StudentShare
Contact Us
Sign In / Sign Up for FREE
Search
Go to advanced search...
Free

The Cadbury - Essay Example

Cite this document
Summary
The paper "The Cadbury" tells us about a British multinational confectionery company. It is the second-largest confectionery brand in the world after Mars. Cadbury is internationally headquartered in Greater London and operates in more than 50 countries worldwide…
Download full paper File format: .doc, available for editing
GRAB THE BEST PAPER94.9% of users find it useful
The Cadbury
Read Text Preview

Extract of sample "The Cadbury"

Cadbury is one of the well-known British Confectionery Companies founded in the year 1824 in the region of Birmingham. It was established by John Cadbury. Initially, it used to present tea, coffee and drinking chocolate, and many others. It was recognized as one of the flagship brands offering high-quality cocoa chocolates to its target customers at a quite lowest cost. Because of this the brand image and market share of the organization enhanced substantially to a certain extent as compared to other rivals (Cadbury, n.d.).

Cadbury, the market leader in the chocolate industry faced a huge setback in the month of October of 2003. In spite of being a legendary brand and dominant position in the market, the revenue and total sale of Cadbury experienced a serious downfall due to the worm problem detected in the dairy milk bars. Immediately, the problem was presented in front of the Food and Drug Administration Commissioner (FDA) complaining about the infestation in the chocolate dairy milk bars. The sale of the brand attained a serious loss in that festive season of Diwali, along with a huge loss of brand value as well.

The problem of worms created a crisis situation for the brand due to which the promotions and advertisements are entirely banned. As a result, the total profit margin along with reputation and credibility also reduced. As Cadbury is entirely identical to chocolate so infestation in dairy milk bars reduced the market value and sales. It is mainly due to the technical defects in the machines at the time of manufacturing of Cadbury bars i.e. fermentation, drying, roasting, crushing, blending, and grinding. Apart from this, improper packaging and unhygienic storage also lead to this problem. Due to this, a huge range of stocking of the products in retailer and distributor go-downs took place along with a reduction of the morale and credibility of the customers. Due to excess stoking of the products, the retailers and distributors had to sell them at discounted prices attaining huge losses. This is the prime cause that declined the confidence power of the retailer and distributors of the brand. So, the management became extremely conscious to retain its portfolio and market share as before by the below-mentioned strategy (MBA Knowledge Base, 2003).

In order to regain back the credibility and reliability of the stakeholders and customers, the management of Cadbury used a strategy named: Two-Phase. The first stage mainly highlights the views of the organization of Cadbury and the second stage includes packaging changes and detailed communications. In the first stage, the management ensured the customers improved their monitoring and analyzing the process of storages and the raw materials used for the preparation of its varied items. Along with this, it also ensured the implementation of modern machines so as to reduce technical defects.  Moreover, it also introduced a new toll-free number so that the consumers may directly contact the management in case of any sort of defects faced for the period of October to December 2003 (MBA Knowledge Base, 2003).

In the second phase, the management thought of changing the packaging so as to regain its market share. It used a double wrapping system to reduce the trouble of worm infestation and also introduced a reputed brand ambassador: Mr. Amitabh Bachchan to retain its previous brand image. Along with this, it also invested 40 cores in advertising and promotional campaigns to make the customers aware about their strategies. It is used to improve its brand value and market share in the market among others. Other than this, restoring the level of confidence in key stakeholders, customers, employees, and sales team is also extremely essential for Cadbury (MBA Knowledge Base, 2003).

The two-phase strategy acted as a boon for the organization of Cadbury. Due to this, the total sales and revenue of the brand increased considerably to a certain extent. Along with this, the market share and brand equity of the organization also enhanced resulting in amplification of its profit margin in the next coming years. Other than this, the brand image and customer reliability and perception also improved resulting in retaining its growth and dominance in the market as before. It might be viewed clearly in the below-given picture (MBA Knowledge Base, 2003).

Therefore, it may be stated that the strategy proved extremely effective for the organization of Cadbury resulting in the up-liftment of the image in the market. Hence, it proved quite beneficial and advantageous for the organization.

Read More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“AAWS Coursework 3 Essay Example | Topics and Well Written Essays - 500 words”, n.d.)
AAWS Coursework 3 Essay Example | Topics and Well Written Essays - 500 words. Retrieved from https://studentshare.org/business/1483412-aaws-coursework
(AAWS Coursework 3 Essay Example | Topics and Well Written Essays - 500 Words)
AAWS Coursework 3 Essay Example | Topics and Well Written Essays - 500 Words. https://studentshare.org/business/1483412-aaws-coursework.
“AAWS Coursework 3 Essay Example | Topics and Well Written Essays - 500 Words”, n.d. https://studentshare.org/business/1483412-aaws-coursework.
  • Cited: 0 times

CHECK THESE SAMPLES OF The Cadbury

The Culture of the Business Organization

The paper describes The Cadbury Company where the managers of the organization conduct extensive research before starting operations in the international markets.... In our case for The Cadbury, the organization uses a number of sales made as the key performance indicator.... The Cadbury Company also uses the comparison between different trading years profit with a target of the percentage they want in each and every year.... The Cadbury Company has tried to maintain its performance indicator for many years and this has enabled the company to monitor its progress against other competitors in the industry....
8 Pages (2000 words) Research Paper

The Corporate Governance Structures

This literature review "The Corporate Governance Structures" critically reviews the evidence that the corporate governance structures and reporting requirements required in the United Kingdom by The Cadbury Committee and its successor.... In response to this public pressure, in 1991 the then Conservative government under Prime Minister John Major established The Cadbury Committee and its successors.... The Cadbury Code is the unofficial name for the first Code of Best Practice on corporate governance, published in 1992....
6 Pages (1500 words) Literature review

Transnational Mergers and Acquisitions

Despite this, there are controversies about this proposed takeover as the employees of The Cadbury have lined up in London to protest against this takeover owing to the job losses that they may incur.... Thus the proposed takeover of The Cadbury of the Kraft may be providing easy access to the UK market besides expanding its market base.... In February 2010, Kraft unveiled the details about its proposed takeover of the British company cadbury....
8 Pages (2000 words) Case Study

Corporate Governance - Public Frustration with Practices of Publicly Traded Corporations

The paper "Corporate Governance - Public Frustration with Practices of Publicly Traded Corporations" observes The Cadbury Code 1992 on the size of the board, its composition, qualifications, and functions and analyzes the corporate governance situation in the UK to identify the failures which had led to the financial crisis....
9 Pages (2250 words) Essay

Applying Cadbury Brothers Philanthropy Principles to Business

It is possible and highly desirable to use the philanthropic principles of The Cadbury family to manage a business today; businesses should not just focus on making profits for themselves, there should be some effort put in to somehow improve the lives of its customers.... It is interesting to note that The Cadbury family were Quakers.... The Cadbury family even tried to eliminate poverty and deprivation; John Cadbury introduced chocolate and related products to act as substitutes for alcohol since he believed alcohol was the main cause of poverty in the lower classes of society (The Story of Cadbury, n....
2 Pages (500 words) Essay

International Marketing Profile of The United Kingdom

After the government has reduced the high import taxes on cocoa, John cadbury has been able to extend the chocolate and make it affordable to the masses.... This significant change in history, coupled with cadbury's being acknowledged as the manufacturers of chocolate for Queen Victoria, has set to propel the company's operations up to where it is today....
16 Pages (4000 words) Research Paper

Corporate Governance: A Critical Analysis

The Cadbury committee laid the foundations for the present effective system of corporate governance in the UK and influenced codes for so many other countries.... Committee on the Financial Aspects of Corporate Governance, & cadbury (1992) report provided a revolutionary first formal code of corporate governance practice in the UK....
6 Pages (1500 words) Coursework

Opportunities and Threats of the Cadbury Logistic Providers

The paper 'Opportunities and Threats of The Cadbury Logistic Providers' is a valuable example of a management case study.... The paper 'Opportunities and Threats of The Cadbury Logistic Providers' is a valuable example of a management case study.... The paper 'Opportunities and Threats of The Cadbury Logistic Providers' is a valuable example of a management case study.... Opportunities and threats of The Cadbury Despite the success of the business, some opportunities accompany the logistic providers as well as faced with some challenges....
6 Pages (1500 words) Case Study
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.
Contact Us