100 years, this can be seen by the research I have done shown on page 24 showing that after 100 years dairy milk is still the top selling chocolate bar in the U.K. The improvements Cadbury could consider would be to promote new products such as their low calorie bars as there is a large market for it and would quickly establish its name in the market. They need to do this because my primary research shows that 83% of the participants would not buy a low calorie bar.
Below the line promotion includes more short-term tactics such as personal selling, sales promotions, packaging, branding and direct mail.
Cadbury uses below the line promotion through sponsorship Coronation Street which is a soap with the highest audience in Britain.
The advantages of this type of promotion is that they can use it as a TV ad as they sponsor a TV show but without the disadvantages of one as people are more likely to watch it as they are planning on watching Coronation street. The disadvantages of it is it is extremely expensive because it has such a high audience they can charge very high amounts as it is guaranteed to be seen by a lot of people.
Another method is the 'everyTEXTwins' competition on special packs which appeals to the younger generation of consumers who use text messages to communicate.
The advantages of using promotion by competitions are that they can attract a certain type of consumer based on age or whereabouts who might not be buying as many products as Cadbury would like them to. Also it influences people into buying their products over competitors as they offer something back to the consumer. The disadvantage is that not everyone would be willing to participate in the competition so it could be a waste of money.
In my opinion I believe that below the line promotion Cadbury uses is effective because it is something most customers are most likely going to see as it is exposed to a very large amount of people. It is exposed to existing customers through the packaging which encourage them to purchase a Cadbury product again and potentially customers who will see a sponsorship will remind them of the brand name which will persuade them to try Cadbury products.
Using my market analysis and research I can tell that their below the line promotion is successful as they have invested heavily into promotion and therefore their sales have increased. These promotions have been successful as the first has appealed to a wide majority of people as a lot of people would see it and the second appeals to those Cadbury may want to buy more products to increase their sales, you can see this in my secondary research as it shows that over the past 4 years Cadbury's sales have continually increased by 1886. I would advise Cadbury to change their below the line promotion by using other methods to appeal to a wider target market. The methods they could use could be packaging. They have recently changed the packaging of their dairy milk which has been successful so they could extend this to their whole product range. The change would attract more customers as it would stand out form the normal. I would advise this because similar results have occurred in France and Spain with new packaging boosting sales which can be seen in the financial report of Cadbury for 2004. They could also sponsor a celebrity a 34% of people in my questionnaire said that it would be the most effective way of promoting their product. It would be successful as celebrities are continuously seen and admired by others who would copy them by buying Cadbury products as they consider it to be cool.
Conclusion
I have found this investigation successful as I have found out the relevant and correct information to complete my aim and I have also carried out the correct procedures in order to make it successful and factual.
My project suggests that Cadbury's marketing is effective. For each of my analysis's of their marketing plan I concluded that they were successful but I could still suggest some improvements. Examples of these are that there marketing has not been successful in the U.S.A which is one of the largest confectionary markets in the world as they have a very small market share.
Looking at their marketing plan in more detail I have separated it into the 4 p's, product, price, place and promotion and looked at the strengths and weaknesses as well as the possible improvements.
For product I concluded that they have differentiated their products successfully by creating a strong and well known brand name as 11% make purchases based on the brand, as well as a distinctive shape which consumers would recognise and be persuaded to buy it again because it is in their memory. The draw backs of this differentiation are that if a customer is displeased with one of their products they may not buy another product because they associate the brand name with the bad experience. Also I have found out that Cadbury has a narrow product mix which benefits them by lowering the costs of production they only produce one type of product also the employees would all be specialised after producing the same product so they would be fast and effective. The weaknesses of this are that they have no support from other products if the confectionary market slows which there is evidence of this occurring as in 2005 the confectionary market only grew by 1%, and they may go bankrupt. Also they cannot appeal to a wide target audience so lose potential profit. The could appeal to a larger audience by targeting health conscious people as at present 83% of people wouldn't rather buy a low calorie bar.
For place I can summarise that Cadbury uses a range of the distribution channels. The advantages of these channels are that the 1st channel means they receive all the profits as no company takes a cut for selling it to the customer but it is not well known and may be expensive to run. The 2nd means that they can sell it in bulk and no that they will be sold and at a profit so it is a sure way of making money but the supermarket will still take a cut and may want to sell it at a low price to compete with competitors, the 3rd means that the wholesaler can sell it tot eh customer in bulk which means large profits at once but they are normally sold cheaply so less profit and the 4th is the most used but is the least profitable, it is an easy way to sell products as they go to a wide variety of places but two cuts are taken so little profit is made. I would advise them to focus on the 1st channel because of greater profits and also they could use Cadbury vending machines meaning operating costs are very low. If the vending machines are placed strategically they can encourage impulse buying and be very popular as 94% of confectionary sales are on impulse.
For price I have concluded that Cadbury uses pricing methods in order to attract more customers and sell more products. It uses a mixture of competition based pricing as their prices are all similarly based around competitors so that customers are not persuaded to go to competitors with significantly lower prices or higher prices resembling higher quality. Cadbury also use market orientated prices by prestige pricing. From the market analysis they have done they have found out that they can charge slightly more than competitors because people are willing to pay slightly more for their brand name.
For Promotion I can tell that it is very successful as they have invested a lot of money in promotion in both above and below the line strategies which has increased over the past couple of years. As a result of this their sales have in turn increased by 1886 from 2001 to 2004 and are currently the majority market holders with 30% of the whole market. This is because their promotion is seen by many and spreads their brand name around so people are influenced into buying their products.
I conclude by saying that the marketing strategy of Cadbury which is using various channels of distribution, using different methods of pricing to increase profits and spending a lot on promotion is successful. The evidence which proves this is that Cadbury holds 30% of the market share, more than any other competitors, which shows that it must have been successful in order to get them there. Also, even though the confectionary market shows signs of showing and the Confectionary markets share values have decreased by 0.1% since 2002, their Sales have still increased by 1881 million since 2001 meaning that their marketing strategy is still successful and more than of their competitors.
Recommendations
In this section I have reviewed my conclusion and project and suggest some recommendations which Cadbury could imply which may improve their marketing plan.
For Product, as the confectionary market shows slowing as in 2004 it only grew by 1% Cadbury may want to branch out into other markets as the confectionary market is under threat from dieting and health conscience consumers and if sales drop and profits decrease the would want another product to make sure their overall profit is positive. If they do not want to make this leap they could simply modify their products by making them low fat or low carb which makes them appealing to a more health conscious market. They would need to promote this greatly as 83% of my questionnaire participants would not buy a low calorie bar at present so advertising would need to be used to change this. They could also enter a completely new market such as house hold goods. This would increase their product range so they would have another product to fall back on if one fails.
Using my research and market analysis Cadbury could differentiate their products differently by changing the colour of the products. Currently there are only two main colours of chocolate confectionary so if they created a new or changed an existing product it would be unique which would be a unique selling point and attract new customers to try it. Also as price is part of product differentiation they could lower it so it is lower than competitors' prices so that it would be chosen over them. Consumers would chose the cheaper product over competitors as according to my questionnaire results price is a more important factor in choosing a confectionary product than the brand name by 6% and 40% of people would willingly pay 25-50p for a confectionary product. Even thought hey would make less profit on each bar there sales would rise so in all they would receive a greater profit.
For Place the 4th chain would be used when smaller retailers wanted to purchase Cadbury products but as they are not well known they cannot be counted on to sell all of the products so they must buy from wholesalers and then sell them on to the consumer. Cadbury would try to avoid this as there are two steps so more of the profit would be taken by other companies.
For product Cadbury could improve their product range by taking their brand one step further. They could sell a branch of products which are marketed as high quality which they could then sell at a prestige price because the Cadbury brand name is so well known. It would be successful as 11% of people chose their confectionary based on its brand and if Cadbury has an even stronger brand then the amount of people who chose their products because of the brand name will increase and so will profits.
For promotion I would advise Cadbury to change their below the line promotion by using other methods to appeal to a wider target market. The methods they could use could be packaging. They have recently changed the packaging of their dairy milk which has been successful so they could extend this to their whole product range. The change would attract more customers as it would stand out form the normal. Evidence of this is in Cadbury's 2004 financial report when sales were boosted by new packaging in other countries.
Bibliography
Websites:
* www.Cadbury.co.uk
* www.prnewswire.co.uk
* www.bbc.co.uk
* www.tutor2u.net
Books
* School Business Studies Books
Information packs:
* Cadbury 2004 Annual Review and Summary Financial Statistics
* Cadbury 2003 Annual Review and Summary Financial Statistics
Ian McDonnell Business Coursework
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