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Cadbury Plc. is a confectionary giant holding first or second positions in more than twenty of the world’s largest confectionary markets, with an exceptionally good portfolio of toffee, chocolate, energy drinks and other milk products. In 1824 a shop was opened by John Cadbury in Birmingham for the sale of chocolates & some other cocoa products, thus begun the quest of Cadbury to conquer the taste buds of millions. In January 2010, Kraft Foods took over Cadbury Plc.
Cadbury is the official treat provider of the 2012 London Olympic & Paralympic games. This will give exclusive marketing opportunities to Cadbury products in the Olympic city. Cadbury has a very good reputation in the market, they believe in the business culture ‘Doing good is good for business’. Currently Cadbury functions in more than sixty countries around the globe with around 35000 suppliers and employee population of around 45000 people.
OBJECTIVE OF THE RESEARCH
This research report is done to discuss the influence on the decision making in marketing of the Cadbury Plc. by the macro environment for the last one year. SWOT & PESTLE analyses on Cadbury Plc. were carried out to solve queries raised during the research. SWOT analysis will help Cadbury Plc. in decisions making processes in their future years. This research work also illustrates marketing strategies experimented by the Cadbury Plc. to ensure their position in the confectionary market.
Head office of Cadbury Plc. locates in Middlesex, United Kingdom with organizational network coverage all around the globe. In confectionary industry Cadbury owns most trusted & popular brands like Dairy Milk, Eclairs, Halls, Bourn Vita, 5 Star, Perk, etc. Cadbury products are available in over sixty countries in the World. Cadbury has a very strong momentum in its emerging markets such as India, Africa & Middle East. In developed markets like UK & US, Cadbury performs its robust growth without losing their market monopoly.
RESEARCH PLAN: Data Collection in investigative approach is performed as the research plan for this report.
DATA GATHERING & ANALYSIS: Sources of data is classified into Primary and Secondary sources of data. Primary sources are research papers or theories. In this research information are collected from secondary sources such as journals, management magazines, books from college library, websites. SWOT & PESTAL analysis were carried out to solve some queries while dealing with the research.
Macro environment has a good command over marketing decisions taken by an organization. In this case we are checking whether the macro environment has a positive impact on the marketing decision making of Cadbury or not and how. Macro environment deals with elements which stay outside the organization so management cannot control them. Macro environment consists of countless factors which can affect an organization’s decision making, business strategies, product development & altogether performance. Examples of some of these factors are variation in price, demographic factors, strategy of competitors, interest of the customers, economical factors, government orders, demand, supply, technical issues etc.
PESTEL ANALYSIS: THE MARKETING OF CADBURY
Political conditions of the area where the company market its product can affect the business of that particular organization greatly. Political uncertainty of the locality can disturb the business badly. Sometimes organizations can make use of the political situations to develop their business. Thus the political factors can sometimes harm the organization & sometimes favour the organization.
In UK the government is much concerned about the health issues of the people. Government spends millions of pound every year on health issues like obesity & heart diseases. Chocolate can be a reason for above mentioned health disorders, the government is very strict in the implementation of food safety act. In 2002, Cadbury India Ltd. faced objections from political parties of India after telecasting the advertisement of their new brand, Temptations. Indian print & politics accused, Cadbury is making advantage on Kashmir issue. So the company should have good awareness on all political issues which can affect their business to keep their reputation.
Monetary factors are another important feature which can decide the destiny of an organization in a society. Economic instability of the surroundings will question the existence of the organization. Organization may force to compromise on their policies with respect to their economic background and also according to the economic factors in the locality. Economic growth, fluctuating value of money, inflation or deflation can decide an organization’s future.
The recent global economic crisis affected Cadbury Plc. and their products like other industries. Company was forced to reduce their production as the consumption of confectionaries reduced in a large scale. Multinational companies like Cadbury cannot follow same pricing for same product all around the globe as the economic situations & money value are differ with countries. A chocolate sold for £1 in UK cannot be sold for the respective converted amount in India as people cannot afford the pricing.
Peculiarities of the society such as culture, traditions, ethics, moral values, religion can make effect on an organization directly or indirectly.
Chocolates are still a luxury material to the poor who work in cocoa plantations in Ghana. Chocolate consumers in poor countries are very less in number as people think consuming an expansive confectionary in a poor society is against their moral values. Veganism prohibits the use of animals for food, clothing, consumption of milk, egg, dairy products etc. Chocolate is a dairy product and thus chocolate is an abandoned food for Veganists.
Scientific research resulted technological advancement in production techniques with postmodern tools and machines. This helped conventional production methods to have an upgrade according to the demand. Introduction of new effective technologies will increase the product quality as well product quantity this will help the organization to achieve their goals & objectives.
Latest technology is a must in the field of food & beverage producing companies. Cadbury always keep their eyes toward latest technologies which can be used in their organization. Effective & advanced packing methods are adopted to keep their products unique among other chocolate products. Cadbury has a skilled technical team to develop advertisements for showing in Television, Internet & other visual media. Cadbury also has a very good website with all details regarding their organization, products & history.
Rules or laws by the government come under legal factors. Iimplementation of new business regulations or taxation by the government can make trouble to the organization; in other hand favourable moves from the government such as relaxation of taxes will helpful for the organization. Companies should follow government regulations & laws strictly; violation of these rules will lead the company to have legal issues with the government. Other legal issues such as patent laws, quality maintaining & health will also affect the wellbeing of an organization.
In 2007 Wrigley filed a lawsuit against Cadbury in Australia; accusing Cadbury imitated patent protected hard-coated gum of Wrigley. Health of the citizens is a very important issue before the government. In 2003 a case was filed in Maharastra High court, India against Cadbury India Ltd. after confirming a worm infection in some batches of Dairy Milk.
Environmental issues & natural factors directly affect the business & production of an organization. Natural factors are unpredictable & uncontrollable by an organization. Natural disasters like earthquake, fire, storm etc. can affect organizations in a very bad manner.
Plastic is a non-biodegradable material. Cadbury Plc. use plastic covering to wrap chocolate products. After consumption of chocolates these wrappers are wastes and this pollutes the environment. Now the company is doing research regarding the use of Biodegradable plastic coverings as wrappers. Temperature is an environmental factor which can deform the shape & taste of chocolate products.
SWOT ANALYSIS ON CADBURY’S MARKETING
Identifying the Strengths, Weaknesses, Opportunities and Threats is a very important task in every industry. SWOT analysis is an effective strategy which is commonly adopted by organizations in medium & large levels. SWOT analysis plays a vital role in the prospective decision making of an organization. Company can work accordingly and come across a good result once they properly recognize the threats and opportunities. Strength of a company is the advantage they currently hold in the market. Identifying the weaknesses will help the company to take necessary steps to troubleshoot those failures.
Cadbury products are well recognized & well known for their outstanding quality. Chocolate brands of Cadbury Plc. have a very good reputation in the business world. Maintaining good relationship with the customer is a must for any organization. Due to Cadbury’s excellent customer association and product innovation, Cadbury has lifelong customers who trust in the tag of Cadbury. Cadbury products are being marketed in over sixty countries, giving them the opportunity of having the largest marketing network in confectionary world. Cadbury is the official treat provider of the 2012 London Olympic & Paralympic games. This will give unique privileges in marketing & product reorganization as official Olympic brand to Cadbury Plc. products in future business.
Cadbury products are pricier than local confectionaries. This will adversely affect the Cadbury products in poor economies & some emerging markets. Public expectation of Cadbury products is very high; this fact may put the company in pressure. In UK production cost of Cadbury chocolates is higher as their manufacturing is done within the country. Errors in packing & manufacturing processes cause microbial infections in chocolate products. Infection of Salmonella bacteria in Chocolate products is an example. Chocolate products are fatty, dietary options in chocolates are still unavailable.
Cadbury currently operates around sixty countries with very good business reputation. Company has the opportunity to widen their business in new markets. Cadbury products have a great brand value & customer satisfaction records, this will help the company to survive in critical situations.
Cadbury is the leader in confectionary business for the last many decades; this reputation is helpful to expand their product range to food & beverage industry other than confectionary business. Cadbury can take over other brands in their developed, emerging & new markets. This will help the company to have advantage in business. E.g.: Cadbury took over Green & Black’s the premium chocolate brand in May 2005.
Cadbury faces threats from Nestle, their competitor in confectionary business. Cost of production, transportation & raw materials are increasing day by day with respect to the economic uncertainty of the markets. Governments change laws / regulations for quality and production of food & beverages companies. Implementation of these new laws makes the company to cancel proposed marketing plans.
STUDY ON CADBURY’S MARKETING OBJECTIVES
PESTEL & SWOT analyses can benefit Cadbury Plc. in their prospective decision making. SWOT analysis on Cadbury Plc. describes the current status of the company in confectionary market.
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