International Marketing Study Program 2001

 

Alan Palmer - International Marketing Director

Main market regions for confectionery are South America, North America, Australasia and Europe. The Australian portion of this business is extremely important, with more dollar market share for Cadbury than the USA.

Cadbury's current strategy is to focus on core markets and has two principle themes- Growth & Efficiency. Cadbury will develop regional business via acquisition and disposal. This will be achieved by growing the brands, focusing on faster skills through new innovation and broadening channels of distribution. As with many businesses, Cadbury are also seeking to increase efficiencies and reduce their operating cost base. In early 2001, the merger with Trebor Bassett will come into line and should complement the Cadbury brand.

Currently, Cadbury has 57 brands of Chocolate and is showing consistent growth. On the other hand, Trebor Bassett has 77 sugar brands and is in decline. We were briefed in some detail, as to how Cadbury Trebor Bassett plan to execute Scale Leadership and deliver growth in both markets. The Growth Model was also shown in detail with focus on the Cadbury Master Brand.

 

Peter Creighton - Manager Confectionery Gifts and Occasions - Cadbury Trebor Basset, Alan Palmer - International Marketing Director, Terrie and Kriti

 

Peter Creighton - Manager Confectionery Gifts and Occasions - Cadbury Trebor Basset

The success of Cadbury over the years can be attributed to consistent marketing and identification of the brand itself. The Cadbury logo, along with the purple white and gold pack, has only changed marginally at different time points over the years. In 1953 the first television advertisements were screened, which was basically the commencement of the brand personality and image. Chocolate can be classified as a universal food, as it appears to have no cultural boundaries and is enjoyed internationally for various reasons from functional to emotional. The chocolate category is a 1.4 billion-pound business at retail. At one point Cadbury had introduced foods into the range, which were not complementary and consistent with the brand, so these were eventually disposed of.

Cadbury have managed to build brand awareness and increase market presence via brand accessibility. As 50% of confectionery purchases are made within 10 seconds, availability and consumer mindspace is extremely important. Basically, the plan is to have Cadbury Trebor Bassett within reach of all international consumers - by way of increased distribution in traditional markets such as all facets of retail, but with increased presence in vending machines (such as the tube in London) and some other very innovative areas such as gifts direct, the Cadbury Café (currently being trialled in Bath) and the sponsorship of the very popular Coronation Street.

The group was also treated to a very popular 2-hour plant tour of the Bournville site, where amongst other things, we witnessed the manufacture of Easter eggs which traveled along 3 miles of conveyer belts! We were also treated to the manufacture of individual packs and chocolate bars - with an all you can eat principle on the tour! The scale of the operation is extremely large and gave a fantastic insight into the background logistics of production of these fast moving consumer goods, which may not often be considered by marketing staff in some organisations. All in all, it was a very enjoyable day and our thanks again to Cadbury's Alan and Peter.

 

Chris, Steve (Factory Tour Leader) Doris, Michael M, Michael D