International Business: Cadbury Dairy Milk - Case Study Example

International Business AFFILIATION: Table of Contents Table of Contents 2 Introduction of CadburyDairy Milk 4 Competitive advantage of Dairy Milk globally 5 Sources of competitive advantage 6 Recommendations for sustaining competitive advantage 9 Conclusion 10 References 12 Cadbury Dairy Milk is the ultimate brand which has been performing with excellence in UK and even in international markets. It is the long-term and clear vision of the management team which has allowed the brand to prosper successfully and prosperously in the world. In order to maintain an edge in the market, the company has shifted its focus to customers. Every suggestion of the customer is given importance because at the end they are the primary stakeholders of the firm. Moreover, the consistency in taste and quality of Cadbury Dairy Milk globally is the key driving force of its victory. As sustaining a competitive advantage in the business world is challenging, it is recommended that Cadbury Dairy Milk undertakes few initiatives. The foremost thing required is to exploit the virtual platforms so that it can penetrate deeply in online avenues. Then, it should consider the option of introducing a unique product line for health conscious customers. Furthermore, it needs to organise events for kids and adults so that both target groups are provided beneficial information and can avail these occasions for enhancing their experience with the brand. Even a separate web page for kids can be created so that it can enhance their knowledge and learning power. Hence, it can be said that Cadbury Dairy Milk is doing a marvellous job globally but it still needs to undertake few measures to strengthen and sustain its competitive edge in the industry. Introduction of Cadbury Dairy Milk One of the leading chocolate brands which has achieved global success is Cadbury Dairy Milk and it is among the astonishing achievements of Cadbury. The introduction of this chocolate opened a range of unexploited avenues for the company and the product has become the major driving force of all of its latest offerings (Cadbury, 2014). In order to present the customers a consistent level of offerings, it is crucial for the organisations to develop their business plans strategically (KPMG, 2012; Pesjali, 2011). According to Afuah (2009), competitive advantage are the skills, capabilities, tools, assets, competencies or resources which are solely possessed by a firm and this source of competitiveness is challenging for the rivals to copy or acquire. Thus, the enterprises have to make sure that they remain well-informed about market changes so that their basis of competitive advantage is in alignment with the modified business paradigm (Handerson, 2011). Recently, there has been an increase in the demands of consumers as they are looking for unique products at a fast pace. Furthermore, the famous brands have to remain competent and proactive in their approaches by determining the latest needs of their target markets and design and deliver the offerings in alignment with the requirements (Helfat et al., 2007; Twarowska & Kakol, 2012). Likewise, Cadbury Dairy Milk has stood still during turbulent times as it enhanced its efforts of excelling in the confectionaries industry by introducing differentiated choices to the consumers. Among the breakthrough developments done by the company, the pre-eminent one is the creation of Cadbury World so that there can be direct interaction with the consumers (Cadbury, 2009). Cadbury experimented with a new idea in 1905 by increasing the milk proportion as compared to the amount utilised in previous bars of chocolate and made the first Dairy Milk bar in England. By the end of 1914, Cadbury Dairy Milk gained recognition of being the best-selling product in UK. The person involved in the development process commented that a range of names were suggested for the product but a daughter of customer recommend ‘Dairy Milk’ and it stuck instantly. In order to augment the product line, the company launched ‘Dairy Milk Fruit and Nut’ in 1928 and ‘Dairy Milk Whole Nut’ in 1933. At this point, Cadbury was ranked as the paramount brand in UK (Cadbury, 2014). In order to maintain competitive advantage, the companies have to polish their existing offerings and try to bring about changes in the product (Magretta, 2011; McGrath & Gourlay, 2013). Cadbury has capitalised on three areas for gaining top customer’s mind share i.e. its slogan “glass and a half”, purple colour which is evident in all of its marketing activities and similar taste in all products across the globe (Putsis, 2013). Competitive advantage of Dairy Milk globally Even the uniqueness of Cadbury is embedded in its specialised flavours because they are produced with perfection after mixing fresh milk, sugar and mass of cocoa in appropriate amounts. The marvellous taste of Dairy Milk is developed in this first stage of cooking so that consistent level of quality and flavour is given to the customers. Despite all the developments in the production processes of Cadbury, the core recipe of Cadbury Dairy Milk is similar worldwide. It has even revamped the operational methods by availing the technological advancement opportunities so that it can outclass in the industry and make sure that competitive advantage is effectively sustained (Raynor & Ahmed, 2013; Romero & Martine-Roman, 2012). In order to make sure that the consumers are provided a range of offerings in the product line, Cadbury tries to meet their expectations by introducing new and innovative flavours coupled with varying sizes. It has an array of choices for the customers i.e. suitable for all ages and occasions. The assortment comprises of quick snack items (Crispello, Cadbury Flake bites, Cadbury Dairy Milk Buttons, Cadbury Mini Drops), Self-indulging treats (Chocolate bars, Blocks of Chocolate, Bubbly Range, Chocolate Bars) and gift boxes (Milk Tray Boxed Chocolates, Rose Boxed Chocolates, Favourites Mini Blocks) to be shared with friends and families. In addition to the developments of the products in alignment with the customers’ needs, it is imperative to communicate the brand image by employing the compatible tools (Barney & Hesterly, 2010). Cadbury Dairy Milk has been diversifying the product base by introducing attractive options to the customers so that they can have an excellent range of choices for divulging in the sweet temptations of chocolate (Massa & Testa, 2009; Zhou, Brown & Dev, 2009). Also, the social media, Corporate Social Responsibility (CSR) activities, occasion specific events and entertainment created experiences are among the tools which are employed by the firm for strengthening its presence (Kraaikenbrink, Spender & Groen, 2010). Similarly, Cadbury Dairy Milk keeps on changing its advertising and marketing activities so that the customers are reinforced about the product in unique way. Mostly, the message is same in advertisements i.e. having something sweet to celebrate happy moments but there is always a new concept in them so that the customers are eagerly waiting for next promotion. For instance, it initially advertised on Televisions to persuade the customers to try new offerings. Later on, it started guerrilla marketing by publicising on billboards, creating purple themes in shopping malls and public places and placed ads in youngsters’ magazines. Sources of competitive advantage Since managing an international business is a challenging endeavour, the organisations have to determine the importance and significance of its capabilities (Chernev & Kotler, 2012). Every company has to perform its self-assessment to identify the sources of its competitive advantage in the existing market (Keller & Price, 2011) and whether the same can be replicated in the new market or not (Breznik, 2011). An analysis of Cadbury Dairy Milk reveals that its strategy is simple and straightforward which has assisted it in creating the similar brand image across the globe. For every organisation, there is an abundant array of options for developing the sources of competitive advantage such as IT (Hazen & Byrd, 2012), production processes (Cheng & Krumwiede, 2011; Moreno, Lorente & Rio, 2013), business intelligence (Baretto, 2010; Hemmatfar, Salehi & Bayat, 2010), marketing activities (Kumar et al., 2011), customised services (Jimenez-Jimenez & Sans-Valle, 2011), efficient SCM (Hamidizadeih & Ttaheri, 2013), competent workforce (Ren, Xie & Krabbendam, 2010; Rumelt, 2011) and others. Even some firms combine the most compatible sources which can help them to thrive competitively in the business environment. Cadbury has developed its competitive advantage in the supply chain as it has created one in which every activity of the back-end is synchronised. Moreover, it permits the company to monitor the quality, stock level and product availability in all of its global outlets. Since it has adequate control on the processes, Cadbury is assured that the customers are provided consistent quality throughout the world. Recently, it has started customised services in specific regions so that it can offer the respective markets the offerings in compliance with their wants. Furthermore, the competitions are organised so that the young people are excited and can develop associations with the brand (Bratic, 2011). In order to gain a competitive advantage in the chocolate sector of the confectionaries industry, the key sources employed by Cadbury Dairy Milk are proactive Research and Development (R&D) department (Al-Alak & Tarabieh, 2011), open working environment, robust new product development and innovation initiatives (Keller, 2012), consistent level of quality, integrated and collaborative SCM and proficient responsiveness to market dynamics. Additionally, it had undertaken a range of projects to strengthen the relationship with customers such as organising of events during the year like Mother’s Day, Father’s Day and etc., Cadbury World, loyalty programs, valuable offers and many more. Cadbury has developed a specialised IT framework so that it can manage its operations effectively. As the latest trend is the creation of learning organisations so that the knowledge can be shared and valuable data is utilised strategically, the company has implemented a structure which allows the employees to make contribution in enhancing the brand reputation (Hana, 2013). Furthermore, with the help of computing systems such as cloud computing, the corporation can retrieve the information from anywhere with ease and make the strategic decisions quickly (Macik, Jozwik & Nalewajek, 2012). This aspect is also a source of competitive advantage for the brand as it has a harmonised framework for effectively managing the business operations. In the last five years, the brand has been to capitalise on its brand recognition as the loyal customers are eagerly waiting for the company’s innovative offerings and promotions. Moreover, it has changed its packaging so that it can reinforce the image and penetrate more deeply in the respective markets. In order to enhance the image, the brand can assess the option of introducing healthy treats so that health conscious customers can fulfil their chocolate temptations. In order to show its responsibility towards the community and environment, it arranges seminars on various health related topics so that people are made aware about various chronic diseases. For protection of the environment, it has revamped the production facilities in such a way that there is no wastage dumping, carbon footprint is supported, recycled products are consumed, materials used such as packaging can be recycled and others (Cadbury, 2014). Hence, it can be said that Cadbury Dairy Milk has clarity about its future direction and it is moving ahead with a strategy in alignment with its long-term vision. In order to maintain the competitive edge in the industry, it is mandatory for the organisations to analyse the latest market trends so that they can compete effectively and are able to respond to the rivals with strategic moves (West, Ford & Ibrahim, 2012). Furthermore, it is imperative for the firms to assess the sources of competitive advantage on an ongoing basis so that they don’t lag behind from their rivals. It is recommended that they invest their money in those resources which cannot be imitated by anyone (Huggins & Izushi, 2012). Recommendations for sustaining competitive advantage In order to be assured that Cadbury Dairy Milk is able to maintain and strengthen its competitiveness in the industry, it is imperative to keep on adding unique features in its offerings. The differentiation can be further augmented in the existing products by adding new variants, repackaging the present offerings, revamping the brand image, offering customised services, dealing with customers on one-to-one basis, providing them specialised products and many more (Diaconu,, 2012). However, the following set of recommendations are feasible and practical for Cadbury Dairy Milk to penetrate more deeply in the market: 1. Exploit the online avenues – Since social media is the modern trend in the business world, Cadbury Dairy Milk should develop a separate web page for this specialised product. By integrating the unique website, it will be able to enhance the brand image and provide product related information with proficiency. Moreover, it should strengthen its presence on social networking sites and write Cadbury Dairy Milk blogs regarding food and nutrition. Also, it can reward those customers who allow the company to expand its customer base. 2. Introduce a differentiated product line – As there is robust growth of health conscious consumers who are looking for healthy alternatives for sweet indulgence, Cadbury can develop an entire range for this market. Also, it can initiate by introducing dark chocolate but later on it can add more variety in the form of nutty bars and low calorie bars so that people who are dieting or are in search of nutritious alternative can consume these products. It will even allow the brand to augment the brand and reinforce the image in positive way. 3. Create special pages for kids – Since it is targeting mostly kids by offering them special products in compliance with their needs in UK, it can introduce a web page specifically for kids so that it can enhance their knowledge base. Additionally, some IQ related games can be made available for them so that they can improve their intellectual capabilities. Even those kids will be given gifts such as coupon cards for winning specific number of games or scoring maximum marks in the tests. 4. Organise more fun-filled events – As the main theme of Cadbury is sharing happiness, it should consider the feasibility of organising two to three days events in every part of the world where it is present. These events can be held during summer and winter vacations so that the children can enjoy these occasions. Furthermore, two days events will be held for adults to create awareness about parenting, chronic diseases, living a healthy lifestyle and importance of exercise for remaining fit. Conclusion Cadbury Dairy Milk is the recognised product globally which has been excelling successfully all over the world. The main sources of competitive advantage for the firm are unique and innovative product offerings, consistent quality level, fulfilling brand commitment and valuing the customer needs. 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