BTEC L3 Business Diploma: Cadbury Financial Analysis & Communication

This report provides a financial analysis of Cadbury, examining its sales data and market share, particularly focusing on the Easter egg market and the impact of recipe changes on products like Creme Eggs. It references a report by IRI for The Grocer, highlighting sales declines and market share reduction. The report also touches upon the controversy surrounding Kraft's takeover of Cadbury and the subsequent factory closure. Furthermore, it likely delves into various aspects of business communication, including internal and external communication methods, legal and ethical considerations, and operational issues related to information usage, fulfilling the requirements for a BTEC Level 3 Diploma in Business (QCF) Unit 4 assessment.

CADBURY
A new report shows that Cadbury is gearing up for a spring
offensive as cracks have begun to appear in its dominance of
the Easter egg market in the UK. Research by analysts IRI for
trade magazine The Grocer found that the brand's best-
selling Easter lines lost more than £10 million in sales last
year, narrowing its market share from 42per cent to 40per
cent. The report says that the Creme Egg was the biggest
loser after US owner Mondelez sparked a storm of protest
across Britain by replacing the Dairy Milk in its recipe with
cheaper chocolate. Filled and shell Creme Eggs lost more than
£6 million, said the study. However, Mondelez insists that the
recipe change did not have an impact. Marketing manager
Claire Low told The Grocer: "The fundamentals of Cadbury
Creme Egg remain exactly the same. It's simply not the case
that Creme Egg has always been made with Cadbury Dairy
Milk." • Why the new Creme Egg is not all it's cracked up to
be • Six ways Cadbury has been trashed But the report says
that Creme Egg was not the only casualty. Sales of Cadbury
Egg 'n' Spoon, launched in 2012, crashed by £1.2 million as
average prices fell by nearly a fifth, partly as a result of fiercer
deals and strong growth for own label and the discounters.
Total sales are down from £500million in 2006 to
£300million in 2010/11. Thorntons – the No1 brand for
boxed chocolates – have seen year-on-year sales plunge
11.6 per cent, down from £11.6million to £10.2million.
But Cadbury have suffered the biggest drop for Roses.
Sales are down by 23.7 per cent from £8.5million to
£6.5million, according to a study by market research firm
Nielsen. Sales of other famous names in the market –
such as Terry’s Chocolate Orange, Cadbury Heroes and
Dairy Box – have also been hit. However, posh brands
such as Lindt Lindor have seen sales rise.
Back in 2010, Kraft’s £11.5 billion hostile takeover of
Cadbury sparked controversy. But some were won over
by the American company’s “sincere belief” it would
reverse a decision by Cadbury to close a key factory at
Somerdale, near Bristol. Within weeks of the takeover
going through, Kraft announced it was going to close the
factory. Four hundred jobs were lost.
Financial information and sales data of organisation