Cadbury, formerly known as Cadbury’s, is a British multinational sweets and chocolates company currently owned by Mondelez International (originally Kraft Foods) since 2010. It is the second largest confectionery brand in the world. It is internationally headquartered in Uxbridge, West London, and operates in more than 50 countries worldwide Cadbury is most famous for its Dairy Milk chocolate, the Creme Egg and Roses selection box, Gems, 5 Star. Perk and many other products.
As can be seen, Cadbury was formed by John Cadbury who sold cocoa and drinking chocolate in 1824. The Cadbury manufacturing business was born in 1831 when John Cadbury started producing on a commercial scale. In 1842, John was selling no less than 16 varieties of drinking chocolate and 11 different cocoas. In 1875, Cadbury produced their first Milk Chocolate Bar. In 1897, Cadbury Milk Chocolates launched. In 1905, Cadbury Dairy Milk was launched. In 1906, Bournville Cocoa is launched. In 1908, Bournville Chocolate is launched. On June 19th, 2015, Cadbury foundation marks 80 years. Cadbury started from candy bars, chocolate bars and some more products but to improve sales and therefore their profit margin, they decided to add variety and diversity to their products referring to the introduction to the new Cadbury products such as Ice-Creams and Beverages like Freddo Drinking Chocolate and Bournville Cocoa.
This extended essay aims to answer the question “To what extent has Cadbury’s product diversification thereof been successful to improve their sales”
Cadbury’s Vision : “Working together to create brands people love”
Cadbury’s Mission statement : Says simply, ‘Cadbury means quality’. This means Cadbury’s reputation is but upon quality.
Cadbury’s Mission statement of their products : ‘To provide our customers with a tempting and exquisite taste” as Enticing Treats means a mouth watering treat which is simply irresistible.
A Product diversification strategy is a type of business advancement. Independent ventures that execute this procedure can diversify their product range by modifying existing items or adding new items to the range. This technique gives chances to develop/grow the business by increasing sales to existing clients or entering new markets.
Cadbury’s product diversification suggests that it is seeking to reduce the cocoa based dependance all over the globe. At the end of January, 2006, it launched into the chewing gum market with Trident. These launches and product diversification are part of a clear strategy set out by the company. on their full year results in 2006-2007, Cadbury outlined its goal “innovate and share our products and technologies across religions”
‘One of the reasons it has performed so well in Ireland is because people think healthier confectionery is sugar-free, but the Natural Confectionery Company’s positioning is slightly different in that it is natural,’ says Jonathan Thomas, principal market analyst at research firm Leatherhead Food International.
MARKETING STRATEGY MODELS : Cadbury strategically applies marketing models as a combination of activities to sell its products to the end-customers. Huge Variety of marketing activities requires appropriate management of to successfully and effectively promote their products on the confectionary markets through promoting channels. In its choice of appropriate marketing model, Cadbury emphasises on the following strategic issues:
Connecting Cadbury with customers;
Performing sales, promotions and advertising;
Impacting Cadbury’s pricing strategy;
Influencing product strategy through willingness to stock, branding policies, and profit customising.
The selection of the most advantageous marketing strategy for Cadbury depends on a number of factors. Thus, marketing strategy should be perceived as the designated action plan which will help Cadbury to reach its strategic aims and objectives. Cadbury’s long-term marketing strategy (based on Ansoff matrix) concerns the launch of new chocolate brands and their promotion on the global markets. Alternatively, the company should win more international markets through the manufacturing and exporting new products (e.g. cereal bars). Further recommendations concern the appropriateness of the strategic choices to be made by Cadbury in the nearest future
Marketing strategy is an arrangement of activity which is utilised by numerous organisations around the globe, which enables the business to meet its aims and objectives, it can likewise help a business when launching a new product as it recognises which distinctive procedures/strategies would be best to utilise. Marketing strategies can be part into two principle classes which are:
Short-Term strategies help a business to concentrate principally on the four Ps: Product, Price, Place, and Promotion which are key to all organisations, as these four features are the principle things which help a business to accomplish goals and achieve objectives if they are utilised correctly. On the other we have long-term methodologies/strategies which are used to design the future activities of a business, this can incorporate creating tables, for example, an Ansoff Matrix which helps a business to decide on numerous things, for example, whether to launch a new product or to improve previous products overall making the right decisions on which type of strategy to use is most effective, particularly on account of Cadburys as it chooses how to launch a new cereal bar, to guarantee that they achieve maximum sales.