Unit 3 ' Marketing Assignment 1
Introduction to Marketing ' Unit 3
Marketing is how businesses are able to promote their goods or services. There are several strategies of promoting;
including adverts, billboards or campaigns. These are ways companies attract customers and convince them to use
their product or services. Marketing is vital for companies to survive. Businesses are able to generate more
awareness and promote their company using different strategies.
Businesses are classified in different economic sectors; private, public and voluntary sector. Therefore, businesses in
these sectors will have different marketing campaigns. For example, a business in the public sector includes Cadbury.
A service in the public sector consists of the National Health Care (NHS). The NHS is very diverse to Cadbury. Cadbury
is a profitable company and ultimately desires to grow and expand through the use of marketing combined with
other methods. Whereas, businesses in the public sector are likely to have ambitions to improve the welfare and
well-being of people.
Cadbury is one of the large confectionary company in the world. Their main product is chocolate, which is developed
in various forms like; bars, selection boxes, ice-cream, beverages and biscuits. The name Cadbury was the surname
of the founder John Cadbury. As a business in the private sector, their aim is to generate maximum profits and
create the biggest market share. They achieve this through several types of marketing methods.
Brand positioning helps customers get to know a business and aims to make customers perceive their brand in the
way businesses want them to. Cadbury has changed their slogan various times. The original and most recognisable
slogan includes; 'a glass and a half'. This refers to the amount of milk contained in a bar of chocolate. The Cadbury
slogan reveals a bit about the quality of the product, this shows they are trying to produce a good reputation.
Cadbury recently changed their tagline to 'free the joy' and then to 'tastes like this feels'. From these slogans they
are focusing on the enjoyable experience of eating their products to evoke different feelings. They want customers
to believe their products are unlike others. Slogans are good ways to encourage customers to remember the brand
name and give them an idea of what the business is like.
An essential part of marketing is relationship marketing. Relationship marketing is a technique to gain customer
loyalty. This enables customers to keep returning and become regular customers. Therefore, they are more willing to
try their new products. Businesses such as Cadbury aim to undertake the long process of relationship marketing to
enhance their profitability, rather than transactional marketing. Transactional marketing is a way of maximizing sales
on promotional offers by focusing on a single sale. This could be good to get an immediate boost of sales in a short
time period. This is unlike relationship marketing as an ongoing relationship is not developed.
Alternatively, The NHS is a service provided for the public. They provide healthcare to people living in the UK and is
generally free to everyone. Some services available includes emergency services, operation facilities and treatment
for various diseases. Unlike Cadbury, or any company in the private sector, their main objective is to help people.
They are not set up to make a profit. The company runs on tax payments.
The NHS does not earn any profits; however, they do have to build a brand image as they still have competitors.
They compete to provide a better service. This can be seen as positive as these companies are trying to be the best
they can be. They aim to provide a positive experience for all patients.
The NHS should also have a strong brand positioning. They are one of the largest funded healthcare services and the
easiest to access. They should have a positive image in the view of the customers when they hear their brand name.
As soon as customers think about the NHS, the company would want their thoughts to be positive such as reliable
and trustworthy. People in the UK also pay taxes towards the NHS, so they would want people to see that it is worth
putting money towards the healthcare organisation.
Similar to Cadbury, the NHS would want to produce relationship marketing, as it has a good long-term effect. This
company would want to ensure patients can always rely on the NHS if they ever need healthcare. This will be
especially useful for people who are in need of emergency care, as they know they have a company they can rely on.
The table below compares different marketing strategies, from Ansoff matrix, undertaken by both companies. Ansoff
matrix is a method which helps companies plan their future growth strategies. there are four stages.
Organisation Market penetration Market development Product development Differentiation/
Cadbury They began their
campaign with the
gorilla advert and a
glass and a half full
adverts were promoting
their chocolate bars,
which were already
available to existing
customers. They also
became the most
developed several new
products after its brand
was established, which
created a brand
extension. For example,
they produced new bars
with sweets contained
in them such as jelly,
popping candy and
They then further
expanded their company
though entering different
markets, like India. They
began their operation in
1948, with their
corporate/head office in
Cadbury then went on
to merge with
Schweppes in 1969, to
grow further. This was
a risky decision,
however as they are
both trusted brands,
the merge helped
them to increase their
profit. Merging helped
some of their
enabled them to
increase their market
NHS The NHS provide
several health facilities
for their existing
includes a variety of
emergency services and
regarding this can be
seen on their website
and on leaflets.
The NHS created a new
emergency help line;
111, in 2014. They
developed this system
for when an emergency
is less urgent, this helps
emergencies. This will
also help patients get
the correct medical care
efficiently and make full
use of the service.
The NHS has been
introduced to people
living in European
Economic Area (EEA) or
This means people who
are migrating to England
from outside the UK are
able to access NHS
The NHS has joined
some of its hospitals
with a leading private
They began the new
Harley Street at
Hospital (UCH) in
2006. After the success
of the first
Street at Queen's as
well as the launch of
The Christie Clinic in
MERIT: Comparing marketing techniques:
Both of their marketing strategies have proven to be successful even though some problems emerged.
Product development is offering existing products to new customers. Gaining more customers is always positive,
especially for companies aiming to maximise their profits. Although, this is a risky decision as many people would
already have loyalty to other brands and competitors have previously generated brand awareness. Therefore, the
company will be very new to customers, causing them to be apprehensive about using the new business.
Fortunately, for Cadbury, expanding their business into another country helped the company gain more recognition
from other parts of the world. India has one of the fastest growing economy with over one billion people, so they
saw a potential market where they could experience more growth. They manufacture and sell Cadbury product all
over the country. They also launched their own advert campaign, including an actor who is well-known amongst
many people in India. Along with this, they introduced their own slogan, which relates to many people. This
expansion was proven to be success as it recorded the highest growth in 2010 at 30 percent and continued to grow
to 40 percent in 2011. In 2011 Cadbury also maintained 70 percent of the market share in the chocolate market. This
was according to a report by 'Technopak Advisors Pvt. Ltd', which is a 'retail and consumer goods consultancy firm'
Similarly, the NHS decided to make their services available to a new market as well. They provide the NHS to people
from the EEA, this is aimed at students of temporary migrants, which was introduced in 2015. People coming to the
UK for a period longer than 6 months will be expected to pay a fee of ''200 a year. However, students will pay a
lower fee of ''150 a year. They will then have free access to several facilities, including; GPs, pharmacies, dentists,
walk-in centers and 111 calls. Although they could be charged for prescriptions or dental treatment, just like British
residents. The 'Department of Health' revealed the payment will go towards regaining '500 million a year by 2017
to 2018'. The fees were also put in place to make it fair for everyone who use their services, since the British public
also pay through their taxes. The UK had paid ''647 million to other countries for treatment, while the UK only
received ''49 million from other countries, revealed by the Full Fact organisation. Although, this may seem as if it is
not a success, the development is relatively new since it came into operation in 2015. Therefore, it is hard to judge
whether it has been successful, at this point.
Marketing penetration enables companies to enter a market quickly and build a brand, so they can hold the biggest
market share. This process is completed by selling or providing existing products or services to existing customers
through the use of certain tactics. One of the tactics includes more promoting.
Cadbury uses television adverts to increase awareness of its existing products and in order to expand its company
and brand name. Cadbury is an international company so; television adverts are suitable as everyone all over the
world can get to know their company. Their adverts were proven to be successful. Most of their adverts are aimed to
promote their chocolate bars. They often include elements in their adverts which are unique, fun and could be seen
as crazy. For instance, Cadbury showed an advert which is now known as Cadbury 'Gorilla' advert, displaying a
gorilla playing the drums. The advert was shown in 2007. This advert cleared interested many people as they
experienced a 6 percent increase in sales. The advert had also been named as the favourite TV advert of 2007,
reported by The Guardian. Another advert, for promoting their Marvellous Creations range, consisted of the process
to make their chocolate bars but on a larger scale. They displayed their classic colours; purple and white, as well as
the iconic milk glasses. This makes the advert easily recognisable and reflects their brand image of being fun. This
also helps to make Cadbury stand out against other confectionary brands as they undertake a unique approach.
Therefore, they have created their own unique selling point (USP).
Whereas, the NHS is a national organisation run by the government and public, so they may not have as much
money to spend on large productions. There have been various campaigns to encourage people to donate blood.
The NHS launched a 'Missing Type' campaign in 2015, which included removing letters from famous brand names
and signs. They then relaunched the campaign in 2016, to reintroduce the message, due to a 40 percent decrease in
blood donation. This was publicised on social media such as Twitter. This type of marketing campaign raises
awareness by encouraging people to help the NHS, leading to them contributing in a positive way. The NHS also
presented their campaigns on billboards. The billboard showed the power of blood donations using 'augmented
reality'. The interesting use of technology makes the campaign more intriguing. It was aimed to give people an
insight of the satisfaction of donating blood in order to convince them to donate blood in real life. It also shows the
positive impact of blood donations for the people who are in desperate need. This could encourage people to use
their services as these campaigns show that the NHS are willing to help others, which looks good in the public eye.
Overall, these are all techniques any company can achieve as a way of surviving in the market. Businesses like these
try to do new things to keep customers interested and continue to build upon their companies' success.
DISTINCTION: Effectiveness of marketing techniques
With all of Cadbury's marketing techniques, there have been strengths and weaknesses with each one. Some of
them have been more successful than others. The table below shows, in my opinion, which technique is more
Cadbury used elements in the Ansoff matrix. This method was able to expand the business to a variety of different
people and create more product to provide for customers, this was the main outcome. People from different
countries now recognise Cadbury brand and can purchase their products. Therefore, they are able to build a higher
status of the brand.
In spite of this, product development and entering a new market is an expensive strategy, which can be damaging to
the business if it is not effective. Although, their marketing was successful in other countries, some people were not
happy with their strategies. When Cadbury joined with Schweppes, it was thought Cadbury was losing some of their
identity. They brought in lots of change with the products they sold, which took the focus away from their original
product of chocolate. Some people have felt that Cadbury has lost some of its Britishness due to mergers and
takeovers with US companies. Due to this both companies decided to demerge. This was to allow both companies to
focus on its own area of expertise and further expand on its own.
I would rate Cadbury's Ansoff matrix strategy a 4 out of 6 for effectiveness. This is because, despite, having changed
the company is some way, Cadbury still have a high reputation. Cadbury have also managed to become one of the
leading companies in the confectionary industry.
Cadbury have chosen to make some of their products Fairtrade, in 2009, which shows they are using their brand in a
positive way. Cadbury announced they had tripled the sales of cocoa, in Ghana, which helped to provide more
opportunities for farmers in developing countries. This shows that Cadbury is passionate about improving quality of
life for farmers as well as producing high quality products for their customers. It also reveals, they want their brand
to promote a positive message and look good in customers' opinions.
Even though they have had good branding, they have received some bad publicity, due to several changes to the
brand. For instance, Cadbury recently change their recipe for Cadbury Creme Eggs, by replacing the classic Cadbury
chocolate shell with standard and cheaper chocolate. Many people disagreed with this and was unhappy with their
new recipe, leading to less people purchasing this product. As a result, Cadbury lost 'more than ''6million in Creme
Egg sales', reported by The Telegraph. Another poplar product which was discontinued in 2014, was their chocolate
coins. This decision angered lots of people and was expressed on social media, especially Twitter. This choice was
made after customers tried to cut costs before Christmas, so they chose products from 'discount supermarkets such
as Lidl and Aldi', supplying their own version, revealed by the Independent. These new changes were blamed when
Kraft took over Cadbury, in 2010.
Technique Effectiveness (1'6)
Ansoff matix 4
Relationship marketing 3
Survival strategy 4
For their branding techniques, I would score it 5 out of 6. I think their use of Fairtrade gives them a competitive
advantage as well as showing they are more ethically responsible. This is hard to find nowadays with big companies
because large companies typically aim to make profit, even if it means exploiting others. However, some of their
branding strategies have caused controversy, weakening their brand image.
Cadbury use lots of techniques to keep the relationship with their customers long-term. This includes creating an
account on various using social media platforms. The most popular appear to be Twitter and Facebook. On these
sites, they share pictures, videos, news and updates. This is a fun way to interact with people and keep them
updated as getting information can get across to a wider audience immediately. In addition to this, they have a 'sign
up for emails' on their website. This also keeps customers engaged since they are likely to inform them of new
products and deals.
Although, they do not have a loyalty scheme available, often big brands offer these in order to encourage customers
to continue to return. This shows they are mainly relying on their brands products and values to convince customers
to use their products.
Their relationship marketing is quite strong. Although they may not have traditional loyalty schemes, they promote
their brands using technology. This is particularly useful for younger people who are the main users. Out of 6, I
would score relationship marketing a 3.
One of the main ways Cadbury have survived, is through their continuous new products. Cadbury only began as a
chocolate company, but now they have countless varieties of chocolates. This is essential for established businesses
with a strong reputation, like Cadbury, as it intrigues customers and makes them more willing to try new things since
they already have loyalty to the brand. They have managed to create chocolate in various other forms. This shows
they have entered different industries. They have done particularly well with their new products because they
continue to be unusual and very creative. They have joined their products with Philadelphia, Ritz Crackers and Daim,
which have received mixed comments.
A weak point about their survival strategies, includes a takeover between Kraft and Cadbury, in 2010. Some would
argue this was a bad decision. Cadbury's aim was to increase and expand their business further, however, there
were other negative knock on effects that occurred. In 2010 Cadbury was criticised as Kraft decided to close its main
factory in Somerdale. Therefore, it was estimated four 'hundred jobs were lost', reported by The Telegraph. Even
though their strategy of a takeover may have helped them to survive, Cadbury's reputation was under threat.
Out of 6, I would give Cadbury a 4 for their survival strategies. I believe this is suitable because they have kept their
customers interested and curious about what they might come up with, through their products. However, some of
their decisions have caused controversy, which has damaged their brand image.
I believe that Cadbury's most effective strategy was branding. This is because their branding appears to be the
reason why customers continue to return, leading to their business gaining international success.
Overall, after reviewing two very diverse companies, I have concluded that marketing techniques are used in many
different ways and for different reasons. This all depends on the type of business, especially for their aims and
objectives, due to their position in the economy sector. I have also seen that these strategies do not always become
an instant success, several problems do arise. Some strategies are more effective than others, which differs for every
business. Although, all businesses share common characteristics, in particular, the primary aim to develop a strong
relation between their customers.
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