FIRST ESSAY

First Essay

First Essay

Existing Product Type

Cadbury's offers a wide range of products for many different people. Cadbury's has chocolate aimed at children, 16-25year old, 25+, males and females. The products offered by Cadbury's come in many different sizes, the sizes are dependent on the market they are aimed at. Children usually have small appetites so most children's chocolate comes in small packs. A good example of this is the Cadbury's Buttons range. This range started out with just small bags for children and then the bags got even smaller for children. Then Cadbury's released giant buttons and buttons in big bags. This was not only to provide for the whole of the market but to increase sales as well. Giant buttons were aimed at older children and adults, as well as children with very large appetites.

New Product

A product launched by Cadbury's was the 'Fuse' bar. It was released as the first bar to be eaten between meals. The adverts were messed up, to resemble the life of 16-25year old. The bar was aimed at that area of the market. The fuse bar had a slightly male bias. The product started out with group discussions, which is where, people in a room talk about the bar. The bar then went through to the marketing strategies and the advertising agency was told to come up with some ideas for the bar. The fuse bar was then released on Fuse day.

Price

The main factors that influence the price charged by the company are the costs of they have to pay for advertising, promotion and the market research. The main influencing factors though are the price of the competitors. If the company wants to increase their percentage share of the market, they will have to have competitive prices. It would be no good having the Cadbury's Dairy Milk bar priced at 50p when the Galaxy is only 30p, because the consumers are just going to buy the Galaxy because it's so much cheaper. The price is dependant also on whether the company wants to maximise profits or sales. A company wanting to maximise profits would use the cutthroat business of pricing their products at high prices and hoping the consumer buys their product.

The price is also dependant on demand. If the product is easily accessible the prices will be very competitive, whereas if the product is difficult to get hold of the prices will be a lot higher. This is same for competition if there is a lot of competition in one-area prices is going to be priced competitively. If there is no competition the prices will be higher. The products tend to be sold where there is demand for them if there is no demand the prices are not going to be very high. The Cadbury's SnowFlake was very difficult to get hold once it was released. This reflected the price it was released at 30p but due to demand the price rose to 38p.

Place

The products are available ...