1. Situation Analysis
a. SWOT Analysis
To launch the Cadbury within the current portfolio of the company into Turkey, the SWOT analysis is conducted to identify the internal strengths and weaknesses of the company in Turkey, and external opportunities and threats.
Strength:Chocolate market in Turkey is not wide spread, as chocolate brand manufacturers do not have access to developing markets. Cadbury, on the other hand, has access to established distribution networks in the developing markets (Bradley, 2008). In Turkey, Cadbury possesses large market share due to increased sale. Moreover, Cadbury also offers other brands besides chocolates such as gums while Cadbury also possesses large share of increased gum and chocolate market.
Weaknesses:One of the significant weaknesses of the Cadbury is that it only targets children and limited target market segmentation mitigates the opportunity for the brand to increase its markets. However, Cadbury has always pursued different positioning in the global market but in Turkey, its positioning strategy is limited that may cause the brand to lower sale rate. The marketing strategy of the Cadbury lacks the hostile approach in Turkey while other local brands who are likely to be competitor of the Cadbury employ hostile approach in their marketing strategic plan (Gillespie et al., 2010). Order assignment writing services.
Opportunities:The most considerable opportunity that Cadbury possesses in Turkey is associated with its distribution networks. The company has access to large scale of area through which it can make the availability of its products and service possible. The Cadbury has opportunity to develop packaging of its products rather than outsourcing. The advantage of in-house packaging is that in Turkey labor is cheaper than outsources organizations. In-house packing would further help the brand to use the packaging as effective source of marketing the products, because historically Cadbury has used its packaging as part of marketing campaign (Bradley, 2008).
Threats: Cadbury is mainly focused on its international operations around the world but there is lack of strong integration among domestic operations that might cause weak appearance in the local market of Turkey (Gillespie et al., 2010). Increased expansion of the Cadbury brand and production of the products in different part of the world has led to change in the taste of the products. Moreover, local brands are aware of the taste of local people, and there is lack of marketing research about taste of Turkish people (Bradley, 2008).
b. PESTEL Analysis
Any sort of modification in laws and regulations and most significantly concerning international trade of Turkey could influence Cadbury greatly. Cadbury is required to be fully aware of the Food Safety Act and it needs to be ensuring that neither of its companies are violating laws in production of Turkey for instance, employing children, and paying minimum wages. In case, if the Cadbury were observed in any violation of production laws, then scandals and lawsuits would greatly affect the market position of Cadbury in Turkey. Moreover, the political decisions by Cadbury can influence Cadbury in both ways negatively and positively. It can be said that, increases in taxes reduces the consumption by the people in Turkey and the sales would ultimately decline (Needle 2010).
The global economy is relatively at better position, which would support the launch of existing brand of Cadbury in Turkey. The launch of Cadbury in Turkey would be encouraged by high consumer spending and lower rates of interests. However, if the interest rates increase in Turkey, the Cadbury would not be willing to borrow sufficient amount for expansion. Therefore, the increased interest rates will also cause the consumers to remain under pressure due to the loans and minimum disposable income for purchasing luxurious products. Moreover, the confectionary market is expanding in Turkey with massive and huge sales along with various unrevealed segments. Additionally, in case, if the minimum wage is brought down in Turkey, the Cadbury would be affected more adversely and it would mean low sales from consumers (Needle 2010).
Numerous people in Turkey strive to consume healthy food and reduce spending on confectionary goods and soft drinks. The reason is that the trend of skinny being beautiful is observed among the people of Turkey. However, public votes for launch of Cadbury in Turkey are high and no major concerns are observed to stop the consumption of Cadbury products by people of Turkey. Mostly people in Turkey are health conscious and they would read the contents of ingredients on the pack of Cadbury product (Needle 2010).
The production of Cadbury is at greater extent due to higher and modern technological innovations, which enabled the factories of Cadbury to produce highest quality of mass production (Needle 2010).
c. Internal Analysis
The core competencies of Cadbury include various factors responsible for its success and failures. However, Cadbury possess approximately sixty thousand employees across the globe with approximately ten billion pounds of market capital. It is obvious that Cadbury is renowned as the most remarkable brand among the people disregarding the class or age. The reason behind such popularity among people is that Cadbury is affordable and possess contemporary taste with huge selection of products. Moreover, Cadbury possess all time favorite snacks that are irresistible for the people and it aims to grow the value for shareholders over the long-term. The company is struggling to introduce innovative products to boost the sales along with the observation of changing tastes and behaviors of the people (Bradley 2011).
The factors for failure of Cadbury include the production of various products in the United Kingdom. Moreover, the company requires striving hard for running the organization in most effective, efficient, and organized manner. The organization is the market leader in confectionary industry across the globe. It has relatively higher prices in comparison to its competitors in the market and therefore, the transportation costs are massively huge because of the sizes of companies. The factors of successes and failures needed consideration by Cadbury to launch the existing brand in the market of Turkey. Transportation would affect the sales of Cadbury products in the market of Turkey and the interest rates would affect the consumption of people. However, the people of Turkey would most likely consume the products of Cadbury due to its highest quality and huge range of products.