Cadbury plc project
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    Cadbury plc project Cadbury plc project Document Transcript

    • aCadbury PROJECTMarketingCadburyCadbury Dairy Milk ChocolateSubmitted By: Mirza Bilal BaigSubmitted To: Sir Hanif ShahzadDepartment: Management SciencesNational University of Modern LanguagesSector H/9 Islamabad.AcknowledgmentFirst of all I acknowledge the blessing of my Allah in helping me in my efforts; I would like to thank all ofother helping hands who were with me to make this this project possible.
    • I am also thankful to my senior friend Waseem Cheema MBA 4th who helps me to complete this projectin a good manner and within the time period.Mr. Shahzad who recently completed his MBA from NUML also help me to understand the pattern ofthis project.iExecutive SummaryThe project which I choose is on Cadbury Company which made Confectionery items and different types of chocolate products.The product which I choose is Cadbury DairyMilk Chocolate. Cadbury is a Multinational Company and its business is worldwide.This project covers the following topics:The introduction and the history of the company, Strategic planning of this company like Vision, missionstatement and the customer driven marketing strategies of that company like ( market segmentation,targeting and positioning).The project also covers the Four P’s of marketing (Product, Price, Place and Promotional strategies).It also covers about the Positioning strategy like how company sets its positive position and in the mindsof consumers. It also tells about logo, Slogans and about the target market of this product.Micro and Macro Environment of this company also discussed.At the last my conclusion about the whole marketing process of that company’s productI also give the reference of those websites which provides me relevant material. And therecommendations about this project.iiTable of ContentsChapter No Page NoAcknowledgement iExecutive Summary iiO1 Chapter# 01 1.0Introduction of Company Cadbury 1.1Designing a Customer Driven Marketing Strategy 1.2Capturing Value from Customers 1.302 CHAPTER # 02 2.0Vision and Mission Statement of Cadbury’s 2.1Designing the Business Portfolio of Cadbury 2.2BCG _ Matrix 2.3Customer Driven marketing Strategy of Cadbury Dairy milk 2.4Behavioral Segmentation of Cadbury dairy Milk 2.5Target market of Cadbury dairy milk 2.6Marketing Mix Strategy of Cadbury Dairy Milk Chocolate 2.7
    • 4 P’s of marketing 2.8Positioning strategy of Cadbury dairy milk & logo 2.9 03 Chapter # 03 3.0Level of Market Segmentation of Cadbury dairy milk 3.1Market environment of Cadbury dairy milk 3.2Macro Environment & conclusion 3.3Recommendations and References 3.4Chapter# 01Introduction of Company CadburyCadbury is a multinational company and the Cadbury dairy milk is a brand of chocolate which is madeby Cadbury. Cadbury made different types of chocolates and other products which is sold in severalcountries around the world. It first sold its products in United States in 1905.HistoryCadbury’s started as a one man business, opened in 1984 by a Quaker, John Cadbury, which becomesnowadays Cadbury Limited, and now becomes the world’s largest chocolate producers. In 1831 thebusiness had changed into grocery shop and John Cadbury became the manufacturer of the company.Cadbury Dairy Milk is a worldwide brand of chocolate of United Kingdom Which made its differenttypes of products and promote in different countries like Pakistan, India, Italy, Canada, France almostall countries.Product VarietiesCadbury made different types of chocolates and other products like:Chocolates:Cadbury dairy milk chocolate, Kit Kat, Five Star, Éclairs, Fruit & Nut, Cadbury lite, Cadbury Crackleetc…Snacks;Cadbury byesBeverages:Bourneville, Cadbury delightCandy:Cadbury hall1Selection of productFrom above of these products I select the Cadbury dairy Milk chocolate which is the one of product ofCadbury. In 2003 Cadbury’s made Dairy milk into super brand, bringing a number of different productsunder the name dairy milk branding for example dairy milk with bubbles.Production of Cadbury Dairy Milk chocolateMany of the newer Dairy Milk Varieties are now manufactured in the Republic of Ireland, France andPoland. Dairy milk Chocolate itself is also manufactured in France and these products are sold in the
    • U.K and from U.K to all other countries.Understand the Market place and Customer NeedsCadbury dairy milk chocolate understands the new market which is targeted. First it selects the targetedcustomers like Kids, Youths and then made products according to their needs.Cadbury Dairy Milk Chocolate made by company which offers to specific market, specific customers andalso to all type of customers.Marketplace also selected by Cadbury Dairy Milk according to customer needs and requirements.Designing a Customer Driven Marketing StrategyCadbury Dairy Milk Chocolate Design such a strategy which is customer driven. I mean it target thosemarkets which is profitable for the company. It includes production, product, selling and marketingconcept.Production concept;Cadbury Dairy Milk Chocolate is a product which is favorable by customers and affordable by customersand Cadbury also focused to improve the quality according to customers’ needs and requirements. Andalso improve the production and distribution like improve the transportation chain.Product concept;Consumers favor the Cadbury Dairy Milk Chocolate because it offers the quality, distinctive features,Affordable price and Cadbury company devotes its full time to satisfy the new consumers and retain theoldest consumers.2Selling concept;Cadbury D.M.C has good promotional and selling concepts. It promotes through electronic media and byadvertisement channels.Marketing concept;Cadbury D.M.C achieved its organizational goals and objectives because they know customersrequirements like if they want to target school children it made sashes and made small packing whichChilds easily afford. And also targets the specific market like niche markets.Capturing Value from CustomersIt means how company build strong relationships with customers and provides his customers to betterproducts as compare to price which he pays against the product. Cadbury D.M.C provides all the abovevalues and it also explains with the help of the following points.Future Sales;Company also focuses to increase its future sales by different ways like Cadbury dairy milk chocolatehave more consumers and they also provide low price and more valuable and highly affordable products.Market share;Market share means Cadbury dairy milk have high market share and it is becoming higher because itgives more valuable products to consumers.
    • Market profit;If Cadbury wants to earn more profit as compare to its competitors then it have to maintain strongrelationships with its competitors by giving less price, good packing and also to make them loyalcustomers.Customer Loyalty;It means C.D.M have loyal customers because it provides superior customer value as compare to itscompetitors means customers get more benefits as compare to its cost. Especially we can say kids andyouth are a loyal customers of Cadbury dairy milk chocolate, because they feel they feel they get morebenefits which Cadbury’s competitors cannot provided.3CHAPTER # 022Vision and Mission Statement of Cadbury’sFirst of all before discussing any topic we have to understand the vision and mission statement ofCadbury’s which tells about the whole goals and objectives of the company and it helps us to understandthe whole .Topic easily and effectively.Vision Statement;Cadbury’s set out a vision to achieve “a Cadbury in every pocket” dream by increasing the penetration ofchocolates.Mission Statement;We can easily understand the mission statement by following points like;Cadbury’s mean qualityThis is our promiseOur reputation is build upon qualityOur commitment to continuous improvementIt will ensure that our promise is deliveredCharacteristic of this mission statement;We can say that this mission statement is realistic because if we see the quality and day to dayimprovements easily show that Cadbury’s have real mission statement.Setting company’s Objectives and GoalsCadbury successfully turned its mission statement into its overall objectives and goals. Cadbury saysCadbury is the name of quality and the Cadbury dairy milk chocolate and also different products is thebiggest example of it.And it says our commitment to continuous improvement and the demand and customer’s satisfactionshows that its products successfully fulfill the needs wants and demands by continuous improvement inthe features of products.
    • In short we can say that company turned its mission statement into practical form and set its overallobjectives and goals as Cadbury do and now a day become a market leader.1Designing the Business Portfolio of CadburyNow I discuss the business portfolio, analysis of business portfolio and also see that the relevant marketshare of Cadbury dairy milk chocolate according to growth share matrix.I also discuss that Cadbury dairy milk chocolate is on growth stage or it is a cash cow and if it is onquestion mark and if it is on dog stage then what is the strategy of Cadbury applies to stable its marketshare.Business Portfolio of CadburyCadbury made different products and sell into different countries. It means the collection of businessesand products that make up the company. Many of the newer Dairy milk varieties manufactured in theIreland, Poland, France, and Cadbury dairy milk itself is also manufactured in France different types ofchocolates and candies that make up the company Cadbury.Analysis of PortfolioIt means Cadbury analysis that which product is need to be more investment and which need to less andwhich product should have to phase out from the market due to less demand.For example in 2003 Cadbury’s made dairy milk chocolate into super brand, and introduce a lot ofproducts under the dairy milk brand and wispa bars were phased out from market and replaced by dairymilk with bubbles.BCG _ MatrixStar?Cash cowDogNow I see that my product is on what stage mean Cadbury Dairy milk chocolate is Star, Cash Cow,? OrDog. And what is the position of market share of Cadbury dairy milk chocolate.2Star;It is high growth, high market share and high profit businesses and products.Cash Cow;It is low growth, high market share and more revenue generating products and it has high profit ascompare to star. It need less investment to hold their market share because it has already wellestablished SBU’s. It produces and made investment in other products because it is well stand itself and
    • made other products from their revenue.?;Question marks are low market share, low profit and high growth in markets and they need heavyinvestment to hold their market share.Dog;Dogs are low growth, low market share, and low profit earning products or we can say that it is thosethat almost phased out from market.Cadbury Dairy Milk chocolate is on what stage?Off course I can say that my product is a cash cow because it has low growth, high market share, highrevenue generating as compare to other products of Cadbury.The revenue which generates from D.M.C is used to promote other products of Cadbury like dairy milkwith bubbles.As of 2004, there are ten varieties of dairy milk produced in the U.K with the revenue from dairy milkchocolate. Because it is already well established product which needs less investment but more profitearning.It can also understand from the following points.· Low growth because it is well established SBU· High market share· High profit· Responsible to make other products· Because it is more cash generating· It has more potential costumers than others3Customer Driven marketing Strategy of Cadbury Dairy milkIn customer Driven marketing strategy we discuss the Cadbury dairy milk market segmentation, targetmarketing and market positioning strategies.Market Segmentation;It means divide the market into group of potential customers on the basis of occupation as well as theage group of the in the market.It means all marketing process depends on marketing segmentation and it is the foundation of all themarketing processes.Cadbury dairy milk also divides the market into different group of customers. We can understand it byfollowing discussion.Identify Market Segment of Cadbury Dairy milkTargeting a group of customers who share a similar set of needs and wants which Segmenting theconsumer markets. There are basically four types of segmentation which I discuss the following.
    • Geographical SegmentationBehavioral SegmentationGeographical Segmentation;It can be understand from the following points.Age and life cycle;Under this type of segmentation the buyers who mostly prefer the Cadbury dairy milk comes under theage group of 4 to 50 years.Gender;For purchasing Cadbury dairy milk gender does not matter. Cadbury dairy milk are for all type ofpersons whether male or female.Income;The price of Cadbury dairy milk is reasonable and affordable, so a person does not need to much thinkbefore purchasing. They can easily buy it any time when they want to buy. The income of a person doesnot play an important role in4Generation;Cadbury dairy milk will not be much affected by the generation differences. All type of people like topurchase the Cadbury dairy milk when they want to buy it.Behavioral Segmentation of Cadbury dairy Milk;We can understand it by the following pointsDecision roles;The decision role is played by the children and youngsters. They play an important role in taking thedecision of when to buy the Cadbury dairy milk.Occasion;For purchasing the Cadbury dairy milk no specific occasion are required. People can easily purchase iton regular bases also if they needed.Benefits;Cadbury dairy milk is easily available anywhere when we need it. The supply chain of Cadbury dairy milkis very good also it a quality conscious. So there are two main types of benefits given by Cadbury dairymilk are supply chain and quality.User status;There are mainly the regular users found in the user status of Cadbury dairy milk.User rate;The user rate is heavy in the behavioral segmentation of Cadbury dairy milk.Loyalty status;There is mainly the absolute loyalty status.Attitude;
    • There is an enthusiastic type of attitude of buyers.Segmenting for Business Markets;It can be easily understand from the following points.DemographicOperating variable5Purchasing approachesSituational factorsPersonal characteristicsModels of sequential segmentations;It can be easily defined and understand from the following points.Stage of decisionsFirst time prospectsSophisticatesOrientationPrice orientedTarget market of Cadbury dairy milk;The main target of it mainly is children and youths that are in the segments of occupation and in the agegroup.Cadbury dairy milk commonly targets all types of customers whether they are young and old, male orfemale.And now the target markets which is selected and targeted by it is according to age, gender, occupationand income of potential customers.How can we choose the target markets from the different segments?The answer is that a acronym DAMP is used to gauge the viability of target markets.Discemible; How a segment can be differentiated from other segments.Accessible; How a segment can be accessed via marketing communications produced by a firm.Measurable; can a sufficient return on investment be attained from a segment’s servicing.Profitable; can a sufficient return on investment be attained from a segments servicing.6Market positioning of Cadbury dairy milk;Cadbury dairy milk made position of it product chocolate not only in the minds of consumers but also inthe market.
    • It means what is the view of consumers or concept about of your product like trough adds children’s andyoungsters view and action after seeing the add of your product.To make position in the minds of customers company used different promotional techniques throughBy giving add through any superstarElectronic mediaPress mediaSign boardsBy giving discountBy giving funds to welfare organizationsMarketing Mix Strategy of Cadbury Dairy Milk ChocolateIt is also known as integrated marketing or 4P’s of marketing. We can understand the marketing mixstrategy of Cadbury dairy milk by discussing the following four P’s of marketing.Now I discuss the Product, Price, place and promotional strategy of Cadbury dairy milk chocolate.Product;Cadbury dairy milk is made from real chocolate. Its ingredients include cocoa, butter and there is a glassand half full cream dairy milk in every 200 grams in every dairy milk chocolate. Cadbury buys 65 millionliter of fresh milk each year to make Cadbury dairy milk chocolate.Strategy;The strategy of Cadbury dairy milk is to continuous improvement in the quality and features of product.It is the mission statement of Cadbury to make quality chocolate which have competitive advantage fromthe competitor’s products and it enhances the goodwill of the company.7Price;It is an important element of the marketing mix. The price for a chocolate bar can determine whether aconsumer will buy it or not it can be determined easily and sales volume tells about that price isreasonable or not.If competitors charge the low price than the Cadbury chocolate, it is automatically affect the company’sprofit.Strategy;Cadbury dairy milk applies the reasonable and affordable policy to charge the price from its competitors.Because it is the vision of Cadbury that Cadbury is in every pocket. It charges the fewer price from itscompetitors and provides better quality also. We can say it is used penetration strategy because have lowprices as compare to its competitors and have long life cycle of the product. Cadbury wants to survive inthe market for long run.Place;Cadbury dairy milk is produced at the chocolate factory in Bourneville in Birmingham. After thechocolate is produced and goes through the process of all quality checks. It is transported to the staffrooms and then Cadbury sells it product to shops.Strategy;The placement strategy of Cadbury dairy milk is to sell the chocolate at every corner shop, super stores,bakers shop, petrol pumps and even medical stores also included in it. It is the mission statement of
    • Cadbury to provide chocolate to all type and class of customers.Promotion;The purpose of promotion is to communicate directly with potential and actual consumers. In order toencourage them to purchase dairy milk chocolate the Cadbury used different promotional tactics.Strategy;Cadbury dairy milk is used press and electronic media to motivate the potential and inspires the actualcustomers to purchase the product of Cadbury.Promotion is an important element of marketing mix because if it is not well planned then company isunable to increase it sales.The company gives discounts on different occasions.To inspire the Childs to purchase the Cadbury chocolate the company made such type of ads. Toencourage the youth class the company hires the superstars for advertisement of the products whichinspires the all type of consumers who want to eat sweet.8Positioning strategy of Cadbury dairy milkPositioning is all about that what is the customer concept or image of your product in the minds of thepeople who likely to purchase the product.It also concerns about what is the position of your product in the market.We can say every aged person wants to buy Cadbury dairy milk chocolate and they also don’t know whythey are purchasing the Cadbury dairy milk even they don’t want to purchase.Slogan of Cadbury dairy milkSlogans also play an important role to position a positive concept in the minds of customers like:Cadbury dairy milk is a brand of chocolate bar made by the Cadbury plc unit of ….with slogans such as:A glass and a half of full creamCadbury is the name of quality it is our promiseLogo of CadburyBrand name of product9Chapter # 033Level of Market Segmentation of Cadbury dairy milkNow we have to see which type or level of market segmentation of Cadbury dairy milk has. Of course
    • mass marketing.Mass marketing;It means offer the same product to all customers by ignoring market segment differences. Mass meanshuge group of buyers. It means there are a large number of customers. It is also called macro marketing.Cadbury offers one type of Cadbury dairy milk chocolate to all customers and no difference of marketsegmentation. Product, price, place and promotional strategies are also same.Cadbury dairy milk has competitive advantageThe following are the points which give the competitive advantage over competitors.Important;Cadbury dairy milk chocolate is according to customer’s needs wants and requirements.Distinctive;Different features as compare to competitor’s products mean Cadbury have good quality, more featureslike unique taste, design, logo and other attributes.Superior;Cadbury dairy milk is superior in quality, continuous improvements and have different features.Communicable;Cadbury dairy milk is easy to understand about the quality and features.Preamtive;Its logo, quality, taste and other features are not copied by other companies.Affordable;Its price is reasonable and affordable by all customers.Profitable;It depends on the sales volume and low cost of the company products.1Market environment of Cadbury dairy milkThere are two types of market environment of Cadbury dairy milk.Micro EnvironmentMacro EnvironmentMicro Environment;It means the internal environment of the company and it is also called small environmental forces whichdirectly or indirectly affected the company.It has some forces which are discussed belowCompany;Cadbury dairy milk is a company which manufactures the products like chocolate. There are differentdepartments in the company who collectively responsible to make the products.Suppliers;
    • Suppliers are those persons who provide the raw material to the company like cocoa and othersupporting raw material there are also external suppliers who provide the finished goods to and createlink between company and customers.Intermediaries;After making the finished products they create a link between company and suppliers, they includewholesalers, retailers and middlemen.Competitors;Cadbury have many competitors who directly challenge their products and affect their business.Customers;Are those people who buy the products of the company? Those people who purchase the Cadbury dairymilk chocolate are the customers of the Cadbury.Public;It means government who directly affect the company business by giving different facilities like rebatesand funds because company get benefits from it.2Macro environmentIt means the overall and general environment of the company. The forces outside the company calledmacro environment.Demographic Environment;Divide the market on the basis of age, gender, locality, occupation and income. Cadbury dairy milktargets all type of customers on the basis on these because these are not the hurdles on the way of thecompany.Economic Environment;Cadbury dairy milk understands the economic situation of the country in which it goes to start thebusiness. I mean inflation rate also a matter.Natural environment;It also plays an important role in the success of organization. The availability of natural resources alsomatters.Technological environment;Availability of new technology also plays an important role in the success of any organization. It is thesymbol of success that country has all new technology.Political Environment;Political scenario plays an important role in the success of any organization. Because if new govt. changeall the policies of previous govt. then company may suffer heavy losses. Cadbury dairy milk understandand analyze the all the conditions.Cultural environment;
    • The culture plays an important role because if product is not according to specific culture then companymay suffer heavy loss.ConclusionI can say that Cadbury is a multinational company and its product Cadbury dairy milk chocolate is a cashcow for the company. It is well established SBU. Cadbury dairy milk is a market leader. More profitableas compare to other products of the Cadbury.3Recommendations:Launch the product into further countriesPrice also need to become more affordableImprove the quality of sashesGlobal growthNeed to improve the marketing mix strategyMarket penetration process need to be effectiveSuper stars play a key role by advertisementPromotional strategy need to be revisedReferences:www.oppapers.com/essay/dairy_milk_introduction_analysis/88036http://oppapers.com/essays/cadbury_4ps/49/46http://www.scribd.com/doc/14436196/cadbury_NEW_PRODUCT_DEVELOPMENT