Strategic Report: Cadbury's Soya Milk Chocolate Market Entry in Latvia

This individual management report assesses Cadbury's potential market entry into Latvia with its new soya milk chocolate product. It employs PESTLE analysis to evaluate external factors, examines effective market entry options like exporting, licensing, strategic alliances, and acquisitions, and suggests exporting as the most viable approach. The report further analyzes market segmentation using the STP framework, focusing on geographic, demographic, behavioral, and psychographic segmentation to identify target customers. Finally, it evaluates Porter's generic strategies, recommending a differentiation strategy to gain a competitive advantage. The analysis aims to provide a comprehensive understanding of the Latvian market and guide Cadbury in its strategic decision-making for a successful product launch. This document is available on Desklib, a platform offering a wide range of study tools and solved assignments for students.

Individual Management
Report

Contents
EXECUTIVE SUMMARY.............................................................................................................1
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
Analysing external factors through PESTLE analysis.................................................................1
Analysing effective market entry options....................................................................................3
Analysing market segmentation ..................................................................................................5
Analysing porter's generic strategy..............................................................................................6
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

EXECUTIVE SUMMARY
Individual management report summarize the way in which an individual manage and
operate the business in national as well as international market in effective manner. The
following report summarize the current and future internal and external environment of the
organisation along with the strategic marketing plan in order to realise organisational objectives.
It further analyse how to manage resources to deliver the strategic marketing plan in effective
manner.
INTRODUCTION
Individual management refers to an ability of an individual in order to manage various
functions of business in order to gain success in effective manner (Banerjee, 2021). For this
following report selected company is Cadbury which is a multinational confectionery company,
it is founded in 1824 by John Cadbury and its headquarters in Uxbridge, London, England. Its
owner wants to introduced a new product that is Soya Milk Chocolate in the market of Latvia.
The market consultant helps them by analysing about external market, market entry options,
market segmentation and porter's generic strategy in order to expand in effectual manner.
MAIN BODY
Analysing external factors through PESTLE analysis
Cadbury is an most popular confectionery company in all over the world and it provides
very effective services with help of its numerous products in effective manner. Its owners wants
to launch a new products that is Soya milk Chocolates in a suitable country that is Latvia because
they are many customers who prefer those products that are made from soya milk in effective
manner (Bansal and Choudhury, 2021). The external factors of India that makes its owner to gain
various opportunities and faces threats are described with the help of PESTLE analysis. PESTLE
analysis is a systematic framework of external factors of the market that affects the company in
effective manner. The market of Latvia with its external factors that provides opportunities and
threats to Cadbury in order to launch its new product that is Soya Milk Chocolate are described
below:
Political factors- In this aspects it affects due to government interventions in the market
in order to create opportunities as well as risk for the company. Latvia is a most effective country
and their government are stable. Its political environment generally influenced by some factors
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such as politician's interest, government policies as well as ideologies of several political parties.
This will affects the business environment of Cadbury. Here, privatizations is greatly influenced
as well as their government encourages free business through different program which provides
an effective opportunities to Cadbury to launch its new product that is Soya Milk Chocolate in
effective manner.
Economic Factors- It describes the factors that are influenced by the country's economy
and affects the business environment of the company in effective manner (Bridges and Sandoval,
2018). Economy of Latvia is small as well as have free markets that makes Cadbury to enter
with the help of its new product that is Soya Milk Chocolate in effective manner. The economy
of Latvia is open for the global trade and investment which provides effective opportunities to
them in order to expand their business in effective manner.
Social Factors- It analyses those factors that can impact the business environment due to
the influence of religion and ethics, consumer buying patterns, demographics, health, opinions
and attitudes, Media, brand preferences and education. The population of Latvia consist various
ethnic groups which includes Belarusians, Russians, Poles, Ukrainians and Lithuanians. There
are legal ban on the employment discriminations based on gender which makes owner of
Cadbury to provides equal treatment to women and man in order to get various opportunities for
their new launch in effective manner. The people of Latvia are very effective consumer of
confectionery which makes them to introduced its new product that is Soya Milk Chocolate in
effective manner.
Technological Factors- This describes those factors that affects the business
environment of the company due to the sudden changes in technologies as well as new
inventions in technology (Choi, Nelson and Almanza, 2019). In Latvia its technological
infrastructure is highly developed which makes them to gain various opportunities in order to
launch their new product in its market in effective manner. Here, digital technology is not that
popular which can affects Cadbury marketing strategy.
Legal Factors- It is affected due to the law enforcement in the country in order to make
effective legal infrastructure in the country. In Latvia, it has efficient procedures for its law
enforcement. Its legal infrastructure consist various taxes such as corporate tax, excise tax,
income tax and value added tax. Its market is open for foreign direct investments which can be
become an effective opportunity for the Cadbury in order to expand their business in
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international market in effective manner. Its legislations regarding for the establishment and
operations for a business is easy, it also influenced Cadbury to expand their business in effective
manner.
Environmental Factors- It describes those factors that affects the business environment
due to the environment changes in the country. In Latvia there environment are affected by
various pollutions but mostly due to air and water pollution (Feldman, Franck and Schauerte,
2018). This will makes company to maintain sustainability by using organic products in order to
protects environment in effective manner. This will make Cadbury to use organic products for
manufacturing its new product that is Soya Milk Chocolates that helps in protecting the
environment in effective manner. This will help them to attract more customers in new country
in effective manner.
Analysing effective market entry options
There are many methods exist which helps companies to trade their product and services
in international market in effective manner. This will make company to analyse their cost
effective and profitable method in order to market their product or service in international market
in effective manner (Granato, Spaetzel and Medalie, 2021). The owners wants to expand their
business in internation market with the help of its new products that is Soya Milk Chocolate in
order to earn effective profit from it. Following are different methods in which owner of Cadbury
can enter in the Latvia in effective manner :
Exporting- It refers to a most easiest method for the company to enter in the foreign
country market in effective manner. Most of the companies uses this method in order to enter in
international market in effective and simplest manner. Exporting refers to the sale of goods and
services in other countries from home country in effective manner. If the owner of Cadbury uses
this method in order to enter in Latvia with its new product that is Soya Milk Chocolate can
avoid the expenses that occurs when they establishing their operations there. In this method
owner of Cadbury have a to make a contractual agreements with local companies and distributor
of Latvia in order to distribute and market their new products in effective manner. This will helps
them to market their products in the language of Latvia in order to attract more and more
customers in effective manner.
Licensing and Franchising- In this method of entering in new market, it allows another
company or person to assume the risk on behalf on the home country company. If the owner of
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Cadbury uses this method to enter in Latvia for their new product that is Soya Milk Chocolate, to
receive royalty or commission amount from the company that is based on Latvia for using their
brand name, products, trademarks, manufacturing process and other intellectual properties. It
contain low cost in order to enter in a international market in effective manner. This helps them
to gain effective profit because the company that based on Latvia has the proper knowledge
about the local market in effective manner. It will reduce political risk that helps to operate their
business in international market in effective manner.
Strategic alliances- It is an another method to enter in a international market in which
contractual agreement is made in between two or more companies for certain way and certain
time in order to achieve common goals in effective manner (Kropp, Parsley and Burnett III,
2018). It is important for the company to determine the value of its partner in order to bring
them to the venture for the aspect of tangible and intangible in effective manner. In context of
Cadbury, if its owner partnering with local company of Latvia, this will help them to understand
the local market, culture and methods for doing business effectively in international market in
effective manner. If their partners are recognised and reputable brand name in the Latvia as well
as have existing relationship with customers then it become more effective for them in order to
expand in Latvia in effective manner. The local partner help them to attract more customers for
its new product that is Soya Milk Chocolate in effective manner.
Acquisitions- It refers to a transaction in which a company gains a control of another
company by purchasing its stock, exchanging the stock for its own as well as in the case of
private company, paying the owner a purchase price. In today's world, acquisition in cross
borders are increasing effectively (Prasad, Krishna and Kumar, 2018). This will help company
to get quick access in order to established in foreign market in effective manner. In case of
Cadbury, if its owner select this method to enter in Latvia, it become an cheapest method
because their currency of country is strong in comparison with currency of Latvia. This will
makes to acquire a company of Latvia in order to trade their new product that is Soya Milk
Chocolate in effective manner.
Thus, from the above discussion it is analyse that owner of Latvia should choose
Exporting method in order to enter in Latvia with their new products that is Soya Milk Chocolate
because it helps them to enter in fastest manner as well as have low risk in comparison to other
method. It does not take high cost like in strategic alliances as well as does not face integration
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problems with other company in effective manner. This will helps to gain effective profit by
selling their products in market of Latvia in effective manner.
Analysing market segmentation
STP analysis refers to a method of marketing which consist three steps that are
Segmentation, Targeting and positioning that helps companies to examine their products and
service as well as methods to communicate their advantages to specific customers in effective
manner (Sajadi, and Jalali Farahani, 2018). In respect of Cadbury, it helps them segment their
market, target choose customer segments with an effective marketing campaigns that meet their
as well as adjust their positioning according to their expectations and desires in effective manner.
For market its new product that is Soya Milk Chocolate its STP analysis are described below:
Segmentation- It refers to the first step of marketing a product in effective manner. The
main focus of this step is to create different customer segments based on specific traits and
criteria. In regards to Cadbury, it makes to divide their market into different segments in order to
analyse their target customers for their product that is Soya Milk Chocolate. In geographic
segmentation customers are divided according to their country, state, region, province, etc. In
demographic segmentation customers are divided according to their age, education, gender,
occupation, etc. In behavioural segmentation customers are divided according to their interaction
behaviour with the company which includes what they buy, what they browse, how often they
buy, etc. And in last psychographic segmentation divided their customers based on their hobbies,
lifestyles, opinions, activities, etc. All these segments help owner of Cadbury to analyse their
market in effective in order to market their new product in the market of Latvia in effective
manner.
Targeting- It is a second step of marketing in which company look at the all above
segments as well as determine those segments that helps them to interact with them in effective
manner. The ideal segment help company to actively grow, gain high profitability as well as low
cost of acquisition in effective manner (Sanat, 2019). In aspect of Cadbury, it makes its owner to
analyse the size of their segments along with its future potential growth, their profitability and
their reachability in order to analyse their target customers in effective manner. The target
customers of Soya Milk Chocolate is geographic segment because its owner like to market their
product according to customers region, religion in order to attract more and more customers that
lived in Latvia in effective manner.
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Positioning- It is a last step of marketing that allows company to set their product and
service apart from their competitors in the minds of their target customers in effective manner.
Their many companies that do something similar to Cadbury so, it is important to them to find
what is makes them different and better in order to sell their new product that is Soya Milk
Chocolates in Latvia in effective manner. All the above factors make easy to them in order to
identify their suitable market in effective manner (Sander and Perdomo, 2018). Symbolic,
functional and experiential factors of positioning help them to gain competitive edge in effective
manner. In symbolic positioning it helps to enhance their image or belongingness in effective
manner. In functional positioning, it helps them to solve their customers' problem as well as
provide them effective and genuine benefits. In experiential positioning it help them to focus on
their emotional connection that their customers have with their brand, product or service in
effective manner. This will make owner of Cadbury to use effective method in order to analyse
effective marketing campaign in order to market their product in Latvia in effective manner. As
per the development in technologies, it makes them to use digital campaign in order to market
Soya Milk Chocolate in Latvia in effective manner.
Analysing porter's generic strategy
Porter's generic competitive strategies are used to determine the firm's relative position in
its industry whether its firm's profitability it above or below the industry average cost. It is
mainly used to determine the direction or strategy of an organisation (Tandon, Kumari and
Singh, 2021). Michael Porter give 4 strategies that a company can choose from them in order to
gain its competitive advantage in effective manner. According to its belief, a company should
choose effective strategy in order to beat their competition in effective manner. In account of
Cadbury, different type of porter's generic strategies are described below:
Cost Leadership strategy- It is an effective method that help company to gain
competitive strategy by reducing costs or charging industry average prices in order to increase
profit in effective manner (Suskauer and Houtrow, 2018). It also help companies to increase their
market share by charging lower prices as well as still make reasonable profit on their sale after
reducing their cost in effective manner. Its main focus is to make a company a leader in terms of
cost in their industry or market in effective manner. In respect of Cadbury, if its owner uses cost
leadership strategy in order to sell their new product that is Soya Milk Chocolate in Latvia, it
helps them to access the capital that is needed to invest in technology in order to bring the cost
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down, very efficient logistics and a low cost base that help in cutting the cost below from their
competitors in effective manner.
The differentiation strategy- This strategy makes company to make their product or
service different and attractive from their competitors. This will help companies to gain
competitive advantage in effective manner. In esteem of Cadbury, this helps them to make their
product more unique and effective in order to attract more customers as well as make effective
position in confectionery industry in effective manner (Tan and Ch'ng, 2020). It will take good
research, innovation and development to make their new product that is Soya Milk Chocolate
more unique and different from their competitors in the market of Latvia in effective manner.
This strategy provides the ability to deliver the high quality products in effective manner. This
will need effective marketing and sales strategy that helps in understanding the benefits offered
by the different products in effective manner.
The focus strategy- This strategy help company to understand the dynamics of the
market as well as unique needs of customers within it. It make their focus to develop uniquely
low-cost or well specified products for their customers (Tam and Oliveira, 2019). This will help
company to serve their customers within market in unique manner for building their strong brand
loyalty among their customers in effective manner. In aspect of Cadbury, using this straregy its
owner can achieve either a cost advantage or differentiation. This will help them to enjoys a high
degree of customers loyalty as well as gain competitive advantage in effective manner.
Thus, from the above strategies, owner of Cadbury should choose differentiation strategy
because it increases the customers loyalty that helps in discourage potential entrants. Its new
product that is Soya Milk Chocolate is an attractive and unique product that helps them to attract
more and more customers as well as make their strong position in Latvia in effective manner. It
provides less powers to bargain because no or less substitute of its Soya Milk Chocolate is
available in the market. This will helps them to engaged their customers for long term because
no close substitute is present in the market.
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CONCLUSION
From the above mentioned report, it is concluded that individual management report are
used by an entrepreneur in order to operate their business and manage their different functions in
effective manner. PESTLE analysis assist companies to analyse their external factors that may
provide opportunities or threats to them in order to operate their business in effective manner.
Exporting, strategic alliances and acquisition are different type methods that is used by the
companies for entering in international market in effective manner. STP analysis is used to
analyse target customers for the product and service of the company and strategy to market them
by dividing the market in different segments. Cost leadership strategy, differentiation strategy
and focus strategy are different strategy of porter's generic strategies that helps company to gain
competitive advantage in effective manner.
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REFERENCES
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