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Table of Contents
Serial Number
Heading
Page Number
1
Cadbury
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Situational Analysis
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3
PESTLE Analysis
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4
Core Competencies
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SWOT Analysis
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6
Product
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Marketing Objective
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Segmentation
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Targeting
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10
Marketing Mix
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11
Marketing Budget
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12
References
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Appendix
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Cadbury
Cadbury is a British confectionary company which is head quartered in Uxbridge Business Park,
Uxbridge, London Borough of Hillingdon, England. It was controversially acquired by Kraft Foods
in February 2010. The Dairy Milk bar was launched in 1905 with a higher proportion of milk
than other chocolates and it was an instant success. (Cadbury, 2011) Cadbury does not only
produce chocolates but it has also expanded its product line to cakes and biscuits like as
Cadbury Mini Rolls and Cadbury Digestive Biscuits, drinks like as Cadbury Drinking Chocolate
and ice creams and desserts such as Cadbury Chocolate Mousse. (Cadbury, 2011)
Situational Analysis
External Analysis
PESTLE Analysis
Pestle Analysis stands for “Political, Economical, Social, Technological, Environmental and Legal
Analysis”. PESTLE examines the impact of these factors and the way that they inter play with
each other on the business. The results can then be used to take advantage of opportunities
and to make a contingency plans for threats when a company is preparing business and
strategic plans. Thus, it is a useful strategic tool for understanding market growth, market
decline, the business’s position and the potential and direction of operations (Cooper, 2000).
Political
Cadbury has been in business since a long time now. it is one of the seniors now. It has
operations worldwide and it has improved the economy of a lot of countries, developing and
developed both. Therefore, any political change is easily adjusted by Cadbury. The only
concern for Cadbury is to keep an open for any change in any of the countries where its
operations are based regarding food labeling and international trade.
Cadbury should also be aware of the Food Safety Acts of various countries that it is operating
in. It also needs to make sure that none of its companies are breaking any law in production like
as paying under the minimum wage. Otherwise scandals and law suits could greatly hurt the
company’s reputation.
Economic
Economic activities easily affect the costs incurred by companies along with the funds that are
available to them. It also has a crucial affect on the demand (Thompson, 2005). Cadbury is
making a big contribution to economies of the foreign countries as well as its own base country
since chocolates are one thing that people will never stop having. However, the economic
downturn which is caused by recession globally has affected Cadbury like it has affected other
confectionary companies and industries.
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Social
The social environment includes the demands and choices that are seen to change due to a lot
of factors like as world of fashion, an individual’s income and any change in the environment
that might affect an individual (Pearce, 2005). Many people generally like sweets. Moreover, a
lot of people prefer eating sweets after a meal. However, there are individuals who might not
prefer consuming chocolates due to health factors.
Since Cadbury is a multinational company, due to social changes in the foreign countries that
they operate in, pricing and promotion strategies have to change sometimes. This increases
costs for Cadbury. Along with that, great care has to be taken when an advertisement in English
is changed to some other language.
Along with that Cadbury takes great care in involving itself in Corporate Social Activities. It has
involved itself in Projects like as “Major Redevelopment at Bourville” where the commitment to
the area can be seen through major redevelopment work and “A Well a Day in Ghana”, where it
developed wells in Ghana, the source of Cadbury cocoa (Cadbury, 2011).
Technology
Technology has been widely recognized as part of organization and the industry part of the
model for the creation of competitive advantage. Production of Cadbury is high due to high
technology machines and factories enabling high quality mass production. Moreover, media
such as internet, television and radio enable Cadbury to large amount of advertising for its
products. Internet alone is a good place to sell goods even confectionary items. It provides a
new consumer group increasing the overall sales for the company.
Legal
Today, world over, legal issues are being given great importance. Hence, Cadbury has to
introduce more legislation to ensure that workplace is proper for its employees, wage and
other benefits are being given accordingly and this increases costs for Cadbury. However, laws
regarding counterfeits mean that any company who imitates Cadbury’s products and packaging
can be sued. Legal laws today have also ensured that no unfair monopoly exists in market for
competition to thrive.
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