Cadbury Schweppes - Dairy Milk in Freance
Autor: supra • June 6, 2016 • Article Review • 416 Words (2 Pages) • 791 Views
Cadbury Schweppes is one of the best known names in chocolate and confectionary and one the most famous chocolate brands. It is also the world's fourth largest supplier of chocolate and sugar which has manufacturing plants in 25 countries and sales in further 165. Its major powerful brands are: Cadbury Dairy Milk, Cadbury's time out, Picnic and Roses. Dairy milk, which was introduced in 1905 is today one of the most powerful brands and the basic ingredient for many other Cadbury products. The Cadbury considers its success based on the three factors: quality, value for money and good advertising.
Advantages and drawback:
The advantages and drawback that Cadbury would realize if they enter into the foreign market:
Various possible advantages:
- Increase in economies of scale
- Counter attack to the domestic supplier
- Higher opportunities in foreign market
- Reduced dependency
- Diversification in market specific risk
Drawbacks:
- Understanding customer's need
- Adopting foreign culture
- Regulations
Problems
Costly for change in production
The chocolate bar market is highly segmented. dark chocolate bars ,milk bars, and milk bar with nuts accounts two third of the total volume while the specialties for children ,light sugar free chocolate bars and other miscellaneous special lines accounts one third of sales. And the choices of customers also differ as per the differentiation. So the major issue for the Cadbury is to react as per the demand.
Cultural differences:
France has a broad European culture which is quite similar to UK. But the cultural differences exist to some extent and the consideration in planning the market as per the cultural differences is a major issue for the Cadbury.
Highly segmented chocolate bar market:
The French market for chocolate confectionary divides into three main categories: chocolate bars, count lines and standard and seasonal lines. The manufactures of chocolate confectionary offers a great diversity of products and the market is also highly segmented. To stabilize production for the highly segmented market is an issue for French market.
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