CUSTOMERS AT CADBURYS & ASDA

Customers

Unless customers buy its products or services, a business cannot exist. Creating and maintaining good relations with this stakeholder group is very important. Customers have an interest in the company doing well – it means that they can be sure that it will keep producing their favourite products. Customers are people who buy the goods and are given the service. Customers are external stakeholders because they have an interest from outside of the business. Customer needs and wants have to be met otherwise the business cannot make a profit and survive.  

The market is separated into two different segments and this tells us how a market for a product or service is divided, such as the mass market and the niche market. The mass market is when businesses make a product or provide a service aimed at a large number of customers. Whereas, the niche market is a small market for a specialised product.

Segmenting the Market

The market is segmented further, for example:

• Age – For example: 3-5 year olds, 13-18, over 50’s
• Gender – Male/Female
• Income – This is how much a household earn, thee highest paid person in the household is usually the income provider, and also, disposable income is another factor.
• Region – This is where in the country the customers are based.
• Interests – The hobbies and interests of the customers.
• Socio –Economic Group

Socio –Economic Group

The socio – economic groups are divided into 5 different groups. For example:

Socio –Economic Group	Examples of Occupation
Class 1, Group A, Professional	Doctors, Judges, Company Directors
Class 2, Group B, Intermediate	Teachers, Department Managers, Solicitors
Class 3. Group C1, Skilled Non – Manual	Secretaries, Sales Assistants, Supervisory Workers
Class 3, Group C2, Skilled Manual	Skilled Manual Workers, Plumbers, Electricians
Class 4, Group D, Part Skilled	Semi-Skilled Workers, Assembly Line Workers, Cleaners
Class 5, Group E, Unskilled	Unemployed, Casual Workers, State Pensions

Customer Types

There are many different types of customers. A customer is someone who buys a product or service. However, a consumer is someone who uses the produce or service. Internal Customers are customers inside the business, for example, the staff in a business. External customers are normal customers who purchase products.

The different customer types are divided into 8 categories, such as:

·      Individuals - Someone who visits a business himself or herself

·      Groups - A group of people

·      People of different ages - People of different ages

·      People from different cultures - People from different countries and backgrounds

·      Non-English speakers - People that don’t speak English and that they speak different languages

·      People with specific needs - For example, people who need wheelchair access

·      Young children - Little children

·      Business men and women - People that are involved in businesses and companies

Customers at Cadburys

Cadburys have over millions of customers due to the fact that their products are sold worldwide and the business operates on a global scale. This means that the customers could be from any socio-economic group and be any customer type. However, I have found out the customer numbers and statistics for Cadburys World in Birmingham.

What Cadbury customers might say:

I regularly buy Trident gum. It helps me relax. I need to know that Cadbury will always make sure it is working hard to get the Trident on shop shelves so it is there whenever I want it. I also need to be sure that its products are produced in a safe and clean environment – what if I found something horrible had been dropped into my packet of chewing gum?

I am a customer of Cadbury too but I don’t buy chocolate off the shelves in the supermarket. I own a wholesale store but I still have to have supplies from Cadbury. I need to be confident that Cadbury can keep supplying me with crates and cartons of the chocolate bars so my shelves are stacked high for whenever my customers from the corner shops come in to re-stock. If I can’t supply them I will lose money.

What Cadbury customers WANT & NEED:

Cadbury customers want similar things to any other customers. Some of the things that they want are:

Cheap prices - The reason why customers want cheap prices is because of the economy they are in and it is important to customers that they only buy cheap priced products. If the price is set too high it may be more than the product’s target customer can afford, more expensive than similar products sold by other companies, meaning that few will be sold. However, if it is set too low, the company will make less profit and customers may think that the product is inferior to similar products at a higher price. There are many different pricing strategies, and some companies use mark-up pricing to decide the price of their product. This means they take the average cost of making each product and add on a percentage of the price as profit. The percentage added will depend on several factors, for example how much other companies charge for similar products and the image of the product. If a business has developed a product that they want to have a luxurious feel, seem exclusive and special, it is likely to have a higher price.

Good quality chocolate - Customers want good quality chocolate otherwise they are not going to but the product that means that the business won’t be able to make a profit or make an income. Therefore it is important for Cadburys to produce good quality chocolate for their customers to buy. This is an important need and want for customers. Quality can give your business a competitive edge and can help to keep and gain more customers. Quality can affect: the performance of your business overall, your marketing and sales activities, how you develop and produce or provide your products or services.

Improving the quality of products or services involves: making sure you give your customers the level of quality they expect and making sure your quality is equal to, or higher than, that offered by your competitors. Cadburys mission statement is: ‘Cadbury's means quality: this is our promise. Our reputation is built upon quality: Our commitment to continuous improvement will ensure that our promise is delivered.’

How Cadbury customers influence aims:

The customers at Cadburys influence the aims greatly due to the pricing of products and the quality of chocolate. Because the customers want these things, they are part of the Cadbury aims. Therefore already the customers have influenced the aims as Cadburys are changing the prices whether it is more expensive or not. Here is a newspaper article and a video to show that Cadburys have changed the amount of chocolate in the product yet the price is the same:

http://mandmglobal.com/international-media/19-10-12/cadbury-cuts-chocolate-bar-size-without-chang.aspx

Also, customers at Cadburys might have an influence on the different chocolate products being made.

How Cadbury customer interests may conflict with other stakeholders:

The customers at Cadbury might have conflict with the suppliers. This is because end customers want safe and available products, however if the suppliers don’t meet these needs then there will be conflict. Also, adding to this, there might be conflict between the suppliers and the wholesale and retail. This is because they want a reliable supply chain and if the suppliers cannot supply this then conflict can easily arise.

Also there could be conflict between the shareholders and customers as the shareholders want good return on their investment, however the customers want cheaper prices. This means that the shareholders will only be getting a good return on investment of the prices are slightly higher, however the customers will disagree due to them rising the prices of products.

Again, going back to the fact that Cadbury had changed the amount of chocolate in their product yet kept the price the same would also cause conflict. This is because the customers would have an issue with the owners as they decide what happens with the product. Customer want value for money products.

  Customers at Asda

http://your.asda.com/press-centre/asda-wins-market-share-as-customer-numbers-reach-record-high - This article shows that Asda has reached a new record with their customers.

The customers at Asda would mainly fit into the Class 2, Group B Intermediate socio-economic group because these are the people who earn money and maybe like to shop at Asda due to their income or wage. Whereas the Class 1 group may prefer to shop at more high-end stores such as: Waitrose or Co-op, however they may like to shop at Asda too.

Socio –Economic Group	Examples of Occupation
Class 1, Group A, Professional	Doctors, Judges, Company Directors
Class 2, Group B, Intermediate	Teachers, Department Managers, Solicitors
Class 3. Group C1, Skilled Non – Manual	Secretaries, Sales Assistants, Supervisory Workers
Class 3, Group C2, Skilled Manual	Skilled Manual Workers, Plumbers, Electricians
Class 4, Group D, Part Skilled	Semi-Skilled Workers, Assembly Line Workers, Cleaners
Class 5, Group E, Unskilled	Unemployed, Casual Workers, State

What Asda customers WANT & NEED:

Asda customers want similar things to any other customers. Some of the things that they want are:

Cheap prices - The reason why customers want cheap prices is because of the economy they are in and it is important to customers that they only buy cheap priced products. If the price is set too high it may be more than the product’s target customer can afford, more expensive than similar products sold by other companies, meaning that few will be sold. However, if it is set too low, the company will make less profit and customers may think that the product is inferior to similar products at a higher price. There are many different pricing strategies, and some companies use mark-up pricing to decide the price of their product. This means they take the average cost of making each product and add on a percentage of the price as profit. The percentage added will depend on several factors, for example how much other companies charge for similar products and the image of the product. If a business has developed a product that they want to have a luxurious feel, seem exclusive and special, it is likely to have a higher price.

Friendly staff/service - Asda customers want friendly staff who are helpful. Being extra helpful and offering extra services for customers is always a good way to gain a good reputation and good customer service. For instance, if someone walks into your store and asks you to help them find something, don't just say, "It's in Aisle 3". Lead the customer to the item. Better yet, wait and see if he has questions about it, or further needs. Whatever the extra step may be, if you want to provide good customer service, take it. They may not say so to you, but people notice when people make an extra effort and will tell other people.

Whether it's a voucher for a future discount, additional information on how to use the product, or a genuine smile, people love to get more than they thought they were getting. This is an important thing for customers as if the staff don’t give good customer service, they won’t come back to Asda. To a business, customer service is usually their top priority. This is because their customer service can affect their reputation and customer’s views and opinions on the business. Nowadays, people are complaining more and more and businesses are doing their best to provide their customers with the finest customer service they can. They are doing this because they don’t want to lose any loyal customers, want repeat business and mainly, to increase profit numbers.

How Asda customers influence aims:

Asda customers influence the aims of Asda has an aim of Asda is provide cheap, good quality products. The customers influence this, as they want it. Therefore Asda made a ‘smart price’ brand where the products are a lot cheaper.  - http://www.just-food.com/news/asda-to-relaunch-smartprice-own-label-line_id117332.aspx

How Cadbury customer interests may conflict with other stakeholders:

There could be conflict between the shareholders and customers as the shareholders want good return on their investment, however the customers want cheaper prices. This means that the shareholders will only be getting a good return on investment of the prices are slightly higher, however the customers will disagree due to them rising the prices of products.

Also, there could be conflict between the customers and the suppliers because the customers want cheap prices, and the sometimes goods cost slightly more, and suppliers want regular business. This means that, if the prices aren’t cheap for the customers, they wont shop at Asda and the suppliers wont be getting regular orders. This will led to conflict.