Case Analysis: Cadbury Enterprises

Topics: Chocolate, Cadbury plc, Cadbury Dairy Milk Pages: 5 (1649 words) Published: February 13, 2014


Table of Contents
Market / Company information3-4
Product/ Market Information4-5
PESTEL/ Recommendations6
Bibliography7

Business Environment
Market/ Company Information
Cadbury officially known as Cadbury Enterprises, is a British confectionary company owned by Mondelez International (Reuters 2010) Cadbury was first established in Birmingham, United Kingdom by John Cadbury in 1824 ( Cadbury 2013) and its headquarters are based in, Uxbridge London.

Today Cadbury is best known for many of its different confectionary products, which include Dairy milk, Crème Egg and Roses (Reuters 2010). Dairy Milk was introduced in 1905 and by 1914 was the best selling product for the company (Cadbury 2013).

Mondelez international, is an American confectionary company which also has food and beverages, the company has headquarters based in Deerfield, Illinois and has well known snack brands which include Cadbury, Toblerone and different types of candy such as Trident and Halls Stride (Mondelez 2013)

“Oligopoly is market in which control over the supply of commodity is in the hands of a smaller of producers” (Freedictionary 2013). Cadbury’s and the chocolate confectionary market structure is oligopoly; oligopoly is dominated by large companies and is shared with only a number of producers and sellers. This market structure has a large entry cost so for companies that want to enter it need to prepared to invest millions and that does not ensure success in that market. Cadbury’s competitors

Own branding in the chocolate confectionary market is very important because it is what gives companies the edge over their competitors , but with the increased competition from large retailers and supermarkets such Asda, Tesco who also have their own branded chocolates and usually are cheaper chocolates compared to Mars, Cadbury and Nestle products. This causes concern for the larger chocolates companies because people are spoilt for choice this also is a major blow for Cadbury losing their famous purple colour (BBC Business 2013) which they have used for a century, that colour had become famous with customers and could easily recognize the brand when they saw the colour purple and immediately would register with a person that it was a Cadbury product. Product range is essential for businesses in the long term if a business has a large range of products the risk spread is lower, if a business only sells a few products its risk spread is generally higher because it should have more products to sell. Cadbury sell large amount of products hundreds of chocolates bars all with different names such as Dairy Milk, biscuits, ice creams and drinking chocolates (Cadbury 2013). Since Cadbury is well known for its chocolate they aren’t taking a risk by spreading into drinks, biscuits and ice creams because chocolate is used in all the products which makes it an advantage because they can spread what they are well known for into different products. Mars however have taken a different spread in the market, they have dog food, chewing gum, cat food and pasta sauce (Mars 2013) the famous chocolate company has entered a completely new market with has nothing to do with chocolate. Product / market information

(Figures from FoodManufacture.co.uk 2013 Value & Volume of Sales)

According to (FoodManufacture 2013) the sales of single chocolate bars have decreased and the sales of multipacks have increased because the consumer feels they get more value for their money buying multipacks. The figures above show value of sales in the UK market. Cadburys Dairy Milk shows they have made £483.1 million in sales for 52 weeks and its closest competitor Mar’s Galaxy bar have made £223.8, Cadbury has near enough double the profit Mars have made from just their Dairy Milk product. However by looking at the figures after Nestle’s KitKat, Mars have Maltesers, Mars Bar, Snickers and M&M equalling to...

Bibliography: BBC NEWS. (2013). Cadbury loses legal fight over use of colour purple.Available: http://www.bbc.co.uk/news/business-24401249. Last accessed 02/12/13.
corby kummer. (2013). A Chocolate Maker’s Big Innovation. Available: A Chocolate Maker’s Big Innovation. Last accessed 03/12/13.
Cadbury. (2013). Cadbury. Available: http://www.cadbury.co.uk/. Last accessed 01/12/13.
Free dictionary. (2013). Oligopoly. Available: http://www.thefreedictionary.com/oligopoly. Last accessed 01/12/13.
food is power. (2013). slavery in chocolate industry . Available: http://www.foodispower.org/slavery-in-the-chocolate-industry/. Last accessed 03/12/13.
History of business. (2013). Jacobs Suchard. Available: http://historyofbusiness.blogspot.co.uk/2012/11/jacob-suchard-company.html. Last accessed 01/12/13.
Mars. (2013). Mars. Available: http://www.mars.com/uk/en/index.aspx. Last accessed 01/12/13.
Mondelez. (2013). Mondelez international. Available: http://www.mondelezinternational.com/home/index.aspx. Last accessed 01/12/13.
Mintel oxygen. (2013). chocolate confectionery . Available: http://academic.mintel.com/display/661152/. Last accessed 03/12/13.
Nestle. (2013). Nestle. Available: http://www.nestle.co.uk/. Last accessed 01/12/13.
rod addy. (2013). top 10 chocolate uk brands. Available: http://www.foodmanufacture.co.uk/Business-News/Top-10-UK-chocolate-brands-IRI. Last accessed 02/12/13.
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