Distribution Segmentation And Distribution Segmentation Of Cadbury

The Cadbury product loses 3.5 percent of annual sales of Rs. 8.8 billion damages from

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.

“The Hershey Company” was founded by Milton Hershey in 1909. In 1894 they decided to produce a sweet chocolate as a coating for his caramels. The company was originally located in Lancaster Pennsylvania. The company is now headquartered in Hershey, Pennsylvania and is a global confectionary leader. They are known for their chocolate, sweets, mints and other snacks.

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.

In Canada, premium chocolates were growing at 20 percent annually and the Canadian market size for Chocolates was US$ 167 million in 2006. An attractive growth from premium chocolates makes the current player like Rogers Chocolates, Purdys and others are thinking new strategies to expand market. In addition, some big traditional manufacturers like Hersheys and Cadbury are also very interested and keen to enter this segment (Zietsma 2007).

In 1894, when the chocolate was first created it was being made as a coating for caramel. In 1900 the company began producing milk chocolate in bars, wafers and other shapes. Milton Hershey made a luxury item into something that everyone can afford. An early advertising slogan described this product as “ a palatable confection and a most nourishing food”

It 's a complicated business. Cadbury is a large business it has many different departments for different jobs, all these departments have to work together. Information passes between departments can be confusing.

The Hershey’s company came into being in the year 1894 by Milton Hershey when he decided that he wanted to coat his caramel with chocolate. Situated in Lancaster, Pennsylvania, the new corporation was labeled as The Hershey Chocolate Company. The company started producing all sorts of chocolates in 1900. By manufacturing in masses, Hershey’s successfully decreased the per-unit cost of milk chocolate, and milk chocolate one being a luxury, became so cheap that everyone could afford it and enjoy it.

Eventually, the globalization of cocoa beans brought an idea to the minds of two young men in the 1800s. According to an article “The Creation of a Company Culture: Cadburys” by Charles Dellheim, the start of Cadbury wasn’t even chocolate. Instead, John Cadbury, the founder of the company, traded tea and coffee in Birmingham which later grew to become a factory process. However, when his sons George and Richard Cadbury took over, the company was already dwindling and on the verge of collapse when they ingeniously changed the product from tea and coffee to cocoa and chocolate. They also changed the process of cocoa making and utilized the Dutch process to make the chocolate taste better and it resulted in a much higher quality chocolate (Dellheim, 17). Even from the very start, the Cadbury company might not have succeeded without globalization, as it was the Dutch process of chocolate-making that allowed the British firm to really take off in the mid-19th century, with its signature Dairy Milk bar released in 1905. The family-run business gradually expanded over the years throughout England and then built its first overseas factory in Australia in 1919. This was during the modern period when other brand names such as Coca-Cola, Remington, and Campbell started making themselves known on the global market

The Hershey Company, was started by an entrepreneur by the name of Milton S. Hershey. After many failed attempts, in 1894 Milton Hershey, started the Hershey Chocolate Company which produced sweet chocolate and cocoa for the flavoring and coating of Hershey’s own caramels. While his new company was selling more than a hundred different items made of sweet chocolate, Hershey wanted to perfect a formula for producing milk chocolate. Once done, Milton Hershey would become the first American to develop a formula for manufacturing milk chocolate. After 121 years on the market, the Hershey Company continue to make changes. A business that was once known only for their chocolate bars, now has become a global sweet icon. With treats that include not

To create a large customer base promotional strategies need to be effective. Apart from what Haigh’s is doing now as their promotional tool they can also give free chocolate offers like one box of chocolate free with two boxes. The company can hire people to distribute free samples across different malls, cafes, restaurants, schools and universities so that people who have not tasted Haigh’s till now can have a taste of this chocolate and it is in some way creating awareness in the minds of people about the chocolate. Moreover the fact that they are actively participating in sustainability projects like helping to reduce the extinction of Kiwi, Bibly, Giant Panda etc and also packaging of the chocolates are done in an environmentally friendly way can be promoted as well to the customers to achieve their attraction. Haigh’s employees can use surveys and interviews to know the perspective of people about the chocolate and based on those opinions they can amend. Moreover the location that they are using to sell the chocolates should be easily accessible and can incorporate ‘kiosk marketing’ in the stores to avoid queues and service time will be reduced. Fast service in the stores can make the customers happy. Moreover they should continue their sustainability aspects so as to keep the environment

The marketing strategy of Haigh’s chocolate has been identified through detailed analysis of the external and the internal environment of the present market conditions and development of the Haigh’s. There has been complete detailed SWOT analysis of the company on the basis of research conducted from several secondary sources. It has been conducted in order to determine the important strategies and the key strengths of the company. Talking about the chocolate sector which has been further segmented into several categories in which Haigh holds the important position and have captures the major chunk of the market. Such markets range from chocolate blocks, bars and other diet varieties like gluten and eggless products. The demand in the chocolate market is also divided on the basis of the geographic location markets like that in Sydney, Melbourne and Adelaide chocolate markets. Other factors affecting demand in the market includes demographic, behavioural and psychographic segmentation.

Cadbury is the third biggest employer in dunedin at at the busiest times of the year has approximately 550 workers with 200 being seasonal. These house holds rely on cadburys for their income so they can go about their life which will include buy groceries which every once in a while will include a block of cadburys chocolate.

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

Segmentation is important in consumer analysis because understanding the consumer will allow us segment the market more meaningfully. To get a product or service to the right person or company, a marketer would firstly segment the market, then target a single segment or series of segments, and finally position within the segment(s). Market segmentation is the basis for customer orientation and differentiation