Cadbury channels, access and distribution levels

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Marketing Principles: Trading and Exchange

CADBURY: Channels, Access and Distribution Levels

Purpose of a network and marketing channel

¡ Value network is a system of partnerships and alliances that a firm creates to source, augment, and deliver its offerings

¡ The domestic manufacturing sites are situated at the following locations:

1. Claremont Tasmania

- At this site Cadbury manufacture boxed chocolate assortments, moulded chocolate blocks, chocolate confectionery bars and food drinks for the retail and industrial markets.

2. Ringwood Victoria

- At this site Cadbury manufacture confectionery bars and bar pieces, filled and hollow chocolate novelty units for children and the Easter and Christmas events as well as a range of industrial chocolates and compounded chocolate.

3. Scoresby Victoria

- At this site Cadbury manufacture a range of sugar and caramel based confectionery and licorice product for both the retail trade and industrial customer.

¡ The Cadbury brand has also been licensed to other selected food manufacturers who produce and distribute their range of Cadbury products, notably ice cream. These licencees are responsible for their own Covenant Action Plans.

¡ Cadbury does not sell their goods directly to the final user; between them stands a set of intermediaries performing a variety of functions

¡ Service establishments in particular supermarkets, convenience stores, deli's, petrol stations etc are highly involved marketing and distribution channels as this is where the target market exists. With these establishments, Cadbury products are made widely available and accessible to the main target markets

¡ Marketing channel performs the work of moving goods of producers to consumers (see figure)

¡ A manufacturer selling a physical product and services might require three channels: sales, delivery and service

¡ Cadbury use Sales Managers and Reps as sales channels, telephone, email and face to face as delivery channels and again Reps and Merchandisers for the setting up and display of products and promotions as service channels (with regards to the supermarkets)

¡ Wholesalers are a vital part of the supply chain for independent outlets and eventually the consumer.

¡ Cadbury uses intensive distribution method, as it attempts to place its products in as many establishments as possible.

Factors that influence the design and management of marketing channels

¡ Consumers are motivated by the presence of brands, they expect to see them and want to buy them

¡ Cadbury products are primarily available in supermarkets and convenience stores and display remains one of the key areas for development not only within these to channels, but also independent retail

¡ Confectionery requires a great deal of consideration when optimising displays so Cadbury has created the 'Go Another Cadbury' bespoke display solution to address merchandising opportunities in the impulse trade channel.

¡ Cadbury studies, in recent years, show that the confectionery industry has shown the effects of an increasing move by consumers towards convenience shopping

¡ Convenience shopping is being able to convert customer footfall into purchases. This can be achieved by ensuring confectionery is placed in high traffic flow locations, combined with displaying with other products, such as newspapers and magazines in addition to hot-spots at the till point

¡ Displays which have impact supported by effective point of sale and clear signage all influence impulse buys

¡ Within the convenience channel, forecourts play an important role and Cadbury confectionery continues to be a valuable category

¡ With the advent now of Cadbury vending, innovation is now at the forefront of its business drive and is directly working with machine manufacturers to create new vending options

¡ The development of multi-channel machines has provided vending operators (pubs, TAB's, Universities etc) to...
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