Analysis of the Company Cadbury Enterprises Limited - Essay Example

?An Analysis Of A Current Product Portfolio And Recommendation Of A New Product For The UK Market, Taking Into Account The Marketplace, Target MarketAnd The Current Product/Brand Portfolio Table of Contents Table of Contents 2 Introduction 3 Current Product Portfolio 4 Targeted Audiences 5 Marketplace and Environment in the UK 5 New Market Opportunity 7 Recommendation for New Product 9 Conclusion 11 References 13 Introduction Cadbury Enterprises Limited is a private company and one of the largest manufacturers of chocolate and cocoa products. It is a British multinational company established by John Cadbury. Initially, it was a small grocery shop of cocoa and drinking chocolate. Later John Cadbury rent a small factory in Birghingam and started manufacturing his own products of cocoa and different types of chocolate. Historically, company was given a royal warrant by Queen Victoria and also declared it as the official manufacturer of cocoa products for the monarch. Later in 1861, the business was taken over by John’s son due to his deteriorating health condition. Subsequently, the company started innovating newer products such as the milk chocolates made up of dried milk powder, sugar, cocoa solids and cocoa butter. The company increased its product portfolio primarily to compete with the leading Swiss milk chocolates in the market (Poulter, 2013). Even though Cadbury has a diversified product portfolio but its ultimate production has always been the chocolates and cocoa products. Their product range comprises from varieties of chocolates in the form of Christmas treats, bars and boxes to the drinking chocolate. The company also specializes on the products made up of vegetarian ingredients (Cadbury, n.d). The vegetarian products are free from the meat based items and are preferable by most of the customers who share vegetarian eating habit. This report focuses on the product portfolio of the company and makes recommendations for the launch of a new product after considering the factors such as market opportunities, marketplace scenario and completion associated with the UK market. Current Product Portfolio Cadbury possesses a wide range of product portfolio among which the major products include Dairy Milk, Milk Tray, Flake, Creme Egg and Roses (Woodgrange Technologies Ltd, 2012). Initially, the company started its operation with as a small chocolate selling business but later after the 100 years of its business, the company entails under its umbrella wide variety of products. If the history of the products is to be reviewed, then it can be observed that all the products were developed by the company primarily during the year 1905- 1938. The company has constantly been involved in adding products under its umbrella in order to strengthen its product portfolio [Dairy Milk in 1905, Milk Tray in 1915, Flake in 1920, Creme Egg in 1923 and Roses in 1938] (Macmillan Publishers Limited, 2013). The company has also diversified its product portfolio from chocolate related brands to many other stronger brands such as Bourneville, Green & Black’s and Jaffa along with other categories of chewing gums and candies which has proven to strengthening its product portfolio to a considerable extent. Cadbury has been focusing on the expansion of the products to make its market stronger and also with an intention of providing its customers with the best products. It is worth mentioning that Dairy Milk is the most preferred and popular brand of chocolate among the people almost all over the world. It was launched in the year 1905 with an intention of expanding its business. Notably, the products were produced by the company with lower costs within the intention to capture the customer’s interest along with earning substantial profit for their sale. . The company has been manufacturing the products which are enjoyed by people of all age (Macmillan Publishers Limited, 2013). Targeted Audiences The targeted audiences for Cadbury include people from all age group. Almost all the people including children and adult are very much acquainted with the varied products of the company. The major targeted customers for the company’s products can be considered children young and adult having taste for chocolate. The nutritional ingredient of the aforesaid products is perceived to attract the major portion of the targeted audiences in the UK market. Since Cadbury is a well known company existing for several years in the global market, it will be very easy for them to identify and approach to that group of audiences who have been targeted for the product. It has been observed in the earlier description that the main targeted consumers are the young adults because they are the group of consumers who have interest and taste for chocolate. In this context, the products offered by the company with different tastes have largely been able to considerable number of customers. It has been observed that their products are very much popular among all the age group people around the world. Cadbury has launched many of its products in the market of the UK, Russia, China, India and the USA on the basis of the capacity of the market with the intention of attaining future growth and development and also based on the volume of the targeted audiences in that specific market. It has been identified that Cadbury is a company which is very much selective of its market state as it emphasizes on the capturing of a leading position in all its product categories marketing all over the globe (Macmillan Publishers Limited, 2013). Marketplace and Environment in the UK Market analysis is of prime importance prior to the process of launching of any new product in the market. This activity is basically conducted to identify the various factors of the current market and study the specific requirements of the customers. In other words, analysis of market acquaints a company with prevailing business environment in the selected marketplace. It is worth mentioning that the individual tastes and requirements might vary depending on the differences in the market. The United Kingdom has been a major market for the confectionary business. The major portion of the per-capita income came from confectionary business. The countries economy was benefited by the confectionary industries that were operating in the country. Since a long period of time, the chocolates and snacks were preferred by the people of UK. In the past few years, it was observed that the annual revenue earned from the confectionary business in the UK was more than 4%, in case of gums it was more than 10% and trident was more than 23% (Performance Highlights, 2006). This data shows that the confectionary business in UK provides ample scope for Cadbury to flourish its business activities. Cadbury also occupies a significant portion of confectionary market in the UK. At the same time, Cadbury is faced with numerous competitors in the UK market. . The major competitor Wrigley existing in the UK market and had acquired the position of the largest manufacturer of chewing gums. Consequently, competitors like Wrigley and Nestle can be argued to impose significant threats for the operations of the business of Cadbury in the present as well as in the future years. An established market place is of high priority for launching a new product. These types of market usually give rise to extreme competition which leads the company to develop innovative technologies or improved strategies to promote its product into the market. The United Kingdom has been recorded as one of the countries which yield the highest per capita consumption from the confectionary businesses (National Statistics, 2012). The confectionary business in UK contributes a major proportion to the sales revenue of the nation. If the history of the confectionary market in the UK is to be analyzed, then it can be observed that few of the Cadbury brands such as Dairy Milk has already acquired a significant position in the market. In the current market scenario, it can be said that in such a market with strong competition of the popular brands there might come certain difficulties in launching a product if a proper strategy and innovative ideas have not been adopted by the company. Some of the market research conducted in the UK market explains that the confectionary items have contributed a lot to the nation’s economy. Cadbury has also been long serving the citizens of the country along with a major contribution in its economical growth and development. Cadbury has long been applying the philosophy of sustaining in the confectionary market as a strong driving force and continue to serve its customers by providing the best of the products. This philosophy and the already existing brand image of the company will help a lot to the company in developing innovative ideas and launching of a newer product (Woodgrange Technologies Ltd, 2012). New Market Opportunity It has already been studied that the UK market place for the confectionary business is very much favourable and the market economy of this country is already well developed and set up for the confectionary business. Cadbury being initially developed in the United Kingdom has a lot of scope for the launch of a product. Its strong brand image and familiarity with its customer’s tastes will provide a better opportunity for the company in promoting newer products in the market. It can also be stated that confectionary industry in the UK is continuously increasing which providing greater opportunities for the company like Cadbury to expand its business and earn substantial profit from its operations in this particular market. Apart from the opportunities, there are certain challenges that may restrict the company to gain the maximum benefit from introducing new product. Notably, during the development of a new product in this market, the barriers may emerge in the form of increasing competition and the health consciousness of the people. In the modern market scenario, there is a rapid increase of competition arising from other companies. The major companies from which Cadbury is likely to face threats of competition are Mars, Nestle and Wrigley which already existed in the UK market. The people of the UK are already in consumption of the products of these companies. Thus, in that particular situation Cadbury must strive hard to create its position among the people in case of the development of a newer product (European Commission, 2010). The other barrier is the health consciousness prevailing among the people. It was studied in the earlier description that nowadays the adult are very much sensitive about the healthy diet of their child. In this context, Cadbury must also consider the aspect of health and nutrition while planning for introducing new product. This strategy will help the company to meet its targeted customers expectations and preferences along with attaining its broad business goals. Irrespective of these barriers, Cadbury can be successful if innovative ideas are being applied in the production of newer product. According to the study conducted related to the market segmentation in the UK, it has been observed that this market type is be suitable for the development of a new product and hence Cadbury might not face much problem as it has been already operating in the same market for numerous years. The market of the UK is not alien market for the company and much of the market research is not required in case of the company. It had conducted much market research prior to the promotion of a product in the earlier days (Woodgrange Technologies Ltd, 2012). Those researches had recorded a mark for the successful promotion of the product along with meeting the desires of the targeted people prevailing in the market. The United Kingdom has always been a developed market for the confectionary and snacks market wherein Cadbury has been already acquiring a significant position. Thus, it can be said that Cadbury might not face as such challenges in the development of its product portfolio repeatedly in the UK market. Recommendation for New Product The product portfolio of Cadbury covers the major proportion of the global market. Its diverse product line includes chocolate for the children as well adults, drinks, and vegetarian products. There are certain factors which can promote Cadbury to launch a new product in the UK market such as brand image, customer’s tastes and preference and the population or the age group. Brand image plays an important role in creating demand for the product. Responding to this element, it can be argued that Cadbury already possess strong brand image amid the customers that would benefit the company while introducing new product. The evident from the history reveals that Cadbury has been specialized in manufacturing the products with the usage of high quality cocoa beans and additional ingredients of nuts and healthy cocoa butter. For this reason, it will be quite easy for the company to attract customers towards its products with less concern related with the product quality. However, Cadbury must manufacture its new product in accordance to these healthy ingredients for marking a success in the UK market. Above all, it is crucial for the company to identify preferences and taste of its customers prior to introducing new product in the UK market. The last of the factor is the population or all the age group of customers. Cadbury must manufacture the product in such a way that it shall be suitable for the children, adults and the old age group of people along with keeping the demand for the factor stable in the market (European Commission, 2010). From the study of the market environment of the UK, it has been observed that the people in the country are more health consciousness. Taking this factor into consideration, Cadbury can opt for the product which has fewer implications on the health of the consumer. The chocolates contain high calorie and nutrients which are sometimes harmful for the consumer. The major advantage that can be derived from the UK market is that it is the country where the company already have strong brand image position. However, it would be crucial for the company to engage in the promotional activities for familiarising customers about the new product introduced in the market. The advertising campaign is the most effective tool while launching a new product. As per the study of the market scenario of the UK, it can be recommended that Cadbury must concentrate on targeting different group of customers that has been less focussed by its competitors. Identifying such group and introducing product for this group will aid the company to take the advantage of first mover. Correspondingly, it is recommended to Cadbury to develop product that considers the health of its customers as well as meet the objectives of the company in the form of increasing profitability. Correspondingly, it is recommended to Cadbury to introduce products that are of low calorie but are superior in term of its quality. More specifically, it is proposed that the company should introduce the product that can be consumed by all age group of customer including children young and adult. However, the proposed product for the company along with meeting the preferences and taste of children, young and adult it should also be consumable by diabetic customers who have the taste for the chocolate but are seldom allowed to enjoy it and also is consumable by the other age group people ranging from the children to the adults. This product would gain a huge attention by the people of UK. It will also be a unique product in the UK market and might be in the coming future it can capture the major portion of the global market. The major targeted group of people for this product would be those suffering from diabetes but on the other hand it can be consumed by the non-diabetic people also. The packaging of the product must be in a very attractive manner. The organisation’s concept of the purple and golden combination of packaging strategy of the Cadbury can be implemented in the case of this new product. It is worth mentioning that the company should pay due consideration related with the ingredients used in the new product. It is believed introducing such product will greatly help the company to attract considerable consumers towards its new product and avail the benefits of increased sale of the new product. With the launch of such product, Cadbury can fulfil the desire of the people suffering from diabetes as they wish to have chocolates but cannot consume as most of the chocolates contain carbohydrates in high amount and artificial sugar which is harmful for the diabetic patients. The adult can also rely on this product as they need not worry about the health of their children in consumption of this chocolate. At the same time, the inclusion of the proposed product will also strengthen the product portfolio of the company. Conclusion The aforesaid study explains the current market scenario of the United Kingdom and recommends the company regarding the launch of a new product. The study of the market segmentation prevailing in the UK says that it is the suitable market for the confectionary and snacks business. The major part of the per capita income of the country comes from the confectionary business (National Statistics, 2012). Cadbury had started its business initially from the same country and also successful in creating its own brand image. It had provided its customers with a variety of products ranging from the chocolates to the drinks. It has also marked a rapid success in the launch of the product named Snowflake in the earlier days (Woodgrange Technologies Ltd, 2012). The targeted audiences set for the new product are the diabetic patients and the adults who decide about the healthy diet to be given to their children. The study has also ascertained some of the factors such as the brand image, demand for the product and the customer’s tastes and preferences which should be kept in consideration while promoting a new product into the market. After the study of the previous market research conducted by the company in the UK market, it has been observed that all these factors are well maintained by the company in the global context. Cadbury, being a larger brand and UK being its country of origin, might not face much severe challenges while promoting a new product in the same market. The product that has been recommended for manufacture will gain a huge consumer as it will contain healthy nutrients and the most important thing is that it can be consumable by the diabetic patients as well. If the company focuses on the attractive packaging of the new product and communicate its usefulness it can gain the sole attraction of the customers which would eventually contribute towards the expansion and increased revenue for the company. References Cadbury, No Date. Products. Christmas Treats. [Online] Available at: http://www.cadbury.co.uk/products [Accessed November 13, 2013]. European Commission, 2010. Case No Comp/M.5644 - Kraft Foods /Cadbury. Regulation (EC) No 139/2004 Merger Procedure, pp. 1-55. Macmillan Publishers Limited, 2013. Case with Questions.Cadbury1. [Online] Available at: http://www.palgrave.com/business/burnsentrepreneurship/students/cases/cadbury1.pdf [Accessed November 13, 2013]. National Statistics, 2012. Food Statistics Pocketbook 2012 - in year update. Foreword. [Online] Available at: https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/183302/foodpocketbook-2012edition-09apr2013.pdf [Accessed November 13, 2013]. Performance Highlights, 2006. A Passion for Winning. Annual Report & Accounts 2006. [Online] Available at: http://www.skillsspace.co.uk/docs/Cadbury_Report_LoRes.pdf [Accessed November 13, 2013]. Poulter, S., 2013. Cadbury Loses Five-Year Battle With Swiss Rivals Nestle To Trademark The Colour PURPLE On Its Chocolate Bars. Company Introduced Distinctive Purple Colour As Tribute To Queen Victoria. [Online] Available at: http://www.dailymail.co.uk/news/article-2443740/Cadbury-loses-year-battle-Swiss-rivals-Nestle-trademark-colour-PURPLE-chocolate-bars.html [Accessed November 13, 2013]. Woodgrange Technologies Ltd, 2012. Using Market Research to Launch a New Brand. The Irish Times. [Online] Available at: http://www.business2000.ie/pdf/pdf_4/cadburys_4th_ed.pdf [Accessed November 13, 2013]. Read More