Professional Documents
Culture Documents
Marketing Plan
Marketing Plan
MARKETING PLAN
Marketing plan
ii
Table of Contents
EXECUTIVE SUMMARY ............................................................................................... 4
MARKETING OBJECTIVES ................................................................................................. 4
PRODUCTS OR SERVICES .................................................................................................. 5
PROJECTED OUTCOMES .................................................................................................... 5
SITUATION ANALYSIS ................................................................................................. 5
COMPANY ANALYSIS/INTERNAL ANALYSIS ..................................................................... 8
TECHNOLOGICAL COMPETENCY/EXPERTISE .................................................................... 9
MACRO-LEVEL MARKET (INDUSTRY) ANALYSIS ........................................................... 10
PRODUCT/SERVICE ANALYSIS ........................................................................................ 11
MARKET SEGMENTS ....................................................................................................... 12
MAJOR COMPETITORS/PARTICIPANTS ............................................................................ 12
PROJECTED MARKET GROWTH/MARKET SHARE OBJECTIVES ........................................ 13
EXTERNAL ANALYSIS ............................................................................................... 13
CURRENT OPPORTUNITIES .............................................................................................. 13
POTENTIAL FUTURE OPPORTUNITIES.............................................................................. 14
ENVIRONMENTAL THREATS ........................................................................................... 14
COMPETITIVE THREATS .................................................................................................. 14
TECHNOLOGICAL THREATS ............................................................................................ 14
MARKETING RESEARCH ......................................................................................... 15
PRIMARY RESEARCH ...................................................................................................... 15
SECONDARY RESEARCH ................................................................................................. 15
CONSUMER ANALYSIS .................................................................................................... 16
CUSTOMER PROFILE ....................................................................................................... 16
CONTINUOUS CONSUMER MONITORING AND RESEARCH ............................................... 16
TARGET MARKET(S) AND PROFILE(S) ................................................................. 17
MARKETING AND PROMOTION/ADVERTISING OBJECTIVES ..................... 17
MARKETING OBJECTIVES ............................................................................................... 17
PROMOTION/ADVERTISING OBJECTIVES......................................................................... 18
BRANDING CONCEPTS/OBJECTIVES .................................................................... 18
CREATING A BRAND IMAGE ........................................................................................... 18
PRODUCT, PRICE AND DISTRIBUTION STRATEGIES ..................................... 19
PRODUCT DESCRIPTIONS AND PRODUCT/SERVICE MIX STRATEGIES ............................. 19
PRICING STRATEGIES ..................................................................................................... 19
DISTRIBUTION STRATEGIES ............................................................................................ 19
SALES PROJECTIONS ................................................................................................. 19
MARKETING BUDGETS ............................................................................................. 20
BUDGETING LIMITATIONS AND ASSUMPTIONS ............................................................... 20
RETURN GOALS .............................................................................................................. 20
OBJECTIVE AND TASKS .................................................................................................. 20
E-COMMERCE/INTERNET MARKETING STRATEGY....................................... 21
E-COMMERCE INFRASTRUCTURE .................................................................................... 21
E-COMMERCE OBJECTIVES ............................................................................................. 21
ii
Marketing plan
EXECUTIVE SUMMARY
This marketing summary aims at introducing Cadburys white chocolate in the
Indian market. Cadbury is the world leader in marketing of chocolate and it
commands about 70 percent of the Indian chocolate market. The objective of this
marketing plan is to successfully introduce the brand in the Indian market. The main
target market segment will be the female adult population in the Indian market. It is
expected that within three years, the product will have acquired about 30 percent of
the Indian adult female chocolate market. The introduction of the brand in the market
is based on marketing research which shows a high percentage of unnerved rural
population. The marketing plan will use a number of above and below line marketing
strategy like adverting on mass media, off street sampling, and others. The
advertising strategy will emphasize on creation of brand personality.
Objectives
The following are the marketing objectives for the marketing plan:
To introduce the product successfully in the Indian market within a period of
6 months, to ensure that there is a high level of awareness of the presence to white
chocolate brand in the India market by using effective marketing strategies, to put in
place a wide range of marketing strategies available in the Indian market including ecommerce strategies to ensure that there is overall growth of the product in the
market, to acquire about 30 percent of the female adult market segment within period
of 3 years from the introduction of the brand in the market.
Products
This marketing plan is looking to market a white chocolate brand of
Cadburys Dream in the Indian market. Cadburys Dream is a brand of white
chocolate which is mainly targeting the female adults in the Indian market. The
introduction of this brand in the market is based on an extensive research that was
carried out in the Indian market which shows that there are social and cultural factors
which have been preventing adult population from consuming chocolates.
Projected Outcomes
The following are the expected outcomes of the marketing efforts: One of the
most important expected outcomes of this project is that successful introduction of
white chocolate in the Indian market. It is expected that this marketing effort will
successfully introduce white chocolate in the market and increase the product
portfolio for Cadbury brands in the market. Apart from successfully introducing of
the product in the market within a period of six months, it is also expected that the
marketing efforts will lead to increased financial performance of the company. This
will be the short term expected outcomes of the market. It is expected the product will
have acquired a large market segment of the female population in the Indian market.
On the long term, it is expected that the product will acquire more than 50 percent of
the market share.
SITUATION ANALYSIS
Cadbury is the market leader in the Indian market. Cadbury is the fourth
largest supplier of chocolate and other sugar confectionaries in the market. In India it
has the largest share of the market with more than 70 percent of the market share.
The following is the SWOT analysis for the company in the Indian market:
Strengths
The company has an already large established business in the Indian market. Since
1824, the company has established itself as a world leader in the confectionary
market. It has operated in India since 1948. In India it has about 70% of the
confectionary market. In line with its vision, the company has been striving to be
the world leader in the confectionary industry. Through innovation and strategic
marketing, the company has acquired about 10% of the world confectionary
market (Laura, 2008).
The company has good market reputation. With strong brands in the market, the
company is well positioned in the market. In the Indian market Cadburys has
strived to build a good market reputation. This has worked positively for its
products. It is on this good reputation that the market can embark on introducing
the new brand in the market. Cadbury India was ranked the 5th most respected
Indian company by Business world magazine in 2007 (Laura, 2008).
The target market is also quite large. With the female population marketing more
than 56 percent of the Indian population, there is a wide target market for the
product. The Indian chocolate market has been recording growth in the recent past
and there are future prospects of growth. Therefore the target market is slowly
expanding (Cadbury, 2008).
Weakness
The target population is quiet large and there are fears the demand for the product
may outdo the capacity of the company to satisfy the demands of the market. It is
still not clearly established the rate of growth of the product in the market but there
are expectation that the product will record a high growth rate. This means that the
company will need to increase its production capacity in order to match the rate of
growth of the market (Laura, 2008).
The company has not been able to establish a distribution network in the country
that matches the demands of the market. In this case the company has not
established a distribution network to the interior due to infrastructural development
issues (Cadbury, 2008).
Banking on the success of the other brands in the market may have negative effects
on the introduction of the new brand in the market since the products will be
targeting different markets (Cadbury, 2008).
Opportunities
The company can introduce the product in the market in unique way. With the
growing importance of beauty shows, the company can host beauty competition in
order to help the target market identify with the product. This will introduce the
product in the market in unique way. The company can also host other events like
The company can use a wide range of marketing strategies which will lead to the
overall growth of the product in the market. The Indian advertising market has
been growing at a rapid rate which means there will be an array of opportunities
for the growth of the market. There are many advertising strategies for the
company in the Indian market (Cadbury, 2008).
Threats
There is threat of entry of other products in the market. In this case there are
threats of entry of new products in the market which will increase the level of
competition in the market. There are other companies which are likely to introduce
the same products in the market once there is success of the initial product
(Cadbury, 2008).
that six decade, the company has established a market portfolio that has positioned it
well in the confectionary industry. Currently the company has a market share of
more than 70 percent of the chocolate market.
The company has a worldwide operation. This gives the company a chance to
transfer products which have been successful in one market to the other emerging
market. The company operates in more than 200 countries in the world with the main
markets in USA, UK, Ireland, South African and with other operator in emerging
market like India, China, Thailand, and others. Cadbury India has five companies
owned manufacturing plants in locate at Thane, Induri ad Malanpur, Bangalore and
Baddi. It has four sales offices in New Delhi, Mumbai, Kolkota, and in Chennai
(Laura, 2008).
Cadbury India has good human resource policies which have ensured the
growth of the company in a recent 2006 survey Cadbury India was ranked the 7th
overall greatest place to work and was also ranked number 1 in FMCG Company in
India by the Great Place to Work Institute. The company has been improving its
ranking in the recent past for the last 10 years. All over the world the company
employs more than 60,000 employees operating in more than 200 countries (Cadbury,
2008).
One of the most important factors in the overall growth of the company has
been heavy investment in technology. Through innovation the company has placed
new recipes in the market which ensures reduced cost of production. Investment in
the new technology has ensured the growth of the company in the market. With a
worldwide operation the company has been investing in technology which is first
tried in its main market and then deployed to the emerging markets like India.
The company has a strong management team with a strong centralized
management structure. His ensure that there is standardization of operations
procedures in all its plants. The company also has put in place effective corporate
management structures which ensure timely disclosure of information on the
performance of the company. This is important for the overall financial management
of the company (Cadbury, 2008).
(ii) Weakness
The company has not been able to standardize its operation in all the countries
where it operates. For example while the company has a strong market share in India
and other emerging market, its market share in the established market like US market
has been declining. Its US market share is not strong enough to guarantee its market
leadership (Cadbury, 2008).
There has been declining market demand for chocolates with the emerging
health concerns. The company has not done enough to defend its products in the
market or put in the market other products which take care of the health concerns of
the customers.
Technology competency
As has been listed one of the most important growth factor behind the
company success n the emerging market has been the use of modern technology
which gives it an upper hand compared to other companies. The company has been
testing new technology in the established or in its main market and then transferring
the most appropriate technology to the emerging market. This has been an important
growth factor in the overall performance of the company. In line with the growth of ecommerce, the company has been built its site from which customer can access all the
10
needed information about t operation of the company. The company site it the main
communication centre between the company and other stakeholders (Cadbury, 2008).
11
in the world. However the overall sugar confectionary segment in the Indian market
has been declining with a total decline of about 19 percent recorded in 2007 (Laura,
2008).
Cadbury with a number of products including Daily Milk, Perk, Gems, 5 Star,
Celebration, Bytes, Dairy Milk clairs, clairs Crunch, Mr. Pops and Halls is the
leading player in the chocolate segment, clairs segment, Lollipops, and the Mints
Segment (Cadbury, 2008).
Cadbury is also the leading player in the milk beverage segment which is
valued at 16.1 billion Rupees. This segment has an annual turnover of about 63,000
tones and has been growing at a rate of 10.1 percent. Here Cadbury is the main player
with Cadbury Bournvitta and Cadbury Bournvitta 5 Star Magic (Cadbury, 2008).
Product analysis
Cadbury India specializes in production of confectionaries. In this category
the company produces a number of products including Dairy Milk, Perk, Gems, 5
Star, Celebrations, Bytes, Dairy Milk clairs, clairs Crunch, Mr. Pops, and Halls
brands. In the milk beverage section, the company produces Cadburys Bournvitta
and Cadbury Bournvitta 5 star Magic (Laura, 2008).
This marketing plan is planning to market Cadbury white chocolate in the
market. It is in the category of chocolates and it is expected to target the adult
population. The product is made in the same process as dark chocolate but the color is
modified so it has the same natural taste as dark chocolate although it has been
described creamier and tasty compared to other chocolates (Laura, 2008).
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Product/Service
Comparison
Your Product
2 Rupees
Price
Perceived
White colored,
more creamy and tasty
Marketing/sales
Advantages
Targets a
specific market
population mainly the
female segment
Packages in
white and blue package
Quality
Feature 1
Feature 2
Long
rectangular bar form
Nestle
Proctor
3 Rupees
1.5 Rupees
Brighter
than the normal
dark chocolate, a
bit brittle
Targets
the general market
population
Darker and
creamy
Targets
children population
Packaged
in red an orange
packages
Short
square form
Packaged in
purple and grey
packages
Round in
shape
Target
the upper class
market
High
price likely to
result to high
profits with less
sales
Low price
for general market
Feature 3
Competitive
Benefit 1
price
Benefit 2
Target market
highest consumers of
chocolate
Likely to
make high sales
based on volume of
sales
Market segment
The company is currently serving a wide range of market ranging from the
adult to the children population. The company has been taking a wide market
population appeal in its marketing strategy. However this marketing strategy is
targeting the female adult population. Apparently this is the leading market segment
in consumption of chocolate products but the adult population has been neglected
especially in the rural areas. More than 50 percent of the Indian population is female
population and therefore the company is targeting large market (Laura, 2008).
Major competitors
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Core
Strength
Secondar
y Strength
Cardbury
Wide
established operation
ad good reputation
Wide
distribution network
Weak
Biggest
distribution system
Weakness
Core Competency Comparison
Nestle
targets
the high class
market
Links
with big stores
in the market
Weak
market appeal
Proctor
Targets
the lower market
segment
Local
distribution
network
Low
quality products
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Current opportunities
In the confectionary market, there are a lot of opportunities that currently
exist. There is a large female market segment that has not been tapped. Market data
shows a high consumption of chocolate in the urban market it still remains low in the
rural market. There is a large rural market that has not been catered for. These
marketing strategies will therefore look on tapping into the urban and rural female
market. Internet usage in India has been growing at a very high rate and majority of
the urban population is connected to the interest. Since there is not company that is
currently using online sales, the company will look into using this strategy to boosts
its sales (Laura, 2008).
Potential future opportunities
In the future the company expects the chocolate and the general confectionary
market to grow in India. Therefore it is looking at introducing other confectionary
products targeting the same market. In the future the company will offer its other
products online to the specifically targeted market (Laura, 2008).
Environment threats
The industrial environment has been enabling for the growth of the industry in
the India market. The regulatory environment has been more conducive which has
enabled the growth of the industry. The social environment has been one of the main
growth factor supported by increasing polarization of culture which has popularized
the use of products like chocolate. The only environmental factor that is likely to be a
15
threat to the future growth of the industry is the regulatory environment. There may
be introduction of laws in the industry which may impact negatively on the growth of
the industry (Laura, 2008).
Competitive threats
The entry of other players in the industry remains a threat to the operation of
the company. The entry of other players will increase the level of competition
especially when it comes to the market share and competition in resources for
manufacturing the products.
Technological threats
One of the most dynamic factors in the world has been technology. World
technology has been changing very fast. No one is sure of the when the current
technology will become obsolete. While the company has been investing heavily to
keep up with the emerging technology in the market, rapid change in this technology
will impact negatively on its fanatical performance as it will be forced to invest in the
new technology.
MARKETING RESEARCH
According to the market research data there is strong evident that supports the
introduction of the new brand in the market and to the target population. The research
data shows that 70 percent of chocolate consumer ages from 20 years to 60 years are
likely to purchase white chocolate from Cadburys compared to any other leading
chocolate brand in the market. Of this percentage, 88 were females. This shows that
there is a high demand for white chocolate in the market. 70 percent of those
interviewed were frequent shoppers at retail outlets while it was only 30 percent who
16
were shoppers at leading chain stores. This shows the important of having distribution
network that will reach the retail sellers (Cadbury, 2008).
Primary Research
The primary research data for marketing was conducted in conjunction with
the distributors. It showed a high rate of preference for introduction of white Cadbury
in the market. The market research data shows increased preference of white
chocolate among the adult female population.
Secondary Research
From the industry market research data, it is evident that about 77 percent of
the chocolate market is concentrated in the urban areas. This means that a large
segment of the rural population has not been catered for. Confectionary industrial
data shows that more than 70 percent of the potential consumers are likely to be
females. This shows the increased rate of demand on chocolate among the females
who have not been appropriately targeted especially in the rural areas (Laura, 2008).
E-commerce data shows an increasing trend in the use of online purchase in
the population especially the emerging middle class. There are more Indians who are
getting connected to the internet which shows a potential growth of e-commerce
(David, 2004).
Consumer analysis
The main target market for the product is the female market segment in the
rural and urban areas. Females are the leading consumers of chocolate in the market.
However it has been shown that female also act as gate-keepers while showing for the
product since they rarely consumer half of the chocolate they buy. They share it with
17
others. To the female segment chocolate is a specialty good which they have
remained extremely loyal to. Unlike males who will purchase chocolate on special
occasions like valentine days an other holiday, females are daily users of the product
(Laura, 2008).
Customer profile
The specific customer for this product will be the adult female consumers in
the Indian market. Adult female consumer represents a large segment of the Indian
market which is still the leading consumer of the chocolate products. Females are
likely to consume chocolate more than males. They also make important purchases
decision for the family and therefore they have a lot of influences on home purchases
(Laura, 2008).
Continuous consumer monitoring and research
There will be continuous monitoring of the success of the marketing strategy.
This monitoring will be carried out on monthly bases in order to evaluate the success
of the marketing strategy. It will assess the overall effectiveness of the marketing and
advertising strategies which have been employed in the market. This will be the
responsibility of the marketing department. There will be an overall evaluation which
will be carried out at the end of the every 6 months.
TARGET MARKET PROFILE
The female population makes up about 56 percent of the Indian population.
This is a large customer base fore the products. The main aim for target the female
population is that it will be in a position to influence the rest of the population to
18
purchase the product. The female population is the largest consumer of chocolate
product not only in the Indian market but in other markets as well (Laura, 2008).
MAREKTING AND PROMOTION
This marketing strategy will use above and below the line advertising
strategies to reach the potential customer. Above the line strategies that will be
employed will include advertisement on the mass media, online advertisement, on
billboard and in other popular places. Below the line strategies that will be employed
by the company will include off street promotion and sampling which will be carried
out in all the corners of the country.
Marketing objectives
To put in place a wide range of marketing strategies available in the Indian market
including e-commerce strategies to ensure that there is overall growth of the
product in the market.
To acquire about 30 percent of the female adult market segment within period of
3 years from the introduction of the brand in the market.
Promotion and advertising objectives
The product will be launched in the market during a Beauty competition
which will be organized by the company. The company will carry out a number of
advertisements in the mass medical and online. There will also be outdoor
19
advertisement activities in the billboards, and popular places. The company will also
carry out off street promotion and sampling activities which will give consumer the
true taste of the product. The company will also establish a site for the product to
promote sales and to have timely response from consumers.
BRANDING OBJECTIVE
The success of the product in the market will depend on the branding image.
In this case the company will create a personalized brand images. To ensure the
growth and continues of white chocolate in the market the company will ensure that
there is no brand which goes to slow growth or exist stage in the product life cycles.
The brand will be distinct from other through package where it will be packed in
white and blue cooler packages and the brand name will be Cadburys Dream.
Creating brand image
To create a brand image, brand personality approach will be used. In this case
the launch of the product will be tied to females characteristic which they can easily
identify with. This will identify the characteristics of the brand in relation to the
target market. This will use key elements that enhance female appeal like styled,
confident, sophisticated, and self assured
PRODUCT, PRICE, AND DISTRIBUTION STRATEGIES
The plan will employ a number of strategies in marketing. In this case it will
use different strategies in product price and distribution to ensure that that product
reaches the indented consumers in the market. Strategies in product will ensure
provision of quality product in the market. The pricing strategies will aim at creating
20
a price competitive edge while the distribution strategies will ensure that the products
reach the final consumers.
Product description
This marketing strategy will be offering a particular product in the market. It
is specifically offering white chocolate in the Indian market. The main brand that is to
be introduced in the market is Cadburys Dream which is mainly targeted for the adult
female population. The product will be offered in 45 gm packages, 100 gm and 200
gm packages. These will be the most important sized packages that the product will
be sold in. it will be sold in whole sale and retail.
Pricing strategies
Since the product is being offered for the first time in the market, the company
will use price penetration strategy where it will use low prices strategy to penetrate
the market. However this will be combined with cost plus pricing since it will have to
operate at a profit market. However the initial price set up will be based on the low
prices to penetrate the market. The product will be offered at Rupee 2 per 45 gm size
bar.
Distribution strategies
To ensure that the products reach the intended consumer, the company will
use the current existing distribution changing. It will sell the product in wholesale to
intermediary wholesales who will in return sell to the retailers. To reduce on the cost
of operation, retailers and distributors will be expected to obtain the product directly
from the company store to reducer the cost of production. However the company will
21
establish a number of stores on all provinces to take the product close to the retailers.
Taking the product near to the consumer will be the main pillar for the success of the
distribution marketing strategy.
Sales projection
2009
2010
200 000
250 000
Opening stock
60 000
80 000
Cash sales
6 700 000
7 000 000
1 558 500
1 722 500
Marketing budget
Expenses (Rupees)
2009
2010
Transport
500 000
1 550 000
Salaries
130 000
2 140 000
Sampling product
600 000
600 000
License
130 000
140 000
Office expenses
230 000
240 000
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funding for the project is expected to come from the company head offices. It will be
assumed that the cost of products and service will not change as benchmarked on the
current cost.
Return Goals
This marketing strategy aims at ensuring total returns of about Rupee 1.5
million every year which will be ploughed back for the growth of the product in the
market. The main measure of the financial success of the marketing strategy will be
the overall net profit that will be made every year. The total amount of sales will be
used to assess the success of the marketing initiatives taken.
Objectives and tasks
This plan will effectively meet the objectives of the marketing strategy. This
is because the budget limitation which can impact negatively on the overall growth of
the product in the market will be mitigated through cost cut strategies like limiting the
number of field staffs, organized logistics to maximally utilize same transport and
others. However it is necessary to have on time alternative strategies which will
ensure the success of the marketing strategy
E-COMMERCE/MARKETING STRATEGY
The company will take advantage of the emerging e-marketing in the Indian
market. This will be implemented as follows:
E-commerce structure
The company will set up an effective e-commerce structure which will just be
a build up on the existing structure. The company already has a website but which
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E-commerce objectives
The main objective for implementation of e-commerce structure will be to
enhance the overall marketing capability for the company. The server will be used to
monitor the success of the e-commerce structure. It is expected that within three
years, online sales will be accounting for about 30 percent of the total sales for the
company. Currently the company site has about 1000 visitors every day. Per day the
company is expected to record a hit of about 2000 user within the first year which is
expected to rise to 9000 within second year and 12000 within 3rd year. The company
will expect to retain about 65 percent of all the first time visitors to the website. This
means the quality of the site must be improved now and then. (David, 2004)
Website content
The website will be the main communication site between the company and
its customers. Therefore it is expected to be user friendly and to contain as much
information as needed by the users. Specifically the website will contain information
like, the product and its description, the price of the product, how to order for the
products, where to pick the product in the (the nearest company store), where to post
comments about the product online, investors information, careers, and many more
24
information that will be needed by the users. The website will be easy to use by
arranging the contents in a simple manner. Most of all it will provide an interactive
space where the users can have online chat with the company. (Mark, 2003)
GLOBAL ASPECT MARKETING
The sale of white chocolate is not limited to the Indian market only. This
product has been successfully introduced in other market around the world like in
Ireland, UK, USA and other markets. These marketing strategies will be looking at
expanding the sales of the product from the Indian market to other markets in the
world.
ADVERTISING
Advertisement is the most important factor in the overall success of any
business. Advertisement helps the business to reach all the intended consumers in the
market. Advertising strategies are important in the overall success of a marketing
strategy. This plan will use advertising strategies to reach all the consumers in the
market.
Advertising strategy
In order to meet the objectives of marketing the company will taken a number
of advertising strategies. The overall advertising strategy will combine different
methods. It will place advertisement in the mass media. It will also use direct
marketing online. The overall spending for the marketing strategy will be divided as
follows:
25
27%
27%
online
advertisin
media
advertising
46%
Promotions
Advertising execution
In order to advertise effectively, the company will set up a specific department
that will be entrusted to carry out the advertisement. This department which will be
within the sale department will plan, execute and monitor various advertisement
methods. The effectiveness of the advertising campaign will be assessment on the
overall growth in sales of the product.
SALES PROMOTION
Internet sales promotion strategy
The company will not only carry out off street sale promotion and sampling as
a pull strategy but it will also use internet promotion strategy. This will be carried out
with two aims. First it will be aimed at ensuring that there is increased awareness of
company website to promote online sales growth and second it will be aimed at
promoting the sale of the product. The company will offer special offer are a reduced
at a discount of 15 percent for every purchase through the internet. The
advertisement for this offer will be carried out in the mass media and in the internet as
well (Giuly, 2000).
26
27
28
References
Cadbury, (2008): Home page. Retrieved from http://www.cadbury.co.uk/EN/CTB2003/
on 15th July 2008
David, L. (2004): Strategic marketing in a new market. Harvard Business Review
Giuly, B. (2000): Essentials of marketing. Oxford University
Laura, H. (2008): Cadbury India. New York Times, June 2008
Mark, T. (2003): Marketing in practice. Princeton University
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