I. SITUATION ANALYSIS Cadbury is trying to create a difference in the community; its goals, focusing on promoting healthy lifestyles through investing in signature programs and improving the lives of Fairtrade cocoa farmers due to having their chocolate Fairtrade certified (Cadbury, 2015). Below Table 1 (and Appendix 1) shows a SWOT analysis of Cadbury and its market. Strengths • Well-known brand, easily identifiable • Cadbury is quality chocolate which consumers enjoys • Reacts quickly to trends (e.g. the marvelous creations value of share 9%) (International, 205) Weaknesses • Can be viewed as pricey (turns away price conscious consumers) • Not all their chocolate is Fairtrade approved Opportunities • Chocolate market is on the rise for healthier chocolate expecting to expand 3% (Holdings, 2015) • Potential growth due to population who don’t each chocolate can be converted Threats • Other chocolate brands which are cheaper for the price conscious consumer • Changing brand loyalty can be difficult • Health and well-being concerns For Cadbury’s Jaffa chocolate, Social trends and demographics are the utmost influential macro-environmental forces. Social trends, health and wellness concerns in relation to Australian’s is concerning. Especially, considering 14 million Australians are overweight or obese (Grewal, Levy, Mathews, & Harrigan, 2015). This is a problem for Cadbury as the introduction of the Jaffa chocolate doesn’t promote the health and wellbeing as chocolate is
Moreover, the changing world order from communist, central-planned economies to open-free market economies has allowed looser government restriction to allow multinationals like Cadbury operate more freely. For instance, the Ghanaian government has liberalized the cocoa industry to allow Cadbury to operate more efficiently and effectively in the industry.
Dark chocolate has always been considered an indulgence, now it can also be considered a health food. The good news for the chocolate industry is that consumers are willing to pay a premium for these dark chocolate products, with the average dark chocolate candy bar selling at $2 to $3. Sales of dark chocolate have increased exponentially at approximately 20% per year since 2001. This segment of the market is growing five times faster than the 3.9% average of the chocolate industry as a whole. 8 Sales of premium dark chocolates are currently at $1.2 billion in the United States, or approximately 8% of the chocolate market. 8
Hannum SM, Erdman Jr JW (2000): Emerging Health Benefits from Cocoa and Chocolate. J Med Food 3, 73–75.
As said by key (2015), “The Hershey Company (HSY) is the largest producer of quality chocolate in North America. It is a global leader in chocolate, sugar confectionery, and chocolate-related grocery products, operating under 80 brands in 70 countries worldwide.” The US confectionery market consists of gums, chocolates and sugar confectionery and the largest segment prior to this market in 2013 was the chocolate segment. The main players in this market are Hersheys, Mars and Nestle with Hershey’s leading the market (31.2%) followed by Mars (29.2%) and Nestle (5.2%) in 2014.
On February 2, 2010 Kraft and Cadbury, two leading firms in the snack industry finalized their merger decision after five months of negotiation. In this report we will examine why it made strategic sense for the two companies to combine and evaluate the performance of the combined companies since its merger. In particular we will analyze the post-merger financial statements and highlight a few points regarding the accounting.
Television, the print media and posters have been the main medium of communication for Cadbury’s advertisements. However, with their understanding of the characteristics of the Indian market, Cadbury has additionally examined a number of better approaches for communicating the desired information to the final consumers.
The Cadbury-Schweppes Company has exemplified great leadership in the trust category, as they have been a forerunning company for nearly fifty years. The Cadbury-Schweppes Company is categorized into two main areas, confectionery and beverages. Even more popularly known for Cadbury eggs, and Schweppes ginger ale. “To be admired as a great company to work for and one that is socially responsible to its communities and consumers across the globe” (Cadbury-Schweppes), was a statement made by the Cadbury-Schweppes Company under their “core purposes”. “This goal clearly states Cadbury-Schweppes’ responsibilities and recognizes that what it does as a business impacts on communities and the lives of consumers”(Cadbury-Schweppes. All of these statements really embellish the heart of this company. They desire their company
company with almost 200 years of heritage (founded in 1824). Unlike Kraft, Cadbury has maintained a disciplined approach to their business and remained in the realm of their core market. This focus on their core product market (chocolate and confectionary), has enabled them to refine their business practices in order to produce a consistently high quality product, in a highly efficient and cost effective manner. As a result of these efficiencies, Cadbury is one of the best performers amongst their competitors, reporting gross margins of 45.6% (compare this with Kraft’s gross margin of 35%). Since Cadbury focused on doing one thing well (chocolate and confectionary), this gave them the ability to penetrate emerging markets effectively (44% of Cadbury’s revenue came from emerging
Kraft is a worldwide food and beverage company active in more than 150 countries with annual revenues of $48 billion while Cadbury is a worldwide producer and seller of chocolate and sugar confectionery products in over 60 countries. As stated by the European Commission: “Both Kraft and Cadbury are strong players in the chocolate confectionary business in the European Economic Area. With its
Cadbury’s statement of purpose layouts its general business objective and its dedication to its customers.Our center reason,Working together to make brands individuals affection encapsulates what we are trying to accomplish as a business. We team up and act as groups to change over items into brands.Simply put, we spread joy! (Cadbury plc, 2008). Furthermore, Cadbury stresses the significance that it puts on quality. Aside from its central goal statement,it additionally references the motto, Cadbury implies quality ' as a fundamental piece of its business activities(Superbrands, 2008).Lastly, Cadbury likewise expects to put Cadbury in every pocket (Karvy Research, n.d.) by focusing on currentconsumers and urging them to make motivation buys and by keeping up a prevalent marketing mix.
It all starts with having the right Selection of highest quality cocoa & chocolate products that Cargill’s customers want.
According to the analysis of the international market intelligence provider Euromonitor, the relatively small Indian chocolate market with volumes of about 55,000 metric tonnes of chocolate and compound per year is expected to grow on average per year by around 17.8% between 2010 and 2014.
Increase in disposable incomes of existing working population will result in more demand for consumables.
Cadbury as we know is a well-known company all over the world engaged in services of producing confectionery products. Cadbury provides its customers with world’s best chocolates and candies in more than 50 countries in the world and having a good and satisfied public relation with its customers.
Cadbury as we know is a well-known company all over the world engaged in services of producing confectionery products. Cadbury provides its customers with world’s best chocolates and candies in more than 50 countries in the world and having a good and satisfied public relation with its customers.