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|SWOT and PEST analysis on Cadbury PLC |
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Miaozhen
Group : C
Registration NO: 090243079
Module :FC009
Tutor :LIULU
16/07/2010
Word account: 1560
Abstract
This report aims to answer the research questions that I have asked with analysis the
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|Cadbury’s transportation cost is increasing. |
|Cadbury’s soft drink is the leader in the market. |The increasing internal taxes are also a big problem. |
|They believe that innovation is very important. They produced |Cadbury’s competitor such as Nestle is still striving for |
|many new products in the past years. |market leadership.(case4) |
3.2 PEST Analysis
|Political |Economical |
|More and more people have awareness of food safety. |Cadbury launched a new chocolate bar when the world economic|
|Any changes in laws and regulations may have effect on Cadbury. |is relatively good. |
|Cadbury should always follow the laws. For example, they cannot |The market share of Cadbury in confectionery is growing. It |
|employ children or pay under minimum wage. |often sales well all around the world. |
|Social |Technological |
|More people prefer to eat healthy and cut down on soft drinks |High technology machines help Cadbury
Over the past few years there has been a significant increase in overweight and obesity which are the most health problems in the UK.There are many reasons for over weight and obesity, but one of the most important reasons is sugary drinks.Experts said that a tax on sugary drinks as a result of in April 2018, was supposedly to have a significant effect on health and obesity percentages (Radowitz, 2016).Therefore, new study suggests that sugar tax on soft drinks might reduce ten of thousands from becoming obese, however other people oppose this study.This essay will discuss both views and explore the pros and cons of sugar tax.المقدمة
The paper will begin with a Review of the Research. This section will summarize all the information gathered for this paper. Here the background will be given and the foundation laid for the rest of the report. Next will be the Application of the Research. This is
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.
If you take one look at an average adults daily sugar consumption that is encouraged by these companies, you will soon be raising your eyebrows too. 14.6 kilograms…. That’s how much sugar the average Australian soft drink lover is consuming every year from soft drinks alone, this is equivalent to indulging in three bags of potatoes, instead filled with pure sugar. This huge amount of sugar intake is leading to high rates of overweight and obesity which intern lead to type two diabetes, heart disease and cancers. But there’s a simple way to reduce sugary drink consumption and that’s by increasing the price through a 20 percent tax on sugar drinks. This would decrease the consumption of sugary drinks and also reduce the rates of overweight and obesity, therefor reducing the amount of Australians with type 2 diabetes, heart disease and
2. Kraft’s marketing strategy will benefit significantly from buying Cadbury in two different ways. Firstly, when we look at the brand portfolio of Kraft, which is the world’s second biggest food company. It is clear that there are plenty of old-timer cash cows, such as cheese, Nabisco and Suchard, but there are only very few rising stars. According to the Boston Matrix, cash cow means a product with a high share of a slow growth market, which can generate a stable
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.
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 Australia sugary drinks are not the root cause of obesity, contributing to a mere 1.8% of daily intake of kilojoules. For the obesity epidemic to reduce we need to target the issue, not a targeted product, reducing the sophisticated brainwashing sugary campaigns that children are exposed to from a very young age. Promoting education and the eye-opening, startling facts behind the sugar-coated products. You would never consume 16 packs of sugar yet we pour more coke in our glass, consume more sugar lollies and depend on sugar based products as our lifestyle. Where has our education and intelligence come into use? We need to encourage healthy lifestyle living primarily to young audiences to set up a strong foundation. Raising tax prices by 20% on one targeted product will not be enough, where is the knowledge! Milk based products, confectionery and cereals. Products that can have twice as much sugar, yet we categorise them as “healthy”, and not part of the tax gain. Overall, for an effective result, we need to accompany tax gain with education. To allow people to understand the consequences behind sugar and the dangerous attributes it holds. Together, this system can cause a much more efficient
Roehr’s article speaks about the how the average expenditure on obesity doubled in recent years due to significant increase in obesity rates across the United States. Between 1998 and 2006, obesity prevalence rose by 37% and the cost of expenditure related to obesity during this time period rose from $74 billion to $147 billion. This is because soda and sugary drinks have become relatively cheap over the years. Money is something that is on everyone’s mind, especially in this tough economy. Cheap drinks lead to an increase in sales and subsequently an increase rate of obesity in a matter of several years. Dr. Frieden, the director the Centers for Diseases Control and Prevention, says, “[p]rice is an important factor in shaping people’s diet.” He recommends having a substantial tax on soda drinks, 1 cent per liquid ounce, would be the only and most effective method of combating the obesity epidemic. Also this type of tax will help generate $100 to $200 billion over the course of the next ten
One important underlying driver of change in the chocolate industry is the large manufacturers lobbying to change the definition of the term "chocolate" under USFDA guidelines, if they are successful in doing this then this could potentially have a dramatic impact on the competitive environment, with lots of cheaper products
Introducing a new product to the market is a very risky operation. Not only is it risky but it takes time, effort and money. In order for a product to be successful, it had to fully undergo the product life cycle. Kellogg’s has an advantage when it comes to the breakfast market as it holds the biggest market share. After providing the British public with breakfast for years, it most certainly has a larger customer loyalty base. The strong brand makes it easy for product launching as the public are already familiar with the brand. However, introducing a new product comes with its challenges and risks. Looking at the ratios, Kellogg’s has a current ratio to date of 1:1.1 . This in financial terms rings alarm bells as it shows that the company will struggle to pay its short term obligations. Kellogg’s however can operate on a low current test ratio as it has a good long term revenues coming into the business. This means that it is possible to borrow on this basis to meet its current obligation. After calculating the net present value, which gave a positive NPV of £38450million, I move that we go ahead with the introduction of a new product. In traducing a new product is a sign of innovation and growth on the part of the competitors. In order for a new product to be introduced to the market, Kellogg’s will have to spend money on the actual product, the marketing side of
Recommendations: Although Adams has clear benefits should the acquisition go through and the Adams strengths would seemingly be a perfect fit for Cadbury Schweppes. I do not assess Cadbury, at this time to be in an ideal situation to acquire Adams. As well, Adams may not prove as lucrative an acquisition that it appears to be. The pros to the Adams acquisition are that CS would more than double its share of the global sugar confectionery market making it the largest sugar confectionery. The key effect would be that CS would then contest Wrigley’s global dominance. Moreover, the acquisition would allow Cadbury Schweppes to go to the front of the grid in the confectionery market. The acquisition would appear to be valuable to Cadbury Schweppes as Adams had higher sales than it in a number of important regions such as Latin America.
Another factor is the nation becoming more health conscious. There have been recent concerns in the press regarding the increase of type two diabetes and its link to excess sugar in our diets. This as well as the obesity rate showing no sign of declining has increased consumer awareness and is affecting the decisions that are made in respect to the foods they are purchasing. People will not just buy anything that is on offer but will look for healthier
In Britain there are 17 Cadbury and Schweppes sites. Ownership Cadbury is a public limited company. It has the opportunity to become larger than the other forms of private business organisation.
As we all know competition encourages growth and it was part of the things that contributed to the growth of the Company. There are two companies that were, and still major competitors to Associated British Foods PLC. The companies are as follows: Nestle S.A. and TESCO PLC. Nestle S.A. is a swiss multinational and packaged food company that manufactures and markets a wide range of food products. The Company's products include milk, chocolate, bottled water, coffee,