International Marketing Assessment 2: Cadbury's Global Market Analysis

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International Marketing
(Assessment 2)

TABLE OF CONTENTS
Introduction......................................................................................................................................4
Section 1..........................................................................................................................................2
Trends that can impact the growth and development of Cadbury can be seen with the
following factors:.........................................................................................................................2
Segmentation, Targeting and Positioning model of Cadbury......................................................2
PEST analysis of Cadbury...........................................................................................................3
Section 2..........................................................................................................................................4
Summary of Cadbury products and its success...........................................................................4
Threats and Challenges that may Cadbury face in the near future..............................................5
Section 3..........................................................................................................................................6
Recommendations on how to build sustainable competitive advantage in the future.................6
References......................................................................................................................................10

LIST OF TABLES
Table 1: SWOT analysis of Cadbury...............................................................................................6

LIST OF FIGURES
Figure 1: some of the Cadbury products available in box...............................................................4

Introduction
The report focuses on the analysis of global marketing opportunities for Cadbury so that it can
explore the new market to increase its sales, revenue, and customer base. Cadbury is a
multinational brand that has gained high success in the confectionery market with its passion and
commitment towards its quality and taste. The organisation has its operational areas in more than
50 countries and headquartered in West London. Cadbury is worldwide known for its Dairy Milk
chocolates, roses’ selection box, the crème egg, and other similar products.
The john Cadbury is the founder of the organisation Cadbury, who begins his business journey
by selling coffee, tea, and drinking chocolates. In 1854, the organisation got Royal Warrant from
Queen Victoria. Later, the development of Cadbury can be seen with the introduction of dairy
milk chocolates in 1905, which is its the best selling product.
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Section 1
Trends that can impact the growth and development of Cadbury can be seen with the following
factors:
Working around diets
Consumers are more health conscious nowadays, and therefore, they find new alternatives in the
chocolates to satisfy their craving needs. Hence, it is a big challenge for the Cadbury to fulfil the
chocolate and other confectionary needs of people, along with the consideration of a healthy life.
Cadbury can use sugar-free chocolates to attract diet conscious people across the globe.
Different flavours
Consumers are nowadays demanding bold flavours in confectionary products. In addition, they
expect new textures of chocolates. Hence, continuous innovation and different tastes and
flavours are essential to improve the competitive position of Cadbury in the market. In addition,
it focuses on gifting as a positioning strategy for different products (Priyanka Jethwa, 2017).
Eco-conscious consumers
These are the consumers that not only buy products from those organisations that offer high-
quality products but also focus on transparency and sustainability in the production and supply
process. The initiative of the organisation towards environment conservation is essential to cater
needs of a large number of customers.
Segmentation, Targeting and Positioning model of Cadbury
Cadbury has segmented its market on the basis of the demographic and behavioural approach.
On the basis of demographic segmentation, Cadbury offers its products in two categories, i.e.,
premium and basic products. Premium products include dairy milk glow, dairy milk silk, etc. that
targets the needs of high-income people while basic products are targeted to other people (Venter
et al., 2015). Also, on the basis of behavioural segmentation, Cadbury offers its products on the
basis of occasions, like, festival celebrations, dessert after dinner, etc.
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The target customers of Cadbury are not confined to a limitation; rather, it targets the people of
all ages to fulfil their craving needs on different occasions. The positioning strategy of Cadbury
is different for different products, with an aim to make the brand synonym as chocolate. For
example, dairy milk chocolate is positioned with a tagline “Meethe mein kuch ho jaye” while,
Cadbury silk is positioned by focusing on moments that are silk for the people.
PEST analysis of Cadbury
The political environment of UK is stringent in relation to the entry of efficient and skilled
workers from outside, and therefore, it affects the hiring decisions of Cadbury negatively. In
addition, the value added tax is increased that has resulted in increased prices of chocolates and
ultimately reduces the sales across the world. The economic conditions of the UK enable the
organisation to improve its annual sales; however, the recession in 2009 has highly affected its
sales. There are different chocolate needs of different people in the world, and therefore Cadbury
is required to produce its products to fulfil the demand of all Group of people (PEST analysis of
Cadbury, 2014). However, the negative impact of social factors can be seen with the increasing
health conscious behaviour of people that may impact Cadbury sales in the future. Technology
also plays a major role in increasing the revenue and sales of Cadbury as high technology
machines help the organisation in improving its production process that leads to a reduction in
the production cost.
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Section 2
Summary of Cadbury products and its success
Cadbury is a recognisable and leading brand in the chocolate. It was established on strong values
of social responsibility that can be still found in its production process. Earlier, the founder of
Cadbury, John Cadbury, started his business process with the use of manually grounded cocoa in
its products that led to the progress of the business. Cadbury deals in three kinds of confectionary
items, candy, gum, and chocolates with manpower of more than 50,000 (MUIGAI, 2013). The
Cadbury brand reaches to different target customers with the help of more than 30,000 suppliers
across the world. The product portfolio of Cadbury includes luxury and premium items, like,
Dairy milk, éclairs, etc., seasonal products, like, creme eggs, classic items like Wispa, old classic
items like flake dipped, and household items like milk chocolate buttons.
Figure 1: some of the Cadbury products available in box
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The success of Cadbury is highly based on its product lines like, Cadbury milk tray that
represents luxury, and quality in products. In addition, the advertisement and promotional
strategy of Cadbury has catered the attention of customers of more than one generation. This has
helped the organisation to make its products and brand recognisable across the globe (Davies,
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2016). Another reason for Cadbury success is its initiative of entering into another confectionary
market with gum and candy, which is considered as fastest and growing confectionary item in
the market. It has supported Cadbury in gaining revenue by around 29% from gums and candy.
Threats and Challenges that may Cadbury face in the near future
The major social factor in which people focuses on healthy living and healthy eating is the major
threat for the Cadbury as it may influence the buying decisions of many customers. In addition,
government policy for children in relation to nutrition and health promotes the sense of healthy
social being and eating among the global people (Daniel Ruyter, 2016). Chocolate consists of
high sugar, and therefore, health-conscious people may find other alternatives of Cadbury
chocolates that do not consist of a high amount of sugar. Hence, Cadbury is required to develop
an effective strategic plan to meet out such social challenges.
Following are the strategic marketing challenges that Cadbury may face in the confectionery
market:
Orientation for globalisation: Every business aspect is getting globalised to explore new growth
and development opportunities. Hence, globalised business operations of different organisation
lead to the emergence of different orientations, like, international finance, international human
resource management, etc. Hence, Cadbury may face challenges in coping with such new
orientations (Zalewska, 2014).
Cutthroat competition: The business world of Cadbury has become highly competitive, and
therefore, it cannot survive in the market without having an effective and robust competitive
strategy. Having effective strategic management is a big challenge for Cadbury that can bring its
intelligence, and predict the next move of its rivals for sustainable growth of Cadbury business.
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Section 3
Recommendations on how to build sustainable competitive advantage in the future.
From the above discussions, it can be identified that Cadbury needs to improve its current
strategic approach of marketing to reach millions of people across the globe. To gain a
competitive edge, Cadbury is required to understand different market segments and identify what
customers want from the Cadbury brand. In addition, understanding of strength and weakness is
essential to deliver the value propositions to the target customers.
Marketing plan
Goal and objectives of Cadbury: The organisational goal is to reach millions of people and make
them feel happy on different occasions with its varieties of chocolates and confectionary
products. Hence, to fulfil such goals, Cadbury is required to improve its present potential and
identify new strategic approaches that can support in enhancing its economies of scale
(Armstrong et al., 2014).
SWOT Analysis
Table 1: SWOT analysis of Cadbury
Strength
 It is one of the major leaders in
chocolates
 It has strong product portfolios
 High brand loyalty and value
 It has positioned its brand as a gift
 Amazing promotional strategies
Opportunities
 Presence of Cadbury brand in urban as
well as a rural market
 It can offer new tastes and textures
according to the demand
 It differentiates its products with sugar-
free chocolates
Weaknesses Threats
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 Distribution of products in most of the
rural areas
 Controversies in relation to the quality
of products
 Increasing taxes and fuel cost lead to
increased distribution cost.
 Rise of the health-conscious attitude of
people
 Reduction in the significance of
festivals.
Strategic options:
Cadbury can adopt strong and effective marketing strategies out of different alternatives, like,
diversifications, strategic alliance, and business expansion. Diversification can help the Cadbury
to offer a variety of products in terms of beverages, snacks, gums, and candy. The differentiation
focuses on a distinct quality that differentiates the brand of Cadbury from its rivals. For example,
it can add sugar-free chocolates to its product portfolio to cater to the needs of the health-
conscious Group in society (Chernev, 2015). Cadbury can also enter into Strategic alliances with
other global leaders of chocolates so that it can enhance its economies of scale and take
advantage of cost reduction. A strategic alliance can be in the form of a joint venture or a merger
with other leading and capable organisations in the confectionery market.
In addition, it is recommended that an organisation must consider environmental concerns and
ensure transparency in its business operations so that people across the globe can blindly rely on
the Cadbury brand. For example, Cadbury can take the initiative for environmental wildlife
conservation by modifying its present business practices into the eco-friendly approach. Besides,
Cadbury is recommended to consider social factors of health along with the taste and quality and
accordingly offer its products (Paliwoda and Thomas, 2013). For example, value addition in the
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chocolate products with the provision of nutritional values can enhance the brand image and
product recognition along with the quality in the global market.
According to the analysis, it is recommended that Cadbury should choose a differentiation
strategy to enhance its customer experience, tastes and product quality. In addition, it will help
the organisation in improving its present market positioning that ultimately leads to growth and
development in the long term.
Marketing strategy (STP):
Cadbury is required to segment its market place according to the needs and wants of customers
residing in different areas:
Geographic segmentation requires Cadbury to divide different locations and areas and provide
products accordingly. Demographic segmentation leads to the division of customers on the
basis of gender, age, income and lifestyle of people in different areas. The behavioural
segmentation focuses on knowledge, attitude, and use of the product for the customers, while
psychographic segmentation refers to the division of customers on the basis of personality, and
social class. Hence, such segmentation helps the Cadbury in identifying the expected level of
quality by the customers (Hannah et al., 2014).
The target customers for Cadbury can be those customers that are health conscious and require a
high value in the products. Such target customers must include people of all the ages, including
children so that they can fulfil their craving needs without sacrificing their nutritional values.
The positioning strategy of Cadbury can be used according to the different requirements of
customers (Foxall, 2014). For example, children like to get chocolates in gift shapes, while youth
and teenagers like to gifting chocolates. Hence, different needs must be fulfilled differently to
gain a competitive edge in the regional as well as global market.
Implementation
The marketing plan of Cadbury is prepared with an intention to execute all the activities in a
planned and innovative manner so that objectives can be effectively attained. Appropriate
allocation and utilisation of resources are essential for the desired outcome of market strategy. In
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