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MKG721 Food Marketing

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MKG721 Food Marketing

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Course Code: MKG721
University: University Of The Sunshine Coast

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Country: Australia


Case Study of Cadbury:
Develop a food marketing strategy for one branded product in the emerging food sector driven by a coherent knowledge of consumer decision making. 


Cadbury was introduced and formed with collaboration in 1969. The company expanded its power and lead into international confectionary company. Cadbury is one of the renowned brand in the confectionary industry and it has expanded its operation in various food products. The company is very well known for its wide range of dairy milk products. The company has covered almost 66 counties through its effective marketing strategies. Initially, it focused on children demands but it observed that the growth percentage has become stable. In order to improve and extend its hands to enlarge and spread its target market, it introduced other products. It also introduced the product named dairy milk that has high milk proportion and content that have become best-selling product of Cadbury (Balaji, Londhe and Shukla, 2016).  
Industry analysis and product
As Cadbury deals in confectionery business, it has been always a market that focuses on organisations. Cadbury has become a leading food product dealing in various segments. The industry analysis undoubtedly covers porters five forces analysis. The intensity of competition has become more prevalent in the confectionary industry (Neilson et al., 2018). As the industry shows good potential growth, new plays may plan to decide to enter the confectionary market. Due to entry barriers, high establishing manufacturing standards lowers the intensity of new entrants in confectionery industry. The suppliers of the cocoa is limited due to challenges faced by the farmers in the cocoa sector in places such as Cameron. Both new and existing competitors affect the average profitability of industry. The threat is based on the market entry barriers. The consumers are not limited to a particular age such as children. It has become more popular occasionally such as mother`s day, children`s day, Diwali etc (Park, Ungson and Cosgrove, 2015).
Consumer behaviour
The trend keeps changing so as the consumer preferences. Cadbury has become popular as “Mathai” especially in India. Some traditional sweets has become more expensive. Chocolates started substituting the expensive traditional sweets (Fernandes, Gupta, and Vidyasagar, 2016). Instead of buying traditional sweets on Diwali and Raksha Bandhan, people loves to but chocolates. Moreover, the variety of chocolates have become diversified and further create impulse sales for confectionary companies. Earlier, chocolates were unaffordable, have become mid-priced. Designer chocolate packaging is considered as status symbol. There are mainly three factors named as demand for the product, customised talent, and conducive regulations affects the production of any product in a country.
Majorly, chocolates target children. To attract kids, company starts focusing on sweetness and glittery packaging of the product. Colourful and cartoons packaging attracts the children but the industry started noticing that the growth rates in the companies have become stagnant. Nevertheless, it forced the company to re-think the marketing strategies that would enable to extend its target market (Freeman et al., 2014). Cadbury was the first chocolate in confectionary industry that stormed to position itself in children as well as adults. The consumption of chocolates show indulgent of enjoying rather than regarded as snack food. Adults bought chocolates in order to gift kids. The chocolates are placed near the retail counters of the stores and supermarkets. Wholesalers of FMCG products sell the chocolates to general stores, gift stores, grocery stores, canteens, bakeries, supermarkets, and medical stores. Most consumers buy chocolates from discounted stores and supermarkets (Joshi and Nema, 2015).  
Target segment
 Cadbury is a renowned name in the confectionary world industry. The company produces chocolate, candy, and gum brand in more than 60 countries to millions of people. The company targets an extensive range of consumers especially from children to adults for age group 5 to 50 years. The target age group is children and youths because these age groups are chocolate lovers. The company tries to attract its target audience (Bharucha, 2016).   
Cadbury invests in research and development centres especially for Bourneville factory with new advance labs, a collaborated kitchen, and a model plant factory (Pai and Subramanian, 2014). It provides a creative centre for experimenting innovation and new ideas. Moreover, Cadbury wants to cater all the segments of society.  The products of Cadbury are used for different objective, as the youth would always like to eat these products for entertainment and love. Whereas, teenagers loves to eat Cadbury products as adventure. Children loves the taste, as the products are mostly sweet and sugary in taste (Beneke et al., 2015).  
Market acquired by Cadbury in global as well as UK market

(Source: abpf87, 2011)

Geographic & Demographic segmentation

Psychographic segmentation

Cadbury strives to identify the size of market, per capital income and consumption level, and growth trends.
The company analyses each segment to calculate the market share of the company.
Demographics permits the company to understand the overall confectionary market based on age, income group, and gender (Wang et al., 2017).   

Psychographic segmentation is identified based on consumer lifestyle, motives, and attitudes.
Cadbury identifies and segments UK chocolate market in different categories as per their preferences such as one who prefer taste, shape, texture, or packaging (Spence and Velasco, 2018).      
This would help the company to know the target market and so as the best-suited Cadbury cream egg twisted products.

Consumer decision-making process
It is very difficult to classify and capture customer perception, as there are huge number of customers. It is important to establish a strong relationship. The company uses Facebook, Friendster, and twitter to penetrate the customer minds and collect their feedback. Moreover, Cadbury can more gimmicks with the existing fan pages online.
The positioning and segmentation of Cadbury products are based on demographics, psychological and behavioural factors such as income-level of people and occasions. The consumers of children and youth age group enjoys Cadbury products. The offering is based on the production capacity, packaging designs, occasional demands, celebrity endorsements, storage facility at the outlet, and pricing of packs and other many factors. The positioning factor includes vision and mission of the company. The vision plan includes all the strategies of Cadbury philosophy. The objective of this business strategy is to deliver superior returns to the shareholders by realising its prime vision to become world`s best confectionery company (Spence and Velasco, 2018).

(Source: Khedwal, 2013)
Marketing-Mix consists of various attributes that enables the selling of product globally. It considers mainly four components such as the product itself, price consideration, and the promotional activity to induce the potential customers. Cadbury has a wide and power line-up of offering of products. As far as the BCG matrix of Cadbury is studied, it is interpreted that a company can have one or two cash cows but Cadbury has a number of lions recognised as dairy milk, Perk, Bournville, Cadbury éclairs. The Cadbury has not limited its confectionary items but extended introduced a premium Oreo (Bhasin, 2018).   
Although Cadbury has covered the people of all age groups but then it started distinguishing the product offerings to specific consumer groups. For example- Cadbury launched temptation and Bourneville to attract those customers who are willing to pay more. Cadbury SILK targeted people who cannot repel chocolates. Cadbury has been positioned itself as a sign of good times and meant for special moments for life. Chocolate bar is made from the real dark chocolate. Worldwide, Same design is used with more milk content than any other chocolate bar.
Consumption of different chocolates from Cadbury

(Source: Marketing Diary, 2014)
Price reflects the image of the brand. Cadbury value its target market as well as its potential customers. Decision on pricing does not major impact on the brand. For example- Cadbury offers the bar at premium price as compared to Tesco`s and Sainsbury bar for the market. Moreover, Cadbury also sells its high products to reflect the luxury brand and can derive good premiums by innovating and introducing Cadbury milk tray, green & black and Cadbury roses. The price also depends on the perception and preferences of the customers. Currently, Cadbury gives special deals for its products in its price such as 20% more in the same selling price (Laforet, 2015).  
Cadbury chooses the communication strategy to achieve the objective of increasing awareness and finally attracting the customers to make them purchase the product. Every promotional activity can be used in a different way that increases the brand value, brand awareness, educating the customers which further increases the seasonal purchases, campaigns “choose Cadbury” to mark positive emotional value of the product and brand (Spry and Lukas, 2016). After the invention of electronic media, Cadbury has been using number of websites as a platform to make popular its brand. Websites provide information, education, games, cocoa partnership, fair trade, and good associates like purple goes “green.” The company has also agreed to enter into a partnership with 2012 Olympic that will assist it to give global recognition. Moreover, attractive adds via TV, print media, and Radio. Advertisements have real life instances and Cadbury fills happiness in them in each moment (Bumbudsanpharoke and Ko, 2015).     
Marketing activities
To promote a new look of dairy milk, a campaign theme seems as look of happiness. The objective of this campaign is to promote new look of the bar. Cadbury should implement a wide-ranging campaign. The marketing activities cover advertisements by Internet and billboards. Television advertising is costly but the company manages to afford it because it has high market position. The company also strives to maintain flex on the buses to cover a wide range of customers so that the entire public get to see what the company is going to offer something new. Public relation is another way to communicate through media by informing about new products and changes in the existing product. Sales promotion is the technique used by the company to sell the products. Informing the customers regarding discounts such as ‘buy one get one free’ and 20 percent extra in the quantity with the same price is a way to promote the products in supermarkets.
Cadbury uses colourful packaging that provides it a quick brand recognition in many forms of marketing communication plans especially a television advertising and outdoor advertising. Recent surveys have found that 88 percent of UK consumers recognised Cadbury through its packaging. The packaging colour of the brand made it most recognised brand in the confectionary industry. It shades its packaging, which enables it to establish long association with luxury and royalty. The packaging colour “royal blue” is considered as valuable to recall brand recognition. To gain a logo, signature colour and the brand name, the company has spent millions in legal and regulatory fees to protect its brand name and logo. The aim of paying a huge sum of money as legal fees to hinder the other companies to use purple named as “Darrel Lea” in order to promote their products through marketing communication by blue colour (Thaichon et al., 2018).   
Price promotions
Quality comes with price, as the quality is enhanced the price increases because there is always a cost associated with every service. Oreo constantly strives to market its products to stand on the top. Similarly, the price of the Cadbury products is high; on the other side, it is reasonable in some cases. Small-packed products such as perk, éclairs and five star give the same taste of Cadbury even with the low prices. Dairy milk is the permanent image of brand Cadbury and is considered as a premium wide-ranged product of Chocolate due to its positioning but it is widely accepted due to lower price and acceptance among different segments. Cadbury has launched a high-profile on-package promotion which gives an opportunity to customers a chance to win a money-can`t-buy prize which can bring joy that can be made out of its taste. The company is striving to tape the current trends for personalisation for customers and fulfil the desire that can create experience once in lifetime rather the material objects (Telang and Deshpande, 2016).
From the above discussion, it can be sum-upped that the company`s marketing plan and strategy has a positive impact on the revenue and profit margins. The company has achieved a popular brand name among the customers. The blue colour of its packing has made it popular globally. The company has its brand value and range of product with portfolio of candy brands.     
abpf87, (2011) Who has not been fascinated aWilly Wonka and the Chocolate Factory!. [online] Available from: https://abpf87.wordpress.com/ [Accessed on 30/09/18]
Balaji, D., Londhe, B.R. and Shukla, R.P., (2016) Successful Emotional Branding Campaigns on Television in India: An Exploration. Indian Journal of Science and Technology, 9(15).
Beneke, J., Floyd, V., Rono, C. and Sherwood, K., (2015) Chocolate, Colour and Consideration: An Exploratory Study of Consumer Response to Packaging Variation in the South African Confectionery Sector. International Journal of Marketing Studies, 7(1), p. 55.
Bharucha, J., (2016) Cadbury Vs Nestle: A Study of The Chocolate War. Journal Homepage: https://www. ijmra. us, 6(9).
 Bhasin, H. (2018) Marketing mix of Cadbury. [online] Available from: https://www.marketing91.com/marketing-mix-of-cadbury/ [Accessed on 30/09/18]
Bumbudsanpharoke, N. and Ko, S., (2015) Nano?food packaging: an overview of market, migration research, and safety regulations. Journal of food science, 80(5), pp.R910-R923.
Fernandes, S.F., Gupta, P. and Vidyasagar, A., (2016) Cadbury India–Sweet Turning Sour. Ushus-Journal of Business Management, 15(4), pp.37-54.
Freeman, B., Kelly, B., Baur, L., Chapman, K., Chapman, S., Gill, T. and King, L., (2014) Digital junk: food and beverage marketing on Facebook. American journal of public health, 104(12), pp.e56-e64.
Joshi, A. and Nema, G., (2015) Emotional branding: A new way to create brand loyalty for FMCG companies. Journal of Management Value and Ethics, 5(2).
Khedwal, A. (2013) Cadbury dairy milk. [online] Available from: https://www.slideshare.net/ArunKhedwal/cadbury-dairy-milk-25605120 [Accessed on 30/09/18]
Laforet, S., (2015) Managing brand portfolios: audit of leading grocery supplier brands 2004 to 2012. Journal of Strategic Marketing, 23(1), pp.72-89.
Marketing Diary, (2014) Have you felt Silk Lately? [online] Available from: https://karishma-changlani.blogspot.com/2014/08/ [Accessed on 30/09/18]
Neilson, J., Pritchard, B., Fold, N. and Dwiartama, A., (2018) Lead Firms in the Cocoa–Chocolate Global Production Network: An Assessment of the Deductive Capabilities of GPN 2.0. Economic Geography, pp.1-25.
Pai, V.S. and Subramanian, R., (2014) Kraft Foods, Inc. in India—The Cadbury Acquisition. Asian Case Research Journal, 18(02), pp.371-399.
Park, S.H., Ungson, G.R. and Cosgrove, A., (2015) Defining the Drivers of Profitable Growth. In Scaling the Tail: Managing Profitable Growth in Emerging Markets (pp. 67-90). New York: Palgrave Pivot.
Spence, C. and Velasco, C., (2018) On the multiple effects of packaging colour on consumer behaviour and product experience in the ‘food and beverage’and ‘home and personal care’categories. Food Quality and Preference.
Spry, A. and Lukas, B.A., (2016) Brand Portfolio Architecture and Firm Performance: The Moderating Impact of Generic Strategy. In Looking Forward, Looking Back: Drawing on the Past to Shape the Future of Marketing (pp. 866-867). Cham: Springer.
Talking retail, (2014) Cadbury launches new on-pack promotion. [online] Available from: https://www.talkingretail.com/products-news/confectionery/cadbury-launches-new-pack-promotion-25-03-2014/ [Accessed on 30/09/18]
Telang, A. and Deshpande, A., (2016) Keep calm and carry on: A crisis communication study of Cadbury and McDonalds. Management & Marketing, 11(1), pp. 371-379.
Thaichon, P., Jebarajakirthy, C., Tatuu, P. and Gajbhiyeb, R.G., (2018) Are you a chocolate lover? An investigation of the repurchase behavior of chocolate consumers. Journal of Food Products Marketing, 24(2), pp.163-176.
Wang, Q.J., Carvalho, F.R., Persoone, D. and Spence, C., (2017) Assessing the effect of shape on the evaluation of expected and actual chocolate flavour. Flavour, 6(1), p. 2.

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