In this assignment I will be describing how Cadbury’s uses market research to contribute to its marketing development plans. I will be considering the customer behaviour, competitor behaviour and the market environment.
Cadbury’s uses market research to get the public’s opinion on Cadbury’s products or upcoming products. Market research is the action or activity of gathering information about consumers’ needs and preferences. Cadbury might use primary research like surveys which might include questionnaires or face-to-face interviews. Another type of market research Cadbury’s might use is secondary research which is any data that is collected by someone other than the business themselves. PESTAL analysis stands for political, economic, social, technological, legal and environmental. PESTAL analysis is a strategic framework that is in effect in an organisation which helps on understanding the external influences on a business.
PESTAL analysis for Cadbury’s
Political: a change in government will cause a change in policies
If inflation goes up or down it will affect cost of materials
Economical: if taxation goes up it would increase production cost
If unemployment was high less people will be able to afford it
Social: if the amount of people in the world decreased there will be less people to buy chocolate.
If people’s lifestyles change then they may not want to eat chocolate
Technological: research and development keep developing new products to keep up with competition and customers
Legal: there may be more legalisation in place to make sure the workplace is better
Environmental: Cadbury’s is built on a river which at one time they would have been able to get rid of their waste but it is now too expensive to do that
SWOT analysis stands for strengths, weaknesses, opportunities and threats. SWOT analysis is a study undertaken by an organization to identify its internal strengths and weaknesses, as well as its external opportunities and threats.
Strengths: Are the characteristics of an organisation or project that give it an advantage against other organisations or projects. One of Cadbury’s strengths is that they have a highly recognised and respected brand that has been around for many years.
Weaknesses: Are the characteristics of an organisation or project that give it a disadvantage against other organisations or projects. One of Cadbury’s weaknesses is that they have a lack of penetration in the rural market this causes people to dismiss Cadbury’s products as high end which will the consumer not to purchase it.
Opportunities: Are elements of an organisation or project that could exploit to its advantage.
Opportunities for Cadbury’s are that the chocolate market has increased in recent years and there is a lot of potential for growth for the company.
Threats: Are elements in the environment that could cause the origination or project problems. The threats for Cadbury’s might be elements in the environment that could affect the businesses.
Consumer behaviour is the study and the processes of individuals, groups, or organization to select, secure, and dispose of products, services, experiences, or ideas to satisfy needs and the impacts that these processes have on the consumer and society. Competitive behaviour refers to a self-interest or an advantage that an individual, group or organization or industries have over their competitors in-order to increase its strength, wealth or personal gain. The market environment is a marketing term and refers to factors and forces that affect a firm’s ability to build and maintain successful relationships with customers.
SMART stands for specific, measurable, attainable, realistic and timely. An example of a SMART objective is ‘to increase profits by 20% within the next 12 months’. With SMART objectives it allows businesses performance to be assessed.
SWOT analysis, PESTLE analysis and