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Cadbury Schweppes Capturing Confectionery

B Case Solution
Posted by Adam Hudson on Dec-20-2017

1. INTRODUCTION OF Cadbury Schweppes Capturing

Confectionery B CASE SOLUTION
The Harvard business review has published the Cadbury Schweppes Capturing Confectionery B
Case Study. Like all HBR case studies, the Cadbury Schweppes Capturing Confectionery B Case is
designed and drafted in a manner to allow the reader to experience a real-world problem and solve it
accordingly. The case study, like other HBR case studies, will help the reader and students develop
a broader, and a clearer understanding of the business world and dynamics.
The Cadbury Schweppes Capturing Confectionery B Case is based on a current managerial and
strategic problem being faced by the organization, which must be solved tactfully to allow
progression, as well as maintain a competitive position. This paper is written to facilitate the case
solution for the Cadbury Schweppes Capturing Confectionery B Case Study.
The case solution for the Cadbury Schweppes Capturing Confectionery B Case Study first identifies
the central issue that is elaborated on throughout the case. The case solution then analyses the
case through relevant strategic models and tools including the SWOT Analysis, Porter Five Forces
Analysis, PESTEL Analysis, VRIO analysis, Value Chain Analysis, BCG Matrix analysis, Ansoff
Matrix analysis, and the Marketing Mix analysis. This analysis is to help in the identification of a
feasible strategy and solution for the Cadbury Schweppes Capturing Confectionery B Case Study.
Alternative solutions are also proposed in the case solution, primarily because alternative solutions
often act as contingency plans.

2. PROBLEM IDENTIFICATION
2.1. Harvard business school case studies
All case studies published by the Harvard business review comprise of a central problem that is
faced by the protagonist. This problem mostly holds implications for managerial and strategic
directions of the company. For readers and students of HBR case studies, it is critical to identify the
problem that the Cadbury Schweppes Capturing Confectionery B faces. This problem is usually
hinted towards in the introduction of the case and develops along the way.

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2.2. Solving HBS case studies
As a result, for solving the Cadbury Schweppes Capturing Confectionery B case, it is essential to
read the case study thoroughly. The identification of the problem correctly is vital for undergoing the
analysis rightly, and for developing relevant solutions for the Cadbury Schweppes Capturing
Confectionery B Case Study. It is also essential to identify all the appropriate parties that are being
impacted by the problem as well as the decision. The correct problem identification will ensure that
all the solutions developed during the case analysis of the Cadbury Schweppes Capturing
Confectionery B Case Study are applicable and pragmatic.

EXTERNAL ENVIRONMENT ANALYSIS

The external environment analysis is needed for the Cadbury Schweppes Capturing Confectionery B
Case Study to make sure that it actively, and proactively responds to the macro-environment. The
macro environment or the external environment for the Cadbury Schweppes Capturing
Confectionery B Case includes those factors which are not in control of the business or the company
directly. As a result:

 The Cadbury Schweppes Capturing Confectionery B cannot influence these factors in its favour, and
in contrast, these factors directly affect the operations and workings of the company.
 As a result, Cadbury Schweppes Capturing Confectionery B must make sure to continually assess and
review the external environment to make sure that it responds to external factors, and take them into account,
during strategic decisions, and strategy devising.
Businesses like Cadbury Schweppes Capturing Confectionery B make use of strategic model tools continually
to make sure that they are aware of the external environment.
 These include tools like the pestle analysis and Porter’s five force model, as well as strategic group
analysis and pentagonal analysis, to name a few.
The external analysis for the Cadbury Schweppes Capturing Confectionery B Case Study will assess and will
apply the strategic models and tools to review the business environment for the company.PESTEL Analysis

3.1.1. Political
Political factors and elements can have a direct and indirect impact on the business. This is seen
through the Cadbury Schweppes Capturing Confectionery B Case Study.

3.1.1.1. Policy Makings

 Policymakers for the Cadbury Schweppes Capturing Confectionery B Case are in all likelihood to
intervene in the business surroundings.
 Commercial restrictions and political stability are additionally integral factors that will determine the
success or failure of Cadbury Schweppes Capturing Confectionery B.
 3.1.1.2. Taxation

 Tax policy will influence the cost of doing business for Cadbury Schweppes Capturing Confectionery
B.
 An increase in organization taxation (on business profits) has a similar impact as an expansion in
expenses.
 Organizations can pass a portion of this increase on to shoppers in more expensive rates, yet it will
likewise influence the bottom line of the business.

3.1.1.3. Government Support

 The government helps organizations in two primary ways: monetary help and regulatory.
 Cadbury Schweppes Capturing Confectionery B can use government assistance and grants for
purposes of growing the business, advancement, exporting, and innovative work.
 Cadbury Schweppes Capturing Confectionery B can also be impacted by when Governments modify
regulations and laws.

3.1.1.4. Political Stability

 Lack of political stability in a country impacts business tasks. Political stability is particularly essential
for the organizations which work globally, such as Cadbury Schweppes Capturing Confectionery B.
 A forceful takeover could oust a legislature. The takeover could prompt mobs, plundering and general
issue in nature. These disturb business tasks for Cadbury Schweppes Capturing Confectionery B.
 Purchasing political risk insurance is a way for Cadbury Schweppes Capturing Confectionery B to
oversee political hazard. Organizations that have worldwide activities utilise such as insurance to lessen their
risk presentation.
 The soundness of a political framework can influence the attractiveness of a specific nearby market
for Cadbury Schweppes Capturing Confectionery B.

3.1.2. Economic
The economic factors are one of the most important of PESTEL factors and can influence Cadbury
Schweppes Capturing Confectionery B in several ways.

3.1.2.1. GDP

 Economic components have the most evident effect on the profitability and overall appeal of Cadbury
Schweppes Capturing Confectionery B.
 Even though GDP per capita is a useful economic factor, GDP per capita gives just a fractional
perspective on the economic factors that may influence Cadbury Schweppes Capturing Confectionery B.
 Higher GDP leads to higher disposable income and hence higher sales for Cadbury Schweppes
Capturing Confectionery B.

3.1.2.2. Inflation

 Higher inflation will disintegrate the purchasing power of the consumer and the shopper
 Higher inflation will also harm the costs of raw materials and other inputs that are utilised by Cadbury
Schweppes Capturing Confectionery B.
 3.1.2.3. Interest Rates

 Fluctuations in interest rates may translate into higher or lower costs for the purchase or sale of items
and administrations provided by Cadbury Schweppes Capturing Confectionery B.
 Higher interest rates hurt the disposable cash of consumers.

3.1.2.4. Unemployment Rate

 A high unemployment rate is also unadvisable as it dissolves dispensable income of consumers, and
will harm Cadbury Schweppes Capturing Confectionery B ’s position.
 The high unemployment rate will lead to lower sales for Cadbury Schweppes Capturing Confectionery
B and impact its overall profitability and revenues.

3.1.2.5. How can the Cadbury Schweppes Capturing Confectionery B decrease

the risk of economic instability?

 Cadbury Schweppes Capturing Confectionery B can work towards building economies of scale
 Maintaining business costs and controlling the final price of the product can also help Cadbury
Schweppes Capturing Confectionery B fight economic instability
 Cadbury Schweppes Capturing Confectionery B can also work towards building a sustainably
managed workforce

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3.1.3. Social
Social influences will stem from social components of the macro environment. Under the PESTEL
Analysis, they can influence Cadbury Schweppes Capturing Confectionery B in several ways:

3.1.3.1. Social patterns and consumer behaviour

 Social patterns affect work trends and patterns and are directly related to the behaviours of consumers.
 Social patterns also have a direct influence on buyer tastes and inclinations, and the specific kind,
structure, and volume of interest for an item or service.

3.1.3.2. Social patterns and changing consumer needs

 The checking of social patterns will enable Cadbury Schweppes Capturing Confectionery B to
reposition its items or administrations to meet the changing desires and needs of consumers.

3.1.3.3. Social trends in education

 Social trends of higher education have allowed firms like Cadbury Schweppes Capturing
Confectionery B to have access to a pool of higher skilled talent – but at the same time, also face a more
criticising consumer base.
 Higher education has also made consumers more aware of different product offerings by companies
like Cadbury Schweppes Capturing Confectionery B.
 consumers are also more educated and knowledgeable of different substitutes of a product, as well as
become more readily available at different touchpoints.

3.1.3.4. Social patterns make companies more consumer-centric

 Companies like Cadbury Schweppes Capturing Confectionery B are expected to become more
consumer-centric than product-centric.
 Similarly, Market segmentation and consumer grouping are dynamically moving towards measures of
psychographics and lifestyles to understand the consumer more.

3.1.3.5. How can Cadbury Schweppes Capturing Confectionery B use social

aspects for growth?

 Use consumer-centric means of segmentation and targeting.

 Use consumer-oriented and consumer-based marketing – which use emotional appeals to influence
consumers.
 Make products more accessible at different touch points common to target consumers socially.

3.1.4. Technological
The technological factors can influence Cadbury Schweppes Capturing Confectionery B in several
ways:

3.1.4.1. Innovation

 The quick pace of technological change at Cadbury Schweppes Capturing Confectionery B may be
driven through innovation.
 Business leadership at Cadbury Schweppes Capturing Confectionery B tries to push the limits of
present limitations.

3.1.4.2. The advent of the internet and online retailing

 The expansion of the Internet and online business has discarded many intermediaries. Cadbury
Schweppes Capturing Confectionery B can communicate and retail directly to the consumers now, or through
modern intermediaries such as eBay as well, for example.
 Cadbury Schweppes Capturing Confectionery B may also use current social networks to retail and use
e-commerce to boost sales.

3.1.4.3. Social media and business growth

 Cadbury Schweppes Capturing Confectionery B can make use of social media to interact and reach
with consumers
 Social media can also be used to reach the target market audience more effectively
 Social media is cost-effective and strategically more influential for Cadbury Schweppes Capturing
Confectionery B

3.1.4.4. Improved value chain network

 For Cadbury Schweppes Capturing Confectionery B, technological innovation can be utilised to build
on competitive advantage through several different ways.
 Cadbury Schweppes Capturing Confectionery B can incorporate less expensive production, improved
access to clients, improved marketing, improvement in product quality, and increased levels of business
intelligence than the competition.

3.1.4.5. Managing technology and the future for Cadbury Schweppes Capturing
Confectionery B

 To flourish in a business world that is quick paced and receptive to innovative change, Cadbury
Schweppes Capturing Confectionery B must stay cautious.
 It must be always be updated on any technological developments in the business and industry.
 Cadbury Schweppes Capturing Confectionery B should weary of how the company are probably
going to influence its future attractiveness and profitability.

3.1.5. Environmental
For Cadbury Schweppes Capturing Confectionery B, the environmental aspects of the PESTEL
analysis may include:

3.1.5.1. Environmental stability and business standards

 Cadbury Schweppes Capturing Confectionery B may be expected to incorporate maintainability

standards into their business methodologies and to help resource allocation choices.
 Cadbury Schweppes Capturing Confectionery B may also be subject to environmental laws – which
will impact and guide its operations to become more environmentally friendly.

3.1.5.2. Environmental stability and budget allocation

 Leadership in the Cadbury Schweppes Capturing Confectionery B must measure the connection
between natural activities and budgetary execution.
 Cadbury Schweppes Capturing Confectionery B also strategically decides and assesses if the
organization have been estimating the monetary effect of natural and social activities.

3.1.5.3. Environmental sustainability

 Cadbury Schweppes Capturing Confectionery B also distinguishes and differentiates explicit zones of
concern and impediments to the coordination of environmental sustainability into corporate performance and
strategy
 Cadbury Schweppes Capturing Confectionery B also gives explicit direction concerning how
organizations can push toward a superior reconciliation of ecological and social activities in their basic
leadership procedures and tasks.

3.1.5.4. Environmental sustainability and business growth

 Cadbury Schweppes Capturing Confectionery B may use environmental issues to adjust financial,
natural and social performance.
 Concerns towards the environment will enhance the business image for Cadbury Schweppes
Capturing Confectionery B.
 Environmental sustainability within business goals and strategy will also reflect corporate
responsibility on the part of Cadbury Schweppes Capturing Confectionery B.

3.1.5.5. Environmental sustainability and improved consumer relations

 Consumers will be more inclined towards the use of environmentally sustainable products.
 Environmental sustainability in operations works towards improving the bottom line and overall
profitability for the business of Cadbury Schweppes Capturing Confectionery B.
 Improvement of cost management and operations will be observed in the business as well.

3.1.6. Legal
Legal components can influence Cadbury Schweppes Capturing Confectionery B directly, and can
likewise influence the instruments through which an organization buys its stock or connects with the
client. The Cadbury Schweppes Capturing Confectionery B should be mindful, for example, of the
following legal aspects:

3.1.6.1. Labour law

 Labour law refers to the guidelines in regulations that set up minimum and benchmark conditions.
 These include identifying with the work of people.
 Labour laws include aspects of minimum working age, least time-based compensation, etc.
 Cadbury Schweppes Capturing Confectionery B must be mindful of these laws in routine business
tasks such as hiring, for example.

3.1.6.2. Discrimination law

 Under the discrimination law, Cadbury Schweppes Capturing Confectionery B must ensure to avoid
episodes of unequal or uncalled for treatment based on an individual's age, inability, sex, national source,
race, religion, and sexual orientation.
 Cadbury Schweppes Capturing Confectionery B should train its human resource management team in
ensuring that there is no:
 Unequal hiring
 Discrimination in recruitment
 Internal discrimination in talent management
 Bias in training opportunities
 Unfair compensation systems
 Prejudiced promotions and succession management

3.1.6.3. Health and safety laws:

 Under this, Cadbury Schweppes Capturing Confectionery B is required to give a protected work
environment to their workers.
 Working environment security and wellbeing laws build up guidelines intended to dispense with
individual wounds and injuries from happening in the work environment.
 all operations of Cadbury Schweppes Capturing Confectionery B should be designed to physically and
emotionally safeguard and protect the employees and the labour force employed

3.2. Porter’s five forces

 The five forces identified in Porter's model can effect Cadbury Schweppes Capturing Confectionery B
’s ability to serve its clients and make a profit.
 A change in any of the five forces may regularly require a business unit from Cadbury Schweppes
Capturing Confectionery B to reassess the market place given the general change in industry data and
dynamics. The general industry appeal and attractiveness.
 Cadbury Schweppes Capturing Confectionery B should apply and centre their skills, plan of action or
business models to accomplish profits above the business average. This may be done in multiple ways, each
distinguished in their application to the forces individually as is elaborated below:

3.2.1. The threat of new entrants

3.2.1.1. Market and industry share

 New entrants to an industry bring new potential and a choice to increase the market share and overall
share of the pie that puts pressure on price, costs, and the investment price essential to compete.
 For Cadbury Schweppes Capturing Confectionery B, particularly while new entrants are diversifying
from different markets into the chief industry, they will be able to leverage existing talents and cash flows to
shake up the opposition.

3.2.1.2. Limitation on earning expectation and capability of firms in an industry

 The threat of entry in the industry, consequently, puts a cap at the earning capacity and profit
capability for Cadbury Schweppes Capturing Confectionery B.
 While the threat of new entreaty is high, Cadbury Schweppes Capturing Confectionery B should
maintain their prices or increase funding and investment to discourage new competition.

3.2.1.3. The risk to new entrants because of high entry barriers

 The risk of entry in an industry depends upon on the peak of entry barriers and limitations that are a
blessing for players such as Cadbury Schweppes Capturing Confectionery B and on the response that new
entrants can count on from existing players.
 If entry barriers are low and novices count on little retaliation from the entrenched competition, the
chance of entry is high, and profitability for Cadbury Schweppes Capturing Confectionery B will be
moderated.
 It is the danger of entry, not whether the entry of new players takes place that holds down profitability.

3.2.1.4. Some barriers to entry for new entrants in favour of Cadbury Schweppes
Capturing Confectionery B :

 Capital requirements: a strong barrier to entry as new entrants will require strong financial and
resource cushioning for operations to take off and be sustained.
 Economies of scale: a strong barrier to entry as existing players in the industry operate with high
economies of scale, which new entrants will take time to achieve.
 Product differentiation: the strong barrier of entry if products within the industry have high levels of
differentiation on which they operate and approach customers.
 Access to distribution: a standard barrier to entry since new entrants will have equal access to the
retailers and distributing agents within the industry.
 Customer loyalty to established brands: a strong barrier to entry since customer loyalties and
perceptions are emotionally built and strongly enforced as long as the brand continues to deliver on its core
promise and quality.

3.2.1.5. What can Cadbury Schweppes Capturing Confectionery B do to face this

challenge?

 Build and invest in marketing to distinctly establish a point of differentiation in customer perception
as well as strengthen customer loyalty.
 Invest in research and development to make sure that it continues to have competitive differentiation
from other players at all times.
 Focus on building economies of scale in production and sales.

3.2.2. The threat of substitute products or services

3.2.2.1. Substitute form

 There are always different alternatives or substitutes for various products that lead an industry.
 These substitutes may be direct or indirect– the direct substitutes are the same category products.
produced by different players; indirect substitutes are the ones from different product categories that can
replace the product for Cadbury Schweppes Capturing Confectionery B.

3.2.2.2. Switching cost to substitutes for consumers

 Switching costs for direct substitutes is not very high for consumers.
 The per-unit-volume prices may be higher or lower.
 This makes the threat of substitute high.

3.2.2.3. Substitute and product benefit

 Alternatives to the product or substitutes may not be able to provide the same benefits
 May often lead to additional costs incurred.
 Switching costs towards alternatives becomes higher, and consumers may not switch to substitutes.
 This, in turn, will make the threat of substitutes low.

3.2.2.4. Substitutes and consumer behaviour

 From the point of view of the consumer, there are some differences between the ways different
products of the same or similar category are used, but many consumption decisions are a matter of personal
taste - this makes products vulnerable to the threat of other substitutes.
 Overall, the threat of substitutes is assessed to be moderately high.

3.2.2.5. How can Cadbury Schweppes Capturing Confectionery B combat the

threat from substitute products?
 Focus on delivering consistently high quality.
 Focus on maintaining strong consumer relationships.
 Integrate strategic marketing to form an emotional connection with the consumers and strengthen
consumer loyalty.
 Invest in pop up stores owned by the company to stock the Cadbury Schweppes Capturing
Confectionery B brand exclusively, and integrate it with brand characteristics and personality to attract
consumers.

3.2.3. Bargaining Power of Buyers

3.2.3.1. Who is the buyer?

 The buyer for Cadbury Schweppes Capturing Confectionery B is not necessarily the group that
consumes the product – but rather refers to the group of customers that purchases the product from Cadbury
Schweppes Capturing Confectionery B to either distribute further, retail it, or even consume it.
 Hypermarkets and supermarkets, as well as independent retailers and distribution agents to end
consumers, are the core buyers for Cadbury Schweppes Capturing Confectionery B that make up the market’s
volume.
 Supermarkets and hypermarkets, along with many food chains that are concentrated, which increases
the buyer power.
 Products are stocked with buyers and retailers by Cadbury Schweppes Capturing Confectionery B
based on consumer demand.

3.2.3.2. Buyer power and costs

 Cadbury Schweppes Capturing Confectionery B will not experience switching costs for switching
buyers.
 Multiple product offerings by buyers also increase buyer power.

3.2.3.3. Retail product differentiation

 Products offered by retailers are differentiated based on several characteristics – not only reliant upon
product characteristics but also consumer segment characteristics. Because of this, retailers are expected to
offer a wide range of the same product category. This works towards negating and weakening the overall
buyer power.
 Buyer power is assessed to be moderate to high.

3.2.3.4. What can Cadbury Schweppes Capturing Confectionery B do to ensure

risks against high buyer power?

 Cadbury Schweppes Capturing Confectionery B can focus on differentiating its product and
increasing its demand with the end consumers through different marketing tactics, this will increase the
demand of the product with different buyers, and will work towards moderating buyer power.
 Cadbury Schweppes Capturing Confectionery B should employ economies of scale to manage costs of
production. If it offers products at moderate prices to buyers, it will again be able to attract a large number of
buyers for its product, and in this way, will be able to break off the high bargaining power.

3.2.4. Bargaining Power of Suppliers

 3.2.4.1. Who is the supplier?

 Supplier power refers to the power that is held by the suppliers in terms of pricing of the raw materials
and inputs used for the business.

3.2.4.2. Sources of production for Cadbury Schweppes Capturing Confectionery

B

 The main sources for production are the following:

 Supplies from vendors – sourcing from independent suppliers.
 Own manufactured equipment and resources: this model is practised by companies that are well
integrated backwards and forwards.

3.2.4.3. Independent suppliers

 For Cadbury Schweppes Capturing Confectionery B, there are numerous independent suppliers within
the industry, and all comprise of a few pretty small operations that lead to weakened overall supplier power.
 Independent sellers and suppliers, however, can locate different opportunities and invest in alternative
markets – which can be a challenge for Cadbury Schweppes Capturing Confectionery B.

3.2.4.4. Supply quality and business dynamics

 Suppliers can integrate forward into the decision making and business dynamics themselves as well.
 Also, to the buyers, the quality of the supplies and the raw materials is of utmost importance.
 However, in an industry with a high number of suppliers, Cadbury Schweppes Capturing
Confectionery B can switch to different suppliers at any time without experiencing any costs of the business.
 Overall bargaining power of suppliers is assessed to be moderate.

3.2.4.5. How can Cadbury Schweppes Capturing Confectionery B deal with the
challenge?

 Get contracts with multiple suppliers and get resources and raw materials from them accordingly.
 Invest in manufacturer controlled production facility to maintain consistency in quality.

3.2.5. Competitive Rivalry among Existing Firms.

3.2.5.1. Nature of fragmentation

 The market is highly fragmented, which makes it more competitive.

 The market is never too concentrated, and as a result, it has players of varying size of operation – from
very small to big players.

3.2.5.2. Brand management

 Producers have begun to make use of brand management techniques and contemporary merchandising
by launching bold brands, label designs and marketing campaigns to become more identifiable to the public.
 3.2.5.3. Diversification

 Purchasers and buyers have a wide range of products to choose from, with relatively low switching
costs. These factors tend to intensify rivalry.
 Though players in the industry may off niche or premium products, they also continue to operate in
the mass markets at large, which again leads to high competition.

3.2.5.4. High business costs

 The high fixed cost and the high bargaining power of the buyers, which can lead to the lowering of the
prices from manufacturers add to the highly competitive nature of the industry.
 The overall rivalry is assessed to be high.

3.2.5.5. How can Cadbury Schweppes Capturing Confectionery B combat rivalry

and competitive forces of the industry?

 Focus on research and development to identify market niche as well as to be able to add differentiating
factors t its products. This will increase its shield against influence from competitive forces and their actions.
 Build a strong and loyal consumer base by focusing on quality and marketing strategies.
 Focus on capturing new markets – in the same region as well as new regions to avoid saturation of
resources in one market only.

3.3. Pentagonal analysis

3.3.1. The threat of new entrants
3.3.1.1. Restriction into industry

 The ease of entry into the industry is restricted.

 There are high barriers to entry.
 These are government policies, consumer loyalty, brand differentiation etc.

3.3.1.2. Switching costs for consumers

 The high number of direct and indirect alternatives available also make Cadbury Schweppes
Capturing Confectionery B vulnerable to the high threat of substitutes.
 Low to negligible switching costs experienced on the part of the consumers and buyers.

3.3.1.3. Profitability

 New entrants are attracted to the industry because of high profitability.

 If there are high barriers to industry, the industry will continue to maintain high profitability
 Low barriers to entry will result in a lower average of industry profits.
 Lower entry barriers will also lead to higher operational costs because it will increase the intensity of
competition within the industry.

3.3.2. The threat of substitute products/services

 3.3.2.1. Increased competition

 High threat of substitutes.

 This is because of higher competition.
 The higher competition leads to imitation of products and systems.
 This imitation makes substitute products similar to each other – as much as possible.

3.3.2.2. The offering of similar benefits

 Consumers readily adopt alternative and substitute products.

 They offer similar benefits.
 They have similar functional benefits and features.

3.3.2.3. Low costs of switching

 Consumers often experience a low cost of switching between substitute products.

 Low switching costs are also developed because competition often produces at lower operational
costs.
 Low switching cost results in lower overall product prices for the consumer.
 Industry players, therefore, also start competing on aspects of price.

3.3.3. Bargaining power of buyers

3.3.3.1. Market fragmentation

 The industry in which Cadbury Schweppes Capturing Confectionery B operates is highly fragmented.
 It has numerous local and international players.
 It is not very likely for players in the industry to integrate forward into on-trade or retail businesses.
 This results in the players experiencing high bargaining power of the buyers from the market.

3.3.3.2. The concentration of retailing agents

 It also results in a high concentration of individual retailing agents.

 Retailing is also done through hypermarkets and supermarkets.

3.3.4. Bargaining power of suppliers

3.3.4.1. Backward integration by producers

 Backward integration from producers is more commonly observed and seen,

 Many players in the industry have their own production facilities for raw materials as well.
 The industry has seen a large number of players needing to outsource resources and raw materials.

3.3.4.2. Outsourcing raw materials

 This outsourcing is done by third-party manufacturers.

 A large number of suppliers present lowers the bargaining power of suppliers.
 Players in the industry have low switching costs between suppliers.
 Suppliers usually are contracted by producers.
 Producers may change suppliers frequently.

3.3.5. Industry rivalry

3.3.5.1. Intensity of competition

 There are strong competition and rivalry in the industry.

 There is a high number of players.
 All players provide similar products.
 Switching costs for consumers is low, which increases competition.

3.3.5.2. Differentiation

 Platers try to differentiate products on different aspects.

 Functional aspects and appeals for all products across the industry remain the same.
 Competitors and players use emotional appeals, and modern brand management techniques for
differentiation.
 Industry players try to gain consumer loyalty by developing strong emotional bonds and ties.

 Figure 1 Pentagonal analysis for Cadbury Schweppes Capturing Confectionery B

3.4. Placement of the business along the industry life

cycle
3.4.1. Identifying where Cadbury Schweppes Capturing Confectionery B
is on the Industry Life Cycle Curve
Identification of the place and placement on the industry lifecycle is important as it will help Cadbury
Schweppes Capturing Confectionery B make important decisions and strategies for the future.

3.4.1.1. Strategic decision making

 Expansionary plans and investment decisions.

 Decide on various marketing strategies and tactics for targeting different consumer segments to
establish and establish the product.
 Selection of new geographic regions for expansion and exploration of new consumer bases.

3.4.1.2. Budget allocation

 Resources and alternative routes for future growth and establishment.

 Exploration of different diversification options.

 Figure 2 PLC Placement along the Industry Lifecycle curve

3.4.2. Introductory stage

 3.4.2.1. Firm strength

 The industry is in the infancy stage.

 Firms are generally small, entrepreneurial and compact during this stage.
 Cadbury Schweppes Capturing Confectionery B will be focused on research and development during
this phase.

3.4.2.2. Financial Position

 Looking for investment and funds for growth.

3.4.2.3. Nature of product

 Products offered during this stage re doubtful as success and life of the product is unproven and not
known.
 Cadbury Schweppes Capturing Confectionery B will use a focused strategy during this phase to
emphasise the uniqueness of the product.
 The product or the brand will have a small market of consumers – known largely as early adopters
 Marketing strategies adopted by the company will focus on generating awareness of the product and
therefore, will largely use a functional appeal.

3.4.3. Growth stage

3.4.3.1. Financial position

 Cadbury Schweppes Capturing Confectionery B will require high capital during this stage.
 Cadbury Schweppes Capturing Confectionery B will need investment and funds for launching
strategic marketing campaigns.
 Funds will also be required for fuelling physical growth of the company in the form of investment in
equipment and property to facilitate growth.

3.4.3.2. Growth factors

 Companies may increasingly encourage economies of scale because of standardisation experienced

during this stage.
 Consumer feedback from the introductory phase will be incorporated, and research and development
will be conducted to make appropriate changes in the product design and offering.
 Success in this stage for Cadbury Schweppes Capturing Confectionery B will lead to growing
demand, which in turn will fuel sales demand.

3.4.3.3. Nature of Product

 Products in this stage have high growth and high market share.
 There is also increasing competition and rivalry in the market – new entrants will enter and compete
looking at the success of products during this stage.

3.4.4. Maturity stage

 3.4.4.1. Sales and growth

 Cadbury Schweppes Capturing Confectionery B will experience slowing growth during this stage of
the industry life cycle.
 Sales will be expanding, and earning will be growing – however, the rate will be slower than the
growth stage.
 Competition from late entrants will be present, and obvious during this stage – who will all try to fight
for Cadbury Schweppes Capturing Confectionery B ’s share of the market.

3.4.4.2. Strategic Marketing

 The marketing strategies must now focus on building loyalty.

 Marketing tactics must be strong and should focus on the uniqueness of the product. Increasingly
emotional appeals may be used.

3.4.4.3. Firm size

 Firm size is generally larger and is more dominant over players if successful- compared to growth
stage.
 Innovations continue but are stable and not radical.

3.4.5. Decline stage

3.4.5.1. Industry changes

 New technological changes and upgrades may make an industry obsolete.

 Players within an industry may also fall back and lose on market share if they do not keep up with
innovations, and investment in research and development.

3.4.5.2. Sales and Competition

 Sales during this phase are decreasing at a high rate.

 Competing players also exit the industry because of the changes and low demand.

3.4.5.3. Surviving in the decline cycle

 Cadbury Schweppes Capturing Confectionery B may also experience mergers and acquisitions during
this phase.
 Diversifications are also most common during this phase as a means of survival.

3.5. Strategic Group Analysis

3.5.1. Cadbury Schweppes Capturing Confectionery B and strategic
group formation
 The strategic group analysis will look at an industry’s players' situations in focused conditions and
scenarios.
  It will assess different players competing with Cadbury Schweppes Capturing Confectionery B
through the basic strategic factors that will decide an organization's profitability, similar to how the
profitability will also be impacted and influenced by the competitive nature of the industry.
 The strategic group analysis will describe the procedures of every single noteworthy competitor of
Cadbury Schweppes Capturing Confectionery B along different strategic dimensions.
 These dimensions of comparison differentiate players into strategic groupings and must be selected as
the basis of comparison by taking into account industry structure, productivity factors, and the venture issues
being tended to.

3.5.2. Different aspects of strategic grouping

Key strategic groupings of players within an industry can be made based on numerous different
aspects, such as:

 Specialization
 Brand identification
 Push versus pull strategies
 Channel determination
 Product quality
 Technological position
 Vertical joining
 cost position
 Service
 Price strategy
 Financial or working influence
 Parent organization relationship
 Government relationship

Despite the various aspects available for comparison of competing players, it is often important to
differentiate strategic groupings of players of aspects of how they compete with each other, and on
aspects of where they compete as well

3.5.3. Procedure for strategic group analysis for Cadbury Schweppes

Capturing Confectionery B
1. Collect results of the player’s analysis.
2. Determine aspects of comparison for strategic groupings.
 Distinguish the players and pick the most important aspects that separate the players into
strategic groups comparing to the issues being tended to.
 Dimensions may include price strategy and product quality.
3. Group the players: position Cadbury Schweppes Capturing Confectionery B and rivals
along with the matrix.
4. Evaluate group mobility and direction. Assess the key purpose of individual
organizations competing with Cadbury Schweppes Capturing Confectionery B, similar to assessing
industry patterns and barriers to entry/exit to be able to decide potential developments inside and
between groupings.

3.5.4. How will strategic group planning help Cadbury Schweppes

Capturing Confectionery B
 For Cadbury Schweppes Capturing Confectionery B, strategic group analysis is important because it
will:

3.5.4.1. Strategic industry dynamics

 Help in reviewing the strategic dynamics and shifts in the industry.

 Identify the closest competition and competing players for the business; help in assessing the strategic
direction of these competing players; and lastly, aid in developing strategies to stay ahead of the competition.

3.5.4.2. Assessment of market position

 The strategic group analysis is also important for Cadbury Schweppes Capturing Confectionery B
because it will assist in analysing the current market position of players, as well as help in assessing future
strategic moves and directions of the competition in the market.
 Assists in evaluating and identifying different underlying factors that will influence the company’s
profitability.
 Makes use of standard comparison aspects between different players in an industry to group them as
per strategic directions as well as strategic dimensions.

3.5.4.3. Identification of barriers to entry in an industry

 Different strategic dimensions along the matrix of strategic groupings are often characterized by
barriers to entry and exit along the strategic groups’ dimensions, as well as by mobility barriers.
 These barriers make it difficult for companies to move along, and in between different strategic
dimensions – often forcing it to stay in place with the same competition.

3.6. Scenario planning

Scenario planning for Cadbury Schweppes Capturing Confectionery B ’s strategic direction will take
form through speculation and contingency form – methods used by the military for strategic planning
and direction.

3.6.1. Cadbury Schweppes Capturing Confectionery B ’s Utilization of

Scenario planning
For Cadbury Schweppes Capturing Confectionery B, scenario planning comprises of making
suppositions of what's to come, of what will be and how the business condition will adapt, fluctuate,
change, and respond to the future conditions, and changes in the futuristic strategic planning.

3.6.1.1.1. Identify the driving forces of the business:

 Changes in the macro environment

 Changes in technology
 Changes in the economic trade system
 Changes in production methods
 Changes in consumer demands and tastes
 changes in technology and economy

3.6.1.1.2. Identify basic vulnerabilities:

 After Cadbury Schweppes Capturing Confectionery B has identified the possible uncertainties of the
macro environment, Cadbury Schweppes Capturing Confectionery B should decide on any two only. These
can be:
 Changes in technological advancements and developments. These changes can be in the form
that the industry has progressed to install more modern and contemporary technological developments.
 Changes in consumer demands and needs.
 These two uncertainties of the future are those that will have the largest impact and influence on the
business.

3.6.1.1.3. Develop a scope of conceivable situations:

 Cadbury Schweppes Capturing Confectionery B will now be able to place these two uncertainties
along a matrix.
 Depending on the intensity and direction of the uncertainties and vulnerabilities, the business will be
able to chalk out four possible scenarios as probable plans of action for the future. For Cadbury Schweppes
Capturing Confectionery B, these can be:
 Install new technology, or update current technology to be on par with new technology.
 Do market research.
 Engage in innovative marketing to influence consumers.
 Change vertical and backward integrated systems to ensure in-house or out-house production
of technology to stay ahead of the competition.

3.6.1.1.4. Discuss the suggestions:

 Each scenario should be discussed in detail.

 Possible strategic direction and responses for each scenario should be developed.
 Realignment of business goals and direction, as well as a mission during each scenario, should also be
done to ensure future resilience.

4. ANALYSIS OF RESOURCES AND COMPETENCES

 This inner analysis and assessment of Cadbury Schweppes Capturing Confectionery B decide the
centre skills based on the resource based view (RBV) of the premium company.
 Utilizing its core capabilities and capacities, Cadbury Schweppes Capturing Confectionery B can
maintain a competitive distinction, and leadership over other local as well as international players in the
industry.
 In the VRIN analysis and assessment, Cadbury Schweppes Capturing Confectionery B makes use of
its core capacities to strengthen its worth and the to continue to deliver the promise of consistent quality and
taste to consumers – as well as guarantee futuristic and long term gains in the industry.

The following section presents a brief analysis of the VRIN strategic tool as it is applied to Cadbury
Schweppes Capturing Confectionery B and its impact on the strategic direction.

4.1. VRIN analysis

4.1.1. Valuable

4.1.1.1. International distribution network

The company has an international distribution system with agents and contracts in countries across
the world. This helps the company in making sure that its products are widely available and easily
accessible to all consumers.

4.1.1.2. Experience in expansion to other countries

The experience of expansion to other countries directly as well as indirectly has allowed the
company to gain exposure and experience in international business, culture and trades.

4.1.1.3. Marketing skills

The company has a unique blend of marketing skills, which allows it to reach consumers directly
through various channels, in a creative way. This is a valuable resource for the company as it allows
the company to ward off potential competition.

4.1.1.4. Market research

The company invests in market research regularly, which allows it to stay updated with market
trends, consumer needs, demands, as well as the changes that take place in different markets and
consumer groups. This is also valuable as it then allows Cadbury Schweppes Capturing
Confectionery B to make changes in product and service offering accordingly.

4.1.2. Rare

4.1.2.1. Use of progressive technology

The company makes use of progressive technology and invests in new technology to help it make
the business more effective and efficient. This is important for maintaining competitive differentiation.
The technology used by the company also allows lower chances of human error and increases
precision.

4.1.2.2. Use of progressive harvesting methods

The company makes use of modern as well as new and innovative means of cropping and
harvesting as well. The means of production are important for a business to maintain cost efficiency.
This allows lower levels of spoilt raw materials and enhances the quality as well as the feel of the
final product. Also, it allows the company to maintain the product quality in-house, and maintain
consistency in the raw material.

4.1.2.3. Efficient use of economies of scale in production

The company’s effective and efficient use of resources has allowed it to maintain economies of
scale. The company uses economies of scale as a rare resource available to maintain costs,
enhance production, and increase sales – all the while maintaining a high focus on premium quality
and consistency of taste.

4.1.2.4. The uniqueness of product portfolio

The company has a unique and diversified portfolio. This has allowed it to penetrate different
consumer groups. And maintain income from different streams. Into urn, that gives a strong financial
cushioning to the business.

4.1.3. Inimitable

4.1.3.1. Human resource management

The company has taken part in exemplified human resource management in all its function – from
recruitment to training of talent management. This has allowed the company to develop an inimitable
resource that is aligned with the organizational goals, and mission, and which is synonymous to the
organization itself.

4.1.3.2. R&d - new product development

The company’s continued investment in r&d allows it to generate ideas for new products, as well as
test these new products in limited market settings. This allows the company to assess the viability of
new ideas, as well as generate feedback for improvement where needed. This is an inimitable
resource for the company because it has become part of the company’s system and culture.

4.1.3.3. Innovation
The innovation at Cadbury Schweppes Capturing Confectionery B is an inimitable resource that
allows the company to stay ahead of the competition as well as maintain high leadership in the
industry by having the first mover advantage in its product portfolio continuously.

4.1.3.4. Organizational culture

The organizational culture at Cadbury Schweppes Capturing Confectionery B is supportive and
innovative. Employees share information freely. The organizational hierarchy is flatter, which makes
leadership and follower relation smooth and easy. This organizational culture and its aspects cannot
be imitated by competition.

4.1.3.5. Cost control

The company has employed progressive means of controlling costs and maintaining economies of
scale. In this way, prices of the products are maintained and controlled, and very few cost increases
are passed to the consumers. This allows the product to be easily affordable by the company’s
target audience.

4.1.4. Non-substitutable

4.1.4.1. Brand recognition

The brand value and brand recognition enjoyed by Cadbury Schweppes Capturing Confectionery B
is a non-substitutable resource. The high brand recognition across different consumer group’s in
different countries allows the brand to enjoy high consumer ship, high sales, and a unique bond with
the consumers. This cannot be imitated at all by the competition as the brand recognition and
resonance has been built over the years through hard work and quality deliverance.
4.1.4.2. Brand equity
The Cadbury Schweppes Capturing Confectionery B enjoys high brand equity. This has been
developed through the different stages presented by Keller in his model for brand equity. The high
brand equity also reflects a high emotional appeal that Cadbury Schweppes Capturing Confectionery
B has for the consumers.

4.1.4.3. Emotional affiliation with consumers

This means that the brand fulfils not only functional but also emotional and psychological needs of
the consumers. Again, this is an inimitable resource which the company has developed because of
its honest and trusted relationship with the clients over some time.

4.2. VRIO ANALYSIS

4.2.1. Strong global presence

4.2.1.1. Valuable
Having a strong worldwide presence is significantly valuable for an organization attempting to
expand its size, deals, and piece of the overall industry. It is a competitive and sustainable method to
acquire incomes from new and existing buyers.

4.2.1.2. Rare
Cadbury Schweppes Capturing Confectionery B is one of the greatest company all inclusive. Even
though there are other worldwide and international chains of competing companies, Cadbury
Schweppes Capturing Confectionery B has made a distinct name for its quality and offers.

4.2.1.3. Non-substitutable
For the time being, no competition of Cadbury Schweppes Capturing Confectionery B could match
such an enormous international presence in terms of quality and consistency. It would require critical
investment and assets to achieve this.

4.2.1.4. Organized to exploit

Cadbury Schweppes Capturing Confectionery B is effectively exploiting this capacity.

4.2.2. Claim to premium products

4.2.2.1. Valuable
Cadbury Schweppes Capturing Confectionery B offers numerous exceptional and fulfilling products
that different contenders don't offer all the time. Cadbury Schweppes Capturing Confectionery B
additionally incorporates information and detailed ingredients for its products to interest an
assortment of clients.

4.2.2.2. Rare
Other competition also offers different products that are offered by Cadbury Schweppes Capturing
Confectionery B, which means that it is not a rare resource for the company. This is because other
players also have access to similar products and portfolios.

4.2.2.3. Inimitable
Considering other businesses and players are now using this capacity as a means of expansion and
penetration, it can, therefore, be imitated.

4.2.2.4. Organized out to exploit

By offering an assortment of choices and ceaselessly changing the portfolio through active
innovation and new product development, Cadbury Schweppes Capturing Confectionery B is
exploiting this resource. With plenty of alternatives, the vast majority can discover something they
like, and individuals who like to attempt new products and services every now and again can
undoubtedly do as such with Cadbury Schweppes Capturing Confectionery B.

4.2.3. Upscale brand name

4.2.3.1. Valuable
The Cadbury Schweppes Capturing Confectionery B brand name enables clients to enjoy and feel a
bond of association with the brand. This allows consumers to feel emotionally attached with the
brand, and experience it as an extension of themselves as well. As such, this becomes a valuable
asset for the company.

4.2.3.2. Rare
Cadbury Schweppes Capturing Confectionery B is a contemporary brand name that has a premium
touch to it and is upscale, modern and lively. Most other companies and competing brands don't
have the quality and packaging to urge clients to engage in a way they do with Cadbury Schweppes
Capturing Confectionery B .

4.2.3.3. Non-substitutable
It would be generally simple for other companies to revamp their packaging and duplicate the plan of
action of Cadbury Schweppes Capturing Confectionery B. In this way, the upscale and comfortable
promise of the offering by Cadbury Schweppes Capturing Confectionery B could be imitated.

4.2.3.4. Organized out to exploit

Cadbury Schweppes Capturing Confectionery B is effectively using this resource and enhancing the
brand and the brand promise that numerous clients altogether appreciate. The organization is
exploiting the stylish way of life that is right now present in numerous urban communities where the
brand’s products are widely appreciated and consumed.

4.3. Porter’s value chain

 4.3.1. Cadbury Schweppes Capturing Confectionery B: drawing value from
VRIN/VRIO

 The core competencies and strengths of Cadbury Schweppes Capturing Confectionery B are
organizational sources and capacities that enable the business to flourish regardless of substantial challenge
and strategic difficulties in local and international markets.
 As the VRIO/VRIN analysis have shown and highlighted, the important core abilities depend on
intellectual properties and related propriety data or related technological structures.
 Different resources and abilities appeared in the VRIN/VRIO analysis and review that are non-core,
and non-central skills but that help the business and its value chain.
 Cadbury Schweppes Capturing Confectionery B ’s core abilities are strong yet restricted.
 In the resource based view, this constraint presents key difficulties, as the organization wards off
competing players from local and international markets.
 The core capabilities in the VRIN/VRIO analysis assume critical jobs in Cadbury Schweppes
Capturing Confectionery B ’s value chain. Considering the resource based view and Michael E. Doorman's
value chain conceptualization, Cadbury Schweppes Capturing Confectionery B ’s value chain gives
reasonable and tasteful products to target buyers.
 The accompanying outline shows the value chain for Cadbury Schweppes Capturing Confectionery B
and its situation in the bigger value arrangement of the industry:

 Figure 3 Value chain for Cadbury Schweppes Capturing Confectionery B

4.3.2. Value framework

Cadbury Schweppes Capturing Confectionery B ’s value chain is a segment of the business' value
framework. The value framework is made out of different other value chains of the speciality units of
all associations included, for example, the organization's producers and the remainder of the
inventory network. In the value chain representation, Cadbury Schweppes Capturing Confectionery
B works directly, as well as through contracted third parties.

4.3.3. Example from value framework for Cadbury Schweppes Capturing

Confectionery B

 The organization has an internal transportation system of vehicles for making deliveries to other
companies that are in business with stocking and serving Cadbury Schweppes Capturing Confectionery B
products – in the local markets.
 In this value chain and value framework, Cadbury Schweppes Capturing Confectionery B ’s
competitive advantage and abilities are distinguished through the VRIO/VRIN assessment are huge in how
the organization's procedures offer some incentive and advantage to the consumers.

4.3.4. Value chain activities

Brief details of Cadbury Schweppes Capturing Confectionery B ’s value chain are discussed in the
next section:

4.3.4.1. Primary activities

4.3.4.1.1. Inbound logistics

The inbound logistics for Cadbury Schweppes Capturing Confectionery B refers to producers in
different designated and appointed locations by the company. Also, it also refers to selecting the
finest quality raw materials from in-house production as well as from third-party contractors. These
are transported to the storage sites after which the raw materials are used for producing different
products by the company.

4.3.4.1.2. Operations
Cadbury Schweppes Capturing Confectionery B operates internationally directly or indirectly. The
company has owned offshore shops, as well as stocks its products with other shops across different
countries.

4.3.4.1.3. Outbound logistics

The company has contracted agents in offshore countries and sites to manage product selling.
However, a majority of the products are sold directly to licensed sellers and shops locally as well as
internationally.

4.3.4.1.4. Marketing and sales

Cadbury Schweppes Capturing Confectionery B produces and invests in high quality and premium
products. It also invests in a high level of customer servicing and marketing. All its marketing
activities, however, are based on strong market research and market data.

4.3.4.1.5. Service
Cadbury Schweppes Capturing Confectionery B invests in customer service to develop customer
loyalty and build strong relations with its clients. The company invests in gaining and incorporating
customer feedback and in solving customer queries effectively.

4.3.4.2. Support activities

4.3.4.2.1. Infrastructure
This includes different departments like management, finance, legal, etc. which are required to keep
the company’s business running.

4.3.4.2.2. Human resource management

The company’s committed and trained workforce is considered to be a valuable and an inimitable
resource that has played a vital role in the success and growth of Cadbury Schweppes Capturing
Confectionery B the employees of the company are motivated, professional, trained, and work
alongside the company’s mission and goals.

4.3.4.2.3. Technology development

Cadbury Schweppes Capturing Confectionery B has been commended and celebrated for the use of
effective technology not only production but also to make the overall system of production and sale,
 as well as in house production more effective and efficient. Also, the company also uses technology
to communicate and connect with its consumers effectively.

4.3.4.2.4. Procurement
This involves purchasing the raw material for the final product. The company has appointed agents
that work for the company in different countries and regions to purchase consistently high quality raw
material so that the company can produce the finest product qualities for delivering to the
consumers.

4.3.4.2.5. Bottom line

The concept of the value chain for Cadbury Schweppes Capturing Confectionery B helps in
understanding how value is added in each process and stage of the value chain. It also helps to
understand and separate useful activities from those that are not useful as such. This improves the
overall bottom-line of the company and increases the profit margins for the company as well.

4.3.4.3. Virtual chain

4.3.4.3.1. Customer-centrism

 Renewed and enhanced way of engaging with consumers.

 Installation of sophisticated consumer data management systems.
 Made use of artificial intelligence to enhance the value chain.

4.3.4.3.2. Improved technological use

 Installed progressive technology for primary and support activities.

 The overall purpose is to provide a better experience to consumers.
 Allows the company to predict future market conditions, and prepare strategic contingencies
accordingly.
 Allows understanding of consumer behaviour and market movements.

4.3.4.4. Generic strategies

 Managed to establish core competitive strategy in the market.

 Competes in the premium sector.
 Does not engage in competition with other cost groups.
 Worked towards improving the service of premium target groups.
 Consumers understand and perceive the brand as a high quality and premium.
 The brand is appreciated for its focused strategy and standing.
 The brand is appreciated and engaged in for its offerings.

5. INTERNAL ENVIRONMENT ANALYSIS

5.1. Porter’s Strategic Options
 Leading organizations such as Cadbury Schweppes Capturing Confectionery B have obtained
sustainable competitive advantage and have had the option to achieve the strategic position.
 There can be different sources of sustainable competitive advantage for Cadbury Schweppes
Capturing Confectionery B. A firm can depend on innovation to decrease its overall production costs and
would then be able to pass this advantage on to its clients.
 Cadbury Schweppes Capturing Confectionery B can also concentrate on making a differentiated item
or administration to increase its overall share of the pie.
 Cadbury Schweppes Capturing Confectionery B can generate considerable sustainable competitive
advantage utilizing these systems. This is done through means of traditional as well as modern procedures
embraced by Cadbury Schweppes Capturing Confectionery B to competitive advantage hand and increase its
share of the pie.

5.1.1. Differentiation strategy

5.1.1.1. Organizational Leadership

Cadbury Schweppes Capturing Confectionery B has made use of the differentiation factor to
maintain higher leadership and differentiation from industry competition. Differentiation of effective
leadership may be achieved through different forms and basis.

5.1.1.2. Broad product portfolio

5.1.1.2.1. Product Quality

Moreover, this differentiation can fluctuate from item to item, market to market and industry to
industry. Generally, the essential bases of differentiation are quality, durability, usefulness and in a
few consumer loyalty, and brand image. Cadbury Schweppes Capturing Confectionery B has
differentiated its items and products dependent on the quality and set a completely different, and
engaging consumer experience. Brand image

5.1.1.2.2. Brand Image

Aside from these things, it has developed a distinct and distinguished brand image which is
additionally a premise of differentiation and encourages Cadbury Schweppes Capturing
Confectionery B to advertise, promote and market its products and brand better than the competing
players in the local and international markets.

5.1.2. Focus strategy

5.1.2.1. Overall Quality of product and service

The essential premise of differentiation for Cadbury Schweppes Capturing Confectionery B is quality
and premium taste. It serves just premium quality products, which enables it to charge a top notch
and a premium cost. It has embraced the most astounding measures as far as the nature of its raw
materials used for producing its products. At each progression, Cadbury Schweppes Capturing
Confectionery B puts forth an admirable attempt to guarantee that its product fulfils the most
noteworthy quality guidelines.

5.1.2.2. Value addition at each step of the value chain

 However, the account of value does not finish at getting incredible quality of raw materials. It goes
more remote from that point. A great deal of contrast originates from the readiness. Cadbury
Schweppes Capturing Confectionery B prepares its product diligently to draw out the quality.

5.1.2.3. Human resource management

Rest of the credit goes to the human resource and employees at Cadbury Schweppes Capturing
Confectionery B. The brand carefully picks its raw materials - just when they in ideal condition.
Products are tested from each cluster in any event thrice before endorsement. This is how Cadbury
Schweppes Capturing Confectionery B makes the quality that each client looks forward to, and is
excited about.

5.1.3. Leadership and differentiation through cost

Porter’s traditional methodologies are methods for increasing and developing a sustainable
competitive advantage for Cadbury Schweppes Capturing Confectionery B - as it was, building up
the "edge" that will get the company the ideal position and differentiates it from the industry rivals.
There are two primary methods for accomplishing this inside a cost leadership methodology:

 Increasing profits by decreasing expenses, while charging industry-average prices and costs from
consumers
 Increasing share of the overall industry by charging lower costs, while at the same time making a
sensible profit on every trade since Cadbury Schweppes Capturing Confectionery B has controlled and
reduced expenses.

The cost-based strategy and system are that – it includes Cadbury Schweppes Capturing
Confectionery B being the pioneer regarding cost in the industry and market where it operates. Just
being among the most minimal cost producers isn't adequate, as the company leaves itself wide
open to aggressive attacks by other producers and players in the industry. These players may
undermine Cadbury Schweppes Capturing Confectionery B ’s costs and in this way hinder the
company’s endeavours towards the expansion of its share of the overall market pie.

5.1.3.1. Achieving cost differentiation

Based on this, Cadbury Schweppes Capturing Confectionery B should be sure that it can
accomplish and keep up the leading position before deciding on choosing the cost leadership
strategy. Cadbury Schweppes Capturing Confectionery B will be able to become effective in
accomplishing cost differentiation by having:

 Access to the capital expected to put resources into innovation that will cut expenses down.
 Very proficient coordination’s.
 A minimal effort base (work, materials, offices), and a method for economically cutting expenses
beneath those of different competing players.

5.1.3.2. Achieving cost leadership

However, Cadbury Schweppes Capturing Confectionery B should ensure contingency for imitation
by competition, as well as be prepared for competing payers to imitate its cost-effectiveness strategy
to decrease and control their costs, and increase the overall share of the pie for their products as
well. It is therefore important that Cadbury Schweppes Capturing Confectionery B does not only
 settle for one means of cost leadership but continually improves. This can be done through several
different methods:

 Engaging and applying the Japanese technique of kaizen

 High efficiency
 High limit use
 Use of dealing capacity to arrange the least costs for generation inputs
 Lean production techniques (for example JIT)
 Effective creation process
 Effective dissemination channels

5.1.3.2.1. Overall Cost Effectiveness through Cost Leadership and Cost Differentiation

 Cost differentiation and leadership strategy for Cadbury Schweppes Capturing Confectionery B will
be based on the nitty-gritty.
 Cost initiative endeavours towards slicing expenses to a base to give clients lower costs and in this
manner will help the company of Cadbury Schweppes Capturing Confectionery B to reserve funds.
 Cost leadership strategy requirements regularly identify with high specialized abilities and access to
capital
 The company should also resource into innovation and guarantee economies of scale.

5.2. SWOT Analysis

 Cadbury Schweppes Capturing Confectionery B maintains its competitiveness as one of the best and
the most premium locally and internationally through inventive systems that use business strengths in
overcoming the weaknesses present in the business inherently.
 Also, they make use of these internal strengths and weaknesses to make use of opportunities and ward
off potential threats, for example, the dangers in the business condition and market.
 These factors can be distinguished, assessed, and analysed through the strategic SWOT tool.
 The SWOT analysis and review for Cadbury Schweppes Capturing Confectionery B talk about the
strengths and weaknesses (internal core strategic components) intrinsic in tasks in the business, and for the
Cadbury Schweppes Capturing Confectionery B organization.
 The assessment and analysis of SWOT likewise look at the opportunities and threats (external key
variables) identified with the nature of competitiveness in the market and industry, which is mostly founded
based on the level and intensity of competition and rivalry – as may be gauged through Porter's Five Forces
analysis of Cadbury Schweppes Capturing Confectionery B.

5.2.1. The need for SWOT because of expanded operations of Cadbury

Schweppes Capturing Confectionery B

 Cadbury Schweppes Capturing Confectionery B is present and operational in different markets, and
each of the markets poses unique yet various difficulties in developing the business.
 Cadbury Schweppes Capturing Confectionery B and its portfolio in these many markets have
expanded over time and as the organization grows, more items are added to its portfolio in addition to its
pioneer product.
 With regards to the SWOT analysis model, these circumstances of multiple operations and multiple
presences in various markets make a difficult business situation where the organization needs to utilize
various arrangements of skills that match different markets.
 Core elements of different nature – both internal and external to the organization, can help increment
Cadbury Schweppes Capturing Confectionery B ’s accomplishment in contending with different companies
and other businesses – both locally and internationally.
 The SWOT analysis for Cadbury Schweppes Capturing Confectionery B is presented below:

5.2.2. Cadbury Schweppes Capturing Confectionery B Strengths (Internal

Strategic Factors)
This section of the SWOT analysis model works with the inner variables that the organization can
use as competencies and strengths to address shortcomings and ensure the business against
rivalry. For this situation, Cadbury Schweppes Capturing Confectionery B ‘primary qualities are:

5.2.2.1. Strong brand image

 Cadbury Schweppes Capturing Confectionery B is one of the world's most premium, well known and
most famous brands.
 The organization has a developing populace of steadfast clients, which adds to the soundness of the
business.

5.2.2.2. International distribution network

 In the SWOT analysis model, the global distribution network through directly owned subsidiaries, or
contracts with third-party agents further strengths Cadbury Schweppes Capturing Confectionery B by
supporting activities.
 For instance, the organization has a worldwide system of providers that are deliberately chosen
dependent on criteria relating to quality, for example, of raw materials as has been discussed in the value
chain - primary and supporting activities.

5.2.2.3. Strong investment in research and development, and high focus on innovation

 The focus on innovation not only keeps the company apart but also facilitates its industry leadership.
 The internal core strengths and competent variables recognized in this section of the SWOT analysis
of Cadbury Schweppes Capturing Confectionery B demonstrates that the business has qualities that advance
strength through expansion and a worldwide production network.

5.2.2.4. Focus on market research

 Additionally, the organization steadily expands its business

 This is done through contracts with offshore agents and licenses. Also, the company continues to
broaden its portfolio by adding new products based on market research and consumer data.

5.2.3. Cadbury Schweppes Capturing Confectionery B Weaknesses (Internal

Strategic Factors)
Business weaknesses or shortcomings are recognized in this part of the SWOT analysis.
Shortcomings are inward factors that diminish or cut off business capabilities and strengths. Cadbury
Schweppes Capturing Confectionery B shortcomings are as per the following:
 5.2.3.1. Premium prices for most portfolio products

 Cadbury Schweppes Capturing Confectionery B has a premium brand image attached, and thus all its
products in the portfolio are priced highly
 This expands overall revenues yet decrease the affordability of its items.
 This internal key factor is a shortcoming since it confines the organization's share of the overall
industry, particularly in territories with generally lower disposable earnings

5.2.3.2. Standard and benchmarked regulations and business procedures for all portfolio
items

5.2.3.2.1. Generalization

 Likewise, this SWOT analysis highlights that generalized standards for all portfolio products may be a
weakness because it restrains the adaptability of these products and items in the business.

5.2.3.2.2. Imitability

 What's more, numerous Cadbury Schweppes Capturing Confectionery B items are imitable.
 Several items in the portfolio have been imitated by completion, and are also being provided by them
at different price points.
 Though the quality is unique to Cadbury Schweppes Capturing Confectionery B, the competing
players have also developed close enough, and acceptable products.
 This business condition engages competition, as has been highlighted already.

5.2.3.3. Fighting the challenge of imitation

 The internal factors in this section of the SWOT analysis of Cadbury Schweppes Capturing
Confectionery B demonstrate that the business must create qualities to diminish the unfavourable impacts of
impersonation and the impact of high value focuses on the organization's share of the overall industry in the
international and local business.

5.2.4. Opportunities for Cadbury Schweppes Capturing Confectionery

B(External Strategic Factors)
This section of the SWOT analysis and strategic model focuses on external components that
opportunities for business development and advancement. For this situation, the key opportunities
accessible to Cadbury Schweppes Capturing Confectionery B are:

5.2.4.1. Green business products

 With an increased focus and awareness of health and wellness lifestyles by consumers, it is important
that Cadbury Schweppes Capturing Confectionery B recognizes this as a viable business opportunity.
 Increased numbers of consumers are shifting to the green lifestyle of consuming environmentally
friendly and organic products.
 Cadbury Schweppes Capturing Confectionery B should focus on the expansion of the product
portfolio: inclusion of green products and environmentally sustainable services are suggested.
 5.2.4.2. Expansion in emerging markets

 Cadbury Schweppes Capturing Confectionery B can expand its income streams through expansion
and developing presence in emerging markets – such as Brazil, China and India.
 This opportunity draws consideration far from the U.S. region, where the majority of the
organization's incomes are created.

5.2.4.3. Business enhancement

 Likewise noteworthy in this SWOT analysis of opportunities is the opportunity of business

enhancement and further business development.
 This can help improve the long term position of Cadbury Schweppes Capturing Confectionery B.
 For instance, through higher diversification of the portfolio and the overall business, the Cadbury
Schweppes Capturing Confectionery B organization can diminish its reliance on its present enterprises, and
along these lines work towards improving its general income development.

5.2.4.4. Partnerships with different firms

5.2.4.4.1. Diversification through Partnerships

 Diversification is right now a minor strategy as can be observed from Cadbury Schweppes Capturing
Confectionery B ’s competitive strategy and its overall directive strategy as well.
 The business environments likewise display the chance to enhance the organization's competencies
and strengths
 This will also increase its share of the overall industry through the association’s s with different firms.
For example, a partnership with real retailers improves dispersion.

5.2.4.4.2. Development of corporate clientele

 The company can also formulate new B2B relations and contracts with other companies and corporate
entities.
 The external key factors in this section of the SWOT analysis demonstrate that Cadbury Schweppes
Capturing Confectionery B can improve its industry position by building up its activities to make use of the
opportunities in the international business markets.

5.2.5. Threats facing Cadbury Schweppes Capturing Confectionery B(External

Strategic Factors)
Threats against the Cadbury Schweppes Capturing Confectionery B business are distinguished in
this piece of the SWOT analysis. Threats are external components that decrease or breaking point
of business execution. In this case of Cadbury Schweppes Capturing Confectionery B, the following
section looks at, and assesses threats that apply to the organization in question:

5.2.5.1. Price wars by competition

 Cadbury Schweppes Capturing Confectionery B competes with a wide assortment of firms in the local
as well as the international market.
 For instance, the organization competes against significant premium companies as well as against
cheaper companies that offer cheap priced items and products.
 This external but important factor in the SWOT assessment undermines Cadbury Schweppes
Capturing Confectionery B because such competing players can lessen the organization's share of the overall
industry by competing based on low prices and overall low costs of production.

5.2.5.2. Increased competition

 Additionally, this SWOT assessment also analyses increased competition as a noteworthy threat
against the business.
 In light of the organization's shortcomings, the risk of imitation includes firms that attempt to
duplicate the taste, look and feel of Cadbury Schweppes Capturing Confectionery B items.
 Saturated market place and industry can also lower sales of the organization and shrink its share of the
overall pie
 Increased competition can also lead to the increased cost of doing business for the organization if they
bring innovative processes, and implement novice systems to control costs

5.2.5.3. Independent players

 The industry environment and profitability are liable to invite independent developments, and small-
scale players.
 These players may not have high levels of integration and may be retailers and marketers for items
produced during backward integration.
 Strategic marketing techniques and promotional communications are expected to neutralize the
impacts of these patterns.
 This section of the SWOT analysis of Cadbury Schweppes Capturing Confectionery Brecognizes
external key factors that force difficulties to international expansion and growth of the company as well as
highlight market infiltration.

5.3. TOWS Matrix

TOWS analysis will allow Cadbury Schweppes Capturing Confectionery B to identify and understand
the strategic choices and future strategic options and directions available to the company. The
TOWS matrix and analysis will help Cadbury Schweppes Capturing Confectionery B to look at
various possible future and long term situations, and ill force Cadbury Schweppes Capturing
Confectionery B to look at these options by questioning strategic directives such as:

 How will Cadbury Schweppes Capturing Confectionery B make the most of its strengths and core
competencies?
 How will Cadbury Schweppes Capturing Confectionery B Circumvent its weaknesses and
shortcomings?
 How will Cadbury Schweppes Capturing Confectionery B capitalize on the various opportunities
present in the business environment?
 How will Cadbury Schweppes Capturing Confectionery B ward off, and manage the threats that are
present in the external business environment?

The analysis of the SWOT and the subsequent assessment and development of the TOWS matrix
will allow the Cadbury Schweppes Capturing Confectionery B to be able to identify the following
answers:
 Strengths and Opportunities (SO) – How would Cadbury Schweppes Capturing Confectionery B be
able to utilize on its strengths to exploit the opportunities?
 Strengths and Threats (ST) – How would Cadbury Schweppes Capturing Confectionery B be able to
exploit its strengths and core competencies to keep away from genuine and potential threats?
 Weaknesses and Opportunities (WO) – How would Cadbury Schweppes Capturing Confectionery B
be able to capitalize on its opportunities to overcome the weaknesses that Cadbury Schweppes Capturing
Confectionery B is encountering?
 Weaknesses and Threats (WT) – How would Cadbury Schweppes Capturing Confectionery B be able
to limit its weaknesses and evade threats?

5.3.1. TWOS matrix visual presentation

Table 1 TWOS matrix for Cadbury Schweppes Capturing Confectionery B

Strengths Weakness
TWOS Matrix
 Leading premium company that  Major dependence on the mar
operates internationally as the country of origin market
 Leading presence across  Despite being in operation
countries decades, has standard procedures
 Reasonable control over regulations for all portfolio items
production and distribution due to  Imitability possible
backward and forward integration competition

Opportunities SO strategies WO Strategies

 New South Asian and Asia 
Pacific regions available for
expansion – emerging markets
 Acquisition of medium-sized
similar companies and shops in
developing countries
Expanding into Asia Pacific 
region and stabilizing emerging
markets by opening new stores and
developing new products
Increasing more stores outs
the country of origin, and in ot
parts of the world – especi
emerging markets such as In
China and Brazil

Threats ST strategies WT strategies

 Increased marketing from  Improving the ambience of  Increase budget for market
competing players, which might service, focusing on augmented communications, and strate
affect sales negatively service levels when providing promotions and pursue a mode
 An increasing number of products and adapting to local expansion strategy
independent producers and marketers culture.
 Increased and saturating
competition

 The TOWS Matrix is a moderately basic strategic tool used by Cadbury Schweppes Capturing
Confectionery B for producing key alternatives and identifying key strategic alternatives that may be pursued
by Cadbury Schweppes Capturing Confectionery B.
 By utilizing it, Cadbury Schweppes Capturing Confectionery B can take a look towards understanding
that it can best exploit the opportunities present, while at the same time also limit the effect of shortcomings
and ensure itself against threats.

5.4. ANSOFF Matrix

 Cadbury Schweppes Capturing Confectionery B has viably utilized this instrument to develop a
procedure for accomplishing competitive advantage in the industry and various markets it operates in.
 Recently, Cadbury Schweppes Capturing Confectionery B has made use of the four strategies of
Ansoff matric to maintain competitive advantage and leadership position. These strategies are
 Market development
 Market penetration
 Product development
 Product penetration

The following section highlights the various strategies that may be used through the Ansoff matrix.
These strategies have been highlighted and identified through vigorous research methodologies, as
well as through expert analyst data and opinion.

5.4.1. Market development strategies

5.4.1.1. Advertising and promotion of products

 One of the most popular means of developing a market is to use marketing strategically.
 By making use of advertising and marketing communications, the company will be able to
disseminate information about its product, and the various benefits of consumption to its target market easily.
 Also, the use of social media for marketing will, at the same time allow the company to communicate
directly with the consumers, and answer their queries.

5.4.1.2. Education about product consumption.

 The company can make use of widespread marketing campaigns using traditional means as well as
means of social media to increase awareness of their product amongst the target market.
 This task of educating the markets will give the company a first-mover advantage, as well as develop
important functional appeals for the product.

5.4.2. Market penetration strategies

5.4.2.1. Geographical expansion

 The company can expand into other markets through its previous experience, as well as through
partnerships and contracts with other agents and parties.
 The company can also develop subsidiaries, as well as offer its products through franchising as well as
licensing.
 The geographical expansion is suggested into emerging economies because of the favourable income
levels of the consumers, as well as the growing infrastructure.

5.4.2.2. Increased number of retail outlets and retail presence

 The company can penetrate existing markets by offering more shops or making its product more
widely available.
 This may be done through increasing the accessibility of the product at places where the target
consumers are expected to purchase from, as well as improving the interaction of the product with consumers
at different touchpoints.

5.4.2.3. Online retailing

 Another means of improving market penetration is through online retailing. Cadbury Schweppes
Capturing Confectionery B can stock its products on online retailing sites locally and internationally.
 This would help the company improve sales, accessibility, as well as reach higher levels of target
consumers. All of this, in turn, would increase market penetration.
 Besides, it would also help the company maintain and control costs for Cadbury Schweppes Capturing
Confectionery B, and thereby help it achieve cost leadership in the industry

5.4.3. Product development strategies

5.4.3.1. Research and development

 To be able to develop new products, the company should have a focused interest and budget sending
allocated to new product research and development.
 This research would take a basis in the consumer market and the overall market trends, to identify the
gap in consumer demands, and market availability of different products.
 The new product would then generally be aimed towards fulfilling this gap.

5.4.3.2. New product development labs

 The company should have dedicate incubation labs for the development of new products.
 This means that this development should be a focused and separate entity that should focus on the
company’s innovation.
 The company should also hire the right talent for business development and innovation to be able to
achieve targets and goals accordingly.

5.4.3.3. Market testing

 New products should follow PD cycles for testing before launching in a market.
 This will ensure that the company can fix any loopholes present in the product, as well as incorporate
positive feedback.

5.4.3.4. Strategic Marketing

 The company should also have a focused and strategic budget for marketing and communications
allocated for new product development.
 This is because the company will need to increase the appeal, as well as develop functional and
emotional appeals and characteristics of the new product.
 Communicate with the consumers to enhance sales as well as increase likeability and rate of
consumption and trial.
 5.4.4. Product penetration strategies

5.4.4.1. Acquiring personally owned retail to strengthen its presence.

 One way of increasing product penetration is that the company directly manages and controls sales
operation through owned retail.
 This will give the campy leverage over communication, as well as product stocking and placement.

5.4.4.2. Diversification of portfolio

 The company can further expand its portfolio as a means of product penetration.
 The expansion of the portfolio will allow the company to reach a different and diverse target group,
thereby increasing the overall share of the pie for the company
 This will also increase Cadbury Schweppes Capturing Confectionery B ’s products’ accessibility to
different consumers.

5.5. SAF criteria

5.5.1. How Cadbury Schweppes Capturing Confectionery B can strengthen its
strategic position using SAf criteria

 When Cadbury Schweppes Capturing Confectionery B is deciding upon a certain strategic direction
for the future, it will face challenges.
 Choosing the right strategy at the right time can be a daunting task for managers.
 It is therefore important that managers look at the strategy from aspects of its value and viability.
 The principal thing the managers of Cadbury Schweppes Capturing Confectionery B will have to do is
settle on a foundation by which to evaluate the different strategic alternatives.
 They will also need to choose a viable methodology is to assess the different strategies independently.
 Strategies can be evaluated and assessed using criteria of suitability, acceptability and feasibility
(SAF).
 The following section weighs different strategies and possible future directives for Cadbury
Schweppes Capturing Confectionery B based on the SAF criteria.

5.5.2. Creation of a menu for high-income groups

5.5.2.1. Suitability

5.5.2.1.1. New market development

 This strategy is suitable because it will allow Cadbury Schweppes Capturing Confectionery B to
develop new markets by tapping into new consumer groups.
 At the same time, it will allow the company to penetrate higher into existing markets.
 Both these possibilities can be realized because Cadbury Schweppes Capturing Confectionery B
invests in consumer research and has a strong financial standing.

5.5.2.2. Acceptability
 5.5.2.2.1. Alignment with organizational goals

 The strategy is acceptable because it is in line with the company’s goals and mission.
 Also, it is also in line with the internal marketing and culture of the organization.

5.5.2.2.2. Financial risk

 As such, the strategy does not pose any risk – financially and otherwise and is also palatable for
stakeholder reactions.
 Lastly, the strategy promises to give high returns. Overall, the strategy appears to be highly
acceptable.

5.5.2.3. Feasibility

5.5.2.3.1. Market research and financial cushioning

 This strategy is highly feasible.

 This is because the company already operates along with this mission, and has high levels of market
research and information regarding high-income groups.
 This information could be utilized for creating a suitable menu for high-income groups.
 At the same time, the company also has the financial power to introduce premium menu items for the
higher class – to expand its menu accordingly.

5.5.3. Creation of a healthy menu for existing target consumer groups

5.5.3.1. Suitability

5.5.3.1.1. Diversification of product portfolio

 This strategy would require a high diversification of the product portfolio.

 This is suitable because the company has the resources and the information to make strategic decisions
about diversification.

5.5.3.1.2. Innovation

 Moreover, the company also innovates regularly, which can be an added benefit for the suitability of
the strategy.

5.5.3.2. Acceptability

5.5.3.2.1. Risk of financial investment

 This strategy appears to be moderately acceptable.

 This is because it poses a risk through diversification with high levels of finances invested, the
company can never be too sure of the consumer reactions.
 5.5.3.2.2. Risk of new product development

 Therefore, the risk of new product development and consumer reaction would be there.
 Also, the acceptability is also low because of stakeholder reaction – who might not all agree with the
expansion of the portfolio horizontally – i.e. The broadening of the portfolio away from the core offerings.
 Lastly, if the strategy works, it promises high returns, which make sit low to moderately acceptable.


5.5.3.3. Feasibility

5.5.3.3.1. Market research and financial cushioning

 This strategy is also feasible for the company.

 This is because of the company’s strong financial position, as well as its ability to researching into
different market trends and patterns.
 The identification of these trends and patterns is important for being able to decide which market and
industry to diversify into for the company.

5.5.4. Increasing existing advertising expenditure

5.5.4.1. Suitability

5.5.4.1.1. Focused budgeting

 This strategy is suitable because the company has high and focused budgeting for marketing and
communications.
 This would also allow Cadbury Schweppes Capturing Confectionery B to withdraw from failing
markets or markets that have a weak share, and gain access to rising markets.

5.5.4.1.2. Strategic marketing

 The company will be able to exploit its research and development for strategic marketing
 Cadbury Schweppes Capturing Confectionery B will also make use of existing systems and products
to reach new consumer groups through marketing.

5.5.4.2. Acceptability

5.5.4.2.1. Return on investment

 The strategy is acceptable because it poses a low risk in terms of investment in strategic marketing.
 Also, it promises high returns on investment in marketing through the promise of increased awareness,
increased penetration, increased brand recall and brand recognition – all of which will translate into higher
sales.
 Lastly, stakeholders will also not frown upon this strategy, which makes it more acceptable to
implement.
 5.5.4.3. Feasibility

5.5.4.3.1. Market research and financial cushioning

 The strategy is highly feasible because the company has a strong financial standing.
 This means that the company can afford to increases budget for marketing purposes.
 However, for the stagey to be successful, it is important that the company aces sure that all
promotional campaigns developed are in sync with consumer needs, demands and behaviour.
 This is again possible for the company because of its investment in research and development.

6. FINAL RECOMMENDATIONS
Based on the overall internal and external analysis done for Cadbury Schweppes Capturing
Confectionery B, this section will offer recommendations which will help the company take on
strategic directions that will enhance its core competencies and capabilities, as well as reduce its
chances for risks and threats? The following recommendations are thus made for Cadbury
Schweppes Capturing Confectionery B:

6.1. Strengthen distribution network

6.1.1. Control
This is an important strategic recommendation as it will allow higher control to the company over its
products in different markets. The company will be able to control where its products are placed, and
thereby, will also be able to enhance the accessibility and easy availability of its products.

6.1.2. Stronger relation with consumers

At the same time, the strengthening of the distribution network will allow the company to work more
closely with end consumers by being able to reach them with the same high quality of products
across different markets.

6.2. Develop unique marketing tactics

6.2.1. Higher penetration
This strategic recommendation will help the company reach a higher number of consumers and
penetrate deeper into target consumer groups. Also, this strategy will allow the company to increase
trial and consumption and sales of its products.

6.2.2. Forming a partnership with consumers

Unique marketing tactics will involve new and informed strategic means of communicating with the
consumers and engaging them with the brand. One way that this can be done is by making
consumer co-producers for the brand. Another way that Cadbury Schweppes Capturing
Confectionery Bcan do this is through co-branding with other similar, yet dissimilar brands and
companies to enjoy higher market visibility amongst target consumers.

6.3. Adapt to different cultural aspects of different markets

6.3.1. Identify different consumer group characteristics
Each market and target group has distinct characteristics. This recommendation is suggested so that
the company can connect better with different target groups in different markets.

6.3.2. Adapt to and respond to characteristics

By adapting to different cultural and regional characteristics, the company will be able to present
itself better to target consumers – who would then feel a greater affinity, and more likeliness of
consuming the product and the service.

6.4. Expand into new regions

6.4.1. Market expansion
Another strategic recommendation for Cadbury Schweppes Capturing Confectionery Bis to expand
into newer regions and markets. This can be done by expanding into new markets, firstly. This
expansion will give the company exposure to new consumer groups. Increase the overall
consumption rate, as well as diversify income streams. Also, it will give the company related
expansion exposure regionally as well as internationally.

6.4.2. Product diversification

Another means of expansion is through product diversification. By adding new products, the
company will be Abe to penetrate deeper into existing markets bye exploring new consumer groups,
and new target consumer groups. This will also diversify income streams for the company, and
increase its overalls hare of the market.

6.5. Strengthen value network

By strengthening the value network further, and by adding quality and enhanced elements at
different stages, the company will be able to maintain competitive advantage, as well as put off new
players from the industry by increasing barriers to entry. This will allow the company to maintain
sustainable competitiveness over other players, as well as maintain a possible leadership position in
the local and international markets and industry.

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