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Cadbury marketing strategy
Cadbury marketing strategy
Cadburys use of market penetration
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Product
My product is a re-launch of Cadbury dairy milk. Cadbury dairy milk is made from real chocolate. Its ingredients include cocoa butter and there is a glass and half full cream dairy milk in every 200 grams of Cadbury dairy milk chocolate, Cadbury buys 65 million litres of fresh milk each year to make Cadbury dairy milk chocolate.
Price
Price is an important element of the marketing mix. 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. Price is also affected by factors such as the state of the economy, what competitors are charging, the stage reached in the products life cycle and above all what price the market will bear. From the marketing point of view this is what matters.
Place
Cadbury dairy milk is produced at the chocolate factory in Bourneville in Birmingham. After the chocolate is produced and has undergone all the quality checks it is transported to the stockrooms. After this Cadbury sells it products to shops that deal with beverages and confectionery e.g. corner shops, super stores such as Iceland, Sainsbury, Kwik save, Tesco, Asda, Safeway and petrol station. These businesses are usually visited by customers on a daily basis.
They then sell it to the general public. Cadbury produces chocolate for more than 200 countries so that they have a chance to enjoy it as well and make profit.
This gives them a wide range of consumers around the world. Cadbury Schweppes therefore makes sure that the cultures of these different people are kept.
“His decision to focus on the production of the Hershey milk chocolate bar is now hailed as one of the most important decisions in the history of American business” (Milton Hershey 1). Certain aspects of Milton Hershey’s life are impossible to not take notice of. A simple chocolate bar completely changed the world of business, Milton S. Hershey impacted the world in a huge way.
Before Milton Hershey had a world wide known chocolate business, he had a small, not so well known caramel business. Milton Hershey began his chocolate making business in 1893, when his father and him traveled to Chicago to attend a big job fair (Tarshis 14), but it wasn’t until 1900 when Hershey succeed in making the first milk chocolate candy bar (The Hershey Company). Hershey attended an exhibit hall of new and amazing inventions around the world at the fair in Chicago. As Hershey walked into the exhibit hall, he was struck by a delectable smell (Tarshis 14). “Hershey was already a leading candy maker. He had created the largest caramel factory in the country, but he became convinced that the future of his business would be chocolate. At the fair in Chicago, Hershey Bought chocolate-making equipment. He had it shipped back to his caramel factory in Pennsylvania. Then he hired two chocolate makers. Soon the company was churning out chocolate candies in more than 100 shapes” (Tarshis 15).
The videos provided for this subject builds a great understanding on what happens behind the scenes and how the production cycle of chocolates turns deadly for few. The chocolate industry is being accused having legit involvement in human trafficking. The dark side of chocolate is all about big industries getting their coco from South America and Africa industries. However, it is an indirect involvement of Hersheys and all other gigantic brands in trafficking (Child Slavery and the Chocolate Factory, 2007).
Claire’s Chocolates has a mix of quality, hand make chocolate products sold individually, in varying sized gift packs, and boxed chocolate. As well, the organization sells a variety of hot chocolate drinks for the chocolate connoisseur, along with quality coffees and teas. Each hot beverage is accompanied by an individual chocolate product and this also allows the customer to taste and experience a unique chocolate product first, before potentially purchasing it at a later date.
You all know the Chocolate Company: Hershey's; but where did it all begin? As with Walt Disney, it started with a dream. A dream that a certain person could rule the candy market. This certain person is Milton Snavely Hershey. Milton Hershey founded Hershey’s Chocolate Company in 1900. Did you know that his first product wasn't chocolate? No, he created and sold many other confections; his greatest being caramel. His highest achievement of all was creating the world's largest candy manufacturing company today. Milton S. Hershey learned most of his work from Joe Royer, the owner of an Ice Cream Parlor and Garden. Joe Royer taught Milton for four years until he quit. Milton didn't quit because he didn't like the apprenticeship. No, he quit to start his own confectionary business. Milton S. Hershey gave this world a company that changed the way we see chocolate today.
Chocolate is made from the seeds of the tropical tree, Theobroma cacao. Theobroma is the Greek term for 'food of the gods.' In Aztec society chocolate was a food of the gods, reserved for priests, warriors and nobility. The Aztecs used cacao beans to make a hot, frothy and bitter beverage called chocolatl. Chocolatl was a sacred concoction that was associated with fertility and wisdom. It was also thought to have stimulating and restorative properties. The bitter drink was first introduced to Europe in 1528. However, it was not until 1876 that milk, cocoa powder and cocoa butter were combined to form what we now know as chocolate (1).
Cadbury must be able to create or revise a marketing mix that would keep a strong stand in the market against the big competition from Nestle and Hershey who both have very successful campaigns for their chocolate products.
...nerally a more healthy people. Milk has many hazards that are veiled from the public and pose many grave risks to a consumers health.
Hershey’s takes advantage of many different types of advertising. Television commercials and ads are very common. Sponsorships is also another very common way Hershey advertises. Hershey sponsors everything from ice skating shows, to racecars. The Hershey Food Corporation is very competitive so they need this type of advertising. However, the only other major corporation to compete with is Mars. The chocolate industry is diffidently not pure competition. Mars and Hershey’s form an oligopoly. Hershey’s has so many different kind of products that they have a lot of competition. The company has branched out to where they’re not only competing against other chocolates but also for fruit candies, and baking chocolate and chocolate drinks as well. The fact that so many products are offered, extends the corporation to different divisions. Mexico and Canada have manufacturing plants. Seventeen manufacturing plants include Hershey, Pa (Hershey plant, Reese plant, West Hershey plant0, Hazleton, PA, Lancaster, PA, Memphis, Tenn., Naugatuck, Conn., New Brunswick, NJ, Oakedale, CA, Palmyra, PA, Reading, PA, Robinson, Ill., Stuarts Draft, VA, Wheatridge, CO, Dartmouth, Nova Scotia, Montreal, Quebec, Smiths Falls, Ontario, and Guadalajara, Mexico.
Milk is a common drink at any time of the day, and undeniably one of the most popular. Milk does not come in just a liquid form, it is also included in many different foods. When asked about milk most people will say it is good for your bones, supplies calcium, and comes from a cow. Although milk does give the body calcium which allows less to be absorbed from the bones, pasteurization takes out many other vitamins that could help the body (Historical). This includes thiamine, vitamin B12, and vitamin C. And actually while all milk is based on the original look of cows milk, not all milk comes from cows. Today there are five classifications of milk: Whole, 1% or 2%, fat-free, lactose free, and organic. The biggest advancement for milk has been in the lactose-free area where soybeans, coconuts, rice, and other nuts are used to create the white substance (Mattie).
(Preview Speech) Chocolate goes through the harvesting of the cocoa bean, to the processing at the factory, to even more processes to finalize the product.
Chocolate is a sweet food preparation made of cacao seeds in various forms and flavors. It has large application in the food industry and can be consumed either as a final product or as a flavoring ingredient for a great variety of sweet foods. Its primary ingredient – cacao, is cultivated by many cultures in Mexico and Central America as well as in some countries in West Africa, such as Cote d’Ivoire.
Abby Willow once said, “The average American adult consumes 11.7 pounds of chocolate every year- that's the weight of about 6 pairs of shoes!” With so much consumption of chocolate by Americans, it is crucial for the numerous brands to advertise their products in a manner that could potentially dominate their competition in sales. There are endless ways for a company to draw the attention of an audience in order to take over the competition of chocolate sales. Advertising is a key aspect as to how successful a brand may be when compared side-by-side to a similar product. While Snickers and Reese’s Peanut Butter Cups are similar, they are also different; the differences are significant because they demonstrate how some competitors choose to go above and beyond for their advertising while others opt to take a route that is of a more simplistic nature.
Growth of the chocolate industry over the last decade has been driven in large part by an increasing awareness of the health benefits of certain types of chocolate. Chocolate consumers are considerably price insensitive. Except in rare circumstances consumers are willing to purchase what they consider an “affordable luxury.” Chocolate is one of the most popular and widely consumed products in the world, with North American countries devouring the lion's share, followed by Europe
However, after large amounts of pressure from environmentalists, households and then businesses refusing to stock Cadburys chocolate, Cadburys finally conceded and moved back to the old recipe. The marketing director Matthew Oldham said, ‘At the time, we genuinely believed we were making the right decision, for the right reasons. But we got it wrong. Now we 're putting things right as soon as we possibly can, and hope Kiwis will forgive us’ (CHECK WHEN HE SAID THIS)