marketting mix on coca cola

The bargaining power of suppliers is not very high because cocoa is produced all over the world, such as in Brazil, Indonesia, the Ivory Coast and Ghana. Therefore, confectionery companies can choose to go with other cocoa suppliers all around the world. The rivalry

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.

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.

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 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.

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.

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.

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.

The possibilities for product differentiation are numerous in that there are many different ways to make chocolate, many different items to add to chocolate, and many different ways to use chocolate. Having so many different options to market chocolate could present an open door for competitors, creating their own niche to draw customers. A large number of products to choose from could also make it difficult for Roger’s to draw customers to its own products, decreasing their profit potentials.

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

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

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 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

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 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