Last Updated 09 Apr 2020

Opportunity and Threat of Cadbury

Category Chocolate
Words 448 (2 pages)
Views 451

Opportunity First of all , Cadbury should increase in market potential of developing counties. Especially expand into the emerging markets of Nigeria ,China and Russia, based on their growing populations, increasing consumer wealth and increasing demand for confectionery products. So that It would be a potential market for Cadbury. Moreover , based on their strong brand name , Cadbury can try doing different types of businesses like innovatively doing Co-Brand Marketing with other brand industries . Ingredient branding in food industries for example published chocolate milk ,ice cream even chocolate tofu pudding.

Also doing complementary branding like published T-shirt and accessories . Besides the market , Cadbury should responds to change in consumer tastes and preferences because consumers are more concern health nowadays , low-fat, organic and natural confectionery demand appears much stronger . So that a healthier snacks with lower calories need to be developed. For example Cadbury should launch some links which led to sugar-free & center filled chewing gum varieties and Cadbury premium indulgence treat. Last but not least , Cadbury can put more effort on reducing costs even increasing efficiency .

For instance , Moving production to low cost countries, where raw materials and lab our is cheaper besides India . Because Cadbury ‘s production lines are mostly located in high cost countries like Australia and US . And also reducing internal costs like doing global sourcing , procurement , efficient supply chain and wise investment . Threat First of all , Cadbury will face the intense competition against other branded suppliers even global competitors . According to above statistic , Mars-Wrigley and Nestle are the main competitors especially Mars-Wrigley the strongest market sharing in total confectionery .

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When they set an aggressive price and promotion activity , it ‘s possible to occur price wars in the market which will induce a main threat for Cadbury. Especially affecting their marketing sharing and profits . For example there would be seasonal sales slumps all year round which will reflect to an increase in cost of raw material needs . Second one is “Copycat” problem. Especially when Cadbury expand into developing countries like China, based on their unhealthy legal system , it ‘s easy to appear “ Copycat” problem which will totally affect their profits , market sharing and their unique images .

For example Tempo Tissues is the main“ Copycat” problem sufferer when entering in China market . Many fakes products have approached in the market. Last but not least , due to its confectionary products , It ‘s important for them to be aware of upcoming threats . For example taking notes of the changes in the consumers ‘ buying trends . For example low-fat, organic and natural confectionery demand appears much stronger . So that they should shift from chocolates to healthy snacks , otherwise there may be tarnish the Cadbury ‘s brand name and totally affect their income .

Opportunity and Threat of Cadbury essay

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