Cadbury Swot Analysis

The premium chocolate industry is a large market in the United States and continues to grow around 10% annually. It is also populated with very strong

Hershey’s and Cadburys are moving towards the premium chocolate market through the acquisition or upmarket launches (Zietsma, 2007). The profit potential present in this sector supported by its 20% annual growth rate make it very attractive for large organizations to come forward and avail this opportunity. There is a low threat of new entrants prevailing in this chocolate industry because of the high capital requirements and expected retaliation by current manufacturers. Current players in the industry also possess some barriers to entry for new entrants by maintaining economies of scales with their large production capacity and keeping their product differentiation with their specialized and novelty chocolate products. Even though there are low switching costs and easy access to distribution channels, but still the brand loyalty of the customers including the Rogers’ Chocolate itself make it harder for new firms to come into the competition.

Children are targeted in these ads they try to draw their attention by making the ads fun, and by using cool phrases. Moss proposes and “He explained how he would deploy strategic storytelling in the ad campaign for his snack, using a key phrase that had been developed with much calculations:” Eat’ Em Like Junk Food’ (494).This proves that ads plays a role in promoting food that are unhealthy and is putting children 's health at risk for obesity. To sum it up, children are exposed to high amount of unhealthy food advertisements which affects young children health and food choices. Therefore, the government needs to intervene and stopping the advertisement of unhealthy eating and start advertising healthier foods.

Introduction According to statistical data, Australia is currently more obese than America. Obesity in Australia over the past few years has been described as an ‘epidemic’ which is ‘frequently expanding’ (Ryan, 2009). Professor Jimmy Bell from the Imperial College in London who is an obesity specialist says that "Genetically, human beings haven't changed, but our environment and our access to cheap food has. We’re being bombarded every day by the food industry to consume more and more food and we are slowly losing the war against obesity.”

The main threat to Rogers’ chocolate is the competition. Not being able to keep up with the competition or current trends can lead to lost market share. With Godiva having superior packaging, distribution, and price points, and Bernard Callebaut having superior packaging and seasonal influence, Rogers’ Chocolate could be falling behind soon if they do not join the ranks. Rogers’ must find their niche in order to be able to compete not just locally, but globally.

The chocolate industry operates in an oligopoly market. An oligopoly is when a small number of firms dominate the market. While not a quite a monopoly, an oligopoly market is still controlled by a select number of companies and the market can be directly impacted by one or two major firms (Oligopoly Investopedia). Hershey’s has control of the largest market share, holding 44.4% (U.S Market Share). Mars Incorporated follows behind in second by holding 28.9%. While these two companies hold much of the control and power within the industry, LIndt/Ghirardelli and Nestlé maintain a combined share of 15.1% of the industry’s market. This means that four companies hold a combined 88.4% of the market, with two of them holding a combined 73.3%. The market was not always this way however. Up through the 1960s many candy suppliers were regional.

Association, kids often do make food choices based on what they see on television. Doctors who study kids have noticed that food advertised is very powerful” (39). In order to prove that idea, the author adds that children and teens who watch more than two hours of television daily are more likely to be overweight than those who do not. Due to the many fast food restaurants and advertisements available to Americans, the realization that their food is unhealthy does not occur. The United States is aware of the consequences that come along with obesity, yet rarely ever are there advertisements promoting a healthy lifestyle. It is uncommon that an overweight person is shown eating a restaurant’s food in their commercial. It will give off the wrong

The confectionery industry was divided into four major product lines such as sugar confectionery, chocolates, cocoa-based products, and chewing gums. Most Canadian confectionary goods were produced in Ontario. There were four major multinational chocolate bar companies and Canada was one of them which means it was quite competitive. I am going to use PESTEL analysis of GBL’s situation.

In order to live a healthy lifestyle and reach 142 children must eat healthier. 16% of children and teenagers are overweight, which means they have a body mass index of 25 or more. Food advertisements have served as an effective tool of persuasion to sway children toward unhealthy foods that have contributed to the current epidemic attitudes

It was found that at each hour of TV watched by a 5-year-old child their chances of obesity would rise by 7%. Whilst studying 8000 children who had watched 8 or more hours per week, all age 3 it was found that by the time all those children were aged 7, every single one of them were at higher risk than average of obesity. (Pediatrics, 2011). Television on its own shows from 4400 to 7600 fast food commercials a day. Those statistics don’t include what is shown in magazine, billboards and so on. The number of health promoting adverts shown is 165 a day its no wonder today’s children are at higher risk. Speaking of which, the number of children under 5 effected worldwide by obesity found in 2013 was an astonishing 42 million. Its predicted that by 2025 this number will rise to a huge 70 million. (Bupa,2016) The media has fooled people the way never use overweight or unhealthy looking people In adverts, how often do we see obese people on our televisions? Especially when we are trying to be sold something. More often than not in movies fat people are portrayed as unattractive and unpopular and the laughing stock. Society seems to find it difficult to sympathise with obesity as a disease as many see it as self-inflicted issue. (Teaching tolerance, 2016). ) it was found that by 2006, obesity was responsible for 10 percent of media

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

“Dark, earthy, natural, intense.” These four words can be used to describe almost any aspect of Pana Chocolate’s range of raw, organic, handmade chocolate bars. The brand, founded in Melbourne, offers a range of chocolates available in the health food section at supermarkets that appeal to a range of consumers needs, being ethically produced, raw, organic, dairy, soy, egg and refined sugar free, vegan, and made from all natural ingredients (Pana Chocolate, 2017). Priced at $7.95 on their website (http://www.panachocolate.com), they are on the higher-end scale of the standard chocolate market, however the product oozes luxury throughout and lives up to it’s higher price point. This report will focus on the marketing implications of the packaging design choices made by Pana Chocolate in regards to this range of products.

About a third of children in the U.S. are considered overweight or obese, and researchers believe television advertising is a significant contributing factor (4). Exposure to television advertising is basically universal and the ads present foods as desirable and attractive. Children have been shown to be far more receptive to television advertising messages than classroom lessons (3). It leaves a harder lasting impression on them because the food products are presented in a cool, fun way that attracts children. Most of the time, children would pick foods that they may not even like, simply because they think it’s the cool thing to eat and once a kid gets his mind set on what they want, it is very hard to steer them away from wanting it. Television ads for foods geared toward children are usually fun, and bright with animations and lots of cool characters that the children can relate to. This directly influences the child’s food preference and unfortunately most of these ads are for processed, unhealthy food products like cereals, snacks, fast food, and soft drinks. In the U.S., there are few restrictions on food ads, but that's not the case in the U.K., where junk food can't be marketed on children's television (4).

Food advertisements, if focused at the right people and in the right places, are a complete success. These features, some of which are commercials, seduce society into buying food that we necessarily do not need. Many advertisement companies, especially those about food, are directed to children because they know that if you grab the kids you have their parents. While brands are using fun cartoons like “Trix Rabbit” and “Toucan Sam” (Green, 2007, p. 49) supermarkets are taking these items and placing them right in front of the children, at their level, advertising the “Fun foods” (Elliot, 2008, p. 259-273). They do this so the kids will use their, “pester power” (Scholsser, n.d., p. 2) to get what they want. A series of studies have been performed on children and television advertisements. An article states, “These studies have generally linked children's television viewing to negative health effects” (Korr, 2008, p. 451). Amongst these negative effects is a higher level of childhood obesity (p. 451). Similarly, in another study performed by a group of researchers, kids were asked to explain the television commercials that they remembered the best. The answers given were then compared with their diets. Interestingly, the items those children remembered best, chips, sweets, and sodas were a huge part of what they ate (Hitching & Moynihan, 1998, p. 511-517). However, some authors argue that television producer’s, even though their

This report will cover the background understanding about the confectionery industry and do an in-depth analysis of the micro and macro environment. In addition, the market segmentation, market positioning and target market that Whittaker’s is concerned with is also discussed.