Marketing Mix
Marketing mix is defined as the traditional approach to marketing planning and is based on the four ps. It gives a plan by which to operate, influence and satisfy the consumers.
Product Policy:
This is a statement of the range of products that the organisation offers to the market place. Decisions have to be made by the firms about quantities, timing, and product variation, associated service quality and style and even the packaging and branding.
Most organisations have a range of products of different quality and for different market segments. Whatever quality Cadbury's decides upon, for whichever market segment. The quality should remain consistent.
Decisions on the products are made by Cadbury's about the quantity of new products to be supplied. In Cadbury's new product development embraces a number of categories. It can involve the introduction of a totally new product to the company's portfolio such as the recent Cadbury introductions of spira, twirl targeted at people with busy lives. Chomp a caramel bar covered with chocolate with chocolate was a recent introduction aimed at children's pocket money. The new product I 'm marketing for is a new Cadbury's dairy milk chocolatwith hazelnut in triangle chunks. This is aimed at both children and adults..
Range extensions are new innovations within a company's established product range.
Line extensions are well illustrated by the introduction new products with varieties. It aims to give fresh impetus to a brand, existing products may be "re-launched" which involves re formulation of the product itself, re-positioning within the market place or representation of the product with new packaging or new sizes. Which is what I'm doing to Cadbury's dairy milk hazelnut to be re - launched in triangle chunks.
Analysis of data collected from primary research indicates that people from 16 to 20 years demand more confectionery and have about the same preference for all chocolates, where else people of age 40 and above purchase less chocolate and confectionery in general.
Cadbury's should produce a bigger variety of mixed confectionery because of the increase demand for confectionery.
A closer look at the trend preference between chocolates and sweets show a direct decrease, as people get older. Product variation also counts because as people get older they tend to grow out of eating confectionery, some people don't eat confectionery because of health problems. Therefore Cadbury's should try and bring a new product targeted (healthy) for older people. But they should maintain the quality of their products. In my questionnaire when I asked " what do you think of the existing Cadbury's about 60% said good and 10% said it can be improved. Those that wanted it improved prefer chocolates in chunks and with hazelnut.
Packaging and branding is also a decision to be taken into consideration by Cadbury's which will help not only in producing good quality products but also showing neatness and eye catching products
Design and choice of packaging materials are closely interrelated. At Cadbury the design department works closely with the packaging development experts to combine the designers artistic ideas with the materials and effects available to produce the right pack for each for each product. How ever there are several factors to be taken into consideration in designing and developing packaging in Cadbury.
> Cadbury are ...
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Packaging and branding is also a decision to be taken into consideration by Cadbury's which will help not only in producing good quality products but also showing neatness and eye catching products
Design and choice of packaging materials are closely interrelated. At Cadbury the design department works closely with the packaging development experts to combine the designers artistic ideas with the materials and effects available to produce the right pack for each for each product. How ever there are several factors to be taken into consideration in designing and developing packaging in Cadbury.
> Cadbury are well known for the good quality of their products a reputation which must be maintained
> The quality of confectionery is judged by two factors which are the appearance of the product before purchase and most important, the taste
> Cadbury produce vast quantities of chocolates and sweets which must sell themselves in supermarkets and on shop counters.
Price Policy:
This is a very important decision area for Cadbury's because although its a promotional tool in many aspects. It is the main source of income to a business. E.g. if prices went down in Cadbury's for promotional purposes. Its cash flow and long-term profitability could be seriously affected. As with their confectionery, there is usually arrange of prices. These can vary according to quantities bought, the importance of the customer and the market segments.
Price can be long term or shot term. Pricing can also involve discounts special offers. Allowance, credit and trade ins. It is very important. It is very important for Cadbury's to get its price decision right.
Looking at the analysis of the questionnaire on average income spent on chocolates and how much customers were willing to spend on chocolates . it shows that people of low income groups who earn less tend to spend more on stuff like chocolates. From the questionnaire results more people were willing to spend at least 35p on chocolate's bars which is good because that is a the price Cadbury's product are sold. Therefore Cadbury's chocolates are at a good price rate. And they still give special offers for promotional reasons because of competition but Cadbury's has to be careful not to set their prices too low because if the do their cash flow and long-term profitability could be seriously affected. As with their products there is usually a range of products there is normally arrange of prices. These can vary according to the quantities and market segment There are a number of pricing strategies which can be used by Cadbury. Cadbury can use promotional pricing because of its advantages . the business should use penetration pricing by giving special offers more often to attract more customers to buy their products . Destruction pricing is another method that the business can use to set the prices for their new products it is also known as "price wars"
The most preferable pricing I will advise Cadbury's to use is the penetration pricing because of it's advantages. The business should use the penetration pricing which is setting prices very low for their prices very low for their product to penetrate an existing market. They will gain entry, greater market share and profit. Another reason is that if Cadbury's if introducing new products then its best to use the penetration pricing because it is associated with the launch of new products, looking at competitors are charging will help determine how high or low Cadbury's should set their prices.
Cadbury should not set their prices too low but to be able to cover costs for other resources such as cost for production, promotion and other resources.
Skimming pricing sets prices too high to take advantage of some people s desire for anew product or design at any price , as with premium pricing the high price may give extra appeal but its main disadvantage is that consumers become more sophisticated they will often delay purchasing until the price comes down. It is most effective if demand is inelastic where people will want the product at any price.
Competitive pricing is where the business sets a price roughly in line with its competitors. Cadbury's usually uses competitive pricing. And they should continue to use it.
Cadbury's also uses demand based pricing in which they set their prices based on what they think the consumer is prepared to pay.
Cadbury's also makes sure that their products are good value for the price set meaning the products should be worth the price it is sold.
Promotion Policy:
Promotion consists of a number of techniques, which create awareness of the products and persuade the potential customer to make their buying decision. Cadbury's should use techniques, which include advertising, branding, packaging, publicity/public relations, selling, sales promotion and merchandising. Each differs from the others but all of them though to given situation, will be used to create a unified product image and give Cadbury's a Corporate identity.
The techniques but all (in a given situation) will be used to create a unified product image and give Cadbury the corporate image identity. From my questionnaire results about 70% prefer Cadburys to mars and Nestle which indicates its popularity. Cadbury's should find the right advertisement method to send out the message about new products that are about to launch. Cadbury's can advertise by using different advertisement methods. They could advertise by using vision and sound: TV, radio, and cinemas. Paper based text: national newspapers, magazines, and local papers. Leaflets and catalogues and also sponsorship. Cadbury's already sponsors Coronation Street. From my questionnaire results 80% of the customers are best influenced by TV advertising. And About 55% say advertisements influence them occasionally
Identifying the right market should be should be considered by Cadbury's. it must be aware of markets which markets or market segments are being targeted . The branding should be a way of making their products to be easily identified by customers, by creating name, design, symbol or logo which is unique.
Packaging and direct marketing are all part of promotion method.
Cadbury's also uses the internet for marketing and selling goods, Cadbury's can use this to make bigger profits, they can reach more people, it is available 24hours a day, saves time and it provides a lot of information for customer, .on www.cadbury.co.uk the website is very bright and colourful it creates a chocolate atmosphere and contains a lot of information.
Place Policy:
When planning its marketing Cadbury's needed to ask a number of questions relating to place, like which outlets would their customers prefer them to sell their products? How will they physically move the product to the chosen outlets? How far a field do they wish to operate (locally or internationally) ? Place, or distribution policy as a massive, complex decision area that incorporates these questions and potentially more.
As part of recommendations and conclusions, is the implementation of the marketing mix to Cadbury's new line of clothing, which gives a plan by which to operate to influence and satisfy the buyer/consumer. The marketing mix consists of four ps mentioned above.
when planning their marketing Cadbury's needs to ask a number of questions relating to place, like which outlets should they sell their products ? How they physically move their products to the chosen site? How far a field do they want to operate ( locally nationally and internationally) . _Place or distribution policy is a massive complex decision area at Cadbury's incorporates these questions and potentially more
Cadbury's should sell their products in many different outlets, dependant shops shopping centres high streets and local shop, internationally as well. Cadbury's must get their products to the right place and it can be done by using different types of distribution methods which suits them best. Cadburys usually use indirect sales method which using intermediates such as retailers or newsagents
From my questionnaire results it shows that about 75% customers purchase chocolates from corner shops Daily. The most common method most businesses use in distributing their products is through the wholesaler to retailer then to consumer. Cadbury's should continue using this method because as it is a clear proof that it has been tested and successful in many firms as a way of distributing their products.
In producing a strategy itself, the report implements on the marketing mix to Cadbury's new chocolate ( triangle dairy milk hazelnut)
Strategy can be defines as the direction and scope of an organisation over the long term: which achieves advantage for the organisation through its configuration of resources within a charging environment, to meet the needs of markets and fulfil stakeholder expectations.
Strategy for Cadbury's will include analysis, choice and implementation . it is more important to do what is strategically right than what is immediately profitable.
Once a company has carefully segmented the market, chosen its targets customers, identified their needs, and determined its marketing positioning it is better able to develop a new market. Marketers play a key role in the new product process, by identifying and evaluating of new product-ideas and working with research and development and others in every stage of development.
Cadbury's must develop new products. New products developments shapes the company's future. Replacement products must be created to maintain or build sales. Customers want new products and competitors will do their best to supply them.
Company's that fail to develop new products are putting themselves at great risks. Their existing products are vulnerable to changing customers needs and tastes, new technologies, shortened products life cycles, and `increased domestic and foreign competition.
The best way to hold customers is to constantly figure out how to give them more for less
However diversification is the most expensive and risky strategy and requires intensive screening of both the ideas for new products and the opportunities in new markets. Many businesses fin d that the costs of development and entry n are too high and prefer instead to diversify by acquiring the markets and products of another business .Cadbury's should not consider diversification.
