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An area where there is effective sale of goods and services Cadbury operates in about 60 countries
like India, Australia, Canada, Middle East, Pacific countries with its headquarters in UK.
Nature of business
Cadbury has a strong name in the market for selling a variety of products in three different categories
like chocolates, candy and gum.
Chocolates- dairy milk, five star, time out, perk, munch etc.
Pest-G analysis:
This is an analysis in which political, social, economical and technological factors are taken into
consideration when charting an organizations long term plans.
Political:
Political decisions can be made by the Indian government like increasing the tax rate and this increase
will lead to decrease in sales of the chocolate and therefore profits, this will also limit the opportunity for
growth of the company.
Government can also endure restrictions concerning the welfare of the society and the workers, and so
if the government decides to legislate the functioning and disposal methods of Cadbury this could lead
to huge losses.
Since Cadbury is a chocolate factory, the government may highly be concerned about the health
problems that Cadbury will cause and some more restrictions and rules could be made about the
ingredients of Cadbury which could cause in change of the taste.
Economical:
Increase in interest rates due to some economical factors or phase such as recession, could lead to
limiting the opportunity for Cadbury to undergo growing and expanding.
In such recession if incomes get lower then, Cadbury will experience decrease in sales as customers
priorities change.
In the boom phase, expansion would be a lot easier, economy at the highest and sales are likely to
increase.
Social:
The society perception has great effect on the functioning of the company; if alternative equal brands of
chocolate appear then customers might switch brands.
Increase in the health consciousness of the society could lead to major losses to Cadbury.
Technological:
Cadburys traditional way of processing chocolate might get affected by the introduction of new
machines and techniques, causing them more money and being more automated, this change will also
force Cadbury to pump in more money for the training of the staff in order to adapt to new machinery
and techniques.
The competition:
Cadburys Competitors:
Since Cadbury is one of the largest confectionary factories, it must face some competition from other
chocolate brand. Cadburys main competitors are Nestle, Hersheys and Mars. But Cadburys large
range of products open up new means of competitions. Cadbury unlike its competitors have a strong
base in countries like the UK, Australia, republic of Ireland, India and etc.
Sales and profit trend
Competition
Cadbury plc (CBY)[27]
Tootsie Roll Industries (TR)[28]
Rocky Mountain Chocolate Factory (RMCF)[29]
Hershey Foods (HSY)[30]
Wm. Wrigley Jr. Company (WWY)[31]
Imperial Sugar Company (IPSU)[32]
Cosan Limited (CZZ)[33]
Market Cap $Mil
16,960.00
1,310.00
57.80
7,500.00
21,100.00
186.88
2,640.00
Revenue $Mil
7,971.00
497.42
31.90
4,946.72
5,389.10
875.53
1,679.10
Wrigley (WWY)
Hershey (HSY)
Kraft Foods (KFT)
Ferrero
Global Confectionery Market
10.1%
8.9%
7.7%
5.5%
5.5%
4.3%
4.2%
Chocolate
7.3%
14.7%
12.5%
-8.3%
7.8%
6.8%
Gum
27.0%
-0.1%
34.5%
1.3%
0.1%
-Candy
7.4%
2.8%
2.9%
2.2%
2.7%
0.3%
1.5%
5C:\Users\Dana\Documents\IMG_13112010_032130.png
Target Markets:
These are group of customers the company had aimed to put all efforts in supplying their need.
Most obvious target would be young kids
Cadbury diversified its target audience to include old aged people along with adults
Retailers and chocolate companies
Link to text only version - Opens in a new window
The Company:
Profits and sales trend:
7According to the latest press release in 2010, Cadbury experienced a substantial increase in the total
revenue and sales as well as profits for this year. Moreover, it was mentioned that the revenue
increased by 5% and the second half of growth increased by 6%. This progress was a consequence of
the increase in all the three categories of Cadbury. The chocolate grew by 7%, the gums by 2% and
candy by 5%
Market share:
Business sector: Cadbury happens to be a business to business.
Cadbury lies in the confectionary sector.
Revenue
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XI. The project focus:
Cadbury sells a variety of products and in my project I will be focusing
on dairy milk Cadbury chocolate.
Dairy milk chocolate bar:
Most common and preferred Cadbury chocolate brand worldwide.
Ingredients : Full Cream Milk, Sugar, Cocoa Mass, Cocoa Butter, Milk Solids, Vegetable Fat,
Emulsifiers (Soya Lecithin, 476), Flavours. May contain traces of Nuts. Milk Chocolate contains Cocoa
Solids 26%, Milk Solids 28%.
Contains the logo glass and a half milk, purple color packaging.
Lies in the chocolate category and country focus will be on Indian market.
Cadbury can also merge with their suppliers in order to have two way benefits and avoid conflicts
It can also start making their own cocoa and use of ingredients in order to save up money and import
taxes.
Threats:
With health awareness increasing more day-by-day the production and sale of the chocolates will
decrease
Some regional laws depending on the country might ban some ingredients or certain type of chocolate
which might cause bad publicity and loss in customers and retailers.
Increased severe competition from other chocolate brands and using competitive pricing might cause
reductions in the revenue and increase costs.
The increase of quality control and regulations announced regarding the safety of the ingredients and
side effects.
The Company Marketing Strategy:
XIII. Market Segmentation: this refers to dividing the target market into groups according to their needs
and interests.
Each company when launching new products or brand would consider market segmentation.
Demographic variables which implies to segmenting according to age, gender, income, marital status.
In case of the age group Cadbury first targeted young children and eventually targeted the adults too.
This helps in identifying the marketing mix and features that would attract that particular group.
For income, it will help set the prices of the products that normal customers can afford.
Segmenting according to lifestyles might help target people with certain habits, cuisines and fulfill their
need of consumption of the products for example some people would go for the dark expensive
chocolate due some certain traditions.
Benefits that the product brings: some customers find it very sensible to buy a basic product that would
just satisfy their need like Cadbury dairy milk.
Occasions: this group of customers would only buy these chocolates on occasions such as Christmas,
Halloween etc. known as seasonal buyers. (crme eggs, Easter eggs)
Cadbury also considers the basic preferences for example having a dairy milk hazelnuts chocolate bar
with a cup of tea or coffee. Considering habituation is also segmenting.
XIV. Targeting:
This term refers to considering a certain group of people to make them customers of the brand.
Targeting changes with the change of product but basically for Cadbury target market is the whole
population.
Appendix:
Cash flow for Cadbury
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