Cadbury Is A Leading Global Confectionery Company Marketing Essay

Cadbury Is A Leading Global Confectionery Company Marketing EssayIntroductionCadbury is a conduct global confectionery attach to with an outstanding portfolio of chocolate, gum and candy brands. The company employs virtually 50,000 people and has direct operations in over 60 countries, selling their products in almost every country around the world. The company creates brands people love, brands like Cadbury, Trident and Halls. The company heritage starts back in 1824 when John Cadbury opened a shop in Birmingham selling chocolate and chocolate. Since then Cadbury gift expanded the business throughout the world by a program of organic and encyclopedism leg growth. On 7 May two hundred8, the separation of Cadbury confectionery and Americas Beverages business was completed creating Cadbury plc with a vision to be the worlds Biggest and Best confectionery company.Mission taleCadbury means quality this is the company prognosticate. The company re roveation is built upon quality the company commitment to continuous improvement testament ensure that the company promise is delivered. Cadbury has established itself as a company of fairness and integrity, which always attempts to operate as a socially responsible business.ValuePerformanceCadbury is passionate roughly winning. The company competes in a tough but fair way. The company is striving, hardworking and makes the most of the abilities. The company is prep ard to take risks and act with speed.QualityCadbury put quality and safety at the heart of all of the activities such as product, people, partnerships and performance.RespectCadbury genuinely care for the business and the colleagues which like listen, understand and respond. The company is open, hail-fellow and welcoming. The company embraces new ideas and diverse customs and cultures.IntegrityCadbury always strive to do the right thing. The company does the business with honesty openness and being cracking forward characterize the way. provinceC adbury take accountability for the social, economic and environmental impact. In this way the company aims to make the business, partners and communities better for the future.Cadbury Business Principles are the code of conduct of the company and also take account of global and local cultural and legal standards. They confirm the company commitment to the highest standards of ethics and business conduct. The midpoint adjudicate of the company is creating brands people love. The core purpose captures the spirit of what the company is trying to achieve as a business.Market ShareBy participant, the securities industry is relatively fragmented, with the five largest confectionery companies accounting for around 40% of the foodstuff. There are a large number of companies which participate in the markets only a regional or local basis. Cadbury compete against multinational, regional and national companies.The graph shows that Cadbury is the second highest of the total confectionery i n the market share. Halls is the largest brands in candy of Cadbury. Cadbury have number one and number two confectionery market position in 20 of the worlds 50 largest confectionery markets by retail gross revenue value.fiscal statementThe graph shows the financial situation of Cadbury from 2006 to 2009. As we can see in the graph, the revenue is reached 5975 million is year 2009 which is somewhat increase about 5% from year 2008. In operating income, year 2009 is the highest compare to previous year which is 507 million. Last but not least, year 2009 having 9% of the operating delimitation which is slightly increase from year 2008. As a conclusion, In year 2009, the performance is pretty well compare to the previous year due to there a keep increase since year 2006 to 2009.PESTLE implicationPoliticalThe political broadcasts with government influence. The main laws that will tinct Cadburys are the consumer protection law. These are the laws and the youthful changes in food lab eling. The food labeling shouldnt be too influence as Cadburys has label all their goods properly to begin with. Change in manufacturing law will also greatly influence Cadburys as the company may have to change the way to product the cereal. This could lead to the introduction of new mechanical equipment being required or more thorough checks on the current equipment. If new equipment is required if could prove to be very expensive.The Weight and Measures Act, this act should not affect Cadburys since the company have all the equipment and scales used should already be at that of the highest standard.The Trade Description Act, this again should not affect Cadburys due to all the labeling on the products should be correct and thorough giving all the ingredients.The Sale of Good Act, these state that Cadburys should not mislead the consumer. These are currently three conditions. If the government was to salt away a few more it could prove to affect Cadburys.EconomicThe state of the economy is the main factor. It the country was to go into recession the consumer spending would also puke due to the unemployment. The recession would bring down the sales of a lot of goods mainly the expensive things, which are not necessity. The current economy is well. The interest judge are low and consumer spending is very high. Other economic factor that could affect Cadburys launching a product would be a rise in inflation. This is a rise in price over time.SocialIf the population size decreased then Cadburys be less people to buy the products thusly less profit. If peoples lifestyles changed. For example, nowadays more people wanting to get fit and lose weight, then they will stop eating chocolate and spend their bills on gym memberships and others. This means that Cadburys profits will decrease.TechnologicalAn increase in capital expenditure will affect Cadburys. For example, more up to find equipment would mean that the goods where produced quicker and cheaper but wou ld also result in job losses. In research and development, keep developing new products to keep up with rivalry and customer needs.LegalMore legislation in place to make sure that the workplace is safe and the worker is better protected. Expensive costs to Cadburys to follow throughEnvironmentCadbury launched a corporate social responsibility Web site called DearCadbury.com, which provides consumers information on ethical sourcing, responsible consumption and the environment. The site features Cadburys 2007/08 Corporate Responsibility and Sustainability report, which revealed that the company has reduced carbon emissions almost 4 % to date Cadbury is aiming for a 10 % reduction by 2010. As part of Cadburys Purple Goes Green program, the company committed to a 50 % absolute reduction in carbon emissions by 2020. Cadbury also reported that it has met its 2007 goal of reducing water use by 10 %Competitors situation and SWOT analysisCadburys major competitors are Thorntons, Lindt, Lin dor, Nestle, Master food (Mars) and others. They are competing directly with Cadbury. Nestle is one of the Cadburys main competitor in the market.Nestle is one of the worlds largest food manufacturer, Nestls headquarters in Switzerland and ground in 200 countries worldwide. It is renowned as the worlds leading nutrition and health based company. Nestle grows is product line through innovation as well as renovation and maintains a balance on its geo-environmental activities and product lines. They have 253,000 employees around the world.Cadburys SWOTStrengthsThe largest global confectionery supplier, with 9.9% of global market share.High financial strengthStrong manufacturing competence, established brand name and leader in innovation. favor that it is totally focused on chocolate, candy, chewing gum, unique understanding of consumer in these segment.Successfully grown through its acquisition strategy.WeaknessThe company is dependent on the confectionery and beverage market.Other co mpetitors have greater international experience.OpportunitiesExpand into new markets.Increase share through targeted acquisitions.Key to survival within the FMCG market is increasing efficiency and reducing costs.Innovation Is key driver.ThreatWorldwide, there is an increasingly demanding cost environment, particularly for energy, transport, packaging and sugar.Competitive pressure from other brand suppliers.Social changes.Nestls SWOTStrengthsGlobally recognized as one of the largest and powerful food producer, covering almost every country.Quality is a life-sustaining element regarding nestle products.Strong internal growth and emphasis on innovation internally.Powerful brand positioning in the consumers mind.The decentralized culture in the organization encourages employees.WeaknessThe immense diversification portfolio of the firm makes it impossible to run every division smoothly.Retailers do not get set high margin to increase more in sales.Transportation as well as storage pro blem.OpportunitiesInvest in snacks that would further diversify its product.Provide incentives to the retailers to increase sales volume.Open caf that would exclusively provide Nestle products.Middle class share in most of the economies are growing much larger.ThreatsPollution of product should be regarded strictly.The company has not so pretty history with the FDA.Tough market with a tougher competitor for gaining market share.Market is quite mature and the competitors specialize in a certain product that can hit hard on Nestle.In comparison of Cadburys SWOT and Nestls SWOT,Market object lensFinancial objectiveSpecificGrowth of revenue in UKIncrease total confectionery share gainMeasureableTo growth 5% of revenue compare to previous geezerhoodGrowth in global market share and increase share in the UK by 50 bpsAchievableCarry out a number of advertisements in the market and online.RealisticTimelyMarketing strategyProductCadbury dairy milk is made from real chocolate. The ingredien ts for the chocolate are cocoa butter and there is a glass and half full cream daily milk in every 200 grams of Cadbury daily milk chocolate. Cadbury acquire 65 million liters of fresh milk each year to make Cadbury daily milk chocolate.PricePrice is very important in the marketing mix. The price changed for a chocolate bar can be affect whether a consumer will buy it and the level of sales can determine whether or not Cadbury Schweppes will make a profit. Price is also can be affected by factors such as the state of economy, what competitor are doing. The stage reached in product life cycle and above all what price the market will accept. Form the marketing point of view this is what matters. attitudeCadbury products are produced at the chocolate factory in Bourneville in Birmingham. After the chocolate is produced, it will go through all quality check and transported to the stockrooms. The following, Cadbury sells the products to shops that deal with beverage and confectionery s uch as convenient store, super store, petrol station, and others. This kind of distributions can make consumer easy to find the product. Cadbury produces chocolate for more than 200 countries so that they have a chance to enjoy it as well and make profit. Because of this, Cadbury have a wide range of consumer around the world.PromotionThe purpose of promotion is to communicate directly with potential or existing customer, in order to encourage them to purchase dairy milk and recommend it to others. There is discordant ways to promote the product such as TV advertisement, banner on the internet, magazine and newspapers.Forecast and Implication3-years forecast and budget2009201020112012Sales59756273.756587.446916.81 represent32103370.53539.033715.98Profit509534.45561.17589.23