'Cadbury: the Study of Consumer Behaviour\r'

'”Theres atomic number 53 fruit that sells in fag enddid convictions and bad †a choke up of cocoa”. It has been an axiom of Cadbury Compevery for generation. Today, the company which was opened in 1842 by joke Cadbury, Is the global leader in the hot coffee bean candy store manufacturer. The beginning of Cadbury journey is when John Cadbury opened up a shop in Birmingham and sold coffee, tea judgment of conviction, saluteing drinking chocolate and cocoa. In the later on stage, John’s brother Benjamin conjugated the company in 1842 and opened an office in London and received Royal Warrant as manufacturer of chocolate and cocoa to Queen capital of Seychelles in 1854.\r\n aft(prenominal) six years, John got line of work near his health and his wife was death so they left their business and company to their sons George and Richard. The brothers was to a fault dissolve their partnership at the same time. George and Richard god to unwrap the harve st-time line, and by 1864, they were getting an early profit. By this time, Cadbury’s Cocoa Essence which was an all record harvest-time with pure cocoa butter and no starchy was introduced to state. After which, the brothers soon moved their manufacturing operations to a larger facility four miles southward of Birmingham and the factory and argona was known as Bourneville.\r\nWith a victor in chocolate, George and Richard stopped selling tea in 1873 and master confectioner Frederic Kinchelman was ap topographic institutionalizeed to distribute his recipe and convergenceion secrets with Cadbury workers. Moreover in cardinal years time, the factory employed more(prenominal) than 2,600 people and was incorporated as a limited company. In 1969 Cadbury merged with Schweppes which was a large British commemorate that supply mineral water and soft imbibition and the company was know at Cadbury Schweppes. The merged companies would go on to acquire Sunkist, Canada Dry, Ty phoo Tea and more.\r\nSchweppes Beverages was created, and the manufacture of Cadbury candy store check offs was licensed to Hershey. Today Cadbury Schweppes is the largest confectionery company in the world, employing more than 70,000 employees. In 2006 the company had over $15 billion in overall sales. In certify of 2007, Cadbury Schweppes announced that it in slants to separate its confectionery and beverage businesses. With roughly 200 years in the business, Cadbury Schweppes entrust continue to prosper in the coming decades. Theories Used\r\nThe forgathering paper will discuss intimately the sit down of motif, arousal of motives , hierarchy of necessity of Mas grim’s, ELM (elaboration the likes ofliness model ) and how these conjecture and model apply to the approach and expansion of Cadbury company to better lowstanding nearly their consumer behavior. First of all, motivation is basically defined as the driving force within individual that impels them to action. fit to the model of motivation treat (Schiffman et al, 2008), when people impoverishment, insufficiency and desire be unfulfilled, they tend to feel tension.\r\nAfter that it will drive people to the direct behavior by means of their thinking process and previous acquire until their need is fulfilled (Schiffman et al, 2008). On the other hand, nearly of people ad hoc ask atomic number 18 dormant much of the time. The arousal of any particular compensate of needs at a specific point in time whitethorn be ca apply by internal stimuli found in our physiological restrict or our emotional or our cognitive process or by external stimuli in surroundings (Schiffman et al, 2008).\r\nOne of the well know theory of serviceman creations motivation was developed by Abraham Maslow which interpret how client perceive satisfaction manywhat goods and service at contrasting train of needs. check to Maslow, there are five basic level of needs which are physiological nee ds; safety and earnest needs; tender needs; ego needs; self-actualization. The theory is showed that human deform out for the satisfaction from lowest level showtime (physiological) such as food, water, air, clothing, sex. After the first level of needs is satisfied, people will seek to higher level of needs which is safety and security needs.\r\nAfter they get these needs, they will look for the neighborly needs such as love, affection, belonging and bankers acceptance and then is ego needs and self- actualization. (Schiffman et al, 2008) The elaboration likelihood model proposes the more global view that consumer military position changed by two distinctly different routes to mentation: a central route and a marginal route. When consumer‘s motivation or ability to prise the attitude is high, their eruditeness and attitude change tend to occur via central route with available learning about the attitude object.\r\nIn contrast, when people’ s motivation or judgment skills are low, learning and attitude change tend to occur via the off-base route without the consumer focvictimization on info germane(predicate) to the attitude object itself. (Schiffman et al, 2008) Maslow’s Hierarchy of involve accord to Hassan (2005), Maslow’s hierarchy of needs includes physiological needs, safety and security needs, social needs, ego needs and self-actualization which can help us to lowstand human behavior and fork over a right point to motivate nodes power purchasing, especially for what Cadbury has been apply for their part strategies and positioning strategies.\r\nFirst of all, as we know that chocolate is belonged physiological needs which means this kind of ontogenesis is low price and more competitive so that there need get a made key to establish the second largest confectionary grocery store by and bywards Marks-Wrigley (Conor Carroll 2009). This is the crisscross of itself beca engross when customers try w hatever harvest-time they unceasingly bear on about the brand name which non further help the customers identify their needs and satisfy product but likewise help the groceryers to be have it away different from their competitors.\r\nFor this company which already have a strong brand and strong history from 1824 (Conor Carroll 2009) which is more powerful to get customers trust and remained loyal customers as well. For example, when a person go to the super market and he wants to buy a soft drink immediately he will think about Coke or Pepsi, as like as in this case when he go to the supermarket and he wants to buy a bar chocolate he may think about Cadbury although the price may higher than others brands but because of the high nature and lumber brand so that consumers will pay a higher price for branded product which they accept it provides a higher value.\r\nSecondly, although Cadbury is a second largest confectionery company it still made a mistaking when they did not concerned a lot about safety and security needs of consumers in 2006. According to Conor Carroll (2009), Cadbury be in scandal of salmonella scare in 2006 and Easter chocolate products scandal in 2007. Because of it, Cadbury reputation and benefits at this time was dropped significantly. However, they had fined by the Food safety device Authorities and need to recall the entire products problem.\r\nAs a result, Cadbury get over the big two trouble and got it meaning lessons for safety and security products. However, it not only stops by there, they already have an action to get back their reputation from consumers by control more laboratory facilities and scientists to test the product feature and more involve in the social responsibilities. (http://www. cadbury. com/ourresponsibilities/Pages/ourresponsibilities. aspx) Thirdly, for social needs which are more concerned about the environment and social responsibilities than the quality of this product.\r\nCadbury is not only use the campaigns to encourage their customer’s social consideration but also has a special system to stimuli their farmers and workers such as guide more bonus and benefits to the workers in Ghana and support the people living around. This is meaningful that when consumer try Cadbury chocolate they may think that they already pay a right price which bring the benefits to the workers and also leave a small part to support the society.\r\nAs a result, this is the best idea for the marketers because when you want to have a strong brand name inner(a) consumers mind you need to concerned more about the social and environment which are the strong strategy to maintain the product brand name and Cadbury did it. Next, some of the Cadbury products and advertizements emphasis the ego needs which is more specific on self-acceptance and self-esteem such as Cadbury already have targeted this concept to teenagers like Cadbury Perk. For this strategy, Cadbury Perk was targeted to the peri odic snacking which includes chips and wafers.\r\nMoreover, Cadbury Perk contains a message that whenever and wherever teenagers need it always available for their convenient it becomes a bran-new mini snack in this market. Furthermore, for the confectionery market teenagers and children are the studyity consumption and the most central of segmenting and positioning. When the teenagers try Cadbury Perk they may feel like this product was born for them and stands for them like young, active and fictive life. (Cadbury PLC 2010) Lastly, there is need for self-actualization which is concentrated more on inner thinking such as mental integration or demand higher level of personal potential.\r\nHassan (2005) states that generatively, social justice and transformative thinking should be cooperate with this orientation. Thinking towards to Cadbury, we can see that they try to satisfy the customer’s needs as much as they can or plain though more than what consumers expected like Cadbury celebrations which was aimed to switch the traditional gift options during festival seasons with a middling box and nice advancement it really reason for gifting. It is different from others category because it is more formal and lavishness which extend consumers needs.\r\nMoreover, Cadbury also have introduced a product for after(prenominal) dinner sweet which main targeting in India. Because in India people have a wont to have a sweet dessert after their dinner and this product can replace traditional sweet which inconvenient and take more time to repair. For this part, the publicizing more focuses on the adults rather than children. From this point, we can see that Cadbury not only segmenting and positioning their product on children but also expand their divider to the adults which called as potential customers.\r\nCertainly, in this point their advertisement and packaging are also be different from the product that they target to the children. sham of pauper ism Motivation is a theoretical construction from which we can tally the driving force behind human behavior. (Kroeber-Riel and Weinberg 2003, cited in Wohlfeil and Whelan 2006) This, according to Weinberg (1995 cited in Wohlfeil and Whelan 2006), is a combination of both(prenominal) emotional and basic urges to direct behavior and cognitive process to direct the goals and drive to accomplish those goals.\r\nThese goals differs also as the customer moves along the decision qualification process, as the needs and motivations changes will affect how the customer perceives any given information. (Mallalleu and Nakamoto 2008) In the case of Cadbury, the motivations of their customers who secure their brand off the shelves in departmental stores will be different from those who grease ones palms other brands of chocolate, depending on the segmentation, targeting and positioning of the brands, as they focus to fulfilling different root words of customer’s needs, wants and de sire.\r\nCadbury fulfills many market segments, ranging from draw chocolate, no-account chocolate, chocolate flakes, chocolate powder, chocolate drinks and many more. By targeting many market segments, Cadbury aims to provide a sense datum of convenience, and variety within the same brand, lending the durability of their overall brand equity to all the brands under Cadbury. This benefits the customers as now they could buy different products under the same brand, which they can be assured of the quality, packaging and taste, without having to take the risk of try other brands to purchase different chocolate products.\r\nGale 1992; Smith and Park 1992, cited in Morgan and Rego 2009) Higher brand equity allows Cadbury to price their products at a slight premium, despite them competing within the low price segment of the chocolate industry. (Sivakumar and Raj 1997, cited in Morgan and Rego 2009) Cadbury also uses distinction mugs, such as Mr. Amitabh Bachchan in India, in secer nate to re throw out brand equity after worms were discovered in Cadbury chocolates in India. (The Financial chat 2003) Although ultimately, it was later proven that the worms were caused by their retailers bad computer storage practices in India, their reputation was already tarnished.\r\nHowever with celebrity endorsement, the celebrity acting as a character reference lends credibility and attractiveness to the product, giving it familiarity in the process. (Sternthal and Craig 1973, cited in Biswas, Biswas and Das 2006) this motivates the customers by giving them the drive to purchase it when their favourite celebrity endorses the product, and through their cognitive process, any perceived notion of risk is significantly reduced. According to Rao and Monroe (1988), consumers are likely to process more information other than price if they are motivated, to determine the quality of a given product.\r\nThis is important as Cadbury a good deal creates contests and advertisements to build appointment in their products in order to motivate consumers to choose their brand. This involvement however only targets the people with specific personal relevance from which the product has on the person involved. (Coulter et al 2003, cited in Wohlfeil and Whelan 2006) much(prenominal) event marketing allows marketers to provide interactivity, personal share of experience with others, and learning more about the brand in an informal and relax way, while in the meantime, circumventing the natural tendency for consumers to ignore corporate messages that appears elsewhere.\r\nWhelan and Wohlfeil 2005; Mc Alexander et al. 2002, cited in Wohlfeil and Whelan 2006) As such, from the motivation status, we are able to see how and why Cadbury segmented and targeted duplex segments of the market, used their brand equity to price at a slight premium, and used celebrity endorsement to rebuild brand equity in India, and used contests and advertisements to generate involvement in their brand in an informal and exciting way. Elaboration Likelihood Model (ELM)\r\nCustomers can be motivated in many ways, but based on the elaboration likelihood model (ELM), two routes of persuasion are set †central route and peripheral route (schiffman et al 2009). The concept of this model is to explicate the motivation behind consumers purchases and they way to turn them, as two major reference of customers can be found †one with high assessment skills (high involvement) and low assessment skills (Low involvement). However, the success of a company does not come only when through the tampering of marketing elements; it also includes the training of a long term relationship amidst buyer and seller (Ford et al. ited in Zineldin & Philipson 2007). Thus, the contiguous few sections, will describe how Cadbury successfully point its marketing mix, while retaining their customers. But, how does Cadbury appeal to both types of customers mentioned supra? Cadbury dairy farm milk is basically famous among children and teenager, as it is not only affordable, but delicious. Children and teenagers are considered to capitulation under the category of low assessment skills, as the motivation behind buying Cadbury for them is the craving for sweets (schiffman et al 2009)..\r\nThese target group do not concerns on the information of the product , instead, it is the tangible aspect that is the motivation behind, which is to say, this particular group can be persuade through peripheral route. For instance, Celebrity endorsement, Event and advertisement promoted. In addition, variety of assortments in â€Å"dairy draw’ are introduced in the market to meet changing consumer trends and drive further growth of the UK’s favorite chocolate brand.\r\nFor instance, Cadbury draw Double Choc, Cadbury milk issue and nut, Cadbury Caramel and 10 other types of Dairy Milk are introduced in UK alone in the time span of 100 years (Times Online 2 010). The customers’ preferences for Cadbury ‘Dairy Milk’ are the taste, quality and convenience to get a hand of it. That is why the distribution of the chocolate bar and confectionery are important because of the fact that ‘Dairy Milk’ is befitting more of staple and appetite types of good. In France, the chocolate consumption is one of the highest in the world with average of 5. kg per head in 1995 and with the highly competitive market and wide blossom out price-cutting, retail prices and margins vary widely according to product and outlet company must be good in distributing their goods, as the cost of distribution makes up 40-60% of the product cost (Vrontis & Vignali 2001). The other type of persuasion route is central route, which is used to explain on how to persuade customers that have high assessment skill (high involvement), which fall under the target group of adults (Schiffman et al 2009)..\r\nAs one grow, they are becoming mor e conscious of their health and have the perspective that everything that is sweet mean fat and calories. However, the way Cadbury dairy milk appeal to this group is by using the advertisement campaign of 1 ? glass of milk that give a message that one Cadbury bar is contains nutrition and proteins, which is healthy and not healthy deteriorating. In addition, the packaging, design and sizes are being emphasized by the company to accommodate consumers’ demands.\r\nFor instance the packaging of Cadbury is being refined in terms of image and endurance to create brand identity and also increase in size variety for Cadbury in cxl g and 230g package. Kate Harding, the trade communication manager for Cadbury commented, â€Å"Stores come in all shapes & sizes and we have changed the sizes to vitrine the needs of our different retailers who can choose a range which will best suit their shopper. ” (Talking sell 2008) Conclusion Cadbury is a well known chocolate brand deal ing with a wide armament of chocolate products.\r\nThis with their low pricing allows them to extensively flick many chocolate market segments. Through the use of Maslow’s hierarchy of needs, model of motivation, and elaboration likelihood model, we are able to see how they are applied to the company in terms of segmentation, targeting and positioning, allowing the company to gain considerable market share, regain lost brand equity through celebrity endorsement, and generate consumer involvement to create better trust and brand familiarity, through informal and exciting approach in teach the corporate values to their consumers.\r\n'