Cadbury Executive Summary

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.

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.

Cadbury world could use secondary data effectively by drawing a comparison with other brands to find out how successful those brands are doing and to from there self-evaluate and adjust where necessary in order to improve.

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.

1. Based on your assessment of the soft drink industry, the orange-flavored category, and the competitive situation of Cadbury Beverages and orange Crush, what is your recommendation for positioning orange Crush? Be sure to base your recommendation on facts and issues raised in the case.

With the increasing trend in healthy diet preference, the underlying drivers of change of competition in premium chocolate industry at the strongest level are the buyers’ preferences for differentiated, refined products, instead of standardized ordinary products that are no longer demanded. In addition, baby boomers - generation with their disposable income are spending a lot on high quality premium chocolates.

The premium chocolate industry is changing dramatically with the growth rate in the chocolate industry falling as a whole, other traditional big name chocolate companies like Hershey’s and Cadburys are moving more towards the premium chocolate industry. The premium chocolate industry growing 20 percent annually and with the baby boomers purchasing more chocolate, they put are putting great emphasize on quality and brand when they purchase their chocolates. The underlying drivers of change are changes that companies go through in the industry and competition conditions. There are 14 total driving forces that drive industry change but Roger’s chocolates has 6 driving forces in particular that affect

The premium chocolate market has been growing at 20% annually, showing that buyers are willing to pay more for a better tasting and better quality chocolate. The declining growth of the overall chocolate market and rapid growth of the premium chocolate market is positive for current producers of premium chocolates in that the decline

Haigh’s is not found worldwide, which is a negative aspect of the chocolate as because many people would not know about this. On the other hand these chocolates are popular among the kids, aged people etc around the world. Moreover their promotions are global and is done in several ways, thus helping them to gain more market shares. There are also local brands of Australia like ‘Kennedy & Wilson’, ‘Zokoko’, ‘Bahen & Co’, which are cheap than Haigh’s and also provided guided tours to their factories like Haigh’s (Thomsen, 2015). All these competitors can be a threat to Haigh’s for which Haigh’s needs to take into consideration certain aspects. Haigh’s need to vary their price with more promotions but keeping in mind that their service remains

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

Analysis of the Cadbury Business 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.

Market volume for the confectionery industry is flat due to the changing trend in consumption driven by the changing age in distribution of the population. Growth is only driven by price increase at 10%. Distribution / availability and visibility are seen as important elements in influencing the sale due to the nature of its products, impulse items. In addition to this, the bargaining power of the retail trade has been shifting away from the suppliers (i.e. manufacturers like Adams) and is in favor of the

(Finical Times, 10 Feb2010) The challenges on the transaction was, firstly taking over a company that was not on sales and rejection to be made by shareholder as the Cadbury owner believed the chocolate company would be engrossed into Kraft’s low growth. Cadbury the chocolate producer was finally acquired for £11.4bn by Kraft US food company.

Whereas for the main Cadbury business,the product delivered is chocolate, candy,gum brands and drinking chocolateproducts.