Objectives: To conduct primary and secondary research to identify the marketing strategy of CDM.
Use appropriate theories/concepts to suggest and justify any potential improvements.
A young Quaker, John Cadbury opened a business in Bull Street, Birmingham in 1824. This company was to be the foundation of Cadbury Limited which is now the world’s largest chocolate producers. John Cadbury had become a maker of drinking chocolate and cocoa in 1831. It was at this time that the business changed from a grocery shop to the start of the Cadbury manufacturing business that is well known today. In 1861 John Cadbury’s two sons Richard and George took over the family business. By the time it was 1879 the two brothers Richard and George had built their own factory in Bournville.
Cadbury Trebor Bassett have 32% market share of the UK confectionary market. This UK confectionary market earns ï¿½5.6 billion per year. It consists of 156 different brands with Cadbury’s main competition being Nestle 20%, Masterfoods 20%). Others include Thorntons, Lindt and Kraft. They manufacture in 15 different 15 sites and these sites have approximately 7000 members of staff. The confectionary market is normally split into 4 segments
* Immediate Eat
* Home Buy
Cadbury’s are about to spend ï¿½7million on a new Cadbury Dairy Milk marketing campaign. This is ‘Project Jigsaw’ (an extensive questionnaire). This has received 250,000 responses over the past 5 years. The prize on offer for this is a chocolate hamper and this acts as an incentive to return questionnaire. Databases are then built using the information from the questionnaires. This is vital to market research. Also Cadbury sometimes take part in direct mailing where they gather information in return for coupons or vouchers.
* Project Jigsaw
* Market Map
* Focus Groups
Media Sourcing (daily research purchased externally)
Market research is vital to Cadbury Dairy Milk. They use market research because:
* To build market share.
* To target more effectively.
* To identify new opportunities.
* To anticipate changing needs.
This project will help me explore the marketing mix of Cadbury Dairy Milk. I will identify the current marketing mix of Cadbury Dairy Milk. I will need to:
1. Identify the current marketing Mix of Cadbury Dairy Milk.
2. Analyse the current marketing mix of Cadbury Dairy Milk.
3. Evaluate the current marketing mix of Cadbury Dairy Milk.
4. Suggest improvements to the marketing mix up of Cadbury Dairy Milk.
To identify I will state what Cadbury Dairy Milk currently does for each of the four 4P’s. To analyse I will have to detail why they do what they do. To evaluate I will look at the strengths and weaknesses of what Cadbury Dairy Milk do and then make a judgment. Lastly I will make suggestions for each and explain the benefits appropriate and drawbacks of the marketing mix.
* Cadbury Dairy Milk
* Hot Chocolate
* Cream Egg
* Dream White Chocolate
* Bar Cakes
* Ice Cream
* Dark Chocolate
* Easter Eggs
* Jelly Beans
A normal bar of chocolate is middle priced. It is not too high but then again it is not too low either.
Occasionally they offer promotions that could be seen as being penetration pricing
25p offer (49p)
* Gondola ends in supermarkets
* London Underground vending machines
* Petrol Stations
Above the Line
Below the Line
* In-store displays (2 for ï¿½1.80)
* Dump Bins
* Purple Patch
* Roadshow with free samples
* Website and email to consumer database (direct mail)
* Loyalty card system with retailers for high sales.
* ‘Get Active’
I will now be identifying the marketing mix implemented by Cadbury Dairy Milk. I will provide explanations of the grid for each of the four P’s.
Cadbury Dairy Milk packaging has changed over the years. From being a simple design from when it first started, it is now well recognized by many people. The product itself has developed. With Cadbury Dairy Milk being the mother brand, it now has a variety of different flavours. They have flavours such as Turkish Delight, Mint and Caramel. These flavours will suit the likes and dislikes of the customers that are buying the products and in the end it will satisfy all of their customers.
Cadbury Dairy Milk uses a lot of promotion to advertise their products. In supermarkets Cadbury Dairy Milk chocolate bars are placed in Gondola ends. These are useful because before customers go and pay for their products they will see what is being sold on the gondola end as it will stand out. This means that there is a higher chance that any of Cadbury Daily Milk would be bought.
Dump bins are another way of promoting any of Cadbury’s products. However dump bins are not well known in big supermarkets, they are better known in smaller shops and off-licenses. These dump bins can advertise special offers such as ‘4 for 99p.’
Cadbury Dairy Milk chocolate is sold almost everywhere. What you see is what you sell (WYSIWYS).
Cadbury had a contract with the London Underground and they have been selling their chocolate from wending machines for more than 50 years now. However, now this contract is under threat as the London Underground has put up the contract to supply vending machines. The London Underground is now planning to expand the range of products that are being sold in the vending machines. They plan to sell soft drinks and snacks rather than just chocolate. This could allow another company to take over the contract to provide the other products that the London Underground wants to sell in their vending machines.
I will now be analysing the marketing mix implemented by Cadbury Dairy Milk. I will provide explanations to the reasons behind the marketing mix strategy of Cadbury’s Dairy Milk.
Cadbury Dairy Milk’s equities are the swirl and the glass and a half.
I will now be analysing the marketing mix implemented by Cadbury Dairy Milk using the collated market research.
In order to collect primary research I will be asking a variety of people questionnaires related to Cadbury Dairy Milk and their products. I used this method as a questionnaire gives a variety of answers to choose from and I will also get accurate results.
I decided to create one questionnaire for the entire group as it is time consuming and it kept it more consistent. Each person in the group had a find three people to ask the questionnaire to. Together there would be around sixty sets of results. This adds to it being more time consuming as this would be quicker rather than each person asking sixty people themselves.
I also decided to collate my results because a larger sample size means that the results would be more accurate.
There are various problems that could have affected the results of my data. One of the problems that could have affected this was there was a small sample size. Because there was a small sample size the results wouldn’t have been as reliable as it would be if there was a bigger sample across a wide range of places.
Another problem that could also affect the result is where the questionnaire has been completed geographically. The questionnaires could have been completed in the same area.
Bibliography & Appendix
Quote the sources you’ve used. This person hasn’t used any sources, so their bibliography is blank.