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Pestel Confectionary Industry and Implications

Autor:   •  March 8, 2011  •  Research Paper  •  896 Words (4 Pages)  •  3,808 Views

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An external environment can be described as, ‘all outside factors that may affect an

organization' (Cliffsnotes, 2007).

One key change occurring in the external environment in the UK for the confectionary

industry is the adapted view of confectionary as a whole. Socially we are now faced with the

fact the obesity is a serious issue and with 1 in 3 adults predicted to be overweight by 2012

(Privatehealth,2009), more and more of us are looking for healthier alternatives for our

everyday habits. Currently, the confectionary industry is trying to fill the niche in the market,

by trying to introduce ‘low calorie' and smaller bars which are more appropriate for the

healthy ‘snacker' as part of a balanced diet. If we look at Cadbury's, one of the leading

confectioner's, it is visible that this external factor is shaping their marketing strategies and

future company developments.

Cadbury wants to put 66 per cent more money into the "lite sweets" market by 2009,

increasing spending from £78 million to £126 million on artificial sweeteners, flavourings and

the reformulation of existing products into a low-calorie model. (Times, 2007)

Product

With healthy eating and weight issues being the key issue from the external environment, a

mainline company such as Cadbury would need to avert from it's brand image of ‘luxury

chocolate' and entice more consumers buy appealing to a wider market. Price however is an

underlying factor which is a make or break decision for attracting the right customers.

According to Mintel (2007) increasingly more of us are willing to pay the increased amounts

to be guaranteed a product which didn't contain artificial additives, along with an over 6.3%

increase between 2003-2007, of people who would pay more for organic food.

This major change of lifestyle opinion could have strong implications to Cadbury's as a

whole. Traditional they have not been put into the market for there healthy or organic

ingredients so with a brand image not in their favour their

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