BK005 Term 3: Cadbury International Marketing Strategy Report

This report provides a comprehensive analysis of Cadbury's successful international marketing strategies, focusing on its expansion into global markets, particularly New Zealand. It examines the company's domestic and international market approaches, highlighting its contribution to the world economy, and explores the product life cycle of Cadbury's products. The report details various modes of entering international markets adopted by Cadbury, along with an overview of international marketing trends and opportunities within the Asia-Pacific region. Furthermore, the report utilizes a PESTLE analysis to assess the political, economic, social, technological, legal, and environmental factors influencing Cadbury's operations. The report concludes by summarizing the key strategies that have contributed to Cadbury's sustained success in the global marketplace.

Running Head: SUCCESS STRATEGY FOR INTERNATIONAL MARKETING: CADBURY
Success Strategy for International Marketing: Cadbury
Name of the Student:
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1SUCCESS STRATEGY FOR INTERNATIONAL MARKETING: CADBURY
Executive Summary
The study focuses on the Cadbury’s success strategy in the international market and in the market
of New Zealand. The study provides a clear idea about the domestic as well as international market
along with that contribution to the world economy. The study also focuses on the product life cycle
as well as modes of entering international market. The study provides a clear idea about the
international marketing trends along with that marketing opportunities in the Asia-Pacific region.
Lastly, the study provides conclusion which helps to understand why Cadbury’s strategy is so
successful in the international market, which lead them to earn profit from it.

2SUCCESS STRATEGY FOR INTERNATIONAL MARKETING: CADBURY
Table of Contents
Introduction..........................................................................................................................................3
Domestic and International Market.....................................................................................................3
Contribution to World Economy.........................................................................................................5
Product Life Cycle...............................................................................................................................6
Modes of Entering International Market.............................................................................................7
International Marketing Trends...........................................................................................................8
Marketing Opportunities in Asia-Pacific Region................................................................................9
Conclusion.........................................................................................................................................10
References..........................................................................................................................................11

3SUCCESS STRATEGY FOR INTERNATIONAL MARKETING: CADBURY
Introduction
The study is about the successful strategy that have been adopted by the Cadbury to expand
in the international market. This help the organisation to grow in the market and gain popularity in
the international market. Cadbury is a multinational company, who sale chocolates all around the
world. The product become successful in the international market and gain popularity all around
the world. The head-quarter of the company is located in the Uxbridge which is in London,
England (Sharland, 2019). The company was established in the year 1824 in Birmingham, by John
Cadbury. The company is considered to be the second popular brand in the world. This is because
the company has done an effective marketing all around the world that even today in some of the
countries chocolate is considered is named as Cadbury after the brand name. This is how successful
the company’s strategy in the international market which help them to gain popularity among the
customers especially among the kids.
Cadbury also opened a manufacturing factory in Dunedin, New Zealand. The company in
the year 1930, did a partnership with a local confectionery in New Zealand. The company also
opened another factory in the Auckland, North Island. This is how Cadbury entered the New
Zealand market and grow as well as sustain there. The company also operate in other countries as
well just like they do in New Zealand (Ricotta et al., 2017).
Domestic and International Market
The company have adopted an effective and well-structured marketing strategy to promote
their product both domestically as well as internationally. Cadbury is a UK based multinational
company who operate globally all around the world. This help the company to grow and sustain
both in domestic level as well as in international level. The company possess different and diverse
product range for both the market. Cadbury sales product from chocolate to health drink, which
help the organisation to earn profit from the market (Noble, 2017). The company also adopted an
effective way of marketing their product with the help of jingles. This ultimately help the company

4SUCCESS STRATEGY FOR INTERNATIONAL MARKETING: CADBURY
to market their product in such a way that customers especially the teens are the ones who get
attracted in both the market.
The market segmentation is done in an effective way along with that advertising is done in
such a way, which automatically attract the customers. The company also introduce products for
every occasion that help the organisation to build a huge market base in the market.
The PESTLE Model which is being followed by Cadbury both in domestic level as well as
in international level are as follows:
 Political: Domestic - In the United Kingdom, Cadbury’s procedure changed the
government policy from the labour party to the traditional democrat. The company hired
more than 3000 employees in the United Kingdom. The government change the policy
to some extent as the company hired large number of employee.
International - In the year 2010, when there was increase in VAT by 2.5% the sale of
the chocolate was reduced both globally as well as domestically for the company (Cai,
Sakarias, Brown & Marshall, 2017). The company adopted an efficient way to
overcome the situation.
 Economic: Domestic - There is a huge competition for the company to generate revenue
in the domestic market. Cadbury introduce the brand initially as cocoa drink in the
domestic market to earn money and gradually shifted to chocolate industry. The
company influenced the economy of the country to a large scale.
International - In spite of facing problem, Cadbury is able to generate revenue in both
the market quite efficiently and effectively. This is due to the wide range of products
that the company introduce in the market and successful advertising techniques to
market their products. This help the company to generate revenue even in the time of
inflation.

5SUCCESS STRATEGY FOR INTERNATIONAL MARKETING: CADBURY
 Social: Domestic - In domestic market, Cadbury started selling different products
initially and experimented by producing chocolate in the domestic market. As the
company received a great response from the customers they expanded in the
international market.
International - The product that the company sale which is mainly chocolate and other
products was accepted by the consumers all around the world. This is so as the company
is selling products all around the world. Recently, the company got into a controversy
that they are using halal products so as to attract Muslim consumers (Neilson, Pritchard,
Fold & Dwiartama, 2018).
 Technology: Domestic - Cadbury adopted new technology to attract the customers in
the domestic market but there is a huge competition for the brand. The company
implemented new technology in the business framework but due to huge competition
they are unable to gain that popularity, which help them to expand in the international
market as there is a huge scope for the brand to implement their technology in the global
market.
International - Cadbury use new technology which is mainly used by the coffee
companies to merge coffee grains. This help the company to gain consumers trust,
which ultimately help the organisation to grow in the international as well as in the
domestic market (Cai, Sakarias, Brown & Marshall, 2017).
 Legal: Domestic - The Company possess a strong legal management team in the
domestic market. This help the organisation to become effective in nature in the market.
The company never violated the rules that have been set by the government in the
domestic market. This help them to attract more number of customers towards them.
International - The Company follow an effective legal framework in international level.
This enable the organisation to operate according to the countries rules and regulation.

6SUCCESS STRATEGY FOR INTERNATIONAL MARKETING: CADBURY
This also provide governance to Cadbury as well as helps in taxation and legal
responsibility that need to be taken by the organisation.
 Environmental: Domestic - The Company took an effective way to operate the
production so that the environment is polluted less by the organisation. The company
consume less amount of energy which make them energy efficient as well in the
process. This create a good impact on the domestic market and their brand image was
enhanced in the process.
International - Cadbury adopted plans which enable them to reduce the impact on the
environment as the company is involve in the consumption of the energy. The company
mainly deals with the dairy products so the consumption of the energy is high along
with that due to the packaging of the products there is a chance of waste. Therefore, the
company adopted an effective way to control it to some extent so that less impact can be
created in the environment (Neilson, Pritchard, Fold & Dwiartama, 2018).
Contribution to World Economy
Cadbury have contributed to the world economy by internationally marketing their
products. This help the company to grow in the international market as well as help the world
economy. The growth of the company helped other companies to enter the market (Doherty, Smith
& Parker, 2015). The two factors that need to be look into consideration are namely,
 Cadbury by introducing their brand in the international market and expanding their
business, opened the door for the other chocolate brands to enter the market. This help
the other brands to grow in the international market as well along with them. This
automatically increase the world economy as other brands from different country also
gaining popularity as well as the profit from the market, which ultimately improves the
financial condition of the country (Nelson & Phillips, 2018). Therefore, it can be said

7SUCCESS STRATEGY FOR INTERNATIONAL MARKETING: CADBURY
that Cadbury by introducing their products in the international market have made a great
impact on the world economy.
 Cadbury opened their manufacturing factory in the country they sale their products. This
is so because they want to cut down their export duty. The opening of the factor
provided job opportunity to the people of that particular country. This help the country
to improve their per capita income, which automatically resulted in the growth of the
world economy. The company also wanted to capture the market so they recruited
marketing experts of that country they are operating to understand the customer’s needs
and wants (Ramli, 2017). This help them to grow in the market and to earn profit that
made an impact on the world economy in the end.
This two factors are mainly highlighted in the expansion of the company to different
country. As the company expanded as well as help to improve the economic condition of the
country they are entering. This help in the growth of the GDP as well as per capita income of the
country as well as increase the world economy. The company have selected an effective
international marketing strategy which helps them to grow in the market and to earn profit in the
process.
Product Life Cycle
Product life cycle is considered to be the sales of the product along with that earning profit
from the same during its lifetime. Cadbury also possess some life cycle for the products that they
are introducing in the market. There are mainly five stages which need to be considered in the
product life cycle and they are namely, product development; introduction; growth along with that
maturity and decline (Jian, Cai & Chen, 2017). This five stages together form product life cycle and
this need to be look after by the company to expand in the market and to earn profit from it.
Cadbury is in the maturity stage in the recent time as the company possess around 70%
market share in the chocolate industry. The company have already crossed the growth stage where

8SUCCESS STRATEGY FOR INTERNATIONAL MARKETING: CADBURY
they are growing and capturing the international market in the process (Pellicelli, Varese & Bollani,
2019). As Cadbury is popular brand around the world the denial period will take time to come in
the future. This is because the company is capturing the maximum market share. Therefore, they
are likely to earn profit from the market and as the company is introducing different range of
products, which help them to grab the market in the process and that is reason why the company
will not receive denial in coming years (Amin, Mohamed & Hussain, 2018).
Modes of Entering International Market
Cadbury has adopted an effective mode to enter the international market, as this helped
them to expand in the international market as well. The company also earn profit by expanding in
the international market. It is important for the company to adopt a strategy to enter into the
international market (Ang, Benischke & Doh, 2015). There are benefits as well as challenges,
which is usually faced by the organisation while entering into the international market. There are
mainly five modes which can be adopted by the organisation to enter the international market and
they are namely, foreign direct investment; joint venture; strategic acquisition; licensing and
franchising along with that direct export (Nielsen, Asmussen & Weatherall, 2017).
Cadbury adopted the licensing and franchising mode to enter the international market along
with that especially in New Zealand, which is quite successful for the brand as it helped them to
grow in the market and to earn huge amount of profit from the market. This strategy also help the
company to capture a large amount of market share (Knight & Liesch, 2016). The benefits of this
mode are:
 The entry cost is quite low in this process.
 The partners who are involve in this mode possess the knowledge about the local market
in which the company wants to expand.
 It offers the company an indirect source of income.

9SUCCESS STRATEGY FOR INTERNATIONAL MARKETING: CADBURY
 As the partner are the local business firms which eliminates the political risks that
prevails in this mode.
 Helps the foreign company in the expansion process.
There are some challenges which can be faced by the organisation in the process and they
are namely,
 Complete control cannot be shown in this mode of entering the market.
 The local firm can become a potential competitors in the market.
 If the partner who are engaged in licensing are incompetence in nature then the brand
can suffer a huge loss in the process.
This is how Cadbury made an impact in the international market as well as in the New
Zealand market and gain popularity in the process (Hinckson, 2016). This also enabled them to
attract huge number of customers towards their brand. The strategy of the organisation is quite
successful in nature and help them to grow as well as sustain in the market till today.
International Marketing Trends
The international marketing trend to some extend influence Cadbury to expand their
business in the international market. The two main marketing trend which attract the company to
enter the international market are namely,
 Customer Engagement: The purchasing decision of the customers can be triggered by
cultural and economic factors which is their in customer engagement framework. The
manager must look into this matter if they want to expand their business in the
international market (Liang, Xie & Redding, 2017). This will automatically help them to
grow as well as to earn huge amount of profit from the international market. Cadbury
also get attracted by this marketing trend in the international, which encourage them to

10SUCCESS STRATEGY FOR INTERNATIONAL MARKETING: CADBURY
enter the international market. In this trend, five cultural dimension as mention in
Hofstede model can also be implemented by the organisation to gain popularity as well
as to sustain in the international market. On the other hand, the country’s economic
condition is also considered as the attractive factor for the company to expand in the
international market (Ali et al., 2018). It is noted in international market especially in
New Zealand that there is a huge scope for the Cadbury Company to enter the market,
which influence the company to expand their market internationally.
 Marketing Capabilities: The capabilities which is there in the international market is
much higher for Cadbury than the capabilities for the success in the domestic market. In
the domestic market, there are more number of competitors present in the domestic
market for Cadbury than the number of customers there in international market.
Therefore, the company expand in the international market as this trend attracted them
to enter the market (Chang, 2018). In recent time, it can be noted that the company have
earned a huge customer base in the international market especially in the New Zealand.
The products of the company are much more popular in the international market than in
the domestic market and the company is able to earn huge sum of money in the process.
This automatically helped Cadbury to grow as well as sustain in the international
market.
This are the two trend that attract Cadbury to expand internationally and to grow as well as
gain popularity in the process. The international market is much more profitable for the company
than the domestic market.
Marketing Opportunities in Asia-Pacific Region
As Cadbury mainly deals in the international market rather operating in the domestic
market. There is a huge opportunity for the organisation to grow in the Asia-Pacific region, due to
certain reason which will provide additional advantage to the organisation to operate in an effective

11SUCCESS STRATEGY FOR INTERNATIONAL MARKETING: CADBURY
way as well as to earn profit from the market (Hamid et al., 2017). The two emerging opportunities
are:
 The Asia-Pacific region is developing in technologies as new technologies are introduce
in the region, starting from AI to robots (Sengupta & Sahay, 2017). This will
automatically help any organisation to increase their production in the region, which
will help them to earn profit. As Cadbury is operating in chocolate as well as packaging
process. This will help them to reduce the time of production and supply can be done
accordingly to meet the demand of the market. In the Asia-Pacific region the population
is higher so the demand for the products will also be on the higher side.
 The region is barring entrance of the new organisation in the market. This is a huge
opportunity for then organisation to grab huge market share in the market as Cadbury is
operating in this region for quite a long time. The company know about the market
thoroughly. Therefore, it will be beneficial for the company to grow and capture market
share which will enable them to earn huge amount of profit from the market. This is also
an opportunity for the company to sustain and expand in this region (Nguyen &
Rugman, 2015).
This are the two main opportunities that attract the Cadbury to operate in the Asia-Pacific
region. This will help them top grow in the market and to earn large sum of money from the
market.
Conclusion
It can be conclude that Cadbury will be able to operate successfully in the international
market especially in New Zealand. Along with that the company possess opportunities in the Asia-
Pacific region to grow and expand as well as earn profit from the market. It can be seen from the
study that there are opportunities for the company to grow as there are attractive international
marketing trend which enable them to earn profit and sustain in the market. In the end it can be said

12SUCCESS STRATEGY FOR INTERNATIONAL MARKETING: CADBURY
that the company took unique mode to enter the international market which is quite effective in
nature especially for the market in New Zealand. This will help the company to capture the market
in the near future.

13SUCCESS STRATEGY FOR INTERNATIONAL MARKETING: CADBURY
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