8/8/2019 Merged With Schweppes in 1969

1/1

merged with Schweppes in 1969. Currently, this successful company is employing approximately about 43,000 people worldwide.

Today, Cadbury Schweppes is the world's fourth biggest supplier of chocolate and sugar confectionery.

One of its products, Dairy Milk was introduced in 1905, and has become the most successful moulded chocolate in UK history and

the basic ingredient for many other Cadbury products. 95 years later, Dairy Milk is one of the world's most famous brand names and

the company's leading chocolate bar by revenue.

Sales from Cadbury's Dairy Milk alone are estimated at over 135 million for 1995. Cadbury considers its success is based on three

factors: quality, value for money and good advertising.

Aim: Apply SWOT analysis to Cadburys current situation and its position to enter a foreign market

It is important to investigate on the internal and external environmental forces for the Dairy Milk in France. Relevant organizational

and industrial information is required for the development of a SWOT analysis. The analysis of the environment and the

consideration of the situational factors when designing marketing planning, is critical as it would allow Dairy Milk to capitalize on

organizational strengths, minimize any weaknesses, exploit market opportunities and avoid any threats.

Strengths

Cadbury would realize several possible advantages in going abroad. By penetrating a foreign market the company could:

Maintain a stable growth of a company by maximizing the use of its production capacity and thus increase economies of scale and

scope.

With its brand name, Cadbury could counterattack the competitors it faces in the domestic market by attacking their domestic

market.

Keep up with the financial strength by increasing its sales and profit, indeed the foreign market could present higher profit

opportunities than the domestic products.

Acquisition rules in UK, reduce its dependence on the UK market and therefore diversify its market specific risks.

Overall, Cadbury has been successful through the new products (development) it has to offer.

Weaknesses

Generally, as Cadbury has a weak position in the US market, thus, need to change its target to a different location. Besides its lack

of distribution network, it also has a small total of market share altogether. Therefore in order to market the product in France

successfully, Cadbury would have to find out on how it can improve in order to have great performance. It is also good to find out

what are the situations that they could avoid in order to be successful. In order to market products the following issues should be

considered:

Total French production of chocolate bars and confectionary, which has increased by 24.5 per cent between 1988 and 1991, has

slowed down in more recent years, partly due to the economic slump.

Consumption of chocolate products, which has been growing until 1991, remained fairly static in 1992, reflecting a fall in demand

due to the gloomy economic situation.

Sales of milk chocolate bars, which account for 24 per cent by volume of total sales of chocolate bars, decreased by 3.7 per cent.

Opportunities

Through its confectionary product line, least to mention is to build viable positions in prioritized markets through organic growth and