Cadbury Company’s foundation dates back to 1824, when its pioneer, John Cadbury, established a small shop in Birmingham (www.iconinc.com.au, 2017). He started out selling drinking cocoa, chocolate, coffee, and tea in the small shop. However, the company has grown over the years to become one of the leading and largest confectionary companies in the world (www.iconinc.com.au, 2017). Its employee base ranks at 70000 workers who are spread in more than 200 countries that the company operates in. This paper aims at extensively looking into Cadbury Dairy Milk’s market, its E-marketing strategy, as well as giving recommendations that can help it maximize from its digital marketing.
Apparently, Cadbury is one of the leading global confectionary brands with a market share of approximately 70% that it has maintained for a relatively long time (SIMCON Blog 2015; Saxena, 2008). In addition, the company has a well-established brand name, brand equity, and brand loyalty that has, for a long period, enjoyed a positive repute (Haseeb, 2015; Bhasin, 2016). Again, Cadbury adopts a very aggressive marketing approach with well-established distribution channels. Finally, it has expansive experience and financial resources.
Firstly, there are negative teeth implications and decay associated with chocolate consumption. Secondly, the company has faced some challenges in penetrating into the rural segments of its target market (Swanson, 2015). Thirdly, the company has in the past suffered from some of its products’ recall. Finally, some of its advertisements have featured worms and this has eventually caused public uproar eventually tarnishing its name.
The emerging technologies present Cadbury with an opportunity to innovate new methods of production as well as distribution into the rural areas. There has been an increasing acceptance of the confectionary sector. Again, there are untapped markets that the company maximizes on including the rural areas. Finally, it has the ability to expand its product offering.
The company faces a lot of competition from other market players such as, Nestle, Mars, and Ferrro Rocher (Shashidhar, 2014). An increasing number of people continue to be more sensitive and conscious about their health, eventually cutting down their chocolate consumption. Negative publicity and controversies poses a great threat to the company.
Cadbury is a well-established international company whose products have attracted clients from over the 200 countries that it operates. It has a strong financial base and its ability to adopt the contemporary technologies keeps it at the acme of the game. However, as captured from the preceding sections, the company also faces and is subject to several challenges.
It targets high-end, middle-level, and low-level markets. It target customers from all the demographic backgrounds including age, sex, marital status, race, religion and socio-economic status. Its ability to target the millenials and X generation has been very effective considering that this generation mostly uses the latest technologies.
Cadbury operates in relatively many countries and hence is subject to diverse macro-economic conditions, which may vary from one country to the next. Importantly, the company has been able to positively respond to the changing macro-economic condition in the different countries, eventually enabling it to continually expand its business.
It is apparent that Cadbury faces a lot of rivalry from other international big players in the confectionary sector. Fortunately, its ability to embrace upcoming technologies while pursuing an aggressive marketing strategy has helped it to remain at acme.
The company’s products have consistently been on high demand and that is why it works together with strong and capable collaborators such as business partners, distributors, agencies, and suppliers. Eventually, this has helped it to venture into new areas that present inimitable opportunities (Fitzgerald, 2006).
Marketing strategy (STP);
In its Cadbury Dairy Milk segment, Cadbury uses different segmentation strategies for all of its products. Firstly, there is the “Take-home segment”, representing mostly of the products that are bought for supermarkets, take-home, or to be consumed at a later stage (Brown, 2014). Some of the products in this category include the Cadbury Celebrations Box or the Cadbury’s large Dairy Milk blocks. The packaging is mostly between 190 grams and 220 grams. Secondly, there is the “Break segment”, which includes products that are usually consumed as a snatched break and which are often taken with coffee or tea. The products are packaged in relatively small quantities of between fifty and sixty grams and include among others Cadbury Dairy Milk’s Bubbly and the Dairy Milk range. Finally, there is the “impulse segment”, which constitutes of products that customers would purchase while doing their window shopping (Rathi, 2016). They are placed at eye-level or close to the checkout counters to tempt the clients to make impulse buying. They weigh mostly between 50 and 60 grams and examples include the Cadbury Dairy Milk bite-size and block-size. With regard to targeting, the Cadbury Dairy Milk’s products mainly target potential customers on the basis of psychographic, behavioral, and a range of demographic factors. The Cadbury’s products are consumed and enjoyed by people of all ages and from diverse demographic backgrounds (Bhasin, 2016; Evonomie, 2015). In regard to the positioning strategy, the company presents itself as an affordable luxury brand offering high quality products at relatively affordable prices. It has also well-established distribution networks including duty-free outlets at the airports, supermarkets, as well as convenience stores. It has also continuously tried to improve its customers’ experience through promotions and advertising.
E Marketing; Social Media, Branding, and Existing Target Market: Success and Failures
From the onset, it is important to note that Cadbury has a well established and reputable brand (Marketing Week, 2007). One of the notable promotional and advertising outstanding approach of Cadbury is its increased presence in the online platform, including in the social media primarily Facebook (Team, 2016). The social media has presented the company with a digital platform opportunity where it can continuously engage and interact with its loyal customers while communicating to them regarding new promotions as well as driving new campaigns. The company has recorded several benefits in using the digital marketing platform. Equally, it has faced several failures in pursuing the digital marketing approach. These are extensively discussed in the following section primarily focusing on the Dairy Milk brand.
Apparently, Dairy milk is a big brand for Cadbury and has attracted an increased number of potential customers whether in the traditional or contemporary marketing strategies. The company has largely benefited from its digital marketing approach and although its sales on Dairy Milk have shot through the Facebook platform, they have also increased in other online platforms such as instagram, twitter, YouTube, and Google+ where the company has much presence as well (Bharali, 2012). Eventually, it has largely benefited from the online market advancements created by the ever advancing social media platform (Effing & Spil, 2016, p. 2; Kaplan & Haenlein, 2010, p. 60).
Through the digital marketing platform, companies have m made major strides (Young, 2014). For instance, Cadbury has largely benefited from the viral marketing approach, whereby the company has taken the advantage of its online presence to try and convince its “followers” to generically advertise and market its products through the latter’s social media platforms. Importantly to note is that the social marketing platforms are very critical to any firm and hence Cadbury should continue to embrace the platform (Genseler, Volckner, Liu-Thompkins, & Wiertz, 2013, p. 243).
Through its storytelling approach, the company has been able, under one brand strategy, to trigger joy amongst its increasingly large number of its target audience from all across the world. It has been able to create joy among all its target audience from all over the world (We Are Social’s Cadbury Dairy Milk: Storytelling at Scale case study, 2015).
The social media platform has created an expansive market where the company has been able to reach a relatively expansive global market uniting relatively many markets under one simple global social market strategy (Mangold & Faulds, 2009, p. 358; We Are Social’s Cadbury Dairy Milk: Storytelling at Scale case study, 2015; Boyd, 2008, p. 210). Eventually, this has helped the company to augment its number of sales. Based on the storytelling case study, the company’s face book page users have increased to 60 million from 16 million in a month. In addition, its customer engagement has risen from paltry 2.68% to 6.89% demonstrating how effective its digital marketing has been which complements its traditional but very aggressive marketing.
Through well organized workshops, Cadbury Dairy Milk has been to listen, learn, and adapt new and varied experiences from all its target audiences so as to try and help improve its clientele’s experiences (Martin, 2016). To an extension, it has continuously tried to encourage common interest and passion interests amongst all its audiences, bringing them together, and eventually developing and building a global story telling strategy that is pertinent in meeting all the needs of its clients (Martin, 2016). Consequently, this has helped it to increase its marginal sales in all of its countries of operations.
According to the company, the online marketing and advertising approach has enabled it to reach more than half of its target audience from all over the world (Aol.co.uk., 2016). This is not withstanding its ability to cut its content creation costs by approximately by 40%. The company’s Dairy Milk storytelling has enabled the company to increase its Return on Investment by 200%, which is an outstanding figure as compared to other global channels. Evidently, the company has enjoyed and benefited largely from the digital marketing approach with the only very few identifiable failures being identified in the company’s digital marketing strategy (Berthon, Pitt, Plangger, & Shapiro, 2012, p. 264). There has been the issue being of using misinformation in some of the videos it has used to advertise its products and especially among the younger generation (Allegretti, 2017). Some of its online adverts have been accused of poor organization as well as poor management of its distribution channels, which have a link with its digital approach. Some of its digital marketing campaigns have failed to give solid reasons as to why the consumers should buy its products. An example case is its Gems campaign (Charles, 2014). Finally, by mid 2016, the company’s pinterest digital marketing campaign had not yet reached its targeted market. It attracted only 9 million views, which was way below its target of 10 million views even after spending a fortune in the campaign (Caffyn, 2016).
Potential future threats and opportunities
There have been an increasing number of online users with the ever advancing technologies and this presents an opportunity through consumer empowerment amongst all companies embracing technology (Opreana & Vinerean, 2015, p. 31; Labrecque, Esche, Mathwick, Novak, & Hofacker, 2013, p. 260; Yadav & Pavlou, 2013, p. 14). There is also an expanding market for the milk products including their augmented demand from the rural areas. In addition, the global population has been increasing and this presents an opportunity to Cadbury Dairy Milk’s market considering that its target markets cuts across all the demographic space. Unfortunately, the company is also subjected to some future threats with regard to its continued pursuance of the digital marketing strategy (Otago Daily Times Online News, 2017; Hollebeek, Glynn, & Brodie, 2014, p. 154). It is apparent that there has been an increasing trend of cyber crime and Cadbury is not insulated from the vice (Magee, 2016). The company is likely to face stiff competition from its close rivals and especially in the case where could be the formation of partnerships. In the same line of reasoning, the idea of expanding its online presence may negatively affect the company considering that there is no much emotional connection between the consumers and the products in the case of digital marketing. In other words, consumers want to either have a feel, touch, or possible taste a product before they can buy it in and continuously engaging the clients helps achieve this objective (Wrigley, 2016, p. 3; Brodie, Hollebeek, Juric, & Illic, 2011, p. 260).
Rather than primarily targeting the urban population, Cadbury should shift some of its efforts and target the rural areas, where it has dismally performed over the years (Pinto, 2013). The increasing demand in these areas will help the company maximize its sales. Secondly, the company should expand its online presence. Currently, much of its efforts have been geared towards the Facebook platform, where it has done relatively well. However, it is important for the company to give the same weight to other social media platforms such as twitter, pinterest, instagram among others. Thirdly, Cadbury should focus on proper management of its campaigns including the digitally run to avoid adverts that cause public uproar, which ends up tarnishing the company’s brand. It is clear from the above analysis that mismanaged advertisements have ended up negatively affecting the company’s sales. It has in the recent years cut the unit quantity without reducing the prices of those particular products. Eventually, this has presented the company in bad light to the public. As such, it also important for Cadbury to work out on its pricing strategies in the case where it reduces the unit quantity in some of its products so as to ensure appropriate commensuration. The company should not only focus on expanding their onloine presence but also creating content that is captivating and relevant to the products through the involvement of every stakeholder to enhance value creation (Muntinga, Moorman, & Smit, 2011, p. 17; Leclercq, Hammedi, & Poncin, 2016, p. 41). Finally, the company should work on trying to restore its lost public trust, for instance, after it run the Gems advert (Hajli, 2013, p. 392).
Conclusively, the analysis has established that Cadbury has been making huge strides over the years initially starting out as a small shop and later emerging as one of the leading confectionary companies all over the world. The company enjoys several strengths including its digital marketing strategy that has largely helping grow the sales of its different brands such as the Dairy Milk. Its sales, customer reach, ROI, and digital coverage have increased over the years as demonstrated from its brand storytelling for the Dairy Milk. However, there are some challenges that the company has faced along the way in its digital marketing campaigns. The analysis has also established that the company is likely to benefit from several potential future opportunities but is also subject to several threats but the recommendations given in this analysis may help it overcome the pitfalls while maximizing on the opportunities.
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