Brand Building And Positioning For Cadburys Marketing Essay

The history behind marketing efforts of most modern businesses is that the company should recognise the needs of their customers and produce products and services to gratify those needs. Like this, the customer is in the middle of the business and the decision-making process.

A business which monitors this viewpoint is a market-orientated.

In this unit I’m going to be focusing on Cadbury’s and House of Fraser and how they operate. I’m also going to talking about the marketing techniques and relationship marketing.

The production concept this is where a business concentrates on producing economies of scale in production and distribution of product or service. This undertakes that customers will purchase items that are lower priced; this is so that the demand is driven by availability. Examples of this can be found in construction suppliers, where construction firms will purchase cheaper building materials to increase their profit margins. Cadbury’s and House of Fraser do not come under the product concept. For example, a builder selling bricks to someone comes under this section, whereas the two other organisations don’t.

The sales concept this is mainly known as the “hard sell” this is because the product or service is produced and personal selling and other high pressure selling skills are used to convince customers to part with their money. Example of this could be in a place where double glazing is sold.

The marketing concept unlike all the others above, the marketing concept puts all t heir customers first, they want to put their customers in the centre of all decisions before the product or service is developed. By doing this the business is likely going to be more efficient and doing this will benefit the company and/or market.

Focusing investment on products that customers are going to need and use instead of investing in products that customers may not like which means they won’t purchase it. Cadbury’s uses a good strategy to connect with people, the way they achieve this is by sponsoring and promoting their products or even TV programmes.

Cadbury’s

In 1824, John Cadbury opened a grocer’s shop at 93 Bull Street, Birmingham in the 1830’s. Among other things, he sold cocoa and drinking chocolate, which he prepared himself using a pestle and mortar. John’s wares weren’t just inspired by his tastes; they were driven by his beliefs. Tea, coffee, cocoa and drinking chocolate were seen as healthy, delicious alternatives to alcohol, which Quakers deemed bad for society.

House of Fraser

House of Fraser is a British premium department store group with over 60 stores across the United Kingdom and Ireland. It was established in Glasgow, Scotland in 1849 as Arthur and Fraser. Although established in Glasgow House of Fraser’s largest store is located in Birmingham. By 1891 it was known as Fraser & Sons.

Marketing Techniques (Growth Strategies)

The business analyst Igor Ansoff outlined some important strategies for business growth. He identified four key approaches to growing a business in 1957.

Market penetration is a group of customers who may buy a product, so if someone was to produce a video game for the PS3 to be sold in the UK, your market would likely to be people in the UK who own PS3’s. A business could grow by increasing the number of people in the market who purchase your product.

Market development is when a company markets an existing product to a new market. For example, the PS3 game, you might want to sell your game to different countries. Nothing about the product changes it just gets sold to another market.

Product development is when a business develops a new product to sell to the existing customers. So once a customer has bought your product you could sell them something else such as, an expansion pack that may include more content.

Diversification here is where a business markets new products to new customers. This works two different ways, the business could produce a new product in that area that it understands or it could go into a completely different area that is an unrelated area.

House of Fraser uses the flexible incentive by allowing these things:

Ease of ordering

Online services

Free, fast and a secure delivery

Fulfilment

House of Fraser Business Incentive vouchers are available in denominations of £1, £5, £10, £25, £50 and £100.

You can order by post with a cheque or credit card using the enclosed order form, or by phone with a credit card. Credit account customers may order via email.

All vouchers can now be redeemed online.

Your House of Fraser vouchers will be despatched next day if the order is received by 11.00am.

The Business Incentives team will be happy to arrange delivery direct to multiple addresses, on request. A small handling fee is levied for this service.

n order to increase sales Cadburys needs to undertake a range of

marketing activities before deciding upon the best way to encourage

the purchase of its product. When identifying the basic principals

which Cadburys must apply to its marketing will be its basic

objectives because all business must have objectives it allows them to

increase sales and make profit.

Corporate aims are the long term intentions of a business, whereas

corporate objectives are the specific targets required to achieve the

aims.

The common aim and objectives of the corporation such as Cadbury

includes the following:

Survival

Profit maximisation- which is often taken to be the reason why firms

exists and to be the primary objectives in practices most firms have

a hierarchy of objectives when a firms survival is threaten it may

profit maximise in order to restore its financial health.

Growth- which includes Cadbury selling new products or expanding

overseas.

Diversification- which is the spreading of business risks by

reducing dependence on one product.

Sales maximisation- which is the increasing of sales

Improving the product image-which includes creating a new logo or

launching a new brand of product and creating more attractive

packaging.

For example, Cadbury set out two objectives for the development of

their chocolate, Fuse. These were:

1. To grow the market for chocolate confectionery

2. To increase Cadbury’s share of the snacking sector

Cadbury promotes its products in various ways such as the use of

above the line promotion, which is where a product is advertised

through consumer media such as television, magazines, newspapers and

radio.

Relationship marketing (Cadbury’s & House of Fraser)

Relationship marketing is where a business concentrates on the long term value of a customer. This means knowing who the valuable customers are, starting relationships, maintaining enhancing and terminating them in order to produce a sustainable profit.

Cadbury Schweppes is a marketing focused company. Its success depends on on satisfying the needs of its consumers. It is able to do this by frequently listening to consumers and learning about their changing necessities. In response to these requirements, Cadbury Schweppes strives to create new products, build on existing core brands and find new ways to add value to existing products. By gaining the visibility, profitability and volume in the global market, a business is best placed to provide its consumers with quality products and the best value for money.

House of Fraser are responsible for all central marketing communications sent directly to customers – this includes all email newsletters, messages in their Recognition Card member statements, local targeted mailings on behalf of stores or suppliers and national mailings/emails about events and offers for example, sales, launch of new season.

Brand awareness

A common marketing objective is to raise customers’ brand awareness. This could relate to a business’s overall brand for example, BMW or to a product brand within the company for example, Mini.

Effective raising of brand awareness can raise sales; this is because customers will subconsciously or consciously try to find a brand when buying an item or service. A high level of brand exists where consumers start to use the brand name in place of the product type.

The House of Fraser brand is differentiated from other department store groups in the UK by our 160 year history in the UK retail market, their wide geographic reach (across the UK and on-line), broad range of high quality premium branded merchandise offered at competitive prices, our increasing exclusive House Brand offering and our commitment to providing an imaginative, exciting and relevant shopping experience to their customers.

The Cadbury brand has a profound impact on individual product brands. Brands have individual personalities aimed at specific target markets for specific needs e.g.TimeOut, for example, is an ideal snack to have with a cup of tea. These brands derive benefit from the Cadbury parentage, including quality and taste credentials. To ensure the success of product brands every aspect of the parent brand is focused on. A Flake, Crunchie or TimeOut are clearly different and are manufactured to appeal to a variety of consumer segments.

House of Fraser have a voucher discount scheme their vouchers carry exceptional discounts as shown below. The discount may be deducted from the invoice or taken as additional vouchers.

As a finishing touch we can supply complimentary wallets and envelopes in which to present the vouchers. These can also be personalised with your company’s logo, if required (there is a print cost associated with personalisation, please ask the Business Incentives team for details).

Brand building and positioning

It takes time, patience, effort and investment for brand building and maintenance. It is essential for a business to first recognise its brand values. The central messages that it wants is its customers to understand when they think of the brand. For example, the car Mercedes- Benz, this car is high performance, safety and prestige.

Brand building and positioning for Cadburys

Cadburys has identified these brand values and adjusts its advertising strategies to reflect these values in different markets. Its strategy can vary from increasing brand awareness, educating potential customers about a new product, increasing seasonal purchases, or as is currently the case in the ‘Choose Cadbury’ campaign to highlight the positive emotional value of the brand.

In Ireland, Cadbury has identified three key consumer segments of ‘impulse’, ‘take home’ and ‘gift’. These segments reflect consumers’ decision-making processes.

Since its inception, Cadbury in India has stayed ahead thanks to their constant marketing initiatives, that have at all points in time understood the needs of and opportunities in a changing nation but Nestle had stood firm in second position resulting from their responsibilities and providing quality products. Amul an Indian company has been able to create brand quality and thus selling their product through their name.

Brand building and positioning for House of Fraser

One of the most valuable aspects of the House of Fraser brand is the equity built up over many years as an endorser of the prestigious brands they have as part of our portfolio.

Their ability to have a uniform and clear brand identity across all our channels is therefore of paramount importance,
as so that they look to leverage this heritage in the exciting development of our brand.

The House of Fraser Business Incentives team is available to advise you on how to maximise the effectiveness of our vouchers. We’ll be happy to discuss your objectives, make recommendations and, if required, create an individually tailored package. Our experience in the field can help you develop promotional ideas and we can suggest ways of adding value – for example, through use of the House of Fraser Personal Shopping service.

OBJECTIVE OF ADVERTISING

To educate the Market

Building brand awareness

To encourage seasonal purchases

To increase consumption