Public relations in media and cultural contexts

The public sphere has been a discursive arena where members of the public have come together on a common platform, time and again, to discuss and debate matters of public importance and to find viable solutions to such issues. It is often through the public sphere that material public opinion has been communicated to the public authority; on the basis of which public policy has been shaped.

However, there is another angle to the arena of public sphere; this idea is determined by the play of public relations in the public sphere. As is already known, Public Relations is a set of communication and activities an entity (usually an organisation or government) undertakes to communicate a desired image of itself among its target public. With the increasing influence of media as a source of information in the society, it is becoming increasingly common for members of the public sphere to use the information disseminated by the media to determine issues or base arguments on. Therefore it can be rightfully concluded that more than often, public opinion may be shaped by the information received from the various media.

It is often debated and argued, about who really wields the power in terms of ultimate opinion formulation. Since, it is quite evident in the modern context that policy maker or the promoter itself can get the public response moulded in favour by means of a cleverly articulated public relations communication, disseminated by a media popular among the target public sphere.

 This learning about the role of public relations in the public sphere can be applied to the study of consumerism and its various avatars like promotionalism, celebrity culture and conspicuous consumption.

Of late, it has been noted that marketers are promoting the use of certain products by opportunistically capitalising on the consumer characteristic to emulate consumption patterns of popular public figures.

This demonstration effect has been reached by the portrayal of certain products/services as being of such value so as to uplift the status of its consumer in his immediate society. The prospective consumer is made to imagine the benefits of consumption; he/she makes the final purchase decision on the basis of this imagination. Often the public relations department ropes in celebrities for its media campaigns, in order to communicate the idea that one can achieve the status as that of the celebrity in question by consuming the products/services campaigned for.

Consider for example the case of Gucci accessories. The brand relies on promotion by celebrity figures such as models and actors to disseminate the thought that Gucci bags command prestige and make a fashion statement, among its target audience.  

The marketers already know that the consumer’s capacity to have desires is consistent and unlimited. The consumer is capable to ‘want’ and ‘need’ novel products as they hit the shelf. The only key component that would determine their buying decision will be the creation of a need for that product. This PR expert know, can be done easily by moulding a positive public opinion for the product by disseminating strategic information among the target public sphere.

An ethnographic study related to consumption

In this paper two acts of consumption have been analysed in context of themes presented in the class.

The first article of consumption in question is a pair of training shoes from the brand PUMA. The two dynamics that influenced the buying and consumption decision in context of this article are the influence of celebrity culture and cultural intermediaries.

Usain Bolt completed the historic 100 metre sprint at the Beijing Olympics wearing PUMA shoes. It is often joked that the shoes carried him to the gold. Since then, the shoes have been portrayed as an integral part of the lifestyles and training regimes of celebrity sportsmen and sportswomen.

While making a decision to buy the trainers I had this passing thought of being able to train just like any professional. A devoted fitness freak as I am, the trainers seem to be the perfect equipment that I need for a training regimen. I often feel that the association of PUMA with a lot of celebrity sport stars has made it easier for any consumer like me to assimilate the importance of PUMA shoes in any professional endeavours to physical training and exercising.

Another factor that could have influenced the consumption decision was the salesman’s stress on how easy it is to clean the trainers. Designers (the cultural intermediaries in this context) have kept in mind the pace of life of the potential customer; hence, colors which do not show dirt and materials which are easily cleanable and breathable are used in construction. A very important aspect of the consumer’s lifestyle and culture has been considered while producing the product.

The second article of consumption is a can of diet coke. The themes discussed in this context are, theories of consumer behaviour and Public relations and charity.

The drink in question was purchased as an act to quench thirst. However, various other alternatives were available on the shopping counter so I can safely state that there had been specific reasons to back the purchase of this specific brand, Coca Cola.

Coke is considered as the oldest soft/fizz drink in the world; its earliest use was as a medicine and currently Coke is being promoted as a drink that brings people together. All these references to the brand in popular culture make me realise that consuming coke is safe (especially diet coke) and is socially acceptable too. Hence I choose coke over other soft drink options available in the market.

I would also like to discuss the play of marginal utility derived from an act of consumption. When the can of coke was purchased, I was extremely thirsty. However just after three sips of the drink, I started to think that I could have waited a few minutes until I reach my apartment and could then have a drink from the refrigerator. By the time the can finished, I was already pondering about the adverse effect of this consumption on my training schedule. Thus, the marginal utility derived from the drink (to quench thirst) decreased with every sip of it that I had.

Concluding from the above examples; an effort has been made to link the various themes and theories of consumer behaviours to actual acts of consumption.

A comparative study of trade restriction in selected countries

This paper seeks to make a comparative research analysis of trade restrictions in various countries. Such trade restrictions are concerned with barriers to trade, that certain governments promote in order to safeguard their domestic producers (and sometimes consumers too) against international competitors or trade practices, which the government deems unfit for the internal environment of the economy.

For the purpose of this study, we will consider the case of the Indian subcontinent, which majorly harbours the nation of India, Pakistan, Sri Lanka, Nepal and Bhutan. The paper will study the restrictions to international trade in these countries with a special focus on emphasising the key issues in developing nations; and the relation between these countries with each other, in context of international trade.

Some of the major points, on basis of which this study will analyse the trade restrictions in these economies, are tariffs, import quotas, voluntary export restraints, health and safety regulations and subsidies, among others.

India

India is one of the fastest growing economies in the world; it is the leading among its neighbours and closely competes with China. However, this was not the case in the pre 1990 era when India was viewed as a strict ‘protectionist’ economy; closed in a lot of aspects to the outside world. Post 1990 India had to liberalise more due to necessity however, it showed an immediate change in the country’s growth statistics, such as trade to GDP ratio increased from 15 to 35 percent between 1990 and 2005. This gave the country a status of ‘rapid globaliser’ in the international community. But even as a global approach the country still promotes certain trade restrictions enumerated below:

1.       Agricultural tariffs- India has been an agrarian economy for long (although recent focus is shifting on the expanding service sector). Agricultural tariffs average between 30-40 percent still. This is in place to protect the domestic producers of primary and agrarian goods. Since, a large Indian population of low or moderate means is involved in agriculture it is of importance to protect the livelihood of a major segment of the population. Also, it is a national ideology to be self sufficient at least in the case of food since, the country had faced a disastrous food shortage in recent past.

2.       Retail trade- India is among the few countries which continue to ban foreign investment in retail trade. Considering, for a major chunk of Indian population retail is the means of income after agricultural activities, the government strives to protect the interest of this mass in addition to guard the markets against the monopolistic competition produced by International trade giants. The recent protests regarding the entry of Wal Mart in India bear evidence to the climate for foreign investment in retail sector, in India. (http://web.worldbank.org/WBSITE/EXTERNAL/COUNTRIES/SOUTHASIAEXT/EXTSARREGTOPINTECOTRA/0,,contentMDK:20592520~menuPK:579454~pagePK:34004173~piPK:34003707~theSitePK:579448,00.html)

3.       In relation to Pakistan- India’s foreign trade policies are the most restrictive. The two countries have always been in conflict since the division of India into two nations in 1947. The neighbours share a mutual feeling of distrust and this show in their diplomatic ties and foreign trade policies. For example, India has placed certain quotas on import of certain goods from Pakistan, there are no proper communication facilities between the countries, road, rail and air routes are usually disrupted, visa grants are hard to get for intra country travel, consignments from either country are subjects to stringent checks on their ports among other barriers to free trade.   

4.       Subsidies- Indian government also provides subsidies to some of its sectors, in order to protect them from international competition and encourage them to grow to a level where they become self sufficient. Examples of such sectors can be service and handicrafts.

Bhutan

Bhutan is a landlocked country, surrounded with India on three sides and China on the remaining one. Post India’s independence the country, has maintained strong bilateral relations with India. It has entered into various preferential trade agreements with India which go on to reflect in its preference to Indian goods over other countries’.

Some of the major trade restrictions advocated by Bhutan are listed below:

1.       Third country imports- Since May 2012, Bhutan has placed certain restrictions on import of non essential items from third countries such as Thailand, Hong Kong, Nepal and Japan. This is in wake of protecting its still developing industries which aren’t strong enough to compete with those of developing/developed nations such as China and Japan.

2.       Exclude India- in most trade restrictions. Providing this neighbour preferential treatment. Excepting India in its third country imports ban could also be a necessity due to Bhutan’s lack of a position of dominance against a big and powerful neighbour. Currently Bhutanese traders also do not require an import license to transact with India.

3.       Checking imports- Bhutan has taken to various extreme measures in order to check its foreign trade. Such measures have ranged from cancelling import licenses in order to disable traders from transacting with the outside world, to restrictions on holding foreign currency accounts outside the country and even increasing freight charges on containers to make imported goods unattractive to Bhutanese population. (http://www.asianewsnet.net/news-30182.html)

Sri Lanka

Sri Lanka was one of the first countries to embrace a liberalised economy in 1977-78. This spurred growth and was evidenced by Sri Lanka’s leading exports to the world in terms of primary goods such as tea and rubber, and its increased reliance on its domestic industries for manufactured goods (as these industries became increasingly efficient when subjected to international competition in a moderated way). However, the continuous civil war for a long time and the change in government in 2004, brought about a change in ideology and Sri Lanka went on becoming a ‘protectionist’ economy from a liberal one. The change in ideology encompassed the following changes in policy making:

1.       Increase In tariffs- In February 2001 a 40% surcharge on custom duties was levied as opposed to a previous general reduction of scheduled duties in 2000. This was in wake of protests against liberal trade policies strengthened by a crisis economic condition; followed by an attack by LTTE on Colombo airport in July 2001.

From late 2004 a deliberate move to promote import substitution is being followed for both agriculture and manufacturing industries.

2.       Complex tax structures- Sri Lanka can be cited as an example for having one of the most complex tax structures for imports. Usually a country will have three sorts of taxes levied on imports which are Custom duties, indirect taxes (as VAT) and excise duties. However, Sri Lanka has as many as nine taxes on imports, which makes it increasingly difficult, complex and expensive for importers to transact with other nations.

Most of Sri Lanka’s moves in context of discouraging trade with the outside world are due to the prolonged civil war in the nation. Factions of society have opposed free trade and other more progressive ones have supported it. There’s no clear opinion in the country about an ideal stand on the issue; as the government is looking towards taxes on trade as fuel to finance its ever growing war expenditure. (http://www.crawfordev.anu.edu.au/acde/asarc/pdf/papers/2011/WP2011_03.pdf)

Nepal

Nepal is a landlocked country in South Asia; surrounded by India on three sides, and People’s Republic of China on the remaining one. Despite its rugged geography, less number of tangible resources, an ineffective post 1950 government and a prolonged civil war, Nepal has shown great promise in the arena of international trade by reducing the number of trade barriers drastically. This has resulted in a trade to GDP ratio of 38 per cent.

1.       Tariff rates- Nepal follows a low tariff rate of an average 11 per cent, encouraging foreign trade, contributing to its economic development.

2.       Accession to WTO- Nepal has recently become a full member of WTO opening up the following prospects for the country:

a)      Agreement to bind most duties and charges at zero and phase them out within 10 years;

b)      Agreement to bind average tariff at 42 percent for the agricultural products and 24 percent for all other products

c)       Agreement to allow up to 80 percent foreign equity participation in 70 services sub-sectors spanning distribution, retail and wholesale services and audio-visual.

3.       Quotas- However the abolition of Multi-Fiber Agreement quotas has already resulted a 40% fall in exports of the garment industry. (http://web.worldbank.org/WBSITE/EXTERNAL/COUNTRIES/SOUTHASIAEXT/EXTSARREGTOPINTECOTRA/0,,contentMDK:20592522~menuPK:579454~pagePK:34004173~piPK:34003707~theSitePK:579448,00.html)

Bangladesh

Bangladesh is rated as one of the most inferior nations in terms of trade restrictions however, recent liberalisation (post 1990) in tariff structure and easing of quotas has lead to an increase of trade-GDP ratio from 18% (1993) to 43% (2008).

1.       Tariff and Quotas- Bangladesh relied heavily on quotas and quantitative restrictions to protect its domestic industries. Approximately 40% of its total tax revenue comes from import taxes. Protective tariffs are currently at 20.1%. A key point of the present tariff structure is the significant application of para-tariff called supplementary duties, which account for about 31% of the average protection.

Some consumer goods, mainly the non-food luxury items, have high protective rates even up to 463% - well beyond the top custom duty rate.

2.       Accession to WTO- Being granted LDC status has opened new vistas for Bangladesh. It has led to rationalisation of tariffs, abolition of quantitative restrictions, moving from a multiple to unified exchange rate determination system, convertible current account and a focus which emphasizes on promoting a rather free trade for the nation.

(http://web.worldbank.org/WBSITE/EXTERNAL/COUNTRIES/SOUTHASIAEXT/EXTSARREGTOPINTECOTRA/0,,contentMDK:20592516~menuPK:579454~pagePK:34004173~piPK:34003707~theSitePK:579448,00.html)

Pakistan

Pakistan’s position in terms of trade restrictions is no different when compared to other countries mentioned in this paper. Its foreign trade relations with India have already been highlighted in this paper (in a sub point under the heading India). However, Pakistan exhibits the following trade barriers in its policies:

1.       Tariff- As all developing nations, Pakistan follows a high tariff rate structure to protect its domestic industries. However, tariff on agriculture are low, due to a perpetual food shortage in the country. This is unusual when compared with other countries of the sub continent which have high agricultural tariffs to protect their primary goods markets.

2.       International Hostility- Pakistan exhibits a hostile behaviour towards a lot of major nations in the world including its neighbours like India, Nepal, Bhutan and Sri Lanka. This is more due to an instable political regime and a conflict of ideologies among powerful factions of the Pakistani society; it has led to disruption of trade with the world for Pakistan.

To conclude, the paper has drawn attention to some of the major issues in developing world (especially those concerning the countries of the Indian subcontinent), which are impeding free trade by the way of trade restrictions initiated by various governments.

Some key issues that have come to light are:

1.       Developing nations in general, use Tariffs and Quotas as a means to protect their domestic industries.

2.       Usual restrictions to free trade have been initiated due to the case of internal turmoil within a nation. Just as in the case of Pakistan or Sri Lanka; where import taxes are viewed as a means to finance war expenditure.

3.       Countries of the subcontinent have bound themselves in various preferential trade agreements with each other; this has been a barrier to entry for rest of the world, into the markets of these nations.

4.       Trade restrictions in the developing world are rarely concerned with health and safety concerns (which are an issue in most western economies). However, exceptions can be seen, just as in the case of Indo-Pak relations where safety issues are prominent to protect both the nations from their hostility towards each other.

E business marketing approaches to open a new market

Executive Summary

The paper studies the external and internal environment of Cadbury Australia. Based on this study, an approach is formulated for future course of action. Such an approach utilises the E business marketing approaches to open a new market altogether for the confectionery giant.

The study elaborates upon how Cadbury can stand a first mover’s advantage over its competitors, if it considers implementing the ecommerce model.

The following points have been used to determine Cadbury’s current position in the Australian market:

1.       Market size and Cadbury’s market share

2.       Behavioural aspects of Target Market

3.       Cadbury’s position vis-à-vis its competitors

4.       Its internal organisation and philosophies

On the basis of the above points a plethora of recommendations have been made with regard to setting and promotion of an e business marketing module. The recommendations are stated in brief, below:

1.       Building a technologically sound website.

2.       Integrating social media in the promotion efforts of the website.

3.       Utilising technologies such as SEO, SEM and Bulk Mailing to market the proposition.

4.       Stress on customer relationship management to build a solid foundation for the model.

5.       Putting up a clever logistical approach to manage online order receipt and delivery system.

Table of Contents

Executive Summary. 1

1.      Introduction and Background. 2

2.      Business Concept. 2

3.      Analysis. 3

a.      Industry. 3

b.      Market. 3

c.      Competitor. 3

d.      Organisational Analysis. 4

4.      Online Business Model (Brief). 4

5. Strategic plan for e-commerce initiatives. 4

5.1. Objectives. 4

5.2. Strategy. 5

5.3.      Value Proposition. 6

5.4.       Service Delivery Strategy. 6

5.5.       Critical Success Factors. 8

6.      Recommendations and Conclusion. 8

 

1.     Introduction and Background

Cadbury is a British confectionery company, founded in 1824. It operates in over 50 countries currently and is the second largest in the world (in the confectionery industry) after Mars Incorporated. (http://en.wikipedia.org/wiki/Cadbury#Australia_and_New_Zealand)

Cadbury operates three Australian factories as well as one in New Zealand; two in Melbourne, Victoria (Ringwood and Scoresby), one in Hobart, Tasmania (Claremont). On 27 February 2009 the confectionery and beverages businesses of Cadbury Schweppes in, Australia were formally separated and the beverages business began operating as Schweppes Australia Pty Ltd. In April 2009, Schweppes Australia was acquired by Asahi Breweries. (http://en.wikipedia.org/wiki/Cadbury#Australia_and_New_Zealand)

In Australia Cadbury holds some of the largest selling brands in the market like kit kat and cherry ripe; It is also the market leader with a 36% share of the total chocolate consuming market in Australia, comprising of approximately 9.6 million Australians. (www.roymorganonlinestore.com – Mars bars, cherry ripe & kit kat – the favourites among chocolate bar consumers.)

2.     Business Concept

Even in Australia, Cadbury faces competitive threats from its biggest international rival Mars Incorporated, which holds approximately 12% market share with its Mars bar, as against 11% by Cadbury’s top selling product, Cherry Ripe. (www.roymorganonlinestore.com – Mars bars, cherry ripe & kit kat – the favourites among chocolate bar consumers.)

Cadbury can benefit from a unique first mover advantage by introducing an additional sales channel for itself on an online platform. Currently the company’s website is presented as a medium of community building and as a public relations exercise.

However a strong potential exists to take the community building exercise to a higher level, integrating the power of social media; along with exploiting the trends in e commerce to establish an alternative sales channel in the virtual world.

Although the task is not a simple one and requires focus in areas like logistics and order handling (given Australia’s hot climate and chocolate largely being an impulse purchase product), it is imperative to understand the value such endeavour can bring to the market place and how a bold and novel step can revolutionalise the way things are done in the confectionery industry.  

At present Australian online retail market stands at a worth of $ 12.3 billion (http://www.startupsmart.com.au/technology/in-pictures-australias-five-key-online-spending-trends/201211298339.html), this market largely represents a young or middle aged population, which also forms the core target audience of Cadbury’s various products. Hence, it is quite obvious, the role an online platform can play in bringing back a lost share or even a bigger share, to Cadbury’s kitty.

3.     Analysis

Before we proceed to developing an online business model for Cadbury, it would help to study the position of Cadbury with reference to various elements in its micro and macro environment. Such a study will help provide a depth in to the issue concerning the confectionery giant and how it can capitalise on its existing capabilities to take over a new market.

a.      Industry

According to a study, (www.roymorganonlinestore.com – Mars bars, cherry ripe & kit kat – the favourites among chocolate bar consumers.) the Australian chocolate and confectionery market comprises of over 9.6 million consumers. The market is catered by 10 major brands mostly, out of these over 5 brands are owned by Cadbury.

Being a part of the local taste and cuisine, chocolate is an engrained part of Australian dietary habits hence, has a very old and flourishing industry exists around the trade of confectionery and chocolate.

It is important to note that, Cadbury even owns some of the most popular and oldest brands in Australian chocolate market (like, Cherry Ripe and Kit Kat), making it a strong element in the whole industry.

b.     Market

As mentioned in the previous point, Australia harbours a population of over 9.6 million chocolate consumers; this is a huge market potential for any chocolate seller, including a player as well grounded as Cadbury. It is of even more relevance to know that the total population of chocolate consumers exhibits frequent repeat purchases behaviour.

Also of importance is the fact that a huge chunk of the total consumers are people aged between 15-39 years and the majority of them are male. This is relatable to the trends in e commerce, where majority of the target audience for e-commerce setups comes from people who are young or middle aged males.

Chocolate and confectionery largely being an impulse or a habitual purchase decision, or sales for specific products, motivated by occasion; presents a challenge for marketers to integrate such buying patterns into the promotion of an online sales model for Cadbury’s.

c.      Competitor

Even in Australia Cadbury faces tough competition from its international rival Mars incorporated. According to surveys, mars bars (a product of Mars incorporated) are the market leaders in the chocolate market with 12% of total market share; products from Cadbury’s such as Cherry Ripe hold the second highest share with 11% and Kit Kat with 10%.

Cadbury can exploit a first mover’s advantage over its closest competitor Mars, by bringing a first of its kind online sales model to life. It is evident from a brief study of the websites of both the organisations that, whereas Cadbury australia’s website is working towards building a community interaction and following by integrating social media plug ins, blogposts and interactive chat modules; Mars Australia’s website looks like a formality executed, with only display of inadequate static information. Thus, Cadbury already has a strong platform to build upon an advantage.

d.     Organisational Analysis

With a vision statement that envisions a dream of ‘ a Cadbury for every pocket’ and a mission statement that focuses on delivery of quality always, it is of significance to Cadbury to develop an online store to put the product within arm’s reach of the ultimate consumer; striking down barriers of any sort.

Cadbury has always aspired to be able to relate to a younger marker, which fuels the following of the brand. It has always tried to be affordable and easily accessible to its target audience, given their impulse and repeat purchasing behaviour. Such an organisational focus will be justified if Cadbury could develop a successful system to operate in the online sphere making a better connect with its target audience.

4.     Online Business Model (Brief)

The unique selling proposition being detailed for Cadbury’s online sales model is, to make Cadbury available at arm’s reach to a prospective consumer through a distribution and delivery channel which provides more comfort to the consumer.

Such a sales platform will also be spear heading community building exercises for the organisation thus, generating a positive word for the brand.

The platform will require:

-integrating social media with the strategy to capitalise on reaching out to larger number of people and making a prolonged impression.

-social media will also help in engaging target audience in community building as well as sales promotion efforts.

-utilising processes such as search engine marketing (SEM) and search engine optimisation (SEO) to increase the brand’s foot print on the internet.

-working on strategies like price motivation, timely logistics and customer support, to encourage purchases and instil confidence among consumers for the new platform.

5. Strategic plan for e-commerce initiatives

The strategic plan for Cadbury’s e-commerce initiatives provides the details of planning and execution of bringing the online platform into action. This plan will start in its formative stages after laying down the objectives of the ecommerce framework that the company is willing to create.

5.1. Objectives

The objectives under Cadbury’s ecommerce business model plan are outlined below:

a)      Alternative sales channel- Cadbury’s e portal will act as alternative sales channel, promoting even wider distribution of the company’s products; in line with the vision statement of ‘a Cadbury for every pocket’. This channel is also targeted to capture a newer market still out of reach of cadbury’s competitors.

b)      New products- The website will also focus on certain product variants which have higher probabilities of online purchases by a consumer. Such products can be on the lines of, gifting packs - which allow one to share the love of chocolates with loved ones based in far flung places; or, super saver packs which promote sales by driving the idea of thrift in the minds of the consumer; or special combos where Cadbury products can be paired with products from different categories and brands, for example, a valentine’s pack combining Cadbury chocolates with a teddy and flowers, promoted on the occasion.

c)       Capitalising on trends- It is largely observed that Chocolate and confectionery purchasers are usually young and exhibit impulse buying behaviours. This is also true for most online shoppers. The proposed ecommerce site for Cadbury will benefit from capitalising on these trends.

d)      Community Building- the website is also pitched at filling for a community development role. The website by attracting a large target audience will strive to gather support and attention for community building and fan following promoting activities undertaken on social networking sites like facebook, twitter and youtube. Also it will act as a public relationship building tool by hosting blog posts, company news, activities and encouraging live interaction between public and company personnel by means of the website itself.

 

5.2. Strategy

This part elaborates on the steps the organisation needs to actualize to achieve the objectives laid down for the ecommerce programs. The following form a crucial part of Cadbury’s ecommerce strategy in Australian web sales sphere:

a)      Knowing the market- A crucial part of formulating the strategy is to know the target market. Cadbury’s target market is young or middle aged between the brackets of 14-39 year olds. This market is tech savvy and is active online on various social media sites and forums. This group also happens to be the first generation of online shoppers therefore; it is still experimenting and toying with the technology. The prospective consumer exhibits impulse buying behaviour and has a propensity to shell out small amounts only on the purchase of Cadbury products.

b)      Easy to Use- The ecommerce platform need to be simple so as to be understandable by different sections of the target audience. It should be simple enough to be understood by a country side simpleton or a college student. Such a platform will encourage use by prospects and easy familiarity with its various processes, making it approachable; stimulating repeat sales and a higher comfort level experienced by customer in dealing with such technology.

c)       Pricing- while selling online pricing plays a major role In ensuring sales. We have already observed that a typical Cadbury customer has a propensity to shell out small amounts on a single purchase transaction. This fact cannot be ignored while deciding for an online pricing strategy.

d)      Logistics and Inventory- A critical aspect of online selling of chocolates will be of managing logistics and inventory. Chocolate being an impulse purchase or an occasion specific purchase (in case of gifting) requires prompt delivery and consumption. In case of Cadbury it will help to establish delivery models of the likes of Domino’s pizza ensuring delivery within day’s time, half a day’s time or even better if made within an hour or two. Decentralised logistic management by the way of establishing distribution centres across the geographical area of the market will help ensure timely deliveries and accurate inventory management.

e)      Customer Relationship Management- As in any physical market, customer relationship is crucial even in the online virtual market. Approaches need to be implemented to monitor customer feedback and ensure a positive experience for the customer. Also involving customer in relation building activities will win their support. Simultaneously maintaining accurate customer database can mean a huge resource for marketing promotions and, encouraging referrals from already satisfied patrons.

f)       Scalable- The online model should be such so as to be scalable to larger proportions when the need arises and to be able to adapt to changing technologies. An ecommerce business model should also be flexible enough to employ different channels at the same time so as to create more sales avenues on the World Wide Web.

g)      Marketing Campaigns- It is quite obvious that marketing online will require different approaches and technology vis-à-vis marketing offline. Marketing mediums available online and the trends associated with each should be carefully studied before Cadbury proceeds to devise a marketing campaign for promotion of online wing.

h)      Team- Last but not the least, we will stress on the importance of a team. The company needs to form an internal team in the organisation structure which will be exclusively managing the online platform. Such a team should comprise of people proficient in the technology employed to create the ecommerce framework, familiar with trends in the e world and the various avenues available to propagate a business, have a sound enquiry in to the target customer’s psyche and can handle logistics, inventory and customer relationship management with dexterity.

5.3.      Value Proposition

Cadbury’s value proposition by establishing an online business model is, to offer its products (and special variants of its products) to the ultimate consumer through an even more efficient and effective sales and distribution channel, adding to the comfort of the customer by making available services like, door step delivery, cash on delivery payment, increasing the choices available, cutting through physical barriers, and reducing costs simultaneously.

5.4.     Service Delivery Strategy

In this section, we discuss how the actual e commerce framework will work to deliver the value proposition of Cadbury.

a)      Choice of online platform- The basics of building up an ecommerce platform lie in the selection of a technology to develop the website and integrating the payment gateway.

Since, Cadbury Australia already has a functioning website which is already handling online traffic very well, worries for selection of a web development technology are already taken care of. The only modification needed right now to the existing site structure is the addition of a shopping catalogue; which displays the confectionery, chocolate and its various variants on sale, along with the price and an option to order multiple quantities of the same product or a combination of products.

b)      Payment gateway integration- Once the basic structure of the website is ready along with the shopping catalogue, we’d proceed to getting the payment gateway integrated. A payment gateway is a software embedded on the site that allows a merchant to capture payment from the customer’s bank against the goods and services purchased by the customer on the online platform. Cadbury can utilise the services of any gateway provider like Paypal, eway, qvalent, etc depending upon the integration time, service fee and commission charged by the provider.

c)       Security- Online systems are vulnerable to a fast growing stream of online fraud and crime. In order to guard against such evils in the online industry it is a must to put some checks on the website to monitor unwanted activities and to protect the personal information and money received by online shopping models such as Cadbury’s. Thus it will be recommended that cadbury’s Australia procures tools such as PCI certified scanners, SSL certificates, ReD technologies and the like to protect shopper’s interest and guard against elements such as hackers.

d)      Logistics and Inventory- For a purchase like chocolate which needs to be delivered immediately, well protected against the Australian hot climate, to ensure a quality delivery; it is recommended that Cadbury establishes a decentralised distribution model for servicing online purchases. Establishing a distribution centre in all major localities and employing technologies such as cool box (counterparts of hot box, as in Pizza delivery industry) while delivering can ensure in delighting customers and winning their praise. Also a decentralised delivery model calls for an integrated inventory management model wherein, updated inventory from all distribution hubs is fed live to a centralised inventory office, where all the information is compiled, documented, analysed and used.

Cadbury can choose from, contracting with courier companies for its specialised assignment or, establish its own setup for distribution and inventory management.

e)      Marketing and Promotion- Cadbury can benefit from online promotion by utilising the following methods:

. Search Engine Optimisation – This is a process wherein a web site manager aims to popularise a site in search engine results. This is achieved by building, updating and linking an inventory of keywords, tags and Meta tags on back end platforms of various search engines. Cadbury can benefit from SEO by becoming visible to a prospective consumer when he/she conducts an organic search on a search engine.

. Search Engine Marketing – Cadbury can also aim to popularise it e-tailing venture by placing ads on various search engines and web pages which are of relevance to the target market. Example of SEM will be to employ Google Ads and Facebook Ads to propagate a web site.

. Social Media – Cadbury can also build an audience for its marketing efforts and promote its products using social media like Facebook, Twitter and Youtube. Engaging prospects by means of contests, coupon code offers and discount schemes, published on such media can promote sales for the confectionery giant. Additionally Cadbury can integrate social media plug ins on its website and publish web links on social media, so as to achieve a seamless flow from social media promotion to the actual site for sales and vice versa, for community building.   

. On site promotion- On site promotions like bulk discounts, shipping discounts, coupon code offers, etc. can be published on the website itself to promote prospects to make actual purchase decision.

. Email- Cadbury can also undertake bulk email campaigns to promote certain products, occasion specific variants and the like; among the email database of existing customers or, a specially collected database targeting its prospective market.

f)       Customer relationship management- A long term relationship can be formed with a customer by special engagement tactics. This relationship building will not only fetch repeat sales but will also encourage the customer to self initiate word of mouth publicity or generate referrals. Cadbury can achieve this by integrating certain events in its social media engagement schedule. Also, tools such as live chat on website and timely customer feedback survey go a long way in establishing strong bonds with a customer.

5.5.     Critical Success Factors

After considering the whole setup in detail, we must give special attention to areas which will be critical in determining the success of Cadbury Australia’s ecommerce venture:

a)      Easy to use interface- the online retail interface should be attractive, simple and easy to use. Only such an approach will motivate a consumer to log on repeatedly and make purchases.

b)      Customer care- Grievance redressal and feedback monitoring will be the key to establishing brand loyalty in the hearts of the consumer.

c)       Logistics- immediate delivery and consistent quality will ensure impulse buying behaviour from the target audience.

d)      Product and pricing- Value for money products and similar pricing decisions are the key to attracting a currently experimenting online shopper.

6.     Recommendations and Conclusion

Cadbury, although a market leader (in Australia) in its segment currently, must not ignore the fact that the market is adapting to newer technologies faster than the speed of thought. Gauging the inevitability of adapting to newer technologies various modern businesses have aligned their approaches with these technologies, and have reaped the benefit of the same.

In this paper we have successfully chalked out an approach for Cadbury Australia to align its capabilities and resources to a technology such as e-tailing, in order to prepare for future growth trends.

It is recommended for Cadbury to:

1. Initiate resource mobilisation to meet technological requirements for setting up the e commerce framework.

2. Mobilise a specialised team to handle the online operations. Such a team should be proficient in technology as well as marketing strategy and should know how to operate various marketing tools.

3. Create an inventory of ideas to market and promote the e business among its target audience.

4. Work on the offline infrastructure, such as logistics and customer support execution, which would support the online model.

 Assignment Brief:

 E-business Marketing

          

3000 words，Maximum 20 printed pages, 1.5 line- spaced and 12-point font