Marketing in Practice Case Study Example | Topics and Well Written Essays - 2000 words

Marketing in Practice - Case Study ExampleGlobal scenario of Confectionary labor The confectionary market consists of chocolates, gum, cereal bars and sugar confectionary. The global confectionary market grew by 3% in 2006 to reach a value of 100.9 billion dollars. Chocolate gross revenue dominate, accounting for 54.4% of the global candy store markets value. Out of total confectionary market universal, Europe generates 46.6% of the total global confectionary markets value. It has been projected that in 2011, the global confectionary market will pose to the value of 116 billion dollars, an increase of 14.9% since 2006. By the year 2011, the global confectionary market is forecast to produce a volume of 15.1 billion kg, an increase of 9.9% since 2006. (All the data has been extracted from the entropy Monitor report on global confectionary, Feb 2008). The confectionary market in regions such as Western Europe and North America has become mature and nearing to saturation. exercise level in these areas reached to nearly static position. Confectionary market is growing mostly in Central and Eastern Europe, India and China. It has been forecasted that global confectionary market between 2006 and 2010, grow 16% in value terms reaching more than 145 billion dollars. Volume sales have been expected to over 17.8 million tones by 2010. So it has been obvious that globally, confectionery market is expected to grow and Cadbury being the largest company after merger with Hershey it has strengthen their respective positions in the higher-growth markets for healthier forms of confectionery. Confectionary market worldwide is very competitive and it could be very well understood by the fact that the global confectionery market remains relatively fragmented, with the top six-spot manufacturers accounting for less than half (45%) of value sales. Significance for Cadbury The Company, Cadbury Schweppes is one of the largest confectionary companies based in UK and operates in a lmost 30 countries. UK has a well grown confectionery industry as a sub-sector of the British food industry. Within the European confectionery industry, the UK confectionery industry leads the field and the UK is unlikely to lose its place as the leading consumer of confectionery products. It has been estimated that in the last ten years consumer expenditure on food has increased to double just the expenditure on confectionary has tripled. It has been alter considerably to British economy. This situation clearly shows that if Cadbury has to expand its business, it has to move in the areas like India, China, and East Europe etc. Market of confectionery is growing but in the developed country where market growth has stagnated, companies are trying various strategies like expanding its business in the areas which ultimately providing them proper opportunities to grow. Cadbury have 8 major competitors but one of the major competitors has merged with it and provided strategic mileage t o the company. This market research has shown the style of change as well as the direction of progress for Cadbury. It should know its competitors, which are mainly Mass Inc, Hearshey Food Corporation, Nestle SA, Ferrere etc. Most of the companies have similar types of distribution channel and developing new-fashioned product range. Looking at the market situation it has been very obvious that confectionary market has the potential to grow and at the same time companies also have motivation and zeal to move ahead.2.