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Global business environment is the sum total of internal and external forces of business present across the globe. Business organisations in modern competitive world strive to achieve a high stake in market by bringing products that are diversified from rivals. The present report is based upon Cadbury which is bringing modification in chocolates to introduce the ones without any sugar content. This company is launching these chocolates in Dubai, UAE. The goal of this report is to conduct an analysis of company, its marketing environment and competition. Also, it includes market entry strategies that can be adopted by company. Besides this, it includes SMART recommendations for company.
Cadbury is a famous brand that is operating across different parts of the world. This company is well renowned among all the group groups ranging from children to millennials to adults. Over years, Cadbury is known for having a wide variety of products and product ranges to serve the needs and requirements of customers over the world. The core strategy of company since its initial years have been making use of extensive advertising strategies to gain a strategic edge over its rival companies within confectionery industry. By feasibly launching a new product at an interval of 6 months, Cadbury has succeeded in maintaining a positive brand image among consumers in marketplace. Also, with a large range of goods in marketplace, company aims at targetting each section of age group.
Management of Cadbury has strategically analysed the needs of people across globe and thus, have been using economic pricing model. Under this, enterprise have been regularly coming up with chocolates in various sizes and packets. Also, organisation is continuously bringing up festive packs and other lucrative kinds of packages and boxes. This strategy has mainly been utilised by company across different parts of the world to persuade people belonging to various income levels to make a purchase. In continuation with its consistent practise of introducing new range of chocolates having varied flavours and tastes, Cadbury is now planning to come up with sugar free chocolates in Dubai, UAE.
Marketing environment analysis
The marketing environment analysis of Cadbury with special reference to new sugar free chocolates conducted with the help of PESTLE Analysis is below:-
Political Factors: Over years, government of UAE have been showing growing concern in relation to increasing number of diabetes and obese patients in the country (Dubai health care symposium aims to tackle obesity epidemic in UAE, 2017). Cadbury has thus decided to introduce sugar free chocolates by remaining aligned with the health related issues being continuously encountered by citizens.
Economical Factors: The economy of UAE is strong yet a large proportion of population is struck with diabetes and obesity. This has facilitated Cadbury to effectively launch new sugar free chocolates within Dubai to improve medical conditions of citizens of Dubai.
Social Factors:The population of Dubai has largely been concerned about their health due to rising number of diabetes and obese struck people within the place. Thus, by analysing the social needs of people in Dubai, Cadbury is strategically coming up with chocolates with no sugar content in them.
Technological Factors:By deploying appropriate technology within its processes, Cadbury has been successful in filling the market gap within Dubai and introducing sugar free chocolates to meet the health conscious demands of residents.
Legal Factors: There is a regulation within Dubai which asks chocolate manufacturers to reduce the content of sugar in products (Will a sugar tax help reduce obesity?, 2019). Thus, Cadbury has grabbed this opportunity by providing chocolates as per the laws and regulations of Dubai.
Environmental Factors: The wrappers of chocolates are generally assumed to be non-recyclable which has been kept in consideration by Cadbury. Thus, enterprise has selected Dubai to introduce sugar free chocolates where a mobile application, namely, Reyoutilizer has been launched to make recycling of wrappers easier for Dubai citizens (Reyoutilizer App Simplifies Dubai Recycling, 2016).
With passage of time, confectionery industry, specifically referring to the chocolate business, has been found to be one of the biggest sectors in UAE. This sector of business has been well versed with rapid growth and development in terms of revenue and sales figures in he period 2012 to 2016. The underlying reason behind this growth has been the popularity and extensive level of marketing done by the business organisations within this industry. This owes to various types of packaging and distribution techniques used by entities.
One of the most successful companies within confectionery industry is Cadbury which has been coming up with fun packs, festive packs, ready to eat packets, chocolate boxes and hampers. This is largely being done by enterprise to gain attention of people belonging to various age groups, income levels, professions etc. The strategy of providing chocolates in variable sizes and packs has been successful for Cadbury over years. Thus, company has decided to launch sugar free chocolates in Dubai also in various sizes so that it can be consumed by middle income group people too. Over years, Dubai has become a strategic market where people intake countlines together with chocolates.
Thus, the marketing environment of Dubai is favourable for Cadbury to gain recognition for its new sugar free chocolates.
Justification of the market choice and target segment
Cadbury is a British confectionery company presently owned by Mondelez International. Company is planning to launch sugar free chocolates in Dubai, UAE. This location has been selected by company keeping in consideration the element of health consciousness existing within citizens of Dubai. This enterprise has an already established name and position in Dubai, UAE. Thus, it will be easier for company to gain recognition in marketplace in relation to newly launched sugar free chocolates. The economy of Dubai is strong and an excellent location for potential investors.
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to tap advantage of the already established brand name and image of enterprise in marketplace. Dubai is an excellent place for introducing a new product, service or a product line as it has now become a major business centre with opportunistic and dynamic market. Dubai is located at a place which is taken advantage of by many companies to gain strategic edge in industry due to its luxurious lifestyle and high quality living standards.
Background to consumer behaviour for your organisation’s market
Cadbury was introduced in markets of United Kingdom back in the year 1905. Since then, company has introduced a number of products under various brand names. It is a British confectionery corporation which is at present owned by Mondelez International. Company is launching a new product named Cadbury Plus in Dubai, UAE to tap advantage of the already established brand name and image of enterprise in marketplace. Dubai is an excellent place for introducing a new product, service or a product line as it has now become a major business centre with opportunistic and dynamic market (Constantinides, 2014). Dubai is located at a place which is taken advantage of by many companies to gain strategic edge in industry due to its luxurious lifestyle and high quality living standards.
Over years, confectionery industry, specifically the chocolate segment, has been one of the largest sectors in UAE and experienced rapid growth and development between the period 2012 to 2016. This growth basically owed to the popularity and large scale marketing of new packaging, labelling and distribution formats like family packs, fun-size and ready to consume small packs. One of the companies to primarily come up with this concept of variable size and packs for chocolates and related products was Cadbury. Company has always received positive feedback from customers due to their initiative of coming up with new product range and unique packaging styles in UAE market, in particular,completed file Dubai.
Such product lines and combo packs have always gained recognition and widespread acceptability from public due to the aspect of economic pricing being attached to it. Dubai has always been a lucrative market for Cadbury owing to the increasing intake of countlines along with chocolates packed in boxes and packets.
According to a report published by TechSci recently, the UAE chocolate confectionery market is forecasted to have a CAGR of approximately 6.09% in accordance with revenue figures during 2014-19 (UAE Chocolate Market Forecast and Opportunities, 2019, 2018). Chocolate industry across Dubai is coming up as one of the most growing and rapidly spreading marketing possessing a lot of potential to continue same performance in future context. The availability of chocolates is largely exploding due to the increasing number of retail and distribution stores along with the help of well established intermediaries in Dubai. Also, the product that is being introduced by Cadbury named Cadbury Plus has no content of sugar. Due to busy time schedules and involvement of people in consumption of high fat and sugar content food, Dubai is largely witnessing a substantial growth in the number of diabetic and obese affected individuals.
Thus, people in the city are becoming highly health conscious and concerned about the content of fats and sugar in food articles, sweets or other edible products. This creates various opportunities for company to successfully introduce the product in marketplace while tapping advantage of consumer psyche of people living there.
Impact of psychological and environmental variables on customers
Consumer behaviour is affected by a number of variables of which psychological and environmental factors hold the most significance (Gao and Bai, 2014). These have a substantial impact upon the psyche of customers while making purchase, consumption or disposal of any product or service. Cadbury in launching Cadbury Plus in Dubai market while giving a huge consideration to psychological and environmental variables explained below:-
Psychological: The chocolates that are being introduced by company are sugar free and have been made with the use of low fat and organic ingredients. This has been largely done keeping in mind the number of persons who are affected by diabetes and obese in Dubai every year. Company has strategically planned to launch this product so as to tap the advantage of large number of consumers turning towards healthy products with a view to maintain good health. This reflects that enterprise has focusses upon psychological variables like feelings, emotions, thoughts and behaviour of consumers in relation to the latest trends and situations observed in the city.
Environmental: Cadbury Plus being launched by company in Dubai marketplace is being done in a way that it poses no harm or threat to environment or natural resources. The wrappers of chocolates that are generally presumed and observed to be non-recyclable which has a detrimental impact upon environmental conditions has been considered by Cadbury. Thus, enterprise has selected Dubai as its target market to introduce the product where a new mobile application named Reyoutilizer has been launched with an aim to make recycling process easier for residents of Dubai (Reyoutilizer App Simplifies Dubai Recycling, 2016). It can be downloaded by iPhone and Android users for free.
This application allows small enterprises and households to book for the collection of recyclable items like wrappers of Cadbury chocolates in which company has specially made use of such ingredients that can support recycling process. Thus, company has taken advantage of environmental variables so that they can gain widespread acceptability in Dubai marketplace.
Role of advertising and promotion in marketing
Advertising and promotions are the tools that are strategically used by company to effectively introduce the new products and services in marketplace. Both of these are effective marketing techniques that assists an enterprise in successfully introducing a new product or service in front of customers such that the new commodity can receive a positive response from people (Godey and et. al., 2016). In the present scenario, Cadbury is launching sugar free chocolates in Dubai by aid of various advertising and promotion techniques. Enterprise has carefully planned to announce about the product by way of making people understand its utility and its manufacturing in consideration with health conscious psyche of people residing there. This assists in creation of substantially marketing about the product so as to build demand for it and enhancing sales and revenue generation for Cadbury Plus in Dubai marketplace.
Communication processes and regulation
In advertising and promotion, communication is the process of introducing the new product in front of consumers by way of building effective communication with them (Holliman and Rowley, 2014). This can be done by using various types of communication channels that can assist Cadbury in successfully executing the launch of Cadbury Plus in Dubai so that company's sales and revenue figures can get a boost. Various channels and mediums used by Cadbury to effectively introduce the new sugar free chocolates are digital marketing tools and conventional techniques like advertising by way of flyers, banners, hoardings. Some other ways that can assist in increasing awareness about new product of Cadbury is by publishing about it upon company's website and various social media pages maintained by management team like Instagram, Facebook etc. This ensures that information about these chocolates can reach people timely which can result in increment of entity's revenue figures.
Role of advertising and branding in promotional strategies
Branding and advertising are the two essential aspects of any company's marketing and promotional strategy (McDonagh and Prothero, 2014). By way of these, enterprises focus upon creating a positive image and name about the product so that customers can be easily attracted towards Cadbury Plus. For this, media like television and radio is used by company so that large number of customers can gain knowledge about the new product being launched in Dubai and make a purchase for it.
Current trends in advertising and promotion, including impact of ICT and internet
The current trends that are prevalent in marketplace nowadays and is being utilised by a large number of companies is chat bots. This communication technology makes use of virtual reality and do live chatting with customers so as to gain knowledge of their views and opinions along with taking feedbacks from them on a regular basis (Kumar and et. al., 2016). Also, SMS and email marketing techniques can be used by company to effectively communicate about Cadbury Plus to people residing in Dubai.
Benefits of relationship marketing to organisations
Cadbury is also required to largely keep in consideration the benefits of relationship marketing which is an effective tool by which small, medium and large scale companies build healthy relationship with customers. By way of this technique, companies can take advantage of the existing knowledge of customers about the new product launched by organisation so as to enhance the sales and revenue figures of enterprise.
Marketing and integrated promotional plan for a product or service
Cadbury is a well renowned brand across the globe which has high recognition amongst all the age groups for the wide range of products and ranges that the company has always tried to deliver. Company's major strategy over years has been associated with introduction of a new product or product lines in a time span of 6 months. This has helped the enterprise in building a desirable image amongst the people residing in various parts of the world (Pike and Page, 2014). Continuing with its consistency of coming up with new chocolates or sweets, company is now planning to launch sugar free chocolates in Dubai by the name of Cadbury Plus.
For this, the marketing manager of entity has made a marketing and integrated promotional plan. This has been designed to make planning in relation with how to successfully launch the new product in Dubai markets such that maximum people can be made aware of use of low fat and organic content while manufacturing these chocolates. Thus, the various components of plan that is made by marketing department of Cadbury are as follows:-
Identified main target group: Before introducing sugar free chocolates in Dubai marketplace, company carried out research and study upon markets of various cities and consumer behaviour of people residing there. After an in-depth study, it was ascertained that a large number of people in Dubai are struck with diabetes and obesity problems (Solomon and et. al., 2014).
This makes such people highly conscious about the food and sweets they intake and the sugar and fats content in it. From this, the marketing manager of Cadbury decided to target people struck with diabetes and obesity at present along with such people who are largely concerned about their health and food they consume.
Goal and strategy: While launching Cadbury Plus in Dubai marketplace, the main goal of company behind this has been to deploy effective advertising and promotional strategies so that this product can be successfully introduced in new market. Besides this, the strategy has been to tap advantage of health consciousness of people to gain a large share in marketplace with a view to give a boost their already established image and position in Dubai.
Barriers, constraints that might affect plan implementation: The major barrier that need to be considered by marketing team of Cadbury is the threat of new entrants in Dubai chocolate confectionery industry. Further, another major constraint that can pose threat to successful implementation of the plan to introduce Cadbury Plus can be an existing company coming up with sugar free chocolates and selling it a price lower than the price ascertained by Cadbury for selling packs of Cadbury Plus.
Ways to overcome barriers: The possible way of overcoming these barriers and constraints can be introducing these chocolates at an economical price which is easily affordable by people and younger generations (Xiang and et. al., 2015).
Consideration of ethical and legal issues in marketing: The major concern of marketing manager should be in relation to compliance with all ethical and legal issues of marketing. Marketing manager needs to ensure that there are no false claims or misleading advertisements on part of enterprise. This is necessary to be kept in mind as any such misleading information delivered by company globally if picked upon by any customer and addressed on any public channels like social media can have severe legal impacts on Cadbury. If any such situation is encountered by legal bodies, it can even lead to imposition of huge compensation upon company.
Recommendations for pricing, distribution and communication policies: It is recommended that company should make use of chat bots to build communication with customers directly by aid of virtual reality technology. In relation to pricing strategies, it is suggested that company should launch Cadbury Plus in various sizes so that customers can buy according to their needs and requirements.
Ways to measure campaign effectiveness: In relation to use of social media and digital technology tools and techniques, the most useful ways to measure campaign effectiveness by gathering information about the number of persons who expressed interest in company's new products, tracking the insights of posts upon social media like Instagram, Facebook, gathering information about how many people offered to unsubscribe mails from company (Solomon and et. al., 2014).
Key requirements of such a plan: In relation to launch of Cadbury Plus in Dubai, the key requirements for successful implementation of this plan is adequate communication and marketing channels by way of which company can feasibly make people aware about the product. Social media and digital marketing tools and techniques also assist in making sure that customers possess proper knowledge about the special features of these chocolates so that they can be influenced to make a purchase.
Role of below the line (BTL) and above the line (ATL) techniques in marketing and communications plan and use of below the line techniques for selected products or service
For any organisation that aims to stay ahead of its competitors in marketplace, it is essential that the management of company duly focuses upon effectively marketing about the products and services. For this, it is imperative that companies makes use of various techniques that can assist in successfully introducing the new products or services in market with an aim that maximum people can be made aware about the commodity, its special features and utilities (Ström, Vendel and Bredican, 2014). In the present scenario, Cadbury is launching Cadbury Plus in Dubai which are sugar free chocolates made with use of low fats and organic ingredients.
To successfully execute the new product at a new marketplace, any company can consider to use any or both the two marketing techniques sustaining in markets. Such techniques are, namely, Below The Line (BTL) and Above The Line (ATL) which are briefly described below:-
Above the Line
Above the Line advertising also known as ATL marketing / advertising or promotion is a technique that comprises of various advertising and promotional activities which are non targeted (Schivinski and Dabrowski, 2016). This technique has a broad scope as the reach of customers by use of this technique is very wide. ATL marketing is generally utilised with an aim to effectively create a positive image of the brand and increase awareness about the new product. Here, the communication tools and techniques used are not directed towards a specific target group or market and instead focuses upon a large base of customers spread across different parts of globe.
This marketing tool gives less importance to conversion ratios. Some of ATL media and tools that are used widespread by companies are Television, Radio, magazines and newspapers.
Below the Line
Below the Line advertising also referred to as BTL marketing / advertising or promotion is a technique which comprises of such tools and media that are specific and targeted towards a specific consumer group or market (Shareef, Dwivedi and Rana, 2015). Further, these include direct advertisement activities which largely concentrates upon increasing the conversion ratio of people instead of building brand image amongst individuals.
Cadbury has also decided to make use of BTL techniques of marketing as they have ascertained customer groups that they want to specifically target while introducing the sugar free chocolates in Dubai. Also, the channels that company is planning to use to communicate and advertise about Cadbury Plus in Dubai markets are Outdoor Advertising (banners, bill boards, hoardings and posters), direct mail marketing (emails and text messages), brand activation (marketing activities in malls and other commercial complexes) and in-store marketing activities (activities within retail stores) (Ryan, 2016). By aid of these, company is striving to successfully launch the new product in Dubai.
From the above report, it has been concluded that marketing communication, marketing planning and analysis of consumer behaviour are essential for any company which is planning to introduce a new product or service in international markets. Also, it has been analysed that it is imperative for entities to analyse the latest trends and activities prevalent in the new marketplace so that the new product to be launched can meet the needs and demands of customers. Besides this, it has been evaluated that a marketing and integrated promotional plan is required to be made by the organisation to lay out the structural process and ways in which the commodity can be successfully introduced at marketplace.
Furthermore, it has been assessed that various types of communication as well as marketing strategies and techniques are adopted by company depending upon organisational Assignment and market needs.
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