Segmentation, Targeting and Positioning (STP)
Segmentation:The market segmentation is the procedure of dividing the market into different groups of consumers, which can be served effectively and efficiently by the Cadbury in Turkey. Cadbury should take decision against the competitors in the market of Turkey and if the company does not possess sufficient resources to serve the segments at its best as compared to the competitors of the market in Turkey. Moreover, the Cadbury should identify the segments and take most appropriate decisions for targeting the segments (Havaldar 2010). In other words, it can be said that the market segmentation is the phenomenon in the marketing area to group the market into smaller sub-groups. Such small sub-groups are renowned as the niche markets and the purpose of the segmentation is to identify and target the main consumer groups in order to attain the maximum return from the marketing budget. Moreover, Cadbury has achieved the market segmentation by using the different types of variables for segmenting the market of Turkey such as demographics, geographic, psychographics, and firmographics (Yudelson 2006). In demographic segmentation, Cadbury focuses on the social and economic features of the consumers in Turkey such as age, income, race, and so on. This strategy of segmentation has proved to be successful for the Cadbury in marketing the product launch in Turkey. In geographic segmentation, Cadbury focuses on the location of people and psychographics segmentation refers to the segmentation by lifestyles of the consumers in Turkey. The Cadbury focuses easily on the risks and innovators in the market of Turkey. Similarly, firmographics is coined for the first time basically for business-to-business marketing. Cadbury focuses on the characteristics using this segmentation strategy includes size of the organization and type of industry (Yudelson 2006). Hire expert assignment writers.
Targeting:Followed by the procedure of segmenting the market, Cadbury faces the challenge to take decisions for selecting the segments to be approached in Turkey. The three most common factors considered by the Cadbury include the size and growth of each segment created, structural attractiveness, and the objectives and resources of Cadbury (Yudelson 2006). It is considerably obvious that the prospective consumers of Cadbury products are of any age and the product lines of Cadbury are numerous that are suitable for almost every member of the family. Therefore, the Cadbury targets the market in such a way to strengthen the relationship of Cadbury as a brand in the life of its valued consumers (Kurtz, MacKenzie& Snow 2009). Beside the fact that the volume and profits influence the decisions of targeting the segments, Cadbury evaluated the accessibility of the segments on the basis of the resources of company (Viardot 2004). Moreover, there are various strategies considered for implementation by Cadbury to target the segments of market in Turkey namely concentrated marketing, differentiated marketing, and undifferentiated marketing. However, Cadbury selected the differentiated marketing strategy for targeting the segments in Turkey. Cadbury decides to target various market segments under this strategy, which possess different needs, market responses, and product utilization (Kurtz, MacKenzie& Snow 2009). It can also be said that the Cadbury as organization decides to serve certain segments while avoiding other within the Turkish market. Therefore, the company establishes distinct marketing strategies for every selected segment and it ultimately increases the overall costs in certain areas such as product development, modification, promotions, production, and administration. The objectives of such strategies are to lead the company towards higher sales and higher costs (Kurtz, MacKenzie& Snow 2009).
Positioning:The positioning is defined as the distinctive place occupied by the product in the minds and perceptions of the target consumers (Beamish& Ashford, 2007). Cadbury realizes that the positioning is largely concerned with the differentiation of product and service from the competition prevailing in the market of Turkey. Therefore, the company stresses the perceptions of consumers in Turkey regarding the products of Cadbury indirectly conforming the positioning in the perceptions of the consumers in order to determine the company’s success (Doole& Lowe 2008). The strategy for positioning implemented by Cadbury clearly differentiates the company and the products from that of the consumers. It is obvious that the positioning possesses the huge strategic value and it is important for the success of business of Cadbury and marketing the product in the Turkey (Kurtz, MacKenzie& Snow 2009). Moreover, the positioning strategy implemented by the Cadbury in Turkey depends on various attributes such as product benefits, product characteristics, image of the company, class of product, category of consumer, positioning against competition, occasion of consumption, cultural symbol, association of price and quality, positioning by packaging of product, and positioning by endorsement (Bradley, 2008). Furthermore, the Cadbury uses the essential and beneficial tools for positioning and differentiating the product in the market of Turkey using the variables including form of the product, features of the product, performance of the product, quality of the product, and conformance quality of the product. After defining the purpose for positioning, the Cadbury conveyed all the components of the marketing mix in terms of design and services of the product, distribution channels, campaigns for communication, and the price levels (Viardot 2004).
According to Kotler and Armstrong (2008), marekting mix is a tool that helps in designing the marketing plan. The marketing mix model is prepared using 4 P’s: product, price, place and promotion (Kotler& Armstrong, 2008).
To prepare the marketing plan for the Cadbury Dairy Milk, 4 P’s model will be used.
Product:Cadbury Dairy Milk offers variety of products under the brand and currently there are four different categories of chocolate available in Turkey while it also offers gums, confectionary, milk food drinks and candy. Besides product variants, Cadbury Dairy Milk utilizes product innovation in its all products. Mostly chocolate brands are sticky while products of Cadbury Dairy Milk have been made using such innovation that it does not stick to teeth and tongues and are melted in the mouth (Beamish& Ashford, 2007). Moreover, to ensure Turkish consumers who are weight conscious enjoy that product, the weight of the chocolate has been made lighter other brands in the market while the size of the bar has been increased to match the size of the Nestle chocolate bars. Packaging is of great significance in the chocolate brands to appeal the viewers and audience of Turkey, therefore, greater innovation has been used in the development of the Cadbury Dairy Milk products (Gillespie et al., 2010). The packaging has been changed to add the sealed plastic wrapper inside the foil while new purity sealed packaging for the flagship products aims to provide better and fresh chocolates. In addition, to improve the storage of the products in Turkey, Cadbury has invested around 2.5 billion for machinery with the core purpose to improve the packaging.
Price: Cadbury Dairy Milk brand has been introduced in the market with the lowest pricing strategy in the chocolate market of Turkey and lowest price chocolate products of the Cadbury Dairy Milk accounts for the largest market share in Turkey. Historically, the company has great experience in selling the lower priced products in Turkey but in past it has used the strategy for only one brand and introducing different brands with the same lower pricing strategy will help to increase the total sale of the products (Perreault, 2006). Moreover, the industry analysts state that having lower price portfolio can be best strategy because in Turkey, potential consumers of the products have average purchasing power and to control the purchasing of the product, it is significantly important to keep the price of the product comparatively low (Bradley, 2008).
Place:Cadbury products are produced at the factory of the Cadbury in Bourneville in Birmingham and after the processing; products are transported to chocolate retailers and shops dealing with the chocolate brands. The most significant place for distribution and selling of the products is superstores and petrol stations while business of the products is done on daily basis (Bradley, 2008). Moreover, Cadbury to become innovative should find other places such as children parks and other picnic points to sell its products. Besides supermarket and superstore, Cadbury should much focus on the small shops as its place to sell the products in the Turkey. Moreover, chocolate products of the Cadbury must be distributed directly to the consumers rather than selling it through retailers because this strategy will serve as promotional activity for the marketing campaign (Perreault, 2006).
Promotion: Promotion technique can play significant role in the success of the Cadbury marketing campaign. In order to promote the Cadbury product in Turkey, marketing strategy should focus on the innovative plans, because Cadbury already has a brand image in the global market and in Turkey. To create dominancy in the market of Turkey, online and offline marketing strategy should be adopted because using both type of strategy will back up the overall marketing plan for the product (Beamish& Ashford, 2007).
Marketing Mix – Global and E-Business
Product:In physical reality, the consumers can reach the store, observe the required product, assess it, and touch it. However, in e-world, such type of tangible characteristics disappears and within the e-commerce, sales of Cadbury products are observed increasing at highest rates. Cadbury can implement the strategy in such a way that the purchasing process is customized for the returning buyers to make the purchases easier (Havaldar, 2010). Therefore, the company can offer immediately the supplementary products along with the major purchases of the products. Moreover, using the global and e-business, Cadbury can also offer the services to provide customized products and orders to the consumers (Gillespie, Jeannet& Hennessey 2010).
Price:The strategy of pricing is always critical process for the organization to perform while considering various aspects. In traditional business world, the pricing of the products is obtained by finding the costs, discovering the consumers’ willingness to pay, and considering the competing prices to establish the price level. However, this difficult procedure is made flexible with the help of implementing the e-business by Cadbury because it can make the prices at highest competitive levels. Moreover, various costs disappear such as staff costs and store costs, which provide the Cadbury with flexibility to provide the consumers accessibility to purchase the best deal available by the company (Gillespie, Jeannet& Hennessey 2010).
Furthermore, the pricing strategy using e-business by Cadbury in Turkey can reward the loyal consumers. In order to reward the loyal consumers, the Cadbury can use technology to maintain the tracking record to target the loyalty incentives towards them. Moreover, the payment procedure also becomes more convenient using pay pals and online credit cards (Gillespie, Jeannet& Hennessey 2010).
Place:The hugest evolution in the marketing mix is the online purchasing within the e-business world. The consumers of Cadbury can purchase directly from the company by eradicating the retailers completely. Only challenge for the Cadbury being the online retailer in the market of Turkey is to ensure that the delivery of the product to the consumer is provided within the reasonable frame. Therefore, the location is the important factor in the placing strategy of Cadbury and the online location can be referred as the links placed on the other websites in the form of banners and advertisements. Moreover, Cadbury can also use the online social networking for implementing the placing strategy (Gillespie, Jeannet& Hennessey 2010).
Promotion:The promotions of the products in the e-business world are mainly concerned with numerous issues. Therefore, it is necessary for the Cadbury to have a recognizable domain name for heading towards the promotional phase in e-business. Cadbury can place the banners on other web pages of Turkish domains to promote the product in Turkey. Furthermore, Web Public Relations is another popular approach to promote the product online and the WPR articles can be sent to the consumers in Turkey for reviewing and reading. The stories that are news worthy mainly based on the product can also be placed on the website of the Cadbury. Direct email is another common approach for promoting the product in Turkey (Gillespie, Jeannet& Hennessey 2010).
In order to determine the market budget for Cadbury Dairy Milk, first there is need to identify the market implementation plan for the company. As identified in the market implementation plan, the promotional and advertisement strategy proposed for the Cadbury products are both offline and online, it includes electronic media such as television, radio and internet while offline media has been identified as paper media as well as road and mall advertisement.
This market budgeting plan also illustrates the sources of fund used for the marketing campaign and promotional as well as advertisement activity, for which budget has to be allocated.
Source of Fund:The source of funding for the implementation of the marketing will be gained from the sales of the products.
Promotional and Advertisement Activity:Since offline and online medium has been chosen for the promotional and advertisement activity for the products, online promotional and advertisement activity includes television, radio, internet commercial, and advertisement. Offline medium for the promotion and advertisement includes mall advertisement through banners and road advertisement through billboards.
Cost Incurred on each Activity:Total cost on each activity can be estimated based on the resources used for the promotional as well as advertisement activity. The resources required for these activity are given in the below table.
Estimated Cost Per Unit
- Wages and salaries
- Commission and Bonuses
$200 per worker in a year
$1000 in a year
- Primary Research
- Secondary Research
2 Research firms
3 Web researchers
2 Independent researchers
$1000 per firm
$200 per researcher
$200 per researcher
$2000 for research firms in a year
$600 for web researchers in a year
$400 for independent researchers in a year
- Branding through promotional brochure
- Advertising through television and radio
- Web sites
- Direct marketing in malls and on roads
2 times advertisement in a day
Web site marketing through banners on sites
5 Billboards and banners
$2500 for each time advertisement is broadcasted
Web site marketing through 3 websites will cost $500 for a month
Per billboard and banner costs $500
$5000 per day for radio and television advertisement
$1500 for 3 web sites throughout the year
$2500 for banners and billboards