Cadbury dairy milk silk presentation : Cadbury dairy milk silk presentation By Osama Bin Aziz Cadbury Plc : Cadbury Plc Cadbury Plc now the subsidiary of the Kraft foods Inc was founded in 1824, It operated in the confectionery industry . It is headquartered in Cadbury house, Uxbridge, UK.
The group manufactures over 100 different products under different brand names.
One of the popular brand of the group is dairy milk which is milky chocolates, there are various products under this brand name. One of which is the latest chocolate introduces by the group, Dairy Milk Silk. Cadbury Dairy MilkCadbury Dairy Milk is a brand of chocolate bar made by the Cadbury plc unit of Kraft Foods and sold in several countries around the world. It first went on sale in the United Kingdom in 1905. : Cadbury Dairy MilkCadbury Dairy Milk is a brand of chocolate bar made by the Cadbury plc unit of Kraft Foods and sold in several countries around the world. It first went on sale in the United Kingdom in 1905. Situation Analysis : Situation Analysis . The Cadbury dairy milk silk is launched by the Kraft foods Inc which is the largest confectionery, food, and beverage corporation headquartered in the US. The Kraft foods Inc take over Cadbury in 2010 which is the a British confectionery company, the industry's second-largest globally. This new product is launched globally.
. This presentation include the situation analysis of the launch of this new product including SWOT analysis. PESTEL Analysis : PESTEL Analysis Let us examine the macro environment of the group using PESTEL analysis.
Political factors that will affect the launch of the dairy milk silk chocolates are health and safety laws, employment laws of different countries where Kraft group operates.
Socio-cultural factors that may affect include life styles of people, health and fitness awareness and perception, different cultures, spending patterns, aging populations. .Technological factors that will affect the brand are the internet as the product will be promoted using web marketing. The robotic manufacturing will also help in quick production.. Economic factors that will affect it are interest and inflation rates as it will affect production, world economic growth and current recession will also effect it. . There will be also some environmental factors that will affect like energy and environment and recycling of the plastic and other products like chocolate can be packed in completely recyclable packet. . Legal/ Educational factors will also influence like perception of people and what people think about the richer milk chocolates. : .Technological factors that will affect the brand are the internet as the product will be promoted using web marketing. The robotic manufacturing will also help in quick production.. Economic factors that will affect it are interest and inflation rates as it will affect production, world economic growth and current recession will also effect it. . There will be also some environmental factors that will affect like energy and environment and recycling of the plastic and other products like chocolate can be packed in completely recyclable packet. . Legal/ Educational factors will also influence like perception of people and what people think about the richer milk chocolates. Micro environmental analysis : Micro environmental analysis The group is the leader in the industry and enjoys a good support of the suppliers therefore the dairy milk silk will get benefits from this close supplier ties.
The dairy milk series is trusted in the market and it enjoys public loyalty therefore the dairy milk silk will get this advantage.
The industry enjoys a force of raw competition and dairy milk silk will have to compete to get the market share as there is price war.
Dairy milk series enjoys customer loyalty which will benefit the dairy milk silk. Internal factor analysis : Internal factor analysis Men and Money: The group has sufficient financial and human resources and these factors help the dairy milk brand and the other brand of the group as well.
Machines and Material: The group also have state of the art machines and enjoys a close relationship with the supplier and have sufficient material which help the brand.
Management and Management information: The management of the group is highly qualified and skilled and the information system is up to date which provide timely information to make decisions. This help the brand. Porter’s five forces analysis : Porter’s five forces analysis Competitive rivalry in the industry: there is a huge rivalry in the industry and this rivalry in the industry make it attractive.
Threat of substitute product: chocolate is a established product and million of people love it round the globe therefore there is not much threat of the substitute.
Threat of new entrants: the confectionery industry has no barrier to entry and this make this industry open to competition and make it attractive.
Bargaining power of supplier: the bargaining power is low due to large no of supplier which make it attractive.
Bargaining power of customer: there is almost no bargaining power of customer which make this industry attractive. SWOT analysis : SWOT analysis Strengths of the brand: As Cadbury dairy milk is a established brand which enjoys good customer perception therefore it is the strength of the brand and the dairy milk silk will get benefit of it. The resources that the group have is also one of its strength and the no of products that it make will help in achieving economies of scale is also one of the strength of the brand. The acquisition of Cadbury by Kraft food Inc which make the group the leader in the confectionery industry is also a strength of the brand. Millions of customers around the globe is also one of the strength of the brand Slide 12: . Weakness: The biggest weakness is the size of the group which make it difficult to innovate as the Kraft foods Inc has recently acquired the Cadbury so the group will focus to get the return and little or no focus will be given to the innovation. Large group size also make increase the time to make crucial decisions. Timing to implement the decision will also increase because of the group size which is also a weakness. Slide 13: Opportunities: There are various opportunities for the brand and for the group as the group is one of the leading confectionery producers therefore it can increase its market share by reducing price and as it has sufficient resources which it can used to purchase other producers and increase its market share. There is also an opportunity to make new products as the group can afford it and with the two brand names it can market it. The combination of the US and the British manufacturer create an opportunity for the group as it has now presence in the biggest part of the world and it can get best workers and best people to manage the company. Offering different products under one brand name make it easy to market the product and to attract the customers. Large size bring economies of scale and synergies which help the brand the whole group as well. Slide 14: Threats: large size is the biggest threat as if the acquisition does not work that it will affect all the brands including the dairy milk. Confectionery industry is open to competition which is a threat to the brand and for the group. Improved chocolate by some other producer will affect the brand and it create threats as the producers are always in search of something new. The industry is highly price sensitive and increase in price or decrease in income of people will result in decrease in demand for the product and will affect the brand. Combination of the British culture with a US, open the brand and group to a threat. Audit of the strategy : Audit of the strategy The dairy milk brand is marketed using market penetration strategy.
As there is huge competition in the industry therefore the brand is marketed at low profit margin in order to win market share and to maximize profit by increasing sales volume.
In my view the marketing strategy used to market the brand is fair enough because this attract s the right people at the right place and probably at the right time. Slide 16: This strategy takes into account all the factors that is essential in promoting a brand like this and it pay close attention to market demand and customer expectation.
That is why the dairy milk brand is that much popular that even a non chocolate lover know at least something about it. This shows the popularity of the brand and it is somewhat because of the successful marketing plan.
The expenditure on the marketing of the brand also seem to be fair enough by comparing it with the competitors .
In my view, some more effort is required to promote the brand like some sort of unique promotion techniques should be used in order to make the marketing strategy more successful. But on the whole, the strategy is good and it is working nicely. Profile of target customers : Profile of target customers Cadbury dairy milk is a fine rich chocolate which is specially produced for the chocolate lovers who like to eat finer chocolates and who love highly milky chocolates, therefore the target customers will be the existing chocolate eaters because it is unlikely that non chocolate eaters will try it.
If I try to segment the target customers by life stages than it will be students, young adults and young families which will mainly be focused because these people are mostly tend to eat chocolates.
Since chocolate is not an up market product therefore if we try to segment the target customers according to what they buy than it will be in the group of market (traditional, convenience and mainstream). Current position of the dairy milk : Current position of the dairy milk As stated earlier dairy milk is one of the renowned chocolate brands and it is sold globally. The brand enjoys a good reputation in the public and enjoys customer loyalty. It is affordable chocolate that provide somewhat different taste than others which is liked by its customers.
That’s why the brand has the presence of over 100 years (since 1905).
The brand is one of the most successful brands of the Cadbury (recently Kraft Foods Inc).
Its richness in milk make this brand different from others and the new product dairy milk silk (more rich in milk and finer) will get benefit from the brand reputation and it will also perform well like the other products of the brands. Slide 19: I want to thank my teacher Mr. Jon Kitto of London School of Business and Finance who teach us nicely and who always support us and who was always there to clear my doubts and questions.
I have used data from the internet, the wikipedia website and the Cadbury Plc website and Kraft food Inc website to prepare this presentation.