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Marketing Essential On Cadbury

Introduction

Marketing refers to the promotional activities which are adopted by organisation in order to promote its products and services. It includes market research, advertisement and many other things which contributes in increasing profitability of the company (Baker and Saren, 2016). Present report is based on Cadbury, the company was founded in 1824 by John Cadbury. This organisation deals in confectionery products and offers its product at international level. This report includes information of about key roles and responsibility of marketing department along with their functions. Further describes relationship of marketing department with other core areas of the company. It also compares different marketing mix process of Cadbury with the competitor company that is Nestle. And, at last it develops a marketing plan for Cadbury.

P1 Key Roles and Responsibilities Of the Marketing Function

Marketing is considered as the set of activities which are conducted by the organisation for exchanging their views and thoughts about its products and services which shows value to the customer, society, partners, clients and many more related person at large scale.

Concept of marketing: 

It emphasises on the philosophy which states that organisation are firstly required to evaluate needs and demand of the customers and after completion of this analysis they should take effective decision which will help them in satisfying needs of customers. It basically aim to increase number of loyal customers for organisation.

Current and future trends of marketing:

Marketing department is changing day by day according to development of industry as well as market place. As per the evaluation, it has been identified that currently organisations are using print media as a marketing activities like pamphlet, posters, newspaper ads, magazines and many other options. This helps organisation is sharing about the companie's products and services with the customers (William and Zikmund, 2012). On the other hand, marketing department of organisations can also adopt social media as a marketing tool in order to promote its products and services more effectively. Social media is a part of online media that will help organisation in connecting to huge number of customer at global level. It also contributes in increasing profitability ratio of the company with the increasing number of loyal customers.

Marketing process: 

Marketing process is basically consist of 4 steps which is followed by the department in order to persuade interest of customers towards their products and services. These steps are divided into 4 different stages which are described as below:

  • In the first step organisation basically evaluates external market in order to identify available opportunity at market place. This includes needs, demands and requirement of customers.
  • After evaluation of the market, organisation often selects target market which can generate maximum output for them (Baack, Harris and Baack, 2013). In this, further customers are also targeted as per the type of product which is offered to customers at market place.
  • After identification of target market, marketing develops an effective marketing mix strategy which will contribute in promoting products and services with the targeted customers.
  • Last step of this product involves execution of the plans and strategies which are developed for the purpose of promoting products and services with the customers.

Cadbury is a UK based organisation which offers high quality chocolates to its customers at international level. Its chocolate are much popular among customers for its unique taste and different flavours that are offered to the customers. As per the given case scenario, it has been identified that there are numerous of functions which are performed by marketing department in order to generate huge amount of profitability for the company. In relation to the Cadbury, marketing department of this company plays essential role in its growth. As it helps the company in communicating with its customers about new products and services which are offered by the company at market. It can be said that effective marketing practices are helpful for the company in increasing number of its loyal customers. It has been evaluated that there are numerous of marketing functions which are performed by the marketing department of the company. Some of these functions are described as below:

Market information: 

In the first function, marketing team initially evaluates overall market in order to identify needs and demands of the customer (Silberschatz, Galvin and Gagne, 2014). This includes analysis of both internal as well as external factors which have influence over operational activities and profitability of the company. It also analysis products and services which are offered by the company in order to check that they are actually liked by the customers or not. This collected information of market is further used in market segmentation.

Market planning: 

In this function, marketing manager aims to prepare an effective market planning whose main motive is to meet targeted marketing objective. It includes many aspects like promotion, productivity level, action programs and many other activities. Major aim of this market planning is to enhance presence of the company at  market place. It also helps in increasing market share of the company.

Exchange functions: 

Main function of marketing department is to buy and sell products and services of the company at market place. In context to Cadbury, marketing team of this company evaluates overall market condition in order to understand actual demand of customer (Joshi, 2012). The function also contributes in availing products and services of the company according to their desired demand. This marketing function includes personal selling,sales promotion activities, advertisement and etc. Overall it helps in increasing sales of the company by conducting an effective interaction with the customers.

Product designing and development: 

This marketing function mainly emphasise on formulating appropriate designing and development of product in order to attract target customers of the organisation. In context to the marketing department of Cadbury, the head of this department mainly focuses on observing actual market where every customer demand for new design. In this regard, they willingly takes an appropriate decision which can satisfy expectation of customer. Further, marketing team guides production team about making shapes, style, design etc, which will satisfy customer.

Distribution channel: 

It refers to the function which includes transportation and storing. For marketing manager, the function aims as formulate effective warehouse system where products of the company can be stored at bulk in order to make them safe. This also helps organisation to satisfy the need of the frequent customers as products of the company are stored in advance only. In context to Cadbury, the company can hie its warehouses in every country in order to transport its products to retailers in continuous manner (Rossi, Allenby and McCulloch, 2012).

Financing: 

In this function of marketing department, the team also operates various activities at market place which are related to the finance. For example: Marketing manager of the Cadbury often gives credit facility to the customers(channel members or retailers) as they are considered as the regular client of the company. Marketing team of the company also negotiates with these retailer about the prices of chocolate. It has been observed that these department gives credit facility to retailer in order to maintain healthy relationship with them for future. It also contributes in the increasing sales of company.

As per the above mentioned functions of the marketing department it has been analysed that this department perform various roles in market place as well as within the organisational premises in order to maximise profitability ratio of the company (Brady, 2014). These functions also believes in making effective relationship with the distributors as well as retailer which helps them in satisfying demand of the customers.

P2 Roles and Responsibilities of Marketing Relate to the Wider Organisational Context

Marketing department of every organisation plays an essential role in growth of the company as they are sharing information about products and services at market place. It can be said that marketing department of Cadbury is interrelated to various organisational departments which contributes in the growth of the company. This interdependencies occurs because mainly  marketing department is the only one which interact with the customers as well as other related person at regular basis. And further marketing department guides internal departments about actual demand, needs and wants of the customers. Interrelationship of marketing department with other department of Cadbury are described as below:

Marketing and Human resource:

Marketing department is related to the human resource department in the company. The marketing team is responsible for promoting products, services and other activities of the company at market place. This familiarise customers about organisation, its brand image, goodwill, financial status and many more details (Clow and James, 2013). This also attracts candidates who are seeking for the job. As a result, these candidates can be further hired by the Cadbury's HR department in order to fulfil their vacant Job in the company. It reflects dependency of HR department with the marketing department as if marketing team will not make goodwill of the company effectively then no one will agree to work in this company.

Marketing and Finance:

Marketing department of Cadbury helps finance department by increase value of the company at market place. This will increase more number of customers as they are aware about the company, its products and services as well as its uniqueness features. All of these attracts high range customer and raises fund for Cadbury, as its sales has been increased with the increasing goodwill of the company. This helps finance department to allocate funds to different department which will help them in performing their business activities effectively. On the other hand, marketing department is also directly related to the finance department. As it provides funds to them for executing their marketing plan at market place in effective manner. This reflects interdependency of both the department with each other.

Marketing and Production:

Marketing team of Cadbury communicate actual needs and requirement of the customer to the production department in order to make them realise about customers expectation. This helps production team to modify their product according to the requirement of the customer. This saves the wastage level of production team as they manufactures amount on the basis of customers need only (Silver and et al, 2012). On the other hand, in festive seasons production team helps marketing team in satisfying demands of customers which is quiet high in comparison to the off season days. Production department also produces extra products beyond their shifting hours. This reflects interdependencies of both the department on each other.

Marketing and research: 

Research department of Cadbury collects information about the targeted customer zone of the company. This gathered information is used in finding out needs, requirements, buying behaviour recent trend of the customers. Further, research avail this collected data to the marketing team in order to aware them about actual needs and status of the customer. As a result, marketing department prepares an effectively marketing plan which is further used by their team in order to influence interest of customer towards them. This also guides marketing team the way through which they can represent Cadbury's products and services to the customers on the basis of their respective demand. It shows their interdependency of both the department on each other.

As per the above mentioned interdependency of various department it can be said marketing department is related to every department as it helps them enhancing growth rate of organisation. So that, they can increase profitability of company.

P3 Marketing Mix to the Marketing Planning Process to Achieve Business Objectives.

7Ps of Marketing Mix

Basis

Cadbury

Nestle

Product

Cadbury is a leading global company which was introduced in 1905. It produces tea, coffee and candy brands. It uses high proportion of milk within the recipe as compared to rival products (Armstrong and et al, 2015). In beverages there is bournvita which stands as one of the leaders in milk accompaniment.

Nestle was introduced in 1905, it is one of the strongest FMCG company at a global level. It produces chocolates, milk products, and various prepared food aides. The main cash flow of nestle lies in the maggi noodles which itself is a landmark in the food industry.

Price

The price distribution of cadbury is reasonable accept some products like oreo which require more marketing to be on top as compared to other products. The Cadbury chocolate dairymilk is considered as premium brand with a reasonable price and with a  target reach in every segment as possible.

The price in this industry is depend on the market itself. The nestle coffee and maggi are the clear leaders in the market in terms of it's price as compared to its other competitors. The increase in price did not distract it's customer attention due to the quality of the product.

Place

The distribution strategy of Cadbury is magnificent as compared to other brands. It is available in every area possible except some rural area as where supply is low but the demand of the product is also very low. It follows the same marketing strategy of all the FMCG which is breaking the bulk.

The distribution strategy of nestle is known to be good for channel distribution with good marketing and sales network. It introduces various marketing tactics like trade discount to attract the customers (Babin, and Zikmund, 2015). The most in demand products of nestle are Maggie and nescafe.

Promotions

The promotion tactics of Cadbury for each of it's product is different like for Bourneville they have you don't buy a Bourneville you earn it. It uses ATL as well as BTL marketing but the BTL marketing is very good as compared to other brands.

The Nescafe tune of nestle is one of the most known tune in the advertising history which was launched 2 decades back. This type of nestle among it's customer is continuously increasing because of the excellent product quality of Maggie and it's amusing and humorous campaigns.

Physical Evidences

Cadbury maintains its physical evidence by adapting proper hygiene in the stores as it helps attracting more number of customers (Lovelock, 2011).

Nestle is using effective interior as its physical evidence. This helps the company in attracting more number of customers..

Process

CADBURY mainly emphasises over process of organisation through which they executes their business activities. The company is adopting latest technology in its process in order to avail quality products to its customers.

Process of Nestle focuses on minimising level of wastage. The company also allocates its resources effectively to the employees.

 

People

Cadbury is considering its employees as people as it organizes various induction and training sessions for their employees to deliver a good quality product and to build a bridge between the top level management and the low level management.

Nestle gives preference to employees and customers as its people. The company has approximately 323000 employees and its targeted customers are basically small children and youngsters.

P4 Marketing Plan

Marketing plan refers to the blueprint which guides marketing team about all the activities which are going to executed by the company in future. This plan also helps organisation to evaluate market condition which might affect growth of the company in future (Ahmed and Rafiq, 2013). In relation to the CADBURY, its marketing manager have formulated an effective marketing plan which will help organisational performing their business activities accordingly in order to attain their targeted goals and objectives. Marketing plan of Cadbury is described as below:

Overview of the Company

CADBURY is a renown brand in the world which deals in confectionery. The company was established in 1824 by John Cadbury. This organisation offers chocolate products to its customers, that are caramel, dairy milk, fruit and nut etc. Manager of this company often avail certain discounts to its customers in order to increase its sales.

Mission: Cadbury believes in continuous improving its quality of the products for delivering high class products to its customers.

Vision: The vision of CADBURY is to develop a brand name which becomes first priority of its customers.

Marketing objectives

  • The main objective of company is to enhance sales by 15% in 5 months.
  • To develop CADBURY Kurkure for increasing market share by 20% in next 2 years.

STP: It is considered as the three approach process which helps in making effective marketing plans. Through this process organisation firstly divides overall market on the basis of different segmentation. After segmenting organisation further targets potential customer in the segmented area according to needs and requirement of customers. And at last, positioning of the desired product is executed. STP of Cadbury is described as below:

Segmentation: It is the process of dividing huge market into smaller group of customers which helps organisation in connecting needs of consumers with their desired products. Segmentation is done on the basis of four different components that is geographic, behavioural, demographic and Psychographic.

Targeting: In this, after selection of segmented market the company often target customers on the basis of their requirement. The manager of CADBURY also targets consumer according to their needs and demands.

Positioning: In this, organisation positions brand value of the product according to the needs and requirements of the targeted customers. It involves the image and reputation of brand in minds of consumers at marketplace.

Swot analysis of CADBURY

Strength

CADBURY owns a strong distribution channel and also uses effective marketing practices.

It offers variety of products according to the budget of customers (Huang and Sarigöllü, 2014.). As it prices are based on size of its products.

Weakness

It is difficult for the company to acquire highly skilled and trained employees all the time.

As per the changing time people are more aware about their health which restricts them to eat chocolates and other products which are offered by the company.

Opportunities

The company can enter into other sectors like media. As there is the huge scope in this filed for a well know brand.

Threats

Increasing rates of raw material is a major threat for the company as it minimises their profit margins.

Number of competitors is increase in the same industry which reduces overall market share of the industry as well as company.

Marketing Budget:

Particulars

1st year

2nd year

3rd year

4th year

Initial money

10000

5000

5000

5000

Investment

10000

10000

6000

5000

Total

20000

15000

11000

10000

Marketing outlay

15000

1000

3000

5000

Promotion

4000

1000

5000

2000

Sales publicity

2000

2000

1000

1000

Direct selling

4000

3000

1000

1000

Total

25000

7000

10000

9000

Monitoring and Control

After formulation of marketing budget,it is essential for marketing manager or team head to monitor and control every activity at regular basis. The main aim of this step is control unwanted scrap or other unworthful expenses in order to save money of company which can be further used in effective area (opolek and ÄŒurin, 2012). For this, team head of Cadbury is analysing overall activities of the company that is required to be monitored at regular interval of time. As a result, it helps organisation in attaining its targeted goals and objective of the company.

Conclusion

From the above mentioned report, it has been analysed that effective marketing practices are beneficial for the organisation in order to promote their products and services at market place. It has been analysed that marketing process is beneficial in increases sales of the company. Along with this, it also describes about different marketing functions which helps organisation in improving their productivity level. It can be said that marketing department is interrelated to  all other departments in organisation.Along with this, its can be said that marketing plan helps organisation in executing their pre planned activities in effective way which helps the company in increasing its command over customer and also contributes in increasing profitability of the firm.

References

  • Baker, M. J. and Saren, M. eds., 2016. Marketing theory: a student text. Sage.
  • William, K. and Zikmund, B.J., 2012. Essentials of marketing research. London: Cengage Learning.
  • Baack, D. W., Harris, E. G. and Baack, D., 2013. International marketing (Vol. 3). Sage.
  • Silberschatz, A., Galvin, P. B. and Gagne, G., 2014. Operating system concepts essentials. John Wiley & Sons, Inc..
  • Joshi, M., 2012. Essentials of marketing. Bookboon.
  • Brady, D. L., 2014. Essentials of international marketing. Routledge.
  • Rossi, P. E., Allenby, G. M. and McCulloch, R., 2012. Bayesian statistics and marketing. John Wiley & Sons.
  • Clow, K. E. and James, K. E., 2013. Essentials of marketing research: Putting research into practice. Sage.
  • Silver, L and et al, 2012. The essentials of marketing research. Routledge.
  • Lovelock, C., 2011. Services marketing: People, technology, strategy. Pearson Education India.
  • Babin, B. J. and Zikmund, W. G., 2015. Essentials of marketing research. Nelson Education.
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