The Foundation Of Cadbury Limited Marketing Essay

The Foundation Of Cadbury Limited Marketing Essay Cadbury dairy milk is the product of Cadbury which got launched in 1905. It is a great success for Cadbury industry .In the beginning the product is produced by keeping in mind the customer satisfaction for the product which should match the regional selection criteria and it should fulfil the need and demand and customer expectations. Cadbury also introduced chocolate in tins with unique pictures and paintings on each box, which started fascinating the customers. As an international brand Cadbury Dairy Milk carries the same distinctive image all over the world. Wherever you buy a bar of Cadbury Dairy Milk the pack design will be exactly the same, only the language will be different. The famous slogan glass and a half of full cream milk in every half pound with the picture of milk filling into the chocolate bar, is the one of the best British advertising. Cadbury Dairy Milk was a great success as it has capture almost a great number of the market share but soon after some time Dairy Milk start to go down after the entrance of other brands in the market like Nestle, Mars, Hershey which bring down the market share of Cadbury Dairy Milk. Cadbury company was started by an individual person in 1824 name John Cadbury; in Birmingham he laid the foundation of Cadbury Limited. Now Cadbury is the world largest producer of chocolates in the world. Till 1831 the business of the company got changed from a grocery shop to a manufacture of drinking chocolate and coca and till present its going like the same. Dairy Milk is a popular brand of chocolate bar of Cadbury in United Kingdom and in the whole world. It was traduced in 1905 and its comes in a large number of varieties which includes Fruit Nut, Whole Nut, and original Dairy Milk .It comes in different package sizes to suits to the customer needs and demand. Cadbury Plc was founded in1824 by John Cadbury a young Quaker. He first opened a small grocers shop in Birmingham making chocolates on a small scale, with coca and drinking chocolate on the side. Then in 1831 John decided to start manufacturing on a commercial scale, and he bought a warehouse in nearby Crooked Lane. In 1847 John joined his brother Benjamin into the partnership and the name of the firm was changed to Cadbury Brothers. The business was getting popular then both the brothers moved the business to new factories in Bridge Street , but in 1855 after the death of John`s wife and his illness the combined business of both brothers John and Benjamin come to an end with mutual consent and then John transferred all the right to his sons Richard and George. 1861 1900 John Cadbury retired from his business and his sons Richard and George took over the company. As Richard had already joined his father business in 1850 but in 1861 with the partnership of his brother George who was only 25 at that time. Richard started to look after sales and marketing side which was not in good shape. He once said that if business ever made a profit of thousand he will take retirement. Richard was also a talented artist and in 1868 he founded the way of increasing the appeal of chocolate boxes by decorating its lid with pictures some of them are of his own creation, soon after some time he died unexpectedly from diphtheria in 1899. George son of John Cadbury joined Cadbury Brothers in 1856 and became partner in the business with his brother Richard in 1861. The first few years were extremely hard and the brothers worked very hard in order to establish the business. He looked after production and buying and he is also responsible for finding the companys new site, Bournville, he also planned the factory layout himself. Because of his trip to Holland where he bought innovative new coca press, in 1886 Cadbury launched Cocoa Essence, the first unadulterated cocoa in UK. In 1901 he gave the site to Bournville Village Trust. He did many good will works for his employees like setting up education facilities, opened work committees for both men and women and also donated Lickey Hills Country Park to the people of Birmingham. George remained Chairman of Cadbury Bros until his death in 1922. William Cadbury son of Richard Cadbury joined in 1887. He was mainly engaged in engineering, maintenance and new machinery. In 1889 he became managing director, then he gave up his engineering duties and took up charge of sales and buying. He setup the Mens Pension Fund in 1906 and a separate fund for women in 1911 and is also responsible for Cadbury pulling out of the purchase of cocoa from Sao Thome and Principe after evidence of slavery, and for the development of the Ghana cocoa trade. The first proper Cadbury logo of a cocoa tree was commissioned by him in 1905 from the French designer Georges Auriol and also the famous Cadbury signature logo is based on his signature. He became the Chairman of Cadbury Brothers Ltd in 1922 after the death of his uncle and held this position until his retirement in 1937. Elizabeth, Georges second wife is best known for her welfare work. The list of her good will work is endless like she and George in 1909 opened the Woodlands Hospital in North field. She died in 1951. Edward Cadbury son of George and Mary, joined Cadbury Bros in 1893. He was appointed as a Managing Director in 1899 and given two specific duties: to expand exports and to organize the women employees at Bournville, who formed the main part of the labour force. He was responsible for the Export Department from 1899 to 1927 and for the Womens Department from 1899 to 1919. He was made responsible for pricing in 1903 and set up the Costing, Statistical and Planning Departments over the next few years. He was also interested in education and founded the Selly Oak colleges in Bournville, as well as writing books on management and organisation. He was also in charge of the Accountants Department, a member of the Finance Committee and was responsible for the Advertising Department during the inter-war years. Edward was appointed Chairman of the British Cocoa Chocolate Company in 1932 and in 1937 succeeded William as Chairman of Cadbury Bros Ltd. He retained both chairmanships until he reti red in 1943. George Jnr, son of George and Mary joined Cadbury Brothers in 1898. The following year his uncle Richard unexpectedly died. His father George Snr set up a new limited company with himself as chairman and four managing directors: Richards sons Barrow and William and his own sons Edward and George. So George became a managing director at the age of just 21 and was responsible for the technical and scientific side of the business. Georges greatest contribution was the perfection of milk chocolate and he led the development and launch of Cadbury Dairy Milk in 1905. He was also responsible for setting up Cadburys milk factories and transport department. He retired in 1943. 1900 Present Laurence, father of Adrian and Dominic and son of George and Elizabeth joined Cadbury Brothers in 1911 and was the first graduate member of the family to work at Bournville. Cadbury Company builds a village for its employees. He was appointed to the Board of Directors in 1918 with a wide range of responsibilities including engineering and production. He was appointed Director of the British Cocoa Chocolate Company (BCCC) in 1921. Becoming Chairman of Cadbury Brothers and Chairman of BCCC in 1944, he held both posts until he retired in 1959. Dorothy, daughter of Barrow Cadbury and granddaughter of Richard Cadbury, joined the business in 1917. She worked in numerous departments and served on several of the main committees. She retired in 1952. Sir Adrian, eldest son of Laurence Cadbury was appointed as Director in 1958. In 1965 he became Chairman of the British Cocoa Chocolate Company. 1969 saw him taking up the position of Deputy Chairman and Managing Director of Cadbury Schweppes, and he became Chairman of Cadbury Schweppes in 1974. He retired in 1989. Son of Laurence Cadbury and brother of Sir Adrian Cadbury, Sir Dominic was appointed director in the late 1960s. He joined the Cadbury Schweppes board in 1974. His subsequent positions have been: 1975-1978: Managing Director, Cadbury Foods Division, 1978-1980: Chief Operating Officer, Cadbury Schweppes, North America; 1980-1983: Managing Director, Cadbury Schweppes; 1983-1993: Group Chief Executive, Cadbury Schweppes; and 1993-2000 Chairman, Cadbury Schweppes. Now retired from the Cadbury business. Appointed Trustee in 1994 and Chairman of the Trust since 1996, Roger was previously a director of various companies. He chairs the Trusts Estate Management Scheme Committee and is a member of the Agricultural Estates Committee. He is currently Chairman of Warwick Independent Schools Foundation, Warwickshire Wildlife Trust, and Croft Trust of Adult Education, as well as serving as Trustee of a range of charities. 2. Situation Analysis Cadbury Dairy milk was launched by Schweppes which was the largest food and Beverage cooperation headquartered in the U.S .The Kraft Inc take over Cadbury in 2010 which is the British Confectionary company, the industry`s second-largest globally. The new product is launched globally. 3. SWOT Analysis Cadbury first started its business in 1831 by John Cadbury. Its brings change in cocoa processing from the year 1866 onwards. The company got combined with Schweppes in 1969.Currently this company is employing approximately about 43000 people in all f the world. Today, Cadbury Schweppes is the world`s fourth biggest supplier of chocolate sugar Confectionary. One of its product, Dairy Milk was introduced in 1905 and has become the most successful moulded chocolate in UK history and the basic ingredient for many other Cadbury products 95years later, Dairy Milk is one of the worlds favourite Chocolate brand name sand company`s leading chocolate bar by revenue. 3.1 Aim: It was important to investigate on both forces internal and external environmental for the Dairy Milk in France. Significant organizational and industrial information is required for the development of the SWOT analysis. The main purpose of analysis of the environment and consideration of the situational factor when designing, marketing, planning, is critical as it would allow Dairy Milk to capitalize on organizational strengths, minimize any weakness, exploit market opportunities and avoid any threats. 3.2 Strengths: Cadbury would realize several possible advantages in going abroad. By penetrating a foreign market the company could: Maintain a stable growth of a company by maximizing the use of its production capacity and thus increase economies of scale and scope. With its brand name, Cadbury could counterattack the competitors it faces in the domestic market by attacking their domestic market. Keep up with the financial strength by increasing its sales and profit, indeed the foreign market could present higher profit opportunities than the domestic product. Acquisition rules in UK, reduce its dependence on the UK market and therefore diversify its market specific risk. Overall, Cadbury has been successful through the new products (development) it has to offer. 3.3 Weaknesses: Generally Cadbury has a weak position in the market. Thus, need to change its target to a different location. Cadbury distribution network is weak and has a small market share altogether so if they want to market there product in France successfully, Cadbury has to do its best to get great performance. They can also look towards those situation by them they can get success. Cadbury can market its products by keeping in mind the issue: France production of Chocolate bars and confectionary has increased by 24.5percent between 1988 and 1991 but now it has slowed down because of economic slump. Consumption of Chocolate products which got a rise till 1991 got a hold in 1992, due to the fall in demand because of gloomy economic conditions. Chocolate bars which were selling at 24 per cent of the total volume of chocolate bar have decreased to only 3.7 per cent. 3.4 Opportunities: Cadbury has to built variable position in his confectionary line in the market through his organic product growth. Besides that Cadbury can expand his opportunities to the markets based in Russia and China. Cadbury is also selling its products on internet which is also their popularity side which includes free chocolates. Some of the opportunities are as follows: France is the fourth largest Gross Domestic Product in the whole world. It is first world advanced market economy. Although the recession didnt did wrong with the country economy. 3.5 Threats As a confectionary product maker it is important for Cadbury to aware of its upcoming threats. Company should always check the buying behaviour of consumer buying trend. It is perceived that consumers. There is a possibility for the consumers to shift from chocolates to Healthy food or snacks. If this has happen it could cause Cadbury`s name to fall down. Cadbury prices are competitive from his competitors like Mars, Nestle, and Hershey. Seasonal sales slumps the chocolate market every year which affect the price of raw material that is needed to make the products. If Cadbury is entering in world it has to be aware of the risks involved in it. By not understanding foreign customers preferences and failing to achieving their expectations. By not understanding the business culture. 3.6 Conclusion In process of getting high and peak position. The company has to keep stressed on the global growth of the product. It can be a risk to market it in the region France, 4. Objective Setting Cadbury has set some objective related to Dairy Milk for its marketing and advertisement which are main factor for its product promotion and profit making which are as follows. To maintain the quality standards of its products. Enhance sales to gain more profits Packaging should be of good and hygienically passed quality To reach in every part of the world To give more and more benifits to the customers by by giving them promotions and free take aways. 5. Company Profile 1824 Aged 22, John Cadbury, a young Quaker, opens a small grocers shop in Birmingham- making chocolate on the sideline. 1847 John Cadbury moves his business to a larger factory, as his company becomes The Cadbury Brothers- his brother Benjamin joining him. 1861 John Cadbury retires and sons Richard and George take over the company. 1879 Cadbury Chocolate Company moves to Bournville. Over the next ten years the number of employees grows to 1,200. 1893 Cadbury Company builds a village for its employees. 1920s The Cadbury script logo is first used. 5.1 Company mission Cadbury Main statement is Cadbury means Quality and this is their promise and reputation to built quality products and continues its promise delivered to customers. Cadbury Has established its company as a fairness and integrity which proves that Cadbury is a socially responsible company. 6. Marketing objectives For achieving increase in sales Cadbury undertakes a number of marketing activities to encourage the sale of its products .Cadbury has set some objectives to maximize its sale and gain more profits. There are some basic aims that Cadbury has define in his corporation are as follows. 6.1 Survival For survival Cadbury keep its product quality up to a specific standard and prices to that level that could compete with other competitors. 6.2 Profit maximisation Profit maximization which is often taken to be the reason why firms exists and to be the primary objectives in practices most firms have a hierarchy of objectives when a firms survival is threaten it may profit maximise in order to restore its financial health. 6.3 Growth Which includes Cadbury selling new products or expanding overseas. 6.4 Diversification This is the spreading of business risks by reducing dependence on one product. 6.5 Sales Increase It is the main key factor of sales by which company gains more profits and generates revenues. 6.6 Improving the product image Its includes creating a new logo or launching a new brand of product and creating more attractive packaging.   For example, Cadbury has made to important key points for the development of their chocolate. These were: 1. To grow the market for chocolate confectionery 2. To increase Cadburys share of the snacking sector In the time of launching Cadbury they thought that any new product can make a big difference creating unique selling proposition (USP) i.e. a product with unique appeal which is not present in any other competitors product. Cadbury has wasted a lot of money on testing and combination of various ingredients and more than 250 recipes were combined together before finalizing the final chocolate recipe. As Cadbury produced products they first test them that can the consumers can buy Cadbury products or not. Promotion is a key factor of any product launching and Cadbury done this in various ways which include the following ways newspapers, magazines, television and radio etc. 7. Tactical application Marketing professionals and specialist use many tactics to attract and retain their customers. These activities comprise of different concepts, the most important one being the marketing mix. There are two concepts for marketing mix: 4P and 7P. It is essential to balance the 4Ps or the 7Ps of the marketing mix. The concept of 4Ps has been long used for the product industry while the latter has emerged as a successful proposition for the services industry. The 7Ps are described below. 7.1 Product Cadbury Dairy Milk was launched keeping in mind people taste about the chocolate which a research work is done by Cadbury in 1905. The entire taste ingredients included in it are selected from many different places to give customers the taste they want. 7.2 Price The pricing strategy of Dairy Milk has always been in accordance with its competitors. Price is simply the cost plus profit of the firm. There are many competitors in the market. As the products are of high quality, so usually high prices are charged. So the Management has considered about the competitive price while selecting new prices and schemes. Firms have to consider many factors for determining the price. Selecting the price objective Analyzing competitors costs, Prices and offers. Selecting a pricing method. Prices are set by taking into consideration: The price of the product must be competitive and must entail profit. The pricing strategy can comprise discounts. 7.3 Place Cadbury market Dairy Milk to those places where it can get a good response from the customers as well as revenue to the company. 7.4 Promotion Cadbury like all other brands also invest heavily in advertising its product special its major popular product Cadbury Dairy Milk, it is marketed in the following way Media, Newspaper, Billboard advertisement. 7.5 People People plays a vital role in brand establishment as they are directly involved in the recognition of it in the market and this matter should be realized by the customers that its in their hands, Cadbury target young people and children mainly as compared to elders. 7.6 Process Cadbury keeps a record of all processes it does like methods and process are provided and also keep a record of provided services are helpful for the customers or not, and whether customers are informed or not. 7.7 Physical (evidence) Cadbury keep a record of all experiences which it is getting by physical questioning, buying behaviour of the customers.nad providing them guidelines about the products they are purchasing by giving them brochures, and pamphlets. 8. Action and Implementation Cadbury Dairy Milk has been launched successfully and now we are projecting our focus on increasing the sales and profits of our brand .As after the launching of Galaxy in the market Dairy Milk has gown down to that level where Galaxy is making more profits then Dairy Milk, so Cadbury is trying to regain its market share by doing allot of promotional activities and advertisements for Dairy Milk. 8.1 Budget In view of our action plan for increasing the sales revenue of Cadbury Dairy Milk, extensive promotion is required, and we have the following Marketing budget outlined according to our line of action: Projected Income Statement For Year 2010 2011 UK (  £ ) Sales 20,000,000 Cost of Goods Sold 9,000,000 Gross Profit 11,000,000 General Administrative Expenses 2250,000 Earnings Before Interest and Taxes 8750,000 Interest Expense 110,000 Earnings Before Taxes 8640000 Tax 90,000 Net Profit 8550000 8.2 Conclusion As Cadbury launched Dairy Milk in 1905. Its market gets a great height but after some time its market got a huge decline and its sale got down because its competitor product Galaxy took its market share and customers started to buy Galaxy instead of Cadbury Dairy Milk. As for that Cadbury has started again to do remarketing of its product by doing advisement. Inform of TV advertisements, newspapers, Billboards, etc and hence Cadbury Dairy Milk is on declining stage. 9. Individual Critical Reflection 9.1 Specific Values Cadbury is the world Renowned confectionary company started its business in 1824 and based in United Kingdom .It provide drinking chocolate and chocolate bars like Dairy Milk. Dairy Milk is the largest profit giving product of Cadbury and it is liked by almost every person adult of child that is why its very popular in the world . 9.2 Declining Stage As Cadbury was going to a height then in the mean time new Competitors (Nestle, Mars, Hershey) came into the market with more variety and flavours which thus they started threatening Cadbury sales by a decline in its mass product Cadbury Dairy Milk, as Dairy Milk was coming in the same flavours and competitive prices where as Dairy Milk prices were not competing with its competitors as a result Decline in the product .As Cadbury Dairy Milk competitors like (Nestle, Mars, Hershey) were doing there best to keep there products up to the standard into the Market by doing Media advertisements. 9.2.1 Marketing disadvantages Marketing plays a vital roll in a products popularity and market share in the market but Cadbury lack this in the way that the marketing department didnt paid much attention towards its product so it starts declining . There should be a good marketing plan should be given to a top marketing agency to market the product and to spend money in a correct way 9.2.2 Brand Placement To make a product popular among customers the brand name Cadbury Dairy Milk should be made that much attractive among customers that when it is launched it get the height what it wants. And then it is the agency responsibility to make the product capable of getting its goals and compete with 9.3 Action Plans Dairy Milk has been launched successfully and now we are projecting our focus on increasing the marketing of our brand as it is in declining stage to that percentage that it can compete with its competitors for the upcoming year. Increasing marketing actually means shifting the marketing strategies and attracting new customers to enticing the proven customers to buy again. Attracting new customers is good. But attracting new customers is not the only way to increase the sales. Shifting the sales focus to enticing the current customers can also make increasing the sales easy as well as building customer loyalty that result in repeated sales. The key to success in increasing the sales is effective marketing promotion of the product to an extent that catches the customers confidence. For attaining the desired objective, Cadbury Dairy Milk will conduct back to back advertising and sale promotion campaigns. Following are some details of these campaigns: September: We will start with marketing promotion campaign to generate excitement in the consumers mind for the Cadbury Dairy Milk. During the first month, there will be four trucks that will be roaming in the target areas and distributing free samples of mini Dairy Milk chocolate bars of 25grams. October: In October, we will go to exhibit at the major retail chains, providing free samples in the major shopping malls and Schools and ask there comments. We will also endorse celebrities and hire opinion leader as part of our public relation strategy. Our training staff will work with sales personnel at major retail chains to guide and give information regarding Dairy Milk to the consumers. November: We will start print, TV and internet campaigns for Dairy Milk by running advertisements of all media. The campaign will show the customers hows the taste of Dairy Milk is and take suggestions from them and also telling them about it new flavours and attractive packaging. We will increase the expenditures on Mass Media advertisements in order to improvise the position of the brand in the consumers mind as well as to dominate other Brands in its promotion and per hour airing on TV channels. We will organize different events regarding children so that we can capture the interest of them. We will be visiting schools for organizing fun activities for children. December: We will be launching schemes for retailers and whole-sellers in September, in which certain points will be given to wholesalers on the highest sales of Dairy Milk, and in turn on the basis of these, certain incentives will be provided to peak wholesalers. This can be a good strategy to improve the relations with distribution network and its efficiency as well. January: The best way to promote marketing and sales is to add value. The trick in sales promotion is to come up with ideas which add value to a product, rather than just cutting the price. Therefore, we will be adding value to Dairy Milk by giving every customer a free pencil, free pencil box, free books with purchase of every 250grams chocolate bar of Dairy Milk. The promotion can be successful because consumers will like this idea, and for the company, it can be cheaper than a price cut. February: We shall be distributing Special Shelves, Wall clocks and Key chains with Cadbury Dairy Milk logoto the shopkeepers incentives to promote our brand. March: A scheme will be offered i.e. buy more and more Dairy Milk Family Bars and get a chance to enter a lucky draw scheme to win return ticket to Paris for two people. And therefore, it is hoped that all these promotional activities will create enough awareness amongst the target sector that will force them to look forward to Dairy Milk when buying a Chocolate and all these promotional activities will consequently be resulting in increasing the sale of our product and generating the expected revenue and bringing the product to again in previous position in the market among its competitors. 9.4 Implementation Control In order to effectively implement our desired stated action marketing plan for Cadbury Dairy Milk to increase the sales revenue by the end of this year, we need to have a check on various promotional activities if they are going on accordingly as planned. This review is required on monthly basis so that the objective of achieving high sales revenue can be well chased. Hence the following activities are required to be monitored: There will be the need to monitor whether the marketing objective is achieved or not. Apart from this, the expenditures should be properly monitored and they shouldnt vitiate too much from the forecasted budget. There will be the need to check the distribution network and ensure that product is available in market at all times. There should be a strict check on whether the customers are getting the same message as what we are trying to deliver in advertisement, and hence check its impact on sale. It will also be needed to see the impact on sales by the different promotional activities conducted. It will be strongly needed to identify the packaging preferences or the price related concerns of the customers from time to time, and take corrective actions to achieve the financial and marketing objectives. 9.5 Gantt Chart G A N T T C H A R T Month JAN FEB MAR APR MAY JUN Campaign Cadbury Dairy Milk COST General Budget: year 2010 X X X X X X X X X X X X X X X X X X X X X X X X 5MILLION Big banners for shows X X X X X X 1million Website Creation X X X X X X  £1.5million ADD Designing Printing X X X X X X  £2.5mIllion Logo Design X X X X X X  £3million Statement Creation X X X X X X  £1million Advertisement on all media`s X X X X X X  £1.5million Agency Cost X X X X X X X X X X X X X X X X X X X X X X X X  £3million Total X X X X X X X X X X X X X X X X X X X X X X X X 13.5million