effect of ib

7/28/2019 Effect of Ib

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INFORMATIONAL EFFECTS (media)

Information is the most important factors that we have to realize. Business do not goes

well without information. In Cadbury company, media and technology play a vital role for

marketing communication by which they try to inform and persuade customer or consumers

directly as well as indirectly about their products and brand with the help of media. In an indirect

marketing, Cadbury prefer Word of Mouth system. It is means an oral and written

communication between customer to customer. In a direct marketing, Cadbury prefer Personal

Selling system . In this way, Cadbury representative make face-to-face interaction with one or

more purchasers to make presentation and obtain orders.

Cadbury give first preference towards "Innovative and Technological Market system for

marketing advertisement which is direct marketing system to improve their marketing by the use

of Electronic Shopping, TV Shopping, telephone, fax, e-mail or internet to communicate directly

to the customer. The use of "Public Relations and Publicity" system in Cadbury is to promote

the particular products by the seminars, speeches, and banners decoration in popular shops or

supermarkets. Cadbury company promote their particular brand product with the help of

sponsors during special occasion or events like sports, entertainment which is TV shows, and

festivals. They also recommend promotion of their product by sales promotion like fair and

trade, and demonstration. So advertisement is main tools for Cadbury Company to promote

their brand image to all over the world.

Media is source by that company which can be reach the customer and customer can

get all information about selected company, so media provide strong relationship between

company and customer. Besides that, media play an effective role for developing Cadbury

market. Cadbury Company advertises their product promotion by cartoon picture and famous

celebrities like film actor or sports player which are these advertisements categorize between

children to adult respectively. In different segment, they are use emotional line based on major

themes during media advertisement. For examples;


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Chocolates for all, children to adult and theme is Cadbury as a perfect expression of love.

Chocolates for all events and theme is real test of life.

Chocolate for special occasion and themes is I will do anything for Cadbury dairy milk.

Chocolate for any time and theme (in Hindi) is kuch meetha ho jaye.

The main strategy behind these above themes is to replace sweets as a chocolate and create

brand image to get the strong position in the market by the description of media advertisement.

Cadbury industry has specified cities categories for a media advertisement like, Tier One and

Tier Two which is domestic cities, then Tier Three and Tier Four which is international cities.

So, media and technology both are primary need to the development of Cadbury

industry in future market because time to time continuously change in customer demand is

major problems and this problem only resolved by adopt changing technology in the future

market because the main motto of Cadbury industry is to achieve customer satisfaction.

Indeed, media tools is superior power tools with technology support by Cadbury market which

can get positive impact and more benefits in future marketing.


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IMPACT OF GLOBAL ECONOMY

Here is a grand example of how a long established business sees appear economy not

just opportunity for increase sales and profits, but also as a centre for production.

My observation of the impact of macro-economic policy is stimulated by increase incomes and

consumer demand, Cadbury is hoping to strengthen its dominant position in the Indian

chocolate market by encouraging coconut plantations to switch production and establish a much

bigger cocoa production capacity in India. The incentives to expand cocoa supply in India are

strengthened by the 30% tariff imposed on imports of cocoa into India from countries such as

Ghana and the Ivory Coast. The FT reports that Cadburys is hoping to source all of its cocoa

beans domestically by 2015 and coconut farmers may hold the key as cocoa seedlings grow

alongside coconut palms in southern India and therefore do not require fresh clearing of forests

for plantations.

The FT article claims that, Cadbury controls more than 70 per cent of the chocolate

market in India with a presence in 1.2m stores while Nestl controls about 25 per cent. It enjoys

a dominant position in a market where sales are increase by more than 20 per cent per year.

Reinforcing that market dominance is key for Cadburys, it has spent more on modify and renew

chocolate brands in the Indian market including cricket-related sponsorship, but having a

domestic supply chain will do more that pure marketing plays to keep their profits increase.

In addition, The Times reports that, Cadburys chocolate market by value slipped 1.7 per

cent to 29.8 per cent last month, the first time that it has fallen below 30 per cent all year. Then,

some customers have complained about a 75% rise in the price of a 230g bar of Dairy Milk in

the last 12 months. High world cocoa prices have explained some of the price rising but

Cadburys tactic of launching a new 100g bar priced at 1 had led some to claim that there are

deliberately trying to anchor their prices at a higher level to raise profit margins as a defense

against the takeover offering. The decline in market share suggests that chocoholics are more

price sensitive than Cadburys might have forecast.


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CULTURAL EFFECT

Cadbury considered too many factors, includes the culture. Cadburys product provides

great respect and takes care of consumers religion, for example, they enforced and justified

their products as Halal even though the Muslims stands at minority of only 1.5% in the

Australian society (Carabellese 2010). This show Cadbury is taking concerns about the most

important issues of Muslims. Cadbury can maintain on this way when Muslims all around the

world believe on their products.

Moreover, Cadbury takes serious concern on peoples health by making quality products

and consumers choice within their individual diet and lifestyle. Based on Cadburys list of

products, we can see various items that made by a lot of different ingredients such as mints,

sugar-free, nuts, fruits and so forth. Most of them focus on helping people in dieting.

Customers could having their health while enjoy eating chocolates and Cadburys continuously

sustain their sales.

Third, Cadbury also took on responsibility in childrens marketing initiative. They had

ceased advertising during commercial break in childrens program and also reducing the sugar

and salt level in their products (Berg 2010). That is one way to make chocolates as a favorable

candy without neglect their healthiness. Further, Cadbury educates children to protect the

environment by distributing a booklet named The Little Green Book. This initiative enables

children to recycle and learn about the effects of greenhouse and other environmental issue at

home, school and during holiday (Planet Ark Environmental Foundation 1995).

The above initiatives shows that Cadbury is taking steps to improve standard of living of

people living in Australia by taking care regarding the needs and wants of the society, creating

awareness of greenhouse effect and educate the society from young. This builds up a strong

and good relationship with the society.


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India which is the worlds second largest population, the people also share almost similar

benefits like the Australian community has get, although it is lower standard of living.

Cadbury has been in India for over 60 years, own over 5 manufacturing facilities and 4 offices in

India that provide many job opportunities for the Indians (Cadbury India n.d.). Cadbury

provides clean water supply in such a way that rainwater has been to be filtered for its chocolate

production and also cleaning the water in India since the water in India is badly polluted and

carries all kinds of sickness and disease to Indian (Purple goes green 2007).

In order to tighten the manufacturing and interest costs while taking care of its stakeholders,

Cadbury has well organize management of operating funds that work for capital efficiencies.

This has driven Cadbury to perform better and bring further benefits to its workers.

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