Cadbury Company: Product Development, Market Analysis, and Strategy

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This report provides a comprehensive overview of the Cadbury Company, a British confectionery giant. It details Cadbury's history, product portfolio, market share, and overall market growth, highlighting the success of the Dairy Milk brand. The report analyzes the product life cycle of Dairy Milk and explores new product development, particularly the launch of a 30% less sugar variant targeting health-conscious consumers and the diabetic market. It includes a detailed SWOT analysis, examining Cadbury's strengths, weaknesses, opportunities, and threats, along with a financial overview and relevant references. The report also covers market segmentation, targeting, and positioning strategies, emphasizing the importance of psychographic segmentation and emotional content in advertising. The report concludes with a discussion of the company's two-pronged strategy for growth, focusing on urban segments and premium products, and the implementation of STP (Segmentation, Targeting, and Positioning) activities.
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PRODUCT DEVELOPMENT OF
CADBURY COMPANY
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An overview of Cadbury Company
Established in 1824, A British multi
confectionery company.
Headquartered in Uxibridge, west London.
200 years ago, Cadbury was found by John
Cadbury.
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Mondelze Food International is a Parent company of
Cadbury.
After Mars/Wrigley’s Cadbury is second largest
confectionery brand in the world.
1854, First royal warrant granted by , Queen Victoria
Kraft Foods acquired Cadbury which expanded as
Mondelez International.
Cont..
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Products of Cadbury
Cadbury is engaged in manufacturing various type of
products such as:
Chocolate Bars
Chewing Gums
Desserts
Biscuits
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CONT...
Travel Exclusive
Ice creams
Boxes and Rolls
Beverages
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PRODUCT PORTFOLIO
Flake
Curly Wurly
Bournville
Dairy Milk
temptations
Bista Wispa
Dairy Milk Shots
Dairy Milk Buttons
Éclairs Hazelnut Twist
Dincky Deckers
Bournvita
Tang
Oreo Hot Chocolate
Oreo
Fingers
Wispa
Roundie Caramel
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Market share
Second leading company in
chocolate confectionery, after
Mars.
Total Market share of Mondelez
is 12.8%.
Market share of Cadbury is
34.1%.
Generates 185 million pounds
profit.
In 2016, net revenue 3 billion
dollar
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OVERALL MARKET GROWTH OF CADBURY
As pert the Euro Monitor, it predicts that the industry will enjoy a 6
percent increase in revenues in 2014, delivering 117 billion US dollar in
global revenues. A 2.1 percent increase in volume drives that robust
performance.
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CADBURY-DAIRY MILK
In 1905, milk chocolate introduced to British
market, with its different flavour and texture,
instantly became the market ruler.
The dairy milk slogan "glass and a half of full,
is one of the all-time greats of ads.
The Cadbury Dairy Milk being the market
leader, European prefer- creamy milk
chocolate.
Dairy Milk chocolate is the essential ingredient
of other Cadbury chocolate favourites..
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Variations in Dairy Milk
Christmas edition of gingerbread
Dairy Milk.
Dairy Milk little robins.
Dairy Milk orange snowman.
Dairy Milk crackle.
Dairy Milk caramel.
Diary Milk fruit & nut.
To get hold of market company should produce
varieties of products including:
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PLC OF CADBURY DAIRY
MILK
In 1905, Dairy Milk was
introduced.
It holds 65% of market share.
Impulse buying behaviour.
Dairy Milk enjoys Maturity
stage of PLC of Cadbury.
Dairy Milk enjoys the market
share of 70% and sale of 44.6
million
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PRODUCT DEVELOPMENT
New variant of product is launched- 30%
Less Sugar
New Product developed for UK and India.
Low sugar variant contains no added
artificial sweetener, colours or
preservatives.
Focus On Diabetic Segment of market.
For Health Conscious Customers
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MARKET OPPORTUNITY
Leads the confectionery sector with
a 16.9 percent share in value and a
10.3 percent share in volume in 2018.
Customer propensity to ' health and
well-being ' and reduced sugar
products.
Advertisement and promotion
should focus much more with high
Emotional Content
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MARKET STRATEGY
SEGMENT: Psychographic segment that
influence impulsive buying behaviour,
Health conscious people.
TARGET: Should focus on Diabetic
Nation and target diabetic children,
adult of any age group.
POSITION: Sugar free & less calorie
chocolate
Cadbury is embracing two-pronged strategy to grow its business.
It aims to strive for boosting product in the expansive portfolio of the Urban
segment in Premium Segment. STP activity involve:
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S
SWOT ANALYSIS
Highly effective
advertisement campaign
and promotions
Massive Brand Awareness
Reasonable and Economic
price.
Highest confectionary
market in UK and India
Taste little bitter than original
taste.
Consumer’s pre-conceived
mind set.
Raw material set back to
confectionery industry
Opportunity to grow market
segment
acquiring new segment into
liquor chocolate.
Inclination toward health and
wellness reduction into sugary
products
Stiff competition from other
confectionery brands like:
Mars, Nestle, Lindt and many
more
Strengths Weakness
Opportunit
y Threats
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FINANCIAL OVERVIEW
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REFERENCE
Bailey, A.R. and Alexander, A., 2019. Cadbury and the rise of the supermarket:
innovation in marketing 1953–1975. Business History, 61(4), pp.659-680.
Burnett, J., 2016. England eats out: a social history of eating out in England from
1830 to the present. Routledge.
Carter, M.C., Hancock, N., Albar, S.A., Brown, H., Greenwood, D.C., Hardie, L.J.,
Frost, G.S., Wark, P.A. and Cade, J.E., 2016. Development of a new branded UK
food composition database for an online dietary assessment tool. Nutrients, 8(8),
p.480.
Chance, H., 2019. Chocolate heaven: productive consumption and corporate
power in the recreational landscapes of Cadbury, Bournville and Hershey,
Pennsylvania in the early twentieth century. Studies in the History of Gardens &
Designed Landscapes, 39(1), pp.22-39.
Clarke, P. and Marshall, S., Cadbury UK Ltd, 2016. Confectionery product
containing active and/or reactive components and methods of production
thereof. U.S. Patent Application 14/920,071.
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Das Nair, R., Nkhonjera, M. and Ziba, F., 2017. Growth and Development in
the Sugar to Confectionery KHARBANDA, O., 2017Value Chain.
DuBois, T.D., 2019. Branding and retail strategy in the condensed milk
trade: Borden and Nestlé in East Asia, 1870–1929. Business History, pp.1-
18.
HIDIROĞLU, D., 2019. AN APPLICATION OF SWOT ANALYSIS AS A STRATEGIC
PLANNING TOOL: A CASE OF CADBURY, INC. IN CONFECTIONERY
INDUSTRY. Uluslararası İktisadi ve İdari İncelemeler Dergisi, (25), pp.153-
164.
Kimberley, J., 2019. Employee Relations and the Quaker Employers
Conference of 1918: The Cadbury Company. Quaker Studies, 24(2), pp.229-
248.
Marin, J.P.C., Davis, B., Levenson, D., Elejalde, C.C., Enomoto, K., Euan, D.,
Hirt, W.J., Jani, B., May, J., O'neill, S. and Robinson, M., 2016. Sugar free
confectionery; methods of making same; and use in preparing multilayered
confectionery. U.S. Patent 9,247,761.
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Pauly, M.V. and Swanson, A., 2017. Social impact bonds: New product or new
package?. The Journal of Law, Economics, and Organization, 33(4), pp.718-760.
Schenkelberg, S., 2020. The cadbury schweppes judgment and its implications
on profit shifting activities within europe. International Tax and Public
Finance, 27(1), pp.1-31.
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