Cadbury Schweppes - a successful marketing campaign Cadbury Schweppes - a successful marketing campaign Following the finding of salmonella in some

of its chocolate products in 2006, Cadbury Schweppes aimed to increase sales for its confectionary products by more than 6 per cent this year.nbsp; However, it has beaten its own forecast with abovetarget chocolates sales in Britain by increasing its spend on marketing.nbsp; The focus for the sales growth was a recent and very effective advertising campaign to relaunch Dairy Milk.nbsp; (The Times - 12 December 2007) Central to the pound;6.2 million campaign has been an advertisement featuring a gorilla.nbsp; This was first released as a television commercial with a gorilla playing the drum track on Phil Collins' hit In the Air Tonight.nbsp; This has attracted almost cult viewing and become a huge internet hit.nbsp; It has had seven million viewings on YouTube where the site's users have made about 100 spoofs.nbsp; (The Times - 12 December 2007) Young consumers are attracted to Crunchie and Flake bars but not always to Dairy Milk.nbsp; Cadbury's aim was to create an advert that would tap into the younger market.nbsp; While television advertising is perceived to be more effective for people over 35, digital advertising and internet viral campaigns are often the best ways to reach young consumers.nbsp; A re-launch through viral advertising of the Wispa chocolate bar, after four years' absence, has resulted in more than 20 million Wispa bars being sold in Britain since they returned to shelves in the first week in October 2007.nbsp; (The Timesnbsp;- 12 December 2007) Todd Stitzer, Chief Executive of the Cadbury Schweppes group said: "While the economic outlook for 2008 is uncertain, we are confident that our trading momentum will carry on into the New

Year, supported by our confectionery growth and efficiency initiatives."nbsp;nbsp; (BBC Online - 11 December 2007) However, the cost of materials such as dairy products, energy and aluminium for packaging is expected to increase by 5% next year and could lead to higher prices for consumers.nbsp; (The Times - 12 December 2007)nbsp; This could provide further challenges for the industry. A marketing challenge or company setback, leads a company to examine its marketing strategy and marketing mix in order to reemphasise the brand and re-launch products.nbsp; Two Times 100 case studies demonstrate how other companies deal with similar activities: Kellogg, a brand leader in the breakfast cereal field, recognises that from time to time it is necessary to re-energise the life cycle of a product to maintain or increase market position McDonald's, one of the best-known brands worldwide, continually aims to build its brand by listening to its customers and identifying the various stages in the marketing process. Sources: The Times (print edition) - "Something in the air for Cadbury as gorilla advert sweetens sales"nbsp;- 12 December 2007 Times online - "Monkey magic sweetens Cadbury chocolate sales"nbsp;- 12 December 2007 BBC News - Wispa return helps Cadbury sales, 11th December 2007 The Times 100 Edition 12 Case Studies - Kellogg's, Using aims and objectives to create a business strategy The Times 100 Edition 11 Case Studies - McDonald's - The marketing process

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Marketing and Code of Practice What is your approach to advertising to young children? Cadbury believes that parents and guardians/carers are the most important influence in the development of children. We do not advertise where children under the age of eight years are likely to be the majority of the audience. Advertising to children is appropriate, only when it is conducted in an

environment that supports the parental role, or where the child has reached an age of cognisance and reason, which is now generally accepted as eight years. We have introduced a global Marketing Code of Practice, which includes specific reference to children. Do you sell your products through vending machines in schools? Cadbury does not believe that it's appropriate to sell our confectionery products through vending machines in primary schools and we will not do so. Research shows that secondary school children will leave school premises if products they want are not available and vending can help schools ensure their safety and security. We will only provide vending machines in secondary schools when we're asked to do so by the education or school authority, and when the products meet nutritional guidelines set by the authority. In these circumstances we welcome opportunities to work with authorities to produce and supply products that meet their specific nutritional requirements. What is Cadbury's Marketing Code of Practice? We are proud of our brands. They provide fun and enjoyment as treats or refreshment, and are valued for their functional benefits. They can be enjoyed as part of a balanced diet and lifestyle.

We provide choice by offering variety and through innovation. We encourage responsible consumption, as this is central to consumers continuing to enjoy our brands. Our consumers are at the heart of our business. We are committed to listening to them and acting responsibly in their interests and have done this successfully for generations. The Marketing Code of Practice outlines the companys responsible approach to advertising and marketing its products, and includes specific reference to children. It ensures we continue to meet our responsibilities to our consumers. 1. Accurate and truthful. 2. Attentive to local sensitivities. 3. Supporting sensible consumption and balanced life style. 4. Protecting children. Click here to download our full Marketing Code of Practice (81kb) Application and governance 1. We will apply these guidelines to all forms of media including print, broadcast and cable television, radio, video, telephone, point-of-sale, online advertising, other internet activities and packaging. 2. Prior to release, all advertisements and promotions to children will be reviewed at an early stage for the appropriateness of the activity and then checked against this code before being signed off by Legal representatives. 3. In addition, there will be a periodic review of business unit activity by regional and global management to ensure that

interpretation of the code is aligned locally, regionally and globally. 4. This code is reviewed annually by the group's President of Commercial Strategy and put before the company's Food Strategy Group for policy approval. Sources/references This code has been developed with reference to the following: General references: International Chamber of Commerce Framework for Responsible Food and Beverage Communications, International Chamber of Commerce,http://www.aana.com.au/3_self_regulation/3_2_ICC.ht ml (accessed July 2004) Principles of Food and Beverage Product Advertising, Confederation des industries agro-alimentaires de I'UE - the confederation of EU food and drink industry (CIAA)http://www.gwa.de/fileadmin/download/Kommbranche/ CIAA_Principles.pdf (accessed July 2004) World Federation of Advertisers (WFA): http://www.wfanet.org European Advertising Standards Alliance (EASA): http://www.easa-alliance.org/about_easa/en/about.html Marketing to Children: Self-Regulatory Guidelines for Children's Advertising, Children's Advertising Review Unit (CARU), http://www.caru.org/guidelines/index.asp (accessed July 2004). Code for Advertising to Children, Australian Association of National Advertisers (AANA) recommendations, http://www.aana.com.au/pdfs/A2CCode.pdf (a ccessed July 2004) Report of the APA Task Force on Advertising and Children, American Psychological Association (APA). February 20th, 2004. http://www.apa.org/releases/childrenads.pdf (accessed July 2004)

Click here to download our full Marketing Code of Practice (81kb)