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Transcript of Marketing presentation
growing Executive Summary Analysis PESTEL Recommendations Future Projection Success of Sharing Format "Staying in " is the new "going out" Chocolate confectionery & Sugar confectionery sector
are expected to grow stronger. Sugar confectionery is growing more, as healthier replacements for chocolates. Brands capitalising more on holidays and events Facing tough economics times, consumers spend more time at home while sweetening their experience by sharing confectionery. - Scale and Scope of marketing activity has increased. Halloween Christmas Easter Royal Wedding - Easter Confectionery were on retail shelves 4 months
prior to Easter season. Forms of chocolates sold Countlines, is the most popular form of chocolate sold --- Impulse purchase Cadbury (Current Situation) 4 Ps Market Share Marketing Undifferentiated Marketing Social Media Very active on social media Campaigns utilize major platforms Differentiated Marketing Chocolate for Women, Crispello Low calorie chocolate bar Targets diet-conscious female Cadbury: leader chocolate confectioner in the UK with a 31% company shares. 2012: very successful year for Cadbury with the launch of Cadbury Dairy Milk Bubbly chocolate bar in January, followed by the launch of Bitsa Wispa sharing bag in April 2012. Product Convenience product: low involvement (system 1 decision
making), impulse purchase Consistent packaging design since 2003 with special edition exceptions Political Health issues
Fight against obesity debate
Health lobbyists criticism against heavy promotion and sharing format encouraging large consumption Economical 0.8% growth forecast in UK population from 2011 to 2015: potential increase of consumer base.
Government's expectations of drop in inflation in the next two years. Co-branding strategy with Oreo cookies and McDonald's McFlurry Co-branding strategies
with Oreo, McDonald's and Philadelphia Social Snacking trend
Rise in consumer health-consciousness
Functional food trend Technological Influence of technological factors such as improvement of equipment allowing faster production. Ecological Palm Oil issue
Organic debate Legal Price Legislation restraining sugar imports through quotas
"Fat tax" debate Current prices of chocolate bars:
Nestlé (100g) : £0.80
Galaxy (114g) : £1.00
Cadbury (100g) : £1.00
Milka (100g) : £1.19
Lindt (100g) : £1.83 Cadbury offers a competitive price in the chocolate bar market, having even competitors like Lindt that nearly double its price. This proves Cadbury’s claim to be an “affordable luxury”. SWOT Place Strengths Strong market position
Wide geographical presence
Heavy revenue growth Weaknesses Intense price competition
Product recall in the past years
Poor exploitation of premiumisation trends Porter's 5 forces Opportunities Threats Possible customization when purchased online Adapting to consumer health-consciousness: development of functional confectionery
Expanding in emerging markets Increased competition, in particular with 2008 merger of Mars and Wrigley
Obesity concerns: governments and consumers increasingly concerned about rises in obesity level around the world
Cadbury stores Wholesaler Retailer Final customer Cadbury aims to reach all potential customers who especially fit in the impulse segmentation Multichannel distribution strategy to take the product near to the consumer making it accessible wherever possible Great position in "instant consumption" channels (gas stations, vending machines, etc.) Rivalry among Competitors Bargaining Power of Suppliers Bargaining Power of Buyers Threat of New Entrants Threat of Substitutes High Many local & multinational competitors Low Many suppliers
Undifferentiated raw materials Moderate Low Involvement Product
Large numbers of mass quantity
buyers High Consumers may switch to "healthier" forms of snack. Low High initial capital needed. Cadbury dominates with significant economies of scale. Promotion Market Trends Cadbury Analysis Recommendation Main Competitors 2nd chocolate confectioner in the UK market (Galaxy, Maltesers and Mars)
Well-established image in consumers minds and strong advertising presence for its products Conventional advertising
Cadbury World visitor attraction
Main social media platforms + Joyville (own site) 3rd chocolate confectioner in the UK market
Directly competing Cadbury with its different brands such as Aero, Crunch, Wonka or Kit Kat. Event Sponsorship Consumer segments Financial Break Segment Impulse Segment Take Home Segment Gift Segment Increasing distribution costs
Rise in commodity prices Busy professionals or students who enjoy chocolate while taking a break Job cuts to approach global recession Spontaneous consumers at public facilities such as at public transporation, school, supermarkets, corner shops... Parents who buy snacks for children at supermarkets. Gift for children's birthday party Advertising Health Conscious Consumer Take-home segment "Deliciously Healthy" Refining the tradition of healthy chocolate that began by using fresh milk. "Dairy Milk": the most well known food brand in UK Significant customer base is already there Consumers concerned about their health (no break or impulse buyer) Product Take more time to decide on food purchases (system 2 decision making) Tablet Form Suitable for sharing at home Great for parents who constantly are conscious of their children's health. Product Once the decision is taken, consumer prefers to take bigger amounts of product home to share out. Quality: Dark Chocolate
(for eating) Already well known as healthy chocolate, due to higher concentration of heart-healthy cocoa flavanols Price Same price as Dairy Milk Consumer decision purely based on healthiness Distribution Reduce current multi-channel distribution by focusing only in retail supermarkets + Expanding distribution through WholeFoods. Communication Use of cocoa handling and processing procedures that preserve cocoa flavanols over 1 millon fans Health-conscious consumers are everywhere International Market Need to address through a channel that reaches all demographics North American consumers particularly marked by obesity and health concerns Mars already launched in 2005 its healthy chocolate CocoaVia Communication Message targeting health conscious adults in general, but also parents concerned with their children's health in particular. Future Projection Cadbury, especially with its "Dairy Milk", enjoys significant recognition as the brand for delicious affordable chocolate.
Using this brand power, combined with the current market trends concerning health, Cadbury is in the best position to extend their product line to meet the demand generated by the trend. Health Benefits Chocolate is likely to be the next topic in nutraceuticals Increasing popularity of Dark chocolate as consumers become aware of its health benefits for the heart and its richness in antioxydants cf. Nestlé investments for a new industry between food and pharma "Cadbury's means quality: this is our promise. Our reputation is built upon quality: Our commitment to continuous improvement will ensure that our promise is delivered" Mission Statement Most trending segment that love to share at home, party, etc... over 1 millon fans Brand prism Development Strategy Brand name Product category Create product and brand awareness + trial Immediate effects: costs BUT Long-term benefits because of early arrival in a growing market Gradual word-of-mouth marketing among brand advocates (pioneers) Financial Projection Cost introduced in 2012 to 2013 due to product extension & launch UK confectionery market is expected to grow in the coming years. ATC will decrease gradually to constant amount as we gain sales volume due to increased product recognition. Product Launch ATC lowers R&D + Marketing +