CADBURY

Cadbury - Understanding Customers Relationship



Cadbury - Understanding Customers Relationship

Introduction

Chocolate is extremely famous for the different purposes like giving gifts, cooking, and for individual consumption. Because of its demand small businesses are focusing on rendering the items that are made up of chocolates. In 2010, there were many trends that derived the chocolate industry to grow (Wright and Elenkov, 2002, pp. 599). One of the trends was product innovation, according to research last year the product innovation in the chocolate industry has increased by 16%. The latest study has shown that females eat more chocolate than males (Cadbury, 2010, pp. 359). Around 91% of the females consume the products that are made up of chocolates, and 81% males consume chocolate products. The rise in the disposable incomes and changing of the tastes leads to the growth in the chocolate industry (Rugman and Hodgetts 2008, 167). In the recession period, the sweets and confectionery items remain in growth and high demands. Although, it is a luxury item but it is considered as an affordable luxury (Moriarty and Kosnik 1989, 7).

The UK market for chocolate and sugar confectionery is mature, growing on average by 2% per annum from 2000 to 2009, and is expected to be worth £8.8 billion in 2010. Chocolate and sugar confectionery products are usually ready to made for consumption. This is why households represent the biggest buying group, accounting for 77% of the market's size in 2009 (Cadbury, 2010, pp. 359). Another major buyer is B2B, which includes the retail trade and restaurants and bars, with each accounting for 3-4% of total sales in 2009. The bakery products industry's expenditure has increased the most, more than doubling over the 2000-2009 period.

Local producers grew at a slower rate than the overall market, expanding by just 13% over the 2000-2009 periods (Wright and Elenkov, 2002, pp. 599). The chocolate and sugar confectionery industry is divided into two sectors - sugar confectionery and chocolate confectionery (Moriarty and Kosnik 1989, 7). The latter expanded by 16% over the 2000-2009 period and captured two percentage points share of turnover from sugar confectionery. This may be due to changing consumer behaviour and marketing by chocolate confectionery producers. Buyers are more and more interested in natural confectionery, which explains why marketing emphasises the naturalness and quality of chocolate to encourage demand for the products (Cadbury, 2010, pp. 359).

Imports play an important role in the UK's chocolate and sugar confectionery industry. Imports accounted for 32% of the total market in 2009, with expectations of a one percentage point increase in 2010. Over the review period, imports grew 130% (Wright and Elenkov, 2002, pp. 599). The main imported product is filled chocolate, followed by gums, fruit jellies and fruit pastilles, as well as cocoa butter, fat and oil. The leading import partners are the Netherlands, Germany, France and Belgium, with a combined share of around 50% of total imports in 2009. However, Eastern and Central European countries gained importance during the review period, due to their ...