Markets segments and consumer
Research makes use of research already carried out by someone else for some other purpose, for example the Internet, books, newspapers etc. Secondary research is widely used as it has a low cost. It is not effective enough to help businesses gather individual information, as it is available to mostly every organization. This type of research is not detailed enough to help Cadburys or any organization to make decisions about how to run their business or carry out activities or operations within the company. Also some secondary information might be out of date because the markets change rapidly.
This type of research is useful to Cadburys in providing a comprehensive insight into a markets size, segments. Although this research can be accessed by Cadburys competitors, Cadburys may see opportunities that their rivals may have missed. Each business may use this research differently, so see things differently to everybody else. It allows the company to compare past competitive and customer behavior to what is happening now from the information this provides. It is a cheaper way of researching that may give the company a chance of seeing new opportunities.
For example secondary information gives Cadburys insight into its competitor’s activities and existing products; this may give them ideas how to come up with new products by enhancing existing ones that are already available. This gives an initial understanding of a market. Secondary information can by obtained internally or externally. Internal is within the company. This could be done using data such as stock levels, to see which products are selling the most, prices and sale records. This will show Cadburys which techniques worked best (introduction prices etc).
External secondary data is research out side the company. This can be obtained from a number of sources. Examples of secondary research methods: Internet, Books, news papers, financial reports, news bulletins, radio etc. Research is in-depth into people’s attitude and their motives for buying a product. It is undertaken in small groups called focus groups or interviewers. The number interviewed is likely to be small so might not be as reliable. This type of research asks open questions to get a more detailed answer from consumer; this gives more informative data to the business.
Cadburys should use this research method because it could help them find out relevant information they need to know when developing their advertisement, for example qualitative research finds out information about consumers lifestyles, habits, buying patterns and it could help Cadburys find out what TV programs they watch so they know which ones to sponsor to increase their sales. Qualitative research would help Cadburys understand their customers, as they would get more specific information to help them identify what they want, so they can produce a product range around this. Research produces facts and figures (numerical statistics).
It uses multiple-choice questionnaires that ask closed questions e. g. do you like this product? A. Yes B, no. These are fixed answers that make analyzing easier. This would help Cadburys measure sales week by week, including those of competitors before and after the sponsored advertisement is broadcasted, this will help them determine if the advertisement has helped them increase their sales and if their competitors have decreased due to Cadburys attracting them to buy their products. Primary is new research that has been found using strategic, technical and data bank research and secondary is existing research like in books.
This is business direction strategies like new opportunities and planning new markets. This type of research would be beneficial to Cadburys as it would help them to plan its future direction, for example identifying a new internal market to enter to make sure that the market that Cadburys has chosen is the right one for them. This enables a business to look at its market more precisely, so that its current activities can be improved. Cadburys could use this to improve its promotional tactics within its market. This involves collecting new or updated information about the markets segments and consumer interests to the organization.
Cadburys could use this type of research to find out what consumers think of their products so that they can improve them so that they will be at customers satisfaction, this could help them increase their sales of their products. Primary research uses sampling to make predictions about the whole market based on a sample. This type of research involves using a number of individuals to gather information, on what everybody thinks about something in the whole group. It is very effective and will help Cadburys to find the relevant information they need and will be more accurate.
There are a number of sampling methods available; this gives you a choice to see which ones are suitable for your research. This method will help Cadburys when developing a new product range as it is accurate and precise. There are certain types of sampling that are more appropriate for different types of research. These are stratified sampling, random, quota, cluster, judgment and systematic sampling. The most appropriate for Cadburys is quota sampling as this helps them to understand their consumers better. A quota is set for each target sub group in the consumer profile.
Cadburys should use this type of research because it will give them the specific information they want from the people who buy and use their products, instead of wasting money and time on asking consumers who have never heard of the company or its products because they will not be able to give them the information they are wanting. All sampling methods have errors that might occur for instance respondents might give the answer they think the researcher would want them to say. Also the researcher might not full understand what they are trying to find out so inappropriate questions might be asked.
The sampling might get a low response rate which means that information can not be balanced out to what people think the most, because it is uneven. Table to show which research methods target which category the most. Cadburys definitely use qualitative research and quota sampling method because they are both linked together. Qualitative research helps Cadburys to find out what kinds of people buy their products so when this is done quota sampling can be used to target the people that use their products.
To find out and gather information from them on what they think of the products and what improvements can be made, which will help Cadburys in the future when making new products and help them establish what their customers are like to see who might be buying their products in the future. Both of these research methods are primary research as they are gathering individual information to what Cadburys wants to find out. In addition they help the organization to understand their customers better, which will overall help them when producing a new product range, as they are directly finding information from the targeted audience. Conclusion
On the one hand Cadburys is a very successful company and has being running for many years. They have done in-depth market research to get this far and have a selection of products to offer from this. This has allowed the business to determine which marketing techniques to use and which is best suited when gathering right information when developing a new product range. However on the other hand, Cadburys have a lot of competition from other leading companies listed in the table below. So need to constantly review their marketing strategies to keep ahead of the rest.
2004 $ Share Total Chocolate Sugar Gum Cadbury Schweppes 10. 0% 7. 8% 6. 9% 26. 0% Mars 9. 2% 15. 2% 3. 1% 0. 2% Nestle 7. 8% 12. 3% 3. 6% – Hershey 5. 8% 8. 4% 3. 1% 1. 7% Kraft 4. 9% 7. 3% 2. 7% 0. 5% Wrigley 4. 9% – 0. 3% 36. 0% Recommendation Overall from the above information I recommend that Cadburys should use the above two types of research and sampling methods, as they seem the most appropriate for why the research is being done.
Also they will provide the company with direct information on what they are trying to find out. What its customers want? So that they can develop this through a new product range. However other research methods should still be used, but having qualitative and quota as the main ones.