The Most Appropriate Pricing Technique for Cadbury Essay

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.

Thirdly, option is to strategically adjust the prices of their products because consumers are often very price sensitive. By doing so the company can either create more value that defines the quality and quantity of the product.

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.

When setting a price for its products, a marketing manager will use more than one approach to find the cost. Consumer tastes and preferences lead Carmex to use a demand-oriented approach. Carmex has been a successful company for 75 years, they would do anything to appeal to their customers demands and the quality of product they have always delivered. Furthermore, the cost of ingredients, packaging, and manufacturing lead Carmex to use a cost-oriented approach so that they can cover the fix costs. Lastly, with the consideration of prices from competing brands, Carmex uses a competition-orientated approach when looking at other competing prices.

Perhaps you have seen one of The Real Cost commercials on television. A girl peels her skin off to pay for cigarettes, a bunch of monsters leap into a boys mouth, and kids come up with any reason not to smoke. This along with several other commercials created by the Food and Drug Administration are played to warn others of the harmful side effects of tobacco. A science class watches as the teacher dissects a hideous creature while listing off several chemicals. The commercial ends with “If cigarettes looked as dangerous as they are, you’d run like hell.” This is the commercial that will be examined in the duration of the paper, what makes it so powerful? And are people listening?

Pricing is important when marketing a product. The determining factor for the pricing is the material, time to make, amount spent on marketing and promotion of the product. The goal in providing such a product that is moderately

Cadbury uses market penetration strategies to keep people aware of their brand. They do this all in their current market. They do this by selling more to existing customers, like selling their products in multi-packs. This means that the customers can buy their products in larger quantities and it will encourage them to do so as they can have more of the product instead of buying it individually. They also use product development strategies such as selling new products in an existing market.

With the increasing trend in healthy diet preference, the underlying drivers of change of competition in premium chocolate industry at the strongest level are the buyers’ preferences for differentiated, refined products, instead of standardized ordinary products that are no longer demanded. In addition, baby boomers - generation with their disposable income are spending a lot on high quality premium chocolates.

Buckingham assumption about concession sales is that it will be about 50 percent of the revenue. We also assume that 80 percent of the tickets for each game will be sold. Of that, 15 percent are going to be students, 15 percent will be regular tickets, 5 percent senior tickets and 2 percent child tickets. The sale of the season ticket, 20-game and the 5-game tickets are respectively 2, 5 and 11 percent. We assume that 20 percent of tickets sold are family packages, and the last 5 percent is group tickets.

The premium chocolate market has been growing at 20% annually, showing that buyers are willing to pay more for a better tasting and better quality chocolate. The declining growth of the overall chocolate market and rapid growth of the premium chocolate market is positive for current producers of premium chocolates in that the decline

This assignment focuses on branding, pricing, and distribution of Clear-Springs, Inc.’s product and service. In this assignment, a domestic and global product branding strategy was created and the optimum pricing strategy was determined and discussed in detail. An examination on how the company’s pricing strategy supports its branding strategy was compelled and discussed in detail. A distribution channel analysis identifying the wholesaler, distributor, and retailer relationships; which included any e-Commerce was prepared. A justification of whether or not a push or pull strategy will be used was

Today’s highly competitive business world forces companies to create different tactics and relatively rely on multiple pricing strategies to conduct business.

Analysis of the Cadbury Business The person, who created the Cadbury business, is John Cadbury in 1824. The business started as a shop in a fashionable place in Birmingham. It sold things such as tea and coffee, mustard and a new sideline - cocoa and drinking chocolate, which John Cadbury prepared himself using a mortar and pestle. In 1847 the Cadbury business became a partnership. This is because John Cadbury took his brother, which also made it a family business.

Based on these 6 factors in setting a price: selecting the pricing objective, determining demand, estimating costs, analyzing competitors costs, prices and offers, selecting a pricing method and selecting the final price, Singapore GP Pte Ltd employed 2 different pricing strategies. They are

Price, which is one of the most important elements of the marketing mix, can be difficult to get right. Pricing too high, or low, can negatively impact on customer satisfaction and revenue. Adopting a pricing strategy is necessary to achieve desired sales objectives (Chan & Wong 2005).