STRATEGIC PERSPECTIVES ON MARKETING

MKTG45165

CADBURY BUSINESS REPORT

WORD COUNT- 3991

STUDENT ID NO- N0602479
Table of Contents
EXECUTIVE SUMMARY................................................................3
EXTERNAL ANALSIS...................................................................4
PESTEL ANALYSIS OF THE CONFECTIONERY INDUSTRY UK..................4
PORTERS FIVE FORCES.....................................................................7
INTERNAL ANALYSIS................................................................11
RESOURCES & CAPABILITIES...........................................................11
TOWS FRAME WORK......................................................................15
VISION STATEMENTS................................................................18
CORE VALUES OF CADBURY............................................................18
CORPORATE SOCIAL RESPONSIBILITY........................................19
THE PYRAMID OF CORPORATE SOCIAL RESPONSIBILTY.....................19
CORPORATE RESPONSIBILITIES UNDERTAKEN BY CADBURY..............20
APPLICATION OF CSR STANCES TO CADBURY...................................21
UAE PESTLE ANALYSIS.............................................................22
CAGE FRAMEWORK..................................................................24
PURPOSE FOR ENTERING THE UAE MARKET...............................25
MARKET ENTRY STRATEGY.......................................................26
CONCLUSION...........................................................................26
REFERENCES...........................................................................27
APPENDICES...........................................................................31

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EXECUTIVE SUMMARY

POURPOSE

This report consists of a detailed research analysis on the world’s biggest

confectionery company Cadbury. It provides the reader with substantial knowledge
about different research tools and their usefulness in analysing the business market.
The main purpose of this report is to help Cadbury to expand at home and
internationally by using appropriate models, concepts and theories.

RESEARCH DESIGN

The research design used in this report is mainly focused on appropriate research
tools such as PESTEL analysis and Porters Five Forces to evaluate the external
environment of the company in order to identify potential opportunities and threats.
To analyse the internal environment the author has used resources and capabilities
framework. To match the external threats and opportunities with the internal
strengths and weakness TOWS matrix has been applied. Companies CSR activities
are also clearly analysed with the help of Carroll’s CSR pyramid and CSR stance.
Later to help Cadbury grow internationally UAE PESTEL analysis and CAGE
framework has been conducted to pinpoint the markets profitability.

IMPLICATION AND RESULTS

By implying the above tools to Cadbury we can identify the potential opportunities to
expand the business and it also helps in predicting the unseen threats. The UK
confectionery market is well-established market with high demand and penetration
levels. Plus the market is highly controlled and influenced by the powerful global
players such as Nestlé and Mars so its very important for Cadbury to be proactive in
implementing various effective business strategies considering all the factors and to
develop effective CSR strategies to gain the competitive advantage.

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 QUESTION 1

EXTERNAL ANALSIS
The first basic stage of strategic management involves the analysis of current
environmental factors within which the company is operating (Ülgen & Mirze, 2007).
The term environment consists of both internal and external environments.

PESTEL approach is used to analyse the external environment. There are two main
functions of this analysis. Firstly it helps in identifying the environment within which
the company operates. Secondly, it provides valuable information to the company
that helps to predict future situations and circumstances. Although PESTEL provides
important fundamental knowledge to analyse the macro environment, it has some
limitations in terms of measurement (Yüksel, 2012).

1. The first drawback encountered is PESTEL analysis did not adopt quantitative
approach of measurement. It was mainly focused on qualitative structure of
measurement (Yüksel, 2012).
2. The independent evaluation of each PESTEL factor might not reflect the real
situation.
3. According to Eren (2002) the analysis should adopt an approach based on the
inter-dependence of the factors.

Despite of these limitations PESTEL analysis is widely used to determine the

external environment and it consequences on organizational goals and targets.

PESTEL ANALYSIS OF THE CONFECTIONERY INDUSTRY UK

The below mentioned PESTEL factors have potential impact on Cadbury. Hence is
very important for the company to be familiar about these factors to run a successful
business.

POLICITICAL FACTORS

Political forces monitor the UK confectionery industry. It may have positive or

negative impact on the company. It is very important for Cadbury to be aware of the
political factors such as:

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 1. ‘FAT TAX ‘ ARGUMENT – Denmark was the first country to introduce a ‘fat
tax’ on food containing 2.3% saturated fat, including confectionary. But later it
was abolished as it inflated food prices. However, the medical experts
believed that a fat tax was an effective way to reduce obesity in the UK. Since
a fat tax would increase the price of unhealthy food (Maitland, 2014) and it
may be implemented at any point of time.
2. The government has implemented campaigns to promote a healthier lifestyle
among individuals. Secondly, it is pushing food and drink companies to
produce healthier products with clear labeling (Maitland, 2014).

ECONOMICAL FACTORS

The economic factors can have an affect on Cadbury’ profit margin. It’s very vital for
the company to know these factors and to undertake necessary steps to lower its
impact.

1. With respond to obesity campaigns, the chocolate companies are downsizing

the chocolate bars before the rise in VAT (Wood, 2010).
2. Climatic changes are affecting crop yields. In return trade balance and prices
are affected. (Mollie Bloudoff-Indelicato, 2014).
3. Economic crises may affect consumer spending and premium chocolates will
not be considered an affordable luxury at least for next 12 months (Maitland,
2014).

SOCIAL FACTORS

Consumers are the most important assets of the company. It is very important for
Cadbury to understand the changing social trends and consumer needs in order to
produce value products.

1. In order to cope up with economic downfall consumers preferred to stay home

to save money however to sweeten the experience and entrain guests they
purchased chocolate sharing bags (Maitland, 2014).
2. As chocolates being versatile gifts for many occasions. Seasonal and boxed
assorted chocolates have been experiencing a great demand and sales are
expected to rise by to 13% (Franchisehelp.com, 2014).
3. In recent years there has been a dramatic sales increase for dark chocolates.
(Franchisehelp.com, 2014).

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TECHNOLOGICAL FACTORS

To achieve a competitive edge over the competitors Cadbury must be technologically

updated and make use of the best technology in the market.

1. Companies are opting for innovative ways to analyse and grade the coco
beans, plus they are also using a six segment ‘’flavor wheel” to bring out their
natural essence and aromas (The Economist, 2008)
2. Today research groups are working with the cocoa growers, with the help of
satellite –Internet connections, in order to improve the quality and evenness of
their beans (The Economist, 2008).
3. One of the surprising trends over the last decade is the change in the shape
of chocolate, today chocolates are prepared creatively in different shapes and
combinations such as, chocolate combined with Oreo biscuits (Cadbury case
study).

ENVIRONMENTAL FACTORS

Cocoa is the main element for Cadbury’s in order to run the business. The company
should be aware of the environmental effects on cocoa beans production. So the
company can design cocoa sustainable strategies.

1. Climate changes are expected to affect West Africa’s cocoa farms. By 2060,
more than half of the cocoa-producing countries may be too hot to grow cocoa
(Mollie Bloudoff-Indelicato, 2014).
2. With the outbreak of the deadly disease Ebola, cocoa beans production and
its trade has been adversely affected.
3. There is a massive decline in cocoa production due to plant diseases such as
black pot. This disease is an economically serious issue destroying 30-90% of
cocoa crop and its especially severe in west and central Africa (Apsnet.org,
2014).

LEGAL FACTORS

To produce goods in a legally accepted manner the company should be responsive

towards the changing legal laws and regulations. It is very important for Global
players such as Cadbury’s to be updated with the legal changes or else it can effect

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the company’s reputation. The current legal laws are:

1. According to Defra the cocoa and chocolate products must obey with the
reserved descriptions formed by the Cocoa and Chocolate Products
Regulations 2003 (Legislation.gov.uk, 2014).
2. CAOBISCO members should comply with the EU food and safety policy in
order to conduct fair trade practices and deliver safe and quality products to
consumers (Caobisco.eu, 2014).
3. The UK government has imposed penalties worth £5,000 for any failure to
comply with labeling and description requirements (Tradingstandards.gov.uk,
2014).

PORTERS FIVE FORCES

In order to develop an effective business plan, there is a need to analyse the current
situation. One way of doing it is by using Porter’s five force framework. It helps to
identity the competitive intensity of an industry and gives an indication of the
attractiveness of the industry (Assessing the industry using Porter's five forces,
2014).

APPLICATION OF PORTORS FIVE FORCES ON THE UK CONFECTIONERY

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 Threat
Threat of
of
new
new
entrants -
entrants -
low
low impact
impact

competit
suppliers
suppliers ve Buyers
Buyers
power-low
power-low Rivalry - power-high
power-high
impact
impact high impact
impact
impact

Threat
Threat of
of
substitute
substitute
product
product --
medium
medium
impact
impact

Appendix 1: Porter’s Five Force Frame work

NEW ENTRANTS

The UK confectionery market is a well-established market place with high demand

and penetration levels. There are 275 confectionery producers in the UK (Cadbury
case study). The market is highly controlled and influenced by the powerful global
players such as, Mondelez International, Mars and Nestlé.

Cadbury is considered as a significant barrier for the new entrants because of its
strong brand recognition and the threat of new entrants is significantly low on
Cadbury.

Unless it’s a new innovative product aligned for healthy life style it cannot merge with
the market and make its presence.

THREAT OF SUBSTITUTION

The threat of substitutes is very minimal over Cadbury. As brand equity is the main
competitive advantage of Cadbury. However over the last several decades there
have been increasing concerns for healthier life style. As a result there is a dramatic
increase in sales of sugar free products, cereal bars and products with reduced fat

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and calorie offerings. According to the recent survey the demand for dark chocolate
has risen up as it is considered much healthier (Franchisehelp.com, 2014).

BUYER POWER

The Confectionery market has two types of buyers a) the ultimate consumers and b)
retailers. Five supermarkets dominate the confectionery retail distribution in the UK.
Such as Tesco, ASDA, ALDI, Morrison’s and Sainsbury’s. These retail stores have
much more negotiating power than the ordinary customers. Consumers also buy
confectionery from local retailers these are bought on impulse, while buying daily
products. Confectionery products are widely enjoyed by Britons and they consider
them as affordable luxury.

SUPPLIER POWER

The confectionary industry primarily works with food ingredients merchants that
supply products like cocoa, sugar, and gelatin. The major producers of cocoa are
West Africa, Latin America and South East Asia. According to the recent findings,
Nestlé, Mars and Mondelez controls 40% of total global supply. (Maitland, 2014).

Supplier power on Cadbury is low as it started “Cadbury-cocoa partnership” where

funds will be invested into cocoa farms in Ghana, India, Indonesia and Caribbean in
order to determine a long lasting supply of cocoa (Cadbury, 2014).

COMPETITIVE RIVALRY

There is a cutthroat competition in confectionery industry as there are many

manufactures. Top global players such as Mars, Nestlé, Ferrero are very strong
brands, which are giving tough competition to Cadbury’s. All these companies strive
for higher market presence by implementing various strategies. (Maitland, 2014).

RECOMMENDATIONS

Its very important for Cadbury to take all the external factors into consideration then
turn them into opportunities and design effective strategies for running a successful
business. Cadbury’s should continue to invest in product innovation as it provides a
competitive edge for the company. It should also come up with more interesting

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marketing and advertising tactics to built up strong brand awareness and in order to
reduce competitive rivalry. It must also produce healthy and low-calorie confectionery
to address the health concerns of the consumers.

QUESTION 2

INTERNAL ANALYSIS

RESOURCES & CAPABILITIES

According to Barney,(1991) resource and capabilities play a pivotal role in creating
high-class value for the customers and in gaining competitive advantage . In 1980’s
there was a major shift from industrial structure (IO) to resource-based view (RBV),
which underlines the importance of external environment. The main reason for this

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shift is the inability of the IO to justify why some firms within the same industry differ
in internal performance (Hawawini, Subramanian, & Verdin, 2003).

RESOURCES:
Resources can be categorized into tangible and intangible resources.

According to Hunt and Morgan (1995), tangible resources can be financial, physical
and human resources while intangible resources can be skills and knowledge of
employee, corporate culture and company reputation. It is very important to
transform these resources into valuable outputs. Capabilities are something more
than resources; it combines, develops and transforms the resources in order to
create value to the products (Day, 1994)

Tangible Resources:

• Cadbury’s bank over drafts has

been decreased compared to
Financial resources 2012
• Increase in cash balance by 30%
• Increase in Shareholders capital
and working capital (Mondelez,
2015)

• The Cadbury’s core production

unit is sited at Bourneville in
Birmingham. Mondelez are
investing £75 million in
Bourneville’s Cadbury plant to
make it a ‘world-class
manufacturing site’ (Griffin, 2014).
• It also owns one of the most

Physical resources admired tourist attraction Cadbury

world.
• Cadbury’s have their own physical
and online stores to sell their

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 products. Besides that, they have
collaborated with other retail
stores on a massive scale.

• Cadbury has access to state-of-art

facilities.
• Cadbury’s started chocolate
center of excellence in the year
Technological resources 2012 for research and
development purpose.
• The company has adapted SAP
and ERP system in order to
manage the merger
(Foodprocessing-technology.com,
2015).

Intangible Resources:

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 • Cadbury’s has over 140,000 very
well trained and dedicated
employees.
• The company follows a
decentralized organizational
structure.
Human resources and corporate • Employee benefits and
culture opportunities such as well-paid
salary package, employee
wellness, along with insurance
and pension scheme
(Mdlzearlycareers.co.uk, 2015).

• Cadbury’s has recently innovated

a brand new snacking range such
as Cadbury Dairy Milk LU & Ritz
bringing two brands together and
Innovativeness they invested 7.5m in marketing
(Fdin.org.uk, 2014).
• It has also developed temperature
tolerant chocolates
• (ConfectioneryNews.com, 2012).

• Cadbury’s is known for its purity

and quality.
• It has positioned itself as a world-

Reputation class confectionery brand.

• Cadbury’s fair trade practice made
a huge difference to the
companies reputation.
CAPABILITIES:
Various competitive advantage of Cadbury’s which contribute to their core
competences are:

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 • Experience in the confectionery industry-
• Pure quality
• New product development
• Cadbury’ advertising tactics.
• Its strong brand image.
• Cadbury’s world – unique resource
• Its global marketing strategy.
• Emotional bond with the brand.

RECOMMENDATIONS

Cadbury should critically analysis its environments in order to identify its strengths
and weakness. After the acquisition number of employees lost their jobs. The
company should try and preserve its human resources and try and integrate two
corporate cultures of Kraft and Cadbury for better performance and make optimum
utilization of resources and capabilities to stay ahead in the market.

TOWS FRAME WORK

Tows framework is a systematic analysis, which matches the external threats and
opportunities with the internal strengths and weakness of the organisation.
(Weihrich, 1982).

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 Strength Weakness
• Cadbury is a world • It’s a difficult task for
leader in chocolate Mondalez to maintain
manufacturing. It has the same emotional
brand presence in 200 bond with the UK
countries. consumers similar to
Internal • Cadbury has many Cadbury’s.
Factors strong brands, which • It can be problematic
are giving tough to integrate two
competition to other diversified corporate
chocolate cultures of Cadbury’s
manufactures (Bhasin, and Mondalez.
2015). • The impact
• Cadbury has strong Competitors rivalry is
brand loyalty (Bhasin, very high.
• Few arguments raised
2015).
• With the Kraft on Cadbury’s quality
acquisition, Cadbury control on a global
External
can now have greater scale.
Factors
access to resources
and capabilities.

Opportunities SO WO
• Leading chocolate • Sustainability • Increase in product
manufacturers are campaigns can create lines can damage the
actively working good will to Cadbury’s brand image.
• Company should
towards cocoa and a positive brand
sustainability in par image in public. equally balance
• Cadbury’s can different product lines
with Ghana
government. introduce new in order to maintain
• Confectionery technologies in its stable market growth.
industry is chocolate making
undergoing process in order to
technological bring out more exotic

15
 revolution. cocoa flavors.
• Increase in demand • Company can produce
for seasonal and chocolates in creative
premium chocolates designs with the help
with creative of 3D technology
• Cadbury’s can
packaging
• Growing concerns for manufacture new
healthier life styles range of healthier
products with low fat
and calorie count.
Threats ST WT
• Introduction of • Cadburys should • Few threats are
various laws and invest in various uncontrollable such
regulations by the programs to support as: deadly and
government to the cocoa farmers for incurable diseases
control health issues. a sustainable cocoa affecting the cocoa
• Climatic changes and farming. crop and farmers.
out break of deadly • The company should • Cutthroat competition
diseases in Africa are sign contracts with can trigger price wars.
resulting in increase diversified suppliers
• Cadburys should
of cocoa prices.
• Increase in suppliers manufacture healthier
power products.
• Threats from
substitute products,
such as nutrition bars
and low calorie
confectionery.

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 QUESTION 3

VISION STATEMENTS
Vision acts like guidance about what core values to preserve and what factors can
change in order to achieve success. A well-formulated vision consists of two parts a)
core ideology b) envisioned future. The core ideology defines the company’s long
lasting character, which holds the organization together as it grows.

The envisioned future is the second primary element of the vision structure, which
defines a long-term future goal of the organization plus providing a vivid description
of its consequences (Collins and Porras, 1966).

Cadbury truly understands what values should never change, and what should be
open for change in order to prosper.

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Cadbury’s vision statement: To be the biggest and the best confectionery company
in the world. Cadbury turned its vision statement into business action plan. Today
Cadbury is one of the worlds largest confectionery company with a 200 years old
heritage, massive market share, outstanding brand profile and global coverage. Its
corporate mantra ‘fewer, faster, bigger, better’ is keeping Cadbury ahead of its
competition (Bloomberg.com, 2015).

CORE VALUES OF CADBURY

• Inspire trust
• Lead from head and heart
• Discuss. Decide. Deliver
• Open and inclusive
• Tell it like it is (Our Dream, Belief and Values, 2015)

CORE PURPOSE: Is to create brands that people love.

CORPORATE SOCIAL RESPONSIBILITY

Today corporate social responsibility is the most frequently used framework bigger.
Every company is trying to contribute a bit of its profits for the social betterment.
Corporate social responsibility merely means the entire spectrum of social beneficial
activities of the business (Carroll, 1991).

THE PYRAMID OF CORPORATE SOCIAL RESPONSIBILTY

There are four types of social responsibilities, which constitutes to CSR: economic,
legal, ethical and philanthropic. As per the recent trends ethical and philanthropic
functions have become important in the corporate world.

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 Appendix 2: Carroll’s pyramid of corporate social responsibility
According to the pyramid framework Cadbury is performing both philanthropic and
ethical responsibilities towards the society. Philanthropic responsibilities include
actively engaging in campaigns and programs to promote human welfare,
contributing financial resources towards the education and communities. Ethical
responsibilities are those standards or norms that consumers, employees and
community regard as fair. Philanthropic responsibilities are considered less important
than ethical factors since it’s more like a voluntary initiative taken by the
organisations (Carroll, 1991).

CORPORATE RESPONSIBILITIES UNDERTAKEN BY CADBURY

CSR has been an integrated part of Cadbury’s business for nearly 200 years.
Cadbury contributed humongous resources for the community betterment and

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undertaken numerous initiatives. The following are the recent CSR activities
undertaken by Mondelez.

• $600 million USD is invested in cocoa and coffee origins

• Mondelez is investing $50 million USD in promoting healthy life style
community programs
• Aiming to cut down 15% of energy and water usage for sustainable
environment.
• To reduce saturated fat to promote healthier lifestyle. (Well-Being, 2015)

Cadbury has undertaken many initiatives in the past to contribute to the communities
with respect to three wide ranges of support:

Education

• By supporting education projects in order to develop skills

• Encouraging young people by providing employment skills
Health & welfare

• Initiatives to support balanced lifestyle and physical lifestyle

• Took care of vulnerable and homeless people
• Cocoa partnership approach to help the local communities for development

Environmental sustainability

• Purple goes green campaign to reduce plastic and encourage waste and
recycling.
• Biodiversity and earth watch program to encourage new farming methods and
support ecological balanced cocoa production. (Igd.com, 2015)

APPLICATION OF CSR STANCES TO CADBURY

Forum of stakeholder interaction

Cadbury falls under forum of stakeholder interaction because the company takes
multiple stakeholders consideration while implementing different strategies. The
company considers Consumers, suppliers, employees and community interests into.
Then conducts business in a socially acceptable manner.

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Sustainability and triple bottom line

Cadbury measures its growth on the bases of financial growth, social growth and
environment growth. They aim to produce products in sustainable manner. Through
maintaining ethical standards (Igd.com, 2015)

Systems to ensure good practices-

The company started many initiatives to do good for the society. It has started an
initiate called ‘the call for well-being’ an holistic and connected approach for greater
well-being (Well-Being, 2015)

Proactive:

Cadbury has also been proactive towards the betterment of society. It contributed a
lot to the society by implementing number of CSR strategies. Such as health and
welfare, environment sustainability.

QUESTION 4

UAE PESTLE ANALYSIS

The Author has chosen United Arab Emirates as the ideal country for Cadbury’s
market entry. According to “UAE chocolate Market Forecast & Opportunities, 2019’,
the UAE chocolate confectionery market is estimated to flourish at a CAGR of 6.09%
during 2014-19(Prnewswire.com, 2015).

POLITICAL FACTORS:

1. The UAE is a classic paradigm for political stability for both global and
regional levels.
2. The country’s policy of openness and tolerance is one of the reasons for
political stability and social harmony (Emirates 24/7, 2011).

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 3. The UAE actively encourages foreign investment and provides them with
perfect business environment (Startupoverseas.co.uk, 2015).

LEGAL FACTORS:

1. The UAE chocolate market is expecting a number of new entrants due to low
entry barriers.
2. The government does not impose any direct. Custom duties are low at 4%
and there are no foreign exchange controls and trade barriers
(Startupoverseas.co.uk, 2015).
3. The country’s ministry of health is planning to introduce a new law to restrict
the amount of trans-fatty acid in food up to 5%.

ECONOMICAL FACTORS:

1. The UAE is one of the highly developed and industrialised economies in the
world. It is ranked 5th in the world and 3rd in the Middle East.
2. The UAE’s rising economy provides highly favorable tax conditions, and clear
incentives for investors of many foreign companies to establish business in
the UAE (Propertyshowrooms.com, 2015).

TECHNOLOGICAL FACTORS:

1. Middle east market is open to innovation, reporting 8 percent of launches

between 2008 and 2013(Pivac, 2014).
2. Chocolates are now made out of camel milk, as customers are more
interested in new flavors (Pivac, 2014).
3. There is a rise in artisan chocolate (Pivac, 2014).

SOCIAL FACTOR

1. Price is no more a key determinant. Customers are now more interested in

quality and ‘wow’ effect.
2. Chocolates are popular in Middle Eastern region as a gift for special
occasions mainly Ramadan (Pivac, 2014)
3. Due to increase in health awareness customers are opting for dark-
chocolate, sugar- free, low fat content food with organic ingredients.

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ENVIRONMENTAL FACTOR

1. The UAE government is actively promoting sustainability by running various

campaigns such as ‘UAE’s total footprint’ in order to calculate carbon footprint
(Uaetrade-usa.org, 2015).
2. Government has also launched several agencies to monitor progress,
implement projects in the ecological field.
3. It is also effectively working towards public transport, dedicated cycle ways,
irrigation-solid waste management (Uaetrade-usa.org, 2015).

CAGE FRAMEWORK

THE UNITED KINGDOM UAE

• Language: Arabic is
• Language: English is the
the official language.
official language. Other
Immigrant language
Cultural distance native languages are
English, Hindi, Urdu,
welsh, Irish and Cornish.
Filipino.
• Ethnicity: English 83,6%,
• Ethnicity: Arabic/local
Scottish 8.6% Northern
pollution is tiny,
Irish 2.9% others 7.9%
mostly occupied with
• Religion: Christian 71.6%
expats
Muslim 2.6%, Hindu 1% • Religion: Islam
• Social norms: punctuality,
dominated.
meeting & greetings, gift • Social norms :Islamic
giving.
greeting. It’s
(Kwintessential.co.uk
ethnically distinct
2015)

23
 from the UK.
(Everyculture.com,
2015)

• The UAE has federal

• Constitutional monarchy
Political distance
• Corruption perception government made up
index: 7.7(Aneki.com, of several organs.
• CPI- 5.9
2015)

• The UK is Comprised of • UAE is comprised of

Geographical four countries England, seven emirates.

• Population:
distance Scotland, wales and
Northern Ireland 1,137,350
• Population: 7,421,210 • Climate – hot climate
• Climate: temperate (Everyculture.com, 2015)
(Kwintessential.co.uk
2015)

• The UK is 7 times more • The UAE have an

economically stronger than open economy with
U.A.E high per capita
Economical • It is the second largest income.
distance economy in Europe after • The industry
Germany. establishments are 3
• Standard of living is times more than the
comparatively higher than UK.
the UAE.
(Nationmaster.com, 2015)

PURPOSE FOR ENTERING THE UAE MARKET

The UAE’s highly favorable tax conditions and low trade entry barriers are actively
attracting foreign investors.

The UAE tourism sector is one of the key reasons for entering the market. The

24
country invites 10 billion tourists in a year, which can be a huge potential market for
Cadbury. Cadbury’s can also establish ‘Cadbury world’ in the UAE as one of the
tourist attraction and it can also work as marketing strategy.

In order to produce chocolates as per the local population’s tastes and preferences
Cadbury’s can produce ‘chocolate dates’ as dates are highly consumed by the local
Emirati’s. It can also introduce low-fat, nutritious products to promote healthier
lifestyle.

Cadbury’s should implement various marketing and advertising strategies to gain

market presence and share in the UAE confectionery industry.

MARKET ENTRY STRATEGY

The author strongly recommends joint venture and alliance as the market entry
strategy to set up business in the UAE.

Joint venture is ideal strategy as the investment risk is shared between the partners,
access to greater resources (work force, finance and infrastructure), running an
alliance with the local partner will help in identifying the market in more detail and we
can target the local population too. Cadbury’s can effectively monitor products quality
and can come up with new innovative products with the combined efforts of the
companies.

CONCLUSION
Cadbury is worlds biggest confectionery company with strong brand awareness. It is
very important for the company to analysis its external and internal environmental
factors to be aware of the changes and to achieve a competitive advantage. All the
research tools like PESTEL, Five Forces, TOWS provides the company with quality
information for planning effective business strategies and to be aware of the
changing customer preferences.

Cadbury should keep working towards the society in order to hold and protect the
company’s good will and brand equity. While globally expanding the company should
critically evaluate the prospect market to understand the profitability percentage of
investment.

25
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30
APPENDICES
Appendix 1: Porter’s Five Force Frame work
Appendix 2: Carroll’s pyramid of corporate social responsibility

31