Cadbury dairy milk silk

presentation
By Osama Bin Aziz
Cadbury Plc
Cadbury Plc now the subsidiary of the Kraft foods Inc was
founded in 1824, It operated in the confectionery industry
. It is headquartered in Cadbury house, Uxbridge, UK.
The group manufactures over 100 different products
under different brand names.
One of the popular brand of the group is dairy milk
which is milky chocolates, there are various products
under this brand name. One of which is the latest
chocolate introduces by the group, Dairy Milk Silk.
Cadbury Dairy Milk
Cadbury Dairy Milk is a brand of chocolate bar made by the Cadbury plc unit of Kraft Foods and sold in several countries around
the world. It first went on sale in the United Kingdom in 1905.
Situation Analysis
. The Cadbury dairy milk silk is launched by the Kraft
foods Inc which is the largest confectionery, food, and
beverage corporation headquartered in the US. The
Kraft foods Inc take over Cadbury in 2010 which is the
a British confectionery company, the industry's
second-largest globally. This new product is launched
globally.
. This presentation include the situation analysis of the
launch of this new product including SWOT analysis.
PESTEL Analysis
Let us examine the macro environment of the group
using PESTEL analysis.
Political factors that will affect the launch of the dairy
milk silk chocolates are health and safety laws,
employment laws of different countries where Kraft
group operates.
Socio-cultural factors that may affect include life
styles of people, health and fitness awareness and
perception, different cultures, spending patterns,
aging populations.
.Technological factors that will affect the brand are the internet as the
product will be promoted using web marketing. The robotic
manufacturing will also help in quick production.
. Economic factors that will affect it are interest and inflation rates as it
will affect production, world economic growth and current recession
will also effect it.
. There will be also some environmental factors that will affect like
energy and environment and recycling of the plastic and other
products like chocolate can be packed in completely recyclable packet.
. Legal/ Educational factors will also influence like perception of
people and what people think about the richer milk chocolates.
Micro environmental analysis
The group is the leader in the industry and enjoys a good
support of the suppliers therefore the dairy milk silk will
get benefits from this close supplier ties.
The dairy milk series is trusted in the market and it enjoys
public loyalty therefore the dairy milk silk will get this
advantage.
The industry enjoys a force of raw competition and dairy
milk silk will have to compete to get the market share as
there is price war.
Dairy milk series enjoys customer loyalty which will
benefit the dairy milk silk.
Internal factor analysis
Men and Money: The group has sufficient financial and
human resources and these factors help the dairy milk
brand and the other brand of the group as well.
Machines and Material: The group also have state of the
art machines and enjoys a close relationship with the
supplier and have sufficient material which help the brand.
Management and Management information: The
management of the group is highly qualified and skilled
and the information system is up to date which provide
timely information to make decisions. This help the brand.
Porter’s five forces analysis
Competitive rivalry in the industry: there is a huge rivalry in the
industry and this rivalry in the industry make it attractive.
Threat of substitute product: chocolate is a established product
and million of people love it round the globe therefore there is
not much threat of the substitute.
Threat of new entrants: the confectionery industry has no barrier
to entry and this make this industry open to competition and
make it attractive.
Bargaining power of supplier: the bargaining power is low due to
large no of supplier which make it attractive.
Bargaining power of customer: there is almost no bargaining
power of customer which make this industry attractive.
SWOT analysis
Strengths of the brand: As Cadbury dairy milk is a
established brand which enjoys good customer
perception therefore it is the strength of the brand and
the dairy milk silk will get benefit of it. The resources
that the group have is also one of its strength and the no
of products that it make will help in achieving economies
of scale is also one of the strength of the brand. The
acquisition of Cadbury by Kraft food Inc which make the
group the leader in the confectionery industry is also a
strength of the brand. Millions of customers around the
globe is also one of the strength of the brand
. Weakness: The biggest weakness is the size of the
group which make it difficult to innovate as the Kraft
foods Inc has recently acquired the Cadbury so the
group will focus to get the return and little or no focus
will be given to the innovation. Large group size also
make increase the time to make crucial decisions.
Timing to implement the decision will also increase
because of the group size which is also a weakness.
Opportunities: There are various opportunities for the brand and for
the group as the group is one of the leading confectionery producers
therefore it can increase its market share by reducing price and as it
has sufficient resources which it can used to purchase other producers
and increase its market share. There is also an opportunity to make
new products as the group can afford it and with the two brand names
it can market it. The combination of the US and the British
manufacturer create an opportunity for the group as it has now
presence in the biggest part of the world and it can get best workers
and best people to manage the company. Offering different products
under one brand name make it easy to market the product and to
attract the customers. Large size bring economies of scale and
synergies which help the brand the whole group as well.
Threats: large size is the biggest threat as if the
acquisition does not work that it will affect all the brands
including the dairy milk. Confectionery industry is open
to competition which is a threat to the brand and for the
group. Improved chocolate by some other producer will
affect the brand and it create threats as the producers are
always in search of something new. The industry is highly
price sensitive and increase in price or decrease in income
of people will result in decrease in demand for the
product and will affect the brand. Combination of the
British culture with a US, open the brand and group to a
threat.
Audit of the strategy
The dairy milk brand is marketed using market
penetration strategy.
As there is huge competition in the industry therefore
the brand is marketed at low profit margin in order to
win market share and to maximize profit by increasing
sales volume.
In my view the marketing strategy used to market the
brand is fair enough because this attract s the right
people at the right place and probably at the right
time.
This strategy takes into account all the factors that is essential in
promoting a brand like this and it pay close attention to market
demand and customer expectation.
That is why the dairy milk brand is that much popular that even a non
chocolate lover know at least something about it. This shows the
popularity of the brand and it is somewhat because of the successful
marketing plan.
The expenditure on the marketing of the brand also seem to be fair
enough by comparing it with the competitors .
In my view, some more effort is required to promote the brand like
some sort of unique promotion techniques should be used in order to
make the marketing strategy more successful. But on the whole, the
strategy is good and it is working nicely.
Profile of target customers
Cadbury dairy milk is a fine rich chocolate which is specially
produced for the chocolate lovers who like to eat finer chocolates
and who love highly milky chocolates, therefore the target
customers will be the existing chocolate eaters because it is
unlikely that non chocolate eaters will try it.
If I try to segment the target customers by life stages than it will be
students, young adults and young families which will mainly be
focused because these people are mostly tend to eat chocolates.
Since chocolate is not an up market product therefore if we try to
segment the target customers according to what they buy than it
will be in the group of market (traditional, convenience and
mainstream).
Current position of the dairy milk
As stated earlier dairy milk is one of the renowned chocolate brands
and it is sold globally. The brand enjoys a good reputation in the
public and enjoys customer loyalty. It is affordable chocolate that
provide somewhat different taste than others which is liked by its
customers.
That’s why the brand has the presence of over 100 years (since 1905).
The brand is one of the most successful brands of the Cadbury
(recently Kraft Foods Inc).
Its richness in milk make this brand different from others and the
new product dairy milk silk (more rich in milk and finer) will get
benefit from the brand reputation and it will also perform well like
the other products of the brands.
I want to thank my teacher Mr. Jon Kitto of London
School of Business and Finance who teach us nicely
and who always support us and who was always there
to clear my doubts and questions.
I have used data from the internet, the wikipedia
website and the Cadbury Plc website and Kraft food
Inc website to prepare this presentation.
Thank you.