Essay on Cadbury Schweppes' Strategic Dilemma of Trebor Bassett

Hershey’s began as a single building, creating chocolate, but soon transformed to thousands of companies around the world. “A founder of one of the world’s largest confectionery companies … He [Milton] was a pioneer in the mass production of milk chocolate, turning it to form an expensive luxury into an affordable, everyday treat” (McMahon). Money was not a factor involved with this creation of greatness but much more the quality given to his customers. Even though the quality was a luxury he felt compelled to allow everyone to experience the flavor. Bringing the cost of chocolate down made many more people able to buy the product. “Milton Hershey was a man who measured success not in dollars, but in terms of a good product to pass on the public, and still more in the usefulness of those dollars for the benefit of his fellow man” (Milton S.). Along with the products growth in cost reduction, the company’s development grew as well. More people were buying the product all over the country so that called for an expansion of the industry. Hershey’s creation is what launched the chocolate industry that continues to expand today. The increase in consumers caused growth around the world therefore adding to Hershey’s

Hershey’s company originated with candy-manufacturer Milton Hershey’s decision in 1894 to produce sweet chocolate as a coating for his caramels. Located in Lancaster, Pennsylvania, the new enterprise was named the Hershey Chocolate Company. In 1900, the company began producing milk chocolate in bars, wafers and other shapes. With mass production, Hershey was able to lower the per-unit cost and make milk chocolate, once a luxury item for the wealthy, affordable to all.

Cadbury is a British multinational confectionery company wholly owned by Mondelez International since 2010. It is the second-largest confectionery brand in the world after Wrigley's. Cadbury is internationally headquartered in Uxbridge, West London, and operates in more than 50 countries worldwide. It is famous for its Dairy Milk chocolate, the Creme Egg and Roses selection box, and many other confectionery products. Cadbury was established in Birmingham, England in 1824, by John Cadbury who sold tea, coffee and drinking chocolate. Cadbury developed the business with his brother Benjamin, followed by his sons Richard and George. George developed the Bournville estate, a model village designed to give the company's workers improved living conditions. Dairy Milk chocolate, introduced in 1905, used a higher proportion of milk within the recipe compared with rival products. By 1914, the chocolate was the company's best-selling product. Cadbury, alongside Rowntree's and Fry, were the big three British confectionery manufacturers throughout much of the nineteenth and twentieth centuries.

Cadbury uses market penetration strategies to keep people aware of their brand. They do this all in their current market. They do this by selling more to existing customers, like selling their products in multi-packs. This means that the customers can buy their products in larger quantities and it will encourage them to do so as they can have more of the product instead of buying it individually. They also use product development strategies such as selling new products in an existing market.

Currently, The Coca-Cola Company has cost of equity of 3.39% meaning investors require return of 3.39% for their investments in Coca-Cola.

The person, who created the Cadbury business, is John Cadbury in 1824. The business started as a shop in a fashionable place in Birmingham. It sold things such as tea and coffee, mustard and a new sideline - cocoa and drinking chocolate, which John Cadbury prepared himself using a mortar and pestle. In 1847 the Cadbury business became a partnership. This is because John Cadbury took his brother, which also made it a family business. The business was now known as The Cadbury Brothers. A factory in Birmingham was rented, to produce their products. In 1854 the company received its first Royal Warrant as 'manufacturers of cocoa and chocolate to Queen Victoria '. In 1856 John Cadbury 's son Richard joined the company, followed

Rogers’ Chocolates is not using its core competency of strong retail sales ability and its distinctive competency of producing a wide variety of high-quality, hand-wrapped chocolates to attract a sufficient market niche of worldwide tourists and high-income, middle-aged couples that are mainly empty nested or child-free, so that they can maximize their market share and profit volumes in a rapidly growing market in which globalization, product innovation toward a more health-conscious product, and growing buyer preferences are major driving forces. Their tremendous ability in retail sales, in which their 11 stores accounted for 50% of total sales, and financial leverage have not been utilized to expand Rogers’ to profit

The move has paid off, boosting internet sales by 17.2pc in the same period. Mr Davies said: "During Easter, sales of our excellent chocolate and ice cream products performed well and the Group expects it full year performance to be in line with expectations."

The Economies of Scale in the chocolate industry is high due to the increase of output of existing chocolate companies that will lower the cost of the cacao production. New entrants in order to compete, they need to produce more in a lower cost possible compared to the actual industries. This may not only be the barriers to entry, but also companies such as Sharffen Berger’s or Godiva, they have a high number of customer loyalty due to their brand names, product quality and reputation that may require new entrant a larger capital investment in order to attract new customers.

Industry Analysis: Cadbury Schweppes (CS) is comprised of a global confectionery and beverage company. For the purpose of this case we will maintain our focus on the confectionery business and the assessment of adding to their sugar confectionery portfolio. CS is number three in the beverage business but see the opportunity to become the largest confectionery in the world. The categories are chocolates, sugar and chewing gum. At this time Adams is the number two sized in the gum business. This industry operates on “bigger is better in confectionery”. Their strategic discussions and ambitions appear to stay true, in mentality, to this mantra. This mantra could be potentially dangerous to the business. CS had a presence in over 70

Britain really is a nation of chocolate lovers. Among the whole world, UK has the seventh highest consumption of chocolate. A British eats an average 17.49lbs of chocolate per year (The World Atlas of Chocolate, 2011). Switzerland takes the top spot. In Britain, an estimated 660,900 tones of chocolate are eaten per year which is an average of 11kg per person. The UK chocolate industry is worth £3.6billion and sales of chocolate just keep growing and growing. The chocolate industry is a fast growing industry in UK, and the competition among the main brands is getting more and fiercer. For the investors, it is important to know the market share and the share price information of a company. These

Cadbury Schweppes PLC has the distinction of being the world’s first soft drink maker. The company can trace its beginnings to 1783 in London, where Swiss national Jacob Schweppe first sold his artificial mineral water. Beginning in the 1880’s, Schweppes expanded worldwide, particularly in countries

The Hershey Company, known until April 2005 as the Hershey Foods Corporation and commonly called Hershey 's, is the largest chocolate manufacturer in North America. Its headquarters are in Hershey, Pennsylvania, which is also home to Hershey 's Chocolate World. It was founded by Milton S. Hershey in 1894 as the Hershey Chocolate Company, a subsidiary of his Lancaster Caramel Company. Hershey 's products are sold in about sixty countries worldwide. In addition, Hershey is a member of the World Cocoa Foundation. The company has been topped to 384, compared with the previous rank 404, in 2013 (CNN, 2013). This paper is going to show the company’s international environment,

One of the world's fourth biggest suppliers of chocolate and sugar confectionery is Cadbury, which merged with Schweppes in 1969. One of its products, which is Dairy Milk and it is very successful molded chocolate in UK. The main products of Cadbury are bars, drinks, ice-cream

Cadbury Dairy milk is in the mature stage of the product life cycle, the reason being is that it is a well-established product since 1905. The maturity point is generally reached when about half the potential users have adopted the product. Since Cadbury Dairy Milk is Australia’s favourite chocolate, it is safe to say that there is already consumer trust and loyalty to the brand. However customers still need continued satisfaction and loyalty, built on lower cost, differentiation or customer service. Seeing that Cadbury chocolate is considered a common brand name in households all over Australia, there is nothing within the external environment that should be modified and it will remain in a strong steady