Business Plan for Cadbury: SWOT, PESTEL and Porter's Five Forces Analysis

This business plan for Cadbury includes an introduction to business plans, the company's background, mission statement, and cultural values. It also covers SWOT, PESTEL, and Porter's Five Forces analysis, marketing strategy and plan, analysis of limiting and allowing factors, budget, and conclusion. The plan focuses on introducing a new product, Cadbury Dairy Milk chocolate with mint flavor, and attractive offers to delight customers worldwide.

Table of Contents
1.0Introduction..........................................................................................................................3
2.0 Executive Summary..............................................................................................................4
3.0 Mission, Vision, and Culture of Cadbury..............................................................................4
4.0 Cadbury company description.............................................................................................6
5.0 Opportunity analyses and research.....................................................................................7
5.1 PESTEL analysis.................................................................................................................7
5.2 SWOT analysis..................................................................................................................9
5.3 Porter's five forces analysis............................................................................................11
6.0 Marketing Strategy and Plan.............................................................................................14
6.1 Segmentation.................................................................................................................14
6.1.1 STP: .........................................................................................................................14
6.2.2 SWOT analysis: .......................................................................................................14
6.2 Marketing mix................................................................................................................15
7.0 Analysis of limiting and allowing factors for the business venture...................................16
8.0 Measure and success.........................................................................................................17
9.0 Budget................................................................................................................................17
Conclusion................................................................................................................................18
Refences...................................................................................................................................19

1.0 Introduction

A business plan defines as the written document for the business that signifies the goals
and objectives, together with its plans for accomplishing them. It highlights an
organisation's market plan and research, fiscal projections, business mission and vision,
and purpose. Figure 1 illustrates the elements of the business plan. The main employees
accountable for realising the objectives may also be covered in the business, together
with a timeline. This business roadmap supports the future and avoids bumps in the
journey (Xu, 2020). The time invested in making the business plan correct and
exhaustive and regularly updated is an investment that offers significant benefits in the
long term. That business plan will be created for the Cadbury Organization, a global
confectionery brand. The company trades in more than fifty nations throughout the world.
The most popular company products are Cadbury Dairy Milk chocolate, the Creme Egg,
and Roses selection box. In the following report, various frameworks will be applied,
such as SWOT, PESTLE, and Porter's five forces to make a strategic plan. It will also
outline the company's background, mission statement, financial planning, risk analysis,
operation timeline, and executive summary.
Figure 1 Elements of business plan. Source: (StartupGuys, 2020)
2.0 Executive Summary

A business plan is a plan that helps business to realise their goals and objectives by
analysing distinct aspects and areas. It helps in attaining business productivity and
efficiency. This plan was created for Cadbury to enhance their product line and
attract its customers in the market. Figure 2 shown photo of the product.
Figure 2: Product of Cadbury. Source: Google
3.0 Mission, Vision, and Culture of Cadbury
Cadbury has the insight to develop a brand like none other and set high quality and
diverse product lines which gain competitive benefits. The mission is to realise great
taste and exciting flavor in chocolates.
Objectives: To provide a new product category with different tastes and flavors.
Figure 3: Vision and Mission statement of Cadbury. Source: Author
Cadbury has 186 years of history as a family business and a substantial cultural value.

The organizational culture of Cadbury is based on the Quaker's beliefs and principles of
human equality and justice. The most significant characteristics of Cadbury culture for
this period are accessible communication and relationship between managers and
directors of the company and employees (Brown, 2014). Another essential cultural value
is caring for employees and their well-been and building a unified community where
people will care for each other. Following the Quaker's beliefs, in 1879, George Cadbury
moved the factory from Birmingham to Bournville and built the village around the factory
for his employees and their families. The next generation becomes focused on the
profitability and efficiency of the business but keeps employee satisfaction in the first
place (Brown, 2014).
In 2010 Cadbury became part of the US company Kraft, which has a hugely different
organisational culture than Cadbury. Cadbury’s unique culture follows Quaker beliefs,
which advance the concept of a humane, tolerant, charitable, and responsible employer.
On the other hand, Kraft has a hierarchical structure that expressly differentiates the
duties of the employee and employer. Also, British people were proud of Cadbury
because the company was looking after the community and environment (Brown, 2014).
On another side, Kraft is focused on maximum profit. Kraft faces a lot of difficulties while
implementing his organisational culture. The structure of the company becomes more
bureaucratic, which leads to difficulties or lack of communication between employees
and top management of the company. Nowadays, original values and beliefs still live in
Cadbury, and people relationships stay an essential part of the firm and its community.
The unique culture at Cadbury is what makes British people proud (Brown, 2014).

4.0 Cadbury company description.
Cadbury is a multinational confectionery subsidiary British company. The company
was founded in 1824 by John Cadbury in Birmingham. Since 2010, this organisation
has been wholly owned by Mondelez International. After Mars, this brand stands in
the second position globally, figure 4 shown graphic of confectionery market. The
company has worldwide business operations in over fifty countries. It has a
significant product portfolio, including several types of chocolate such as “Dairy Milk,
Five Stars, Bournville”, and much more. It has taken over high growth in past years
due to its high-quality goods and services and improved customer satisfaction. The
selected product is Cadbury Dairy Milk to create a business plan.
This chocolate was introduced in 1905 (Frolova et al., 2021). It exploits a higher milk
quotient than other leading confectionery brands within the recipe. That leads to also
has higher sales in comparison with other product lines. In the following business
plan, the innovation is put into the product by adding new flavor and new packaging
and attractive offers. The new product will, the mint flavor will be added to the Dairy
Milk chocolate to delight customers worldwide. The product packaging will have
classic packaging but with some green to represent the new and innovative idea.
Moreover, it will also have various offers such as gifts with those products so that
customers will intend to buy those products from Cadbury.
Figure 4: Confectionery market. Source: (Thesismind, 2019)

5.0 Opportunity analyses and research.
5.1 PESTEL analysis.
PESTLE analysis is a strategical framework that works for the organisation to make
strategic decisions and choices for the business. Figure 5 present graphic of
PESTEL analysis.
Figure 5. PESTEL analysis structure. Source: (Greyling, 2020)
This framework helps analyse different macro-environmental factors that influence
business for a longer period, together with its productivity. It comprises the factors
such as political, economic, social, technological, environmental, along with legal
factors (Ibrahim et al., 2021). Assessing all those factors supports business
organisations in benchmarking their position in the potential marketplace. In addition
to Cadbury, the impact of all those factors is discussed below.
 Political factors: These are the factors in which the influences are identified
based on changes in political conditions, government interference, fluctuation
in tax rates and many more. In context to Cadbury, the political condition of
the UK market is stable, which helps in grabbing more growth opportunities
for the business. Although, Brexit has affected the regular operations of the
business as it negatively impacts the trade and commenced activities. UK's
tax rates also resulted in increasing product prices and local business sales.
 Economic conditions: It covers the influences such as GDP rates, exchange
rates, inflation rates, interest rates, consumer spending power and so forth. In
the UK, it is found that the labor cost in that market is competitively high,

influencing high product prices. Additionally, if the inflation rates in a specific
market are high, the consumer spending power will below purchase the
products.
 Social factors: It includes influences such as changing tastes and
preferences of customers, religions, values, castes, beliefs, ethnic and
religious changes and so on. In Cadbury's context, it is observed that
consumers' tastes and preferences are changing towards the intake of sugary
products and items as they affect their health negatively. They are becoming
more health-conscious and severe about their health, and thus, they avoid
chocolates or any sugar-containing items in their meals.
 Technology factors: This factor includes the influences of new and
advanced technology, research, and development activities, and many more,
which could help businesses stay ahead in the competition and serve
customers effectively. In addition to Cadbury, they continuously exploit the
latest technology to offer their customers high-quality and safe goods and
services. Also, they use social media channels to directly communicate with
their customers to know about their needs and requirements. The exploitation
of AI in business supports advancing brand value among customers.
 Legal factors: This involves the influences of laws and legislation imposed by
the local government of the country in which the business is operating. It
covers several laws such as anti-discrimination laws, minimum wages, health,
and safety laws and much more (Gimeno Vidal, 2018). Cadbury needs to
follow such laws to avoid lawsuits, cases, fines, or penalties and avoid the
creation of a negative image in public.
 Environments factors are crucial due to the rising scarcity of raw materials,
carbon footprint targets, doing business sustainably and ethically and much
more. In addition to Cadbury, the company has a huge opportunity to work
toward limiting the CO2 expelled through its business operations and to plan
its sustainability activities to attain its international targets on time. They also
must take into consideration the recycling as well as waste management
techniques in their business.

5.2 SWOT analysis.
SWOT analysis is the framework that helps examine the strengths, weaknesses,
opportunities, and threats of an organisation. Figure 6 illustrate graphically SWOT
analyses.
Figure 6: SWOT analyses. Source: (McNutt & Partners, 2019)
It supports benchmarking its business, together with performance compared to
rivalries. In respect of Cadbury, the SWOT analysis is mentioned underneath.
Strengths:
 Strong brands and products: The respective organisation have different
strong brands such as Bournville, Five Star, Dairy Milk, Oreo, and many more
in its product portfolio. All such goods are of high quality, and some of them
are cash cows of Cadbury.
 World leader: This organisation is the leading player among all the chocolate
brands worldwide (TOMASSONI, 2019). It is ascertained to have the best
production and a massive distribution platform while having a global presence
in more than 160 countries.
 Positioning as a gift: The chosen organisation has a good range of chocolate
and gift boxes. Some chocolates are Cadbury celebrations, Cadbury dairy

milk, and Cadbury rich dry fruits for gifting purposes. The new Bournville also
concentrates entirely on the gifting role.
 Placement and distribution: Cadbury have a brilliant distribution strategy for
splitting the bulk, like FMCG businesses. Social media: The presence of Cadbury on social media platforms is
excellent. They have millions of followers on the three most vital platforms:
Instagram, Twitter, and Facebook.
Weaknesses:
 The weakness of Cadbury is its rural distribution.
 A few incidents have happened, and they depend on the commodity nature in
which some rodents and cockroaches were seen in the Cadbury's product.
Opportunities
 Cadbury has a significant opportunity to expand its business in rural areas as
it requires a rural presence that will be advanced the presence and brand
turnover.
 Customers have a sweet tooth and like to consume chocolate products or
chocolate bars in their after-meal thing. Different flavors can help attract new customers.
Threats:
 Competitive products and competitors' pricing strategies are significant
challenges to Cadbury (Bulatova, 2018).
 Health awareness is increasing day by day in the entire world, which
threatens that people will be more likely to consume healthy juices or drinks in
their meals.
It is justified that Cadbury should continuously expand their business by introducing
different products and services worldwide. The innovative idea of introducing
Cadbury Dairy Milk chocolate with mint flavor is new in the market and will grab the
attention of consumers. Also, consumers always crave something new as they tend
to get bored with regular items. By analysing all the above aspects, as Cadbury has

a robust distribution system, they can deliver this new item quickly and conveniently
in the world.
5.3 Porter's five forces analysis.
Porter's five forces can be understood as the model that identifies and examines five
competitive forces that form every sector and supports ascertaining an industry's
weaknesses and strengths. This model is exploited to identify the structure of an
industry to know regulate the business strategy. Figure 7 illustrate graphically
Porter's five forces analysis
Figure 7: Porter's five forces analysis. Source: (Globartis Blog, 2020)
Hence, it helps in examining the competitive environment of the confectionery
industry. In Cadbury's context, all the five forces are discussed below to know the
level of impact on the brand.
 Entry of competitors: For the Cadbury brand, it is found that the entry of
new companies will be challenging because of the already established
players in the market. These companies are Mars, Kraft, Nestle, Hershey's,
and Lindt. These organisations influence the competitive market with their

certain kinds of chocolates. The chosen organisation has the power to draw
and influence the consumers through advanced attractive prices, substitutes
as well as marketing techniques (Patnaik, Loret de Mola and Bates, 2021).
Therefore, this competitive force will have less impact on Cadbury.
 The threat of substitutes: Supermarket own brands are the biggest threat to
Cadbury and other confectionery brands in the industry. These supermarkets
tend to twin famous chocolate brands, for example, KitKat and Nestle and
offer their brand on the shelves at a lower price. Therefore, it can be said that
the impact of the threat of substitution will be high as it can lower the benefits
and opportunities in the sector.
 Bargaining power of buyers: In context to Cadbury, they have a huge
customer base all around the universe, and they are in billions. The
progressing number of competitors that provide a similar product range at a
reduced price might cause customer loyalty alteration. Hence, the chosen
company must be highly pre-cautious in determining costs and keeping the
consumers satisfied and happy. Therefore, the bargaining power of
customers can be determined as high to moderate.
 Bargaining power of suppliers: It is observed that the respective
organisation is maintaining healthy and sound relationships with its vendors
and suppliers throughout the world (Yahaya, 2020). It has huge bargaining
power. The vendors of agricultural materials provide products far from
incomparable, and hence, the company has higher bargaining power than its
vendors. Although there is a present competition, raw ingredients such as
milk, nuts, or specific ingredients are enough to fulfil their production. It has
high power over its vendors or suppliers because, in the UK, there are so
many firms offering them as per their needs, so Cadbury can exploit the
economies of scale and purchase raw products for lower prices in bulk
quantity. Rivalry among the existing players: Many business firms compete against
the brand and plan to dominate the organisation for many years. Leading
confectionery brands continuously develop their goods and innovate
perceptions to make competing even tougher. These competitors are

Hershey's Nestle, Ferrero and many more because they are long established
in the market and commonly to Cadbury, they are focused on creating new
goods. It has a high impact on the competitive environment of Cadbury.

From the above graph, it can be said that UK' chocolate segment market is
one of the leading line or sector. This can be categorized to the flourishing popularity
of chocolates and growing expenditure of customers to fulfill their palates as all kinds
of age group people eat chocolates right after their meals. Hence, it is analyzed that
UK market is great to spread business with new launch of product.
Illustration 1: Global Confectionery Market Outlook
Illustration 2: Business statistics, 2020

6.0 Marketing Strategy and Plan
Good planning is essential in all aspects of the business. To achieve the business
objective company needs a marketing plan. It helps to analyse the market by
separating and targeting it. The next step after that is the modelling of the marketing
mix, that lead to successful achieving of business goals (growwleaf, 2020).
6.1 Segmentation.
6.1.1 STP: Segmentation: Cadbury mainly targets their customers based on
demographic and behavioral factors. Targeting: the organisation concentrates on customers according to their age
group and targets every person (Lin, 2018).
 Positioning: Cadbury exploits advertising and social media marketing to
position itself in the market.
6.2.2 SWOT analysis:
Table1: Swot analysis Source: Author

6.2 Marketing mix.
The marketing mix is a significant factor for every business. Jerome McCarthy first
set up the concept for the marketing mix. To be successful the product in the market
and realize the business goals, the marketing team uses a marketing mix analyses.
The marketing mix is to find the right combination of the 4 elements (Product, Place,
Price and Promotion).
Figure 8: Marketing mix. Source: (growwleaf, 2020)
Table2: Marketing mix analysis Source: Autor

7.0 Analysis of limiting and allowing factors for the
business venture.
In addition to Cadbury, it is essential to decide what is worth embracing, though it
can be complex or complicated. As the company is expanding their product line with
a new opportunity, it is essential to identify how to evaluate it suitably. The following
are some factors that need to be considered when deciding whether the business
prospect is acceptable or not:
 Market size One of the determining factors when exploring a business
prospect is the size of the market. Cadbury needs to conduct a little market
research to figure out its opportunities (Janíček, 2018). Before moving ahead,
it is essential to be sure about the demand exists in the market. There is no
need to appeal to a big market, but it supports if the company comprehends
the market. Knowing how to engage the market and how expected they are to
pay for what is being vented can aid.
 Ability to manage cash flow: It is also a limiting or enabling factor to
evaluate business opportunities. It is considered with the sources of funding
or finances for the businesses to expand their business or product line. It is
figuring out how the cash flow will be handled and taking an insight into the
business plan. Cadbury is needed to ensure that the business will probably
sustain itself after a particular period.
 Relationships: Business opportunity is also coming up with some essential
relationships with customers, vendors, or investors. Maintaining a healthy
relationship with these aspects can help in leveraging the opportunity. For
example, if Cadbury has a strong relationship with their potential customers or
investors will help in grabbing the opportunity and taking that business
forward. Management skillsets: When evaluating a business opportunity, it must be
honest about what is brought to the table or what is required to make up for.
When overviewing a business opportunity or expanding business
management, it is essential to plan or strategies the business. There is a
need for competence to make the opportunity successful.

8.0 Measure and success
The formulated objectives and goals will be measured by a balanced scorecard and
KPI indicators. The respective organisation will run a marketing campaign to satisfy
its objectives, through which potential customers will increase by 30% in 2023
(Deligeorgiou, 2018). Also, more employees will be recruited, which will offer new
and fresh ideas to capture the potential market.
9.0 Budget
Budget is essential in financial planning, which simplifies the company with its
financial resources for the production and marketing activities in the business. The
financial department prepares a budget to support the organisation in allocating its
funds into different business sections and utilising a cost-effective method (Khan,
2020).
Cadbury Plc.
Marketing Budget for 3
Years:-
Year 1 Year 2 Year3 TOTA
L
Budget
Initial Money £29,500 £36,875 £44,250 110,62
5
Investment Made £2,000,000 £2,554,000 £1,679,875 6,233,
875
1,000,000
1,000,
000
TOTAL RECEIPTS 2,029,500 3,590,875 1,724,125
7,344,
500
PAYMENTS
Promotion 300,000 376,000 118,750 794,75
0
Sales and marketing 30,000 30,000 30,000 90,000

Direct Selling 37,000 37,000 37,000
111,00
0
0
TOTAL PAYMENTS 367,000 443,000 185,750
995,75
0
Net Balance Available 1,662,500 3,147,875 1,538,375
6,348,
750
Conclusion
It has been concluded that a business plan signifies the business objectives and
goals with relevant strategies and plans for realising them. This business plan covers
several aspects such as market research, market plan, financial projections,
executive summary, an overview of the company and many more. In this report,
Cadbury is considered to introduce new and creative products in their current
product portfolio. Opportunities are identified in the report to know whether the plan
will work for the company or not. For the examination of the external environment,
pestle analysis is used. To analyse the industry forces, Porter's five forces are
exploited that are covered with five forces that influence the company. Some limiting
or enabling factors can affect the opportunity of business. Marketing, financial or
production plans or strategies are some essential considerations in the business
plan.

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