UNIT 2935

ASSIGNMENT MARKETING (DETERMINE THE

MARKETING MIX)
LINGUIS INTERNATIONAL INSTITUTE
NATIONAL DIPLOMA IN BUSINESS LEVEL: 7
 CONTENTS

1. Marketing page one (unit, assignment, student, Tutor name)

2. An introduction to marketing Mix
3. Environmental factors 1.0
4. Target market 2.0
5. Marketing objectives 3.0
6. Pricing strategy 4.0
7. Product strategy 5.0
8. Promotional strategy 6.0
9. Distribution strategy 7.0
10. Marketing mix summary 8.0
11. Marketing mix impact 9.0
12. Consumer response 10.0
13. Competitor’s response 11.0
14. Monitor marketing mix performance 12.0
15. Conclusion
16. Reference
REFERENCE PICTURE HAS BEEN TAKEN FROM CADBURY OFFICIAL SITE
 INTRODUCTION

In this assignment we are dealing with the Cadbury Company which was founded by Richard Barrow Cadbury (29 August
1835 – 22 March 1899) was the second son of the quaker john cadbury, founder of Cadbury’s cocoa and chocolate company.

cadbury is one of the world's biggest company of food and beverages. cadbury confectionery is the main area where we are
focusing on. In this section there are so many popular names like Cadbury Cadbury Dairy Milk Fruit & Nut (Almonds &
raisins) Cadbury Dairy Milk Whole Nut (Hazelnuts) Cadbury Dairy Milk Roast Almond (Almonds) Cadbury Dairy Milk
with Caramel (formerly Cadbury's Caramel) .

cadbury company is quite popular in all parts of the world because of its quality and image. cadbury family has
grown to include chocolates, soups, coffee, cereals, frozen products, and other food products.

Cadbury follows a set of fundamental principles in order to sustain its name and fame in the market. Its existing
products grow through innovation and renovation and at the same time maintaining a balance in geographic
activities and product lines. Cadbury always believes in making long term policies instead if just being framing
out policies for small gains.

Cadbury firmly believe in the principle of decentralization which means each country is responsible for the
efficient running of its business. So each particular country appoints its own well trained and experienced staff
who is working for the Cadbury company.
1.0

In the marketing structure there are mainly two types of environment which is impacting on the cadbury. They
are classified as internal environment and the external environment.

INTERNAL ENVIRONMENT: The internal environment of cadbury is considered to be controllable. Cadbury does
have the full authority to control its internal environment basically internal environment contains of employees
and other staff working for the company. Marketing needs to keep an eye on the ideas within the organization
so that all the work which is going on remained focused on the customer. Stakeholders like shareholders
creditors ,debtors,suppliers have vested interest in the company.

SUPPLIERS: Cadbury being a global company rely totally on the business that support its operations. Cadbury
have a direct coffee and cocoa suppliers and farmers supplying direct supplies. If the supplier increases the price
of its supplies than Cadbury too need to increase the price of its products in the market. cadbury maintained
good relationship with its suppliers over the past years. And it is through these suppliers who supply \superior
quality raw materials which led to Cadbury to this high level that it had got brand image in the market. And it is
for this reason that Cadbury products are very much popular in the market.

EXTERNAL ENVIRONMENT : The external environment consists of seven types of factors natural, global,
technical, social cultural, demographic, political legal and economic. And this is uncontrollable by Cadbury and it
has no influence over it.

Demographic factors: Demography is the study of the human population. Cadbury company's marketers study
demography to access changes that takes place in the consumer market. In New Zealand ethnic minorities are
dominated by Maori 16% of population. The other ethnic groups are like European, Asian, African and
Polynesian. In New Zealand more than $10 billion is paid out to pensioners and beneficiaries yearly, with 141
000 people on the unemployment community wage (1.7 billion) and 475 000 on retirement, transitional
retirement, widows or war pensions (5.6 million).

Economic factors: The economic condition of the particular country does affect the purchasing habits of the
consumers living there. Cadbury company always keep an eye on the economic changes of a particular country.
As the market functions within the economy so it is greatly influenced by its position. The common economic
indicators are gross domestic product (GDP), rate of inflation, balance of payments, balance of trade, consumer
price indices, retail sales, interest rates, exchange rates and unemployment.

Inflation: In the economic structure inflation affects consumer confidence and the buying power. It is a vicious
cycle where increase in income push up prices, which push up incomes and so on. In order to control inflation
the government manipulates the wholesale interest rates which effects the rate at which money can lent out.
When the interest rates are high the consumers are spending less money the reason being the cost of repaying
the debt goes up as the interest rates are high in the market.

Political, Legal and regulatory factors: All the marketing activities be conducted within the government laws, and
it also need to follow the potential legislation and common standards or codes of the industry practice. These
regulations are formed to protect the interests of the society. These legislations have increased business
opportunities by freeing up telecommunications, gambling and alcohol retailing.

The New Zealand government also has laws for regulation of monopolies. The antitrust laws prohibit companies
from forming monopoly that would lead to control an entire industry. And then there is no room for healthy
competition. This law would be a positive sign for Cadbury Company to grow in the market against its
competitors like Cadbury and other companies.

Product and service regulation : All the product and services must comply with the safety, health and quality
standards. There must be specific terms and conditions for sale of goods and services. It must also cover the
patent, trademark or copyright protection, warranty, the transport, right of return or exchange and credit
details.

2.0

The Target market for Cadbury Dairy milk is the teenagers (5-12) years & youngsters and the office goers.The
tagline is "Have a break...have a dairy milk" while in the U.S. "break time, anytime".

Cadbury Dairy milk wants to target the youth of the market who are very much health conscious and who wants
to eat chocolate for a good experience. Hence we are targeting a sophisticated market. So the target market is
the college going students and the office going crowd. It will be a brand that they want to carry it for the rest of
their lives. In New Zealand there is multi-cultural society with different nationalities. And the youngsters and
office going people love to have chocolates in their breaks. Although there is so much of competition in the
chocolate confectionery market. Like Cadbury a rival chocolate have launched a similar product called "time
out". But Cadbury Dairy milk will stay ahead in its competition by giving maximum customer satisfaction and
profitability.

3.0

The marketing objectives of cadbury company are:

Cadbury company objective is to be the recognized leader in nutrition, health and wellness and the industry
reference for financial performance.

Environmental sustainability:Nestlé’s aim is to continuously improve companies performance and produce

tastier, nutritious food and beverages that are better for the environment Cadbury access the environmental
impact of its value chains including procurement, Logistics, manufacturing, marketing and consumer
engagement using a life cycle approach.

Anti-corruption: Nestlé’s objective is that businesses should work against corruption in all its form, including
extortion and bribery.

4.0
The pricing strategy of Cadbury Dairy milk is to maintain a stable price over a long period of time. In order to
maintain a strong brand image in the competitive market is a degree of flexibility in the pricing strategy. This is
the common characteristic of imperfectly competitive markets for producers to concentrate on non-price
competition. Cadbury Dairy milk always tried to maintain a stable price over the last many years.

Effects on consumer behavior: As most of the customers are very much price conscious in today's competitive
market. When Cadbury Dairy milk has been maintaining a stable price over a long period so this is a plus point
for Cadbury Dairy milk and it helps the customer to remain loyal with the brand. In pricing consumer's
background and socio economic status including income, education etc. also plays a pivotal role and because of
very much stable price even the lower middle class customer can afford it and it was a big plus point for Cadbury
Dairy milk.

5.0

Product Strategy: A company might have spent so much on the attractive packaging and on the promotion of a
product. But these all efforts and hard work will not market the product if it fails to satisfy the consumer need.
Cadbury Dairy milk is quite successful in the global market because it has got a unique dual appeal - as a four
finger chocolate bar,(which is known in the confectionery trade as a count line), sold at corner shops and
newsagent, but also as a two finger biscuit sold in super markets. Dairy milk is a product that has endured
because of its wide appeal across the age ranges and to both the sexes. Dairy milk is sold in 11g, 17 g and 35 g
finger bars and

Dairy milk chunky is available in 46 g bar.

For Cadbury Dairy milk, these intrinsic elements of the product or unique selling points include the:

Chocolate fingers.

Foil and band wrapping, unique in the count lines market and seen as an important feature which encourages
involvement and sharing by consumers.

Well known strap line - Have a break, have a Dairy milk.

Effects on the consumer behavior: From time to time special editions of Dairy milk are used to affect the
consumer behaviour.The Nestlé’s agents used to visit stores at frequent breaks to inform about the new special
editions and for giving credits for the expired or damaged ones. They also make sure that the stores are doing
proper stock rotation of their stock. In the market research it appears that the consumer prefers special editions
to be available for limited periods only and the consumers are likely to purchase the original dairy milk at the
same time or after these special editions. This is a good way to give something different to the consumers and it
provides a new life to the Dairy milk product life cycle. If these special editions runs well or become popular in
the market then the company tries to introduce them more than once. Like in the case of orange Dairy milk
which has proved so popular that the two finger multipacks are now permanently available.

6.0
Promotional Strategy:Cadbury has used a wide range of promotional tactics with Dairy milk. Promotional offers
have included free bars in the multi bar family packs and an instant win deal with McDonalds. In New Zealand as
well it has come up with counter basket promotions like Fix retail stores and star mart petrol stations. This
promotional strategy has left a great deal of impact on the customers because there were many of them who
never got taste of Dairy milk and because of this strategy company has gained many customers. The advertising
of the Cadbury dairy milk is done in the following media.

1. Television commercials.

2. Posters and billboards where the powerful colors of the pack and the product are used to dramatize the
message.

3. Magazines and newspapers.

7.0

Distribution Strategy: Cadbury (Dairy milk) has a well-developed distribution network or channel which makes
sure that it is available for purchase wherever and whenever the customer wants to buy. Sales of confectionery
like Dairy milk depend totally on its availability. With the market research showing that well over 60% of all
purchases are made on impulse. An intensive desire to buy a chocolate and an immediate availability. Due to
this reason, Cadbury tries to supply Dairy milk to as many outlets as possible. They are using both wholesale and
retail channels.

Point of sale merchandising is also important when consumers are making immediate quick decisions from the
wide range of products on view. Instantly recognizable packaging also helps to tempt customers. At the
international level Dairy milk is now been manufactured in Canada, Germany, India, Malaysia, China, Japan,
Australia, South Africa and the United States. Dairy milk is now been available in around more then 100
countries of the world.

Effects on consumer behavior: Place or Distribution has a vital role in consumer purchasing behavior because it
doesn’t matter how good the product is unless it is easily available to the customers when they want to buy. In
recent times it is experienced in shoe shops for example a potential for confectionery sales because of the large
number of families visiting these stores. It is also predicted that confectionery along with all foodstuffs will
available through cable and interactive television, video phones and the internet. So Cadbury needs to make
sure that Dairy milk available in most of the locations and within the easy reach of the consumer.

8.0

PRODUCT PRICE PLACE PROMOTION

Cadbury dairy milk is an
chocolate $2.09 each in It is readily available in In fix urban grocery
confectionery. countdown Big super markets like stores it is available in
Product line $ 3.30 each in Fix fort in Pak n save, specials at $4.50 for
(depth) street ( Dairy milk 65g) Countdown, New world, two (Dairy milk 65g and
Dairy milk 65g During the time of And in small dairy shops Dairy milk chunky 78g).
Dairy milk 45g promotions the like city star In countdown it is three
CHUNKY company like the convenience, Fix stores, for $3.00 for Dairy milk
Dairy milk chunky 78g wholesale suppliers like four squares and petrol chunky 65g.
Dairy milk chunky 65g Toops(N.Z.) provides stations, Caltex stores
the Dairy milk range at etc. The Promotions of
Packaging: Dairy milk a discounted or reduced TOOPS (logistics) In Cadbury is mostly done
mostly comes in a blue price to promote New Zealand Toops is on television, radio or
color packaging. upselling and do the one of the main internet and also in
provide the additional wholesale supplier of cinema commercials.
Service / Support: The display stuffs for the confectionery and other The New popular T.V.
Cadbury sales counter or other foods with four main ads of Dairy milk are:
representatives do visits promotions. centers at Wellington, Dairy milk Mehdi
the stores to sort out Palmers ton North, New advertisement and
complains, Credits for Plymouth & Napier. Dairy milk squirrel ad..
damaged or expired
products, to ensure Cadbury sales The old popular
proper stock rotation representatives visits advertisement on T.V. is
and to give updates to the stores to check for “Have a break, have a
them with regards to proper stock rotation Dairy milk”.
new bars of Cadbury, and removing the
new promotions or expired or damaged
deletion of slow moving bars. They also take
items. note that which of the
Cadbury range is going
good or fast and which
ones are moving slow
by chatting with the
store managers.

9.0

The elements of the marketing mix impact on the other elements of the marketing mix. In this discussion we are
discussing how the product and price will affect the other two elements like promotion and place. The four
elements of the marketing mix are very much interrelated and do have effect on each other if there is a any
changes. In this context we are having a case of Cadbury Dairy milk.

Product: In the case of Cadbury if it expands the current product mix by increasing its line's depth or by
increasing the number of product lines. Like recently Cadbury had launched a new product called Cadbury
Chokito. It contains caramel fudge, crunchy balls and loads of chocolate. It has attractive yellowish packing and a
saying “rip into it”.

Price: If the Cadbury company introduces a new product or a special edition at a lower price or cheaper price
than its other range. Then the customer might be tempted to buy this new product which might result that the
other similar company's range might go slower for short period of time. Like Chokito bar of Cadbury which is
newly introduced and is going quite good in supermarkets and in dairies.

Promotion: If the product which was introduced new is not on promotion then it will go slow in the market but
if it is on promotion then it will catch his share in the market. Cadbury Chokito is on special along with the other
Dairy milk chunky bars like 3 for $3.00 in Countdown. And there are big posters at the street corners advertising
the Cadbury Chokito. So the sales of Cadbury Dairy milks are a bit affected because of it but it remains the
favorite for most of the chocolate lovers.

Place: Places do have effect on the sales of the Dairy milk range of products. If the shops or super markets lie
inside the busy city areas like in countdown or other super markets and if it is on specials then the Dairy milk
range is moving very fast but in other case it will go as normal sales.

10.0

Needs to reanswer

The consumer response to the marketing mix is really good especially when these bars are on promotion. The
posters inside the stores tempt the walk in customers to buy them. At present in Fix urban grocery stores it is
under a joint promotion with Cadbury and Mars like two for $4.50. In Fix stores of Auckland Wellington petrol
stations and Caltex stores Cadbury Dairy milk are on a monthly specials like two for $4.50 which is going quite
good and is selling like hot cakes. In big super markets like Countdown it is a bit cheap like $3.0 for three. The
young children and youngsters like the Dairy milk too much. Cadbury Dairy milk is one of the favorite brand of
chocolate around the world.

The people of Japan are very emotionally attached with Dairy milk. After the Tohoku earthquake and Tsunami in
Japan Cadbury customer service received calls from consumers that they wish to support the victims with Dairy
milk. The famous award winning 2009 program named Dairy milk mail which gave the people the opportunity to
send a good luck token and a personal greeting to exam taking students right on the Dairy milk package.

Cadbury used to send supplies to victims but hadn’t panned a product to support the victims emotionally. The
product makes customer think about the Tohoku victims and encourages a more emotional bond. This
represents a new way of supporting victims, allowing Cadbury to utilize Dairy milk brand value to support and
donation activities a little more relevant and impactful. It is simple yet meaningful way for Cadbury to use core
strength to bring more emotional impact to its contributions.

11.0 Porter's five forces analysis:

1. Competitive rivalry within an industry.

2. Threat of substitute products.

3. Threat of new products.

4. Bargaining power of customers.

5. Bargaining power of suppliers.

Cadbury Dairy milk have main big competitors like nestle, Hershey’s and Mars. There are threats posed by
Cadbury's Dairy milk wafer to Cadbury Dairy milk, the bestselling count lines brand in the Great Britain for many
years. It is a major rebranding of Cadbury's range. So Cadbury is doing frequent modifications to the original
Dairy milk bar is an effort to revitalize the brand's slipping sales.

The bargaining power of supplier: refers to the powers of the suppliers to increase the prices of raw materials
or they can reduce the quality of the raw material. Here in the case of Cadbury Dairy milk this will have a
negative impact on the business as then Cadbury too helplessly have to increase the price of the Dairy milk in
the market. Hence Cadbury has to make good relations with the reliable suppliers. At the same time in order to
strengthen their own bargaining power. Cadbury has to have their own sites for production of these raw
materials and to reduce their dependence on certain suppliers.

In order to have competitive advantage Cadbury needs to lower cost and the differentiation. If Cadbury
Company wants to compete in the market against its competitors then it has to focus on any of these strategies
like differentiation, cost leadership, differentiation focus and cost focus. The main driving force of Cadbury is its
dairy products. Cadbury is having a competitive advantage of having a team of well qualified suppliers who are
always there to support Cadbury in all its development and growth through quality and excellence. Cadbury
always maintains a good relationship and go with the change in tastes and demands of the market. Providing
excellent quality products and services at a lowest cost increases the Nestlé’s competitive advantage in the
market to a great extent. Cadbury always tries to move forward in innovating new products and uses advanced
technology. Cadbury is having good understanding of the public sector for the public sector for their diversity
expectation and these government contracts helps them to gain competitive advantage in the market.

The SWOT analysis of Cadbury is:

Strengths: The strengths of Cadbury are the presence of its factories or operations in almost every country in
the world around 283000 people. The sales value has touched CHF 109.9 billion, with net profit of CHF 18.0
billion. Cadbury has reached a financial growth even in terms of recession by promoting the sales of smaller and
cheaper versions of products in the developing economies.

Weaknesses: Weakness is those elements which are having a negative impact on the business of Cadbury. These
may be in terms of inadequate financial resources, marketing skills or capabilities in relation to the competition.

Cadbury is not having any direct outlets and this can be one of the weakness as it can cause difference in profit
made. Nestlé’s another weakness is not having enough raw material production units, they are depending upon
other local raw material producers or through other trade channels.

Opportunities:Nestlé’s weakness of not having a direct outlet can be converted as an opportunity by

introduction of new direct outlets. Setting up their own farms and raw material production units is an
opportunity as it would reduce the cost of Cadbury. By acquisitions Cadbury can enter the new market, which is
easy through already existing companies. Cadbury has great opportunities in society which is becoming more
and more health conscious.

Threats: "A threat is a challenge posed by an unfavorable trend or development that would lead in the absence
of defensive marketing action, to lower the sales or profit of the organization". Their weakness of not having
enough raw material production units.(which cause them to depend on other producers) and their dependency
on other producers can threaten to reduce the quality of products they offer. The contamination of food
products is a major threat to Cadbury in the market.

Intense competition in its market segments also possesses a major challenge to Cadbury as its competitors are
also trying to increase their product range which might make inroads into Nestlé’s profit. The consumers
frequently tend to change their preference of brands, so changes in consumer trends is a threat to Cadbury
company.

12.0

Particulars Actions Resources Critical outcomes Timelines.

Cadbury objective Cadbury started a Research & Cadbury Dairy milk 2020
is to be the science based development. is the single
recognized leader nutritional Team of largest chocolate
in Nutrition, research & internationally brand in Japan.
Health & wellness expertise renowned In the U.K., its
and the industry programme nutritional country of origin it
reference for “branded active scientists. sells around three
financial benefits” (BABs) million units each
performance. with a motive to day.
 provide or add
specific health
benefits to an
existing product.
“Nutimovil”
program of mobile
exhibition van to
spread knowledge
& guidance to
mothers.
And investing CHF
$1.5 billion on
R&D.

Cadbury works
Anti-corruption- internally & CARE Program
Business should externally to 2020
work against safeguard anti- And Cadbury
corruption in all corruption of any online training
forms, including form through its program.
extortion and CARE program.
bribery. Cadbury after
2010 has
developed an
online training
program to help
employees avoid
inappropriate
behavior or
harassment of any
kind. Zero percent
harmful waste
Environmental First to start clean going into landfills. 2020
Sustainability: development Helps in the
Cadbury should mechanism which Research and conservation of
always assess the is a part of Kyoto development. resources,
environmental protocol an Qualified and environmentally
impact of its value agreement to Capable scientists. friendly products
chains including control co2 Well-equipped and happy
procurement, emissions to and customers.
Logistics, control global High tech No harmful co2 or
manufacturing, warming? laboratories. toxic emissions
marketing & from the
consumer manufacturing
engagement in life units.
cycle approach. Saving money in
transportation of
Waste.

CONCLUSION

Cadbury company has developed his business in different countries of the world and helped countries’
economies to grow. Cadbury is very much environmentally conscious and is very much positive in its approach.
But still it can do better if it exploits lands of poor countries like South Africa where people are suffering from
starvation. If Cadbury can use or take advantage of the deserted lands and turn those to farms and employ the
local people from there, this would at least reduce their starvation problems and they can keep its value of
being a people's company which cares of people.

Cadbury should take extra precautions and should avoid its actions that are bound to fail. It should appoint a
good management team that takes extra care at every step in its plans like in the case of oil practices for
cosmetics which might result in a leakage or useless expenditure for the company which can be used for the
benefit of the world or for his employees.

Cadbury should invest on research and development more so as to come up with new products. Although it had
a long list of healthy products like Nutrencollage, Cadbury Milo, Cadbury Modulen, Phloe Bowel health capsules,
Resource plus, Cadbury fitness, Cadbury Toll house, Cadbury condensed milk, Cadbury breakfast essentials,
Sustagen sport. While leaving Dairy milk the other famous chocolate bars are like Milky bar, Aero, Crunch,
Smarties, Milo bar, Pixie Caramel, Role, Chokito etc. Although it started to serve the infants in need for nutrition.
It should enhance its products with more vitamins and with extra calcium. And other important vitamins for
total growth and development of kids. It should joint hands with qualified good companies for a better future of
the world and for the wellbeing of the company.