Cadbury's Sugar-Free Chocolate: Dubai Market Analysis and Strategy

This report analyzes Cadbury's strategic plan to introduce sugar-free chocolates in Dubai, UAE. It begins with an executive summary and an introduction outlining the report's objectives. A situational analysis, including company analysis and marketing environment analysis using PESTLE factors, is presented. The report assesses market competitiveness and justifies the market choice and target segment, focusing on health-conscious consumers and those with diabetes or obesity. Various market entry strategies, such as franchising, joint ventures, and partnering, are evaluated, with a recommendation for a joint venture with a local Dubai company. The report concludes with SMART recommendations, emphasizing specific, measurable, attainable, realistic, and timely marketing techniques, such as advertising campaigns, to ensure successful product launch. The report also includes a comprehensive list of references.

REPORT

Executive Summary
In modern world, every business organisation is operating in a manner that can provide a
strategic edge to it over its rivals. The purpose of this report is to explore international market
opportunity for Cadbury. In this context, Cadbury is planning to bring modifications in its
existing product constituents to expand by introducing sugar free chocolates in Dubai, UAE. On
the basis of this report, it is concluded that Cadbury has analysed the market gap and thus
planned to fill it by introducing sugar free chocolates. It has been recommended that company
should use extensive marketing tools like BTL techniques to promote its new product
successfully.

Table of Contents
Executive Summary.........................................................................................................................2
INTRODUCTION...........................................................................................................................4
Situational analysis..........................................................................................................................4
Company analysis...................................................................................................................4
Marketing environment analysis............................................................................................5
Market competitiveness.........................................................................................................5
Justification of the market choice and target segment............................................................6
MARKET ENTRY STRATEGIES.................................................................................................7
CONCLUSION................................................................................................................................7
SMART RECOMMENDATIONS..................................................................................................7
REFERENCES................................................................................................................................1

INTRODUCTION
Global business environment is the sum total of internal and external forces of business
present across the globe. Business organisations in modern competitive world strive to achieve a
high stake in market by bringing products that are diversified from rivals (McDonagh and
Prothero, 2014). The present report is based upon Cadbury which is bringing modification in
chocolates to introduce the ones without any sugar content. This company is launching these
chocolates in Dubai, UAE. The goal of this report is to conduct an analysis of company, its
marketing environment and competition. Also, it includes market entry strategies that can be
adopted by company. Besides this, it includes SMART recommendations for company.
Situational analysis
Company analysis
Cadbury is a famous brand that is operating across different parts of the world. This
company is well renowned among all the group groups ranging from children to millennials to
adults. Over years, Cadbury is known for having a wide variety of products and product ranges
to serve the needs and requirements of customers over the world. The core strategy of company
since its initial years has been making use of extensive advertising strategies to gain a strategic
edge over its rival companies within confectionery industry (Holliman. and Rowley, 2014). By
feasibly launching a new product at an interval of 6 months, Cadbury has succeeded in
maintaining a positive brand image among consumers in marketplace. Also, with a large range of
goods in marketplace, company aims at targetting each section of age group.
Management of Cadbury has strategically analysed the needs of people across globe and
thus, have been using economic pricing model. Under this, enterprise have been regularly
coming up with chocolates in various sizes and packets. Also, organisation is continuously
bringing up festive packs and other lucrative kinds of packages and boxes. This strategy has
mainly been utilised by company across different parts of the world to persuade people
belonging to various income levels to make a purchase. In continuation with its consistent

practise of introducing new range of chocolates having varied flavours and tastes, Cadbury is
now planning to come up with sugar free chocolates in Dubai, UAE.
Marketing environment analysis
The marketing environment analysis of Cadbury with special reference to new sugar free
chocolates conducted with the help of PESTLE Analysis is below:-
Political Factors: Over years, government of UAE have been showing growing concern
in relation to increasing number of diabetes and obese patients in the country (Dubai health care
symposium aims to tackle obesity epidemic in UAE, 2017). Cadbury has thus decided to
introduce sugar free chocolates by remaining aligned with the health related issues being
continuously encountered by citizens.
Economical Factors: The economy of UAE is strong yet a large proportion of population
is struck with diabetes and obesity. This has facilitated Cadbury to effectively launch new sugar
free chocolates within Dubai to improve medical conditions of citizens of Dubai.
Social Factors: The population of Dubai has largely been concerned about their health
due to rising number of diabetes and obese struck people within the place. Thus, by analysing the
social needs of people in Dubai, Cadbury is strategically coming up with chocolates with no
sugar content in them.
Technological Factors: By deploying an appropriate technology within its processes,
Cadbury has been successful in filling the market gap within Dubai and introducing sugar free
chocolates to meet the health conscious demands of residents.
Legal Factors: There is a regulation within Dubai which asks chocolate manufacturers to
reduce the content of sugar in products (Will a sugar tax help reduce obesity?, 2019). Thus,
Cadbury has grabbed this opportunity by providing chocolates as per the laws and regulations of
Dubai.
Environmental Factors: The wrappers of chocolates are generally assumed to be non-
recyclable which has been kept in consideration by Cadbury. Thus, enterprise has selected Dubai
to introduce sugar free chocolates where a mobile application, namely, Reyoutilizer has been
launched to make recycling of wrappers easier for Dubai citizens (Reyoutilizer App Simplifies
Dubai Recycling, 2016).

Market competitiveness
With passage of time, confectionery industry, specifically referring to the chocolate
business, has been found to be one of the biggest sectors in UAE. This sector of business has
been well versed with rapid growth and development in terms of revenue and sales figures in he
period 2012 to 2016. The underlying reason behind this growth has been the popularity and
extensive level of marketing done by the business organisations within this industry. This owes
to various types of packaging and distribution techniques used by entities.
One of the most successful companies within confectionery industry is Cadbury which
has been coming up with fun packs, festive packs, ready to eat packets, chocolate boxes and
hampers. This is largely being done by enterprise to gain attention of people belonging to various
age groups, income levels, professions etc (McDonagh and Prothero, A., 2014). The strategy of
providing chocolates in variable sizes and packs has been successful for Cadbury over years.
Thus, company has decided to launch sugar free chocolates in Dubai also in various sizes so that
it can be consumed by middle income group people too. Over years, Dubai has become a
strategic market where people intake countlines together with chocolates. Thus, the marketing
environment of Dubai is favourable for Cadbury to gain recognition for its new sugar free
chocolates.
Justification of the market choice and target segment
Cadbury is a British confectionery company presently owned by Mondelez International.
Company is planning to launch sugar free chocolates in Dubai, UAE. This location has been
selected by company keeping in consideration the element of health consciousness existing
within citizens of Dubai. This enterprise has an already established name and position in Dubai,
UAE. Thus, it will be easier for company to gain recognition in marketplace in relation to newly
launched sugar free chocolates. The economy of Dubai is strong and an excellent location for
potential investors to invest in a new product, product range or service. This strategic place is a
major hub for business enterprises that are looking for gaining advantage of market opportunity.
Dubai has a high standard of living with luxurious lifestyle that creates chances for companies to
enter market and satisfy the consumers to ensure their sustainability in marketplace
(Constantinides, 2014). Cadbury can use this as a key to extensively promote its products among
people and enhance its existing level of growth and profitability.

The customer segment that Cadbury is planning to target with launch of sugar free
chocolates is health conscious and diabetes and obese patients. This segment has been targeted
within Dubai so that company can gain recognition by law and professional bodies in relation to
taking steps towards reducing the issues faced by diabetes patients. These people can not intake
sugar and thus, Cadbury has identified the market gap and introduced chocolates that are
probable to be whole heartedly accepted by Dubai citizens.
MARKET ENTRY STRATEGIES
There can be various market entry strategies that can be effectively adopted by Cadbury
to enter successfully in Dubai with its sugar free chocolates. Such strategies are discussed
below:-
Franchising: It is a type of partnership agreement which can be used for rapid expansion
of business enterprise into new market.
Joint Venture: These are a particular form of partnership which leads to formation of a
third company (Godey and et. al., 2016). Herein, two businesses come together with an aim to
assume risks and share profits collaboratively.
Partnering: Here, company enters into partnership with one or more firms to facilitate
easy expansion into new market. The partnership enterprises are generally local companies that
possess huge customer as well as corporate contacts which can be beneficial in market entry
(Kumar, A. and et. al., 2016).
It is suggested that Cadbury should opt Joint Venture with any local company of Dubai as
a market entry strategy. This will help the company to target the expanding confectionery
industry within Dubai. This deal will assist in gaining knowledge about the local tastes in terms
of flavours and preferences of customers and overcome strong competition within the city. This
is an effective market entry method for Cadbury to successfully gain a high stake in new market
and formulate an easier expansion into Dubai by introduction of sugar free chocolates. However,
it is also noted that the local company with which Cadbury enters into joint venture can have a
different culture for operating and functioning within a market. Thus, there are probable chances
of clashes between management of both the entities. This has to be considered by Cadbury
before opting this as a market entry strategy.

CONCLUSION
From the above report, it has been concluded that it is imperative for business
organisations to keep a track of global business environment and operate in a manner that is
aligned with it. Also, it has been evaluated that marketing department of organisation should
conduct a market environment analysis to gain knowledge of the new location selected for
expansion. It is assessed that partnering, joint venture and franchising are some of the most
effective ways of entering into a new marketplace.
SMART RECOMMENDATIONS
To effectively launch sugar free chocolates within Dubai, UAE, it is necessary that
Cadbury makes use of an effective strategy. In this relation, it has been recommended that
Cadbury should make use of extensive marketing techniques to gain popularity at new place.
SMART recommendations have been given to Cadbury as follows:-
Specific: Company should make use of advertising strategies like organising campaigns to make
people aware about the new product.
Measurable: Enterprise should strive to aim at increasing its annual turnovers by 5% due to
introduction of these chocolates within Dubai.
Attainable: It is attainable as Cadbury already has a already established positive brand image
and position in Dubai
Realistic: It has been evaluated that Cadbury has taken account of health consciousness of
people and then brought sugar free chocolates in market. Thus, the chances of this product being
successful are more likely than others.
Timely: Organisation should strive to make sure that company gains by 5% more by investing
upon such files.

REFERENCES
Books and Journals
Constantinides, E., 2014. Foundations of social media marketing. Procedia-Social and
behavioral sciences. 148. pp.40-57.
Godey, B. and et. al., 2016. Social media marketing efforts of luxury brands: Influence on brand
equity and consumer behavior. Journal of business research. 69(12). pp.5833-5841.
Holliman, G. and Rowley, J., 2014. Business to business digital content marketing: marketers’
perceptions of best practice. Journal of research in interactive marketing. 8(4). pp.269-
293.
Kumar, A. and et. al., 2016. From social to sale: The effects of firm-generated content in social
media on customer behavior. Journal of Marketing. 80(1). pp.7-25.
McDonagh, P. and Prothero, A., 2014. Sustainability marketing research: Past, present and
future. Journal of Marketing Management. 30(11-12). pp.1186-1219.
Online
Dubai health care symposium aims to tackle obesity epidemic in UAE. 2017. [Online]. Available
Through:<https://www.thenational.ae/uae/dubai-health-care-symposium-aims-to-tackle-
obesity-epidemic-in-uae-1.668257>.
Will a sugar tax help reduce obesity?. 2019. [Online]. Available Through:
<https://www.weforum.org/agenda/2018/03/will-a-sugar-tax-help-reduce-obesity/>.
Reyoutilizer App Simplifies Dubai Recycling. 2016. [Online]. Available Through:
<https://www.greenprophet.com/2013/08/reyoutilizer-app-simplifies-dubai-recycling/>.
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