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Topic: Marketing

Name: Zain Sajjad Merchant

College: Rims International School of Business &


Technology (Mumbai), India.
Course: BBA HNC 1st Year

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Zain Sajjad Merchant

Assignment cover Sheet


UNIT

Unit 1 Marketing

Course

HNC

LECTURER

Ms. Priya Chowdhury

VERIFIER

Ms. Reena Cliffton

HAND OUT
DATE

15.10.10

SUBMISSION
DATE

16.12.10

STUDENT

Zain Sajjad
Merchant

TERM

Dec10

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ASSIGNMENT GUIDELINES
1. This Assignment is designed to help you achieve a Merit or Distinction.
2. During your Structured Individual Study (SIS), you are required to answer each
question above (Outcomes Assessment Criteria) which has been covered separately
in respective Lessons.
3. In your answer, write about the key concepts highlighted by the Lesson
(underpinning knowledge).
4. You can get an idea of the key concepts by referring to the Lessons handout, in the
Overview section of the Lesson.
5. Look for real-life examples to apply your key concepts (applied knowledge).
6. Make use of the SIS time to research books.
7. During your SIS time, use the computer to research recommended websites and
word process your Assignment.
8. Follow the guidelines given in your Handbook.
9. Study the Merit and Distinction Descriptors below to ensure that your work
demonstrates compliance in order for it to be considered for their respective Awards.
It is important that the work you produce is carefully planned & written.
Your work should demonstrate (a) your understanding of the theory you have learned
(underpinning knowledge) and (b) your ability to apply it to real life/contemporary
situations/case study (applied knowledge).
Please follow the instructions below:
1. Start each answer from a new page
2. Highlight each question clearly
3. Avoid bullet points and restrict the use of numberings; remember that you are
supposed to write an essay.
4. All work should be comprehensively referenced and all sources must be
acknowledged fully, this includes books & journals used as well websites visited.
Details such as page numbers, publishers and publication year should also be stated,
in addition to the name of the author(s) and publication. Books, articles and journals
should be the main sources; net sources are allowed up to 25% max.
5. Follow Harvard Referencing system.
6. Ensure that your work is within the stated word limit.
7. All work should be word-processed.
8. Pages should be numbered (bottom right hand corner)
9. Assignment sheet should be attached in the front.
10. Spell check the document and read thoroughly for grammatical errors.
11. 1.5-line spacing is preferred but is not essential.
12. Bibliography at the end of the assignment.
The correct format to answer each question (Task) is as follows:
1. Introduction (analyse the question which theory is it trying to ask you to
demonstrate?)
2. Underpinning Knowledge (write about the relevant theory/points)
3. Applied Knowledge (apply the theory/points you have written about in your
underpinning knowledge to your case study/real life example)
4. Conclusion (summarise what you have written in 2 & 3 above).

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GRADE DESCRIPTORS
PASS
DESCRIPTORS

Le a rne r s Evid e nce Sho ws

(F RO M
O utcome s
Asse ssme n t
C ri te ri a)
1

Investigate the
concept and
process of
marketing

Tut o r
to
Che c
k

compare alternative definitions of


marketing

Identifyh the main characteristics


of a marketing oriented
organisation

explain the various elements of


the marketing concept

Explore the
concepts of
segmentation,
targeting and
positioning

Identify and explain macro and


micro environmental factors which
influence marketing decisions

Outline the factors which influence


the choice of targeting strategy

Identify and
analyse the
individual
elements of the
extended
marketing mix

COM M EN TS/ F EEDB AC K

explain how buyer behaviour


affects marketing activities in two
different buying situations

describe how products are


developed to sustain competitive
advantage

Explain how distribution is


arranged to provide customer
convenience

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explain how prices are set to


reflect an

organisations objectives and


market conditions

Illustrate how promotional activity


is integrated to achieve marketing
objectives
4

Apply the
extended
marketing mix to
different marketing

recommend marketing mixes for


two different segments in
consumer markets

segments and
contexts

explain the differences in


marketing products and

services to organisations rather


than consumers

explain how and why international


marketing differs

from domestic marketing

MERIT
DESCRIPTORS

Le a rne r s Evid e nce Sho ws


-

Identify and
apply strategies
to fi nd
appropriate
solution

Select/ design
and apply
appropriate
methods/techniq
ues

Relevant theories and


techniques have been
applied
Eff ective judgments have
been made
Complex problems with
more than one variable
have been explored
An eff ective approach to
study and research has
been used.
A range of sources of
information used
The selection methods and
techniques/sources justified
The design of
methods/techniques
justified

COMMENTS/FEEDBACK

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Present and
communicate
appropriate
findings

Complex information/data
have been synthesized and
processed.
Appropriate learning
methods/techniques
applied
Appropriate structure and
approach has been used
Logical and coherent
arguments have been
presented
Technical language
accurately used

A range of methods of
presentation has been used

Appropriate media used

DISTINCTION
DESCRIPTORS
1

Use critical
refl ection to
evaluate own
work and justify
valid conclusions

Take
responsibility for
managing and
organizing
activities

It is appropriate for familiar


and unfamiliar audiences

Le a rne r s Evid e nce Sho ws

COMMENTS/FEEDBACK

Synthesis has been used to


generate and justify valid
conclusions
The validity of results has
been judged

Self criticism of approach


has taken place

Evaluation has taken place


using defined criteria

Realistic improvements have


been proposed against
characteristics for success
Autonomy/independence
demonstrated

Familiar and unfamiliar


contexts have been used

Substantial
activities/projects have been
planned, managed and
organized
The unforeseen have been
accommodated
The importance of
interdependence has been
recognized

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Demonstrate
convergent,
lateral and
creative thinking

Ideas generated and


decisions taken

Self evaluation has taken


place

Convergent and lateral


thinking have been applied

Problems have been solved

Capacity for innovation and


creative thought has been
used
Receptiveness to new ideas
have been demonstrated
Unfamiliar contexts have
been applied

Any Other Comments

Grade Given by Tutor:


Pass

Merit

Distinction

Tutor Signature:Date:.

IV Grading Check:
Agree

Disagree

MODIFY GRADE TO

IV Signature: Date:
..

Students Response:

Student Signature:

Date:

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School of Business Management

Marketing

Course

BTEC Higher Nationals HNC Business Studies


Unit 1: Marketing

Unit

Individual Assessment

Issue Date:
15.10.10

Lecturer

Ms. Priya
Chowdhury

Student

Name: Zain Sajjad Merchant

Due Date:
29.11.10
Student No.

Instructions
-You are required to produce an academic report of 3000 words (+/- 10%) covering all the
questions given below.

-You are required to reference sources with Harvard Referencing Style.

-The colleges regulations concerning cheating, collusion and plagiarism apply to this
assessment.

Assignment

In a growing number of organisations, marketing is now viewed as a source of


competitive advantage; thus greatly contributes to the success of the organisation.

Choose an organisation that you are familiar with and answer the following questions:
1. Investigate the concept and process of marketing in your chosen organisation.
2. How does your chosen organisation pursue the Segmentation, Targeting and
Positioning activities to serve customers needs?
3. Identify and analyse the individual elements of the extended marketing mix,
applied in your chosen organisation.

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4. Apply the extended marketing mix to different marketing segments and contexts
(specially International Markets)
5. Provide any recommendations.

Table of Content

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i.
Executive Summary.
ii.
About the company
1. Investigate the concept and process of marketing in your chosen

12
13
14

organisation.
2. How does your chosen organisation pursue the Segmentation, Targeting
and Positioning activities to serve customers needs?

18

3. Identify and analyse the individual elements of the extended marketing


mix, applied in your chosen organisation.

23

4. Apply the extended marketing mix to different marketing segments and


contexts (specially International Markets)
5. Provide any recommendations.
6. References and Bibliography

27
30
31

Diagrams and Charts


1.
2.
3.
4.
5.
6.
7.
8.

Cadbury Eclairs.
Various Elements of Marketing Concepts.
Steps in market segmentation, targeting and positioning
Types of market segmentation
Marketing 7ps
Flow chart for distribution
How Cadbury milk is made and then transformed in to Eclairs.
Cadburys Eclairs extended marketing mix in international market

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15
17
18
23
24
25
28

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Executive Summary
Every product when launched needs to be bought to the notice of the public, the customers
needs to informed about the benefits and the uses and also the side effects of the product or
service, in this phase marketing plays a very vital role for an organization to bring their
products in the market. Marketing needs proper planning of the various areas of on how?
When? Where? A product needs to launched so as to make the product successful.
Marketing includes marketing mix of product, price, promotion, place, packaging, people,
and physical evidence.
A company like Cadbury has made sufficient research in the way its product will function
among the people and the kind of promotions and advertisements which will induce the
customers to buy its products. Cadbury has maintained its level of products which it brings
into the market and has met all the necessary requirements to live up to the customers taste
and needs.
Cadbury also has made different efforts in bringing innovations in the quality and type of
products and now that they have merged with another well known giant Kraft we look
forward to many more products hitting the shelves of the stores.

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About the company


The company which I have selected is Cadbury. And the product which I have selected in
Cadbury is Cadbury Dairy Milk Eclairs.
Eclair was first discovered by a local confectionery firm in London. England in the 1960s.
The firm then became part of Cadbury in 1971 making Cadbury Eclairs the second largest
brand in the company. The experience of eating a Cadbury Dairy Milk Eclair is truly unique
because of its creamy caramel exterior and rich Cadbury Dairy Milk chocolate at the center.
In 2006 Cadbury Dairy Milk Eclairs launched a crunchy Eclair with a hard caramel outside
and delicious Cadbury Dairy Milk chocolate inside called Cadbury Dairy Milk Eclairs Crunch.
(Source;

Article

(2010)

Cadbury

Eclairs

online

[updated

2010]

Available

at:

(http://www.cadburyindia.com/brands/choco8.asp) [Accessed at 14/12/2010])


Figure for Cadbury Eclairs.

Figure 1: Cadbury Eclairs.


(Source; Article (2010) about Cadbury Eclairs online [updated 2010] Available at:
http://www.cadburyindia.com/brands/choco8.asp [Accessed at 14/12/2010])

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Q1. Investigate the concept and process of marketing in your chosen organisation.
1. i)
According to Kotler in Principles of Marketing 5th edition (2008, pg. 7) states that marketing is
a social and managerial process by which individuals and groups obtain what they need and
want through creating, offering, and exchanging products of value with others.
Marketing is the management process which identifies, anticipates and supplies customer
requirements efficiently and profitability.
(Source: Vasishtha, (2009) VIVA Books Pvt. Ltd, first Indian Edition pg.8)
Marketing is concerned with meeting business objectives by providing customers
satisfaction. (Source: Vasishtha, (2009) VIVA Books Pvt. Ltd, first Indian Edition pg.8)
In the comparison of the two definitions given above consumer is put first in planning and
production of the product. Hence marketing is identifying consumer needs and wants,
applying appropriate price and different marketing strategies and satisfy consumers needs
with an aim to gain profit. It is very important to do marketing before launching a product, if
effective marketing is not done and consumers are not satisfied, then consumers can
choose to substitute product and the company can lose its customers.
Cadbury has really got into the market and done research because when consumers want a
fill of chocolate inside the eclairs, they did that and it worked. Thus increasing in their market
share and improving & maintaining their brand image, Cadbury introduced Cadbury Eclairs
Crunch. It is filled with caramel liquid inside the chocolate. Thus satisfying their customers
with what they want.
1. ii)
Main characteristic of marketing oriented organisation
There are two types of marketing oriented organisation i.e. market oriented and product
oriented. Market oriented is also known as market led because consumer is put first.
Companies produce products according to consumers needs and wants and try to satisfy
them. Companies will produce products that customers want, than trying to sell them a
product they may not want to buy.
Product orientation: - In Product orientation companies will produce what company want and
will not satisfy all consumers needs. They are extremely high quality goods and will want
consumers to buy it who value the product.
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Market growth
According to me Cadbury is doing a market orientation because it produces what consumers
want like a fill of caramel inside the chocolate. It has a punch line Kar de dil pe Jaadu
means people gets into their own dreams while eating the Eclairs and become tension free.
As consumer
loves chocolate filling and there is a scope in chocolate market, Cadbury has
Market
size
Persuasive advertising
done market research and found out about what consumer want. Hence its still successful
product. Hence its a mass production. If Cadbury has done like product oriented i.e. only
Eclairs with no chocolate filling, in 2008 eclairs introduces strawberry Eclairs. But it was
Market share
Market segmentation
without strawberry filled which didnt work out. If the price of the chocolate is higher than
U.S.P
competitor, the price set is not afforded by common people thus can lose its clients.
1. iii)
Explain the various elements of the marketing concept.

Figure 2: Various Elements of Marketing Concepts.

Mass market and Niche market are discussed above. Cadbury has to choose mass market
to be in the market, if not taken care of Cadbury will lose its customers and customers will
move to Nestle Eclairs who gain advantage of Cadbury Eclairs just because of same name.
Promotion can be used is persuasive advertising because everyone knows about eclairs
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Prom

and need not to waste money on informative advertising. As eclairs is on saturation stage
and soon will be on maturity stage, eclairs need to do persuasive advertising to know about
their presence in the market. The market share of eclairs in the current market is 70% i.e.
eclairs is the brand leader in the market. Company having a large market share promotes
products of that company. As eclairs is the brand leader, the author can find eclairs in all
shops from a small shop to a high five mall. Unique Selling Point differentiates competitors
products from our products. U.S.P of eclairs is caramel filled inside the chocolate but then
came U.S.P is copied by nestle eclairs (Cadbury eclairs competitor), thus he gain some
profit in name of Cadbury. But the taste is maintained by Cadbury; hence it is still the brand
leader. Market segmentation is how Cadbury market its products. There are different types
of segmentation and Cadbury fulfills all of them.
Analysis: - The marketing managers are working very hard to know about the market, what
are the market needs and wants and satisfy them. Thus be in the market and not allowing its
customers to gain the market share marketing teams of Cadbury Eclairs are working very
hard. Eclairs follows the mass production technique as of now because as everyone know
about Cadbury Eclairs and need not to promote much, their objective is to satisfy consumer
needs and sell them than doing marketing instead. Firstly when it was launched problems
were faced was supply factor and demand factor but not its being considered as fastmoving consumer goods. As its a customer oriented, Eclairs have understood the market,
a change in innovation i.e. when customers needs change the firm will be willing to get
change. Thus to implement these there are skilled direction and administration in marketing
activities. Eclairs have taken each step to fit in the various step of marketing concept.
Conclusion: - About marketing, Eclairs is taking all possible action which can maintain their
current market share and increase it and not letting it competitors to grow. I would suggest
Eclairs to go for product orientation i.e. producing Eclairs in Niche market. As its Rs.1
chocolate, higher class people will have a shame to eat in front of their clients. Thus
introducing in Niche market of pure and fine Eclairs will gain more customers because there
are not much local competitors. Eclairs is having a good position in its market but need to
open up in new markets like sugar free Eclairs, pure coco Eclairs. Thus it will help them to
increase more of their market share, market size and market growth. And to introduce
new flavors which will help them to maintain them more in saturation stage and earn profits.

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Q.2.

How does your chosen organisation pursue the Segmentation, Targeting and

Positioning activities to serve customers needs?


In 21st century company cannot satisfy all buyers in all market. Customers have different
needs and want and change according to the developing products. If companies try to satisfy
all customers in all markets, it will take years to know about the customers profile and the
competitor will make his place in the market. Thus companies have left mass marketing
and have moved towards target marketing.
Market Segmentation: - There are many customers in the market who differ in many ways.
It may in their wants, needs, location, attitude and buying practices. Thus to reach to these
customers and satisfy them in different markets companies do segmentation of market which
let companies know about the buying behaviours, large market, small market etc There
are four types of segmentation. Those are: -

Create value
for targeted
customers

Figure 3: Steps in market segmentation, targeting and positioning


[Source: Mullins, J (2008) Management and Organizational Behaviour 7th edition,]

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2.1) Market segmentation is a group of a full market in which customers have akin features.
A consumer profile is needed while segmenting the project. Markets can be segmented in a
number of ways: -

Types of Market Segmentati

Geographic segmentation
Demographic
conceptssegmentation
Behavioral segm

Customers
are
ranked
on
theincome,
basis but
ofinto
attitud
Dividing markets into different
Market
geographical
is segmented
markets.
intoCompanys
age, size,
family,
pay attention
gender,
Consumers
from
lifecycle,
head
are
divided
office
occupat
has
diffe
at

Figure 4: Types of market segmentation

Cadbury Eclairs is a mass market product. This tells us that all demographic and
geographic segments have the potential segment. Customers for clairs are identified by
their behaviour habits, thus behavioural segment is adopted based on segmentation. Thus
further, it is segmented as per the benefit sought by the consumers. In addition, the market
can be divided, when customer are looking for fun & relishing, filling and socialising.
Macro and Micro environment are the internal and external threat to the business. These can
be identified by S.W.O.T analysis.
Swot analysis for Cadbury Eclairs is given below:
Strengths:
-

Advantage in foreign market.


With strong brand name, can tackle its competitors.
Financial position increase in sales and profits for Cadbury Eclairs.
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Weakness:
-

Narrow products.
Less targeting is done, hence if competitors have done it can lose its clients.
Competitors coming with same & improved product.

Opportunities:
-

As Cadbury is having their own factory, they can ask for customers choice and then

manufacture the product.


Increasing in different variants of the product, will increase market share & growth.

Threats:
-

New taste will not fit with some customers, due to changing taste.
As Cadbury Eclairs competitor Nestle Eclairs has the same name and patents of
Cadbury Eclairs, Nestle gains advantage in name. This is the potential threat.

2.2) Targeting.
Once the company has got in which segment they have to segment, the later stage is to how
to target it on its customers. Targeting position for eclairs is for all i.e. everyone can eat an
clair from a child to an old man, healthy to a weak person. It is been targeted for school
going children during breaks, college students, working people during stress hours. Thus the
have a tag line for this Do magic on the heart. This lines talk about person forgetting
themselves after taking an clair.
Cadbury Eclairs is doing an undifferentiated marketing i.e. producing one product and get
many customers as you can. Segmentation is completely disregarded. It is also called as
Mass marketing. For Eclairs it is sufficient because the market is homogeneous.
Factors influencing the choice of targeting strategy are: Market maturity.
Diversity of buyers needs and preferences
Strength of the competition
The volume of sales required for profitability
(Source; Article (2010) how targeting strategy are influencing online [updated 2010]
Availableat :
( http://wiki.answers.com/Q/Outline_factors_that_influence_the_choice_of_targeting_startegi
es#ixzz17ITeyKSH) [Accessed at 06 December 2010]

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Maturity relates to the Product life Cycle. At the maturity stage product neither makes
profit nor a loss. It means that if the product needs to remain in the market, it needs
to innovate the existing product or introduce new product. Market maturity is mainly
hampered by the competitors whether Eclairs will defeat its competitors and survives,
quality is not hampered, and product is easily available and listening to customers
and customizes it.
Diversity of buyers needs and preferences. It means introducing variety of Eclairs
according consumer market and preferences. As Eclairs is market oriented, but it
only produces chocolate and no other flavour, hence sometimes customers move to
substitute product.
Strength of the competition means how Cadbury Eclairs survive and maintain its
current market share and not let its competitors increase and decrease it.
The volume of sales required for profitability states that whatever is the situation sell
the product. Eclairs have a punch line for this Jo Dikhta hai woh hi bikta hai.
2.3)

Positioning the product states that where the firm want to position their product.

Cadbury Eclairs is positioned in chewable toffee segment. Company should adopt steps to
deliver and communicate the desired position to target consumers. Positioning strategy must
be monitored and adapted over time to match changes in consumer needs and competitors
strategies. All the companys marketing mix must support the positioning strategy.
Eclair is positioned on emotions. It is known for its chocolate heart. The Nigerian factory is
having a tag line sweet with heart on inside. Thus Indian has a tag line Do magic on heart.
It is mainly positioned to forget the worries and land into a chocolaty world.
Activities affecting buying behaviour in two different buying situations are:
1) From customer point: - In marketing mix let select 4ps i.e. product, price,
promotion and place. If any of these are not taken seriously by a firm then
consumer buying habit can change whether he was a loyal to a product or not.
Let take product i.e. if the consumer buys an Eclair and its not worth it i.e. not
having a proper taste, customers switch to substitute product. Price If Eclairs sets
price too high then customers will opt for chocolate which is lesser than Eclair.
Promotion i.e. it can be above the line, below the line, informative and persuasive
advertising are not done properly then consumer can be unaware of the Eclairs.
Place i.e. if the consumer cant find the product easily and if competitors product is
easily available than consumer will opt for that.
b) Its market or product oriented. As the Eclairs are market oriented there is no
need of losing its clients because customers needs are being fulfilled. But if the

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product is Product oriented, poor people cant afford high price thus will go to
Nestle.

2) From organizational buyer situational:- If Eclairs is buying coco powder, of coffee


beans from a coffee factory, it is clear CDM will buy in bulk, and if not given bulk
buying discounts, CDM will change to other factory where he gets it. It also includes
buying plastic from a firm in bulk, etc...

Conclusion: - As Eclairs is following mass marketing and single marketing strategy i.e. the
company sells to all consumers and accommodates all desires of target of market with one
product. Strategy applied is to make one product type which can satisfy all consumer
desires.
The Advantages of this strategy is in terms of low cost in production costs and tends to
create a monopoly. Producer can close all markets from competitor. But a Chennai-based
competitor Nutrine Confectionery Company is introducing in a product Nutrine Eclairs to
battle with Cadbury and it enters in FMCG. It is launching its product with hazelnut Eclair. It
means it is segmenting in mass market with behaviour segmentation but with a scope for
giving an instant energy. Undifferentiated marketing is a very low cost technique and
reaches everyone, but Nutrine is doing a differentiated marketing by launching a hazelnut
eclairs thus it gives an instant energy in the fast- paced life. People will eat CDM Eclairs but
those who are health conscious will move to Nutrine because Nutrine is only in this market
with a cheap price for Rs.1. thus everyone can afford it. Positioning of Eclairs is just based
on emotions i.e. go in your own world and enjoy the dip of chocolate with eclairs. But Nutrine
is positioned for total energy replenisher on the move i.e. meal between the meal. CDM
Eclairs is not health conscious i.e. having sometimes it good but not every day. But Nutrine
Eclairs can be eaten in place of meal because its an energy replenisher. Thus customer
can opt for Nutrine Eclairs. But Eclairs wont lose majority of his customers because of its
brand loyalty and quality of the product.
Analysis: - As CDM Eclairs is doing mass market, it has only one product in mass market
i.e. eclairs. If customers choice changes i.e. now a days most people are health conscious,
some people want different flavors, want an innovation in taste and if competitor will launch
them Cadbury will lose its clients. In previous year, Nestle a competitor of CDM launched
Eclairs in strawberry which didnt turned out to be success because Nestle dont provide
Eclairs with a fill of flavor inside the chocolate. Thus it flopped. The Author will recommend
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CDM Eclairs to go for differentiated marketing like how Nutrine is segmented for health
conscious, CDM Eclairs should go for nutritive part like launching Eclairs with all type of
wheat and grains, sugar free and same like Nutrine launching a hazelnut or almonds or
pistachios eclairs. It will have a standby product for CDM if customer needs changes profits
can be gained through these. Mass market is done when there are less competitors and can
do a monopoly, but as competitors are increasing day by day, CDM should target into
particular segment and achieve targets. As Nutrine has targeted on health conscious, CDM
can target on teens who dont want to put on weight by eating CDM like introducing sugar
free eclairs, nutritive eclairs in which person can gain strength to do exercise but not put on
weight.

Q.3. Identify and analyse the individual elements of the extended marketing mix, applied in
your chosen organisation.

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Marketing 7ps

Product

Price

Promotion

Place

Physical
Evidence

People

Process

Figure 5: Marketing 7ps

Applying the marketing mix in Eclairs


Product: - Eclairs is targeted amongst the audiences to create magic in the hearts, it should
have that chocolaty fill and the right texture to make sure the person eating feels happy
about it. Eclair is having a unique size and should maintain it. The Oval shape gives a
smoothness in mouth and new look to the product. It should have that much amount of
chocolate fill that can successfully satisfy customers as per requirement.
Packaging: - Packaging of the product is attractive than other Nestle Eclairs, it has a golden
shiny wrapper with a picture of liquid eclairs thus as compared to competitors their wrappers
are simple and not attractive and of low quality. U.S.P is shown directly on wrapper that its
known for chocolate fill inside eclairs. Packaging is taken care of specially because if there is
lose packaging moisture will make the taste of Eclairs bad and can create worms in the
chocolate. Thus taking side on customers protection, packaging is done very perfectly, as
not to lose customers.
Place: - Due to the high efficient distribution network, CDM Eclairs is as near as it could be.
As its targeted for emotions and its motto is to spread happiness. To spread happiness it is
available from a small grocery store to a mall.
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n
t
s
u
a
im
e
l
r
e
r
C

Figure 6: Flow chart for distribution


(Source; Article (2010) Flow distribution chart online [updated 2010] Available at :
( http://www.authorstream.com/Presentation/patilnikhil26-139621-danny-cadburyentertainment-ppt-powerpoint/ [Accessed at 13/12/2010])
Price: - Price should be Rs.1 in the market because if there are competitors in the market,
than it should be competitor based pricing but not according to cost of the product.
Promotion: - for promotion three tools are being used by the company i.e. advertising, sales
promotion, personal relation. The promotion was done twice a year, but from 2008 its been
done only once a year. Promotion is done informative because it cherishes the buyer due to
its flavor. Also different kinds of new advertisements creates that knack of buying among the
consumers
People: - the leadership style Eclairs is following is democratic leadership i.e. workers points
are taken in view through two way communication. Motivation is being regarded important
because the intrinsic and extrinsic factors are taken care importantly.
Physical Evidence: - While looking at the hoarding or the poster, the author feels like
having an Eclair and get into the chocolaty world. While sitting at home if the author is
depressed, and sees the ad of eclairs of how the chocolate melts in the mouth and a man
forgets his tension, the author will go for it. Sometimes while looking at the wrapper a person
can see eclairs USP and buys it due to brand loyalty.

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Process: - the below table show how the process for Cadbury is made: Cocoa beans

Crushing & shelling

Blending

Varieties

Roasting

Cocoa powder

Conching

The harvest

Fermentation

Drying

Cleaning

Cocoa butter

Rolling

Grinding

Kneading

Figure 7: How Cadbury milk is made and then transformed in to Eclairs.


(Source; Article (2010) how is Cadbury Made (online) [updated 2010] Available at:
(http://www.cadburyindia.com/heritage/howiscadburymade.asp) [Accessed at 13/12/2010])
Thus after conching the chocolate paste is put in an Eclair palette and is being packed and
transported to the market. Enhancers are added to the taste of the product.
Analysis: CDM Eclairs is having a very narrow category of chocolates i.e. eclairs. But CDM competitor
Nutrine Eclairs is having a vast range of products like Maha lacto, marvel assortment,
gulkhand, bubble gum etc if the buying customer habits changes customer will move to
CDM competitor because CDM is having only one product, but Nutrine is having a vast
range of products.
Eclairs is available from a small grocery shop to a big high five mall, but Nutrine
Eclairs is not far away. Its having 6000 outlets in Bangalore, 12,000 outlets in Karnataka and
400,000 outlets nationally. Hence giving a tight competition to CDM Eclairs.
Price of CDM Eclairs is Rs.1 in current market. But there are many competitors like
Nestle, Nutrine; Melody who are having the same price. Thus all competitors have based
their pricing on competitors based pricing because if any company raises its cost,
consumers can move to substitute product.
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Promotion done by CDM Eclairs is persuasive advertising. But its competitor Nutrine
Eclairs is doing Informative advertising because its new in the market and need his
customers to know about his new hazel nut Eclairs.

Conclusion: - CDM is a successful product, but it does not have a vast product in its field
except Eclairs. Thus there is a benefit for his competitors like Nestle, Nutrine, and Melody to
enter into new product segments. Cadbury will lose its clients if his competitors introduce
products in new markets. Thus consumer buying habits will change and CDM will lose its
clients. Thus, the author suggests CDM to explore into new segments, target into new
markets, and position its new products. It can be done by aiming at health conscious people
like introducing nutritious bar, innovate eclairs in new flavours, sugar free, subside acidity.
Start doing a niche market product with a good and fine quality of pure chocolate inside
Eclair. As CDM Eclair is near to the market, Cadbury need to be aware, because Nutrine is
doing an informative advertising and consumers will be having Nutrine Eclairs product in
their mind, thus CDM Eclairs needs to do promote their product along with their competitor,
so that they CDM do not lose their clients. As there are increasing competitors, CDM Eclairs
should bring an innovation in their product like increasing in product range and product line,
improve in packaging, taste and quality.

Q.4
When a business is initially set up it is in local market. But after some years they set up their
firms in other places especially in international market. Most of the firms prefer international
market because of expansion of the business; economies of scale, new competitors and
exchange of foreign currency, estimated profits may be higher abroad. CDM Eclairs is very
famous in U.K because of its packaging, price, promotion, taste and quality. For Eclairs
taking 7ps into consideration product is targeted for children and teenagers. The production
of eclairs is in a very standardized form. Thus having a great taste and quality. As CDM is
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very famous in U.K. market for their products, they need not to spend much money on
promotion for their products. Thus most of the promotion is given in billboards, direct mail,
TV commercials. There is an import middleman who distributes all products of CDM timely to
satisfy consumer needs. Packaging is done in wrapping and sometimes sealed because of
look attractive.
The various aspects of the 7ps in consideration of Cadbury eclairs are given below: -

P
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Figure 8: Cadburys Eclairs extended marketing mix in international market

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Analysis: In the international market, CDM is having a vast range of chocolates and also
comes up with different variants of it. But there has not been any innovative idea in CDM
Eclairs. It consists of a single soul variant of itself. CDM Eclairs needs to bring about
changes in Eclairs and come up with new flavors, packaging and textures in Eclairs. Though
CDM Eclairs is always ready with a new commercial in the specified time period, it may not
attract the target audiences, which it seeks through advertisements. Though advertisements
being necessary, it will be suitable it CDM Eclairs comes up with it along with the innovation
with the product itself. Cadbury owns a product named Eclairs, which has made its mark in
the world of chocolates. Its feel of having a chocolate and caramel in its smallest version is
an innovation in itself. There is no such market segment where the demand for Eclairs is nil.
Cadbury Eclairs has set various ways of getting consumers together and promote its
products. Various competitions are held and feedback & recommendation are obtained by
the consumer itself which helps the company to improve to quality of the product. To ensure
all this Cadbury has to have a strong structure of working people, these workers with their
innovative ideas and strong marketing strategies make sure that every product is a success.

Conclusion:The business of chocolate making is growing at a faster rate in India and abroad there is
great need to be well equipped to create something which sustains in the competitive
market. The quality and the raw materials used should be maintained to sustain the level of
quality in the products. Cadbury has maintained its level of quality in the market here in India
and in UK but with the entering of various other brands there can be a threat to CDM to live
up to the strategies of its competitors. It needs to create proper pricing and marketing
strategy to keep its brand image.
Recently with the merger of Cadbury with a leading brand Kraft has open many avenues for
perfections, we can look forward to new ideas and innovations with a new perspective and
new ways of doing business.

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Q.5. Provide any recommendation.


Recommendation I would suggest Cadbury Eclairs is that they are doing well in their
business. Having market share of 70% means Cadbury is the brand leader in the chocolate
market. Cadbury needs to keep the same status in the market to get its profits and not to
allow competitors to gain their market share. It can be maintained by using the same
strategies and introducing new ones. As the segmentation, targeting is on its proper place,
CDM should not change them unless customers need change else they will lose their
customers. Eclairs marketing mix is successful because of their successful strategies. They
applied all 7ps properly to satisfy consumer and gain their loyalty.
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CDM should come up with different ideas In terms of advertisement as there have been
situations where a certain commercial has not been able to bring in consumers.
CDM should try new market areas to create other products such as dairy, packaged foods
etc. this can be looked out for as they have merged with Kraft and emerging changes are
likely to come.
Another recommendation can be to make something out of eclairs example making a kind of
eclairs or pops which kids of age group of 0-5 can enjoy along with the energy and vitamins
from it. Materials which give benefit both mentally and physically should be used.

Reference List

Laurie J. Mullins, (2008) Management and Organisational Behaviour (7 th edition)

Pearson Education, Limited, United Kingdom page


www.cadburyindia.com

Kotler, P (fourth Indian reprint 2004) marketing Management eleventh edition chapter
10 & 11.

http://www.scribd.com/doc/12785098/Cadbury
Marketing Management.
Marketing.

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Bibliography
1) Philips Kotler (first published 2009) marketing management, Pearson education ltd.
2) http://collaboration.cadbury.com/allaboutus/ourbrands/featurebrands/Pages/Eclairs2.
aspx?TabIndex=1
3) www.cadburyindia.com/heritage/howiscadburymade.asp
4) http://wiki.answers.com/Q/Outline_factors_that_influence_the_choice_of_targeting_st
artegies#ixzz17ITeyKSH
5) Mullins, J (2008) Management and Organizational Behaviour 7th edition
6) Source: Vasishtha, (2009) VIVA Books Pvt. Ltd, first Indian Edition pg.8
7) http://www.authorstream.com/Presentation/patilnikhil26-139621-dannycadbury-entertainment-ppt-powerpoint/

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