Marketing Plan for British Multinational Confectionery Company Cadbury

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Marketing Plan for British Multinational Confectionery Company Cadbury

Situation Analysis

Situation analysis defines the potential customers, evaluates projected growth, assess competitors and makes a realistic assessment of the company. This assessment is then summarized as SWOT (strengths, weaknesses, opportunities and threats) analysis.

Company Analysis

Cadbury is a British multinational confectionery company owned by Mondelēz International which origin from Birmingham, England. It is the second largest confectionery brand in the world after Wrigley’s. Cadbury chocolate has been an integral part of Birmingham’s heritage, dating all the way back to the very first store in 1824. At 22 years of age John Cadbury opened his first grocer’s shop selling sells hops, mustard and a new sideline – cocoa and drinking chocolate made with cocoa beans in Birmingham, England. He soon became one of the leading cocoa and drinking chocolate traders in Birmingham. The popularity and growing sales of John Cadbury’s cocoa and drinking chocolate of ‘superior quality’ determined the future direction of the business. In 1847, John Cadbury became a partner with his brother Benjamin and the company became known as ‘Cadbury Brothers’. Later, Cadbury was merged with drinks company Schweppes to form Cadbury Schweppes in 1969.

In 1970, Cadbury was launched in Malaysia. There are more than fifty countries Cadbury is operating in and Malaysia is one of the countries that Cadbury operating in. Cadbury produces many confectionery products such as Dairy Milk chocolate, crunchie, snack and others. However, Cadbury Malaysia was famous for it Dairy Milk products such as chocolate bars and beverages. In 2010, Cadbury become a part of Mondelez International.

Company Objectives and Marketing Objectives

Mission statement:

“Cadbury means quality” this is Cadbury promise. The company’s reputation is built upon quality; the company’s commitment to continuous improvement will ensure that the company promise is delivered. Cadbury established as a company of fairness and integrity, which always operate as a socially responsible business.

Vision statement:

The vision of Cadbury is “Working together to create brands people love”. The company aims to be judged as a company that is among the very best in the business world .

Marketing objectives:

Cadbury is a leading company in food products and it wants to reach to all segments of society. The company wants to provide its products on different occasions or festivals and it is providing its products from small stores to departmental stores through their quick distribution channels. The company has diverse products that needs to be provided in the market of different countries. The company also focus on effective advertising campaign that can make its products popular among its clients. Therefore, Cadbury have the following marketing objectives:

To develop differentiated product, while exploiting a smart variety, to achieve their profitable growth in confectionery and beverages.

To further take advantage of technology in order to increase growth, quality and productivity.

By working together with global supply chain Cadbury have a competitive advantage while attaining their ethical and cost-reduction goals.

By competing on quality this gives Cadburys a unique selling proposition that allows them to lay an emphasis on total consumer and customer perceived value.

Company Resources

i) Tangible Resources

A tangible resource is an asset that has a physical form such as machinery, buildings, land and inventory. To Cadbury, tangible resources represents an opportunity to earn an economic benefit through the production of distribution of goods or the provision of services.

Human Resource

Cadbury has around 80,000 workers all over the world. Decision making is highly decentralized. Several facilities are given to workers such as summer hours’ scheme, cafeteria and transportation facilities and flexibility of time.

The employees are rewarded for their effort. Cadbury is offering cash for their employees that can help them in all their needs. If the employees working hard the profit will be increased and Cadbury can enlarge their brand in different companies. If employees satisfied with the benefits they are getting, they automatically work hard for company’s growth.

Financial Resources

Cadbury have wide range of products, such as various types of chocolate, refreshing gum, candy and others. Everyday, millions of people around the world enjoy their brands. They have capitalized premium as well as low cost market.

Organizational Resources

Cadbury follows a matrix of global function and number of business unit. Management structure is being divided into 3 executive directors and 5 non-executive directors who plan strategy and make decisions for the company on a long term basis. The concerns are mostly from the shareholders. The key success factor of Cadbury emphasizes is growth, efficiency and capabilities.

Physical Resources

Cadbury emphasizes production of product environmentally and ethically by stores and operates in almost 40 countries and sell nearly everywhere. Cadbury main manufacturing unit is located at Bournville in Birmingham.

Technology Resources

Cadbury uses Pathatrix system in the production as it allows them to increase the number of food samples tested for pathogens in a shorter amount of time.

The Pathatrix system provides Cadbury with a validated, science-based solution to the rigorous demands of a highly interdependent and time critical supply chain.

ii ) Intangible Resources

An intangible asset is an asset that is not physical in nature such as patents, trademarks, copyrights and business methodologies. Cadbury main intangible assets are goodwill and brand recognition.

Reputational Resources

Cadbury have maintained an active worker villages and R&D facilities since the time they first opened. Work-life balance has been a key tenant of the Cadbury Human Resources philosophy. Since the 1800’s, Cadbury has been concentrates on social responsibility towards various communities. They give a lot of preferences to stakeholders, focusing on their employees, suppliers and buyers well-being. They have constantly striven put their employees first.

The world’s second largest confectionery is also great when it comes to dealing with many people. The quality and loyalty of Cadbury had made it a common man’s brand. It has become a brand and has been found to have no adulteration. Cadbury also concentrates on the environment by reducing waste inform of plastics.

Innovation Resources

There are various types of chocolate and beverages that produce by Cadbury. As we know, it may contain a high amount of sugar and other substances that can affect customer health. In July 2019, Cadbury has introduced a new version of its Dairy Milk chocolate bar that contains 30% less sugar as part of the confectionery industry’s growing efforts to respond to the obesity crisis.

Marketing Plan

Cadbury has a well developed marketing plan process that every Cadbury products have to go through before being introduced to the market. There are seven stages of process that each Cadbury marketing plan have to pass:

i) Analysis of the Market

Being in the confectionery business and dealing with consumers, Cadbury has always been a market and consumer focused organization. It consistently conducts market studies to determine the positioning of its brands, in current, new and future markets. This forms the foundation of the Marketing Plan.

ii) Setting the Marketing Objectives

In order to deliver growth, Cadbury conducts many marketing programs for its brands every year. Each marketing program is accompanied with a Marketing Plan. Each marketing plan has clearly defined objectives for the project team to deliver.

iii) Establishing the Strategies & Tactics

Based on the market analysis and set objectives, each Marketing Plan will contain strategies and tactics which will be necessary in delivering the desired outcome.

iv) Developing an Action Plan

This is one of Cadbury’s key philosophies, “making things happen”. Therefore, every Marketing Plan in Cadbury has specific actions to be implemented by a person responsible, and within set time targets.

v) Monitoring of Progress

In Cadbury, every Marketing Plan is monitored monthly by the Senior Management Team of the respective SBU, to track the progress of the plan, as well as to make any necessary improvements or changes.

vi) Resource & Financial Management

Once a marketing program has been approved by the Senior Management Team of Cadbury, the necessary resources will be provided in order to deliver the objectives set in the Marketing Plan. As in the case of providing the necessary resources, Cadbury also provides an appropriate financial budget for the project to deliver the objectives set in the Marketing Plan.

vii) Measuring Success

Cadbury continuously measures the success of each of its marketing projects, and compares the results achieved vs. the objectives set in the Marketing Plan.

Present Marketing Strategy

Cadbury has maintained an effective distribution and brand equity to provide its products to its clients. This product is available from the stores and the effective distribution channel creates the competitive edge and its reach to the market to provide the products. The company provides its products on a continuous basis. It is also designing the communications and promotion of its products in the market so that it can get appreciation over its products. The company has maintained such effective strategy that can meet the needs of its customers of all age groups. The products of the company are provided at every cities and towns through its quick distribution channels.

Marketing Collaborators

Global

Cadbury brings the partnership with Premier League to life in a variety of exciting ways for football fans. From offering the chance to win matchday tickets to create opportunities to meet Premier League stars past and present, offering support to the Premier League Primary Stars work in communities around the country all the way through to presenting the Golden Boot, Golden Glove, and Playmaker awards at the end of the campaign. Cadbury wants to bring the Premier League to consumers for them to share in the moments of excitement that football brings.

Cadbury Dairy Milk launch a new brand campaign Donate Your Words in partnership with Age UK. For the first time ever the UK’s number one chocolate brand will be removing the words from its iconic bars and ‘donating’ them to the Charity to help alleviate loneliness amongst older people.

Cadbury also collaborate with multi brands to create new products such as

i) Joyville – Cadbury Dairy Milk Oreo chocolate bar
ii) Daim – Cadbury Dairy Milk with Daim
iii) Nabisco – Cadbury Dairy Milk Ritz
iv) Pascall – Cadbury Dairy Milk Pineapple Lumps
v) McDonald’s – Dairy Milk McFlurry and Crunchie McFlurry

Malaysia

Cadbury collaborated with renowned cartoonist Datuk Lat launched a new limited-edition flavour Kopi C and Cadbury Dairy Milk Durian exclusively for the Malaysian market. Dairy Milk Kopi C is the first ever localised flavour and pays homage to Malaysians’ love of traditional coffee shops, also known as the kopitiam. Cadbury Dairy Milk Durian flavour was launched not only to celebrate the flavours of Malaysia but one that also truly resonated with the nation. In celebration of Malaysian flavours and culture, the sleeves of selected Cadbury Dairy Milk products will feature hand-drawn illustrations by Datuk Lat.

Cadbury Malaysia partnered with Food Aid Organisation to provide food to 400 residents of Program Perumahan Rakyat (PPR) in Desa Tun Razak. Through this collaboration, Cadbury Malaysia will redistribute the stocks which would otherwise end up in landfills to be channelled to charitable and welfare homes for the needy. This will reduce their food bill.