• Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

How does Cadburys discover potential competitors?

Extracts from this document...

Introduction

In all types of business, there is some sort of element of competition. As consumers, this is the perfect situation for us because there is a wider variety of products and services. For some businesses, competition is not beneficial and potentially disastrous for the business. Because of all this competition, businesses are required to identify new strategies in order to compete and win over the consumers. They also have to work hard to bring in new business. In terms of mastering this art, there is no company better at doing this than my selected business, Cadburys. Cadbury's is a confectionary giant, dominating not only the UK market, but is renowned worldwide. Via great marketing strategies and many other ideas, Cadbury's have been market leaders since 1993 (Source: BBC News) Cadbury's have to compete in the following categories in order to become the cream of the crop: * Price * Products * Marketing * Promotion * Customer Services How does Cadbury's discover potential competitors? Cadbury's do this by carrying out a competitor audit. The competitor audit is just a basic analysis of the market. There are usually obvious competitors, who offer the same service/ product. However, there are many that may be a business advertising an alternative to the products Cadbury's sells. Here is a completed customer audit for Cadbury's: Name of Competitor How does the competitor compete on product? i.e. What products do they sell? Are they of a better/poorer quality? ...read more.

Middle

However, if rival businesses also lower the price on a product, the action is known as a PRICE WAR. This is an effective strategy in driving smaller companies out of business. As well as one less competitor, the business would incur a larger market share. In terms of relating this to Cadbury's, the price war tactic is rarely used as they are market leaders and any further price wars could result in a fall of market share. Cadbury's main competitor in terms of price has to be confectionary rivals, Nestle. The prices are fairly similar, with Cadbury's Dairy Milk bar; attracting newsagent prices of around 50p a bar. The same goes for the Nestle creation, Galaxy. Furthermore, in terms of value for money, the products are fairly identical. Using the same products as examples, the smaller versions include six breakable pieces of milk chocolate for the same price. From a personal note, I feel the gap could be larger between the two companies. This would be achievable by Cadbury's raising their prices to make more money. This is justifiable because Cadbury's are the market leader and lots of people buy their product. However, this may backfire because people may pay the lower prices for Nestl�'s Galaxy bar, causing Cadburys' to lose market share and question whether they are still market leaders. How does Cadbury's compete in terms of product? Cadbury's has a range of different products within the confectionary market. This includes chocolate (Dairy Milk the most notable), chewing gum (newly produced Trident Soft) ...read more.

Conclusion

On the chewing gum side of the business, Trident Soft is being marketed and receiving heavy promotion because it is a new product and this just entices the customers more into buying the product. In terms of the prices that Cadbury's pay for the extensive advertisement, it is totally justified by the raise in market share they receive. How does Cadbury's compete in Customer Services? It is really tough for Cadbury's to compete in this field, as they bare market leaders and they are expected to perform fantastically by the public day and day out. The public have come to receive a good level of customer services for Cadbury's. There has been one notable problem with the products Cadbury's have provided recently, which aroused in 2006. This involved a batch of Dairy Milk chocolate was found to have E-Coli inside. This type of incident is very rare nowadays, however, due to the business incurring Quality Control checks. This was introduced in 1980 and insured that every products was checked before exiting the production stage. Cadbury's have also got a local and worldwide customer services department to deal with any problems customers may be experiencing. However the company is expected to have a lower number of complaints because they sell a high- quality product. In terms of competing to be customer service provider, all businesses have to have an excellent level of customer services or they would get masses of complaints. Remaining the market leader for 15 years running, Cadbury's must be good otherwise people would not buy the product again. ?? ?? ?? ?? William Burrows - 10B3 10/6/08 Unit 1 - Investigating Business AO6: Competing in Business ...read more.

The above preview is unformatted text

This student written piece of work is one of many that can be found in our GCSE Case Studies section.

Found what you're looking for?

  • Start learning 29% faster today
  • 150,000+ documents available
  • Just £6.99 a month

Not the one? Search for your essay title...
  • Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

See related essaysSee related essays

Related GCSE Case Studies essays

  1. unit 8 business online p1

    as online order tracking, online communication with staff and automated confirmation of order. To ensure that the website always meets the needs of its users the updating and reviewing of it must be planned. Changing of the design at regular intervals also has its benefits, because it makes the website

  2. EVALUATE THE EFFECTIVENESS OF APPLES APPLICATION OF THE MARKETING MIX WITHIN THE UK MARKET

    services 12 N/A N/A Peripherals and other hardware 1,260 1,100 1,126 Software, service, and other net sales 1,508 1,279 1,091 Total net sales $24,006 $19,315 $13,931 Apple sold 2,496,000 Mac computers during the sector, Showing 41% growth and 43% revenue growth over the year.

  1. Unit 5 - Customer Service

    Marketing is one of the main ways in which ASDA is able to make its profit because it alerts customers of what the store has to offer and without the popularity the business would not be able to produce profit at all.

  2. Unit 1 investigating business

    An objective is a short term goal which is measurable. One of McDonald's objectives to serve healthier food, this relates to there activities because they serve salads, healthier burgers and orange juice. One of JD sports objectives is provide a top quality sports wear, this relates to their activities because they produce sportswear of very high standards.

  1. Would the opening of a fast food restaurant on Riddy lane (Luton) represent a ...

    diet, as well as parents wanting there children to eat healthier food as there is a risk of obesity in children is increasing. From all the secondary research I have carried out I believe that it is a good time to open a fast food business.

  2. This marketing report is going to look at the internal and external analysis of ...

    Heliskiing is within the reach of intermediate skiers and we are finding there is an ever increasing demand for this type of activities says head of marketing Nigel Ragg. A week at the five star Coast Hillcrest Hotel including two days of heliskiing starts at �1,726 per person including flights (travelweekly).

  1. McDonalds Corporate Sustainability

    This is also now seen as an ethical trait which is attractive to consumers when marketing a product. The government are also considering increasing tax on items which are detrimental to the environment in a bid to become environmentally friendly (www.bbc.co.uk, The Guardian, Friends of the Earth).

  2. Business coursework- comparing the operations, aims and objectives of Tescos and Sejuice juice bar

    R elevant - an objective should help to achieve the aims of the organisation T ime specific - an objective that should have specified starting and finishing dates. Smart objectives are objectives for themselves or for the products or services they are launching.

  • Over 160,000 pieces
    of student written work
  • Annotated by
    experienced teachers
  • Ideas and feedback to
    improve your own work