1. What is primary research?
2. Identify 2 ways you can gather primary research other than the trip.
This lesson you need to write up your notes from the Cadburys trip as part of your primary
research. You need to think about how you are going to use this information to answer your question
You might want to conduct further primary research using methods you identified in question 2
Draft deadline Friday 22nd June
Cadbury and the Confectionery Market
The confectionery market in the UK is worth £4.3billion per year. Cadbury Trebor Bassett have 32% and are
market leaders, Masterfoods have 20% (examples include Mars, Snickers, Bounty and Twix) and Nestle 15% (examples
include Kit Kat, Quality Street, Smarties and Yorkie)
There are 160 Cadbury Trebor Bassett brands
Cadburys Dairy milk have 14 varieties worth £4mn
17 sites in the UK
Cadburys Trebor Bassett is the most profitable part of its parent company Cadbury’s Schweppes. This was after
Cadburys and Trebor Basset merged in 2000.
As well as Cadbury Dairy Milk (CDM) it also has products such as Trebor Extra Strong Mints and Bassett’s liquorice
This is a market which is changing constantly as tastes and lifestyles change, therefore marketing has to be
flexible. E.g. Nestle have used Kit Kat to sponsor Big Brother and have doubled sales! Cadbury have responded to
the growth in organic products to purchase Green & Black.
Problems facing Cadburys – in a few months from now (June 2008) Cadburys will not longer have the largest market
share. This is because Masterfoods has bought Wrigley for $23mn making them the largest firm.
Top 10 Chocolate Brands (according to One Poll Research Company 30/05/2007)
1. Cadburys Dairy Milk (CDM) 6. Kit Kat
2. Curly Wurly 7. Flake
3. Mars 8. Toblerone
4. Galaxy 9. Crunchie
5. Snickers 10. CDM with Caramel
Cadbury are market orientated - they use research to establish what people want. They try to identify,
anticipate, and satisfy people's needs through their market research.
They know their market: 95% of people eat chocolate. They look for a market gap because that will give them the
greatest chance of success. It should increase their effectiveness, profitability, and help them identify new
market segments. They are constantly looking for new ways of promoting their products e.g. via 3G mobile phones.
This is instead of being a product orientated company where a business will design a product then find a
market for it.
Cadburys want to understand the following areas in their research
External factors trends
Research allows Cadburys Trebor Bassett to serve the needs of customers better, compete more
effectively and plan more sensibly.
They want to look at factors that affect sales. For example in hot weather sales of chocolate falls so
Cadburys have developed ice cream e.g. Flake ice cream.
Organic food has become more popular over time so Cadburys have bought Green and Blacks in 2005, the
organic chocolate company. They have also bought Adams Confectionery, Bubilicious and Halls Soothers.
The confectionary market is becoming stagnant – sales are no longer increasing and are expected to fall.
Cadburys are trying to develop alternatives. It is in decline in 2008 as a result of healthy eating.
Dark Chocolate – Bournville Chocolate is being promoted. It has lower sugar and lower calories.
Highlights chocolate and drinking chocolate – This product has no added sugar for health conscious
Trident – this product was an established brand in USA. Cadburys spotted sales in the gum market were
falling so decided to introduce Trident in the UK. This was a very risky strategy because Wrigley’s hold
98% of the market. Within 6 weeks sales in gum increased and Trident make up 14% of the market taking
sales from Wrigley. It has now settled at 11% for Trident.
They carry out primary research using a number of different methods:
Questionnaires e.g. Project Jigsaw
Market Maps - where the market is divided up into Immediate Eats, homestock, gifts, seasonal. They look at
their sales figures, relate them to the market map, compare them with rivals and look for market gaps.
Immediate Eat Homestock
accounts for 43% of confectionary market accounts for 31% of the market worth £1.7bn
worth £2.3bn Hot chocolate treat size bars
49g CDM Biscuits cooking chocolate
family bars of chocolate
Gifts birthdays, thank you Seasonal
17% of the market worth £925mn
Heroes Christmas selection boxes
Milk tray Easter they have Easter eggs
They also use focus groups by asking their target audience for their opinions
Sampling allows customers to test products and give views
They can buy info from specialist companies, from the trade press, national press, advertising, and internet.
They also speak to the people who sell their products. For example Sainsbury’s.
They then supplement this research with more sophisticated approaches like the Marketing Mood Board. This
allows them to aim specifically at a market segment, but it can go wrong because it is so narrow e.g. 24-7 mints
Price Cadbury use Competitive Pricing. They need to cover costs of production and make a small profit.
E.g. costs 12p to make a chocolate bar they sell to Tescos for 15p making 3p profit. Tescos sell the product for
about 40p. So most of the profits go to Tescos.
Most profits are made through bulk sales.
They also want to ensure customers get the concept of value by using promotional pricing. E.g. Woolworth have
Cadbury’s “dump bins” where you can get 4 bars for a 99p
Cadburys sell premium products e.g. Green & Blacks can sell an 80g bar for nearly £2 where as the same size
CDM bar is 80p.
Place - they operate in a global market, selling through retail outlets, vending machines the internet, garages,
and three of their own shops.
WYSISYS - what you see is what you sell. They place emphasis on where their products
are placed in the stores e.g. gondola ends (hot spots of a supermarket), entrances and
kiosks. The tills are no longer used due to pressure groups saying it causes too much
pressure on children to want to buy.
Cadburys offer incentives to distribution outlets like Tesco to allow them to se gondola end instead of the
competitors. This could include giving free stock (to allow Tesco to make more profit) or discounts on future
stock. By having products on gondola ends profits have increased by 80%.
Cadburys need to use presence marketing because research showed that only 1/3 of customers went down the
confectionary aisle. So confectionary needs to be elsewhere to make sales! E.g. Cadbury’s world.
From September 2007 no confectionery was allowed to be sold in school vending machines as a result of Jamie
Oliver’s healthy eating campaign.
Promotion - is done through sponsorship e.g. Coronation Street, sampling, direct marketing, e.g. Dairy Milk
centenary last year, public relations e.g. Cadbury World, Education Office, Family Branding as well as packaging,
the internet and text ins.
The Purple patch focus group in 2003 helped to create a masterbrand. This included
making all Cadburys products associated with CDM. All packaging used the purple
colours associated with Cadburys. This cost £6.2 million. It is known as purple patch
because when you go into a shop your eye is drawn to the sea of purple on the shelves.
£7mn was spent on their campaign 2007
Businesses do need to be careful when using TV adverts. For example Kit Kat was
promoted with Big Brother. The Golden Ticket promotion caused concerns because it was said that the
competition was fixed. Tickets were sole on E-bay and the winner spent £6000 on buying tickets.
The most popular media is
Yorkie is a very male orientated product. Therefore Cadburys advertise on male styled programmes for
example on the Dave channel e.g. Top Gear and before or after football games. It is aimed at young men.
This product also had a limited edition pink packaging to aim at females.
Flake is a female orientated product so is advertised on soaps such as desperate housewives or coronation
Rolo is aimed a young “sassy” women. Therefore one of the adverts had Sarah Cox (radio 1 DJ) doing a
It is noticed that customers stick to brands that they know.
Young people tend to like humour. This is how the gorilla advert came about. The gorilla advert was
advertised before and after the rugby world cup. This advert cost £6mn
There are three phases to the gorilla campaign.
1. The gorilla advert this was launched in 2007 at the Big Brother launch and lasted for 4months.
2. The Trucks advert Launched in May 2008
3 TBC this is top secret and due in November
The advertising agency Fallon was set to create the adverts. Their brief was to make it funny, use the
purple branding and the glass & ½ logo. It cost £6m and sales increased by 9% in the 4 months of the
advert. This amounts to £38m.
They try to advertise during major events like the rugby world cup and the big brother final. The last
episode of friends advert slots were sold for £1m each due to the number of potential customers
Adverts TV, newspapers, billboards, buses
Promotions Text & win, 25% free
PR generated by adverts
Direct project mapping and sending mail to customers
Sponsorship No longer sponsor coronation street. It was costing £10m a year but when research was
done it showed customers no longer knew what Cadbury’s stood for.
Sampling Flake mobile
Product - they use extension strategies e.g. new creme egg bar; brand rejuvenation through bringing the product
up to date e.g. Trebor mints have changes their packaging to be more up to date and aim at a younger audience
instead of O.A.Ps. Celebrity endorsements and new advertisements are created. This is because it is more
expensive to withdraw the product.
Brand loyalty is encouraged through use of Cadbury name and lettering, use of colour (yellow/purple) and product
equities e.g. family/mother branding
Things do go wrong e.g. Fuse Bar - They had used focus groups to get opinions with an expensive launch, promotion,
and manufacturing investment have all produced disappointing sales figures. This product is about to be withdrawn.
24-7 mints and gum were aimed at the clubbing market. This product failed because there was too much
competition. The product was too big to fit into pockets and bags. The price at 99p was too high in comparison to
competitors who were charging 40p.
Also Spira and Cadburys biscuits. Wispa left the shelves in 2003 to be replaced by CDM Bubbly. However
Wispa was brought back in 2007 and was a highly successful product.
There are 160 brands with 14 CDM varieties.
There is constant innovation using market research. The products are customer orientated (rather than
The USP is the glass & ½ logo