Cadbury channels Essay
1. Claremont Tasmania
– At this site Cadbury manufacture boxed chocolate assortments, moulded chocolate blocks, chocolate confectionery bars and food drinks for the retail and industrial markets.
2. Ringwood Victoria
– At this site Cadbury manufacture confectionery bars and bar pieces, filled and hollow chocolate novelty units for children and the Easter and Christmas events as well as a range of industrial chocolates and compounded chocolate.
3. Scoresby Victoria
– At this site Cadbury manufacture a range of sugar and caramel based confectionery and licorice product for both the retail trade and industrial customer.
¡ The Cadbury brand has also been licensed to other selected food manufacturers who produce and distribute their range of Cadbury products, notably ice cream. These licencees are responsible for their own Covenant Action Plans.
¡ Cadbury does not sell their goods directly to the final user; between them stands a set of intermediaries performing a variety of functions
¡ Service establishments in particular supermarkets, convenience stores, deli’s, petrol stations etc are highly involved marketing and distribution channels as this is where the target market exists. With these establishments, Cadbury products are made widely available and accessible to the main target markets
¡ Marketing channel performs the work of moving goods of producers to consumers (see figure)
¡ A manufacturer selling a physical product and services might require three channels: sales, delivery and service
¡ Cadbury use Sales Managers and Reps as sales channels, telephone, email and face to face as delivery channels and again Reps and Merchandisers for the setting up and display of products and promotions as service channels (with regards to the supermarkets)
¡ Wholesalers are a vital part of the supply chain for independent outlets and eventually the consumer.
¡ Cadbury uses intensive distribution method, as it attempts to place its products in as many establishments as possible.
Factors that influence the design and management of marketing channels
¡ Consumers are motivated by the presence of brands, they expect to see them and want to buy them
¡ Cadbury products are primarily available in supermarkets and convenience stores and display remains one of the key areas for development not only within these to channels, but also independent retail
¡ Confectionery requires a great deal of consideration when optimising displays so Cadbury has created the ‘Go Another Cadbury’ bespoke display solution to address merchandising opportunities in the impulse trade channel.
¡ Cadbury studies, in recent years, show that the confectionery industry has shown the effects of an increasing move by consumers towards convenience shopping
¡ Convenience shopping is being able to convert customer footfall into purchases. This can be achieved by ensuring confectionery is placed in high traffic flow locations, combined with displaying with other products, such as newspapers and magazines in addition to hot-spots at the till point
¡ Displays which have impact supported by effective point of sale and clear signage all influence impulse buys
¡ Within the convenience channel, forecourts play an important role and Cadbury confectionery continues to be a valuable category
¡ With the advent now of Cadbury vending, innovation is now at the forefront of its business drive and is directly working with machine manufacturers to create new vending options
¡ The development of multi-channel machines has provided vending operators (pubs, TAB’s, Universities etc) to take advantage of the growing need for snacking solutions
¡ The latest Cadbury automates machines can sell confectionery, salty snack and chilled drinks, making them ideal for almost every foodservice environment
Channel conflict and how it can be resolved
¡ Cadbury could be affected by vertical channel conflict and horizontal channel conflict
¡ Vertical channel conflict arises when a disagreement occurs between different levels within the same channel. For example, this could arise if Cadbury came into conflict with its retailers, who agree to sell just Cadbury products, but in fact are also selling rival competitors products
¡ Horizontal channel conflict involves conflict between members at the same level within the channel. For instance, this may occur when separate petrol stations sell Cadbury products at different price, benefiting one above the other
¡ Channel conflict can be constructive but too much is dysfunctional
¡ The challenge is not to eliminate conflict but manage it
¡ The adoption of superordinate goals (come to an agreement), exchange persons between to more channel levels (appreciate other’s point of view), or co-optation (win support of the leader of another organisation) are ways of effective conflict management
What role the Internet can play in helping to fulfil marketing channel requirements
¡ Cadbury uses direct marketing channels as well as one-level channels and two-level channels
¡ Their official website informs buyers about all of Cadbury’s products and services including information about products, recipes, health and nutrition, sponsorship, fundraising etc.
¡ It can also provide a way for retailers and Cadbury to communicate with each other through email about future orders, upcoming promotions and any other relevant information
¡ Cadbury uses the internet as a service and information channel, which allows it to describe the products in detail with the use of visual aids and creating an effective communication channel in reaching its customers
What role does relationship marketing plan in the Cadbury’s channel management
¡ Company-client relationships is imperative with respect to product range, store locations of products and display space
¡ Via the internet website, customers loyal to Cadbury can register and participate in games, downloads, design your own product, interact with Freddo, Caramello and yowie (targeted more for children), lodge customer complaints and also express interest for employment.
¡ Through newsletters, public relations and sponsorship, which go along way in satisfying customers, Cadbury can continue to inform customers about their products together with upholding their tradition of making quality products