Cadbury industry


Cadbury takes an important place in confectionary industry. But nowadays it faces three big threats: the high level of competition, the instable supply of ingredients and the negative change in customers' behavior. During analyzing marketing environment forces, marketing and pricing strategy was founded. Likewise distribution channels were studied.

Marketing strategy for Cadbury industry


During last years Cadbury Corporation began to lose their popularity on market. In this case it needs to solve a lot of threats not to lose their place in confectionary industry

Definition of Marketing

There are many definitions of marketing, but any of them doesn't give clear understanding of marketing concepts. So combining all definitions we'll get such one. Marketing is a process of planning and creation of a product and service and the sale of the product to the target customer group on the basis of the analysis of customers needs and interests, on the one hand, and promotion and pricing policy of the organization or individual selling the product or service, on the other hand.

Introduction of Product

Situation on market always changes and it's necessary for company their products or services to have competitiveness and demand. Cadbury is a giant in modern confectionary industry. The main product of this company is the chocolate bar, which was successfully marketed. However, in recent years, marketing position of Cadbury chocolate bars began to deteriorate. Cadbury concentrated on its commercial power and failed in conducting successful promotional campaign for its product. These led to fading away the company-customer relationships and losing leading position.

Situation Analysis -- Marketing Environment Forces Impacting Product/Service

Three main marketing environment threats, which Cadbury faces nowadays, are:

1) the high level of competition in confectionary industry ;

2) the instable supply of ingredients;

3) the negative change in customers' behavior.

Problem of growing and strengthening competition leads to increasing costs companies have to spend on innovations, promotion and other methods which can help them to maintain or improve their marketing position. The threat of the dependence on suppliers of ingredients from developing countries consists in unstable deliveries of cacao, coffee, and others ingredients, and without them there will be no output. Moreover, customer behavior is third important marketing environment threat which accentuate Cadbury's position. The majority of customers today prefer to buy healthy food, on the score of believing that chocolate can lead to multiple health problems. This threat deteriorate Cadbury's position too, and force company to make strategy which can change customers behavior.

Marketing Strategy: Target Market(s) & Positioning

At present Cadbury doesn't have varied segmentation and the same marketing mix is offered to many categories of customers. However, there are several target groups, which are recommended for getting more profit.

1) Demographically it can be youth target group (people 16-25 years old) and children target group (approximately 6-15 years). As for youth the reoffered successfully, but as for children it will be better to propose products fortified with vitamins and microelements.

2) In segmentation base by psychographic criteria proposing new products with minimal content of fat, light products and products without preserving agents and genetically modified products will gain more customers who care about their health.

3) Geographically, offering or redistributing already existing products on Asian market segment may be quiet profitable too.

4) Giving special discounts and propositions to loyal customers will help Cadbury to maintain present and attract new ones.

Product Overview and Strategies to Consider

The main goal of every proper marketing strategy consists in studying what, where, when and how much does consumers buy. Basing on the fact that Cadbury products are mainly chocolate and cocoa products is will be netter to base marketing strategy on the facts of their nutritional value which is kindly for health, because according to sociological researches the majority of people prefer to buy food products with nutritional labeling exactly for this reason.

Pricing Strategy

That factor that today customers prefer to buy healthy food make a low - pricing strategy based on advertising that chocolate is useful for health and company cares about their customers' heath, and because of this they can make prices on some types of chocolate lower then its business rivals price and in this case he will get more customers. This strategy is also based on philological aspect of people's mind.

Distribution Channels

Distributiоn, оr рlасеmеnt, is a fundamental part of marketing mix whish аffесts sаlеs. Cоnfесtiоnеry mаrkеt use all types of distribution channels from vеndоrs оn thе strееt tо соnvеniеnсе stоrеs, musеums tо vеnding mасhinеs, аnd lаrgе rеtаilеrs. It's suррly сhаins sраns thе glоbе аnd соnsists оf litеrаlly thоusаnds оf соntributоrs; сhосоlаtе рrоduсts stаrt with sugаr, соса аnd milk рrоduсtiоn frоm fаrms lосаtеd аrоund thе wоrld. However Саdbury's strаtеgy consists in buying intо оthеr rеlаtеd high grоwth sеgmеnts, where this company саn сарitаlizе оn its еxisting distributiоn сhаins and get оrgаniс grоwth, асquisitiоn оf nеw brаnds and еffiсiеnсy sаving


Cadbury condition in confectionary industry is hard. However, there are marketing strategies which can help it to come out victor.


Kent B. Monroe (1999) Pricing Strategy Audit. FT Prentice Hall

Kotler Ph. & Bliemel F.(1998) Marketing-Management Analyse, Planung, Umsetzung und Steuerung. Stuttgart

Please be aware that the free essay that you were just reading was not written by us. This essay, and all of the others available to view on the website, were provided to us by students in exchange for services that we offer. This relationship helps our students to get an even better deal while also contributing to the biggest free essay resource in the UK!