International Marketing Study Program 2003
Cadbury visit
9 January 2003
On January 9th we embarked on a tour to the UK home of chocolate - Cadbury Schweppes in Bournville Lane, Birmingham. The day began with a presentation by the Cadbury International Marketing Director, Alan Palmer who gave a fantastic overview of the company as a worldwide brand manufacturing business. Alan discussed a variety of Cadbury's success factors, strategies, drivers for future company growth and changing market trends. Cadbury believe in nurturing the reputation of their brand and ask employees to commit to this also. Their core competencies in beverage and confectionary are the focus of their operations, with an aim to develop robust and sustainable regional businesses through acquisition and disposal.
Research undertaken at Cadbury has revealed that in a mature market such as the UK, chocolate consumption patterns change from sheer indulgence to that of simple snacking. This research also illustrated how changing demographics, increased health awareness and intense competition for non discretionary income from non-food categories ensure that the confectionary market is a truly dynamic industry that requires constant modifications.
Cadbury faces many challenges in the marketplace such as competing for consumer discretionary spending against other confectionary rivals but also non-food categories as well.
Alan described Cadbury's approach to strategic management as 'value based management' focussed on growth and efficiency. Future growth strategies are threefold: to grow organically through the development of brands, to grow faster through their skills in innovation, and to grow broader by opening up new channels of distribution. Cadbury also aims to increase efficiency by further reducing their operating cost base. The growth strategies are subsequently driven by four factors: availability i.e. push out into the market, maintaining in growing the brand image, product innovation and POS displays.
Following Alan's presentation, we were taken on a very informative tour of the plant by recently retired Cadbury management which included (perhaps too many) opportunities to sample products along the way! At the completion of the tour we had the opportunity to view several different international TV commercials illustrating the cultural adaptations that Cadbury adopts worldwide. We then headed to the director's dining room for a much appreciated buffet luncheon and an extensive informal Q & A session with Alan Palmer. This Q & A session was a perfect opportunity for all members of the group to ask more specific questions relating to their specific research topic.
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