Winter 2010

PGDMS

STRATEGIC MARKETING PLAN

“Cadbury Schweppes”

CADBURY FARM MILK

Submitted by: Syed Shayan Uddin Hassan

Student identification number: 2595-10900

Submitted to: MR. Paul Brady

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 Table of Contents

SERIAL PAGE
NO NO
1 Introduction 4
2 Executive summery 5
3 Purpose & Values 7
3.1 Issue 7
3.2 Introduction to Dairy Sector 7
4 Definition of the Marketing 8
5 The Product 9
6 Internal Review 9
6.1 SWOT – Analysis 9
6.1.1 Strengths 10
6.1.2 Weaknesses 10
6.1.3 Opportunities 11
6.1.4 Threats 12
7 External Review 12
7.1 PEST Analysis 12
7.1.1 Political 13
7.1.2 Economical 13
7.1.3 Social 14
7.1.4 Technological 14
8 The Strategic planning process 15
8.1 Segmentation 15
8.1.1 Basis for segmentation 15
8.1.2 Geographic Segmentation 15
8.1.3 Demographic 16
8.1.4 Psychographic 17
8.1.5. Behavior 17
8.2 Targeting (Evaluation) 18
8.3 Porter’s five Model 18
8.4 Positioning 20
8.5 Possible competitive advantages 20
9 Marketing Mix Of Cadbury Form Milk 21
9.1 Total Market Share of Processed Milk 21
9.2 Positioning Of Cadbury Farm Milk 22
9.3 Positioning Statement 22
10 4P’s Of Marketing Mix 22
10.1 Product 23
10.2 Price 24
10.3 Place 24
10.4 Promotion 25
10.4.1 Advertising 25
10.4.2 Sales promotion 25
10.4.3 Public Relations 25
10.4.4 Personal selling 25
10.4.5 Direct Marketing 26

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10.4.6 Channel level 26
11 Indirect channel level 26
11.1 Distribution Channel 27
12 How marketing has changed in the modern environment 27
12.1 Digitalization and connectivity 27
12.2 The internet Explosion 28
12.3 New intermediaries 28
12.4 Customization and customerization 28
12.5 Marketing strategy in new digital age 28
13 Bibliography 30

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 1: INTRODUCTION

For the purpose of creating marketing plan we take a situation in which “Cadbury
Schweppes” is first time entering into the Pakistan farm milk market. Our
detailed study shows how will the company gains competitive advantage
and/or adds value using its core competencies to align towards the Key
Factors for Success (KFS) in our selected industry sector and identify any
major problems that we see as being significant. After understanding the
current company’s position and industry scenario we have recommended
what we seems to be the most appropriate future strategic direction for the
firm to begin to take, in order to meet the challenges of the forthcoming
project.

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 2: EXECUTIVE SUMMERY

This Marketing report has been compiled to solidify the basic marketing concept and
give an outline of how to launch a new product in Pakistani market. Marketing
research is based on measuring consumer behavioural variables and their different
view point regarding our target market. This research tries to answer what strategies
should be taken to introduce “CADBURY FARM MILK” In highly competitive
market of Pakistani dairy milk.

After analyzing current market situation we reveals number of position and

promotional strategies that will be helpful in successful launch of Cadbury farm milk
into the market.

“His dairy industry has tended historically to be one of the world’s most highly
regulated food sectors. It is being deregulated throughout the world, but it is likely
that extensive national regulations will remain important factors in most nations,
outside of Australia and New Zealand. Nevertheless, international mergers and
acquisitions will occur at an increasing rate, and with technological change, the
industry will likely be transformed within the next two decades.

These processes, however, are not inevitable. Stakeholders in these industries,

including unions, farmers, and governments, can play crucial roles in determining the
Pace and shape of restructuring, although economic and technological change has a
certain air of inevitability about it, the precise natures of those changes are not
inevitable. The decision of the Australian Government in 2000 to ‘soften the pain’ of
dairy deregulation through a AUD 1.8 billion restructuring package shows that
governments at least can still intervene in industrial change”. Key issues identified by
source:(http://www.parliament.wa.gov.au/hansard/hans35.nsf/
(ATT)/88558A301B2F53B348256912000FDEBA/$file/C0627003.PDF)

“In Europe, globalization in the food industry has been accompanied by an

intensified push to codify and protect geographical distinctiveness in the labelling of
regional produce. Moreover, as the current debate over the WTO suggests, the
future direction of multilateral trade negotiations is unclear. Hence, while there

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seems little doubt that in the next two decades the global dairy industry will be
transformed, the shape of that transformation, and the roles of stakeholders such as
unions and farmers within those transformations, is yet to be determined”.

Source: (http://www.stanford.edu/~josling/berkeley.pdf).

We came across the fact that besides current economic crisis Pakistani dairy sector
have great potential of growth. Pakistan is the fifth largest milk producing country in
the world and government is promoting foreign investment in this sector. Therefore
chances of success are bright in this economic sector. We have formed the
strategies by carefully examining different marketing theories.

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3: POURPOSE AND VALUE:
Cadbury Schweppes enters into market with aim to give maximum satisfaction and
convenience to supportive customers and consumer. Their objective is to bring
100% Cadbury pure milk, which will be available to nearest market. Success is
determined on understanding the needs of today’s consumer.

3.1: ISSUE:

Cadbury Schweppes farm milk is entering into the Dairy product market.

CADBURY FARM MILK

For that we have analyzed the opportunity rational and industry structure of Pakistan
and in the light of our findings we have recommended which kind of strategies
should be helpful for Cadbury to be successful in this industry

3.2: INTRODUCTION OF DARIY SECTOR:

“Dairy sector can be counted among one of the fasted growing sectors in Pakistan
with currently about 17 units engaged in the production of various dairy products.
Currently Pakistan stood at 5th position in milk producing countries. This industry has
strong potential for future growth. Al though, currently nearly all the dairy units are
working below their capacities. They are aggressively marketing to create a sizeable
niche in the market. Milk, by and large, is the main ingredient of almost all dairy
products. Besides milk, milk powder and butter are also used in different dairy
products. Milk, as per requirement, is received from contractors and self-collection
canters.”(Source: Report of the 'Food Price Structure Study - Pakistan,
commissioned by Consumers International Asia Pacific Office, 2008)

Processed liquid milk in the form of pasteurized milk or ultra heat treated (UHT) milk
is the main dairy product in Pakistan, while other products include dry powdered
milk, cream, butter, butter oil, yoghurt, cheese and ice cream, etc. Dairy products
generally do not require use of chemicals in their production. However, caustic soda,

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nitric acid, hydrogen peroxide, and sodium chloride are mostly used in dairy
industries for cleaning and disinfecting of utensils and equipment

The manufacturing process of ultra heat treated (UHT) milk involves pasteurization,
homogenization, ultra heat treatment, and packing. The main utilities in dairies
include water, electricity, natural gas, fuel oils and steam.

4: DEFINITION OF THE MARKET:

“Cadbury Schweppes is internationally renowned beverage and confectionery
company having a reported market capitalization of £10 billion (December 2004).
Since 200 years his company is serving with high quality product and it has stretched
its business all across the world. Today fifty five thousand people are employed and
produced one of the finest products in the world”

Source:(http://cadburyar2008.production.investis.com/en/strategic-review/world-
confectionery/cadbury-markets.aspx)

“Concentrating on their core brands in beverages and confectionery since the 1980s,
the company have strengthened their portfolio through almost fifty acquisitions,
including brand icons such as Mott's, Canada Dry, Halls, Trident, Dentyne,
Bubblicious, Trebor, Bassett, Dr Pepper, 7Up, Snapple and Orangina. The purchase
of Adams makes them leader in the global confectionery market and the only one to
span all three categories - chocolate, sweets and gum. Cadbury Schweppes is
counted among world’s top three beverage companies, proudly holding the Britain’s
most admired company award”

Source: :(http://www.palgrave.com/business/burns/students/pdf/07%20Cadbury
%20Schweppes.pdf)

“Cadbury Schweppes” is the successful brand in dairy chocolate history of

Pakistan, now their team has come up with the ideas of expanding their operation in
Pakistan by entering to new industry of dairy milk. The purpose of this project is to
develop complete marketing strategy for Cadbury Farm Milk according to Pakistan
market requirement.

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5: THE PRODUCT:
We are offering natural milk to the market. Our core product is purely hygienic and
natural milk providing it in glass bottle. This also include in our brand name, quality
level and design of bottle. Our product becomes augmented, when we talk about our
delivery system from distributor center, and providing home delivery. Our product is
all consumer products, which consumer buy on daily basis.

6: INTERNAL REVIEW:

6.1: SWOT – ANALYSIS:

“The next component of strategic thinking requires the generation of a series of

strategic alternatives, or choices of future strategies to pursue, given the company’s
internal strengths and weaknesses and its external opportunities and threats and
these are normally referred to as a SWOT analysis”. (Strategic management theory:
an integrated approach, Charles W.L. Hill, Gareth R. Jones P2008 p19)

WEAKNES
STRAINGH SES
T

OPPORTUN
THEARTS
ITIES

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6.1.1: STRENGHTS:
 Dairy industry:
Pakistani dairy industry is one of the largest and fastest growing industries of
world.

 Pure and hygienic milk:

We provide pure and hygienic milk. It is well boiled before being available in
markets. It is processed through our laboratory to purify it from any remaining
bacteria.

 Quality assurance:
We make sure that we maintain our quality for our customers. Milk is passed
through our specialized quality assurance department where it is checked
thoroughly and a “Quality assurance certificate” is issued for satisfaction.

 Affordable price:
Our prices are low and affordable, targeting all the classes.

 Convenience:
Our product is available at our 6 sales points for our customer’s convenience.
In addition to that we also provide milk at door steps.

 By product of dairy is used in agricultural.

3.1.2: WEAKNESSES:
 Production of milk falls to 55% of peak production at its lowest point in mid-
June.
 Competition:
With so many existing competitors and new comers entering the market,
competition is becoming tougher day by day.
 Uncertainty:
There is a chance that due to present established brands we might take some
time to make our mark. We would have to deal with a lot of marketing of our
milk in order to make our customers aware of the additional benefits we are
providing in our product.

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  Logistic of procurement:
Woes of bad roads and inadequate transportation facility make milk
procurement problematic (difficult). But with the overall economic
improvement in Pakistan, these problems would also get solved.
 Increased demand:
Demand increases 60% during June compared to December when the milk
supply is ample.

3.1.3: OPPORTUNITIES:
“If opportunity doesn’t knock, builds a door.”Milton Berle bears out this statement
perfectly. We have to find the right market share to penetrate in and then look for
opportunities.

 Demand for low price.

People in Pakistan demand low prices in order to overcome the economic
crises in the country. People are earning less and paying more which makes
them economically weak and it affects their life style too. So we on the other
hand, provide them healthy milk at comparatively low price.

 Healthy milk.
Our top most priority is our customer’s health. Our milk is boiled and passed
through a quality test which ensures its quality, taste and purity. We do not
use any chemicals or artificial means to purify the milk which gives us the
edge on the existing brands.

 Capturing the market between carton milk and local milkmen.

Our focus is to provide healthy and pure milk. Free of chemicals and artificial
additions as well as watered milk. So we position ourselves in between the
carton milk producers and the local milkmen.

 Scope for innovation.

There is a phenomenal scope for innovation in product development,
packaging and presentation.

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3.1.4: THREATS:

 Milk vendors, an un-organized sector.

Today milk vendors are occupying the pride of place in the market. Organized
dissemination of information about the harm that they are doing to producers
and consumers should see a decline in their importance.

 Shortage of animals.
The shortage of milk providing animals is a major threat to the entire milk
industry. It may be due to diseases or our carelessness.

7: EXTERNAL REVIEW:

7.1: PEST ANALYSIS:

“PEST analysis can be used to help detect trends in the external environment that
will ultimately find their way into the competitive environment”. (Understanding
strategic management, Anthony Henry p2008 p51) PEST analysis is helpful in
understanding the macro environment of the country. It can help in identifying the
prevailing opportunities and diagnose the existing threats in the environment. It is
comprised of the evaluation following four factors

S
ITIC
POL CAL
I
NOM
ECO

AL
OGIC
NOL
TECH SOC
IAL

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7.1.1: POLITICS:

“Current investment policies have been tailor made to suit investor needs. Pakistan's
policy trends have been consistent, with liberalization, de-regulation, privatisation,
and facilitation being its foremost cornerstones”

Source: (http://www.pakboi.gov.pk/5keyreasons.htm)

Pakistan’s political conditions are favourable now-a-days because our government

has very effective policies both for economic and political wellbeing of the country.
Government is taking several favourable steps to attract and facilitates foreign direct
investment.

“Foreign investors are allowed to hold 100% equity of industrial projects without
permission of the Government. No Government sanction is required for setting up
any industry, in terms of field of activity, location, and size”

Source :(http://www.tahseenbutt.com/investment_in_pakistan.html)

7.1.2: ECNOMICAL FACTORS:

“According to economic watch 2009, Pakistan economic condition are not so good,
rupee’s value is sharply decreasing against dollar reported fiscal deficit was 7.4 in
2008. Although it’s currently going through the worst phase of economic instability
but still it is known as one of the fastest growing developing countries but poor
indeed. In July 2009 the situation gets a little stable and huge loan have been taken
from central bank. Pakistan Government aims at reducing the poverty and enhancing
infrastructure to support foreign investors as it will generate more employment
opportunity for people and helps in bringing prosperity” source: (Online journal
Economic Watch http://www.economywatch.com/economc-conditions/pakistan.html)

Prevailing recession all across the world has affected Pakistani economy badly but
government is taking different initiative to control the situation. There developments
on international economic scene created uncertainties. The world economic position
remains submissive and global trade is expected to stay slow during the ongoing
fiscal year.

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7.1.3: SOCIAL:

In Pakistan, awareness regarding importance of packed milk is gradually increasing

among the people .people are getting more health conscious and preferred high
quality food and beverages as far as they can afford it. All these factors are
supporting to packed milk industry.

Therefore there are some groups which can influence the decisions of others; these
include reference group, primary group and inspirational groups.

7.1.4: TECHNOLOGICAL FACTORS:

Pakistan is growing country and progressing fast. As far as technological factors are
concerned, companies are equipped with high tech and updated machinery and
plant for the processing of milk. Two type of milk processing is UHT and pasteurized
milk. As Cadbury has been involved in the processing of milk for its dairy
confectionary therefore it will help the country like Pakistan for the transfer of
technology and foreign direct investment. Also the import policies are favourable for
of high tech machinery hence the trends concerning the technology are favourable to
Cadbury.

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8: THE STRATEGIC PLANNING PROCESS:

“The strategic planning involves the following steps which are first undertaken and
analyzed before any planning. These steps are”

 Segmentation
 Targeting
 Positioning

Basis for segmentation

The basis for the Segmentation

 Geographic
 Demographic
 Psychographic
 Behaviour
(Developing marketing strategies, Principles of marketing Kotler Amstrong, p2005
p118)

8.1: SEGMENATION:

“A marketing orientation is based on a customer-driver focus. During the past two

decades we have seen the rise of market segmentation in business markets.
Introduced into the marketing community by the late Wendell Smith in 1956, a half a
century later, segmentation has evolved from an academic concept into a viable
“real-world” planning strategy” (Market Segmentation Art Weinstein PhD, p2004 p4)

8.1.1: BASIS FOR SEGMENTATION:

8.1.2: GEOGRAPHIC SEGMENATION:

“The total population of the Pakistan is 172,800,000 (As on July 2008 federal bureau
of statistics) with a growth rate of 2.69%. In the total of this the urban population is
32.52% and the remaining portion 67.48% lives in the rural areas. If we take the
products like packed milk then the large portion of the packed milk is used in the

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urban areas. So with respect to the packed milk industry we can make two segments
geographically.

• Urban Population
• Sub urban population”.
Source :(http://en.wikipedia.org/wiki/Demographics_of_Pakistan#Geographic_distribution)

The use of the packed milk is mostly in urban and sub urban areas and a very small
percentage is used in the rural area. So in order to get the maximum profit and to
operate successfully urban and sub urban area is the best for this purpose.
Geographic segmentation is separating the market into some different geographical
units. In the packed milk industry, the geographic market segmentation is

PUNJAB BALUCHISTAN
(Urban, Suburban) (Urban, Suburban)
SINDH
(Urban, Suburban)
NWFP
(Urban, Suburban)

8.1.3: DEMOGRAPHIC:
We can use different techniques in order to divide the urban population into different
segments. We have chosen Social economic classes for this purpose. In Pakistan
we have:

A Class:

This is the well-educated employed class where chief earners are predominantly
post-graduates working as lower/middle executives or officers in government/semi-
government institutions. Housewives are reasonably well-educated and significant
percentage of them has bank accounts. Penetration of durables and packaged items
is high.

B class:

It include shopkeepers lower/middle officer, supervisor. The housewife of B class

takes packed milk a prestige item. So our more targets belong to this class.

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Penetration of packed milk in this class is more than Farmer milk. Substantial
penetration durables such air-conditioners, deep freezers, cooking ranges and
medium size television set.

C Class:

People in c class normally are shopkeepers. Their education varies from primary to
post-graduate/professional level. In this class housewives are illiterate 3 out of 10.
Penetration of expensive durables is low. However, penetration of packaged items
and durables such as sewing and washing machines is substantial.

D Class:

This is lower middle class. The chief earners are skilled workers, shop keeping or
non-executives employees with some school or college education (intermediate).
Consumption of packaged edibles and FMCG’s is moderate. The total population is
9.18 million Source: (http://en.wikipedia.org/wiki/Demographics_of_Pakistan)

8.1.4: PSYCHOGRAPHICS:

This looks at the way of life model of public and tries to identify how people spend
their time and money. It is not worth that two families with same income, same social
status, in same locations may have extremely lifestyle with observe to holidays for
example.

8.1.5: BEHAVIORS:

Behaviors is important factor in segmentation as Brand loyalty and value of quality

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8.2: TARGETING (evaluation)

8.3: PORTER 5 FORCES:

Size:

The size of the market, we are going to target is reasonable and suitable. It has a lot
of potential for new entrants as people are becoming more knowledgeable and
health conscious.

Growth:

In respect of industry growth, the targeting of this segment is also reasonable and
suitable. The industry has a huge potential and has a high growth rate if a new
entrant is coming with different strategy. So, it is quite logical and reasonable to
target the segment.

Rivalry:

The industry has four major players that are our competitors. Although only two of
them are falling in the same category i.e. pasteurized milk. These players are Amul
and FARM MILK. If we see the size of the market, potential and low growth, the
competition in the market and existing players are not very large. The targeting of the
segment is logical and reasonable.

Entry Barriers:

Entry barriers are not very high as we have somewhat balanced conditions. We also
have the technical knowledge and experience in the field. The only problem and
hurdle is the high cost of acquiring the latest technology. So, over all the situation is
in our favour.

Exit Barriers:

The main exit barriers always are govt. restriction and other legal obligation, the
lowest salvage value of equipment and structure, and emotional barriers. In all these
only low salvage value of equipment and structure is a major hurdle and emotional
barriers can also cause.

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Exit Barriers:

Low High

Entry
Barri
ers

High Low, risk

Lo Returns
w

CADBURY

Low, Stable

Returns

High, Stable
High, Risky
Returns
Returns

Bargaining power of buyers:

Due to high growth and huge market potential the bargaining power of buyers is not
strong and influential. Large number of buyers makes this industry more attractive,
reasonable and favourable to enter.

Substitute Availability:

In respect of substitute availability the market is not so much attractive and

profitable. There are substitutes available in the market for our products, it can take
two forms:

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  The competitors’ products e.g. HALLA, NESTLE MILK PAK, HALEEB, FARM
and NURPUR etc.
 The new technology e.g. Ultra heat treated (UHT)
8.4: POSITIONING:

The packed milk industry is attractive and profitable. Besides this it is consistent with
our corporate direction and objectives. There is no conflict and confusion with our
corporate mission. We also have technical knowhow and experience in the field as
well as we have synergy with our marketing, R&D, and other departments. We have
no major problems in serving the segment and have required strengths to serve the
segment. All this shows that the segment and industry is quite reasonable and
suitable to enter because it also has a logical flow with our corporate direction and
objectives.

8.5: POSSIBLE COMPETITIVE ADVANTAGES:

“The key to winning and keeping customers is to understand their needs and buying
processes better than competitors do and to deliver more value. Positioning begin
with actually differentiating the company market offer so that it will give consumers
moiré value than competitors offers do. A company or market offer can be
differentiated along the lines of product, services, channels, people or image”.
(Strategic Marketing Planning, Colin Gilligan and Richard M.S. Wilson first edition
P2003 second ed.2009 p390)

The Cadbury has been serving many countries by providing its dairy and beverage
product due to sound financial and social position of the company; it is one the most
admired company in UK. Cadbury will enjoy the following competitive advantages in
the market.

1. Image

2. Financial health

3. Socially responsible firm

4. Vast experience in dairy industry

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 5. Vast experience of research and development

6. Strong logistics and efficient sales force management.

9: MARKETING MIX OF CADBURY FARM MILK:

9.1: TOTAL MARKET SHARE OF PROCESSED MILK:

Type of Milk Market Share in Volume Sale price Rs/Liter

Open Farm Milk 90% 30-40
UHT Tetra Pack 4.98% 45
Open Pasteurized Milk 3.76% 35
Open milk sold at milk 0.98% 30
shops
Pasteurized Pouch 024% 45
UHT Poly pack 0.02% 22
Direct to Home 0.02% 35-40
Source: http://www.fao.org/ag/AGP/AGPC/doc/pasture/dost/fodderdost.htm

As we identified our main competitor that is Farmer who is serving the 90% of the market
as shown in the table above. The penetration of Farmer milk is so in depth that it has
become part of the norms of Pakistani society. In order to, challenge its strengths we have
identified its weakness in its strengths that is inefficient home delivery and different rate
brackets for different customers.

The indirect competitors are HALEEB, NESTLE MILK PAK, HALLA, NURPUR, and FARM
MILK. The market penetration of these competitors is very low as shown in the above
table. Recently all companies have changed their previous policies and they are
aggressively doing promotion and using competitive prices to capture the part of each
other. In case of HALEEB their main strength is huge customer base and they also claim
thickness in their product. But recently they are doing promotion and reducing pricing to
milk their brand. By decreasing their price they increase their share and customer base. If
we see the second major player NESTLE their main strength and positioning is based on
value added services.

Recently all companies are trying their best to reduce the packaging cost of the product
as all the companies are relying on sole company Tetra Pak for its packaging, for example
HALEEB has introduce various types of packaging for its products like fino packaging i.e.,
Dairy Queen and plastic bottle packaging i.e., Candia and have also introduced various
sizes of tetra packaging for the convenience of the consumers.

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9.2: POSITIONING OF CADBURY FARM MILK

After analyzing the whole situation of the market’s major players, their recent trends and
strategies we have decided to position our product, also according the needs and
requirement of target customers.

According to the survey results main emphasis of customers is on the following items.

 Price
 Home delivery
 Thickness
So, according to the requirement and demand we are emphasizing on these three most
important attributes. So, we can say that we are using Triple Benefit Positioning. We
will provide our customers with efficient delivery of milk at lowest possible price.

9.3: POSITINING STATMENT:

“Pure milk because we cares

you”
CADBURY FARM MILK

10: 4 P’s OF MARKETING MIX:

“Data collected from the survey were analyzed and resulted into the 4 P’s of marketing
mix. The 4 P’s of marketing mix (product, price, promotion and place) where the
fundamental concept for marketing, which were widely used by marketing practitioners in
developing marketing strategies”

(Management, marketing and promotion of library services based on statistics, Trine

Kolderup Flaten p2006 p263)

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4 P’s of MARKETING MIX OF CADBURY FARM MILK:

IN order to get the marketing objectives of Dairy Farm Milk and overall objectives of
the business, Cadbury’s have to consider its Marketing Mix. This refers to those
essentials of a firms marketing plan, which are planned to find the requirements of
the customers. We can describe here four parts to the marketing mix (product price,
promotion and place) the marketing mix is frequently referred as the 4P’s to find
customer’s needs Cadbury Farm milk have to produce the exact product at the
correct price also make this available at the exact place. And also let customers
identify bout it throughout the promotion new ideas to capture the market.

MARKETING

PRICE PLACE

PRODUCT PROMOTION

10.1: PRODUCT:

We are offering pasteurized milk to the market. Our core product is pasteurized
providing it in glass bottle and the glass bottle and its labelling. And its feature and its
labelling and its sealing are these entire actual products.

-this also include in our brand name, quality level and design of bottle. Our product
becomes augmented, when we talk about our delivery system from distributor

23
canter, from selected super store by providing them with vesicular of Cadburys and
by offering house delivery. Our product all too all consumer product, which consumer
buy on it daily basis.

10.2: PRICE:

We are using competition base pricing method in order to determine our price. We
have adopted this method because Pakistani market is a price sensitive market. This
is a going rate pricing and we are offering other incentives along with pricing method.

Our market strategy is market penetration strategy because we are setting low price
for a new product in order to catch the market and attract a high number of
consumer and high volume of market share. We are offering other value added
services on this low pricing. Actually our aim of adopt6jig this strategy is to attracting
Farmer market by passing an on profit to consumer in the start.

10.3: PLACE:

The function that Cadbury distribution channel perform include.

1. Information: gathering and distributing marketing research and intelligence

information.

2. Promotion: our distribution will develop and spread persuasive communication

about each and every offer of Cadbury.

3. Contact: Cadbury assign a target for finding and communicating with prospective
consumers.

4. Matching: Cadbury distributor would remain flexible in the start for shaping and
fitting the offer to the buyer needs.

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5. Negotiation: our distributor would remain on negotiating with end consumer on
the terms of time of delivery and other incentive on heavy usage.

10.4: PORMOTION:
In promotion we are following the communication mix.

• Advertising
• Sales promotion
• Public relations
• Personal selling
• Direct marketing
• Channel level

10.4.1: ADEVERTISING:
Cadbury do advertise on both print and electronic media as well as on internet
through our website. Cadbury will also advertise through brouchers, booklets,
posters, leaflets, billboards, display sign and point-of-purchase displays.

10.4.2: SALES PORMOTION:

For sales promotion Cadbury has a plan for sampling, a grand fair and trade and
show and premiums and gifts.

10.4.3: PUBLICK RENATIONS:

For public relations Cadbury has international as well as a local website for
consumers. We also have strong data base for our consumers. We also have events
with equal intervals.

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10.4.4: PERSONAL SELLING:
Cadbury is offering personal selling of company sales representatives at regional
distribution centre and also through home delivery. Fairs and trade shows which we
have planned are also a part of personal selling.

10.4.5: DIRECT MARKETING:

Cadbury has comprehensive web site that is a source of direct marketing by mailing
to consumers.

10.4.6: CHANNEL LEVEL:

We are using indirect channel of distribution because we are offering consumer to

buy from our regional distribution centre or you can buy it from selected supper store
and we are also offering home delivery services.

11: INDIRECT CHANNEL LEVEL:

Manufacturing
Cadbury is following the indirect channel of distribution
plant

Regional Regional Regional

distribution distribution distribution
centre centre centre

Super store Consumers

Sales rep

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Consumers Consumers
 VMS (vertical marketing system)

Conventional Marketing system

11.1: DISTRIBUTION CHANNEL:

We are using both conventional as well as vertical marketing system (VMS) but our
main four is on vertical marketing system.

In vertical marketing system (VMS) we are following corporate VMS own distribution
canter. In we talk about Lahore, we divide Lahore in four regions and we have four
distribution centres in each part.

12: HOW MARKETING HAS CHANGED IN THE MODERN ENVIRONMENT:

Several factors plays significant role in the ongoing world economic procedure, this
includes technological innovation, globalization etc. digitalization connectivity and
internet has opened new horizon of marketing and promoting the brands. Here we
will discuss few concepts that have brought revolution in the field of marketing.

Digitalization &
Internet Explosion
connectivity

New types of
intermediaries

Customization & Marketing strategy in

customerization new digital age

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12.1: DIGITALIZATION AND CONNECTIVITY:

Gone are the days when appliances and other related technologies were operated
on analogue system but now a stream of information comes in forms of digits or bits.
These days a large amount of the business is carried out online. Intranet and
extranets connects company internal and external stakeholders

12.2: INTERNET EXPLOSION:

Since its creation in 1990’s it has brought tremendous opportunity to innovatively

communicate worldwide. Every business has developed its virtual place online and
offers extensive range of services that eased the consumer shopping habits and
facilitates them at maximum.

12.3: NEW TYPES OF INTERMEDIARIES:

The invention of new type of intermediaries cause existing firms to revised their
service centers. Instead of relying only on brick and mortar companies, they have
also started building their click and mortar companies to compete in market.

12.4: CUSTOMIZATION AND CUSTOMERIZATION:

Customization is treated differently as customerization, customization means taking

initiative to customize the market offerings whereas in customerization the company
allow the customer to design he offering.

12.5: MARKETING STRATEGY IIN NEW DIGITAL AGE:

To compete in new digital world, companies have introduced following innovative

marketing strategies to grab the maximum market share

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Ecommerce includes e marketing and e purchasing. E marketing depicts the effort of
company to promote its product whereas e procurement is the purchasing side of
ecommerce. Following are the internet domains

 Business to consumer
 Business to business
 Consumer to business
 Consumer to consumer

Extensive range of products and services are offered online, and larger number of
population is getting benefited with it as online shopping makes buying easy and
private. It is also very interactive and immediate and internet provides great control
to its buyers.

Sellers are also benefited with it, as it cause them less expenses and more business
as compare to brick and mortar sales points.

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13: BIBLIOGRAPHY:
BOOKS:

1. (Strategic management theory: an intergrated approach, Charles W.L. Hill,

Gareth R. Jones P2008 p19)
2. (Understanding strategic management, Anthony Henry p2008 p51)
3. (Developing marketing strategies, Principles of marketing Kotler Amstrong,
p2005 p118)
4. (Market Segmentation Art Weinstein PhD, p2004 p4)
5. (Strategic Marketing Planning, Colin Gilligan and Richard M.S. Wilson first
edition P2003 second ed.2009 p390)
6. (Management, marketing and promotion of library services based on
statistics, Trine Kolderup Flaten p2006 p263)

WEB SOURCES:
7. Key issues identified by source:
(http://www.parliament.wa.gov.au/hansard/hans35.nsf/
(ATT)/88558A301B2F53B348256912000FDEBA/$file/C0627003.PDF
8. Source: http://www.stanford.edu/~josling/berkeley.pdf
9. (Source: Report of the 'Food Price Structure Study - Pakistan, commissioned
by Consumers International Asia Pacific Office, 2008)
10. Source:(http://cadburyar2008.production.investis.com/en/strategic-
review/world-confectionery/cadbury-markets.aspx)

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11. Source:
(http://www.palgrave.com/business/burns/students/pdf/07%20Cadbury
%20Schweppes.pdf)
12. Source: (http://www.pakboi.gov.pk/5keyreasons.htm)
13. Source: (http://www.tahseenbutt.com/investment_in_pakistan.html)
14. Source: (Online journal Economic Watch
http://www.economywatch.com/economc-conditions/pakistan.html)

15. Source: :
(http://en.wikipedia.org/wiki/Demographics_of_Pakistan#Geographic_distributi
on)
16. Source: (http://en.wikipedia.org/wiki/Demographics_of_Pakistan)
17. Source: http://www.fao.org/ag/AGP/AGPC/doc/pasture/dost/fodderdost.htm

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