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Davina Chawla

Unit 3 ' Marketing  Assignment 1

Introduction to Marketing ' Unit 3

PASS: P1:

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

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.

Relationship marketing

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.

Davina Chawla

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.

Brand positioning

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.

Relationship marketing

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/

diversification

Cadbury They began their

campaign with the

gorilla advert and a

glass and a half full

production. These

adverts were promoting

their chocolate bars,

which were already

available to existing

customers. They also

became the most

recognisable

advertisements.

Cadbury then

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

shells.

They then further

expanded their company

though entering different

markets, like India. They

began their operation in

1948, with their

corporate/head office in

Mumbai.

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

Cadbury eliminate

some of their

competition, which

enabled them to

increase their market

share.

NHS The NHS provide

several health facilities

for their existing

customers. This

includes a variety of

operations, advice,

emergency services and

medication for

treatment. Information

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

to prioritize

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

Switzerland, recently.

This means people who

are migrating to England

from outside the UK are

able to access NHS

services.

The NHS has joined

some of its hospitals

with a leading private

healthcare company.

They began the new

establishment with

Harley Street at

University College

Hospital (UCH) in

2006. After the success

of the first

partnership, they

introduced Harley

Street at Queen's as

well as the launch of

The Christie Clinic in

2010.

Davina Chawla

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'

in Delhi.

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

Davina Chawla

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

effective.

Ansoff matrix

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.

Branding

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

Branding 5

Relationship marketing 3

Survival strategy 4

Davina Chawla

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.

Market relationship

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.

Survival strategies

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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