Cadbury on the Irish market

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Cadbury on the Irish market

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Abstract

Cadbury Schweppes is a global confectionery manufacturer and a soft drink producer in North America. The company is the number-one worldwide for confectionery products. The company is headed by Todd Stitzer, the Chief Executive Officer (CEO), and Sir John Sunderland, the Non-Executive chairman. In March 2008, Cadbury Schweppes has decided to split up its two business lines: soft drinks and confectionery. The confectionery business is organized into four market segments which are called regions. These four regions are BIMA (Britain, Ireland, Middle East and Africa); Europe; Americas; Asia and Pacific. Each region is focused on commercial operations within its geographical and product area. We will focus this paper on the Irish market, which is part of the BIMA region, and its development for the next three years. Cadbury is a chocolate confectionery supplier on the Irish market. We can characterize the Irish chocolate market in terms of products: boxed chocolates, chocolate countlines, chocolate straightlines, molded bars, novelties and others chocolates. The market is valued according to retail selling price (RSP) and includes any applicable taxes. Before we begin to consider new strategies of the company for the period 2008-2011, we need to look at the results of 2007.

Analysis of the global industry of confectionary.
1. PESTEL analysis.
2. SWOT analysis.
Current position in the market place.
1. Boston Consulting Group (BCG) growth-share matrix.
2. Competition environment.
The various strategic development directions open to the company.
1. The TOWS Matrix.
2. Strategy clock.
3. Motives for strategies.
4. Methods of Strategy Development.
5. Development directions.
6. Success criteria for strategic options.
Bibliography.

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[...] In conclusion we saw that Cadbury is the leader with of market share on the Britain confectionary market. This market represents a sure value for the companies. Even if there is a lot of competitors such as Nestlé, Mars, or Altria Group, some studies have proved that chocolate is in some way a potential addict product. This fact means that confectionary companies will always have a high demand from the customers. The Cadbury Company has succeeded to develop an efficient strategy based on the innovation, the market's trends and the customer's needs. [...]

[...] aim is to identify the extent to which the current strengths and weaknesses are relevant to, and capable of, dealing with the threats or capitalising on the opportunities in the business environment.” “Overall, a SWOT analysis should help focus discussion on future choices and the extent to which an organisation is capable of supporting these strategies.” (Johnson et al., 2005: 102) STRENGHTS WEAKNESSES Cadbury owns more than 40% of Cadbury doesn't have any range of market share in Ireland and tend free sugar or fitness products. [...]

[...] The Irish chocolate confectionery market is extremely concentrated, with the three leading players: Cadbury-Schweppes, Nestle, and Mars collectively accounting for market share in value terms. These companies have diverse product lines, and they are present in many geographical markets. These factors defend their margins against local fluctuations. Switching costs for consumers and retailers are low, however, products differentiated both by inherent characteristics and by strong branding should allow players to maintain their hold on consumers, and so weaken rivalry. In a business where automated, high-volume manufacturing is the norm, capacity increases are relatively easy to implement, and fixed costs are high: both factors drive up rivalry. [...]

[...] The Indian business of Cadbury has 71% market share in chocolate, and also sells sugar confectionery. The Japanese business sells mainly gum under the Recaldent and Clorets brands. The company has manufacturing facilities in Australia, New Zealand, India, Japan, Thailand, China and Singapore. In Australia, confectionery revenues grew by in 2006 with successful launches in premium and dark chocolate and consistent growth of The Natural Confectionery Company. In the beverages section, the share of non- carbonates increased due to the relaunch of Spring Valley. [...]

[...] this sense the TOWS matrix not only helps generate strategic options it also addresses their suitability.” (Johnson et al., 2005:341) TOWS Matrix STRENGHTS WEAKNESSES OPPORTUNITIES SO Strategic options WO Strategic options Cadbury can strengthen Cadbury need to take their leader position in advantage of their the market by developing brand to generate their communication on the products heavily chocolate benefits branded to be popular (psychological) and, the with consumers in pleasure and happiness order to overcoming that it procure to the the image of creator eater. [...]

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