Cadbury Positioning Strategy

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  • Topic: Marketing, Research, Marketing research
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Cadbury Snaps - New product development with a twist!

Key Learning Outcomes
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Innovation at Cadbury Ireland New Product Development Market Research The Launch Strategy for Cadbury Snaps The Marketing Communications Mix

Introduction
Cadbury Ireland is the leading supplier of confectionery on the Irish market. The company is a subsidiary of Cadbury Schweppes plc, a global leader in the confectionery/beverages market. Operating in Ireland since 1932, Cadbury Ireland has three production plants: two in Dublin, one in Coolock and one in Tallaght - and the third plant is in Rathmore, Co. Kerry. Cadbury prides itself on its market leading brands such as Dairy Milk, Snack and Creme Egg.

Curriculum Links
Business (Unit 5) Transition Year

Business 2000
Tenth edition

There are many great ideas – many of them generated by chance. However, only few products make it through to the end of the process. The further a product goes through this process, the more expensive it becomes. As products progress, the company is making an increasing commitment in terms of resources. Once a product is developed, the launch marketing costs are significant; so a company must carry out extensive market research to ensure a product has the best chance of appealing to the market.

Market Research
The company continually strives to drive innovation within the confectionery category and offers its brands in a variety of formats and pack sizes, relevant to today’s changing consumer environment. Critical to this success is innovation in the development of new products and brands. Gathering information can be done by either desk or field research. Market research is the gathering, recording and analysing of information about markets and their probable reaction to product, price, distribution and promotion decisions. Market research is critical for successful NPD and marketing mix planning.

Background to Cadbury Snaps
One of the growing occasions in recent times has been ‘in-home evening entertaining’. People are spending more time at home entertaining informally, particularly in the evening time. For example having a group of friends over in the evening to watch a DVD or having a ‘girls night in’ have become more popular. For these types of occasions, people are looking for a product that is in a format that is easy to share and contains enough pieces in the pack for everyone. Cadbury Snaps are individual chocolate curves, available in a variety of flavours. There are approximately 40 curves in each pack. With so many pieces in each pack and with Snaps available in a variety of flavours, Snaps are an ideal chocolate sharing product.

Desk research involves analysing all the internal and external information available. Field research is done by contacting consumers either using surveys, questionnaires, feasibility studies or sampling, among other methods to get primary data from the target market. There are various ways of carrying out market research:

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Do it yourself: For small companies with limited resources. Market research department: Very large organisations may have their own dedicated market research department. Market research agencies: These companies specialise in market research. Research may be done with the collaboration of the company’s marketing department, but fieldwork will be carried out by the agency.

New Product Development
The development of successful new products is one of the ways in which companies can achieve competitive advantage. New Product Development (NPD) is a process which carries a great deal of risk - over 40% of all new product introductions fail at launch! For NPD to be effective, companies have to nurture an innovative corporate culture so that everyone in the organisation is encouraged to be innovative in their work. Cadbury takes innovation very seriously and it is a major part of Cadbury’s strategy for success.

Stages in the marketing research process
1. Define...
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