MARKETING

Marketing

Marketing

Introduction

In the market overview of breakfast cereals. The report clearly shows that the market has grown. The most growth in the market is between 1995-1996 where the market grew by 6.0%. The 6.0% growth was well above the compound annual growth rate between 1995-1999. The compound annual growth rate this period was 3.7%.

This research is significant to Cadbury's because it shows the breakfast cereal market has been growing for the past 5 years. The figures also give reason to believe that the market will keep growing for years to come but at a slower rate.

The research supports the argument that Cadbury's should launch a new breakfast cereal. I have said this because the figures show an increase in growth.

I am going to investigate the current marketing mix and the strategies used by Cadbury's.

The marketing mix is the '4Ps' (Product, Price, Place and Promotion).

I will get the information required from various sources. Mainly I will use textbooks, the Internet and through some primary research (visiting supermarkets and shops). I got some pricing information from the local Sainsbury's supermarket. I looked on the Cadbury's website for additional information on Cadbury's.

Product

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.

Product Life Cycle

The product life cycle shows the sales of a product over time. When the product is launched, sales tend to be slow. If the product succeeds the sales will then grow, until at some point they begin to stabilise. This could be for one of a number of reasons. A rival company could have introduced a similar product or because the market has saturated. Sales will eventually decline because a company will release a new product type.

For example when Cadbury's released the 'Fuse' bar it was for people to eat between meals. It was also new because it was the first bar not to use caramel to fuse the ingredients together; instead it used chocolate to fuse the ingredients.

Introduction - slow sales to begin with.

Growth - Rapid growth

Maturity - The market becomes saturated

Decline - new products from different company

Extension Strategies

There are various ways in which we can extend the life of a product. Changing one of the 4P's is the method often chosen, with the promotion of the product being first to be changed to increase slow ...