Marketing strategies undertaken by Cadburys and how this helps them develop a product range. Introduction I have recently being employed as a junior marketing manager and have being asked to produce a report providing information on the strategies of the market leader Cadburys. It will be produced using Microsoft word and internet and library research will be used. Market research is carried out to identify customer needs and views in relation to potential new products/services, or extending products or services. The principles of market research are to refine marketing strategies and activities to satisfy customer’s requirements.
After customer needs have been identified they need to be designed, it is essential to do all of this so that the business can make a profit to invest in advertising and other new products. Findings Cadburys started as a small grocers shop in 1824 by John Cadbury, in Bull Street Birmingham, and has developed and expanded from then on. The business changed its products to chocolate in 1831 when it manufactured chocolate drinks and cocoa. The business is now the leader in the UK confectionery market. This is due to effective management and identifying key marketing strategies to anticipate its customer needs and wants.
Marketing helps a business to make accurate decisions on the information it provides. Cadburys use market research techniques to help understand its competitors, customers and the environment it is in, as these are the main three things that affect the business from the out side. There are many different types of marketing research some are more effective than others. They identify opportunities and threats so the business can come up with new ideas to overcome these or proceed with them. There are various research stages that Cadburys should do to help them develop a new product range successful.
Defining the objectives of the research to make sure that the objectives are SMART objectives so that they can make sure that the objectives are relevant and that they can be measured. This enables Cadburys to make and change objectives if they are not working so that they can achieve their aims of the research. Planning this involves having a time scale and planning activities out to fit in with the time scale so that it can be on target. This can be applied to Cadburys, as they should plan every thing out to make sure that it is achieved properly and on time.
For example if Cadburys did not use planning then they might lose a lot of money and wasted time as they might miss things out when doing their research as they did not plan it out first. Collection of data this is gathering information from different sources of research then putting it all together to see what you have found out, by analyzing it to see what sort of information you have got for example primary/secondary then evaluating it to see if the information you have gathered is relevant and what you can do with the information you have got (how are you going to use it).
This can be applied to Cadburys when they are doing their own research. There are different types of market research techniques used within a business. As there are many different ways of collecting data. For example research can be grouped into primary, secondary, qualitative and quantitative research. Research is usually carried out to find out directly from the market how a new product may be seen. Cadburys use primary research, as it is very effective as it allows them to find new opportunities and ideas before its competitors.
For example Cadburys could do a door-to-door survey to find out how many people have heard of their products and how they have heard of them. This could tell them if a sponsorship is the right type of media to use to promote awareness, because if more consumers have heard of their brand name through seeing billboards then this is the right type of media to use to increase their sales. The draw back of using primary research is that Cadburys competitors like nestle, mars and Hershey might have already done a survey by using similar questions. Also some consumers who might have answered the survey might of being lying.
This type of research is more expensive because it is first hand but it is more likely to meet precise needs of Cadburys research. In addition since this type of research is used to find out how a new product may be seen, if it will be successful or not. This can help Cadburys when developing a new product range as it determines what its market will think of the new idea. Cadburys can understand its market and what it wants. Primary data is needed to find out what consumers think of a new product or advert. However it is labour intensive and slow.