This paper examines the launch of Cadbury's Fuse Bar and delves into marketing strategy of Cadbury.
I will analyze the chocolate market using two sources of information
• Secondary data, which is using information someone already has found. For example the Cadbury website
• Primary data, which is collecting data from people which has not been done be for.
When using these things I have to take into consideration the boundaries that I face in carrying out my research and evaluating the bar.
In the UK confectionary market there are 3 dominated companies these are: Cadbury Schweppes (producers of the Fuse), Mars and Nestle. These are all oligopolies because there are only a few dominated companies. Having oligopolies in a market means that the products they make will tend to sell will tend to have very similar prices.
On Average people eat 35lbs of chocolate a year proving the hugeness of the market. Most of the consumption of chocolate is done has an impulse purchase and can be known to replace meals in a day. The advertising in this market is also fierce and costs' a lot so launching a new bar is going to be hard and expensive.
[...] This is because of the bland design. I recommend Cadbury design a few new packets and see what the public think of them using primary research. Shown here The Fuse bar product range This is ( The average standard bar ( The king-size Fuse ( The mini bars e.g. miniature heroes ( The Fuse Easter egg These are product extensions of the Fuse bar these give the Fuse more products to sell to Fuse consumers. The Name and image The Fuse doesn't give off much of an image because it's a chocolate bar you only have it for a short time. [...]
[...] Market orientated or competition based price- this is a price that is nearly the same as the competition as charged Loss leader price is below the true cost of the product to encourage consumers to buy other products also Penetration or destruction price this is a low price to encourage loyally and gain market share later the price is raised Cost plus price cost of product plus a mark up of profit Psychological price this is when a price is set at e.g. [...]
[...] The analysis of primary research (see questionnaire) I did a questionnaire on 12 males and 6 females and all split into 5 age groups 5-10 11-15, 16-25, 26-35 and 36+. I asked them 12 questions about chocolate and the Fuse bar. My Results of my primary research show us that the main target audience for Cadburys Fuse bar are young men around teens and women of most ages because these people seem to eat the most chocolate so they are most likely to buy it. [...]
[...] Another recommendation is on the price this was a very well suited market based strategy but in this strategy there is still a margin of prices Fuse chose 33p as their RRP I would suggest that they could have put up their price to about 36p this would increase profits and not lower demand much because it is still around the same price as all the others. My penultimate recommendations would be for the promotion of the product this was not well done at all. [...]
[...] So the Fuse should make to try and sell in supermarkets and franchised local store like mace because these are very popular Price can vary in many places which can put off many people buying them there is proof in this research I did: PLACE PRICE Garage 45p Train station 60p Supermarket 35p cinema 50p This proves that prices can vary from store to store so most people go for supermarkets and local store not only because of convinced also the price is better there. [...]
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