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. 

EMPLOYEES AT CADBURYS & ASDA

Employees 

Employees are people who work in the business. They are internal stakeholders. The reason why they are internal stakeholders is because they are within the business and have an influence. An employee is an individual who was hired by an employer to do a specific job. The employee is hired by the employer after an application and interview process which results in his or her selection as an employee. Someone might want to be an employee because they are in need of work or a job and  they could be the best employee for that job. 

What employees want from a business? 

Most employees would want: 

• Rates of pay
• Job Security 
• Compensation
• Respect
• Truthful communication
• For the business to be successful 

Employees At Cadburys 

At Cadburys there are 71,657 employees (2008). In being committed to its core purpose of 'working together to create brands people love', Cadbury Schweppes recognises that it does not operate in isolation and works at its commitment to each one of its stakeholders. It is governed by five goals:

• deliver superior shareowner performance 
• profitably and significantly increase global confectionery share
• profitably secure and grow regional beverages share
• ensure our capabilities are best in class
• reinforce reputation with employees and society 

Cadbury Schweppes has a tradition of encouraging direct, two-way involvement and communication with employees. Managers hold regular individual and team meetings to inform colleagues about the business and hear their views. The company also conducts surveys to check how its employees feel about working at Cadbury Schweppes. Internal newsletters, a group website and many local websites help employees keep up to date with what is going on. - Read more: http://businesscasestudies.co.uk/cadbury-schweppes/engaging-stakeholders-in-a-business/how-to-engage-stakeholders.html#ixzz29w7IiF2e  

http://businesscasestudies.co.uk/cadbury-schweppes/engaging-stakeholders-in-a-business/stakeholders-and-their-interests.html#ixzz29rISXdRi 

What Cadbury Employees WANT & NEED: 

• Rates of pay - At Cadburys and like any other business, employees want good rates of pay as this will motivate them to work more. Good rates of pay will mean that the employees are happy and satisfied and their needs are met as they work for money and to make a livelihood. 
• Job Security - Employees at Cadburys want to know if their job is going to be safe or not. Job security is the probability that an individual will keep his or her job.  A job with a high level of job security is such that a person with the job would have a small chance of becoming unemployed.
  Factors affecting job security are: Job security is dependent on the economy, prevailing business conditions, and the individual's personal skills. Also, some laws (such as the Civil Rights Act of 1964) job security by making it illegal to fire employees for certain reasons. Unemployment rate is a good indicator of job security and the state of the economy and is tracked by government officials. 
• Respect - At Cadburys, if the employees are not treated properly or not with respect, their job performance might decrease and go down, therefore, employees are treated with respect. An example of employees being treated with respect at Cadburys is the fact managers and owners might ask for the employees ideas and thoughts on new and upcoming products that are going to be made and produced, therefore the employees might feel valued and respected at Cadburys or in any business. Employees are key stakeholders of a business, as their performance can dictate whether or not the company survives. Not only must businesses make sure that their staff are happy, but they must also keep employees aware of what is happening within the company, so as to give them a sense of “ownership” and company loyalty. Employees have an interest in the company doing well – if it does badly they are more likely to lose their jobs and less likely to get good pay rises.
• For the business to be successful - This is a main need and want for any employee. For the business to be successful it means that the business is making a profit, large turnover and all products are being sold. Also it is important for Cadburys to be successful as employees have an interest in the business due to the fact that they are working their and need to get paid. So without the business being successful and making profit it means that employees cannot get paid and therefore their work performance will lack and employees will lose all interest in the business. These are some of the statistics for Cadburys: 

Revenue	£5,384 million (2008)
Operating income	£388 million (2008)
Net income	£364 million (2008) http://en.wikipedia.org/wiki/Cadbury

This is what a Cadbury employee might say: 'I work on the production line at Cadbury. I am really interested to know how Cadbury is doing. What if it wasn’t doing well? I could lose my job. I also like to think Cadbury behaves ethically. It would make me feel bad to work for a company that pollutes the environment or didn’t give its workers equal opportunities. I know that Cadbury has a good record on that score.' 

An example of a Cadbury Employee: 

Text version for 'Trang Ly - Maintenance Technician'

A typical working day
Basically my role is to maintain the equipment and plant to ensure that we hit production targets, work in a safe manner and also preventative maintenance on all the equipment onsite. So just to prevent breakdowns and downtime.

Skills and qualifications
I’ve done a four-year advanced modern apprenticeship in mechanical / electrical principles, which involved a City and Guild level 2 and 3 in Maintenance Engineering. I’ve also done an NVQ level 2 and 3, also in Maintenance Engineering. For my higher qualifications I had to do an ONC and a High National Certificate in Manufacturing Engineering.

What do you like about your job?
The best thing about the job is the variation. No day is the same as the day before because we have a wide range of equipment on site and the problems that we have are different every day.

What training have you had?
I’ve been given many training courses – Rockwell training, which is an electrical qualification which helps you on the electrical side of problem solving. And we also get mechanical training from the contracting companies who supply the equipment, to help us through our problem solving and maintenance issues.

What is your career plan?
Within, between the next 5 to 10 years I’m looking to get up into management level because I want to further my career and I want a wider range of skills underneath my belt. I don’t want to move up into management too soon because I feel that I’m still quite young. I’m only 22, I still want to gain more experience first because I want to make the right decisions when I move up to management.

Why this company?
The way that Cadbury works and the way it looks after its employees I would say is second to none. I think the company would really support them through anything if they needed it to.

http://www.skillsspace.co.uk/media/text_trang.asp   

How Cadbury employees influence the company's aims: 

The employees at cadburys influence the company's aims by managers and owners asking the employees for their opinion on the products. The employees might help with issues such as: 

Issues related to Product include:

1. What product does the customer want?
2. Do we change an existing product or create a new one?
3. How will consumer use it?
4. What will it look like? Colour? Size? 
5. What are the characteristics of our target market – will our product suit the market?
6. Is our product likely to be innovative e.g. have a unique selling point (USP)?

Issues related to Price include:

1. How much should we charge?
2. Should we consider competitors’ prices?
3. How much does one of our product cost to make?
4. What image do we want for our product: e.g. high price for exclusive products, low price for products representing good value?

Issues related to Promotion include:

1. What are the promotional objectives? i.e. sell more quantity, or make more profit. 
2. What promotional strategies should we use? Shop displays, free samples, money-off vouchers, celebrity endorsement, sponsorship?
3. What should the advertising campaigns include? Television, magazine, newspapers, radio, online?

Issues related to Place include:

1. Where will target customers look for this product or service?
2. How can we get our product into the places customers look for it? 
3. Which distribution channels should we use to sell it?

http://www.skillsspace.co.uk/business_studies/16to19/marketing/introduction.asp 

Also employees help with creating the product that is going to be sold. One of Cadbury's aims to improve the quality of their chocolate. As the employees work on making the chocolate and manufacturing it, they have a say on how the chocolate is made which affects the quality therefore they have an influence on that aim. Also, the employees that sell that product has an influence on the profits made. Like any business, the main aim is to produce the maximum profit possible. For example: if employees sell loads of products then they therefore have had an influence on the aim about profits and finance. 


How employees interests may conflict with other stakeholders: 

Conflicts occur when the trust breaks down. Specifically, a shareholder may want to take money out of the company (in a dividend, for example), and the employees may feel a bonus for employees would be a better use of the money. The most common example is company expenses: stakeholders want a successful company, and employees would enjoy more money be spent for their sake, eg: higher benefits, award programs, etc. 
If these problems continue, both sides lose. A company without decent employees will not make money for the stakeholders, and eventually they will have to lay off employees because there is not enough money to pay them. That equals no money for stakeholders and no jobs/money for employees. 

Also another type of conflict that employees might have is with the owners of Cadburys. This can occur when employees do not know if their job is secure or not. The employees might think that their job is not safe and therefore will have conflict with owners. An example of this type of conflict is when Cadburys was taken over by Kraft Foods. Here is a news paper article to show what happened: 

http://www.dailymail.co.uk/news/article-1263410/Cadbury-staff-given-ultimatum-Opt-final-salary-pension-pay-suspended-years.html 




Employees at Asda 

There are 143,126 employees at Asda. The employees at Asda are the people that work in the business and are therefore internal stakeholders as mentioned before. Asda needs staff and employees to carry out its activities. Employees agree to work a certain number of hours in return for a wage or salary. Pay levels vary with skills, qualifications, age, location, types of work and industry and other factors. 

What Asda Employees WANT & NEED: 

Asda employees are interested in things such as the success of Asda's business entity. This is because if Asda are not successful they might lose their jobs or have less income. Without this job or income, the employees cannot provide for themselves and cannot provide for their family. The employees also want guidance on what they have to do, for example: they need someone to tell them what their job role is and what it entitles. They want job security too, just like any other employees working for a business. They also want wages and overall, a nice place to work in. For example, if the place they worked in was not clean or appealing, the employees wouldn't really have an interest in working at that place due to the standard of the business. 

• Rates of pay - At Asda and like any other business, employees want good rates of pay as this will motivate them to work more. Good rates of pay will mean that the employees are happy and satisfied and their needs are met as they work for money and to make a livelihood. 
• Job Security - Employees at Asda want to know if their job is going to be safe or not. Job security is the probability that an individual will keep his or her job.  A job with a high level of job security is such that a person with the job would have a small chance of becoming unemployed.
  Factors affecting job security are: Job security is dependent on the economy, prevailing business conditions, and the individual's personal skills. Also, some laws (such as the Civil Rights Act of 1964) job security by making it illegal to fire employees for certain reasons. Unemployment rate is a good indicator of job security and the state of the economy and is tracked by government officials. 
• Respect - At Asda, if the employees are not treated properly or not with respect, their job performance might decrease and go down, therefore, employees are treated with respect. An example of employees being treated with respect at Asda is the fact managers and owners might ask for the employees ideas and thoughts on new and upcoming products that are going to be sold or a service which Asda might offer, therefore the employees might feel valued and respected at Asda or in any business. Employees are key stakeholders of a business, as their performance can dictate whether or not the company survives. Not only must businesses make sure that their staff are happy, but they must also keep employees aware of what is happening within the company, so as to give them a sense of “ownership” and company loyalty. Employees have an interest in the company doing well – if it does badly they are more likely to lose their jobs and less likely to get good pay rises.  As part of this process of community concern, ASDA's colleagues feel more valued. A 'We're Listening' survey was conducted and this showed a real step up in how they felt. Working with the community had become a high source of colleague motivation. This was because colleagues were driven by:action - they felt that their role was not just about going to work to earn money, but was also about helping the community, recognition - stores have been graded for what they are doing with the community. Each year colleagues want to make improvements to the community programme in order to get better grades, initiative - colleagues have been set SMART targets. This means they are Specific, Measurable, Achievable, Realistic and Timely for community involvement. Colleagues are free to decide the best way to meet these targets. This means that they are not being told what to do, but have the freedom to use their ideas for the benefit of the society and decide what will truly reflect the needs of their specific local community. Where colleagues feel better and more motivated, this reduces colleague turnover and the subsequent training and development costs of new ones. It also makes them feel more valued and helps them to work towards meeting the values at the heart of ASDA's mission - http://businesscasestudies.co.uk/asda/meeting-stakeholder-needs-through-community-involvement/benefits-to-stakeholders.html#ixzz29wNN8StE
• For the business to be successful - This is a main need and want for any employee. For the business to be successful it means that the business is making a profit, large turnover and all products are being sold. Also it is important for Asda to be successful as employees have an interest in the business due to the fact that they are working their and need to get paid. So without the business being successful and making profit it means that employees cannot get paid and therefore their work performance will lack and employees will lose all interest in the business. These are some of the statistics for Asda: 

Operating income	£638 million

How Asda employees influence the company's aims:  

Asda employees influence the company's aims by getting involved with the Asda Community programme. One of Asda's aims is to help the local community and give to charity.

ASDA's community programme is there to help the company meet its mission, purpose and values. The aim is to: 'differentiate ASDA from its competitors by appealing to customers and motivating colleagues'.

It is an ongoing programme that is now seven years old. At its centre are the stores, depots and head office. Their actions are determined by five criteria, which are:

• people
• health
• education
• community
• 'big' events.

Each of these criteria is then used as a focus for a yearly programme of activities. These are set up in each store by a local events co-ordinator.

So, for example, under the criteria of health, ASDA stores and depots were involved in raising money for its Tickled Pink campaign, which supports Breast Cancer Care and Breast Cancer Campaign. Colleagues and customers acted as blood donors. ASDA encourages blood donor vans to be set up in its car parks, ensuring the service is available to everyone in the community. Dietary and nutrition advise is also provided.

ASDA's programme helps colleagues to take part in their local community, after all they live and work there too. This process of working closely with others underlines the company's values. Such principles have helped it to give a moral focus for the planned direction of the organisation - Read more: http://businesscasestudies.co.uk/asda/meeting-stakeholder-needs-through-community-involvement/asdas-community-programme.html#ixzz29wOgPnSW  

How employees interests may conflict with other stakeholders:  

At Asda, there are many differences between the stakeholders. The difference between the interest of the employee and the shareholders are that the shareholders want Asda to make a profit as they have invested their money into it. Whereas, the employees only want Asda to thrive, as they want to get paid. Therefore there might be a little bit of conflict between the shareholder and the employee as they view Asda differently to each other.  

Also another type of conflict that employees might have is with the owners of Cadburys. This can occur when employees do not know if their job is secure or not. The employees might think that their job is not safe and therefore will have conflict with owners. 

Another type of conflict can arise when the employees at Asda are not getting paid enough. This conflict can be between the employees and the managers/owners. The employees might feel as though they are not getting paid enough and therefore might lose motivation in their work or their work performance will start to lack. An example of this might be when Asda employees went on strike. Here is an article to show what happened: 

http://news.bbc.co.uk/1/hi/business/5107156.stm