Cadbury

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Cadbury's background
In 1831 John Cadbury founded his company Cadbury which has successfully covered and revolutionized the cocoa processing market since 1866. In 1969 Cadbury successfully merged with Schweppes. Today, internationally acknowledged as a reputable corporation with the acclaimed international status, Cadbury Schweppes PLC (hereinafter referred to as - Cadbury) successfully employs more than 50,000 people in 60 countries of the world. The company is strategically positioned as the fourth top supplier of sugar confectionery and chocolate in the world. The most successful product promoted by the company since 1905 is ‘Dairy Milk' which has become the most popular moulded chocolate in the UK as well as internationally acclaimed chocolate bar in terms of revenue. Overall, Cadbury's strategic success is due to three core pillars: high quality, sound advertising, and value for money. 1. Marketing Strategy Models

Cadbury strategically applies marketing models as a combination of activities to transfer its products to the end-customers. Vast variety of marketing activities requires proper management of to effectively promote products on the confectionary markets through marketing channels. In its strategic choice of appropriate marketing model, Cadbury emphasizes on such strategic issues: •Connecting Cadbury with customers;

Performing sales, promotions and advertising;
Impacting Cadbury's pricing strategy;
Influencing product strategy through willingness to stock, branding policies, and profit customizing. The selection of the most advantageous marketing strategy for Cadbury depends on a number of factors. Thus, marketing strategy should be perceived as the designated action plan which will help Cadbury to reach its strategic aims and objectives. Cadbury's long-term marketing strategy (based on Ansoff matrix) concerns the launch of new chocolate brands and their promotion on the global markets. Alternatively, the company should win more international markets through the manufacturing and exporting new products (e.g. cereal bars). Further recommendations concern the appropriateness of the strategic choices to be made by Cadbury in the nearest future. In terms of further strategic growth, Cadbury should apply Ansoff Growth Matrix while focusing on new products and perspective markets. Apparently, there is no need for Cadbury to advance and promote the existing chocolate products since they are already widely acknowledged in terms of quality and high reputation among the Cadbury's target markets. Appropriate marketing channels set up the strategy which enables Cadbury to win competition, avoid tactical mistakes, maximize profits and achieve success. Cadbury should therefore figure out how it measures success before it can go out and conquer it, whether it is market share, profit margin, return on investment, residual income, brand image, a reputation for being environmentally green, stock share price, or some other measure its stakeholders deem worthy. Most companies compete in the market by applying competitive priorities, including quality, cost, flexibility as well as other priorities, depending on their manufacturing capacity. Top management support is the major driver of quality management, which significantly correlates with other quality management practices. In addition to this, customer orientation is not significantly correlated with external quality results (profitability). At that, top management support, employee training, and employee involvement are the three statistically significant variables in explaining the variability in internal quality results. Cadbury's marketing channels are aimed at the consumer market. The company is focusing much on the needs and wants of the consumer and what exactly differentiates its products from the competition to develop more sales in this market. Thus, Cadbury is working on the promotion of its direct model to create a better position for itself in...
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