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Integrated Marketing Communication plan forCadbury

CITY
COLLEGE
INTERNATIO
NAL
FACULTY OF
UNIVERSITY
OF
SHEFFIELD

INTEGRATED MARKETING
COMMUNICATION PLAN

INTEGRATED MARKETING COMMUNICATION PLAN

Executive Summary

INTEGRATED MARKETING COMMUNICATION PLAN

Table of Contents

INTEGRATED MARKETING COMMUNICATION PLAN

1. Introduction
The last time the integrated marketing communication became one of the most
researched topics for academic and advertising communities. According to Schultz
(1999), the IMC could be seen as a concept which recognizes the value of selected plan
in order to evaluate the strategic roles of a range of IMC disciplines. In addition, the IMC
help companies to achieve the communication objectives which are: to inform, persuade
and remind about the brand and products. The colossal development of new electronic
media and Internet generally had changed the marketing communications used by
companies last time. The marketers and advertisers need to take into consideration that
IMC are not like a twenty years ago which led them to face these challenges and to take
changes in designing, implementing and evaluating marketing communication strategies
(Keller, 1996).
Also, the marketing communication plays the significant role in creating the brand
image and relationship with stakeholders. In the most of situations the advertisement
and promotion of brand increase the sales volume and it is vital for the company due to
high awareness to brand brings market power and as a result competitive leverage and
higher profits (Dawar, 2004). The dramatic development of new electronic media brought
important changes in advertisement and marketing communication planning generally,
that led the companies to change the way of promotion through Internet tools and
especially social media. The marketers and advertisers faced some challenges such as
the evaluation and selection of new electronic media tools and the way to use them in
order to achieve marketing communication objectives and to find efficient marketing
communicator (Low, 2000).
The current marketing communication plan is established in order to raise
awareness to the Cadbury brand and to the famous Cadbury's product "Dairy Milk". In
the IMC plan presented the market situation, competitive analysis and the advertisement
campaign. The main reason of the IMC plan was to achieve marketing communications
objectives and goals.

1.1. A brief presentation of the Cadbury Company.


Cadbury is one of the biggest and largest confectionary companies in the world
and the history of the company began from 1783 when Jacob Schwep started the
production of carbonated mineral water in Switzerland. The Cadbury Dairy Milk, 5 Star,
Temptations and Gems are the key products of Cadbury with worldwide recognition. Also,
the company operates in three confectionary sectors such as: chocolate, gum and candy.
From 2010 the company is owned by Mondelez International the former Kraft Foods. The

INTEGRATED MARKETING COMMUNICATION PLAN


company operations are expanded through the entire world and achieving over 60
countries with amount of employees around 45,000 people. The Cadbury's headquarter
office is situated in London, UK.

1.2. A brief overview of the Cadbury's History.


The history of Cadbury has reached almost more than 200 years. In other hand,
the main sector of Cadbury the confectionary was introduced in 1824, when John
Cadbury opened a grocery shop by selling cocoa and chocolate drinks. The first factory
was opened in 1831 near the Crooked lane by producing the tea, coffee and chocolate
drinks. Later, the John Cadbury started partnership with Benjamin- his brother by forming
new company "Cadbury Brothers of Birmingham". In 1905, the brothers introduced the
most well-known product until our days the Dairy Milk bar. The new chocolate bar was
fast recognized by customers due to higher proportion of milk comparing with others
bars. In 1969 the company established new company Cadbury Schweppes due to drinks
of company Schweppes. In 2010, the Cadbury Company was sold to Kraft foods and the
deal reached approximately $19billion (http://www.cadbury.co.uk/the-story#1800-1850 ).
.

1.3. Product Range


Cadbury is presented worldwide and has a high brand image with a large product
range. In the worldwide scale the company has the product portfolio which counts more
than 57 brands under the confectionary sector. The product portfolio includes: 11 types
of desserts, 7 types of beverages, 3 types of biscuits, 4 types of cooking and more than
20 chocolate brands. Below is presented the most famous and best-sellers products of
the Cadbury Company with small description of each product.

Cadbury Boost

Cadbury Boost is a chocolate bar manufactured by Cadbury subsidiary in Ireland


and consists of milk chocolate with caramel and biscuit.

INTEGRATED MARKETING COMMUNICATION PLAN

Cadbury Brunch Bar


Cadbury Brunch bar is a bar of cereals tied with honey and covered with milk

chocolate. The Cadbury provide to the market also different flavors such as: Hazelnut,
Apricot, Fruit Nut, chocolate chip and toasted coconut.

Cadbury Caramilk
The Cadbury Caramilk bar is made by Cadbury subsidiary company in Canada and

it is a bar with caramel inside which gives the chocolate extraordinary taste. The Cadbury
provides a large variety of Cadbury Caramilk with some bars made from dark chocolate
or with taste of cappuccino.

Crispy Crunch
Cadbury Crispy Crunch is a bar with crispy peanuts flake inside. The Crispy

Crunch was created in order to take competitive advantage from the Butterfinger bar of
Nestle and Fifth Avenue bar of Hershey.

Cadbury Dairy Milk


Cadbury Dairy Milk is the most famous and popular product by Cadbury with

worldwide recognition. The chocolate bar started its history from 1905 and until our days
is estimated in Britain as the most popular chocolate and at least 65% of British buy the
product per year. The secret of Cadbury Dairy Milk is containing in the each bar a glass of
milk by creating the chocolate bar creamier.

INTEGRATED MARKETING COMMUNICATION PLAN

2. Current Market Situation and


Competition Analysis 2.1. SWOT
The chocolate industry is one of the most popular in the food sector. In the
confectionary established a lot of companies, but the biggest worldwide market share
has four companies which are: Cadbury, nestle, Mars and Hershey. The U.S. chocolate
market is one of the biggest with chocolate sales reaching the amount of $141, 2 billion
and the sales forecast show that chocolate market will be greater than before by
reaching more than $160 billion (Mintel, 2008). The major Cadbury's key strategy is the
occupation the shelves in stores by offering a large range of products from different
segments. The U.S. chocolate market show the last five years steady growth of 5%,
which could be seen as an advantage for a company to increase market share.

2.1. Competition Analysis.


Behind it was mentioned about the large competition in the confectionary market
and the major players in the market. The major and the biggest producers of chocolate in
a worldwide scale is Mars Corporation. The Mars Corporation doing business in different
areas such as: snack food, pet care, meal food, drinks and information technology. Nestle
like the Marc Corporation also expanded their business in a different business areas and
defined as the biggest food and beverage companies in the world. The main strategies of
Nestle delivered to cover consumer and shareholders needs and providing of high value
products. Hershey is not so popular in a worldwide scale, but in the domestic market in
North America has leading positions in chocolate market. Below is presented the graph
and market share in global chocolate market.

The worldwide chocolate market is mostly represented by six companies, which in 2007
had been controlled 57% of the market (see graphic below).

INTEGRATED MARKETING COMMUNICATION PLAN

2.2. SWOT Analysis


Strengths:

Cadbury is one of the largest confectionary companies with revenues more than

$7 billion.
Strong brand image built during the 200 years history with worldwide recognition.
The company follows the mission and objectives of ethical values and

environment-friendly organization.
Large variety of products.
Steady growth of U.S. chocolate market.

Weaknesses:

Cadbury has a low reputation in development of new products and especially in

chocolate segment.
Low expansion to the new markets.
In 2006 Cadbury recalled more than 1 million Cadbury Dairy Milk bars due to
health fears.

Opportunities:

The company after the deal with Kraft Foods has the opportunity to expand their

operations to the new markets and segments.


Easy negotiation process with other companies for franchising and co-branding.

Threats:

INTEGRATED MARKETING COMMUNICATION PLAN

The economic crisis in Europe stopped the growth of chocolate market and

defined the low level of consumption.


Large competition in the confectionary market.
Periodically Cadbury face in front of them barriers in launching new products due
to health organizations regulations.

2.3. Target Market and Audience


The main target task for the Cadbury is to collect the necessary information about
important trends to the company's key target market. The main target goal was the
identification of the target audience in order to create brand message relevant to a
targeted segment. It is not confidential that chocolates are favorable product for all the
ages from kids to adults. The most of Cadbury customers choose Cadbury products for its
flavor, taste and quality. The demographic segmentation of the U.S. market is
implemented for both genders and the age range from 5-60 years old. The target
segment for the dairy Milk according to status and income is upper and middle class, but
Cadbury want to change the pricing politics in order to make the product more
permanent in the shopping basket of each family.

3. Objectives
The changes in the packaging design led the Cadbury to inform the customers
because this product can be treated as a new product. In a corporate level the company
has established a variety of objectives which are delivered to shareholder high returns
through the growth and efficiency of the organization (Cadbury, 2009). The main
objectives of the communication mostly bases on awareness and the sales growth due to
succeed communication campaign. Also, communication objectives are driven to
influence the customer's involvement and attraction to the campaign.

4. Marketing Communications
Strategy / Positioning Strategy
Most IMC plans use a mix of marketing communication functions and marketers
need to identify which marketing communication tools efficiently and effectively will help
to achieve the objectives and to determine which media mix is suitable with chosen

INTEGRATED MARKETING COMMUNICATION PLAN


media tool. In addition, it is important to select right media mix in order to deliver
successfully the brand and campaign message. For the communication plan and
campaign Cadbury for the Dairy Milk bar implemented "360 degree support" campaign
by using all well known marketing communication mix. The IMC campaign involved
following communication mix elements such as: advertising, sales promotion, direct
marketing, public relation and personal selling in order to deliver successfully to the
customers the message about brand and product. Also, the last decade the Internet
sources and especially social media become most useful vehicle for promotion and
advertisement. For that reason, Cadbury has an communication campaign through
Facebook, Youtube Cadbury channel and official website of Cadbury.
Today's most successful companies understand that customers in nowadays are
more educated and informed about values. Also, consumer in our days demands in a
different way comparing with decade ago and their expectations mostly base on "More
for less". The new communication campaign created to make in customers' mind
associations with quality in a appropriate price. (Below is presented the graph about the
Cadbury positioning in terms of price and quality).

5. Tactics and Action Program


Outdoor
A small number of outdoor printed formats for phone boxes, and Adshels were
developed, and were applied across the U.K. achieving a broad reach of consumers.
Online

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INTEGRATED MARKETING COMMUNICATION PLAN


This campaign was reactive to online groups such as that of social networking facility
Facebook, with a scale of over 14, 000 members, and countless YouTube videos
campaigning for the products return. For the campaign itself, a microsite was developed
within the cadbury.co.uk domain for Wispa; this differed to the dedicated URL
implemented for other brand in the portfolio such as Crunchie
getthatfridayfeeling.co.uk for example.
Instore
Cadbury had negotiated an increase in purple shelf-space to accommodate the product
in supermarkets and launched a campaign to smaller retailers (See Appendix 1) such as
corner shops offering them the product on a by-request basis for this trial run re-launch
of the product.
Television Sponsorships
Though the sponsorship was due to end in late 2007, Cadburys did not exercise the
sponsorship screen-spot for this re-launch in-line with the wider strategy to close the
sponsorship deal with ITV (BBC News, 2006).

6. Message
If in the Heaven after the End of the Earth there are no chocolate, I'm
not going.
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INTEGRATED MARKETING COMMUNICATION PLAN


It is very important in communication message to create emotional bondage in
customers' mind regarded to the Cadbury Dairy Milk bar. Also, the message need to
make the sense of necessity and the new message for the campaign deliver it.

8. Media Evaluation and Selection


The success of the implementation will be measured on traditional metrics, in an
environment where accountability is increasingly of importance (guided by Jaworski,
1988)Financial assessments of productivity monitoring actual financial results, and
assessing to which the results are cohesive with the objectives of this campaign.
Outcome focus on the productivity of the campaign for the brand, and its various
stakeholders Industry metrics, measuring each of the mediums used in the various
formats, to assess true effectiveness. Feedback on the campaign will be obtained with
various consumer-facing data-collection interfaces, including that of the website. To
mesaure the effectiveness of our integrated communications strategies in pre and post
campaign, website traffic analysis will be conducted. This analysis will determine the
overall variance in traffic flow as well as differences between promoted recipes and nonpromoted recipes that were targeted through the executions telecommunications
contact with Bauer media consumers, to assess recall and interaction with campaign
elements.
The Media:

A multi-media campaign was launched on TV, Internet,Radio and Outdoor

The key was how do own the moment of " pappu passinghis exams" in the media space

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INTEGRATED MARKETING COMMUNICATION PLAN


A n i n n o v a t i v e t i e - u p w i t h Re l i a n c e w e b w o r l d
w a s executed, wherein students across 66 examination boardsacross the company
could access their results on Rworld

9. Media Planning

10. Budget
Annual ad spending on the Cadbury brands is $120 million, per
Kantar Media.
Variations of this approach exist. Instead of asking the departments what they think they
need to achieve their goals, companys management may set a percentage of the sales
price as a
fixed parameter. Another variation is that instead of looking at expected sales, the total
budget
is determined as a percentage of last years sales. Finally, the affordable method works
much like
illustrated in Table 5-4, with the important difference that the MC budget is not included
in the
calculations beforehand, but rather follows from subtracting all estimated costs from the
expected revenues: what remains can be spent on MC.
http://www.adweek.com/news/advertising-branding/cadbury-shifts-media-107360

Conclusions

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INTEGRATED MARKETING COMMUNICATION PLAN

Reference List
Schultz, D.E. (1999) Integrated marketing communications and how it relates to
traditional media advertising. In The Advertising Business: Operations, Creativity,
Media Planning, Integrated Communications, J.P. Jones (ed). London: Sage
Publications, pp. 325338.

Keller, Kevin Lane (1996), "Brand Equity and Integrated Communication," in


Integrated Marketing Gommunications, Moore Jeri and Thorson Ester Eds.
Mahwah, NJ: Lawrence Erlbaum Associates, pp. 103-132.

Dawar, Niraj (2004), "What Are Brands Good For," MIT Sloan
Management Review. 46 (1), 31-37

Cadbury Global. 2009. Corporate Brochure Spring 2009. Bourneville: Cadbury


Global [Accessed 16 March] Accessible from:
http://www.cadbury.com/SiteCollectionDocuments/CA_Corp_Brochure_AW_Double
.pdf

Jobber, D. 2007. Principles and Practice of Marketing. 5th Edition. Berkshire:


McGraw-Hill Education

MINTEL MARKETING INTELLIGENCE. 2008. Confectionary Market [March] 2008:


Mintel Marketing Report. London: Mintel International Group. [Accessed 12
March] Available from http://academic.mintel.com

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Steve Mcclellan, (11 may 2011) www.adweek.com,
http://www.adweek.com/news/advertising-branding/cadbury-shifts-media-107360, 17
december 2012

Appendices

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