Cadbury Schweppes, the largest confectioner in the world, is cutting 15% of its staff. This move comes only months after the company claimed it was planning to invest in its operations to drive sales.

Cadbury is also likely to sell of the Schweppes drinks side of the business as part of ongoing plans to split the company in two.

In Europe last year, Cadbury's finances were hit hard by poor sales and a costly salmonella scare that required the company to recall a million chocolate bards in the UK, allegedly costing it £30m.

Can the brand retain its position as the globe's biggest confectioner? Is Cadbury in tune with modern concerns about obesity and what contemporary consumers desire from brands in its sector? Maeve Hosea chews the fat with industry pundits and consumers.

William Grobel is a consultant at brand valuation consultancy Intangible Business
Cadbury has four key challenges. Firstly, growth areas are organic, premium, ethical practices, nutritional labeling, eco-friendly packaging and healthy products - Cadbury is known for none of these. Secondly, Cadbury's portfolio is homogenously positioned in the mid market. Thirdly, new competition from the likes of Hotel Chocolat and Godiva is adding to pressure from other confectionery stalwarts. And then there are the challenges of its own making such as the Salmonella saga and ongoing criminal prosecution.

Despite this, Cadbury is one of the most loved brands, with a rich heritage, awareness most only dream of and a broad range of established brands. It also has available resource, extensive international distribution and the internal capability to launch new products, as proven by Snaps.

Fortunately, Cadbury appears to have recognised its challenges: job cuts will stream-line operations and reduce overheads; the extra £48m in R&D will stimulate innovation; there are plans for more nutritional information, ethical sourcing and a Dairy Milk Lite; and Cadbury's separation from the drinks division will increase management focus.

Additionally, Cadbury should develop customer relationships with a loyalty/tasting club and move out of the comfortable middle ground, segmenting the market with a Cadbury ‘Finest' range, à la Tesco, ticking the premium, ethical and organic boxes - principles which should also underpin its existing portfolio which also needs attention. This new positioning should be the focus of communication, making Cadbury known for quality chocolate, not for sponsoring Coronation Street.