Question

Current marketing analysis: Critically analyse the current marketing activities of Cadbury Chocolate and two of its competitors which are Mars and Hershy's, within the allocated ’Product category’ in the Australian marketplace. Chocolate is the allocated product category.

Hints: Critically analyse current marketing environment, construct and evaluate SWOT analyses, evaluate the three brands’ perceptual positions, identify target 10 markets for each brand, critically analyse each brand’s current application of their marketing mix,

Answer 1

The market analysis refer to examine the market either virtually or through physical mode. Is is done to calculate the strengths , weakness , opportunities and threats of the company or organization in the over all market.

The SWOT analysis helps to identify the decision to be taken or to adopt any strategic movement in an organization.

SWOT analyses of Cadbury chocolate keeping in mind the product category

STRENGTHS

• Product Portfolio : The Cadbury chocolate have large brand portfolio in its Umbrella like five star, Oreo, born vitta and many others. These brands are widely used by all over the world therefore having these brands in the product portfolio will increase the profitability of the company.
• Brand loyalty : The Australian population is mostly engaged in purchasing the trust worthy items and Cadbury has never disappointed the Australia in terms of quality or packing. Therefore the brand loyalty is more in Australia then any other country.
• Promotion : For any organization to touch the heart of population is most important. The Cadbury has surely done that. By attractive catchy tag line it has mould the mood and preference of the people therefore buying the Product in more numbers.
• Culture : The Australian are famous for adopting culture of different countires.As Cadbury is flexible more in India so people of Australia are liking this change and adapting the Indian Culture as per the advertisement and promotions.
• Distribution Channel : It uses the strategy of breaking the bulk and this sole in more than 150 countries with FMCG companies as well.
• Other basis strengths include
  • globally positive impact
  • Product differentiation
  • innovation and expansion
  • limiting the pricing and increasing the sales.

WEAKNESS

• Product variation : The Cadbury is good for manufacturing chocolate whether dark or milk however it is lacking in producing other food related services. They are limited to confectionary items only therefore this may create hurdles in future as people are getting more engaged in healthy products and services.
• Product recall : Many times inspite of giving best possible qualities the company has to recall its products sometimes due to mismatch Labeling or for having harmful bacteria in the chocolate.
• Focus : The Cadbury focuses on one particular market at a time this lead to more advantage for its competitor as in that time the competitor acquire other areas and build their brands.

OPPORTUNITIES

• Product Expansion : as for the time being the Product range is limited therefore this weakness can be converted into opportunity by making the product expansion and moving in more line of business in food and beverages category.
• New Tastes : The Cadbury is limited in same line of chocolates therefore enhancing the new taste will increase the brand loyalty.
• The formation of chocolate in Australia was when the chocolate was send in brown wrapper to the Australian armed force during war time, however this practice is not carried forward now. Again starting this initiatives will expand the business like never before.

THREATS

• Existing Competition : For every established Organization te biggest threat is the other brand in the same line known as competitor . They take advantage of one bad move from from your business and build the entire brand on that.
• Cost Increase : The price of the bars are yet same but due to increase in transportation cost and overall cost of procurement and manufactured has increased. Till the time Cadbury is managing with same price level but soon the prices of items will be increased in Australia to cope up with the cost of production.
• Rising demand for other gifts : Earlier the celebration was given as a gift but in these year due to change in Preferences of children the celebration is switched with games and toys . Therefore the Preferences has somewhere lost their position in the Cadbury world.
• Health : Now a days people are more engaged in healthy items therefore the taste and Preferences are moved towards more of Healthy items.

WHEREAS

SWOT ANALYSIS OF MARS

STRENGTH

• Demographic Area : Marks is famous for taking demographic advantage in the counties. Focus on area i.e.. location has reduce the business risk and thereby increasing the profit
• Sustainability : The optimum utilization of resources has left the Mars with an opportunity of extra resources to be used in future. Moreover engaging themselves in the practices of making the world healthy is the another strength with them. This strength is unique and is not opted by its competitors
• Product Portfolio : The Mars is favor for food and beverages industry. The products ranges are for all humans as well as animals. Hence there customer segment is powerful than others.
• Health : By attaching healthy points to its brand has gained competitive advantage.

WEAKNESS

• Defamation : Due to product recall for having animal rennet the product has some where lost its image
• Pricing : the expensive price has affected its population and they are shifting to the substitutes
• Product Recalling : The qualities of this brand is often judged therefore giving loss to the company

OPPORTUNITIES

• Lean Supply chain : The cost of production is reduced by the facts of lean supply chain as idle time is calculated and minimized.
• Pet care industry : The relative growth of this sector is slow however the marks position in this sector in on top
• Mergers : The other line of business are merging and therefore there is ultimate profit ot the company

THREATS

• Existing competition : As discussed there are already established brands giving them competition
• Price expansion : The increase of price has created room for improvement
• Health : although the attachment of health component has added value to the company however the products are rich in fats and cholesterol.

WHEREAS

SWOT ANALYSIS OF HERSHEY,S

STRENGTH

• Biggest manufacturing company : The company is largest manufacturing in the world that means it has more manufacturing units in Australia as well.
• Innovation : The Australian Hershey's is engaged in innovation from manufacturing to packaging i.e. different products or different style of packaging has attracted the current youth of Australia.
• Product portfolio : As its manufacturing is largest therefore its products portfolio is also large than others. Moreover due to this feature it is amongst top 300 companies in Forbes list.

WEAKNESS

• Less use of fair practices : The company is engaged in sales and manufacturing however the ethical way is not yet adopted. Therefore its company s engaged in unfair practices to gained profit in Australia.
• Limited Growth : The economic growth of the company is relatively slow than others inspite of having this big manufacturers in its hand.
• Fake : The company just to increase sales used dilutes and duplicate product in the market
• Defame : The practices of the companies has often defame its name in the open market.

OPPORTUNITIES:

Diversification : They are coming up with different diversification strategies to cope up in the open market situation.

Distribution Channel :The improvement in distribution Chanel has created the place of this company in Australian market place.

New Australian Policy : The company is adopting itself as per the countries therefore the company is engaged in adopting policies as per the countries.

THREATS

• Existing competition : they too have well established competitor in the market.
• Change in demand : Due to its practices people of Australia have shifted their demand to other competitors
• Health concerns
• There is no sustainability in Raw materials hence there is under utilization of its resources.

The all three are well established brands in Australia , however after the market analysis it makes clear than all the three and weakness and threats but the competitive advantage is given to Cadbury Chocolate as the company is trying their level best to survive in the market . Moreover the ethics in its decision taking has given it the position where people are ready to make Cadbury as a substitute.

Therefore out of three Cadbury is gaining the advantage in the market of Australia.

TARGET MARKET OF CADBURY

• age group of 5-15 years
• Recent switch to other age, genders as well de to the increase in taste and quality.

TARGET MARKET OF MARS

• Humans and pet industry
• the age group varies upon the products rendered by them due to diversification of product

TARGET MARKET OF HERSHEY'S

• age group 10-35 years