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Marketing Case Study

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I have been asked to do a coursework on Marketing where need to produce a marketing strategy for a new or existing product. I have to work on how the strategy is based on the principles of marketing how I use sources of primary and secondary marketing information how I analyse the marketing context and work on the strategy how I develop the product, which meets the customer’s needs.

Primary Research:

Primary research is the research that is original and is obtained manually involving range of methods, such as questionnaire and surveys. I will be carrying out a questionnaire to discover the opinions of the people and their thoughts about the new product. This questionnaire will help me provide a detail of the pricing of the new product, what people think about the new healthy product and this will also help me create the product using people’s thoughts and views.

Secondary Product:

Secondary research is basically promoting your product technologically using the Internet. The secondary research will also help me extract information about the competitors, marketing skills and strategy using the Internet and their data. I will also be looking at the Cadburys to view its marketing methods in terms of promoting the new product.

In this assignment I am launching a new chocolate bar called GEMINI 2 in 1 sugar-free chocolate for the Cadbury’s Company. This chocolate is aimed especially at young children and at the diabetic people. The new Cadbury’s product will be having low-calories to suit the needs of the young children and diabetic people. Through the help of our questionnaires we will be able to set a reasonable price for this chocolate and choose the right filling. The questionnaire will be able to inform us that if it is a good idea to launch a healthy product that reduces health risks for the diabetic people and encourages children to buy more chocolates.


It is one of the biggest international beverage and confectionery companies in the world with a market capitalisation of �9 billion. With a history stretching back over 200 years, today Cadbury Schweppes employs around 54,000 people its brands are enjoyed in almost every country around the world.

Their products fulfil a broad range of needs. Their beverages quench thirst, provide refreshment and taste and reflect lifestyles. Our confectionery offers energy, taste, rewards and gift opportunities.

Cadbury’s Sugar-Free chocolate Questionnaire

The questionnaire is created to view the thoughts and opinions of people concerning the new sugar-free chocolate specially launched for diabetic people and young children. I have managed to query 50 people with different age groups. The questionnaire contains the results which have been observed.

1. Age Group: 10-20 = 15 20-30 = 6 30-50 = 9 50+ = 20

2. Gender: Male = 22 Female = 28

3. What type of chocolates do you buy?

Mars = 16 Snickers = 8 Twix = 5 Cadbury’s Diary Milk = 8 Kit Kat = 6

Timeout = 3 Milky Bar = 2 Other = 2

4. How often do you buy chocolates in a week?

once a week = 17 2-3 times a week = 22 3-4 times a week =11

5. Would you prefer to buy low-calories, sugar-free chocolate?

Yes =35 No = 15

6. Do you consider the price of the product when purchasing it?

Yes = 32 No = 18

7. How much are you willing to pay for a low-calorie sugar-free chocolate?

15p-20p = 13 20p-30p = 14 30p-40p = 17 40p-50p = 6

8. What type of filling you would prefer?

Carmel = 18 fruit and nuts = 20 toffee = 8 mint = 4

9. Do you buy a chocolate according to the taste or the look of the packaging?

Taste = 44 look of Packaging = 6

10. Are you willing to buy a chocolate with new and different flavour?

Yes = 46 No = 4

11. Where do you buy chocolates from?

Newsagent/Local Shop = 28 Supermarket = 15 Other = 7

12. Where do you hear most about your chocolates from?

TV adverts = 11 Posters =17 Internet =12 Other = 10

13. Do you think sugar free chocolates will reduce the health risks for diabetic people?

Yes = 37 No = 13

14. Do you think this would encourage Diabetic people to eat low-calorie, sugar-free chocolate?

Yes = 34 No = 16

Evaluation of the Results

1. Age Group:

As you can see form the graph that old people and young children have participate most in this questionnaire, which means the targeted audience that was targeted is happy with the launch of this product.

2. Gender:

The graph tells us that female have voted the most which means female eat most chocolates.

3. What type of chocolates do you buy?

The graph shows that 15 people have chosen Mars chocolate as their favourite chocolate, whereas only 8 people have voted for Cadburys which means that Cadburys should launch the new product to increase their popularity and sales. It also gives us the competitor’s view where the competitors are very effective and it would be a challenge for the Cadburys.

4. How often do you buy chocolates in a week?

The result shows us that a lot of people have chosen 2-3 weeks that means chocolates are very popular and people do eat chocolates very much, this will be a positive factor for the Cadburys to launch a healthy chocolate that will be eaten more.

5. Would you prefer to buy low-calories, sugar-free chocolate?

70% of people have agreed with the launch of this new sugar-free chocolate. This shows that many people are happy with the health and concern that Cadburys has decided to provide, which is a good factor towards the encouragement of the new sugar-free chocolate.

6. Do you consider the price of the product when purchasing it?

A Lot of people consider the price of the product when purchasing it this means that price should be considered and should be what the customers want.

7. How much are you willing to pay for a low-calorie sugar-free chocolate?

This type of question helps us to set the price of the product and this results shows that 18 people have chosen the price between 30-40p which is not too high and not too low.

8. What type of filling you would prefer?

40% of the people have chosen fruit and nuts, which means it is a good idea to launch the chocolate as in 2 in 1, to be tasteful and healthy.

9. Do you buy a chocolate according to the taste or the look of the packaging?

The taste of the chocolate is considered very much because as most of the people have voted for the taste which means Cadburys will have to make it delicious in form of healthy product. The packaging also matters to some people so the product should be attractive and eye-catching.

10. Are you willing to buy a chocolate with new and different flavour?

Again a lot of people 92% have agreed with the launch, which is a push factor for Cadburys to come up with a new product to dominate the market.

11. Where do you buy chocolates from?

The result shows how popular Cadburys is it shows the newsagents and the supermarkets are very popular to supply the product.

12. Where do you hear most about your chocolates from?

Posters are the most admired way of promoting the product. It should benefit Cadburys by promoting their in new product from posters because as posters are the cheapest way of advert so it will help them reduce costs.

13. Do you think sugar free chocolates will reduce the health risks for diabetic people?

37 people have said yes and they do thing that it will reduce health risks for the diabetic people, which is an extreme encouragement of the Cadburys to launch the new sugar-free chocolate for the diabetic people.

14. Do you think this would encourage Diabetic people to eat low-calorie, sugar-free chocolate?

68% of the people have again agreed with this launch it will encourage the diabetic people and Cadburys. This is a great support for the Cadburys which gives them confidence to launch more product like this chocolate.

What is Marketing?

Marketing is the management process responsible for identifying, anticipating and satisfying customer requirements profitably. Marketing is the process of planning and executing conception, pricing, promotion, and distribution of ideas, goods, and services to satisfy individual and organisational objectives. Marketing is concerned with the decisions that relate to a business customers, competitors, and promotion of the firms. Marketing focuses on how customers make choices and how companies should design products, services, and programs to satisfy their customer needs.

Marketing is a process. It does not have a start and an end, but is ongoing all the time. Business must be prepared to respond to changes that take place. This is shown in the figure below:

Market Research:

Market research is the analyses of the actual, or potential, market for a good or service. Marketing research includes additional research into the product, the promotional vehicles, and the economic and business environment.

For preparation of Marketing Strategy for Cadbury’s, that we have to operate some market research, which will include the gathering of Primary Marketing Information and Secondary Marketing Information.

While preparing the marketing strategy for Gemini 2 in1, competitors are taken into consideration. The market share of various competitors, there position in the market and the demand for these products are the important points to be taken into consideration as this will help to determine the strengths, opportunities and weaknesses of our product for Cadburys.

Evaluation of Primary Information

According to the questionnaire received and graphs prepared, I have now evaluated what the consumer need. We have observed that amongst the different, those females eat more chocolates than males. The most liked fillings are caramel and fruit & nut and people are willing to spend money on a new chocolate bar. Looking from the evidence of questionnaire the graph indicates that 35 numbers of customers do think that low-calories, sugar-free chocolate will reduce the health risk for diabetic people and will young encourage children to buy more of these sugar-free chocolates. Taste of the chocolate is more important that the packing, which suggests that it, would be better to focus more on taste. The questionnaire and the graphs imply that most of the customers have agreed to the price of 30-40pence for Gemini 2in 1 pack but this will be also decided according to the cost of production and the price planning prepared for the product.

Advertising is very important in terms of promotion, it is vital product should be effective. In order to advertise Gemini 2 in 1 I am going to concentrate more on the Poster advertisement because large number of customers hear about their product by viewing posters, which also indicates that Gemini 2in1 should be supplied more in Newsagents/Local shops as 28 out of 50 consumers consider the place Newsagents/Local Shops. Lastly the overall evaluation of the questionnaire show that customers are content with the launching of new low-calorie, sugar-free chocolate and which shows that this chocolate should mainly be targeted to young children and diabetic people.

Evaluation of Secondary Market Information

As soon as Primary Data is published it becomes Secondary data. The benefit of secondary information is that it can frequently offer different interpretations of the same information. However, the obvious drawback with secondary information is that, it can be open to misreading through subjective analyses. For the purpose of preparing marketing strategy for Gemini 2in1 for Cadburys, various sources are used to receive the secondary market information.

Following are the sources of secondary information used:

The books, Internet and information provided by different chocolates companies.

As a market develops, consumers become more experienced and discerning and look for more benefits from the products they choose. Although some organisations products may appear unchanged at this developed stage of a market, the more successful businesses re-work existing brands and continue to develop new ones to meet changing consumer needs.

Product Research:

In this research I will be researching on my product, to see how the product is created and verifying different aspects of this product.

Sugar-Free Chocolate: The sugar-free chocolate was introduced in the fifties as a product solely for diabetes and other food-related health conditions. It was manufactured earlier but it wasn’t noticed by many people, the reasons could insufficient market research, not a famous brand. This is why Cadburys has decided to launch once again a sugar-free chocolate by having a lot of market research and bringing its brand loyalty into the market.

Cost: Diabetic chocolate costs a lot extra, more than our other chocolates because it is a specialized chocolate for people with special needs. But by looking at its competitors pricing and Cadburys has decided to keep a low price at the begging to attract more demand for the Customers.

Style and Packaging: The style of my product should be attractive enough to grab the customer’s attention. There should be enough details provided as it is a healthy chocolate so risks precautions should be there.

Ingredients: Maltitol, Hazelnuts, Low Fat Powder, Milk proteins, Soy Flour, Soy Lecithin. The most important ingredient is the Low fat Powder. This is the formula which converts the chocolate into no sugar. I will be concentrating on this ingredient. In order to make it tasteful the taste also matters, the ingredients are added for all purposes. It has 19% low calories, which is the key for success.

Competitors Research:

This is the research for the Cadburys Competitors. It is important to know everything about their competitors. Cadburys have many competitors that are: Mars, Nestl�, Snickers. By discovering the research about the competitors it will be easier for Cadburys to set out its goals and market strategies.


Mars is a $14bn business operating in over 100 countries. It has a huge business our size, and it is privately owned, which makes them one of the largest ‘small family businesses’ in the world. Their success is not simply due to developing the right products. It’s a unique combination of innovation and determination, the essence of which can be found in the Five Principles that shape our business:

– Quality

– Responsibility

– Mutuality

– Freedom

– Effeciency

The Cadburys has to make sure they notice these five strategies very well and try to evaluate them into theirs new launch and also by analysing their financial statement as well to try to point out the success.


Nestle is the world’s biggest food manufacturer, with well over 500 factories in 85 countries, and a portfolio that is famous for chocolates. The Nestl� Company is named after its founder, Henri Nestl�, who, in 1867, at a time of high infant mortality. The picture below shows the Nestle Company’s financial statement for three years.

The profile shows that it has huge turnover and income. So the step for the Cadburys would be to keep the price down and increase sales to get huge turnover.


Snickers was first introduced to the public in 1930 and is now the number one selling candy bar in the United States. It is made of peanut butter nougat, topped with caramel and roasted peanuts and covered with milk chocolate. The peanuts are crisp-textured special grade which have good flavor and keep well. SNICKERS(r) is a global brand, however, in the U.S. they are made in Chicago, Illinois and Waco, Texas.

The following picture shows the Company’s financial statement which briefs out company’s turnover for three years.


Competitive activity must not only be met but also anticipated, including reaction by them to any actions initiated by the company. Changes in competition must be considered. The production of Gemini 2in1 by Cadbury’s will face competition with various big brand names like Mars, Milky Bar, Snickers, etc. which exist in market from long time, which should be taken into consideration. As for example following is the Dairy milk of total wrapped impulse market (volume):

Year Volume Share %

1995 16.7 %

1996 16.2 %

1997 17.0%

1998 15.4 %

Requires regular review of product range and product mix to ensure they are meeting customer needs properly, in all respects. All items should also help to optimise and enhance sales of each other. It should ensure that all items in a product line help to optimise sales and profit of the whole line.

Price and Value

According to our market search for the prices we have decided we are going to have 3 different sizes.

45g for 28p

85g for 52p

125g for 75p

Looking at the market research we have decided these prices because for a new product penetration pricing can be chosen, where the product should be launched at lowest price and as the sale increases the price can be increased gradually. The pricing on their competitor’s products is too high Cadbury’s could lose sales if a competitor was to launch a new product to rival Cadbury’s best sellers. Legislation on ingredients could cause huge problems. Healthier options could cause problems to Cadbury’s with trends tending to favour the new healthier options. New products from competitors could cause problems to Cadbury’s as they could begin to lose their market share.

Brand-led innovation is a vital component in the growth of this market as it enables organisations to build competitive advantage. Over recent years, competitors in the chocolate market have made significant investments in new product development. Indeed, over 15% of volume sales in the last ten years have been generated by new products. Launching the new product would consider all these factors which can effect the production of the new product. In order to launch the product I have to ensure that I meet all the marketing objectives and strategies.

Marketing Model:

Marketing Model is the concept of creating marketing objectives and implementing on how to achieve them by making a hypothesis, whether your decision was right or wrong. Cadburys has a number of objectives to achieve specially when launching a new product. Marketing Model is divided into 3 different categories, ethical marketing, Internet marketing and technical marketing.

Ethical Marketing:

Ethical marketing is involved with the moral principles where most organisations such as Cadburys think it is important to show that they operate in ethical manner. For Cadburys it is do deal with product ethics where they may think that it can affect the short-term demand. So they must produce a lot of chocolates where they should never run out of their products or stock.

Internet Marketing:

Internet marketing involves Strategies and techniques applied on the Internet to support the organisation’s overall online marketing objectives. Goals may include promoting through Website and features on the Website to create a desired call to action. Internet marketing may include keyword called E-commerce where all the financial transactions are tuned into electronic process using the computers through the Internet. Cadburys uses this e-commerce to promote them by advertising on the Internet using their websites, as whole work, transactions are electronically held. The product can be shown on the Internet where people can buy it online. Cadburys find this very easy and cheap to make extreme sales, which is one of the biggest objectives to make sales for Cadburys.

Technical Marketing:

The technological revolution means a fast way to exchange the information beneficial to business which makes things very easy and smooth. It benefits Cadburys very much as launch of the new product will be cheap and modern. It created opportunity for them to launch it successfully.

Marketing Objectives:

Marketing Objectives are the goals that a business is trying to achieve through its marketing. A Company’s marketing objectives will be influenced by its corporate objectives. In order to set Gemini 2 in 1’s marketing objectives I have to set the following:

* To develop a range of product: Developing a range of product or improving the existing product helps the organisation to maintain their position in market. Still new tastes and flavours are coming up in the market in order to maintain and improve the Company’s image.

* To achieve or maintain market share: Cadbury’s operates on worldwide scale with its consumers all around the world. In order to achieve more market share and to maintain existing market share, new product development is essential for every business.

* To target a new audience: Every time the organisation develops a product, it targets the product to certain audiences. If for example Cadbury’s produces a new chocolate bar flavour as well as sugar-free to suit the needs of young children and old people with diabetes, then the new target audience will be youngsters’ between 3 years to 24 years age group.

* To increase profitability, sales and revenue: Developing or improving of product increases the probability of fetching more profit and revenue, buy increasing the sales.

Marketing Strategy:

Marketing strategy is the way an organisation launches their product into the market. Strategy is concerned with meeting the objectives of an organisation, or of some part of it, therefore we have Corporate Strategy concerned with the overall aims and objectives, but we have Marketing Strategy concerned with the more specific objectives of the marketing department. It is the plan to achieve the goals which are set by an organisation. Marketing Strategy is divided into many stages. The first stage is setting marketing objectives this is where the organisation wants to be at the end of the strategic planning period and goals which is the time to measure the level of achievement attached with the objectives with specific numerical benchmarks and deadlines. The second stage is specifying the core marketing strategy, i.e. specific target markets, competitive positioning and key elements of the marketing mix and the last strategy is the implementation of tactics to achieve the core strategy and to gain larger marketing.

The main Marketing Strategies:

1. Market Dominance: Market dominance is a measure of the strength of a brand, product, service, or firm, relative to competitive offerings. There is often a geographic element to the competitive landscape. In defining market dominance, we must see the extent of a product, brand, or firm controls a product category in a given geographic area. There are several ways of calculating market dominance. The most direct is market share. This is the percentage of the total market serviced by a firm or brand.

2. Competitor Based Price Strategy: This is the strategy based over the competitors. Cadbury’s has a strong competition going on. Cadburys main competitors have the strength and capability to keep the prices low to attract more customer, in this race of customers the less the prices are the more the sale of the products are. To maintain customers’ needs we have to keep the prices low in the beginning then slowly raise them to increase the sales.

3. Product Strategy: This is obviously the most important part of any business. In order for a product or service to succeed, it must offer clear, distinct and non-arguable value to the buyer. Customers look forward to buy a product by viewing the size, looks/packaging the requirements, which makes the customers buy the product. In order to make it product orientated we need to make sure that our product is at USP – Unique Selling Point, which gives a unique use of product. However the Gemini 2 in 1 should be unique in every aspect, the colour, the shape, the size, the material used for packaging and the overall packaging feature.

4. Place Distribution channel: Using the market research results report I assume that we distribute our product in retail/newsagents outlets because most number of people selected newsagents.

5. Promotion Strategy: Consumers also look forward for any adverts, promotions of the company. They need full information about such product. If the product has been designed with customer desires and needs in mind, the communication necessary for getting a customer to pay for the product is already known and replicated in the media used to reach them.

Product strategy and planning:

This involves decisions on product range and mix, rationalisation, modification and new product development; these in turn require consideration of product life-cycles, warranties and guarantees and, especially for consumer goods, packaging design, branding and trademarks. The work entails not only consideration of the physical product but also the satisfaction of consumer needs. The most important of all will be the planning for the price of the product kept low to meet the customer’s needs. This strategy will be the most important strategy to attract customer to increase sales. As the product is targeted for young children and old people so it would be an ideal price for them to purchase for a healthy and suitable product.

Product Design:

The design is the most important factor in terms of attracting the customers. The design of the product would include the design of the chocolate, the material, the logo and the slogan. The colours also matters because they bring out happiness on face. It is important to include all these features to make the product successful.

Product Quality:

Cadburys has successful quality its quality is admired like all the other Cadburys products the packaging would be made out of the shiny, recyclable material. The ingredients will be original and effective, containing the formula for the diabetic issue. Quality control is also there for the product testing.

Product Features:

This chocolate is created as a healthy form for diabetic people which is a sugar-free chocolate created to reduce the health risks for the diabetic people. The chocolate also encourages the young children to eat more chocolates because as it a healthy chocolate. The analysis of the questionnaire proved that the price should be set at a medium stag. I would not be using unfair pricing because it will not help the product to do well. We also have to consider the competitors pricing techniques. To outcast them by setting a low price.


A brand is a particular product or characteristic that identifies a particular producer. The business of creating brand is a particularly important function of marketing. Cadburys has a big name to it which is also like a brand. The brand differentiates your product from everyone else’s. Cadburys is known for its profitability and has a big share in the market.

Pricing Strategy:

Price is the only element if the marketing mix that directly generates incomes, other elements of the marketing mix is costs.

Skimming Pricing:

This is a pricing strategy where an organisation sets an initial high price and then slowly lowers the price to make the product available to a wider market. This is the pricing technique the Cadburys will be aiming at. As this type of strategy will make the product successful, affordable and as well as it will make profits for the company.

Penetration Pricing:

A pricing policy of setting a price below the prices of competing brands in order to penetrate a market and produce a larger unit sales volume. This type of pricing would not suit the Cadburys chocolate because as it is a chocolate, which is low price, any low cost would make it worse for the company.

Competitive Pricing:

In extremely competitive situations these types of strategies are used this is a price set in comparison with your competitors. It will be suitable for the Cadburys to set this type of pricing if the product is faced by direct competition, which makes it difficult for the firms to do well.

Psychological Pricing:

A pricing method designed to encourage purchases that are based on emotional rather than rational responses. This a unique and tricky way to make a customer confused where the customer will be thinking if the price of the product is 99p instead of �1 mentally the customer goes for the 99p product rather than �1. This type of strategy can also be used in product as at this stage the price of the Cadburys sugar-free chocolate is 34p it could have been 30p to confuse the customers.

Promotional Strategy:

Promotional strategy includes advertising, publicity, sales promotions, personal selling, and public relations. Each component of the promotional mix plays a role to have potential customers learn about the business and buy goods or services.

Promotional Mix:


Advertising is a method of communicating with groups in the marketplace in order to achieve certain objectives. Advertisements are messages sent through the media that are intended to persuade customers. The target audience for my product is aimed at the young children and diabetic people so the advertising will depend and based on their theme.

Sales Promotion:

This is a form of promotion which encourages customers to buy products by offering incentives, such as buy one get one free offer, buy one and get the second at half price etc. I can use this type of Promotion later on the stage which is a good way to penetrate the market. This way people will buy more of the products and the company would have more sales and profit.

Direct Mail:

This is a form of advertising in which the published matter is mailed directly to the potential customer. Direct mail is personally addressed advertising sent through the post. The analysis of the questionnaire suggests that most of the people voted for the posters, this could be a good idea to promote the product using posters but in a form of direct mail.

Media Strategy:

This type of strategy is concerned with how ad messages will be delivered to consumers. It involves and identifies the characteristics of the target audience, who should receive ad messages and defining the characteristics of the media that will be used for the delivery of the ad messages. Media sources normally include newspaper, magazines, radio and TVs. The best way to promote the Cadburys new chocolate through the TV ads and radio, because these are the most common ways of promoting.

Push & Pull Strategies:

A push strategy is where a manufacturer concentrates some of their marketing effort on promoting their product to retailers to convince them stock the product. This strategy can include many strategies from the promotional mix, these can be identified as Personal Selling and Direct Mail, therefore the product is pushed onto the retailer, which is where the name ‘Push Strategy’ comes from. A pull strategy is a way to create a demand. Consumers will try to pull the products if the demand is high, both push & pull strategies are effective and a good way to attract the demand for the product. This strategy will most definitely be very useful for my product; Cadburys distributes its products greatly using this strategy. In every local shop or newsagent the Cadburys stock is full because there is a lot of demand for it therefore this will be a great strategy to use to increase more demand.

Place Strategy:

At this stage, having made product decisions and a choice of target market, then I have to talk about the place where the new Cadburys chocolate is going to be supplied. Where and how the product is going to be distributed in the market. It is important to distribute the product at the right place and at the right time. To meet the marketing objectives it is essential that the place of distribution should be effective enough to make profits.

In order to distribute my product well, I need to consider the two distribute channels. The first one is called Direct Distribution where the product directly goes from the producer to the consumer; this basically gives a control over the product. It goes through a process of Manufacturer –> Consumer. The second one is Indirect Distribution where the product goes from intermediary between the producer and the consumer which basically means it goes through a process of Manufacturer –> Wholesaler –> Retailer –> Consumer. This is a long process compared to the Direct distribution therefore it would be easier for me to distribute my product through the direct distribution because as it is a chocolate, which is a confectionary product.

Distribution Strategies:

I am also going to consider the distribution strategies where the product is going to be supplied and to find the effective and successful one. The types of distribution strategies are described below:

> Extensive Distribution: this involves a limited number of distributions to a singles outlet. It is very expensive and it requires a lot of detail. This is good for vehicles and things which involves dealers in it. As Cadburys is a chocolate and it does not require much detail and as well as it is cheap so it would be unsuitable for me to distribute in this area.

> Intensive Distribution: The aim here is to obtain as many outlets as possible where the availability of the product is available. This is the most appropriate type of distribution because as it good for chocolates and which suits my product well.

> Selective Distribution: situation where the producer wishes to retain some control over the way a product is sold; it also means that the product is limited. This type of distribution is most suitable for the electronics manufacturers who specialise in electronics.

The most appropriate distribution strategy for my product will be the Intensive distribution because as it involves a low priced impulse product and also the one of the question which question no: 11 in the questionnaire proves that most of the people by chocolates from the newsagent or any local shop so it would be considered as the main distribution place.

Marketing Principles:

A marketing plan takes considerable effort to understand and characterize the market, the customer, and the environment in which you are conducting business. The marketing principles are the controllable component of your marketing plan.

Marketing Mix:

The four elements of Marketing Mix are Price, Promotion, Place and Product. The Marketing mix refers to the way in which the four ways that an organisation can achieve its objectives. The marketing mix is the organisation’s overall offer, or value, to the customer. ‘The basic marketing mix is often nicknamed

“The 4Ps” (product, place/distribution, pricing, promotion); these are elements in the marketers armoury – aspects that can be manipulated to keep ahead of the competition’. Price this is how much you charge for your product or service. The marketing mix is the term given to the way in which firms have to mix together the elements that go into successful sale of product. They are known as the 4 P’s. Considerations include whether you will charge the same amount all of the time or vary it in some way. Varied pricing could occur according to geography, time frame, or volume. Additionally, with a service, price can be varied according to level of service.


This would be the price at which we will sell our products. When decisions have to be made about the price it would be important for the organisation to make a good decision.

According to the questionnaire the price will be set as following:

45g for 28p

85g for 52p

125g for 75p

The company will set the prices pretty low when they will launch the product, they can raise the prices high slowly as the product will be in demand. The business does operate in a competitive market. Most organisations choose to keep in line with its competitors, or try to undercut them.

The price is what basic price customer would pay, whether discounts or credit terms would be desirable. The price of competitors products, whether additional price-related features would be tempting. For example if Cadbury’s were to sell chocolates, which were over the limit, which customers will not pay, the company will do very badly with profit.

Pricing in the Market

This is how the businesses juggle the various factors in order to set prices so they can reach targets set. This may concern the ales, level of profit. This means that, to a firm, setting the right price pricing is important it determines:

* How much the firm can sell of each products

* What sort of profit they make.

The product is shown on graphs showing how much they demand and how much they need to supply.

The most common way for firms to decide on a price is through cost-pricing. This means the cost of raw materials and labour that have gone into the making of a product or the provision of a service in order to determine the cost.

Competitive pricing is when the product can be in competition with other brands. Then the pricing may go down or up. The organisation has to look at what other firms in the market are charging. The products, which may be in competition, have to compete with one another. When a firm is trying to gain a foothold in a new market it has a number of possible pricing strategies. It can try to enter market at low price, or enter market at high price.


Product is the type or the variety of product the customer wants the quality required the features and styling that are preferred, whether packaging is important, whether guarantee or after sales service is required. The product could be said to be the most important part of the marketing mix. Without the product there is no need for price, promotion or packaging and certainly no need for a place to sell from.

A product is what the firm is trying to sell. To the firm the product is:

* The good or service that they are selling

* The reason they are in business

The product life cycle is:

* The launch of the product

* The growth of the product

* The eventual decline and often

* The death of the product

New product development is an on-going, never-ending process and at any one time, if this new product is doing well in the market then the company can launch more products in the market. Then they can also improve there the following in future project can be:

* Changes in consumer lifestyles

* Technology developments

* The need for market extension abroad, in Europe.

Whether the product strategy is-

* Existing product improvement

* New product development

* Product diversification

To launch a product the company has a product brief set out. It involves desk research involving market data, government statistics, and trade.

Company objectives

Consumer research

Product brief


Business Analysis

Product Development

Manufacturing Process Development



National Launch

After getting all the research they require they can then start to produce product and put it in the market.

Market research can get ideas for the company so they can launch new products.

New products are often initially sold in limited regions of the country because early sales can be very high as the distribution ‘pipeline’ is filled. Advertising the products is very expensive. Research programs are developed to monitor the product in its test market.


Promotion is where it would be best to advertise the product, what type of personal selling would be best, what type of sales promotions could help, what publicity would be most effective, how the product should be displayed in stores. All businesses have to decide to promote their products. A variety of methods are used:

* Advertising

* Sales promotion

* Publicity campaigns

* Personal selling


Products can be advertised daily in the press, on television and commercial radio, in cinemas and on boarding, in train stations and on buses. Advertisement is used to persuade people into buying a particular item.

Sales promotions are campaigns, which tempt potential customers to try a product. Like a company may offer free samples special discounts.


This is where to find potential customers and see what kind of shops they use. What magazines and newspapers they read to find out how to distribute the product. Place is the final part of the marketing mix, place is when a company has to find out where the product can be sold. The place that the product is sold must provide the right setting for the consumer to buy the product and involves a firm in choosing the right channel of distribution. Place concentrates the supply where promotion concentrates of the demand.

Chain of Distribution

Producer Wholesaler Retailer Consumer

The producer or manufacturer makes products in large amounts and will sell them on to firms in large amounts.

The wholesaler buys the products from producers and manufacture bulks. They will then sell the goods on.

A retail outlet is anywhere where the consumer can purchase the good. This usually takes place through shops.

The consumer then buys the product from the retailer.


This is also important in the market when marketing a product the firm needs to design a package, which will attract customers.

The texture, shape, size, colours and unique is important of the packaging. Many forms would like to develop packaging and make improvements like they did to Dairy Milk. As years went they improved the texture, colour and size of the chocolate packaging and bar.

Cadbury’s sees the packaging, which they use, as a major part of the product it has designed. This is the reason why the development and design departments of the company work very closely together, which will combine the ideas of the artist with correct materials for each product.

The three main things that Cadbury’s take into account when packaging is involved are as follows:

o The good quality reputation that Cadbury’s has need to be kept.

o Only two things judge the product and quality the appearance of the product and the taste of the product over all.

o The amount of products that Cadbury sell is very high; this needs to be maintained when the product goes to the shops shelves.

Cadbury’s packaging must protect the product when it is in transport as well as when it is on the shop shelf but at the same time it needs to be attractive to the customer’s eye:

* Protect

The product it’s self may have to go through a lot during transport so the packaging needs to be durable so that it can with stand the damage it may have to with stand. The products packaging must also be able to with stand a lot, this may include things like sudden changes in temperature, or foreign odours, but at the same time the packaging needs to be attractive so that the customer will buy it.

* Contain

The packaging must be made to be able to hold the product it is supposed to be protecting.

* Display

The product itself will be on display in front of a lot of people when it is the shops so the design on the product packaging needs to be right for the product.

* Sell

The packaging is what sells the product, the packaging needs to be convincing to the consumer and make them feel that they want to buy the products again; the packaging needs to therefore be attractive and noticeable.

Cadbury’s often see the packaging to be just as important as the product itself and go to a lot of effort to make sure that just as much effort goes into the product as what goes into the packaging. For example the Cadbury’s Milk tray the product packaging is seen as just as important as the product inside itself. But this is only a very small part of Cadbury’s production and they spend annually �23 million and this is just for the packaging for the chocolate and special ranges for example Eater eggs and the Milk trays etc.

External Influences:

SWOT Model:

SWOT analysis is the focus upon the strengths, weaknesses, opportunities and threats facing a business internally and externally. The internal element looks at current strengths and weaknesses of our company. The external element looks at the opportunities and threats present in the business. Carrying out SWOT analysis, we have researched into organisations current and future position. As a result of carrying out SWOT analysis, we should go on to develop polices and practices that will enable it to build its strengths, minimise its weaknesses, seize its opportunities and take measures that will cancel out or minimise threats.


* New, innovative Product.

* Location of the business based on the customers needs.

* Quality processes and procedures.

* Good and management team.

* Large target market.


* New product so need to advertise, expense increase.

* Lack of marketing expertise.

* Might face with cash-flow problems for the first few months.

* High number of competitors.


* Sponsorship for events.

* Diversify into a new and different market

* Try to change the taste of consumers.

* Expand Internationally.

* Promote using large marketing strategies.


* Cadbury’s main competitor Nestle launching a new product.

* More companies diversifying into the chocolate.

* Recession might lead us to poor demand in the economy

To develop winning strategies, the firm must consider its strengths and weaknesses that were identified in the SWOT analysis. Knowing in which areas the company excels, specific strategies that are centred on the company’s strengths can be written for each marketing objective. It is important that strategies be written for each objective and not included as a separate portion of the plan. This forces the planner to specifically indicate the ways the objectives will be met. Assigning a strategy to link each external objective requires the planner to fully explain how the objective will be achieved taking in mind on how it will be based on the SWOT analysis. It is also important that the strategy is clearly tied to the objective.

Strengths of the company are the key elements to launch a new product. The strengths are basically the new product, the place and the management tactics. These key elements will help my product to succeed in terms of customers needs. New product will bring excitement and enthusiasm for customers which will attract the customers to the new product. However the weaknesses of the company’s are also there to push customers away from the product. It is the race between us and our competitors. Customers go where the prices are low. To keep high number of customers the price of the product should be kept low. This can also lead to low budgets and cash flow problems, taking this in mind the marketing strategies should be created by undertaking these points. In order to resolve these problems marketing strategies should be used which are stated above in this report, which is to basically keep prices low including low production cost then slowly raise the prices.

It is also important to take the advantage of the opportunities which are gained and help them improve the product using the strategies based. This also helps expand the firm nationally, by giving what the customers want. Threats should also be taken into mind; this also stops the development of strategies. If there is a decline in product then it is important to evaluate these threats and the reason of rejection. The existing marketing strategy should be then improved.

PEST Model:

One of the useful ways of analysing an organisations external environment is by grouping external forces neatly into four areas using a PEST analysis.

The market uses the PEST analysis as one of there:

P is for Political

E is for Economic

S is for Social

T is for Technological

Pest analysis involves identifying the key factors external to an organization that are in a stage of change and that are likely to have an influence on the business in the coming months and years. An effective PEST analysis will be based on detailed research using all the latest journals and publications

Political Factors

The political arena has a huge influence upon the regulation of businesses, and the spending power of consumers and other businesses.

Economic factors

Though the economic environment us influenced by domestic polices, it is also dependent upon world economic trends. Rates of economic growth, influences consumption patterns, income distribution and many other economic trends determine the nature of products and services required by consumers well as how difficult it becomes to supply them.

Social Factors

There are a high percentage of people in the UK who eat chocolate and other snacks. Women and children eat the most chocolate in the UK. In the UK the kids now days have more money to spend and this is spent on chocolate and other snacks. People these days don’t really bother about the fat in products. There is more stress these days with work and other things, this makes more people want and demand for more chocolate. There is a high population of children in the UK, which means a high percentage of kids buy chocolates.

Technological Factors

Companies have the ability to sell their products over the Internet. There are different costs of chocolates in other countries, so this can be a disadvantage to the UK as other countries might sell it for a cheaper price. The Internet is useful for Companies as it can advertise on its web site and give out information to students. The industry is also changing as computers have become more popular, many people use computers. Without information technology, businesses large or small cannot remain competitive.


* Changes that takes place in the tax structure.

* Privatisation

* Trade restrictions and tariffs.

* Changes in the availability of raw materials.

* Duties and rates.

* Pricing regulations.


* Inflation rates.

* Unemployment

* Price instability

* Exchange rates.

* Economic growth rate.

* Energy prices.


* Consumer lifestyles

* Environmental issues

* Demographic issues

* Education

* Immigration

* Religion issues

* Population in the country.

* Career attitudes


* Technology developments.

* New product development

* New places to sell

* Automation

* Impact on cost structure.

* New ideas and models.

Boston Matrix:

Boston Matrix is a well known tool where the products are classified according to their positions on two dimensions: one is concerned with relative market share and the other with market growth rate. Market share is used because it indicates the extent to which the product’s cash requirements. The measure of market share is the product’s share relative to the largest competitor. It is important because it reflects the degree of dominance by the product in the market.

The Boston Matrix is divided into four categories which are shown below in the table.

Question Mark

These are products with a low share of a high growth market. They consume resources and generate little in return. They absorb most money as you attempt to increase market share.


These are products that are in high growth markets with a relatively high share of that market. Stars tend to generate high amounts of income.

Cash Cows

These are products with a high share of a slow growth market. Cash Cows generate more than is invested in them.


These are products with a low share of a low growth market. They do not generate cash for the company; they tend to absorb it, which shows a negative effect.

Question Mark: This is a product that has not yet achieved a dominance market position and therefore has a high cash flow. It will be higher use of cash because it in a growth market.

Stars: It is a new product that has achieved a high market share and is probably on balance, more or less self-financing in cash terms.

Cash Cows: These are the leaders in the market where there is little additional growth but a lot of stability. These are excellent generators of cash.

Dogs: These have little future and are often a cash drain on the company. They are candidates for divestment, although such products often fall into category.

Ansoff Matrix:

The effective company is that who plans for their growth, and in terms of its product strategy seeks to plan its product portfolio well in advance in terms required or determined by product policy. It gives four main market opportunities which are available to an organisation.

Existing Product

Market Penetration

Market Development

New Product

Product Development


Market Penetration: This will involve keeping existing customers and finding new ones on the same market. However, pricing and promotion will have to be very competitive, because other suppliers are not just going to sit back and let us take their business.

Market Development: This involves finding new users for the product. This might mean going further a field geographically, opening up new markets segments, or findings new applications for the products.

Product Development: This would involve modification of existing products to improve their quality the style or any characteristics are valued by customers. The ultimate goal would be to increase sales and profits or reduce production cost.

Diversification: This involves new products, which includes high risks as well. A high and effective strategy is needed to tackle this type of feature.


Reviewing the work that has been already done I managed to carry out two types of research at early stage. The two types of research were Primary Research and Secondary Research. To assist my marketing strategy that I will use in order to promote, launch my product I require to check the validity of the research that I have collected. In order to support my marketing strategy which is to keep the price of the product low then slowly rise it as the product processes I require to support my marketing research which can be done by implementing different types of research.

While carrying out the questionnaire I feel my questionnaire was sufficient no person ever ticked other which means a successfully gave them all there wanted options. The only thing I would change if I could would to release this questionnaire on a wider range of ages not just mainly on 12-20 where my product is now probably going to be aimed.

Market Research Results:

I collected to lots of market research one was in a survey sheet and another in a questionnaire. I will not analyse my results and make decisions on different areas. First I will start with my survey sheet.

From the survey sheet results I learnt: The average price for most chocolate bars is about 35p. This may be useful and I may decide to charge this on my product. The average weight of a chocolate bar is 50g. This may also be helpful as I may choose to aim my bar to weigh around the same. However we also learn that the Mars bar and Snickers exceed this weight by a little bit and is all highly successful products. We learn that most brand launches tend to advertise through the TV which is very good. Cadbury’s use the soap coronation street as an extra advertisement as it shows a different Cadbury brand for different days of the week. Not many products actually have any special features. There are not many low fat bars also this may be lead I should follow.

The survey sheet is a great tool to lead me into the right direction however I think the questionnaire results will be a lot more certain and reliable. Guessing trends from other brands will not always be reliable as asking the consumers there needs and wants.

Analysing the Questionnaire results:

From the questionnaire I have learnt that:

Favourite Chocolate Type:

Reviewing the questionnaire results state that the maximum number of people like Mars bar as it is doing exceptionally well this shows that the want for Cadburys is less which means Cadburys should try to launch something different. The questionnaire also shows that 35 numbers of people agree with the launch of the new product with new ingredient, which means this is a positive point for Cadburys to launch a new and healthy product.

Favourite Packaging type:

I have discovered from this questionnaire that the packaging of the product also matters. Clearly there is more to a product or service that meets the eye. You cannot force the customers to buy your product; they must want the benefits the purchase will bring them which appeals the most companies. The Cadburys should choose its customers rather than wait to for customers to choose them. It is knowledgeable that enables a company to offer a more attractive package than its competitors. The colours would be based on the health matter where I think the colours should light and slightly colourful, this should also contain excitement as it is dealing with a new product.

First of all I think that in order to keep in competition with our competitors our prices should be at about the same as theirs, which is about 35p. This means we will not lose custom for price.

The more weight in a chocolate bar the more expensive it is. Also as an alternative to questionnaires, I could have gathered my market research through phone surveys, interviews, or consumer panels. Whilst these methods would also provide similar results, they would take longer or cost more, so I have not focused in so much depth on these aspects. This is why instead, I produced a questionnaire.

Evaluating the Marketing Model:

The marketing model has been described above, where all the company’s marketing objectives have been discussed. Then the next aim was to gather data to hypothesis on how these marketing objectives can be achieved. The hypothesis was carried by implementing on different marketing strategies and marketing principles, which gave the Company an overall idea of how to behave with customer and their needs, how to communicate effectively to satisfy its customers expectations. Using the Boston Matrix graph and by collecting intense marketing research through the questionnaire and analysis I can now measure that Cadburys has met its marketing objectives successfully. By the help of the magical 4p’s and their marketing strategies the outcome of these features and also the results from the questionnaire tells us that Cadburys was successful launching the new chocolate. They managed to give their customers want they wanted through the use of their successful marketing strategies.

Evaluating my External Influences:

When evaluating external influences, it is important to be systematic. I need to ask myself whether my chosen company’s current strategies make sense, given its SWOT analysis if they do not, what changes need to be made. Looking at my SWOT I have stated all the strengths and weaknesses above all, link any strategic recommendations you may make to the SWOT analysis. State explicitly how the strategies you identify take advantage of the company’s strengths to exploit environmental opportunities, how they rectify the company’s weaknesses, and how they counter environmental threats. Also, do not forget to outline what needs to be done to implement your recommendations.


A spell check and a grammar check were done to show that there were no spelling mistakes. It gives a grammar check grade which is 9.7 that means the document is easy to read.


The following sites were used to gather some information about the Cadburys and marketing.





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