Introduction:

This business plan relates to Cadbury plc which was established in 1824 and is engaged in the production, distribution and sale of confectionary brand throughout the world. The purpose of this plan is to increase the profit margin by planning developing and introducing a new product range to Cadbury.

Objectives:

Primary objectives:

  • To design, develop and introduce a new product in the Cadbury range

Secondary Objectives:

  • To produce a sales forecast- by using the marketing data, primary and secondary statistics, I will aim to produce realistic sales income estimate.
  • To construct a Profit & Loss Account- I will make a Profit & Loss account for both years so I can analyse differences between the two years, and what may have caused these to occur.
  • To carry out detailed competitor analysis.
  • And to implement marketing research such as questionnaires and surveys in order to identify potential target markets

Background research:

Cadburys is a multinational organisation that deals with various brands of products ranging from chocolates to gums as shown in the graph below:

This graph shows that most of the revenue gained by Cadburys is mostly in the chocolate department therefore showing its stronghold in manufacturing chocolate items. Hence the introduction of a new chocolate bar would be appropriate in order to boost revenue within the market as a 50% revenue stake would be ideal to have.

Ever since the introduction of coco which has lead to the manufacturing of chocolate, demand has always been increasing and most firms have to keep up with demands as taste changes during time. The graph below shows the forecast of sales for chocolate within the UK:

               UK retail value sales of chocolate confectionery, 2003-13

Source: Mintel.com

By the year 2013 sales would have nearly doubled therefore showing a huge increase in demand for chocolate therefore it would be appropriate to introduce a new product range for Cadburys in order to keep up with the demands. Furthermore, with the implementation of a new product, we would have to think about the design of the product and development too due to constant changes of taste within consumers.

Market Segment:

The product is likely to be aimed at children and teenagers between the ages of 4-18 as they are the most likely to purchase chocolates. However recent reports show that children are becoming more obese therefore it has become difficult for sales to grow as health has become a major issue for confectionary firms. Therefore low fat chocolates would be ideal to be introduced as this may boost sales due to Cadbury abiding by the health and safety laws. Cadbury has the largest spread emerging products in the world which makes it a major confectionary with a range of growth opportunities as the graph shows below:

 Due to this, Cadbury is more than happy to implement new product ranges such as that of different dairy milk flavours as well as various other flavours in products such as crème eggs.

Furthermore, even though the world is going through a traumatic recession in which major businesses are going into administration, Cadburys is looking more on the bright side as UK Reuters report that “Cadbury sees chocolate eating rising in recession”1. Therefore showing that confectionary sales are on the rise and if Cadburys do produce more products ranges, this can possibly lead to Cadburys achieving a greater profit margin than expected.

Location:

Although Cadbury is a multinational organisation with factories all over the world in places such as Canada, New Zealand, Australia and South Africa, supply for the new product would be restricted to the UK as a trial to analyse its popularity within the market. Therefore manufacturing of the product would be done in the UK for the first year and if the product redeems itself as a success, then only would the manufacture expand into factories worldwide.

Competition:

There is a lot of competition within the confectionary market with the main competitors being Mars-Wrigley due to a recent merging of both companies2, which has increased the competition for Cadburys as the merging of Schweppes with our organisation collapsed. In addition other main confectionary firms which consist of both local (national) and multinational organisations in the market who are also looking to increase their market share with the introduction of new products too. Therefore Cadburys has to implement a range of new products in order to keep up with competition as the graph shows below:

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The Graph shows that Mars-Wrigley own about 20% of the market compared to Cadburys 15% which makes Mars a major competitor. However Cadburys is known to have a strong command in the UK, therefore the implementation of the new product is to boost Cadburys market share and provide a more stiff competition to match Mars-Wrigley.

Secondary Research:

Reports suggest that men are likely to purchase chocolate as snacks while at work in a rush whereas women prefer sharing occasions as it helps share the guilt.

Women are heavy consumers of chocolate confectionery. For ...

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