Cadbury Company Challenges and Marketing Strategies

The assignment discusses the challenges faced by Cadbury Company in the UK market, including the impact of government regulations on sugar taxes, recession influence on profitability, threat from supermarkets selling copycat products, and competition from other chocolate manufacturers like Nestle, Ferrero, and Mars. The document also highlights the importance of marketing strategies for the company to overcome these challenges and maintain its position in the market.

MARKETING
INTRODUCTION
Marketing plays an important role on organisation. It
is a process by which company develop products and
services in-accordance to meet target market of the
company. In this report chosen organisation is Cadbury
where an examination is done on its competitors and micro-
environment. To analysis this situation two models will
apply that Porter's five and Pestle analysis.
Challenges which company faces by its
competitors
To examine Cadbury challenges which
they face by their competitors is examined by
Porter's five forced model.
Entry of competitors
Under this entry of new competitors is very
difficult because companies like nestle, mars,
Ferrero has already captured the market
significantly. They have their own dominant
position with their own particular types of
products. Because of this entry of new competitors
will be very difficult. To provide competition to
Cadbury organisation it will be very difficult
because company has power to attract customer
and to influence them by giving more attractive
substitute products, prices.
Threat of substitute
Main threat which Cadbury company face it
from supermarkets. They create product with doing
copy from Cadbury and provides to customers in very
cheap rate. This create hurdles for company because
customer get attracted to chocolates which is fair in
price. Another threat for Cadbury is to find location
which provide them smooth entry to operate their
business.
Bargaining power of buyers
Cadbury has large buying power as they have billions
of customers which use their products. Price is not the matter
for company but competitors which are providing same types
of product in lower cost may affect customer's loyalty in
company. Therefore, Cadbury is more careful in deciding their
products price which helps them sustain customer's loyalty.
Bargaining power of suppliers
Company has large supply of chain therefore,
they have high bargaining power rather from its
suppliers. Cadbury maintains positive relationship
with its supplier which maintains there sales volume
in market. As Cadbury has large business across the
nation for which they purchase raw material in bulk
in a cheaper rate from its suppliers. They need high
raw materials like nuts, milk, cocoa or special
ingredients which is more than sufficient to provide
its production.
Rivalry among the existing players
Main competitors of Cadbury are Nestle, Ferrero,
and Mars. They are generating effective products to
provide tough competition to Cadbury and these
companies are also even working hard to remove
Cadbury's supremacy in market which has been for several
years. They are providing tough competition to this
company because they also selling products from same
retails where Cadbury's products are selling which attract
customer to try their products.
These are the challenges which Cadbury company face
from their competitors in the market.
Challenges which Cadbury Company faces from Macro-
environmental factors
Under this study is doing regarding company's political, economic,
social, environmental and legal factors and their impact on
company's performance.
Political factors- government is now become more cautious
regarding people increasing obesity disease because of this they have
charge more tax on sugar which affect company's external factor. In
UK government has influences Cadbury's operation to prove labor
conservatives to peoples because of that company has employed
3000 workers in 8 factories. Imposition of tax is another factor for
company and this provides company's management in doing payment
to their stakeholders and to do investment in the market.
Economic factor- Company will able to generate 30% profit from
selling their premium product that Dairy milk and Trident. Company
also have to face recession influence by which they did not able to
generate effective profitability in the company.
Social factor- products of Cadbury is accepted by
worldwide therefore this company has become result
of social factor. Peoples socially accepted their
products but rising of obesity in western country
concerns most to this organisation.
Technological factor- Company has established
many technological factor in their companies such as
they have improved their packing of products and
also introduces new machines to blend coffee and
also establish new machine for cocoa gains.
Legal factor- people have now becomes more
nutritious regarding what they are eating therefore,
many rules and regulations have to establish by
company in their products such as labelling act, food
and safety act, etc.
Conclusion
From the above studied it can be concluded
that marketing plays an important role in analysing
company's challenges and external macro
environments which they faced during their market
operations. This present report will cover Cadbury's
challenges which company face from its competitors
REFERENCES
Scott and et,al., 2018. An analysis of the transformations of
leadership and direction-setting in place marketing: a UK
contextual view and case study. International Journal of Digital
Culture and Electronic Tourism. 2(3).pp.239-254.
Vargha, Z., 2018. Performing a strategy's world: How
redesigning customers made relationship banking
possible. Long Range Planning. 51(3).pp.480-494.
Online
Porter's five force model for Cadbury.2018. [ONLINE].
Available through<http://rawnakjahan.blogspot.com/>