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  • Subject area(s): Marketing
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  • Published on: 14th September 2019
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Introduction

Cadbury is the creation of John Cadbury which started in 1824 in Birmingham, United Kingdom. During that time, John sells his self-made cocoa and drinking chocolate.  The brand became a confectionery brand in 1853. In the year 1860, the sons of John named Richard and George decided to expand the company further. The first milk chocolate bar was introduced in 1875 when Daniel, a Swiss manufacturer added milk in his recipe of chocolate. Throughout the world, Cadbury is the second largest confectionery company, second to Wrigley's and it operates in about more than fifty countries in the world.

One of those countries where Cadbury operates is New Zealand where it is known to be the largest chocolate brand. It started in 1868, where Richard Hudson arrived in Dunedin, New Zealand and opened up his first biscuit bake house. In 1930, a big event happened. Mr Hudson and Cadbury teamed up to make the New Zealand's first bar of Cadbury Dairy Milk chocolate. From 1931 up to present, Cadbury is continuously improving the variations in their product.

In New Zealand, Cadbury brand is under the Mondelēz International

Mission

"Cadbury means equality", this is our promise. Our reputation is built upon quality; our commitment to continuous improvement will ensure that our promise is delivered.

Vision

"To be the World's biggest and best Confectionery Company"

Core Values

Performance, Quality, Respect, Integrity, and Responsibility

Core Purpose

"Working better together to create brands people love"

Product Information

Cadbury is one of the New Zealand's leading and most popular Confectionery producer, manufacturing New Zealand favourites like the Jaffa, Caramello chocolate, famous New Zealand Pineapple Lumps, Pinky Bar, and Moro bars.

PESTEL Analysis

Political

Government laws. If there will be an increase in the taxes, there might also be a decrease in the number of consumers and sales of stocks. On the other hand, if the taxes will decrease, the consumers will buy more.

Economical

Interest rates might affect the Cadbury in a way that if the rates are high, the company might not borrow as much money to expand their business. Also, high interest rates might affect the consumers in paying for their loans and in return would affect them to buy less because of their lesser disposable income.

Social/Cultural

Vending machines are now a fad. Because of the busy schedules, there is an increased number of people who chooses "on-the-go" snacks.

Cadbury has now the "Cadbury World" that offers a tour in the chocolate factory. Small businesses around the area of the factory might have an increased sales because of the people who visits the place.

The people who are health conscious might always read the labels of the food and might lessen the consumption of chocolate and sweet products.

Technological

Cadbury has now improved their website – a more interactive one and includes lot of information that people might want to know. It also improves their way advertising their products.

Research and development might help them in doing some innovations and keeping up with the competition and providing the consumers' needs.

Investing in a more advanced machines would mean an increased in the capital expenditure. In effect of this, products will be produced faster and more efficiently but would cause lesser jobs for people.

Environmental

Cadbury has reduced the amount of cocoa in the chocolate bars and added palm oil to compensate. This has done because they claim that this will improve the customer experience. As to protect the rainforests and habitat of the orang-utans, they registered as board members of RSPO (Roundtable for Sustainable Palm Oil) and purchase Green Palm certificates which independently certify that the palm oil they purchase came from sustainable resources.

The company has partnered with TerraCycle, a New Jersey-based organization that collects non-recyclable or difficult to recycle wastes. The operation of TerraCycle in New Zealand will start by collecting used confectionery wrappers and will undergo to a process called "upcycling". In this process, the wrappers will be truned into new products by squeezing it and it will produce fabrics that may turn to fun things like bags, etc. and can be sold in the market.

Legal

Costs to implement laws that protects the employees of Cadbury and ensure that there is a safe workplace.

Competitor Analysis

Nestlé

Strengths Weaknesses

Strong variety of products High cost in new product launching that will supplement older products

Growing research and development capabilities Company is highly dependent on advertisement

One of the most recognized and trusted brands Sales depend on few well-known brands

Product innovation

Ferrero Rocher

Strengths Weaknesses

Packaging is ideal for gifts Lack of advertisements / not advertised well

Easily recognizable due to packaging Highly priced

Offers quality and luxurious product Not easily available

Unique taste

Mars

Strengths Weaknesses

Highly known as international chocolate brand Not easily available

Wide range of products Known for product recalls

Loyalty of customers Strong competition from other market players

Whittaker's

Strengths Weaknesses

Strong chocolate brand name in New Zealand Investment in research and development

Competes well with other chocolate brands Small business units

Great taste

Porter's Five Forces Analysis

Threat of Buyer's Bargaining Power

The Cadbury's buyer power is said to be in moderate to high. Being known as one of the largest confectionery producers in the world, their buyers are about in billion and scattered all over the world. The customer loyalty might be altered due to the lower costs offered by the competitors with almost the same product. The company must always consider the prices and how they satisfy their customers.

Threat of Supplier's Bargaining Power

Large number of suppliers make the supplier power low. In this case, Cadbury has higher bargaining power than its suppliers for the reason that it depends heavily on the agro business supply chain. Raw materials are still sufficient enough to supply Cadbury's production even though there is an existing competition. Also, compared to medium-sized businesses, Cadbury can buy their raw materials in bulk with a lower price because the company can use economies of scale.

Product and Technology Development (moderate)

The level of threat of substitutes is moderate. There are supermarkets who copy well known chocolates and then sell it on their own brand at lower prices. Some people tend to make confectionery products as gifts or snacks. This method gives the consumers large number of substitutes like cakes, fruits, candies, etc.

Threat of New Entrants

The level of threat of new entrants is low because Cadbury and other competitors like Nestlé, Ferrero Rocher, Mars, and Whittaker's are well-established already in the market. The new entrants that will make an attempt will have a hard time to start for they need a higher initial capital requirements.

Competitive Rivalry

The level of rivalry among Cadbury's competitors - Nestlé, Ferrero Rocher, Mars, and Whittaker's is high because many are planning to take over the power of the company that it has for a number of years. Other companies are continuously doing some innovations in their products to compete effectively. The rivalry will always be high among these companies because they have the same product line and products are available in the same types of stores.

Customer Analysis

Cadbury's customers are in a wide range. They include children, adults,  

SWOT Analysis

Strengths

One of the largest confectionery brand in the world

Excellent research and development

Strong brand name

Weaknesses

Limited brand portfolio

Opportunities

Threats

People are becoming health-conscious leading to lesser consumptions of chocolates

Marketing Strategy

Objectives

To make lots of chocolate

Improve the quality of their chocolate

To survive in the market

Have loads of stores worldwide

4 P's

Place

Cadbury dairy milk is produced at the chocolate factory in Bournville in Birmingham. After the chocolate is produced and has undergone all the quality checks it is transported to the stockrooms. After this Cadbury sells its products to shops that deal with beverages and confectionery e.g. corner shops and super stores. Then they sell it to the general public.

Product

Price

Promotion

Positioning

Segmenting & Targeting

Financials

Implementation and Controls

References

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