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Dairy Milk

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Dairy Milk In France
A marketing investigation of the situational environment
The Company
Cadbury Schweppes, a UK based chocolate company, is the world’s fourth biggest supplier of chocolate and sugar confectionery. The group’s strategy is to increase profitability, brand strength and volume on a global basis from its two streams – beverages and confectionery. One of its products, Dairy Milk was introduced in 1905. 95 years later, Dairy Milk is the leader in chocolate bar products and the company’s major source of revenue. Sales from Cadbury’s Dairy Milk alone are estimated at over £135 million for 1995. Cadbury considers its success is based on three factors: quality, value for money and good advertising.
Issue
Cadbury Schweppes already has manufacturing plants in 25 countries and sales in further 165 countries. Recently, it is planning to enter the French market with its Dairy Milk product with either of these two methods – 1. As a subsidiary product
Cadbury already has production facilities in France in the form of its subsidiary, Chocolate Poulain. The company can use this subsidiary to produce Dairy Milk as well. However, Chocolate Poulain is already producing at near full capacity and changes in production due to Dairy Milk’s introduction will not only affect the sales of Chocolate Poulain, but the whole machines need to be recalibrated. 2. By exporting the product
Exporting Dairy Milk to France is also an option since the French market is very close to UK and Cadbury already exports Cadbury Fingers to France. However, the French chocolate industry is dominated by multinational foreign owned groups such as Nestle Rowntree, Lindt and Sprungli, Kraft and General foods, and Mars Alimentraire SA, which all are subsidiaries of foreign groups. Simply exporting Dairy Milk may be insufficient to tackle competition from these leading enterprises.

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