Introduction
Cadbury merged with Schweppes in 1969. Currently, this successful company is
employing approximately about 43,000 people worldwide. Today, Cadbury Schweppes is
the worlds fourth biggest supplier of chocolate and sugar confectionery.
One of its products, Dairy Milk was introduced in 1905, and has become the most
successful molded chocolate in UK history and the basic ingredient for many other
Cadbury products. 95 years later, Dairy Milk is one of the worlds most famous brand
names and the companys leading chocolate bar by revenue.
Sales from Cadburys Dairy Milk alone are estimated at over 135 million for 1995.
Cadbury considers its success is based on three factors: quality, value for money and good
advertising.
I am going to apply an analysis to Cadburys current situation and its position to enter a
foreign market
It is important to investigate on the internal and external environmental forces for the
Dairy Milk in a foreign market. Relevant organisational and industrial information is
required for the development of a SWOT analysis PEST analysis and PORTERS 5 factors.
The analysis of the environment and the consideration of the situational factors when
designing marketing planning are critical as it would allow Dairy Milk to capitalise on
organisational strengths, minimize any weaknesses, exploit market opportunities and avoid
any threats.
SWOT ANALYSIS
Strengths
Cadburys could get these advantages in going abroad. By entering a foreign market the
company could:
Maintain a stable growth of a company by maximising the use of its production capacity
and which increases economies of scale.
With its brand name, Cadbury could counterattack the competitors it faces in the domestic
market by attacking their domestic market.
Keep up with the financial strength by increasing its sales and profit.
Acquisition rules in UK reduce its dependence on the UK market and therefore diversify
its market specific risks.
Overall, Cadbury has been successful through the new products.
Another strategy that has been successful for Cadbury involves striking strategic
partnerships with other large companies.
Weaknesses
generally, as Cadbury has a weak position in the US market, thus, need to change its target
to a different location. it also has a small total of market share altogether. Therefore in
order to market the product in a new foreign market successfully, Cadbury would have to
find out on how it can improve in order to have great performance. It is also good to find
out what are the situations that they could avoid in order to be successful. In order to
market products the following issues should be considered:
