E-marketing Strategy

 

 

 

 

 

E-MARKETING STRATEGY

 

 

 

 

 

 

 

 

 

 

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E-Marketing Strategy

Introduction

Cadbury Company was founded in 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. Over the years, the company has grown to become one of the leading and largest confectionary companies in the world (www.iconinc.com.au, 2017). It is currently owned by Mondelez International, which bout it in 2010. The company employs more than 70000 workers who are spread in more than 200 countries that it operates in. This paper aims at the market analysis of the Cadbury’s Dairy Milk market, its E-marketing strategy, as well as giving recommendations that can help it maximize from its digital marketing strategy.

Situational Analysis

Strengths

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). In addition, Cadbury adopts a very aggressive marketing approach with well-established distribution channels. Finally, it has expansive experience and financial resources.

Weaknesses

Firstly, binge chocolate consumption is associated with teeth decay. 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.

Opportunities

The emerging technologies present Cadbury with an opportunity to develop new methods of production as well as enhance the distribution of its production in the rural areas. There has been a growing market trend for the confectionary sector. Also, there are untapped markets and especially in the rural areas. Finally, it has the ability to expand its product offering.

Threats

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.

5Cs

Company

Cadbury is a well-established international company whose products have attracted clients from over the 200 countries that it run operates. It has a strong financial base and its ability to adopt the contemporary technologies keeps it at the acme of the game.

Customers

The company 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 millennials and X generation has been very effective considering that this generation mostly uses the latest technologies.

 

Context

Cadbury operates in relatively many countries and hence is subject to diverse macro-economic conditions, which may vary from one country to the next. The company has been able to positively respond to the changing macro-economic condition in the different countries it operates in, eventually enabling it to continually expand its business operations in such countries.

Competitors

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 top.

Collaborators

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 snacks 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 approaches adopted by Cadbury is expansive marketing using the online platforms, 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 by making use of the E-marketing strategy.  Equally, it has encountered several challenges in using such a strategy. These are extensively discussed in the following section with primarily focusing on the Cadbury’ Dairy Milk storytelling.

Dairy milk is a big brand for Cadbury attracting a relatively large number of consumers.In its E-marketing strategy, the company uses different online platforms such as instagram, twitter, You Tube, Facebook among others (Bharali, 2012). Out of all these social media platforms, the largest number of sales that the company has made is through its Facebook marketing. There continues to emerge new social media platforms and the company is projected to benefit even more as the number of online users continue to increase (Effing &Spil, 2016, p. 2; Kaplan &Haenlein, 2010, p. 60).

Social marketing platforms are very critical and especially in the contemporary society where a large number of people continue to embrace innovations (Genseler, Volckner, Liu-Thompkins, &Wiertz, 2013, p. 243; Hollebeek, Glynn, & Brodie, 2014, p. 154). Through the E-marketing strategies, companies have made major strides in regard to expanding their sales revenues (Young, 2014). For instance, Cadbury has largely benefited from the viral marketing approach, whereby the it 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 accounts.

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. Cadbury has been rated as one of the best storytelling brands in the global market today and this has eventually helped it to augment its sales revenue. In this case, the Cadbury’s Dairy Milk story telling approach aims at creating an emotional bond with the potential customers. The company makes use of curated content as well as paid-for-marketing on the social media. The main social media platforms that Cadbury has used in running its storytelling include Facebook, Twitter, and Youtube. By practically demonstrating the appearance of the happy Dairy Milk, coupled with clear background descriptions, the company evokes emotions among its potential customers. The company is able to demonstrate that by eating a great bar of chocolate, the customer feels good and experiences a great deal of warm sensation. The use of the emotional story telling approach has enabled Cadbury to create joy among all its target audience from across the world.

The social media platform has created an expansive market where the company has been able to reach a relatively expansive global market (Labrecque, Esche, Mathwick, Novak, & Hofacker, 2013, p. 260; Yadav & Pavlou, 2013, p. 14). For instance, through its Cadbury’s Dairy Milk storytelling, the company was able to unite approximately 20 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 increase its sales revenue. Based on the storytelling case study, the company’s Facebook 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 (We Are Social’s Cadbury Dairy Milk: Storytelling at Scale case study, 2015).

Through well-organizedlocal teams’ 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). In addition, through its storytelling approach, the company has continuously tried to encourage common interest and passion interests amongst all its audiences. It has also brought them together and collected relevant information from the global audiences regarding its Dairy Milk Products. This has been achieved by encouraging its ever growing customer base to give their reviews on the social media platforms after they have watched the company’s videos (Martin, 2016). It is then able to improve on any problematic areas that satisfy the customers’ needs. 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 coupled with 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 (We Are Social’s Cadbury Dairy Milk: Storytelling at Scale case study, 2015). Evidently, the company has enjoyed and benefited largely from the E-marketing strategy.

However, despite the successful results delivered by the company’s adoption of the storytelling strategy, there are some failures that have resulted from the approach. The Cadbury’s Dairy storytelling was projected to attract more than 10 million views (We Are Social’s Cadbury Dairy Milk: Storytelling at Scale case study, 2015). Unfortunately, it attracted only 9 million views even after the company had spent huge finances in the campaign (Caffyn, 2016). In order to create a more emotional connection with the customers, it is appropriate for a company to demonstrate the “behind the scene” players and probably capture the different roles they play in coming up with the final product (Martin, 2016). Unfortunately, this is not captured in the case of Cadbury’s Diary Milk storytelling.

Also, the video did not capture any ingredients used in the production of the Dairy Milk product. Cadbury has, in the recent past, been accused of compromising its products, including the Dairy Milk. Eventually, this has created a bad public reputation and capturing some of its raw materials in the story telling video, could help restore its lost glory. Unfortunately, it was not conscious to incorporate this information in the video.

The lack of personification or incorporation of the human factor makes the video very plain for a story telling (Treanor, 2015). In other words, the storytelling video has mainly concentrated on too much explanation without demonstrating the satisfaction element obtained by a customer after consuming the Dairy Milk product. To help improve on this shortcoming, the company may consider including some jolly people who are elated after having a bite on a chocolate bar. This will require a simple graphical representation and will ensure that the adverts do not overly concentrate on the product while leaving out the customers.

The Dairy Milk products have different packaging quantities, and eventually this implies different pricing. Unfortunately, these elements are not captured in the video advertisement (Pepper, 2014). It will be pertinent for the company to incorporate such information in the future considering that the target market constitutes of different people with different defining characteristics such as the demographic factors. This will help create more connection between the clients and the product (Brodie, Hollebeek, Juric, & Illic, 2011, p. 260).

Finally, it is obvious that clients are much interested at understanding the benefits they will get by consuming a particular product or receiving a certain service. It is unfortunate that Cadbury Dairy Milk’s storytelling video does not meet this requirement and hence a shortcoming. The company should consider incorporating the benefits that the potential customers are likely to get by taking its products (Treanor, 2015). For instance, it could incorporate information on the nutritional value of the Dairy Milk. Consequently, this evokes more attraction from the consumers as opposed to its current storytelling video that has primarily focused on the achievements that Cadbury Company has made.

Recommendations

One of the notable Cadbury’s Weaknesses is its inability to penetrate the rural segments in the countries it operates in. 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. This will help it 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 online 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).

 

 

Conclusion

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 notable shortcomings from the Cadbury Dairy Milk’s storytelling video. Appropriate recommendations have been provided as optimal solutions to addressing such pitfalls in the future.

 

 

 

 

 

 

 

 

 

 

 

 

 

References

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