Cadburys mission statement says simply: Cadbury means quality’; this is our promise. Our standing is build ahead quality; our promise to continuous improvement will guarantee that our promise is delivered. The organization makes the maximum consumption of the competencies and correlates them to new opportunities in the market. Resources and capabilities are the building blocks on which an organization builds and executes a value-added strategy. (Superbrands 2012)
Characteristic of this mission statement:
Cadbury is along with the biggest supplier of chocolates internationally we can say that this mission statement is realistic because if we see the quality and day to day improvements easily show that Cadbury’s have real mission statement.
Setting company’s Objectives and Goals:
Cadbury successfully turned its mission statement into its overall objectives and goals. Cadbury says Cadbury is the name of quality and the Cadbury dairy milk chocolate and also different products is the biggest example of it. And it says our commitment to continuous improvement and the demand and customer’s satisfaction shows that its products successfully fulfill the needs wants and demands by continuous improvement in the features of products.
In short we can say that company turned its mission statement into practical form and set its overall objectives and goals as Cadbury do and now a day become a market leader. (Blogspot, 2012)
Vision Statement:
Our objective is to deliver superior shareholder returns by realizing our vision to be the world’s biggest and best confectionery company. At the heart of our plan is our performance scorecard, delivered through our priorities, sustainability commitments and culture Cadbury plans to “ deliver superior shareholder returns” (Cadbury plc, 2008) by measuring its financial progress in the areas of growth, efficiency, capabilities and sustainability from 2008 to 2011 (Cadbury plc, 2008). Cadbury’s set out a vision to achieve “ Cadbury in every pocket” dream by increasing the penetration of chocolates. (Scribd, 2012)
Marketing Objectives:
Market Share- Cadbury Confectionery Ltd is the most dominant player in chocolate confectionery in New Zealand. It has 52 % share in the market. But now its main objective is to increase its market share from 52% to 60%. For this Cadbury will now introduce more products to cater the needs of the different age sectors of the people by serving them with best quality and taste with best prices too.
Growth- Cadbury has many factories for different products. Its main factory in New Zealand is in Dunedin. But nowadays the people are getting health conscious and they are getting less attracted towards the sugar products especially the children and oldies. So to satisfy their need and gain their attentions Cadbury will introduce a sugar free chocolate to resolve their unsatisfactory or unnecessary attentions towards sugar products. So to get this in existence and competition Cadbury will produce or build up new factories for sugar free chocolate at Dunedin. Cadbury will invest NZ$ 70 million to turn Dunedin into a specialist factory and introduce a sugar free chocolate manufacturing plant and secure manufacturing and jobs in New Zealand.
Unit Sales- The staggering 120 million of Chocolate bars are sold every year and out of it 60 million of bars are of Cadbury and it uses 33000 liters of milk is used in the everyday production of chocolate at Dunedin chocolate plant. But now Cadbury`s main aim is to keep the unit up to 100 million every year.
Sales $ %- Cadbury has sale of $120 millions in the last fiscal year. But now it is launching Cadbury Dairy Milk Lite, so its main aim is to take the sale up to $150 millions in the upcoming years.
Profits- Cadbury always been there in market for the customer. So cater the need of all the group ages it’s taking this step and launching sugar free chocolate for the kids sector, middle age sectors and oldies as well. Also it will be beneficial for the diabetic patients and for those who are very health conscious as this sector people are increasing day by day. So Cadbury believes that it’s a possible.
Marketing Strategies:
Marketing Objectives of the company has a straight focus on the customers demand and cater the need of all age sectors customers and get the company at the top peak of all confectionary companies and remained stand on the first among all the chocolate companies by servicing best quality for which Cadbury is known for.
Target Sector- The main target of Cadbury will be Kids although the other age sectors people can eat it.
Children (more Crazy)
Youth (Gift)
Parents (Care of own children)
Older Age (After Having Dinner or Lunch)
Promotions-
Events( Christmas Celebration, Easter Shows, annually)
Magazines( Women`s Weekly, 6 months)
Websites( Facebook, ongoing)
Posters(Retail Outlets, ongoing)
Television( TV 2, Sticky TV -1 Year and TV 3-Saturday Night Movies, 1 Year)
Place-
Major Super Markets( New World, Countdown, Super Value Market, Pak n Save)
Service Stations
Medical Clinics , Rest Homes
Pharmacy
Dairy’s and convenience stores
School Canteens
Price-
Price is an important element of the marketing mix. Initially Cadbury Dairy Milk Lite will come in the Market with an introductory price of 99c . This price will be valid for 3 months. Then the price charged for a chocolate bar can determine whether a consumer will buy it and the level of sales achieved can determine whether or not Cadbury Schweppes will make a profit. At the end of the introductory offer, the new price will be set between $1 and $2 depending on factors such as the economy, what competitors are charging, the stage reaches in the products life cycle and above all what price the market will bear.
Products-
Bars and Toffee Milk
Family Packs
Packing and Branding
Square and Blocks
Cadbury will first introduce its Cadbury Dairy Milk Lite in Bars and Toffee Milk for all age sectors people. After the 3 months Cadbury will launch Family Packs or can say Gift Packs so that it can be given as a presents at wedding ceremony, birthday parties and on every happy occasions. Then within six months Square and Blocks will come in existence in new shape of Cadbury with a same packaging and branding.
Communication/Co-ordination of marketing objectives and strategies:
Departments-
Marketing and Sales
Finance
Administration and IT support
Operations
Research and Development
Production
Human Resources
Many of these all blend it together on the area of their focus but still all play an important role in running of the business. The three departments that I will be focusing on are Marketing and Sales, Operation and Administration and IT Support.
All the departments are allotted by different responsibilities regarding their own fields. After the Strategic Planning all the departments play their own vital role to achieve success. So the Marketing development department will have different departments which are mentioned below in a table with their way of communicating through which they will share their entire information.
Departmental Table:
S. N
Departments
Job
Communication Channel
1.
Marketing and Sale
Promote the brand and product and analyzing the sale trend and prediction of future market and sales
Internet Conferencing
2.
Finance
Passing the budgets and has full control on the cash flow of an organization
E-mails
3.
Administration and IT support
Promote and advertise the market product on the general website of the organization and also on other social networking sites like facebook and many others. Also deal with clerical work, health and safety and software support, electronic transactions as well.
Internet
4.
Research and Development
For new packaging design
Web Conferencing
5.
Production
For the need of increased productivity and manufacturing of a product at the given time.
Traditional Mailing
6.
Operation
Deals with building lands, equipments, people, material.
E-mails
7.
Human Resources
Hiring and firing new IT staff and brand ambassadors or employees
E-mails
Marketing and Sales:
The main things that are dealt with in the marketing and sales are:
Marketing Research both Primary and Secondary research.
Promotion
Advertising
Sales
Marketing and Sales play a big role in the business and help a business a lot in the completion of its aims and objectives. The aims that they help with are to introduce new products successfully to its customers, to have a higher quality of products than its competitors and to make a profit on sales and improve the quality of chocolates that are not selling well. The marketing and sales department does this by their great promotions, advertising and selling techniques.
Sale departments deal with the sales of the product. Every concern which produces something to be marketed must determine upon certain sales policies.
People Relation:
PR concerns the total communications of your total organization/group of organizations.
It is unlike advertising, where you are sharing skills of planning, creative and media buying teams with an out-sourced agency. PR calls for a very intimate understanding of the total inner workings of your organisation at all levels – workers to Board levels. It requires the integration of knowledge and communications.
It is not a part time job for a Marketing Services Manager. If it is to work and serve the larger objective, the PR department should be independent, servicing others like production, personnel, marketing, finance, corporate agendas. Therefore, the PR Head should be part of the top management team- reporting directly to the CEO. He also needs to share everyone’s confidences. The PR department of Cadbury’s played a very effective role in managing the reputation and keeping up the goodwill of the company
Public relations include ongoing activities to ensure the company has a strong public image. Public relations activities include helping the public to understand the company and its products. Often, public relations are conducted through the media that is, newspapers, television, magazines, etc.
Production:
As the sale department discloses the future sales trend, the marketing department will send the guidelines to the production department. These guidelines will include the future course of action for the manufacturing of the new Cadbury Product, Cadbury Dairy Milk Lite, associated with the timelines. The responsibility of the departments is to communicate the objectives and plan related with the manufacturing of Cadbury Dairy Milk Lite. We have chosen the traditional mailing system. Although it’s a slow way of communicating, but it is most effective for record keeping as the marketing manager has to actually sign and confirms that it is the plan he has sent to the manufacturing and production. The production department will the confirm that the plan has been received in written and will reply the confirmation in written form to the marketing.
Research and Development:
Research and Development is nowadays of great importance in business as the level of competition, production processes and methods are rapidly increasing. The work of research and development involves developing new products and improving current ones through various forms of research. New products and improvements to current products are needed to meet the requirements of customers, taking into consideration changes in consumer demand, seasonal sales changes and the availability of new materials and technology. The research and development department must also be aware of new materials and technology and products that effects the consumer`s requirements and possibly the future of their customers’ needs. The Science & Product Development teams significantly influence the development of strategic plans and initiatives, leading cross functional teams to resolve technical and business challenges. They are relentless champions of continuous improvement, identifying new programs and insights to benefit the business, significantly contributing and influencing the direction of strategic initiatives to leverage us to a sustainable competitive advantage. (Itsyourkindofplace, 2011)
This department will sponsor Christmas celebration by making a different poster of Cadbury with a picture of Santa Claus on it sitting with different Cadbury product on which there will be written “ JOIN OUR CHRISTMAS CLUB FOR CADBURY’S CHOCOLATES”. It’s a responsibility of this department to accomplish the work at time and will approved first from the marketing department. This will advertise in the second phase marketing pattern in which the prices and promotions will be differentiating from the first marketing pattern. Also the Billboards and posters will get designed and edited by this department. The billboards and posters will advertised in the first phase on school buses, delivery Trucks and other retail outlets
Web conferencing and E-mail is the main communication channel as it is easy enough to send pictures, visuals through this mode.
Human Resource:
Marketing Department will need the help of Human Resource department. HR department will deal with the factories demand for:
1. New staff with a good skill level or possible past factory experience.
2. Train new/current staff to be able to use new equipment correctly and efficiently that is IT staff so that the people can come to know about the products and also the organisation on the web site and other social networking sites.
3. Help current employees with any problems they may have in their work place. (123Helpme, 2011)
Communication with this department will be done through E-mails. The reason for opting this mode of communication is that it is first very easy and simple to use. It is the fast ay of communicating in efficient way and is cheap enough with its versatility that is picture or other files can be sent too very easily.
Finance:
The financial department of this business will responsible for organizing the financial and accounting affairs including the preparation and presentation of appropriate accounts, and the provision of financial information for managers. The main areas covered by the financial department will include keeping records of the purchases and sales made by a business as well as capital spending. They will also create a balance sheet and profit and loss account. The wages section of the finance department will be responsible for calculating the wages and salaries of employees and organizing the collection of income tax and national insurance for the Inland Revenue and will also take care of technical details of how a business raises finance.
Communication channel of this department will be E-mail. Because it’s a best way to keep the record safe in a mail and easy to handle. (Businesscasestudy, 2012)
Administration and IT Staff:
The administration and IT department helps the business to run smoothly. So this department will deal with a clerical work like collecting and distributing mail, keeping records, organizing meetings and responding to enquiries as well. Cleaning, Maintenance, Health and Safety and security will also depend on this staff. They will also compact with software support, electronic communications and electronic transactions. It`s this department duty to promote the Cadbury Dairy Milk Lite to the Social networking sites like the original website of the company and on Facebook such entertainment sites where all the people and especially the youth have got attached the most. (Helpme123, 2012)
Communication mode of this department is internet as majority of their work depends on the internet so it`s easy to cope up with different technical problem and easy to promote and store data using internet.
Operation:
This department will focus on supporting front-line production with the tools and techniques needed to drive continuous process improvement. This team will work to ensure that all Cadbury manufacturing performance measurement systems will be in place in order to ensure compliance. (Cadbury, 2012)
They will use E-mail as their channel of communication. It`s easy to get store the previous pattern and to find out new materials, equipments on net and then will easy to send files, documents to the marketing manager immediately.
Marketing Mix Tactics-
Price:
Price relates to the pricing strategy for your products or services. Pricing should take into consideration how much the market is prepared to pay (market demand pricing) and mark-ups that are needed to cater for overheads, other costs and profit margins. The provision of credit to clients, the range of credit cards accepted, volume discounting and incentives for early payment are other things to consider in your pricing strategy. So Price is the only marketing mix on which the company turnover depends. It can affect the sale percentage of an organization.
As first Cadbury launches its Cadbury Dairy Milk Lite in the bar and toffee milk form. So first the toffee milk will be in pack that is 2 toffee milk in 1 pack of 99c and bar will be of $1. 99 with 50g. As new machinery will be there so it’s easy and comfortable for the production. As mostly the bar chocolate rates are more than expected so it will be beneficial for a Cadbury Market to launch a bar chocolate at reasonable price. For this Cadbury Dairy Milk Lite will come in the Market with an introductory price of 99c . This price will be valid for 3 months. Then the price charged for a chocolate bar can determine whether a consumer will buy it and the level of sales achieved can determine whether or not Cadbury Schweppes will make a profit. At the end of the introductory offer, the new price will be set between $1 and $2 depending on factors such as the economy, what competitors are charging, the stage reaches in the products life cycle and above all what price the market will bear. For Toffee milk as mentioned above the inductor price will be 99 c on 1 pack containing two toffee milk. Then onwards in the next phase of marketing it will remain same on 99c but with some discount like 4 packs for 3 dollars up to December 2012.
In the next 3 months after launching of bars and toffee milk Family pack will come in the market in the size of 350g with price of $4. 99. Then within the 6 months blocks will be in existence in 200g with $2. 99 and get 2 blocks in only $ 4. 99. It lasts for 3 months and then price will be change depending upon the marketing sale.
Place:
Place plays a vital role in the marketing and if it will differs from the objective that is what a company needs to do and how to increase a sale and what`s the target market as well then it can badly affect the organization.
As it is well known that Cadbury is the big and number 1 company in chocolate making and now exists under the Kraft food which has a largest confectionary share in the whole market so it will not be difficult to find a place of its marketing. But as Cadbury Dairy Milk Lite will be there so new place will also be entered in its market that is medical care centre like pharmacy, clinics, school colleges etc. Dunedin is the biggest factory of Cadbury chocolate production. So all the production will occur and maintain here and then it will be distributed to rest of the places like Super Markets like Countdown, New World, Pak n Save, Dairy Shops, Service Stations, School and College Canteens and on Pharmacy as well. It will be openly distributed to all parts and zone of New Zealand.
Product:
Cadbury has many products in his market. All satisfy the need of customer. So every company has a goal to attract a different target sector customer. In other words Demographic factor is an important one if any organization launches a product. So production of the product should depend on this factor.
Cadbury, from his very beginning, has a same focus on his demography factors. Cadbury focuses on all the people whether it’s a child, youngsters, teenagers or oldies. Now Cadbury will be launching Cadbury Dairy Milk Lite which is sugar free chocolate. As the There is some differentiation targeting as a variety of Cadbury products are available to cater for the individual needs of different groups of customers. But nowadays the people are suffering with diabetes. So the diabetic segment people started use of less chocolate or sugar free thing.
Diabetes: Diabetes occurs when there is too much glucose (sugar) in the blood. Over time, this can cause damage to many parts of the body. Diabetes is common – about 170, 000 people in New Zealand have diabetes and rising rapidly as more of us are getting fatter. (Healthnavigator, 2012)
Also the kids are very fond of eating chocolate so it`s always come in their mind about Cadbury. But some of the parents think that their children can suffer from disease like diabetes and teeth problems. Same the oldies find something sweet after the dinner but they can`t just because of sugar problem.
So to satisfy the need of these people Cadbury will launch of a new offering ‘ CADBURY DAIRY MILK LITE’ to satiate the craving for ‘ Something Sweet’ for people with diabetes. This special offering from Cadbury is sure to bring joy to millions of people, who can now enjoy the authentic taste of milk chocolate with `No added sugar. Cadbury Dairy Milk Lite contains a sugar substitute called Maltitol, which ensures the product has a low glycemic index. Cadbury Dairy Milk Lite – per 100g:
1690 kilojoules
29. 7g fat
7g of carbs
Ingredients: Isomalt, polydextrose, full cream milk powder, cocoa butter, cocoa mass.
Promotion and Distributional Strategy:
Promotion is one of an important part of marketing mix. It is just a link between sellers and buyers for the purpose of influencing. Promotional Strategy is of two kind Pull and Push.
Push promotional strategy makes use of a company`s sales force and trade promotion activities to create consumer demand for a product. The Producer promotes the product to wholesalers, the wholesalers promote it to retailers and the retailers promote it to consumers.
Pull promotional strategy is one that requires high spending on advertising and consumer promotion to build up consumer demand for a product. If the strategy is successful, consumers will ask their retailers for the product, the retailers will ask the wholesalers, and the wholesalers will ask the producers.
Advertisement on Delivery Trucks and School Buses-
The primary goal is to get attracted the school going students and other people about this launching of new Cadbury Dairy Milk Lite by advertising on the School buses and the delivery trucks as well so that they will remain stick to the Cadbury brand in future as well.
The advertisement will be posted on the Delivery trucks and school buses from the first stage of the marketing and it will remain ongoing. 10 to 12 best and big educational institutes and schools will be targeted. Majority of students opt buses because it’s the simplest and the reliable way to go to schools as bus fares are very less and they feel comfortable rather than by going to school on cycle or foot. Delivery trucks are always on the route so it will also be a best way to aware people about the new product of Cadbury as when the bus will pass into the traffic a big advertisement of Cadbury on it will become a source of attractiveness and will make the people think that what`s this big banner of?
Advertisement in Magazines (Women`s Weekly)-
This will be the best way of advertisement of Cadbury Dairy Milk Lite to gain the attention of women. Women`s Weekly is the only best Magazine for women in which they can see their own needs and requirements. As women are very health conscious so they all always in search of such a product. So this will be a best way to aware them about this new sugar free chocolate which will help them in many ways. Like first it will cater their need of taste. Also it is sugar free. Those ladies who usually have great care of their children who eat more sweeten chocolates, they will become satisfactory from the diabetes and teeth problem of their children. So this advertisement on the Women`s Weekly magazine will remain for 6 months.
Advertisement on Social Networking Sites (Facebook)-
In this advance era everyone is now interlinked with Internet for different reasons. So social networking sites are now becoming a focus or centre point of promoting different new things by the advertiser. Many companies are using internet and promoting and advertising their products. Cadbury has chosen a Facebook site and the official site of Cadbury mainly to advertise its new product Dairy Milk Lite, which is a sugar free Chocolate whose target sector is kids although middle age sector and oldies can make use of it as it’s a sugar free so best for the diabetic people as well. For this Cadbury is making an advertisement poster which will be shown on the side of the Facebook site page. In this Cadbury Dairy Milk Lite chocolate is in the middle. One side of it is a child who is eating chocolate and Cadbury is coming in his mind at every bite and on the other side a doctor is standing with a Cadbury sign on his stethoscope and there is written on the top right corner that `Recommended By Doctors, Dairy Milk Lite`. On the bottom of the picture there is written that ` First time in Cadbury world……. Sugar Free Dairy Milk LITE`. Mostly kids are now attached with these sites that’s why we choose this site with the Cadbury`s main official site.
Posters and Bill boards-
Cadbury has also decided to advertise its New Product Dairy Milk Lite using billboards. As it’s a good way to gain the attention of the customers who is driving on the motorway and once they will see a big billboard of Cadbury, they will think of it once that what’s a new Product exists now. Also bill boards in the town centre gain the attention of the people.
If we talk about the Posters Cadbury will advertise it by posters as well which will be pasted at all the dairy shops, retail shops, grocery and big malls as well. In this poster there is a kid who is eating chocolate and when he takes a bite of his chocolate then at every bite he dreams off Cadbury Dairy Milk Lite. In addition to this there is written that the sugar free range Dairy Milk Lite for every 1 with a one more text First time in Cadbury World. With this theme of poster, all the kids will get attract to this new product and also the other age sector will try it.
Sponsorship to School Fundraising-
This is another interesting way of promoting Dairy Milk Lite. By doing this firstly the company will gain profit by distributing some product stock to school on some less price. By doing this, school can sell it via fundraising scheme on price whatever they want to fix. This will help the school as well and also Cadbury will advertise their products. In this fundraising scheme kids will sell the products while visiting the homes and collect money for school. For every five packet school will get one packet of Toffee milk free and also kids will be willing to buy these products as well because of its sugar free term.
Sponsorship to Christmas Club Celebration-
Cadbury’s is the bestselling chocolate company in New Zealand. The “ Join our Christmas club for Cadbury`s chocolates posters is from the year 1935. The advert has Santa Claus on it, by using Santa Claus it means that the poster will appeal to children a lot more than it would if Santa will not included in the poster, the idea is that children will see Santa in the poster and then want the chocolate for Christmas. In the poster there is also several Cadbury’s products being shown, this means that many of the products are being promoted rather that just one it also shows the variety that Cadbury’s sells. The writing on the Poster says “ JOIN OUR CHRISTMAS CLUB FOR CADBURY’S CHOCOLATES“
Notice how all of the letters are in capitals and the words “ Christmas Club” and “ Cadbury’s” are larger than the rest of the words to make them stand out so that attention is drawn to those words more than the others. The target audience for this poster will be everyone. The Santa Claus image makes the poster attractive to children the bright colours may also attract the attention of youngsters, and the fancy and attractive packaging of the boxes of chocolates would appeal to adults as the packaging looks attractive and it may appeal as a Nice Christmas present for a adults to buy for each other.
The message behind this poster advertising Cadbury’s Dairy Milk Chocolate is that, by using Santa in the poster it will promote the idea of Cadbury`s chocolate being product that one can give away it as a Christmas present, also because Santa Clause is such an ionic figure to children, if children will see a poster with Santa on it as they usually do, they will immediately be intrigued to know what the poster is about therefore I think the message of this poster is that one should buy this product because Santa likes it , so they will like it too.
Others-
There are more ways of promoting and advertising which Cadbury has chosen to launch Dairy Milk Lite. Television is the good way. Like currently Cadbury is sponsoring the Tv2 etc. So It will remain same, but in addition to this now Cadbury will sponsor Sticky TV, TV3 Saturday Night movies as well. It will last for 1 year from the beginning.
Marketing Action Plan:
Period1 (September 2012 – November 2012)
Advertise Dairy Milk Lite in the markets, shops, pharmacy, city, schools by introducing Posters and billboards.
Generate word of mouth by making a short advertisement of Cadbury like `First Time in the Cadbury World…………`
Advertising it on websites like official Cadbury` site and social networking site specially Facebook and on TV2
Introducing a Christmas Club poster of Cadbury with new launching Dairy Milk Lite.
Hold taste sampling at Big West Field Shopping mall and Silvia Park.
Promoting ad on omen`s Weekly magazine.
Period 2 (December 2012 – February 2013)
Launch Family Pack Dairy milk Lite with some discounts.
Continue the Christmas Club celebration Posters.
Keep on advertisement along door ambient ad on campus and companies.
Introducing a TV advertisement sponsorship to Tv3 Saturday night movies.
Advertising will remain on Women`s Weekly magazine
Period 3 (March 2013 – May 2013)
Continue ad on television.
Paste the posters on the delivery trucks.
Continue advertisement on internet and via posters at all retail shops.
New Square and Blocks will launch with some discounts.
Period 4 (June 2013 – August 2013)
Advertisement on television will last in this phase.
Promotion via posters will remain same.
School Fundraising ends.
