Cadbury: the Study of Consumer Behaviour

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Consumer Behavior (MKTG2101)

Background of Cadbury Company
''There's one product that sells in good times and bad - a bar of chocolate”. It has been an axiom of Cadbury Company for generation. Today, the company which was opened in 1842 by John Cadbury, Is the global leader in the chocolate confectionery manufacturer. The beginning of Cadbury journey is when John Cadbury opened up a shop in Birmingham and sold coffee, tea, drinking chocolate and cocoa. In the later stage, John’s brother Benjamin joined the company in 1842 and opened an office in London and received Royal Warrant as manufacturer of chocolate and cocoa to Queen Victoria in 1854. After six years, John got problem about his health and his wife was death so they left their business and company to their sons George and Richard. The brothers was also dissolved their partnership at the same time. George and Richard continued to develop the product line, and by 1864, they were getting an early profit. By this time, Cadbury’s Cocoa Essence which was an all nature product with pure cocoa butter and no starchy was introduced to people. After which, the brothers soon moved their manufacturing operations to a larger facility four miles south of Birmingham and the factory and area was known as Bourneville. With a success in chocolate, George and Richard stopped selling tea in 1873 and master confectioner Frederic Kinchelman was appointed to share his recipe and production secrets with Cadbury workers. Moreover in two years time, the factory employed more than 2,600 people and was incorporated as a limited company. In 1969 Cadbury merged with Schweppes which was a large British brand that supply mineral water and soft drink and the company was know at Cadbury Schweppes. The merged companies would go on to acquire Sunkist, Canada Dry, Typhoo Tea and more. Schweppes Beverages was created, and the manufacture of Cadbury confectionery brands was licensed to Hershey. Today Cadbury Schweppes is the largest confectionery company in the world, employing more than 70,000 employees. In 2006 the company had over $15 billion in overall sales. In March of 2007, Cadbury Schweppes announced that it intends to separate its confectionery and beverage businesses. With almost 200 years in the business, Cadbury Schweppes will continue to prosper in the coming decades. Theories Used

The whole paper will discuss about the model of motivation, arousal of motives , hierarchy needs of Maslow’s, ELM (elaboration likelihood model ) and how these theory and model apply to the improvement and expansion of Cadbury company to better understanding about their consumer behavior. First of all, motivation is basically defined as the driving force within individual that impels them to action. According to the model of motivation process (Schiffman et al, 2008), when people need, want and desire are unfulfilled, they tend to feel tension. After that it will drive people to the direct behavior through their thinking process and previous learning until their need is fulfilled (Schiffman et al, 2008). On the other hand, most of people specific needs are dormant much of the time. The arousal of any particular set of needs at a specific point in time may be caused by internal stimuli found in our physiological condition or our emotional or our cognitive process or by external stimuli in environment (Schiffman et al, 2008). One of the well know theory of human motivation was developed by Abraham Maslow which interpret how customer perceive satisfaction about goods and service at different level of needs. According to Maslow, there are five basic level of needs which are physiological needs; safety and security needs; social needs; ego needs; self-actualization. The theory is showed that human seek for the satisfaction from lowest level first (physiological) such as food, water, air, clothing, sex. After the first level of needs is satisfied, people will seek to higher level of needs which is...
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