Cover

Table of Contents
List of Figures..................................................................................................................................3

List of Tables...................................................................................................................................3

Introduction.....................................................................................................................................4

Company Overview.....................................................................................................................4

Current Challenges......................................................................................................................5

Vision,Mission and Purpose........................................................................................................5

Analysis...........................................................................................................................................6

PESTEL Analysis........................................................................................................................6

Porter’s Five Analysis...............................................................................................................11

Threat of Intense Rivalry.......................................................................................................11

Threat of new entrants...........................................................................................................12

Threat of substitute products or services...............................................................................13

Threat of suppliers’ growing bargaining power....................................................................13

Threat of buyers’ growth bargaining power..........................................................................13

SWOT Analysis.........................................................................................................................14

Strengths................................................................................................................................14

Weakness...............................................................................................................................14

Opportunities.........................................................................................................................15

Threats...................................................................................................................................15

Proposed Strategy..........................................................................................................................16

Strategic Alternatives................................................................................................................16

Porter’s generic strategies..........................................................................................................17

Proposed strategy.......................................................................................................................18
 Evaluating Strategy...................................................................................................................20

Suitability..............................................................................................................................21

Acceptability..........................................................................................................................22

Feasibility..............................................................................................................................23

References.....................................................................................................................................23

List of Figures

Figure 1 : Cadbury Logo.................................................................................................................4

Figure 2 : Porter's Five analyzes....................................................................................................11

Figure 3 : Competitor positions in UK confectionery Market......................................................12

Figure 4 : Business Stratergy.........................................................................................................17

Figure 5 : Corporate Strategy directions.......................................................................................17

Figure 6 : Three Generic Strategy.................................................................................................18

Figure 7: Global Market Share for Healthy Snack........................................................................19

Figure 8 : Market revenue of Energy bars at UK.........................................................................19

Figure 9 : Major Competetior related to snack bars in UK...........................................................20

Figure 10 : Stages of Industry Life Cycle.....................................................................................21

Figure 11 : Map of Stakeholder in Market....................................................................................22

Figure 12 : Iife cucle of Business Finance....................................................................................23

List of Tables

Table 1 : PESTEL Analysis of Cadbury..........................................................................................6

Table 2 : SWOT for Cadbury........................................................................................................16

Table 3 : SWOT covered by proposed strategy.............................................................................20

Introduction

Today, confectionery is one of the most popular products. Confectionery is one of the most
decadent treats available to nearly everyone nowadays [ CITATION IBI20 \l 1033 ]. Despite
rising concerns about its influence on population health outcomes in the wake of the worldwide
pandemic [ CITATION Fin20 \l 1033 ], its attractiveness outstrips demand for any other form of
treat [ CITATION Wad20 \l 1033 ]. Despite the fact that the developed countries of Western
Europe and North America have the world's largest confectionery consumers [ CITATION
IBI20 \l 1033 ],this established market industry is on the verge of oversaturation [ CITATION
Arr20 \l 1033 ]and stagnation in this decade [ CITATION ICC12 \l 1033 ].

This research aims to suggest a revision of the Cadbury UK brand's business strategy based on
an examination of its internal micro and macro environments, as well as the problems it
confronts in the UK confectionery market. Cadbury is a subsidiary of Mondelez International, a
global corporation located in the United States. Cadbury sells biscuits as well as sweets in the
United Kingdom, but this study will concentrate solely on the chocolate confectionery Strategic
Business Unit part of the company.t self-indulgent treats available to nearly all customers
[ CITATION IBI20 \l 1033 ]

Company Overview

Figure 1 : Cadbury Logo

Cadbury was founded in 1824 by John Cadbury and primarily focused on the tea, coffee, and
chocolate beverages markets [ CITATION Cad20 \l 1033 ]. However, in 1866, the company
took a chance on a new Dutch-invented press, making it the first in the world to manufacture
unadulterated cocoa [ CITATION Cad20 \l 1033 ]. The first British company to do so
[ CITATION Fin19 \l 1033 ], it revolutionized the country's cocoa industry and paved the way
for the brand's future success.

The firm prides itself on being a socio-community model company [ CITATION Sar15 \l
1033 ], owing to its improvements in working conditions and social benefits for its employees
by establishing the Bourneville plant and neighboring hamlet between 1879 and 1895.
[ CITATION Cad20 \l 1033 ]. Dairy Milk chocolate [ CITATION Can20 \l 1033 ], the
company's most well-known and cherished product, has been in production since
1905[ CITATION Cad20 \l 1033 ]..

After a contentious acquisition by the American food business in 2010 [CITATION BBC20 \l
1033 ], the brand is now owned by Mondelez International, previously Kraft Foods. It is based
in Uxbridge, London, and has operations in over 60 countries worldwide [ CITATION Har20 \l
1033 ]. Cadbury is the second largest brand in the candy manufacturing sector [ CITATION
Sha181 \l 1033 ], and it has frequently been considered one of Britain's most successful cultural
exports ever [ CITATION The131 \l 1033 ]. Its portfolio of high-quality, great-tasting chocolate
confectionery includes classics like Crème Eggs, Wispa, Flake, Twirl, and many others.

Current Challenges

Several external threats threaten Cadbury's market position in the highest tier of chocolate
confectionery. Shifting customer priorities, awareness, ethical standards, and sustainability are
all examples of these forces. In the midst of the coronavirus pandemic, its rivals continue to
make progress in digital marketing [ CITATION Gra20 \l 1033 ], online sales growth
[ CITATION Eli20 \l 1033 ], and sustainability practices [ CITATION Rog19 \l 1033 ].

Vision,Mission and Purpose

Cadbury's parent business, aims to "empower people to snack correctly", thereby

democratizing snacking. This is strongly linked with Cadbury's purpose and vision statement, a
firm that has been entrenched in understanding and reacting to customer demands from its
inception [ CITATION Coe13 \l 1033 ]. The brand's vision and purpose are clearly stated,
providing a cohesive framework of identity, meaning, and prioritization of its values and long-
term goals.

This corresponds to numerous research showing that such phrases have a good influence on
customer values in order to encourage (consumers) supporter by establishing a customer service
culture. This means that criticisms might claim that the assertions are unmeasurable and not
time-limited – two goal-setting components supported by an objective setting model
[ CITATION Fis20 \l 1033 ]

Analysis

PESTEL Analysis

A tool often used for macro scanning is PESTEL analysis. The macro environment refers to
external effects in the form of dangers to organizations on the market or possibilities
[ CITATION Mas17 \l 1033 ]The objective of a study using PESTEL is to discover possible
business prospects and risks [ CITATION Mas17 \l 1033 ]. Each element is weighed against the
risk level or uncertainty presented by it, the impact and, therefore, the mitigation or action to
relieve its consequences.
Table 1 : PESTEL Analysis of Cadbury

Factor Risk Potential Impact Mitigation Option

Political HIGH In any trade crisis Maintain the

between the EU and political minds of the
United kingdom
the UK, the risk of UK/EU. Customer
Brexit's
damage on the lobbying
Consequences on
Cadbury supply administrations
import tariffs, trade
chain/from abroad if excluding candy
obstacles, lack of
harsher border tariffs snacks.
skills, recruiting
are applied.
employees, pay
increases

LOW British customers All chocolate

might increase sales manufacturing
The Government of
and customer- products are
Post Brexit focuses
perceived Cadbury continuing to return
on goods and
value in demand for to the UK
products "Made in
British products. [ CITATION
UK."
BBC21 \l 1033 ]Con
[ CITATION
tinued
GOV20 \l 1033 ]

HIGH The threat of Smaller product

replacement goods is sugar - Cadbury
Proposal to impose
reduced profit, chocolate goods are
'Sugar tax' for all
increased products presently being sold
high sugar goods
pricing. 30 percent lower. .
[ CITATION
Take the product
Tho18 \l 1033 ]to
into consideration.
lower obesity levels
 among the 'Reducing' '
population.

Economics MEDIUM Possibly increase the Evaluate the price of

luxury of Cadbury products and
Estimated post-
chocolate by profitability
pandemic increase in
reducing customer initiatives.
unemployment
disposal revenues.

MEDIUM Lower pounds, due Restructure supply

to more costly arrangements or
British business
imports, will price increases
health issues post-
increase inflation – according to
Brexit COVID.
which will influence inflation and
a profit margin for business rates.
Cadbury.

HIGH Profit loss from To ensure

shops' non-sold collaboration and
During bear
stock. strategic resources
markets, companies
management, get
are reducing
support for key
inventories of
decision-makers in
particularly
retailers.
perishable chocolate.

Social HIGH Therefore, many Sophisticated

merchants move into connectivity and
Online shopping
or mostly online multitude supply
growth is estimated
sales and provide a strategy to identify
to endure after the
brand new path for the finest ways of
epidemic
new entrant danger gaining and
and prospective maintaining the
rivalries in this shopper's loyalty.
 unexplored industry.
More retailers are
shopping online

MEDIUM The passion of With the powerful

chocolate lovers emotive marketing,
Consumer marketing
should be focused Cadbury continues
connection growth
against the rational to guarantee
side of marketing & customer support.
sales, such as CSR This has been
initiatives, demonstrated by
sustainable practice, recent camps like
perceived value of "Worldwide Hide"
customers [ CITATION
Cad201 \l 1033 ]

LOW Influencer's growth Implement listening

can support activities on social
Marketing in social
(increase) or reject media to follow
media
(lower) product sales customer issues and
in the social media. obtain insight into
trends in emerging
markets
[ CITATION
Mas17 \l 1033 ]Com
mit to the
development of
high-profile
influence to bring
the marketing
expenses closer to
the customers and
 increase sales.

MEDIUM R&D is expensive Assess rising desire

and timely. Risk of for vegan items on
Customers
losing consumer non-vegan products
frequently becoming
perceived value. by consumers.
aware of 'healthier'
Experimenting a
options, such home
healthy prototype
baking, vegan
replacement and pre-
chocolate, chocolate
launch competitive
with reduced sugar
analysis
levels

Technology HIGH A host of Make promotional

alternatives for programs that induce
Conflicting customer
customers as the loyalty, e.g. Cadbury
satisfaction and
internet provides a application, card etc.
digitization
way to raise
awareness of options

HIGH Rise from a specialty In order to

to socially investigate Cadbury,
Exponential
acceptable it will be possible to
technical
sustainable materials produce a vegan
advancements in
of healthful vegan chocolate product in
plant dairy
Product lines line with peers such
production
as Mars
[ CITATION
Mar20 \l 1033 ]

Environment MEDIUM Consumers are Increased support for

increasingly aware sustainable
Climate change and
or absence of agriculture to ensure
unsustainable
sustainable long-term production
production
 [ CITATION organizational of cocoa.
Swe20 \l 1033 ] practices

Legal MEDIUM Packaging of plastic By 2025 the

products from company announced
Government by 2042
Cadbury to comply a 100% recyclable
to remove plastics
with law packaging objective
for single use
by 2025

Porter’s Five Analysis

Porter's Five analyzes competitive activities that help firms evaluate if competitive threats are
strong or intensive [ CITATION Ope19 \l 1033 ]. Every force demonstrates a competitive
element which impacts the capacity of an organization to participate in an industry successfully.
The five forces of Porter are used here to identify opportunities and challenges in the snack
sector.

Figure 2 : Porter's Five analyzes

Threat of Intense Rivalry

There is a projected decrease in profitability in the clothing sector over the coming decade in the
UK clothing snack market [ CITATION IBI20 \l 1033 ]. This decrease indicates that the risks of
the pricing battle for cash-straped clients are increasingly competitive among organizations. In
addition, several of Cadbury's rivals started creating and marketing alternatives to healthy snack
choices as proof that the business has moved from a customer niche to a larger public that loves
chocolate.

Figure 3 : Competitor positions in UK confectionery Market

There is intense segmental rivalry, because while it is yet to be determined that the tastes and
wishes of the chocolate enthusiast and the average consumer after the pandemic and the
proliferation of healthy snacks will likely drive many away from high-fat products As rivals did
and risk losing interest and market share, Cadbury had to take equivalent steps in the vegan
market. Cadbury must continue to invest in new innovation in products, strong advertising
campaigns and competitive pricing strategies in order to obtain competitive advantages and
distinction.
Threat of new entrants

Customers who are acquainted with a strong brand are frequently hesitant to try to build a new
unknown brand , incumbents have established supply lines, distribution networks, B2B and B2C
partnerships, a client base to whom the new brand must be working. In that way, companies
may frequently petition governments to introduce new rules that work for their sakes
[ CITATION Gra20 \l 1033 ], for example campaigning for lower taxes on low sugar or no
sugar policies may lessen the barrier's strength for newcomers specializing in this product.

Moreover, in contrast with the creation of "bricks and morter stores" with extra costs, the
continuing expansion of online shopping decreases the initial overhead costs for new
entrants. the threat posed to Cadbury by new competitors in the sector is modest due to the
accumulated advantages of the organization over a century of trade, scale and experience,
customer loyalty and broad CSR efforts to the typical consumer.

Threat of substitute products or services

Global worry over fat is rising particularly following the demonstrated serious effect of the
coronavirus on those with worse condition. During the pandemic, domestic locks have led to an
increase in healthy home baking in many UK houses, particularly in the younger, more health-
conscious and more time-consuming generations.This is considered a medium-scale danger
since domestic baking as an alternative to high-sugar pre-packaged items is increasing and
constitutes a challenge to the Cadbury market. However, chocolate pre-packaged remains far
higher

Threat of suppliers’ growing bargaining power

Organic cocoa is provided from traders in Central and South America, West Africa, and Pacific
Asia for Cadbury's manufacture of chocolate pastries. This variety of the supply chain works as
an anti-supplier negotiation tool since Cadbury may easily move on to buying from one supplier
to another if demand from one source is too high or quality too low. In addition, suppliers are
distributed, which decreases the amount of influence on the market from a single trade bloc.
Although not unique [ CITATION Coc20 \l 1033 ] , a lack of chocolate ingredients does give a
degree of negotiating power for farmers.
Cadbury is a huge corporation owned by an even greater global company, which prevents any
negotiating provider from posing this danger. Nevertheless the brand may sometimes be held by
a steady contractual provider in a COVID environment in which regional breakouts may
interrupt the supply chain of an organization as is seen in South America.

Threat of buyers’ growth bargaining power

Cadbury, save for its Cadbury world attraction shop, was mostly a B2B enterprise for wholesale
merchants until the onset of the pandemics and countrywide lockdowns. Through the lock
down, Cadbury continued to sell its products, the stores identified as key companies stayed
open; this did not apply to other brands; for example, Thornton had to close its shops owing to
drastically decreasing footfall. These merchants are considered important. This means that
Internet purchases are a rising alternative for many domestic customers, which actually helps
record sales for many candy stores (ref) - Hotel Chocolat for example saw a 47 percent increase
in subscribers and a 200 percent increase in trends per quarter [ CITATION Eli20 \l 1033 ].

Resellers like the major supermarkets account for substantial quantities of overall Cadbury sales
and so are more powerful in pricing and conditions discussions than smaller convenience corner
stores. Addressing lower wholesale pricing will influence Cadbury's profit margin rather than
boosting retail prices. In addition to the pandemic restrictions, internet shopping growth is
expected to continue and offers customers a very convenient alternative for changing loyalty on
request.

Consequently, consumers develop negotiating capacity as a result of this low cost of switches,
an oversaturated market and high price awareness. Because of this mismatch between the
purchaser and the brand, Cadbury is at great risk losing buying power.

SWOT Analysis

Strengths

 In both the chocolate and in healthy cooking industry, Cadbury has great goods.
 Cadbury has realized that it is extremely lucrative and profitable to open into
international markets.
 Cadbury's manufacturing capacity is increased with new foreign markets, which boost
the size and scale of Cadbury's economy and assure sustainable growth.
  In order to balance its revenue statement, Cadbury focuses on sales and profit; this puts
the firm in a solid financial context.
 Cadbury also aims to make greater worldwide profits than its local markets from its
products by reorganizing its procurement system.
 Focused on worldwide markets, Cadbury intends to improve the management of risk in
the candy business by reducing adherence to the British Government and Cadbury, Inc.
In conclusion, given its many methods and power, Cadbury has great performance
[ CITATION Hel10 \l 1033 ].

Weakness

 Remarkably, the underlying weakness in Cadbury's product portfolio stems from the
strength of its most well-known brand, Dairy Milk.
 Historically, the firm has been at the forefront of the UK's chocolate bar industry.
 The primary part, though, is chocolate snacks.
 Cadbury has attempted numerous times to create a competitor with Mars and Nestle
chocolate treats.
 Cadbury has not succeeded to increase this weakness in its UK despite repeated market
research [ CITATION Rit06 \l 1033 ].

Opportunities

 Use social media 'influencers' such as well-known YouTubers and Instagrammers to

improve your brand's social media image with Generation X.
 Prioritize R&D, manufacturing, and launch of a vegan chocolate product by Cadbury
Dairy Milk. This will allow competitors to develop their own vegan products
[ CITATION Mar20 \l 1033 ], and will be in line with rising customer demand for
sustainable products[ CITATION Soc20 \l 1033 ]
 100% recyclable packaging and 100% responsibly sourced cocoa will boost brand CSR
and sustainability.
 To improve customer satisfaction, Cadbury loyalty cards provide a branded eco-system
which has demonstrated that the value of a brand as a consumer is increased [CITATION
Lov21 \l 1033 ]
Threats

 While social media supporters are strong on the key platforms, the interaction with the
brand web site shows little commitment or forward-looking brand content sharing.
 In the United Kingdom, rivalry between Mars and Cadbury is fierce.
 Customers now have a significant desire and marketing trend for individual devotion to
the brand, which is adequately compensated by discounts, for example.
 Rising healthcare awareness

Proposed Strategy

Strategic Alternatives

Strategic management is the discipline of identifying the optimal strategies for a company based
on its purpose and vision [ CITATION Hou99 \l 1033 ]. Change via learning and continual
adaptation are key components of sustainable development strategies. For Cadbury UK, a
SWOT analysis provides a "foundation to create strategies" based on a "systematic connection
between strengths, weaknesses, opportunities, and threats".
Table 2 : SWOT for Cadbury

Strengths Weakness

Opportunities New Product Strategy Market Penatration

Design 100% reusable Announce a new, affordable

materials for traditional vegan  chocolate product
packaging with the supply
chain

Threats Market Penatration Development of the market

Compete vegan brands in the To encourage an increasing

UK to debut into vegan brands consumer base, provide
innovative decreased sugar
goods
Business strategies explain "how to succeed in a competition," but business models identify
"value relationships for customers/partners," "activities of an organization for this value," and
"how shareholders may capture this value".  Ansoff's product/market growth matrix is described
as a "business strategy framework for creating four directions for organizational growth".

Porter’s generic strategies

Figure 4 : Business Stratergy

The competitive advantage allows companies to provide value for their consumers, both higher
in supply costs and 'more than competitors'. Michael Porter discusses two key competitive
advantages through 'productions distinguished from competitors' and 'structively less than their'
competitors. The competitive benefit of Cadbury includes a strategy of differentiation by
delivering products that differ from their counterparts. 'Corporate diversification strategy entails
the expansion into current markets of new products or services'. By producing new products and
services that vary from their competitors, Cadbury is offering a competitive edge
 Figure 6 : Three Generic Strategy

Proposed strategy

SWOT analysis has chosen the Strategy to combine or acquire brand name and well-being
snacks in the UK to introduce vegan and health-conscious sectors of customers. 'In 2019, the
worldwide snacks market was estimated to be USD 78.13 billion and planned to reach USB
108.11 billion by 2027' '. The figure below shows the main market share of 444.9% for nuts,
dried fruits, etc.

Strategy allows companies to develop into larger, fast-growing sectors of well-being. The UK
Snack Market is quickest in Europe and Cadbury isn't a big market participant, with trends
developing for diverse snacks (e.g. gluten free, milk-free bars).
Figure 7: Global Market Share for Healthy Snack

Consumers connected with environmental analysis choose health-conscious items with a rapid
pace of living. Opportunities 'to extend the distribution and sales of cross-category crackers'.

Figure 8 : Market revenue of Energy bars at UK

Figure 9 : Major Competetior related to snack bars in UK

Evaluating Strategy

If it fulfills vision, mission, and target segments, the plan proposed is appraised. The viability
and sustainability of the approach are established in subsequent sections and figures below.

Red : short term advantages

Green : Long term advantages

Table 3 : SWOT covered by proposed strategy

Vision, Mission and Purpose Challenges

 Keep dominance over proven goods in
the UK markets.
 Provide a wide choice of consumer
snacking alternatives.
 Keep new and existing items high-
quality.
 Preserve the leading position of the
market.
 Expanding to sectors of well-being.
 Digital marketing improvement.
 Expand to internet trading/trading.
 Sustainability practices.
  Positioning of the market.  Saturated, mature and decreasing
 Fidelity to the brand. products on the UK market. 
 Traditional brands.  Dairy Milk company Dependency.
 Large array of products on the
market.

 Impact in enhancing digital and online  Increased healthcare client need.

branding.  Hypercompetitive UK economic
 Focus on research and development markets
to improve goods based on vegan
products and wellbeing.

Suitability

Figure 10 : Stages of Industry Life Cycle

The appropriateness of the suggested plan focuses on 'important opportunities and menaces'
'overall justification of strategy'. The strategy addresses the problem of maintaining market
leadership and position and integrating the sectors of well-being. Reduces snack weakness to
suit its opponents and allows customers to consider master chocolate branding. Opportunity to
use M&A experience to boost R&D for existing vegan goods. Manages risks with snack
industries and expanding sectors that are aware of the health preference for competitive
advantages in Britain. As the vegans and welfare segment is weakly competitive and supports
the suggested approach in the growth sector life cycle.

Acceptability

Figure 11 : Map of Stakeholder in Market

Acceptability 'with regard to the performance results of the suggested approach'. Risk and
stakeholder reaction strategy evaluated. The approach poses a little financial risk in investing in
the well-established UK brand inside the well-being segment, since a health-conscious and
plant-based snacks market is projected to develop after 2027 .Fosters social responsibility of
consumers with greater plant goods and beneficial impact on customers, parties in favor of
climate change. This promotes social responsibility. Long-term earnings beyond the UK since
demand for snacks is on the rise between Europe and the US.
Feasibility

Figure 12 : Iife cucle of Business Finance

Feasibility 'is focused about the capacity of the organization to implement plan' . The growing
phase of the life cycle for food and vegan segments in allows for dividends to be made available
through Cadbury financial stability

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