Marketing Strategy of Nestle vs Cadbury

Hershey’s and Cadburys are moving towards the premium chocolate market through the acquisition or upmarket launches (Zietsma, 2007). The profit potential present in this sector supported by its 20% annual growth rate make it very attractive for large organizations to come forward and avail this opportunity. There is a low threat of new entrants prevailing in this chocolate industry because of the high capital requirements and expected retaliation by current manufacturers. Current players in the industry also possess some barriers to entry for new entrants by maintaining economies of scales with their large production capacity and keeping their product differentiation with their specialized and novelty chocolate products. Even though there are low switching costs and easy access to distribution channels, but still the brand loyalty of the customers including the Rogers’ Chocolate itself make it harder for new firms to come into the competition.

Cadbury is a British multinational confectionery company wholly owned by Mondelez International since 2010. It is the second-largest confectionery brand in the world after Wrigley's. Cadbury is internationally headquartered in Uxbridge, West London, and operates in more than 50 countries worldwide. It is famous for its Dairy Milk chocolate, the Creme Egg and Roses selection box, and many other confectionery products. Cadbury was established in Birmingham, England in 1824, by John Cadbury who sold tea, coffee and drinking chocolate. Cadbury developed the business with his brother Benjamin, followed by his sons Richard and George. George developed the Bournville estate, a model village designed to give the company's workers improved living conditions. Dairy Milk chocolate, introduced in 1905, used a higher proportion of milk within the recipe compared with rival products. By 1914, the chocolate was the company's best-selling product. Cadbury, alongside Rowntree's and Fry, were the big three British confectionery manufacturers throughout much of the nineteenth and twentieth centuries.

Whilst making marketing decisions a business must decide their method of marketing. This will then be the way in which all future marketing activities will be planned. This is marketing planning. It has a huge number of benefits for any business. It’s influenced by the strategic plans of the business and its corporate objectives. Large public limited companies such as Nestle will usually have an overall plan for the business and has set objectives which they’re able to achieve. Smaller companies within the business will then create their own marketing plans which fit in with the overall strategic plan. The business has to consider several questions before coming up with the marketing plan:

The following advertising campaign analysis with provide a product and target audience analysis on a chosen confectionery product that was advertised in Australia between 2014 and 2015. This analysis will focus on Nestlé Kit Kat ‘Break Rescue’ campaign that ran from May to October 2014. The series of four television advertisements show a team of 'Breakguards ' that intervene when a break is in danger of being interrupted. Each advertisement is set in a relatable break environment that demonstrates how a Kit Kat and ‘Save your Break’.

With Nestle being recognized worldwide, providing a wide variety of products ultimately results in greater flexibility and leverage for organizational decisions. In addition, existing products are prone to become stronger and gain greater value through innovations and R&D. The stronger Nestlé’s brands are the more value they can create, not only for their consumers, but also for their shareholders.

One important underlying driver of change in the chocolate industry is the large manufacturers lobbying to change the definition of the term "chocolate" under USFDA guidelines, if they are successful in doing this then this could potentially have a dramatic impact on the competitive environment, with lots of cheaper products

Nestlé, use local resources and brands, and the aim is to optimize ingredients and processing technology to local condition, they develop local foods for local markets. For example, in Nigeria, Nestlé has to take in consideration the level of violence and the road system, which is not developed enough so it obliged Nestlé to rethink about its traditional distribution method (central warehouse).

Strengths = Premium chocolate markets grows 20 percent annually, high quality hand wrapped packages, stores are located in tourist areas (cruise ship traffic), well established in history, high quality ingredients

Eventually, the globalization of cocoa beans brought an idea to the minds of two young men in the 1800s. According to an article “The Creation of a Company Culture: Cadburys” by Charles Dellheim, the start of Cadbury wasn’t even chocolate. Instead, John Cadbury, the founder of the company, traded tea and coffee in Birmingham which later grew to become a factory process. However, when his sons George and Richard Cadbury took over, the company was already dwindling and on the verge of collapse when they ingeniously changed the product from tea and coffee to cocoa and chocolate. They also changed the process of cocoa making and utilized the Dutch process to make the chocolate taste better and it resulted in a much higher quality chocolate (Dellheim, 17). Even from the very start, the Cadbury company might not have succeeded without globalization, as it was the Dutch process of chocolate-making that allowed the British firm to really take off in the mid-19th century, with its signature Dairy Milk bar released in 1905. The family-run business gradually expanded over the years throughout England and then built its first overseas factory in Australia in 1919. This was during the modern period when other brand names such as Coca-Cola, Remington, and Campbell started making themselves known on the global market

The company has to consider developing its chocolate product lines to attract new customers while maintain the current customers. This is an important strategy to beating the high competition it faces (Thorntons PLC,

This factor can be critically evaluated. Whereas, Apple mainly relies on factors related to technological innovations and development, Cadbury's main focus is on the taste of the chocolate. Thus, Cadbury often faces challenging situations because consumers can deal with the exclusion of technological advancements to some extent but they never compromise in the case of the taste of food. But, most experts agree on the fact that these companies have hardly ever taken or implemented a wrong decision. This is the reason why Apple and Cadbury are the leaders in their respective segments.

Nestlé has as objective recognized as the World Food, health and welfare, the confidence of all concerned and that the basis of the financial performance in its sector. Believe that the leaders is not only a question of size, also on their behavior. Recognize the confidence obtained through a long period of time, making systematically in its promises. These objectives and of the behavior in the simple encapsulés the phrase "good food, good life", a phrase sums up its ambition. The sheet of Nestlé serves for the creation of the approximation to their employees behind a consistency in the strategic priorities to accelerate the achievement of its objectives. These objectives require its members a mixture of inspiration in the long term for the construction of the future and short-term measures, improving business performance. Seeks to achieve the leadership and this trust, in accordance with the expectations of consumers, whose election day of its performance, shareholders of the municipalities in which they

Effective marketing begins with an estimated marketing strategy. A good marketing strategy helps in defining vision, mission and business goals and explains the steps need to achieve these goals.

The material world is objective while the people’s psychologies are very subjective. The same concepts from different people may mean different implications. The concepts of strategy tend to be used in many scenarios and embody different meanings. The marketing strategy also has its specific connotation and extensions. And there are some difference among the academic and practitioner for this concepts. So, the marketing strategy concept needed clarification.

Their main goal is they endeavour to bring buyers sustenance’s that are sheltered, of high calibre and give ideal supplement to address physiological issues. Nestlé gives choices to all individual taste and way of life inclinations.