PEST and Competitive Analysis Faced by Confectionery Organizations
This report defines the PEST and competitive analysis facing by
confectionery organisations. The international organisation’s Cadbury
and Nestle are the organisations where the leaders of confectionery
food. This report will discuss the strategy using by these two
companies and their mission, what are their objectives and how can
they achieve their goal?
Introduction
The UK confectionery market forms part of the food industry and was
valued at £5.54bn 2001. Sales have increased over a number of years.
Although not an essential purchase, confectionery is bought by the
majority of the population. Changing eating habits have led to
increased levels of snacking and grazing and, as a highly accessible
and desirable food, confectionery has been able to capitalise on this
trend. There are two main sectors in the market — chocolate
confectionery and sugar confectionery.
The UK market is relatively mature. As a consequence, there is little
scope for market growth. The predominant trend among the leading
companies is to expand through brand extensions rather than new
product offers. Confectionery is an impulse market, which means that
strong brand identities are of key importance. Creating new products
by extending established brands carries lower risks than launching new
ones, because the products have a head start in the market. Limited
editions, where items are offered in new variants for short periods of
time, are also favoured. Although this type of activity can maintain
interest in the market, the actual growth potential is limited.
Sectors that have expanded s...
... middle of paper ...
...performance. The Company's priority
will be to bring the best and most relevant products to people,
wherever they are, whatever their needs, throughout their lives.
References
Books
Hawkins, Del I, at. A1, (1998) London:
Consumer Behaviour, building Business Strategy, Ed 7th McGraw-Hill
Schiffman, et.al, (2000): London: Consumer Behaviour, Ed 7th
Prentice-Hall
G A Cole (1996): Management Theory and Practice, Ed 5th
Edexcel HND Business Course Book (2000): Business Strategy
Journal
Arnould, Eric J, and Scott Linda M,
“Consumer Resistance to, and Acceptance of, Innovative”, Advances in
Consumer Research, 1999, Volume 26.p.218-223
Internet
Http://www.nestle.com
Http://www.yahoo.com
Http://www.cadbury.com
Http://zerlina.emeraldinsight.com
Http://www.google.com
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