marketting mix on coca cola

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 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.

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

Moreover, consumers and employees are also demanding chocolate companies to follow good corporate social responsibility practices in addressing the environmental concerns in terms of how to design its packaging, procurement and operational decisions. Human rights concerns are also high in terms of consumer expectations of chocolate companies with respect of forced child labour in West Africa. All of these driving forces - societal concerns, attitudes and change in lifestyles, are strong enough to shape up the competition and impose the constraint on chocolate industry profitability and competitive survival.

Porter’s Five Forces is a market-based view used to analyze the confectionery industry as a whole in a narrower context. The threat of potential new entrants is pretty low because entry barriers to the confectionery industry are pretty high and firms are not likely to enter due to many well-established brand names clustering and taking over the majority of the confectionery industry. The bargaining power of buyers is pretty good in general because there are a lot of different brands and types of chocolates and confectionery products for consumers to choose from. However, when looking at specific types of confectionery products, such as gluten-free or sugar-free products, buyers have no bargaining power whatsoever because these special types of products are not plentiful. The threat of substitute products is low because good substitutes for chocolate do not exist.

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

For over one hundred years, there has been only one company that has been on top of the candy industry in North America; Hershey. With over 14,000 employees, serving 70 countries worldwide and net sales of $6.6 billon, Hershey has come out on top. The Hershey company began in 1894 by Milton Hershey. The company has over 8 factories, but their main headquarters resides in Pennsylvania. The beloved Hershey milk chocolate bar has been a favorite by many, but would it still be if more people knew how it came to be that? One of chocolates main ingredients is cocoa. Cocoa, or cocoa beans come from tropical areas around the world, but is mostly found on the Ivory Coast in West Africa. Hershey, along with Mars and Nestle are the three major companies that buy their cocoa from West Africa, but with further investigation, it has been known that over 4,400 children work on those cocoa farms that they buy from.

We all encounter chocolate in our daily life, and whether we want to admit it or not, chocolate has been a major part of history, and it is still seen today.

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.

From the standpoint of the original Hershey milk chocolate bar, Milton Hershey is the original creator of developing an efficient chocolate manufacturing process during the late 1800s. Milton Hershey developed a method to produce chocolate that tasted delicious, could be created in bulk, and sold to consumers at competitively affordable price. This process begins with obtaining ingredients used to create a chocolate base. Though Hershey’s main factory is in Pennsylvania, the cacao bean is the main ingredient used that needs to be imported outside of the United States. The cacao beans from cacao trees only thrive in tropical climates. These trees grow in tropical rain forests of Brazil and Indonesia. Once the trees produce a significant amount of cacao beans, Hershey hires farmers to pick the cacao beans off of trees. When

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.

The service concept of Cadbury World is the form, function and overall purpose of the design and the benefits it will provide to meet the needs and expectations of the customers. By means of form, the overall shape of the service concept is the contemporary leisure experience to permanent exhibition devoted entirely to chocolate but also to have educational value and be guided by the spirit of the old tours. By means of function, the service concept operates in a way of servicing social responsibility and the desire to be a good neighbour. By means of purpose, the service concept is intended to satisfy the adults who fondly remember their childhood tours to Cadbury¡¦s factory visit, the requests from educational

Essay title: You work for Cadbury Schweppes in the confectionary division; you have been asked to look at the launch of their confectionary products in Poland. You have been requested to provide a 2000 word draft entry review, which outlines how you would go about taking an entrance strategy for approval. Identify the key areas you would like to research and investigate and justify them using marketing theory and practice, with appropriate references.

The Cherry Lady falls under the premium chocolate industry. Thus, the porter’s model can be utilized by The Cherry Lady as a framework to structure and analyze its industry. According to the Model, the premium chocolate industry can be impacted by five distinct forces such as rivalry among existing firms in the industry, threats from substitutes, bargaining power of buyers, threats of new entrants, and bargaining power of

The strategy for setting a product’s price often has to be changed when the product is part of a product mix. In this case, the firm looks for a set of prices that maximizes its profits on the total product mix. Pricing is difficult because the various products have related demand and costs and face different degrees of competition.