PEST and competitive analysis facing by confectionery organisations

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Summary

This report defines the PEST and competitive analysis facing by confectionery organisations. The international organisation's Cadbury and Nestle are the organisations where the leaders of confectionery food. This report will discuss the strategy using by these two companies and their mission, what are their objectives and how can they achieve their goal?

Introduction

The UK confectionery market forms part of the food industry and was valued at £5.54bn 2001. Sales have increased over a number of years. Although not an essential purchase, confectionery is bought by the majority of the population. Changing eating habits have led to increased levels of snacking and grazing and, as a highly accessible and desirable food, confectionery has been able to capitalise on this trend. There are two main sectors in the market - chocolate confectionery and sugar confectionery.

The UK market is relatively mature. As a consequence, there is little scope for market growth. The predominant trend among the leading companies is to expand through brand extensions rather than new product offers. Confectionery is an impulse market, which means that strong brand identities are of key importance. Creating new products by extending established brands carries lower risks