team01situation-analysis

.pdf

School

Langara College *

*We aren’t endorsed by this school

Course

115

Subject

Marketing

Date

Apr 3, 2024

Type

pdf

Pages

Uploaded by CountTank13897

Team01Situation Analysis Introduction To Marketing (The University of British Columbia) Scan to open on Studocu Studocu is not sponsored or endorsed by any college or university Team01Situation Analysis Introduction To Marketing (The University of British Columbia) Scan to open on Studocu Studocu is not sponsored or endorsed by any college or university Downloaded by Kamalpreet Kaur (088sunshine07@gmail.com) lOMoARcPSD|36290957

Situation Analysis & Segmentation Worksheet For Cadbury UK Downloaded by Kamalpreet Kaur (088sunshine07@gmail.com) lOMoARcPSD|36290957

Situation Analysis & SWOT Worksheet Maximum 8 pages for Parts A through E. No page limit for Part F: References. ● Do NOT change margins from 0.8”. Do NOT change font size from 11 points inside the textboxes. Do NOT delete the worksheet text that explains each section. ● You may change the length (but not the width) of the textboxes to manage your content; e.g. if you had more to say about competitors than corporate partners, you could extend the length of the Competitors and Industry Conditions textbox and reduce the length of the Corporate Partners textbox. ● Use the file naming convention noted at the end of this document to save your PDF. Chosen B2C Brand or Product: Cadbury UK Part A: Introduction – Use this part to briefly describe your chosen brand for the project. Brief description of the brand. Include details such as (but not limited to): ● location of headquarters and location(s) of markets (globally) ● any parent company, subsidiary, or other affiliate relationships ● product(s) offered ● any other defining details about your chosen brand (e.g. is it a non-profit or a Crown corporation?) Cadbury is a private limited corporation and has their HQ located in Uxbridge, United Kingdom (UK). The UK, Canada, India, Ireland, South Africa, Australia and New Zealand remain to be their main markets. Their parent companies include Mondelez International and Kraft Foods UK Ip & Production Holding Limited. Subsidiaries include Cadbury Ireland, Green & Black’s and Sodastream. Cadbury offers a wide range of chocolate confectionery, from milk, nuts, flavoured to special edition. It is offered in the form of bars, nuggets, candies and sandwiches. Describe the scope you will apply for this project. This includes topics such as: ● Geographic scope. While the full global context will be important to understand, on what geographic region will you focus your research? Note: for the purposes of this project, it is simplest to choose a single country or local region within a country. This is where most of your research will focus, so choose a country or region you can easily research through the library and online. ● Brand scope. While the complete organizational context will be important to understand, on what part (product or product line) of the brand will you focus? Note: for the purposes of this project, it is simplest to choose a single product line or retail brand, as this enables you to zero in on a specific target segment. For example, it would be too complicated to choose Mars, Inc., as this brand includes dozens of food, pet care, and confectionary brands; rather, it would make more sense to choose something like Skittles, one of Mars’ sub-brands. Geographic scope: The United Kingdom (manufacturer and product line -> headquarters) Brand scope: Cadbury product categories e.g. Single bars, blocks, Bags and Boxes, Drinks, Biscuits and Bakery Part B: Situation Analysis – Use this part to collect and analyze your research into the immediate and macro environments of your chosen brand. Cite all sources using APA-style in-text citations (and there should be many different sources cited here, since this is the research-dense part of your project). If you are not familiar with APA style, it is your responsibility to look it up. The questions provided in each section are just examples of the types of questions you should research to learn about your brand’s environment. You should research more than these questions, though! Think for yourselves about what other information would be important to know. You will be graded on how complete your research is in each of these areas. Category: what business is your brand in? 1 Downloaded by Kamalpreet Kaur (088sunshine07@gmail.com) lOMoARcPSD|36290957

Research the category to provide context about the industry. ● Define the product category/industry your brand is competing in. ● What are the characteristics of the category, including size and growth rate (or lack thereof)? ● What stage is the category in the product life cycle? (introduction, growth, maturity, decline) With operations in more than 50 countries, Cadbury is the 2nd largest confectionery brand globally with their main markets in UK, Australia, India and China (Mondelez International, 2017). Cadbury has a strong brand reputation, as shown by their presence in 66% of developing and 34% of emerging markets. The chocolate confectionery market has risen in size in the global market from 150.84 (US Billion $) in 2012 to 205.47 in 2021 (Statista, 2021). Mondelez International owns 13.7% (Statista, 2017) of the confectionary market shares (m.s.) and Cadbury with 70% m.s. in the chocolate industry. They gain competitive advantage from having a relatively higher milk proportion which makes their chocolates distinctive. Cadbury is sold in drug stores (most visited places to purchase their products), convenience and supermarkets etc, as Biscuits, Chocolates, Gum, Candy and Beverages. But they are known for their Dairy Milk Chocolate. As of 2020, majority of Cadbury’s revenues stem from the sale of biscuits (48%) and chocolate (31%), with Europe gaining revenue at a staggering 10.2 billion dollars (Mondelez International, 2021). Cadbury is in the maturity stage of its products life cycle and egro employs extension strategies i.e. more flavour variety/ packaging to avoid decline in sales. Despite market diversification, Cadbury remains facing heavy competition from new variants entering the market. This impacts the maturation process and may cause decline in their sales. Consumers: who are they, and why/how do they buy? Research the existing and potential consumers of your chosen brand so you can understand what influences their decisions related to your category. ● Who are the current customers, and what is the estimated size of the market in your chosen geographic scope? ● What factors do consumers consider when choosing between options in your category? ● How do consumers research, buy, use, and dispose of the product? ● How loyal are consumers in this category? ● What products do consumers consider to be competitive (i.e. direct and indirect competitors)? ● Etc… Cadbury does not have a specific customer base by age group, however there is segmentation based on demographic and psychographic factors. For instance, Cadbury Silk is targeted towards high income earners: consumers who would pay higher for an “enhanced feeling of chocolate”. 2020 showed drastic change in consumer demands- with decreased consumption for on-the-go food snacks e.g. candy, on the contrary there was drastic increase for consumption of snacks due to increased demand for in-home products. Most purchases occur during the afternoon (35%) followed by rush hour (28%) (Numerator, 2021). As per research customers look for ‘indulgent textures, flavors and colors’ before buying a chocolate. They look for an experience; all the criterias met by Cadbury due to their extensive variants in chocolate itself, in return increasing their customer base. The pricing strategy in Cadbury is more market oriented than competitors which attracts customers. Brand redesigning in over 50 years was done to reinforce the notion of uniqueness (Bell Publishing, 2021). The re-designing aligns with this time that consumers are looking for authenticity. Their release of different versions of the same chocolate such as Bournville (dark chocolate) are for bitter lovers and a low calorie version for health conscious consumers (Confectionarynews.com, 2005). Their ongoing environment friendly approach helps them reach out to environment conscious consumers e.g. recycled plastic for their packaging in the UK starting 2022 (Lewis, 2021). Company: what shapes its ability and strategies to compete? Research your chosen brand so you can understand how it is able to compete, what limits it, and what you have to work with later in your video. Be realistic, and look for both strengths and weaknesses. If your brand has a parent company or a subsidiary, your research must include that part of the organization, as well, because it can influence your brand’s ability to compete. 2 Downloaded by Kamalpreet Kaur (088sunshine07@gmail.com) lOMoARcPSD|36290957

● Corporate structure and relevant history and background; include strengths, weaknesses, and relevant strategies of any parent company or subsidiary relationships ● Mission/vision, culture, and strategic priorities ● Resources (human, financial, technological, etc.) and key success factors ● Current 4Ps strategies: product, price, distribution, and promotion Production for Cadbury chocolate began in a new factory in 1879. They launched their first edible chocolate (drinked milk powder, cocoa butter, sugar) in 1897, followed by the launch of Dairy Milk in 1915. They opened their first factory abroad in Tasmania in 1921, followed by New Zealand 9 years later (Kollewe, 2018). Cadbury has the vision to become the world’s biggest and best confectionary company, with Growth, Efficiency and Capability (Cadbury, 2018). As of 2008, there are 5700 Cadbury employees working in the UK and Ireland, with revenues up to 1,269 million pounds (Cadbury, 2018). Cadbury and Schweppes were partners since 1969, but Cadbury decided to sell Schweppes Australia in 2008 which allowed them to prioritize their strategies on their confectionary proportion, with their global power in existing and emerging markets to enhance their business (Cadbury, 2018). In the same year, Cadbury decided to reorganise their board (hierarchy company structure) to “align with the skills and experiences of non-Executive directors” in light of their new business model. Hence, both have contributed to a huge success in the company’s operations. Their key success factors (Cadbury, 2018) also include: Focusing their resources on advantaged markets where innovation is launched, focused on most important and consumer-preferred brands, driving consumer preferred products (Dairy Milk - top 1 brand recommended by consumers in UK 2020), launching successful campaigns (“For the love of Wispa” and promotion of Creme Eggs Twisted) and Strong Business revenue growth from good pricing - bundle pricing. Their expansion of Cadbury manufacturing operations overseas as early as the 1930s have helped them build a strong reputation in the global confectionery industry over the years. This has helped them expand to many different countries, in which their emerging markets now range from Argentina to Egypt…However, emerging chocolate brands (i.e. partners) makes it more competitive - people may go for alternatives, especially with high quality brands such as Godiva. In 2009, Kraft offered to buy Cadbury for 10.2 billion pounds (Cadbury, 2018). Corporate Partners: who helps the brand deliver its value proposition? Briefly research the relevant partners of your chosen brand so you can understand how their strengths and weaknesses affect your brand’s ability to compete. Corporate partners could include key suppliers, unions, transportation and logistics companies, service suppliers, etc., so think broadly and critically. Also note if you believe your chosen brand is missing any partners that would help it succeed if it worked with them. Key Partner: Cocoa Bean Supplier from Ghana (Russell, 2008) Strengths/weaknesses related to chosen brand: S: Farmers are paid 10% premium on top of world market price (Steady income for cocoa farmers) W: Declining farmers: Kids of farmer reject to become farmers as they rather work in cities O: NGO stepping in to cocoa bean operations in Ghana (fundings for Ghana farmers to develop) T: Cocoa farms in Ghana only generate 40% of yield potential (Makes Cadbury cocoa supply at risk) Any missing Key Partner(s) that could help? If so, who are they, and how could they help? Transportation and Logistics is managed by Cadbury alone. There may also be key partners for their other materials such as sugar which I have not been able to find online. Their supply may affect how Cadbury goes forward with their campaign to sell more “healthy alternatives”. Competitors: What shapes the industry, and who are the competitors? Research the competitive industry environment in which your brand is trying to differentiate itself. NOTE: this section should flow from the info you provided in the earlier Category section, since that defines the industry. What are the nature and intensity of the category and competition? ● Are there many small competitors, or is the industry dominated by large players? ● Are there barriers to entry, or is it easy for new competitors to enter? ● Are there substitutes and indirect competitors? 3 Downloaded by Kamalpreet Kaur (088sunshine07@gmail.com) lOMoARcPSD|36290957

● Choose the key direct and indirect competitors and research/analyze their target market and their key strengths and weaknesses. Whom are they targeting, and what are their positioning and 4Ps? Cadbury competes against multiple large competitors in the industry. Direct competitors include Hershey (owning rights to many brands), Nestle (known for slavery and child labour) and Mars-Wrigley (some indirect comparisons) which sell chocolate confectionary products to various retailers globally. Nestle has over 350k employees, earning annual revenue over 90 billion. Their products also include baby, pet and medical foods, breakfast cereals, coffee and tea, dairy products, frozen foods and snacks.” Indirect competitors include Frito-Lay and Clif. Hershey's a competitor but also distributor for Cadbury due to an agreement set back in 1988- paid $300 million for the rights to Cadbury’s U.S. operations (Clark, 2009). Hershey received 89% of its annual revenue from the North America market in 2019 (The Hershey Company, 2020). Mars, “with sales over $37 billion, competes in food segments including chocolate, pet care, food, Wrigley’s (gum), drinks, and symbioscience” (Katje, 2021). Cadbury has products that keep customers coming back (e.g. dairy milk, creme egg). Their brand name is featured in product lines that help build brand awareness but risk bad publicity. For Hershey it is vice-versa. Distinct brands could operate different incongruent marketing strategies. For Mars-Wrigley, they do not brand Mars on their chocolate, but Wrigley is featured on their gum products. There is little congruence amongst branding for product lines, which means they try to attract different audiences with similar product lines (e.g. a gum brand for every age). Clif Bar & Company is an Indirect competitor selling organic snacks, most for their signature Clif Bar; an energy bar consisting organic ingredients but with different flavours. While they operate in a niche market (energy bars) they are still one of the top five in the industry. Fragment of the market increases potential to capture even more of the m.s (Mordor Intelligence, 2021). Barriers to entry remain low as it is a brand new market that is not dominated by top level organisations. Clif competes with Cadbury in a wider scope of snacks sold in supermarkets, convenience stores, tuck shops etc. Clif is perceived as a “green” brand, evident from them joining Ellen MacArthur Foundation Global Commitment to Packaging with Purpose, promising that their packaging will be made of recyclable materials (Clifbar, 2020). The products offered by Clif bar would be seen as a healthier substitute which is 70% organic ingredients (Clif Bar & Company, 2020) to capture customers at point-of-sale who would otherwise purchase Cadbury’s snack. Clif targets physically active people who want healthy snacks. Clif Bar has limited access to capital and low economies of scale as it is a privately owned and a new company. The product remains to be in a niche market. Clif’s consumers can’t harbor feelings of loyalty as Cadbury customers- Cadbury has a longer history. Clif tends to rely on online marketing- product branding with visuals of extreme sports and athletes to coincide with the brand's “athletic” image in hopes to connect with their active audience. Clif runs the “Meet the Moment campaign” on their website, in which they pay sponsorship deals to athletes playing extreme sports who promote their product (McMullen, 2018). Clif then posts videos and photos of athletes eating their energy bars. Frito-Lay is an Indirect competitor with Cadbury, Clif, Hershey and Mars. They specialise in more savoury snacks which include Doritos, Lays, Cheetos, Ruffle etc. They compete in terms of the snacks section rather than their flavours. The potato chip market is heavily dominated by Frito-Lay- they own 60% m.s. in the US crisps market (Statista, 2018) making them monopolists. As they influence the majority of the salty snack industry, they can make full use of economies of scale while spending heavily on research rather than trying to keep costs low to deter competition (higher barriers for newcomers). Frito-Lay will also have a relatively strong consumer base due to the lack of substitutes in the market, which allows them to reach a large target audience with product variety. However, there may be no incentives for Frito-Lay to implement strategies or campaigns to attract consumers as they are most consumers' top choice already, which may indicate the lack of innovation the firm has. Frito-Lay may also be losing m.s. in the salty snack industry due to the new emerging markets- salty crackers. The company was called out for forcing difficult shifts. In response, employees are boycotting by alerting consumers not to purchase their products (Romo, 2021). Frito- Lays targets young adults- with products like Baked Lays chips to appeal to calorie aware consumer 4 Downloaded by Kamalpreet Kaur (088sunshine07@gmail.com) lOMoARcPSD|36290957

Your preview ends here

Eager to read complete document? Join bartleby learn and gain access to the full version