Cadbury: the Study of Consumer Behaviour

Theres unity point of intersection that sells in good terms and bad a bar of java. It has been an axiom of Cadbury alliance for generation. right away, the community which was opened in 1842 by John Cadbury, Is the global leader in the drinking chocolate confectionary manufacturer. The beginning of Cadbury journey is when John Cadbury opened up a shop in Birmingham and sold coffee, tea, inebriety chocolate and cocoa. In the later stage, Johns brformer(a) Benjamin joined the company in 1842 and opened an office in London and received Royal Warrant as manufacturer of chocolate and cocoa to Queen Victoria in 1854. afterwards six days, John got problem finely his health and his wife was death so they left their business and company to their sons George and Richard. The brothers was also dissolved their partnership at the same age. George and Richard continued to develop the product line, and by 1864, they were delineateting an early profit. By this time, Cadburys coffee Essence which was an all nature product with pure cocoa justter and no starchy was introduced to people. After which, the brothers soon moved their manufacturing operations to a larger facility four miles south of Birmingham and the mill and nation was don as Bourneville.With a success in chocolate, George and Richard stopped selling tea in 1873 and inhibit confecti bingler Frederic Kinchelman was appointed to share his recipe and production secrets with Cadbury workers. Moreover in devil age time, the factory employed more(prenominal)(prenominal)(prenominal) than 2,600 people and was incorporated as a limited company. In 1969 Cadbury merged with Schweppes which was a large British make that supply mineral water and soft drink and the company was know at Cadbury Schweppes. The merged companies would go on to acquire Sunkist, Canada Dry, Typhoo Tea and more.Schweppes Beverages was created, and the manufacture of Cadbury confectionery swords 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 March of 2007, Cadbury Schweppes announced that it intends to separate its confectionery and beverage businesses. With almost 200 years in the business, Cadbury Schweppes al humiliated continue to prosper in the coming decades. Theories UsedThe whole paper will discuss about the exemplar of want, rousing of motives , hierarchy necessarily of Maslows, ELM (elaboration likelihood model ) and how these scheme and model apply to the improvement and expansion of Cadbury company to better understanding about their consumer behavior. prime(prenominal) of all, motivating is elementalally defined as the driving squelch within individual that impels them to action. According to the model of motivation process (Schiffman et al, 2008), when people acquire, want and desire are un set up, they tend to feel tension.Afte r that it will rebuff people to the direct behavior through with(predicate) their beting process and previous acquisition until their charter is fulfilled (Schiffman et al, 2008). On the other hand, most of people specific unavoidably are dormant much of the time. The arousal of any particular set of needs at a specific point in time may be ca determinationd by internal stimuli found in our physiological condition or our delirious or our cognitive process or by external stimuli in environment (Schiffman et al, 2008).One of the sound know theory of human motivation was developed by Abraham Maslow which interpret how customer perceive merriment about goods and service at incompatible take aim of needs. According to Maslow, there are five basic level of needs which are physiological needs safety and bail needs social needs ego needs self-actualization. The theory is showed that human setk for the satisfaction from lowest level first (physiological) much(prenominal)(pren ominal)(prenominal) as food, water, air, clothing, sex. After the first level of needs is satisfied, people will seek to high level of needs which is safety and security needs.After they get these needs, they will look for the social needs such as love, affection, be eagle-eyeding and acceptance and then is ego needs and self- actualization. (Schiffman et al, 2008) The elaboration likelihood model proposes the more global view that consumer perspective pitchd by two distinctly different routes to persuasion a primal route and a peripheral route. When consumers motivation or ability to assess the attitude is high, their training and attitude change tend to occur via central route with available information about the attitude inclination.In contrast, when people s motivation or assessment skills are low, learning and attitude change tend to occur via the peripheral route without the consumer focusing on information relevant to the attitude object itself. (Schiffman et al, 2008) Maslows Hierarchy of Needs According to Hassan (2005), Maslows hierarchy of needs includes physiological needs, safety and security needs, social needs, ego needs and self-actualization which nooky help us to understand human behavior and constitute a right point to motivate customers power purchasing, especially for what Cadbury has been apply for their segmentation strategies and positioning strategies.First of all, as we know that chocolate is belonged physiological needs which means this kind of product is low expenditure and more competitive so that there need commence a successful key to let the second largest confectionary grocery store after Marks-Wrigley (Conor Carroll 2009). This is the inciter of itself beca pulmonary tuberculosis when customers try whatever product they always concerned about the brand name which non only help the customers identify their needs and satisfy product but also help the marketers to become different from their competitors.For this c ompany 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 somebody 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 casing when he go to the supermarket and he wants to buy a bar chocolate he may think about Cadbury although the bell may higher than others brands but because of the high somebodyality and quality brand so that consumers will pay a higher price for branded product which they believe it provides a higher value.Secondly, although Cadbury is a second largest confectionery company it still made a mistake when they did not concerned a lot about safety and security needs of consumers in 2006. According to Conor Carroll (2009), Cadbury be in s laughingstockdal of salmonella scare in 2006 and Easter chocolate products s fuckdal in 2007. Because of it, Cadbury reputat ion and benefits at this time was dropped significantly. However, they had fined by the Food Safety Authorities and need to recall the entire products problem.As 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 support more laboratory facilities and scientists to test the product quality 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.Cadbury is not only use the campaigns to encourage their customers social consideration but also has a special dodging to stimuli their farmers and workers such as give more bonus and benefits to the workers in Ghana and support the people life-time around. This is meaning ful 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 contribute a small part to support the society.As a result, this is the outperform idea for the marketers because when you want to have a strong brand name inside 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 advertisements emphasis the ego needs which is more specific on self-acceptance and self-esteem such as Cadbury already have bumed this concept to teenagers like Cadbury energise. For this strategy, Cadbury Perk was leaded to the casual eating which includes chips and wafers.Moreover, Cadbury Perk contains a message that whenever and wherever teenagers need it always available for their convenient it becomes a new mini snack in this market. Furthermore, for the confectionery marke t teenagers and children are the majority consumption and the most important 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 creative life. (Cadbury PLC 2010) Lastly, there is need for self-actualization which is concentrated more on inner thinking such as psychological integration or demand higher level of personal possible.Hassan (2005) states that generatively, social justice and transformative thinking should be cooperate with this orientation. persuasion towards to Cadbury, we can see that they try to satisfy the customers needs as much as they can or even though more than what consumers expected like Cadbury celebrations which was aimed to replace the traditional enthrone options during festival seasons with a pretty box and nice packaging it really lodge for gifting. It is different from others socio-economic class because it is more formal and luxury which exte nd consumers needs.Moreover, Cadbury also have introduced a product for after dinner sweet which main targeting in India. Because in India people have a habit 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 advertisement 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 segmentation to the adults which called as potential customers.Certainly, in this point their advertisement and packaging are also be different from the product that they target to the children. Model of Motivation Motivation is a theoretical construction from which we can determine 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 emo tional and basic urges to direct behavior and cognitive process to direct the goals and drive to accomplish those goals.These goals differs also as the customer moves along the decision making process, as the needs and motivations changes will affect how the customer perceives any tending(p) information. (Mallalleu and Nakamoto 2008) In the case of Cadbury, the motivations of their customers who purchase their brand off the shelves in departmental stores will be different from those who purchase other brands of chocolate, depending on the segmentation, targeting and positioning of the brands, as they focus to fulfilling different groups of customers needs, wants and desire.Cadbury fulfills umteen market segments, ranging from milk chocolate, dark chocolate, chocolate flakes, chocolate powder, chocolate drinks and many more. By targeting many market segments, Cadbury aims to provide a sense of convenience, and variety within the same brand, lending the strength of their overall bra nd equity to all the brands under Cadbury. This benefits the customers as now they could purchase 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.Gale 1992 Smith and Park 1992, cited in Morgan and Rego 2009) Higher brand equity allows Cadbury to price their products at a keen 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 endorsements, such as Mr. Amitabh Bachchan in India, in order to regain brand equity after worms were discovered in Cadbury chocolates in India. (The Financial Express 2003) Although ultimately, it was later proven that the worms were cause by their retailers bad storage practices in India, their reputation was already tarnished.However with celebrity endorsement, the celebrity acting as a so urce lends credibility and magnet 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 favorite 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 liable(predicate) to process more information other than price if they are motivated, to determine the quality of a precondition product.This is important as Cadbury often creates contests and advertisements to build function in their products in order to motivate consumers to train 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) Such event marketing allows marketers to provide interactivity, personal sharing of experi ence with others, and learning more about the brand in an informal and relax way, while in the meantime, circumventing the natural determination for consumers to ignore corporate messages that appears elsewhere.Whelan and Wohlfeil 2005 Mc Alexander et al. 2002, cited in Wohlfeil and Whelan 2006) As such, from the motivation perspective, we are able to see how and why Cadbury segmented and targeted multiple 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)Customers can be motivated in many ways, but based on the elaboration likelihood model (ELM), two routes of persuasion are identified central route and peripheral route (schiffman et al 2009). The concept of this model is to explain the motivation behind consumers purchases and they way to persuade them, as two major type 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 solely through the tampering of marketing elements it also includes the fostering of a long term relationship between buyer and seller (Ford et al. ited in Zineldin & Philipson 2007). Thus, the next few sections, will get a line how Cadbury successfully maneuver its marketing mix, while retaining their customers. But, how does Cadbury appeal to both types of customers mentioned above? Cadbury dairy milk is basically famous among children and teenager, as it is not only affordable, but delicious. Children and teenagers are considered to fall under the category of low assessment skills, as the motivation behind buying Cadbury for them is the craving for sweets (schiffman et al 2009)..These target group do not concerns on the information of the product , instead, it is the tangible aspect th at 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 Dairy Milk are introduced in the market to meet changing consumer trends and drive further ripening of the UKs favorite chocolate brand.For instance, Cadbury Milk Double Choc, Cadbury Milk Fruit 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 2010). The customers preferences for Cadbury Dairy Milk are the taste, quality and convenience to get a hand of it. That is why the statistical distribution of the chocolate bars and confectionery are important because of the fact that Dairy Milk is becoming more of staple and impulse 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 a nd wide spread price-cutting, retail prices and margins vary astray according to product and outlet company must be efficient in distributing their goods, as the personify 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)..As one grow, they are becoming more 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 exclamatory by the company to accommodate consumers demands.For instance the pac kaging of Cadbury is being refined in terms of go out and resolution to create brand identity and also increase in size variety for Cadbury in 140 g and 230g package. Kate Harding, the trade communication manager for Cadbury commented, Stores come in all shapes & sizes and we have changed the sizes to suit 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 dealing with a wide armament of chocolate products.This with their low pricing allows them to extensively penetrate many chocolate market segments. Through the use of Maslows 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 bett er trust and brand familiarity, through informal and exciting approach in teaching the corporate values to their consumers.