British expatriates living in the US frequently ask friends and relatives visiti

Question

British expatriates living in the US frequently ask friends and relatives visiting from the UK to bring with them bars of Cadbury chocolate on the basis that the Cadbury chocolate available in the US (manufactured under license by Hershey ’s) is inferior to “the real thing.” Should Mondelez International (formerly Kraft Foods, which acquired Cadbury in 2010) continue Cadbury ’s licensing agreement with Hershey or should it seek to supply the US market itself, either by export from the UK or by establishing manufacturing facilities in the US?

Explanation / Answer

According to me, Mondelez international should not continue with Hershey's.

Below are the reasons for Mondelez to establish a manufacturing facilities in US:

Quality being a major factor for any product's success Mondelez should not continue with the inferior goods from Hershey's. instead should look into establishing factory in the US itself.

Experience: Customers experience on tasting the real product would have lost by Hersheys producing the inferior ones. Now to bring back the original taste Mondelez should start a factory

Market potential: Since the market for chocolates are always high in the US, Mondelez should used this opportunity to establish itself.

References: Cadbury's has been a big success in other countries where Mondelez has setup its own factories. Hence it can take a feedback from them and also start in US

Originality: No product in the market would survive if it does not maintain its originality.

Cost: Instead of importing setting up a factory would be most cost effective one.

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