Confectionery Industry Analysis for Kraft-Cadbury

PRE-ACQUISITION DUE DILLIGENCE INDUSTRY ATTRACTIVENESS The following data relate to the mankind confectionery market ( IN BILLIONS) YEAR| 2006| 2007| | 2008| | 2009| | 2010| | 2011| MARKET ho none| 76299.7| 85474.8| | 93287.6| | 89619.1| | 94793.2| | 102334.9| MARKET VALUE CAGR 6% CONSUMPTION CAGR 4.8% * Chocolate is the no. 1 impulse buy in many countries including India * The ball-shaped chocolate confectionary market till around 2008 was dominated by 9 multinationals namely Cadbury, Ferrero, Hershey, Kraft, Leaf, Mars, come on, Warner-Lambert, Wrigley 2009 data Company| | Net Sales in billions| | Number of employees| | Number of factories around the world| MARS Inc| | $16.50 | | 65000| | 1353| Nestle| | $11.39| | 283000| | 4563| Ferrero Group | | $8.99| | 21600| | 18| Cadbury| | $8.81| | 47000| | 64| Kraft foods | | $8.

83| | 98000| | 1683| PORTERS FIVE FORCES MODEL Using Porters Five Forces Model, a structural analysis of the industry shows: * The threat of entry: utter * High Product differentiation * High Economies of scale * Advertising necessary for stain awareness * Access to distribution channels: concentrated retail supermarket; * groovy requirements: High capital investments in yield technology and write out chain technology * Cost advantages independent of size- Experience in production and distribution of major operators. * Threat of substitutes: MODERATE/HIGH * Growth in light food snacks, introduces possibilities: healthier snacks; fun fruit box; savoury snacks. * Supplier power: MODERATE * Milk, sugar subject to topical anesthetic country prices, maybe inflated but stable; * coffee * Concentrated source of supply for Cocoa * Cocoa product singular * Subject to price fluctuations, but larger manufacturers can manipulate against this by backward integration (Like... If you want to get a full essay, order it on our website: Orderessay

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