Cadbury Case Study 1c5q4d

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 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 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). 5

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 6

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 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 ve Rivalry high impact

suppliers suppliers power-low power-low impact impact

Buyers Buyers power-high power-high 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 8

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 ired tourist attraction Cadbury

Physical resources 

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 2012 for research and

Technological resources 

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

Human resources and corporate



culture

structure. Employee benefits and 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

Reputation



(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-



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 industryPure 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 

Internal



Cadbury is a world





Mondalez to maintain

manufacturing. It has

the same emotional

brand presence in 200

bond with the UK

countries. Cadbury has many

consumers similar to 

External Factors

Cadbury’s. It can be problematic

are giving tough

to integrate two

competition to other

diversified corporate

chocolate

cultures of Cadbury’s

manufactures (Bhasin,

and Mondalez. The impact

2015). Cadbury has strong



Competitors rivalry is

brand loyalty (Bhasin, 

It’s a difficult task for

leader in chocolate

strong brands, which

Factors

Weakness

2015). With the Kraft



very high. Few arguments raised on Cadbury’s quality

acquisition, Cadbury

control on a global

can now have greater

scale.

access to resources and capabilities.

Opportunities 

Leading chocolate



Sustainability

WO 

Increase in product

manufacturers are

campaigns can create

lines can damage the

actively working

good will to Cadbury’s

towards cocoa

and a positive brand

brand image. Company should

sustainability in par

image in public. Cadbury’s can

equally balance

government. Confectionery

introduce new

in order to maintain

technologies in its

stable market growth.

industry is

chocolate making

undergoing

process in order to

technological

bring out more exotic

with Ghana 

SO



15



different product lines





revolution. Increase in demand



cocoa flavors. Company can produce

for seasonal and

chocolates in creative

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. ST

Threats 



Introduction of



Cadburys should

WT 

Few threats are

various laws and

invest in various

uncontrollable such

regulations by the

programs to

as: deadly and

government to

the cocoa farmers for

incurable diseases

control health issues. Climatic changes and

a sustainable cocoa

affecting the cocoa

farming. The company should

crop and farmers. Cutthroat competition

out break of deadly



diseases in Africa are

sign contracts with

resulting in increase 

of cocoa prices. Increase in suppliers



power Threats from



diversified suppliers Cadburys should manufacture healthier products.

substitute products, such as nutrition bars and low calorie confectionery.

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

can trigger price wars.

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 : Education  

By ing education projects in order to develop skills Encouraging young people by providing employment skills

Health & welfare   

Initiatives to 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 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 practicesThe 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 darkchocolate, 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 UAE

THE UNITED KINGDOM 

Language: English is the



the official language.

official language. Other Cultural distance

Immigrant language

native languages are 

welsh, Irish and Cornish. Ethnicity: English 83,6%,

Language: Arabic is

English, Hindi, Urdu, 

Scottish 8.6% Northern

Filipino. Ethnicity: Arabic/local pollution is tiny,



Irish 2.9% others 7.9% Religion: Christian 71.6%



Muslim 2.6%, Hindu 1% Social norms: punctuality,



expats Religion: Islam

meeting & greetings, gift



dominated. Social norms :Islamic

giving.

mostly occupied with

greeting. It’s

(Kwintessential.co.uk 2015) 23

ethnically distinct

from the UK. (Everyculture.com, 2015) Political distance

 

Constitutional monarchy Corruption perception index: 7.7(Aneki.com, 2015)



The UK is Comprised of



government made up 

of several organs. I- 5.9



UAE is comprised of



seven emirates. Population:



1,137,350 Climate – hot climate

four countries England,

Geographical

Scotland, wales and

distance  

Northern Ireland Population: 7,421,210 Climate: temperate (Kwintessential.co.uk

The UAE has federal

(Everyculture.com, 2015)

2015)



Economical



distance

The UK is 7 times more

The UAE have an

economically stronger than

open economy with

U.A.E It is the second largest

high per capita

economy in Europe after 





income. The industry

. Standard of living is

establishments are 3

comparatively higher than

UK.

times more than the

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

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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 t venture and alliance as the market entry strategy to set up business in the UAE. t 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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APPENDICES Appendix 1: Porter’s Five Force Frame work Appendix 2: Carroll’s pyramid of corporate social responsibility

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