why the market for chocolate confectionery is dominated by large multinational companies.?

Question

like nestle, cadburys and mars. etc.

Answer 1

Because chocolate is eaten mainly by women and children.

These two groups are more susceptible to Advertising (why else do they pay through the nose for 'fashion' items ?) - and it is only the big companies can afford expensive TV ads.

Every so often an attempt is made to "target" men = however in most cases the adverts show men buying chocolate for their (female) parnters !

Answer 2

These were some of the earliest chocilate producers and they are very good at confectionery,

Cadburys is a great example.

Most confectioners and food producers like Cadburys were usually Quakers (relgious and string work ethic) and looked for a new twist on existing products or new products to market for business simply becaue they were business minded.

Chocolate came to the U.K. during the Victorian era in the form of raw cocoa and was primarily used as medicine and hot chocolate.

There was one or two places where you could go to have hot chocolate when Jacob Cadbury started making processes to
sell this as choclate and then choclate bars for consumption and this was a very original idea.

Jacob Cadbury worked in a workshop developing and trying to refine milk chocolate he is responsible for mastering milk chocolate in this country first although the Swiss had made progress in this area and he had used Swiss equipment in his production.

Then it was a process of selling the new chocolate which it did and the company began to grow and along the way new ingredients were added to the variety to bring about the chocolate that we see today.

Some of todays chocolates that you see on the shelf are over 100 years old and there have been many presentations in boxes and wrappings over the years e.g. Dairy Milk, Roses,
The company itself os over 150 years old. They dominate the market because they were the first in the market to successfully produce some of the best choclate.

Today the r & d costs of deisgning and marketing a new chocolate bar is so high and has to be seriously good to compete. Even the americans cannot compete with out chocolate and u.k. chocolate is regarded by many as the best in the world.

Food wise the major innovations in the market and then the variety form that came in the 1800 like cakes, choclates and sauces and spreads. Newer entrants in the last century have been food substitutes e.g. for vegetarians, gluten free, gm free, organic produce.

Answer 3

The three main companies have been very aggressive in taking market share. They employ very expensive marketing people to penetrate and dominate the market. As a result the small confectionery manufactures have little or no chance to gain a footing in there market.

Answer 4

For the same reason that many other sectors are too. Think about car manufacturing, software publishing, cosmetics....

Companies buy other companies to increase their market share, imcrease turnover, get into new sectors, expand their product portfolio, increase their purchasing parity and reduce overheads. The confectionery market is not peculiar in the extent of its consolidation.

Answer 5

There are some smaller companies like Thorntons for example, also some small Swiss and Belgian firms making specialised confectionery.The tendency has been for reasonably successful small companies to be taken over by one of the big boys.The owners of the smaller company will benefit considerably,financially from the takeovers.,they would make as much in a short time by selling that would take several years of trading and profit to make the same amount,so you can't blame them for selling their companies.

Answer 6

lots of people have mentioned mass tv advertising etc on here, but apart from the maltesers add where she lifts her top up i can't think of any other chocolate adds currently running, and i have the tv on a fair bit!
i love chocolate and tend to stick to the same things - i absolutely love crunching the shells off galaxy minstrels!
i do like finer chocolate like lindt lindor (the red wrapped balls which melt in your mouth) but they are just so expensive! so back to the ripple and minstrels for me i'm afraid! lol

Answer 7

because they have the money to mass procuce their goods and to advertise thus gaining more capital and having more money to mass produce their goods and on and on, because they can mass produce their goods it is cheaper for the consumer to buy and therefore they sell more increasing their capital and having more money........ e.t.c.