Cadbury Plc market environment

Cadbury Plc market environmentAn argona where there is effective sale of goods and services Cadbury ope steps in about 60 countries equivalent India, Australia, Canada, fondness East, Pacific countries with its headquarters in UK.Nature of businessCadbury has a strong name in the market for selling a variety of products in drive different categories like coffee berrys, fecesdy and gum.Chocolates- dairy milk, five star, time out, perk, munch etc.Pest-G analysisThis is an analysis in which political, social, economical and technological factors are interpreted into consideration when charting an organizations long term plans.2PoliticalPolitical decisions can be made by the Indian government like increasing the tax rate and this cast up will lead to precipitate in gross gross sales of the drinking drinking cocoa and therefore profitss, this will as well as limit the opportunity for growth of the company.Government can also endure restrictions concerning the welfare of the society and the workers, and so if the government decides to legislate the functioning and disposal methods of Cadbury this could lead to huge losses.Since Cadbury is a chocolate factory, the government may highly be concerned about the health problems that Cadbury will cause and some more than restrictions and rules could be made about the ingredients of Cadbury which could cause in mixture of the taste.EconomicalIncrease in interest rates delinquent to some economical factors or phase such as recession, could lead to limiting the opportunity for Cadbury to undergo growing and expanding.In such recession if incomes abide lower then, Cadbury will experience decrease in sales as customers priorities change.In the fly high phase, expansion would be a lot easier, economy at the highest and sales are likely to increase.SocialThe society perception has great effect on the functioning of the company if alternative equal brands of chocolate appear then customers baron switch brands .Increase in the health consciousness of the society could lead to major losses to Cadbury.TechnologicalCadburys traditional way of processing chocolate might get affected by the introduction of new machines and techniques, causing them more money and being more automated, this change will also force Cadbury to pump in more money for the training of the staff in nightclub to adapt to new machinery and techniques.The competitionCadburys CompetitorsSince Cadbury is one of the largest confectionary factories, it must face some competition from other chocolate brand. Cadburys main competitors are Nestle, Hersheys and Mars. But Cadburys large carry of products open up new means of competitions. Cadbury unlike its competitors have a strong base in countries like the UK, Australia, republic of Ireland, India and etc.Sales and profit trend3CompetitionCadbury plc (CBY)27Tootsie Roll Industries (TR)28Rocky Mountain Chocolate Factory (RMCF)29Hershey Foods (HSY)30Wm. Wrigley Jr. Company (WWY) 31Imperial Sugar Company (IPSU)32Cosan Limited (CZZ)33Market exhaust hood $Mil16,960.001,310.0057.807,500.0021,100.00186.882,640.00Revenue $Mil7,971.00497.4231.904,946.725,389.10875.531,679.10Gross Profit $Mil3,927.00186.6713.701,631.972,853.85104.95487.80Net Profit Margin %5.11%10.37%15.56%4.33%11.73%4.97%20.83%Operating Margin %9.89%14.24%24.83%9.28%17.87%6.14%13.87%Market Share4 it is the total region of the total marketoccupied by a company.CompetitionCadbury plc (CBY)MarsNestle (NSRGY)Wrigley (WWY)Hershey (HSY)Kraft Foods (KFT)FerreroGlobal Confectionery Market10.1%8.9%7.7%5.5%5.5%4.3%4.2%Chocolate7.3%14.7%12.5%8.3%7.8%6.8%Gum27.0%0.1%34.5%1.3%0.1% sugarcoat7.4%2.8%2.9%2.2%2.7%0.3%1.5%5CUsersDanaDocumentsIMG_13112010_032130.pngTarget MarketsThese are company of customers the company had aimed to put all efforts in supplying their need.6Most obvious identify would be young kidsCadbury diversified its target audience to include old aged people along with adultsRetailers and c hocolate companiesLink to text only version Opens in a new windowpaneThe CompanyProfits and sales trend7According to the latest press release in 2010, Cadbury experienced a substantial increase in the total tax receipts and sales as well as profits for this year. Moreover, it was mentioned that the revenue increased by 5% and the second half(prenominal) of growth increased by 6%. This progress was a consequence of the increase in all the three categories of Cadbury. The chocolate grew by 7%, the gums by 2% and candy by 5%Market shareBusiness sector Cadbury happens to be a business to business.Cadbury lies in the confectionary sector.Revenue8http//t1.gstatic.com/images?q=tbnANd9GcTj9uax2uMb1mobjhHlGCTGjkCE_whg5aYrnesDV0shWj5JRJ_ohttp//store.businessmonitor.com/bigdb_data/fooddrink7_20100120.gifXI. The enter focusCadbury sells a variety of products and in my project I will be focusingon dairy milk Cadbury chocolate.Dairy milk chocolate barMost common and preferred Cadbury chocola te brand worldwide.Ingredients9 Full Cream Milk, Sugar, Cocoa Mass, Cocoa Butter, Milk Solids, Vegetable Fat, Emulsifiers (Soya Lecithin, 476), Flavours. May contain traces of Nuts. Milk Chocolate contains Cocoa Solids 26%, Milk Solids 28%.Contains the logo glass and a half milk, purple color packaging.Lies in the chocolate category and country focus will be on Indian market.Cadbury can also merge with their suppliers in order to have two way benefits and avoid conflictsIt can also start making their own coffee and use of ingredients in order to save up money and import taxes.ThreatsWith health awareness increasing more day-by-day the production and sale of the chocolates will decreaseSome regional laws depending on the country might ban some ingredients or certain type of chocolate which might cause bad forwarding and loss in customers and retailers.Increased severe competition from other chocolate brands and using competitive pricing might cause reductions in the revenue and inc rease costs.The increase of quality control and regulations announced regarding the safety of the ingredients and side effects.The Company Marketing StrategyXIII. Market Segmentation this refers to dividing the target market into groups according to their necessitate and interests.10Each company when launching new products or brand would consider market segmentation.Demographic variables which implies to segmenting according to age, gender, income, marital status. In case of the age group Cadbury first targeted young children and eventually targeted the adults too. This helps in identifying the marketing mix and features that would attract that particular group.For income, it will help set the prices of the products that normal customers can afford.Segmenting according to lifestyles might help target people with certain habits, cuisines and fulfill their need of consumption of the products for example some people would go for the dark expensive chocolate due some certain traditions .Benefits that the product brings some customers find it very sensible to buy a basic product that would just satisfy their need like Cadbury dairy milk.Occasions this group of customers would only buy these chocolates on occasions such as Christmas, Halloween etc. known as seasonal buyers. (crme eggs, Easter eggs)Cadbury also considers the basic preferences for example having a dairy milk hazelnuts chocolate bar with a cup of tea or coffee. Considering habituation is also segmenting.XIV. TargetingThis term refers to considering a certain group of people to make them customers of the brand.Targeting changes with the change of product provided basically for Cadbury target market is the whole population.XV. Positioning of CadburyWhen Cadbury entered the market, it was whole unique chocolate with the special recipe and packaging.Effective positioning of Cadbury took place when advertizement succeeded and different varieties of chocolates started coming up. Its very important for comp any to have close relation to the customers which Cadbury was self-made at doing and that the major factor that promoted the chocolate.XVI. DifferentiationCadbury started off differently with its recipe of the dairy milk. Cadbury basically cannot be classified as chocolate since it doesnt have generous cocoa and so is called dairy milk.Cadbury dairy milk chocolate barCUsersDanaDocumentsIMG_12112010_215635.pngCadbury was placed in between the differentiated leader and cost leader because its unique but at the same time keeping costs as minimum as possible. (using cost-effective methods)11Cadbury dairy milk chocolate barXVII. Growth strategy these are tactics towards gaining prosperity.Boston Matrix DiagramBoston Matrix it is a chart cadaverous to analyze the products as business units (product portfolio).12Ansoff matrix its a chart drawn that allows marketers to grow business through existing markets/new product or new markets/new products.13Cadbury dairy milk chocolate barhttp//t utor2u.net/business/images/Ansoff%20Matrix%20w500.gifThe Marketing commixXVIII. ProductCadburys product being discussed here is the dairy milk bar.Cadbury dairy milk is known to have one and a half glass of filling milk in every 200 grams of dairy milk chocolate.Packaging of CadburyIt has purple packaging as knownIt contains the logo which is the glass and a half milkIt should be eye-catching specially if kids were targeted and highly classy if adults were targetedEasy and safe to open and useShould contain the ingredients and place of manufacture on the puntShould come in various sizesSince its chocolate, thick packaging should be used in order to protect chocolate from heat and melting.Cadbury dairy milk chocolate bar14http//t2.gstatic.com/images?q=tbnANd9GcTT1RiQe7BpQDznBQU1H-JtPCKN25WIZRaXRuqL_ei6z809YE4cProduct life cycleThe latter shows the stages the product undergoes from its development until its decline.15XIX. Price-When launching a new chocolate, Cadbury should be cons idering the group of people targeted for this chocolate and based on that the pricing methods should be set. The price set should definitely cover the costs of the ingredients and the electricity for machines functioning and should also bring in revenue in order to be invested again.XXI. PromotionThe latter represents a link between the buyers and sellers where sellers use methods of promoting.16Cadbury was the first company to use visual advertising and is a leader in innovation. Promotion of Cadbury has been promoted through movie stars on the television, magazines and radios. Advertising strategy should be carefully chosen, it should be cost-effective and reachable to all some the world. Effective Advertising leads to attraction of customer to buy the chocolate, some advertisements even lead to brand loyality and prosperity.Another aspect of promotion is the sales hence sales refer to reduction in price and usually happen seasonally or on special occasion like Christmas. Sometim es promotion is held to get rid of the lying stocks.http//im.rediff.com/movies/2009/may/05sl8.jpgEvaluation of the Companys Strategies and TacticsXXIII. Evaluation of the companys current positionWhat makes a good company? The answer to this question depends on every detail of the companys basic strategies to its profit.Cadbury has a strong presence in the confectionary market which I am aware of as customer. It has survived a long journey of ups and downs until date. Cadburys sales and profit have always been high, as well as its market share and the evidence can be seen below. Cadbury customers are very satisfied with the product, diversifications, advertising methods and distribution channels.XXIV. Evidence of the companys successImageCBY Revenue and Net Profit.jpghttp//www.neurosoftware.ro/finance/wp-content/plugins/wp-o-matic/cache/6f75a_analystreport1-0216.gifA Global Business Cadbury Revenue Contribution By sphere 2008XXV. Prospects for future growth/successCadbury after al l this experience still has a chance of more progress and an opportunity to diversify and entering recess marketsIt could develop more products like Cadbury biscuits and ice creams like other competitors.ConclusionsCadbury is a well established company with about 7 operating units in 60 countriesCadbury has a very high market share in the chocolate marketIt is diversified and sells products in three different categoriesAppendixCash flowing for Cadburyhttp//4.bp.blogspot.com/_9SoEE9d_aQo/Sw68XPkf-4I/AAAAAAAAB8c/wJL98V4SnKE/s1600/EPS.jpghttp//highway6.com/images/c0f8b151e2333b730555362330b6e3b7.pnghttp//content.edgar-online.com/edgar_conv_img/2009/01/28/0001193125-09-012521_G35102G94X79.JPG