The paper “ Cadbury - Product Life Cycle, New Market Entry, Strategic Marketing Programs for Pioneer, Growth Stage, and New-Economy Markets” is a spectacular variant of case study on marketing. This report is marketing strategies highlighting the marketing strategic plan that will allow Cadbury to develop a plan on how they will concentrate its resources to optimize the existing opportunities to achieve its intended goals of sales increase and sustain its competitive advantage. This marketing plan offers hands-on experience in implementing, formulating and evaluating marketing strategies. It enhances a deeper understanding of a number of strategies for declining markets, mature, growth and introduction markets, and new market entries as well as new economy markets to sustain competitive leverage over product. Product Life CycleProduct refers to the combination of services and goods offered to consumers to satisfy their wants or need (Westwood, 2010).
A new product or services go through a series of stages starting from the introduction stage, to growth, to maturity and finally decline stage. This progression is termed as the product life cycle and is related to marketing situation changes, hence influences the marketing mix and the marketing strategy. Introduction Stage: This is when Cadbury launches a new product into the market.
There are low sales and actually the company loses money from the marketing and set-up cost of the product catch on with customer needs and demands. In this regard, Cadbury has had the product for some time, and they have not promoted it until the last couple of months. Growth Stage; the product sales begin to grow since consumers become more aware of the offering. The company has really started to apply it more often and developing more buzz within the city. Maturity phase, which Cadbury Chocolate Fruit Nut is in, there is slow sales growth because a number of competitors are offering this product and also a number of customers have already acquired this product. Fruit Nut chocolateTherefore, for Cadbury to succeed, sales expenses and heavy advertisement would be required to maintain profits and sales from dropping off. Decline phase; sales begin to decline.
Only a few companies provide the product. A better and newer product is provided, which satisfies the needs of the customers instead of the current offering.
The product promotions slow down and eventually, the product dies off. New Market EntryDirect Investments: In this path of new market entry, the business invests in the setting up of its operational and production facilities within the new geographical market. This market entry mode requires serious commitment and investments on the part of the business. The direct investment mode at times can be a very risky investment, and on the other hand, if the marketing strategy of the company becomes successful, then this mode can reap huge rewards (Adam, Armstrong, Brown & Kotler, 2008).
The company also enjoys full control of its brands and products when adopts this route. Franchising and Licensing: This mode of market entry is normally deployed by manufacturing and confectionery companies. A license for production of the product of the organization is issued to a local company in another country (Sally & Robin, 2002). This local company can then sell the products under that company’ s brand name. The licensee company pays an annual royalty fee to the licensor company for using its brand name and production technology.
A number of companies such as McDonald’ s have used the licensing method to enter into new markets.