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Extending Plc

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Submitted By simar9711
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CADBURY V-5

9/8/05

1:38 PM

Page 1

Extending the Product Life cycle through Repositioning

Overview
This study looks:
◗ The Cadbury Snack range
◗ The product life cycle
◗ Repositioning as a strategy for maturity

introduction
Cadbury Ireland is a subsidiary of Cadbury-Schweppes plc, a global leader in the manufacture of confectionery and beverage products. Cadbury Ireland was set up in 1932 and today has three production plants, in Coolock and Dun
Laoghaire in Dublin and Rathmore, Co. Kerry. More than
200 products are exported from Ireland to 30 countries around the world, contributing over €110m to Irish trade.
The distinctive taste of Cadbury Ireland’s products is due to the use of local ingredients and the company is one of the largest users of indigenous Irish materials.

The Product
Life Cycle concept
The product life cycle model helps marketers identify the different stages that the sales and profits of a product go through during the course of its lifetime. There are five stages to the product life cycle: introduction, growth, maturity, saturation and decline.

Cadbury Snack
The Cadbury Snack range was launched in the 1950s in
Ireland. The range consists of three main products:





Snack Wafer in distinctive pink packaging
Snack Shortcake in distinctive yellow packaging
Snack Sandwich in distinctive purple packaging

The Snack range is the third biggest confectionery brand in Ireland accounting for over €22m of Cadbury retail sales. The fact that the Snack range still commands such a strong market presence over 50 years later is testament to the strong management both of the brand itself and its product life cycle.

SALES

The Product Life Cycle Model

Introduction Growth

Maturity Saturation Decline

TIME

1. Introduction: Sales are slow as the product is not yet known. Costs are high

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