Task 1
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Write an
introduction.
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Guidance
The
introduction should include:
- The reasons for the investigation
(see scenario)
- The
company name and background information
-
Brief
overview of the market in which the company operates
- Overview
of the Cadbury’s product range
Task one.
The main reason for this investigation is to research. This includes carrying out and producing evidence of primary and secondary research. This will be exhibited by a range of sources for the product I have chosen. The reasons for conducting market research could be anything from identifying potential customers to preparing for a business expansion. My intentions of this investigation is to create a new chocolate bar.
Company name- Cadbury
Background information
Cadbury (the worldwide leader in the chocolate confectionery market) began
in 1824 when a young Quaker named John Cadbury opened up a shop in
Birmingham. John sold coffee, tea, drinking chocolate and cocoa at his
shop. John aimed for his
products to serve as an alternative to alcohol.
By 1842 John was selling 11 kinds of cocoa and 16 kinds of drinking
chocolate. John’s brother Benjamin then joined the company which formed Cadbury Brothers of Birmingham. Six years later, the
brothers broke up their partnership because of John’s health conditions
and the death of his wife. They left the business to John's sons George
and Richard.
George and Richard continued to develop the product line. By 1864,
they were receiving a profit. Cadbury’s Cocoa Essence, which was
advertised as "absolutely pure and therefore best," was the beginning of chocolate as we know it today. The brothers then moved to a larger amenity four
miles south of Birmingham. The factory and area around it became known as
Bournville.
In 1873 master confectioner Frederic Kinchelman was authorized to share
his recipe and production secrets with the workers at Cadbury. The results of this were Cadbury producing chocolate covered nougats, caramels and many more. Cadbury's first milk
chocolate was made in 1897. Two years later the Bournville factory employed 2,600
people and Cadbury was incorporated as a limited company.
More than 2,000 of Cadbury’s male employees joined the Armed Forces in World War 1.
Cadbury supported the war effort. They sent warm clothing, books and
chocolate to the soldiers. When the workers
returned, they were able to return to work and take educational courses and injured or ill employees were looked after in recovery homes.
During this period overseas trading went up. Cadbury then opened its
first overseas factory near Hobart, Tasmania. The next year Cadbury
merged with JS Fry & Sons, a past market leader in chocolate.
In 1969 Cadbury merged with Schweppes which formed Cadbury Schweppes.
Schweppes was a well-known British brand. They made carbonated
mineral water and soft drinks. The two companies would go on to obtain Sunkist, Typhoo Tea and many more.
Cadbury Schweppes is the worlds biggest confectionery company having employed more than 70,000 employees. In 2006 the company in overall sales had
over $15 billion.
In March 2007, Cadbury Scheweppes
announced that it intended to separate its confectionery and beverage
businesses.
The market in which the company operates
Cadbury operates in the chocolate confectionery market.
Cadbury is expected to have kept its strong leading
position in chocolate confectionery throughout both 2012 and 2013 as its
value sales in the category went up in current terms by an predicted 2% during 2013, rising to £1.6 billion. They were also expected to be one of the fastest growing companies in
chocolate confectionery in the UK in 2013 and this is because of their success of their key brands and line extensions, including the
brands famous from count lines and tablets in bagged selflines/softlines.
Company
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Net Sales 2013 (US$ millions)
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Mars Inc (USA)
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17,640
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Mondelēz International Inc (USA)
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14,862
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Nestlé SA (Switzerland)
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11,760
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Meiji Holdings Co Ltd (Japan)
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11,742*
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Ferrero Group (Italy)
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10,900
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Hershey Foods Corp (USA)
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7,043
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Arcor (Argentina)
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3,700
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Chocoladenfabriken Lindt & Sprüngli AG (Switzerland)
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3,149
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Ezaki Glico Co Ltd (Japan)
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3,018*
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Yildiz Holding (Turkey)
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2,500
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Ref. International Cocoa Organisation.
Cadbury's product range
I believe that the product range of Cadbury is mainly aimed at older generation. My reasons for this is that there are actually only a few products that are specifically aimed at children. The rest of the products have a lot of writing on hem. This would not appeal to the younger generation as they just look at the colours and if any, images on the packaging. The older generation are more interested in what the flavours are and things like that. There are also products like Cadbury's Milk Tray's that wold appeal to the older generation. The reasons for this is that the packaging isn't covered in bright colours r images, it looks more sophisticated.
