Case Study Cadbury
Case Study: Strong rumors that Kraft is looking to take over Cadbury
1.i) Market Penetration is the activity or fact of increasing the market share of an existing product, or promoting a new product, through strategies such as bundling, advertising, lower prices, or volume discounts. For example, if Cadbury lowers the price of a certain product, not changing the content of the product nor the market it was targeting. ii) Product development is the creation of products with new or different characteristics that offer new benefits to the customer. It may involve changes in an existing products or their presentation to satisfy the customers’ needs. For example, if Cadbury created a new line of chocolates which were just like ones which were already in the market but doubling the size, changing the product but not the market it was targeting.
iii) Market development is the expansion of the total market for a product or company by entering new segments of the market. For example, when Cadbury launched its Bubbaloo gum in India in 2007 to take advantage of developing markets, it targeted a new market without changing its product.
iv) Diversification is a strategy that involves adding product, services, location, customers and markets to your company's portfolio. An example was when Cadbury launched a range of Dairy Milk-branded pampering products in 2011.
2. i) The Ansoff’s matrix is a model which is used to show the degree of risk associated with four different strategies which include market penetration, product development, market development and diversification.
-Market Penetration:
For this Kraft would try to increase its sales by offering the same products and targeting the same markets. So Kraft could use strategies such as lowering prices or use strategic advertising to show the customers the same product but in a new and innovative way. Kraft could start a major campaign for Maxwell Coffee House with coupons to existing customers. Another strategy could be
1.i) Market Penetration is the activity or fact of increasing the market share of an existing product, or promoting a new product, through strategies such as bundling, advertising, lower prices, or volume discounts. For example, if Cadbury lowers the price of a certain product, not changing the content of the product nor the market it was targeting. ii) Product development is the creation of products with new or different characteristics that offer new benefits to the customer. It may involve changes in an existing products or their presentation to satisfy the customers’ needs. For example, if Cadbury created a new line of chocolates which were just like ones which were already in the market but doubling the size, changing the product but not the market it was targeting.
iii) Market development is the expansion of the total market for a product or company by entering new segments of the market. For example, when Cadbury launched its Bubbaloo gum in India in 2007 to take advantage of developing markets, it targeted a new market without changing its product.
iv) Diversification is a strategy that involves adding product, services, location, customers and markets to your company's portfolio. An example was when Cadbury launched a range of Dairy Milk-branded pampering products in 2011.
2. i) The Ansoff’s matrix is a model which is used to show the degree of risk associated with four different strategies which include market penetration, product development, market development and diversification.
-Market Penetration:
For this Kraft would try to increase its sales by offering the same products and targeting the same markets. So Kraft could use strategies such as lowering prices or use strategic advertising to show the customers the same product but in a new and innovative way. Kraft could start a major campaign for Maxwell Coffee House with coupons to existing customers. Another strategy could be