Cadbury Company’s Marketing Research

The ability of Cadbury to make market and marketing research

The ability to make market and marketing research is an integral part of the success of any firm. Market and marketing research allows a company to identify the existing opportunities and threats, analyse the conditions of the market, study the target audience to address their needs better, and test the waters before launching a new product or entering a foreign market (Ayuba & Kazeem 2015).

Cadbury is a British-based and American-owned confectionary company that operates worldwide. It was named one of British most successful exporters by The Telegraph. To my opinion, Cadbury demonstrates a perfect ability to do market and marketing research. In theory, two ways exist for companies to perform continuous expansion: constant update of products and expansion through the acquisition of new entities. Cadbury has chosen the first way, and it uses market and marketing research to follow this route.

In addition to the analysis of the conditions, threats, and opportunities in each new market, the company employs consumer review as a part of its market and marketing research. Cadbury does its best to dissect the decision-making process and understand how customers make decisions and what factors could make a person buy a Cadbury product (Designing market research – applying cognitive theory 2016).

Two examples can be mentioned to demonstrate the ability of Cadbury to perform market and marketing research. When Cadbury was preparing to launch a Picnic in India, the company conducted consumer review and found out that bright colours and international packaging would attract customers. This knowledge allowed a successful launch of Picnic (Kumar 2008, p. 78). Previously to introducing Snowflake to the Irish market, Cadbury tested its feasibility with a careful analysis of risks and profits.

Then, the company performed a test marketing of the new logo and name trough a study that made respondents talk about their associations with the name and logo. These research activities also lead to a successful launch (The Irish Times 2000, p. 1-2). The company is recommended to perform market and marketing research not only while entering a new market but also as a part of constant update of the existing information such as the appearance of new market entrants.

The ability of Cadbury to formulate effective distribution strategy

As I am convinced, Cadbury has employed an effective distribution strategy that also composes a part of the general success of the company and made it attractive enough for Kraft Foods to purchase. Cadbury has occupied the ‘instant consumption’ distribution channels, particularly corner shops and convenience stores located at bus stops and petrol stations (Brummer 2012, p. 64). Relying on its market and marketing research, the company knows that in such places, the decision-making process is very fast: a potential consumer is most likely in a hurry, and a product of a well-known brand in a bright packaging would attract their attention.

Moreover, the hurrying consumer would not mind if the price would be somewhat higher than in big stores because they value the instant access to the product more than the opportunity to save up some money. Such a strategy ensures the growing revenue and ever-increasing popularity. Thus, the company capitalizes on the existing distribution chains (convenience stores).

Distribution strategy is an important part of the marketing mix, composing the “place” in the 4 P’s (Ettenson, Conrado & Knowles 2013). The company successfully combines it with two other P’s: product and promotion. However, I would recommend Cadbury to focus on price as well: the rivalry in this market segment is growing, and the new competitors may beat Cadbury with lower prices.

Reference List

Ayuba, B & Kazeem, AO 2015, ‘The role of marketing research on the performance of business organizations’, European Journal of Business and Management, vol. 7, no. 6, pp. 148-156.

Brummer, A 2012, Britain for sale: British companies in foreign hands – the hidden threat to our economy, Random House, New York.

Designing market research – applying cognitive theory. 2016. Web.

Ettenson, R, Conrado, E, & Knowles, J 2013, Rethinking the 4 P’s. Web.

Kumar, SR 2008, Conceptual issues in consumer behaviour: the Indian context, Pearson Education India, New Delhi.

The Irish Times 2000, Cadbury: using market research to launch new brand. Web.