Essay About Pestel Confectionary Industry And Healthier Alternatives

Pestel Confectionary Industry and Implications
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 Cadburys, one of the leading
confectioners, 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 its 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 didnt 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 Cadburys 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