Feedback and Coaching Scenario
January 18, 2022
The exhibition on true to nature
January 18, 2022
Introduction
- The confectionery industry in the UK observes 94% of adults consuming chocolate
- 61% of consumers consume chocolate more than once every week
- Cadbury is working on their consumer segments and customer profiling
- Gather knowledge on the reason behind consumption trends
- Government bodies imposing restrictions on ingredient quantity to maintain population
- Led to induction of new strategies to be implemented in the confectionery production process by Cadbury
- Thus, internal analysis of Cadbury and ways of developing strategic adaptation, product marketing mix and sustainability analysis will be discussed
The confectionery industry in the UK has been operating with more than 94% of adults consuming chocolate among which 61% of consumers consume chocolate more than once every week. Thus, companies like Cadbury are working on their consumer segments and customer profiling to gather more knowledge on the reason behind such consumption trends. The restrictions imposed by government bodies on the ingredient quantity to maintain the health of the population has led to the induction of new strategies to be implemented in the confectionery production process irrespective of the market type of the industry. The given presentation will conduct an internal analysis of Cadbury and discuss ways of developing strategic adaptation, product marketing mix and sustainability analysis.
Internal Evaluation
Consumer perceived value of Cadbury
- The consumer perceived value of Cadbury is based on the different types of marketing activities
- Consumer’s preference in the UK for Cadbury is higher than other chocolate brands
- The richness in making the confectionery items is perceived
- Cadbury is one of the oldest and first companies to provide chocolate confectionery items increases the company value to consumers
- Influenced by the wide range of flavours available for the dairy milk products
- Grabbed attention of chefs into making Dairy milk products based dishes
- Company Endorsement with United FC increased its value as well
The consumer perceived value of Cadbury is based on the different types of marketing activities that have been taken into account by the company. The consumer’s preference for Cadbury is higher in the UK compared to the other chocolate brands that are available. Consumers perceive that the richness in the making of the confectionery items produced in the company is highly efficient in increasing their interest to buy the products at any point of time of the day. It can be noted that the valuation of the company among the UK consumers identifies that the company is highly productive in managing its marketing processes efficiently. Cadbury is one of the oldest and first companies to provide chocolate confectionery items, especially chocolate bars, has been able to maintain a lookout for the consumers’ interest. It is important to note that consumers and customers of Cadbury are highly influenced by the wide range of flavours that are available for the dairy milk products in the company. This has also grabbed the attention of chefs to indulge in baking products holding the Dairy milk products to be the key ingredients in their creations. Endorsement of the company onto different brands and organisations such as United FC has also allowed the consumers to perceive the company with more valuation in comparison to companies such as Hershey’s, Nestle and many others in the UK.
Motivations of the key customer part in the brand’s portfolio
- Cadbury targets consumers with an age range from 4 years to 50 years with all income ranges
- Major motivation factor based on an understanding of buying preferences
- Analysed in the UK, consumption of chocolate is majorly a psychological factor for target segments
- The company used its pricing strategy as a motivation strategy
- Packaging, marketing, customer service, product variation, marketing and presentation and external stimuli in the environment are other factors
- Operational sustainability has been a criterion to play with the psychological braiding process
The major motivation factor that has been successfully considered by the company Cadbury in maintaining their consumer portfolio is based on the understanding of the buying preferences that are projected by the customers. It can be noted that the company has successfully analysed that in the UK the consumption of chocolate is majorly a psychological factor that indicates that the company has been using its pricing strategy based on such psychological analysis. In addition, the company also identified that developing an analysis of the overall instances of customer trust-building and shopping experiences has been an effective motivation factor to increase their scope of the future buying process. This further demonstrates that the company holds pricing, packaging, marketing, customer service, product variation, marketing and presentation and external stimuli in the environment as well as operational sustainability as the motivating factor of the consumer segments in Cadbury’s portfolio. It is important to note that the use of the identified factors helps the company to maintain the interstate of the consumers that have been segmented based on demographics. Cadbury targets the consumers whose age ranges from 4 years to 50 years with all income ranges being considered in the segment.
Strategic adaptation of Cadbury overtime to meet the needs of the segments
- Cadbury increased its understanding of overall viability to maintain change throughout the operational process
- Successfully adapted to new trends based on demands projected by customers
- Initially, the company was focused on making chocolate-based drinks
- Transitioned into chocolate bars and later on to new products based on customer demands
- Improved the company’s orientation through the marketing process
- A new form of packaging for effective quality maintenance during transportation
- Community services of building an entire village for employees that served the consumer segment’s emotional needs
To meet the end of the consumer segment that has been adapted, Cadbury has been highly significant in increasing its understanding of the overall viability of maintaining change throughout the operational process with time. The company has successfully adapted to new trends since the beginning based on the demands projected by the customers. Initially, the company was focused on only making drinks based on chocolate which then was converted into making chocolate bars for the first time in the UK as the customer segments tended to increase their interest in new bar based chocolate products. Eventually, the company started to grow its business by aligning the operation and increasing the variation in their products simultaneously. One of the major adaptations that have been taken into account by the company is increasing its ability to improve the company’s orientation through the marketing process. This has further involved the use of a new form of packaging that did not allow the chocolate product to meltdown during summers and preserved the chocolate bars from rotting. Apart from holding initiation on meeting consumer targets, the company has also increased its ability in improving operational efficiency through community services of building an entire village for the employees that also served the consumer segment’s emotional needs.
Product marketing mix evaluation – 4P’s
- Product:
- Product variation maintained with prolific changes in Cadbury product range
- 95% of chocolate ingredient-based products ensure product quality
- Bournvita is an example of a completely different range of products influencing the dairy industry
- Price:
- Based on the customer segmentation
- Lower-income population to the elite societal consumers focused
- Economy pricing
- Skimming pricing
- Bundle pricing for festivities offers
- Place:
- Available in most of the retailers and online shopping outlets
- Holds a robust distribution channel network
- Promotion:
- Above the line strategy, below the line strategy and digital channel used as a strategy
- Advertising campaigns being integrated into the marketing process
- Vernacular communication with the consumers
The understanding of the company’s products can be further initiated and more profoundly generated by conducting a marketing mix evaluation using the 4Ps of marketing analysis tools.
Product: Cadbury has initiated a successful undertaking on the needs of the customers by applying a branding portfolio that ensures that the products being developed are focused on addressing variation as identified by the customers. Cadbury has maintained prolific changes in their product range and further indulged in not making 95% chocolate-based products which have ensured product quality as well. The company has indulged in developing different categories of products, which are itself a separate brand from Cadbury original dairy milk products such as Bournvita. This has helped the company in ruling the chocolate industry on a wider note.
Price: Based on the customer segmentation, which indicates that the company targets lower-income population to the elite societal consumers making the pricing strategy to be based on economical pricing strategy. Apart from economy pricing, the company is also involved in using skimming pricing and bundle pricing strategy that helps the company to increase its scope of sales through different offers presented to the population during festivities.
Place: Cadbury has ensured that it is available in most of the retailers and online shopping outlets irrespective of the primary product that is being sold in such outlets. This indicates that the company holds a robust distribution channel network that helps in making the product available everywhere leading to higher sales in the UK and an increased customer base.
Promotion: Cadbury uses the line strategy, below the line strategy and digital channel as well as traditional methods of promotional techniques that allows successful advertising campaigns to be integrated into its marketing process. The company has also engrossed itself with new brands and organisations for the presence of Vernacular communication with the consumers.
Sustainability analysis – triple bottom line analysis
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- Profit:
- Net revenue of $26 billion for the year 2018
- A leader in the confectionery industry and chocolate industry
- Product quality is developed with affordable pricing
- A strong distribution channel and a powerful value chain increased its scope of development
- Non-profit organizations to source their cocoa ingredients serving communities
- Profit:
- People:
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- Various community and people services undertaken
- Used campaigns and programs for human rights such as Cocoa Life and Harmony
- The company follows their separate Human rights statement, CSR guidelines and Code of Conduct to meet individual human rights
- Planet:
- Partnered with the World Wildlife Fund
- The raw materials supply chain has been focused
- The initiative was taken to maintain
- 50% reduction in carbon emissions
- 10% reduction in the standard product packaging system
- 25% reduction of carbon emissions through the gift packaging system
The sustainability analysis of Cadbury can be conducted by means of using the triple bottom line framework, which will help in measuring the sustainability of the company in terms of three categories like the social, environmental and financial analysis.
Profit: Cadbury has been attaining net revenue of $26 billion for the year 2018 making the company a leader in the confectionery industry and chocolate industry. The company has an emphasis on developing such revenue rates by ensuring that the product quality is developed with affordable pricing making the products and services to be majorly consumer-friendly. It has developed a strong distribution channel and a powerful value chain, which ensures the availability of the products globally without any restrictions. It has been using different non-profit organizations to source their cocoa ingredients increasing the reach of community services.
People: The Company has indulged in various community and people services from the beginning starting from developing a township for its employees with the new campaign of Cocoa Life providing benefits to the farmers and cocoa-growing communities globally. Harmony is another such program that is indulged into making a positive impact on the suppliers of raw materials to the company. The company also follows their separate Human rights statement, CSR guidelines and Code of Conduct to meet the human rights of the individuals associated with the company.
Planet: Cadbury has collaborated with the World Wildlife Fund to ensure that assessment of long-term environmental sustainability risks is being carried out focusing on its raw materials supply chain. The company has taken the initiative of maintaining a 50% reduction in carbon emissions, a 10% reduction in standard product packaging system and a 25% reduction of carbon emissions through the gift packaging system being used.
