Meeting specific needs for customers, chocolate is considered as a luxury item, and people enjoy eating chocolate however due to conditions such as diabetes, Cadbury need to make the chocolate so that it does not effect the diabetics that eat their products.
The equipment used by Cadbury to make the chocolate needs to be fully utilised to be profitable, this depends on the form of production the business uses to manufacture its goods.
The form of production that Cadbury uses is batch production, this the most convenient way that Cadbury can manufacture its products due to there being a high demand of chocolate and the way that fixed amounts of chocolate is needed to make each individual chocolate bare, hence this is also a quicker method to make large amounts of chocolate.
Cadbury is always improving the quality and taste of the chocolate it produces so that it can attract more customers and more people will eat and buy Cadburys chocolates.
Value added
Value added is when the inputs (raw materials) are changed into outputs to produce goods that meet the customer’s demands. At each stage of the transformation to chocolate value is added to it.
Below is a value chain chart that shows where value is added at each stage of production/value chain for Cadbury.
The table above shows where value is added throughout the production process for Cadbury who manufacture chocolate mainly.
The value added at each stage of production means that the product is made to be more appealing/attractive for the customer to buy also the quality of the product is improved as the value is added to the product.
Adding value has a positive impact for Cadbury, because it aims to attract more customers to buy the chocolate that is produced. Cadbury also aim to make the chocolate be appealing to people who like to eat low fat things, an example of this is that, Cadbury make a low fat chocolate (Frys Turkish) which is 92% fat free, this is made for customers who are trying to loose weight/watch what they eat to keep in shape (pictured below).
Value is also added when the chocolate is packaged to help it to stay fresh. For Cadbury this means that the sales would increase because the packaging helps to sell the product, and also keep the product in the condition it’s meant to be in (cool, dry, fresh etc).
If the packaging for the chocolate did not keep it in the condition its meant to be in then it would have a negative impact for Cadbury over all because no one would want to purchase the chocolate and go elsewhere, as chocolate is not a necessity but a luxury item and it has a lot of substitutes (Elastic product).
Below are the types of packaging that Cadbury use for their chocolates.