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Marketing Essentials For Consumer Behaviour - Cadbury

University: David Game College

  • Unit No: 2
  • Level: Undergraduate/College
  • Pages: 18 / Words 4544
  • Paper Type: Assignment
  • Course Code: 105MKT
  • Downloads: 497
Question :

This assessment will cover the following questions:

  • Evaluate the role of marketing and how it interrelates with other functional units of .  
  • Compare ways in which organisations use elements of the marketing mix (7Ps) to achieve overall business objectives in Cadbury.
  • Create and evaluate a basic marketing plan of Cadbury.
Answer :
Organization Selected : Cadbury


Marketing play a circuital role in increase the sale and growth of organisation. Main objective of marketing efforts now change from selling and promotion, now it focuses on customer satisfaction. This study describes the marketing effort, process and strategies of Cadbury. Study also shows SMART objective set by Cadbury which contribute to its huge success.


1. Role of marketing as function and department

Marketing department is popular for making its sales and promotion effort only, but the role and function of marketing department has been changed with time. Now marketing department not only deals with selling the product, it also has to do some proactive efforts like market research, customer need and preference recognisance. Cadburies marketing department get success in building emotional attachment with its customer by its marketing efforts which gives it higher brand loyalty and customer retention.( Schindehutte. and Kuratko, 2015)

  • Information provider-

Cadburys marketing department provide information to its production department about customer's quality, taste and health preference in chocolate and innovation in packaging so that it can give higher satisfaction and competitor advantage to organisation. Finance department arrange and allot the budget on the basis of marketing department report.

  • Researcher-

in researcher role Cadbury’s marketing team seek to get customer's preference. Cadbury conduct online survey, direct communication with customers to know about their expectations. Marketing team maintain and analyse the sale data for each product in charts and statistical table. These data further used by higher authority in making decision regarding product and service.( Kono, 2015)

  • Acquire marketing promotion material-

marketing department is responsible to make Brochures for advertisement for instance Cadbury's marketing team now use E- brochure for their new launch product. Marketing department set the sales target , receive customer feedback and manage website and newsletters. Marketing team insure that advertisement and promotional video get success in grab the attention of customer.

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2. Marketing department Structure of Cadbury 

Marketing department has been changed with time. Marketing department is responsible to generate cash inflow and increase the profitability of Cadbury by its marketing efforts. Cadbury's marketing department help company to achievement the brand image it has today.

  • Chief marketing manager-

Chief marketing officer comes direct under chief executive offer of Cadbury. CMO is responsible to make strategic marketing plan. He decides the product pricing according to customer segmentation like low price dairy milk chocolate for student and high price Bourneville luxury for chocolate lovers. He insures the supply of Cadbury product in every county with making contact with manufacturer, whole seller and super markets . CMO is responsibilities to implement innovative marketing idea to attach the customer like discount price strategy , Internet marketing effort, and other promotional strategy. He must have deep customer behaviour understanding and team management skill because he has to give motivation to sale manager for achieve the target. Ultimate aim of CMO is to increase sale for Cadbury.( Olson, Slater. and Hult, 2005)

  • Marketing manager-

 Marketing manager is responsible to implement the marketing strategy decide by CMO. Marketing manager of Cadbury make weekly and monthly target for different product offered by company, he manages the sale team by assign them duties and responsibilities. Any customer complaint regarding product and service is directly entertained by marketing manager. Marketing manager give report to customer behaviour and demand of the customer for instance diversification decision in candy and health drink are suggested by marketing manager after receive the information by his sale team about competitor policy.

  • Social media manager-

social media manager of Cadbury responsible to promotion though Internet social media. For instance if a customer search for Cadbury bourvill once, he will get frequent pop for all products. Cadbury social media manager reads the review given by customer and give answer to them. He uses his understanding for advertising on internet for instance candies and chocolate frequently display on education websites and high price chocolate gift pack are advertise on online shopping sites.( Chhabra. and Kiran, 2015)

3. Marketing process and importance of marketing environment

Marketing process

Marketing process- marketing process comprises efforts to achieve ultimate goal of any organisation which is “increase the customer satisfaction”. In marketing process Cadbury try to identify the opportunity and accordingly it adopt marketing strategy, also take corrective action for marketing plan. Marketing process of Cadbury is given below-

  • Cadbury’s is committed to establish itself as best confectionery company in the work. It uses vision into action plan (VIA) which help Cadbury to implement it vision into reality by action. These actions comprises making more innovations efforts, use Cadbury’s market position and strength for further growth..
  • Situational analysis conduct by Cadbury to know external and internal factor that can affect its product so that it make marketing plan accordingly. Cadbury use PESTLE analysis for external environment and porter’s five force for competition audit. For instance Cadbury chocolate and candy affect by health awareness which force Cadbury to launch sugar free products, product packaging become more environmental friendly. Cadbury has high threat from new entrance, rivalry and threat of substitute.( and Kiran, 2015)
  • Cadbury’s target audience is children, youngsters and medium income level group. Cadbury also research about taste preference and eating habit of customer for instance Cadbury
  • offer chocolate with egg cream and eggless cream as per customer choice. psychographic segment give idea Cadbury about customer impact of lifestyle, attitude in selection of confectionery products.
  • Cadbury’s marketing mix comprises with traditional 7 p’s. Cadbury use no artificial colour in its product, and use its original rich creamy texture for audience. it use diferreciate pricing policy for different income level group. Cadbury places its product according to product image among customer, promotion strategies are chooses based upon target customer education and access to media like internet, TV, radio etc.(, 2018)
  • Cadbury ‘s has some issue in implementation of marketing plan like lack of information about product ingredients provide to customer, economic condition of UK, opposition from health awareness groups etc.
  • Cadbury use McKenzie’s 7S frame to measure effectiveness of its marketing plan.

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4. Marketing function influence and interrelation with other departments.

Marketing function of Cadbury include product designing, opt suitable distribution channel for its confectionery products, customer behaviour research, demand forecast for different product like candy and snakes for differ occasions and customer segment, selling and promotion activities, customer satisfaction efforts etc.

Marketing function gather information about demand of chocolate, candies on different season and festival which help production department to maintain its inventory accordingly. Production department makes value addition on the basis of customer preference research done by marketing team like sugar free candies, chocolate made of organic ingredients etc. Logistic and warehousing practices for different product also suggested by marketing team for instance

Finance department and marketing department both depend on each other for instance marketing team gives idea to finance department about expenses on marketing, demand and alteration in product so that budget allotment can be done efficiently. Finance department set standard in form of profitability ratio, return on expense made, maintain marketing reports, and result by which marketing department can evaluate its performance. Cadburys marketing department help finance department to set different price of the product based upon product brand image in market and income of customer for instance Cadbury use skimming pricing for high income level, cost plus pricing, positioning, demand based pricing. Finance department control and suggest expense on advertisement and promotion which help market team to do efficient use of its allotted budget. Finance department do cost analyse and feasibility analysis of the product. (Hempelmann. and Engelen, 2015)

Human resources department help Cadbury marketing function by giving training and development programme aligned with marketing function requirement for instance H.R hire personnel who have nice soft communication skill, market analysing skill and customer handling skill.HR department is responsible to value addition in human capital. Cadbury’s marketing function provide information to HR about job skill, experience, qualification and behavioural requirement while doing recruitment and selection which eventually help in less HR research for candidate skill requirement.


1. Background of Cadbury

Cadbury is well known brand in confectionery industry. It was established in 1824 by John Cadbury in England. At that area people was highly addicted of alcohol, john find chocolate drink as healthy substitute of alcohol. First factory was established in countryside village and named it bournville. First ever dairy product of Cadbury is Dairy Milk launched in 1905. Dairy Milk is become milestone in success of Cadbury and this product has same popularity till today as it has in the 1900's. Cadbury also faced the dark phase of world war second as government banned the supply of fresh milk. Company now do its business nearly 40 countries. Cadbury only offer chocolate to its customer but not it diversifies its business in healthy drink, organic sweets, biscuits and candies.

Cadbury's still have so much potential because it has old good and reputation. Cadbury is committed to quality, safety and customer satisfaction which can be seen in its product innovation and safety measure. Apart from image and goodwill Cadbury has strong financial condition so that it can make more diversification decision and it also able to adopt the latest technology. Company already has nice global presence and well established distribution channel. Stake holder like raw material supplier, financer, manufacture, customer has faith on brand so other business and organisation get easily ready merger and acquisition decision. (Schlegelmilch, 2016)

Organisation also known for best treatment for its employee. People want to attach their name with it so it has less possibility to face any human capital problem, even Cadbury has the best talent in its every department who continuously contributing in its success. This old brand is very must experience in knowing the customer need, where new establishments have money but they cannot beat Cadbury because of its unique taste of product. Generation are witnessed the growth of Cadbury so people now attach emotionally with brand name .this emotional bond help company to sustain its market with future generation as-well.

2.SWOT and PESTLE of Cadbury

SWOT is used by Cadbury to identify its internal strength and weakness so that it can use its strength like strong financial to avail new market opportunity and to manage its weakness as like.


Ø Strong brand image

Ø Global presence

Ø Sound financial position

Ø Brand loyalty

Ø Quick Adaptability of customer demand

Ø Manufacturing process effiency

Ø Excellent Advertisement practice


Ø Less product diversification

Ø No healthy ingredients in product

Ø Lack knowledge of international market

Ø Almost all product made of sugar and cream

Ø Short shelf life of product


Ø Growth opportunity in Asian market

Ø Merger and acquisition opportunity

Ø Low fat and sugar free product

Ø Product diversification like organic confectionery


Ø Sugar tax and fuel price can quickly affect product price

Ø Product substitute easily available

Ø Health awareness can decrease sale

Ø Strong competitors

PESTLE of Cadbury

  • Political factor-

UK currently faces major political change as BREXIT and immigration restriction affect skill employee appointment in company. change in regulation for tax, labour, environmental policy also affect the Cadburys whole function

  • Economical factor-

 High tax rate reduce the purchasing power of customer which can affect Cadbury’s high cost product like bournville. If interest rate increase than Cadbury would not be able to expand its business because of costly borrowing. Cadbury try to cut the marketing and promotion cost in inflationary phase of economy so that lower price can be offer to customer. Increase in value added tax, result in rise the product price and lower the profit margin.

  • Technological factor-

Technological changes force Cadbury to implement latest technology in its choloate production, packaging and marketing efforts. Earlier Cadbury use traditional in maintain customer relation but now it manage its customer relation with CRM and inventory and logistics management by RFID.

(Shabanova. and, 2015)

  • Social factor-

Obesity, life style disease and diabetes influence the product develop decision of Cadbury. Organic and sugar less chocolate are made because of these important social issue UK people are facing. Increase education and health awareness force Cadbury to launch health drink.

  • Legal factor –

Legal factors are defined as local, regional,national levels. The legal factors of company include the taxation, producer’s responsibility and incorporating rules. Change in rule regarding labour, food and safety act affect the raw material selection and process of chocolate making.

  • Environmental factor-

As per environmental factor the energy consumption of water and waste in packaging method of company. Cadbury now use eco friendly packaging for its product and recycling and wastage management includes in its CSR policy.

3. SMART Objective of Cadbury

Smart technique of goal setting provides guideline and structure for making efficient objective. S stand for specific, which mean objective must be crystal clear as what objective Cadbury want to achieve by its marketing plan. Cadbury always take care that marketing objective can be measureable in quality and quantity both. Cadbury check attainability of goals by cost analysis and time feasibility analysis. Relevancy shows that market objectives is reasonable and can be achievable with having adequate resources and equipment. Cadbury’s marketing goal has achievable time duration. There are so many marketing objectives set by Cadbury for instance spread awareness about new product, brand position, increase market share, increase sale, take competitor advantage , enhance customer satisfaction, forecast sales, provide information about ingredients to health conscious customers. Cadbury make its marketing objective to regulate profitability. For instance to increase income company has to enhance its promotion and advertisement. All the marketing objectives are aligned with ultimate business vision, mission and objectives. These objectives are tactical in nature and must meet the SMART criteria. (Schlegelmilch, 2016)

Cadbury recently starts advertisement to promote green and black’s organic Christmas chocolate basket, which is the best example of marketing objective of Cadbury, this basket launch to target health conscious people, by this Cadbury want to communicate health caring effort by company.

Following is the marketing goal of Cadbury to increase organic chocolate consumption in England because England faces more health issue like obesity, diabetes and lifestyle disease.

4. Market segmentation, targeting and positioning of Cad-bury

Cadbury divided its wide existing and potential customer into different segment. These segment are group of people may have something similarity like interest, demographic profile, age, behaviour etc. segmentation help cad bury to identify need and preference of customer, offer right product to right customer can increase customer retention and it also guides Cadbury its marketing mix programme according to suitability of particular segment.( Schlegelmilch, 2016)

  • Segmentation for dairy milk and Cadbury Bourneville

Segmentation Base.

 Cadbury Dairy milk

Cadbury Bourneville

Demographic segmentation

4 to 50 year age. Education level, gender specification not required, medium income level group.

20 to 40 year age, higher income level group, no education and gender requirement

Geographical segmental



Behavioural segment

Children use dairy milk regularly, Dairy milk has normal brand loyalty, and user rate is very high, ardent type of customer purchases it.

strong brand loyalty as it is favourite product of dark chocolate lover, occasionally buy by customer, it has medium uses

Socio economic segment

B2 and C, D, E1, and E2.

A1,A2 and B1

Psycho graphics

All type of person consume Diary milk for sensation satisfaction

Cadbury Bourneville is preferred by health conscious personality who prefer low sugar intake.

  • Targeting

Cadbury target all kind of customer for dairy milk its include young, old, male, female etc. Cadbury use DAMP to know survival of dairy among target costumer. Dairy milk is available in every size of shops. Company offer Bourneville to those who passionately love chocolate. Mainly Bourneville is available at supermarket and big shops because of its luxurious feature and comparably high price, this chocolate is preferred by high educated and income group level.

  • Positioning-

Cadbury promote Bourneville gift for achievement. For instance an individual prefer to consumer this chocolate when he has done something extraordinary. It shows that Bourneville is earned not purchased. Bourneville has appeal of high living customer product as whiskey and wine. Dairy milk is promoted as taste prefer in jolly and adventurous mood for having tasty fun break in engaged life by all children and young both.( Olson, Slater. and Hult, 2005)

5.Marketing strategy of Cadbury

Cadbury use different marketing strategies for different product after analysing the current position of product in market and organisation marketing objectives. Company use Ansoff's Matrix and Generic model which is given below.

Ansoff matrix- Ansoff matix helps Cadbury to opt marketing strategy according to product performance, market share and organisation's objective.

  • Market Penetration-

Cadbury choose market penetration for Dairy milk, perk and bourvita. it chooses perpetration strategies for these products because all these products has strong marketing share, company can easily increase it sale and marketing share with minimum effort. Penetration policy of company include give discount on Dairy milk family pack, promote bourvita with some value addition.( Godey., 2016)

  • Market development-

Cadbury use market development strategy for Bourneville because currently so many people do not use it, also company use this policy for overseas markets. Cadbury make some changes in packaging and advertising for ASIAN country. Distribution channel play a important role in increase the market share in domestic market. For instance Cadbury put its Bourneville chocolate shelf in organic chocolate stores so that more health conscious people will buy it(Solomon. and, 2014)

  • Product development-

Product development strategy is used by any organisation to offer something new and innovative to customer. Product development are used to counter the competitor's selling effort, stay fresh in market or maintain the sale but it required whole modification in product to grab attention of customer. Cadbury launch Dairy Milk Wafer to counter its biggest rivalry Nestlé pudding-flavoured chocolate.

  • Diversification

Diversification decisions are taken by Cadbury because company hugely depend chocolate for its sales. Dependence on one product is very risky for any business as it can hurt company to large extent in case of change in external environmental factor. Company also wants to change its brand image associate with chocolate only. Cadbury launch gums for children.

6. Marketing mix of Cadbury-

Cadbury marketing plan include maximise the customer satisfaction, new product development, increase market share and find profitable opportunity in global market can be achieve with help of following marketing mix plan.


Cadubry make its marketing plan for product according to customer demand, need, preference, segmentation and seasons. Cadbury has so many quality products in its basket like Dairy Milk, Caramel Cake Bars, Brunch Hazelnut and Oreo, Blackcurrant Mini Rolls. Cadbury make diversification efforts like health beverage and organic chocolate, biscuits.

Mc Donald also product mix includes salad, beverage, snack and sides, chicken and fish, desert and shakes, hamburgers, sandwiches. As compare to Cadbury, McDonald have huge product diversification. Cadbury still depend on sweet and sugar based product. Large product diversification reduces overall risk.


Every customer has different purchasing power which affects the frequency to purchase the product and change customer behaviour. Cadbury solve this problem by offering differentiate pricing for different product so that customer can purchase as per his capacity. Pricing policy depend on product size, capacity of target customer, demand and competitor, packaging quality. Cadbury also give discount on separate product not only on whole bundle. This help in increase “small sale” for company.( Khan, 2014)

Mc doland use bundle price strategy and Psychological pricing strategy. it offer discount on purchasing whole bundle of product rather than separate product like happy meal. In Psychological pricing strategy, price appear like low priced but they actually not so cheap in reality like $__.99 in place of 1 dollar. This pricing strategy only effected when customer want to buy large quality.


Cadbury have large distribution channel form which include manufacture, whole-seller , retailer and end up with customer, long distribution chain lower the profit margin for Cadbury.

MC Donald establish direct customer offering by restaurant, website , apps and kiosks. Small distribution channel increase the profit margin of MC Donald.


Confectionery giant Cadbury uses television, social media, internet marketing, event management, charity programme for promotion.

MC Donald use advertisement, direct marketing and public relation for its promotion. Like discount coupon to customer directly(Chhabra. and Kiran, 2015)


7. Implementation plan for new organic sugar free chocolate 



1st month

· Define new product as unique characteristic product have. For instance Cadbury decides to launch organic chocolates. Requirement of new product making like ingredients, unique feature, and need must be crystal clear in mind of marketing and production department employee.

· Measure the competency of new product with organisation vision and mission

· concept testing of organic chocolate

· Budget estimation and demand forecast

· Communicate to stakeholder like supplier, share holder, customer and ask for suggestions for new idea by board of director.( Schindehutte. and Kura

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