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SWOT Analysis of Cadbury

Last Updated: Apr 9, 2023 by Thomas Bush Filed Under: SWOT Analysis , SWOT Examples

Cadbury is one of the world’s best-recognized confectionery brands. With a wide range of chocolate bars in its product range and a geographical presence spanning Europe, Australasia, and North America, the company is extremely well established. As a result, you might think Cadbury is here to stay for good but is it?

In this article, we’ll use SWOT analysis — which reviews the Strengths, Weaknesses, Opportunities, and Threats affecting a business — to dive into the inner-workings of Cadbury. With that, we’ll be able to better predict the future of this popular sweet goods brand!

Strengths of Cadbury

Here are Cadbury’s Strengths:

Strong Brand

As one of the world’s leading confectionery companies, Cadbury has an extremely powerful brand. Consumers across the globe have come to associate its name with a specific taste, meaning that they know exactly what to expect when picking a Cadbury product off the shelves. The value of a strong brand cannot be understated, especially in a market where quality is so important. Importantly, the Cadbury product line also features products with their own equally established brands such as Oreo .

Global Presence

Cadbury’s powerful brand and well-established operations are not just limited to the United Kingdom. The confectionery giant operates in over 50 countries with a universally positive reputation, as shown in the PEST analysis of Cadbury . This global presence not only drives additional revenue but also acts as an insurance policy for the company: if one country were to implement unfavorable regulation, Cadbury would still be able to drive revenue across the remaining markets.

Wealthy Parent Company

Cadbury is wholly owned by Mondelez International (better known by its former name, Kraft Foods Inc) — an international food giant. Featuring numerous other brands with household names, Mondelez International drives over $26 billion a year in revenue. These impressive revenue statistics ultimately result in large profits, which can be reinvested into any of the company’s subsidiaries. As a result, Cadbury has a significant bankroll behind it in the face of any adversity.

Weaknesses of Cadbury

Here are Cadbury’s Weaknesses:

Limited Product Range

Cadbury has been repeatedly criticized by business analysts for its limited product range. While the brand offers a variety of confectionery products, it has not expanded into developing or manufacturing products of other kinds (food or otherwise). As a result, Cadbury is highly exposed to the confectionery market in times both good and bad. In the face of growing health consciousness, this may have serious consequences (discussed further in the Threats section of this analysis).

Product Recalls

Another weakness Cadbury has battled is that of product recalls. In recent years, the company has had to recall a portion of its confectionery products on numerous occasions. These recalls have had varying causes: in one case, products containing nut residues were labeled allergen-free, while in another case, products were believed to have contained harmful bacteria. Product recalls of this nature can easily tarnish a brand’s reputation.

Lack of US Rights

For a Western confectionery company, you would think the United States must be one of Cadbury’s biggest markets. However, in 1988, The Hershey Company acquired the rights to produce Cadbury chocolate in the United States. Numerous consumers have complained about this, claiming that original Cadbury’s products taste significantly different. In any case, this lack of rights means Cadbury will not be able to expand its core chocolate range in the United States.

Opportunities for Cadbury

Here are Cadbury’s Opportunities:

Emerging Markets

Perhaps Cadbury’s biggest Opportunity is that of emerging markets. Historically, regions such as Far East Asia and Africa have not been significant consumers of conventional, Western confectionery — as offered by Cadbury. However, with the widespread effects of globalization and growing consumer incomes, it’s more and more likely that Western food brands will be able to expand into these previously untapped markets. Of course, this presents an additional revenue stream.

Product Range Expansion

As discussed earlier, one of Cadbury’s potential Weaknesses is its limited product range. This means that one lucrative opportunity for the multinational confectionery might be to expand its product range. Whether this means introducing new confectionery products or — preferably — experimenting with other markets, it will help Cadbury diversify its current market standings and thus prevent a number of Threats while simultaneously driving additional revenue.

Threats for Cadbury

Here are Cadbury’s Threats:

A number of countries have proposed implementing a sugar tax — an additional charge on sugary products designed to curb consumption. The idea has gained significant traction in some European countries; most notably, Norway has had a longstanding sugar tax which encourages individuals to buy confectionery abroad or in duty-free zones. If such a sugar tax were to be implemented in new areas, it would increase the end cost of confectionery for consumers, thereby thwarting sales volume and thus revenue for Cadbury.

Health Consciousness

Perhaps the scariest threat for a confectionery company like Cadbury is that of consumers’ growing health consciousness. With the rapid advance of science, consumers have recently come to learn a great deal about what it means to be healthy (or unhealthy). Unfortunately, numerous studies have proven the negative health effects of sweet, processed foods such as chocolate. As consumer preferences shift due to health consciousness, this might mean a serious decline in revenue for Cadbury.

SWOT Analysis of Cadbury: Final Thoughts

Cadbury is no small fish in the confectionery world. However, like all companies, there are a significant number of Weaknesses and Threats to balance out the many Strengths and Opportunities it is facing.

Cadbury’s Strengths include its powerful brand, global presence, and wealthy parent company. On the other hand, Weaknesses included a product range confined to the confectionery space, numerous product recalls, and a lack of US rights. Looking towards the future, Opportunities include emerging markets such as Asia and Africa as well as expansion into new products. Threats mainly relate to the company’s dependence on the confectionery market, and include both sugar taxes and consumers’ growing health consciousness.

Overall, it seems that Cadbury’s greatest issue is its limited product range. By expanding into new products (such as healthy confectionery alternatives), it should be able to maintain its strong market position and continue driving impressive profits.

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Cadbury SWOT Analysis (2024)

Company: Cadbury CEO: Anand Kripalu Founder: John Cadbury Year founded: 1824 Headquarter: Uxbridge, United Kingdom Employees (2022): 140,000 Type: Public Ticker Symbol:  Revenue (2021): 572.80 Rupees Profit | Net income (2021): 40.7 Trillion

Products & Services: Cadbury Dairy Milk | 5-star | Perk | Gems | Eclairs | Oreo | Bournvita  Competitors: Mars/Wrigley’s | Hershey’s | Nestle

Fun Fact: John Cadbury began Cadbury as a grocery store in Birmingham where he would make drinking chocolate by hand and sell it as a health drink.

Table of Contents

Cadbury’s Strengths

1. A strong brand name – Cadbury is well known globally as one of the leading confectionery companies. Its brand is extremely powerful, and users around the world associate it with a specific taste. They know what to look forward to as they pick the product from the shelves. A global study found that Cadbury Dairy Milk, one of its products, is the most popular chocolate bar worldwide . It came up as the leading product in 78 countries, including India, South Africa, and United Arab Emirates.

2. Available in many countries across the world – The company does not just have a powerful brand and strong operations in the United Kingdom alone. As a leader in confectionery, it runs operations in more than 70 countries and has been universally positively received. The global presence that Cadbury enjoy drives its revenue and also functions as insurance for the company. In the event one company comes up with unfavorable regulations, Cadbury would still remain operational in the other markets.

3. It comes from a wealthy parent company – Mondelez International, formerly called Kraft Foods Inc, which owns Cadbury . The international food giant has numerous other household brands under its wings, with revenue of 2059 billion Rupees . Thanks to these impressive revenue statistics, the company ends up getting large profits that are re-invested in subsidiaries. Therefore, Cadbury is sure of a massive bankroll in case it faces adversity.

4. Successful marketing and advertising campaigns – The company is known for running some of the best marketing campaigns . It has managed to capitalize on vital events and made the most out of them. Due to these campaigns, the average consumer finds it more natural to choose some of its products when gifting loved ones .

5. Premium quality brand – Cadbury presents itself as a premium brand, ensuring that consumers trust it. It is renowned as a high-quality brand that is moderately priced . Its products are not just releasing sweet chocolate. Instead, they are quality-driven and consumer-oriented.

6. Strong link with Indian customers – Brands operating globally always salivate to make a positive penetration through the Indian market. Cadbury is among the few that have successfully done so. That’s because it capitalizes on the important aspects of Indian culture, which are love, home, and friends. Thanks to this link in the Indian market, Cadbury manages to get record-high sales in India, further bolstering its financials .

7. Enter new markets – Cadbury has an effective creative team that plays a central role in helping them enter new markets. The team comes up with an impressive strategy that helps it seamlessly integrate into new countries.

8. Revamped website – Cadbury’s official website speaks of creativity and gets clicks from all over the world. The well-functioning and engaging website helps keep consumers remembering about the company’s products. More importantly, the websites are market-specific to make site visitors feel they get personalized attention.

Cadbury’s Weaknesses

1. Limited product range – In as much as Cadbury has a global presence, analysts have always criticized it for having a limited product range. The company has so far not expanded into developing and manufacturing other types of products, whether they are food-wise or any other type. Due to this, Cadbury faces a big exposure to the market when things are going well and badly. As the world starts paying more attention to one’s general health, this can be a major problem for the company.

2. Advertising controversies – Even though Cadbury runs one of the best marketing and advertising campaigns, it sometimes finds itself on the wrong side of consumers. As a household product, the company faces significant risks of criticism when advertising. For instance, its controversial worms advertisement made international news.

3. Does not have US rights – Given that Cadbury is a western confectionery brand, one can assume that the US stands out as its biggest market. However, you’d be forgiven for thinking so. The rights to produce Cadbury chocolate in the United States lies with The Hershey Company . That has led to complaints from some customers who argue that the taste differs from the original Cadbury. Additionally, this lack of rights means Cadbury cannot expand its vital chocolate products in the United States.

4. A couple of product recalls – Cadbury has had a few instances where it has recalled some of its confectionery products. The recalls come in different ways, including labeling nut residues as allergen-free or the discovery that some of its products have harmful bacteria. The few products recalls negatively affect the company’s brand name.

Cadbury’s Opportunities

1. Fresh tastes – An opportunity exists for Cadbury to come up with fresh tastes that will take the company a notch higher. Currently, it is focused on customers that have sweet tooth. Mostly these customers eat chocolate bars and small chocolates. That means the introduction of new tastes and new flavors gives Cadbury the opportunity to deliver to another market segment regularly.

2. Rural markets – Cadbury appears to focus largely on urban markets based on the way it has been marketing and distributing its products. Coming up with strategies for penetrating the rural market can be a great opportunity for the company.

Cadbury’s threats & controversies

1. Increasing health campaigns – Key stakeholders are running global advertisements advising consumers on the need to remain health-conscious. That is a major threat to this confectionery because its products can easily be considered not healthy for the average consumer. No matter what Cadbury says about this, studies exist that suggest sweets have a negative effect on one’s health. The shift in consumers becoming more health conscious translates to a decline in sales for Cadbury.

2. Heavy taxation – Some countries are on a mission to reduce the consumption of sugar products. They do this through heavy taxation, including the possibility of introducing a sugar tax. Norway already does this . Introducing such taxes in newer areas leads to high costs for consumers, cutting down Cadbury sales and revenue.

 References & more information

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AN APPLICATION OF SWOT ANALYSIS AS A STRATEGIC PLANNING TOOL: A CASE OF CADBURY, INC. IN CONFECTIONERY INDUSTRY

Duygu Hıdıroğlu

Bu çalışma, Cadbury A.Ş. ve şekerleme endüstrisi analizlerini kapsamaktadır. Çalışma, SWOT analizi yardımıyla Cadbury A.Ş.’nin içinde bulunduğu sektörü ve işletme düzeyinde stratejileri etkileyen dış ve iç kuvvetleri analiz etmektedir. Çevrenin analizi ve şirketin pazarlama planı tasarlanırken durumsal faktörler göz önünde bulundurulduğu gözlenmiştir. Cadbury A.Ş.’nin örgütsel bağlamda sahip olduğu güçlü yönlerden faydalanırken; zayıf yönlerin olumsuz etkilerini en aza indirgemeye yönelik çeşitli stratejiler kurduğu görülmüştür. Şirketin bu stratejileri, pazar fırsatlarından yararlanmasına ve herhangi bir tehditten kaçınmasına fayda sağlayacağı için oldukça önemlidir. Cadbury A.Ş.’nin ürünleri yüksek fiyatla ithal edilen atıştırmalık ve yiyeceklere kıyasla daha uygun fiyatlı ve eşit derecede rekabetçi bir alternatiftir. Cadbury A.Ş.’nin şirket stratejilerinin aynı sektörde yer alan diğer şirketlerden daha üstün ve başarılı olduğu sonucuna ulaşılmıştır.

Çalışma, şirketi etkileyen dış güçleri, bulunduğu sektörü ve şirketin çevresini analiz etmektedir. Böylelikle şekerleme endüstrisinin geleceği hakkında gerçekçi öngörüler sunulmakta ve sektörün dinamikleri hakkında önemli bilgilere ulaşılmaktadır. Bu çalışma gelecekteki araştırmalara şekerleme endüstrisindeki firmaların çevresel analizi için önemli alanları vurgulayan kavramsal bir çerçeve sunmaktadır. 

Endüstri , SWOT , İçsel , Dışsal , Analiz

• 1. Ambler, T. (2000). Marketing metrics. Business Strategy Review, 11(2), 59-66.2. Bailey, A. R. (2011). Regulating the supermarket in 1960s Britain: exploring the changing relationship of food manufacturers and retailers through the Cadbury archive.3. Bradley, J. (2011). Cadbury's purple reign: The story behind chocolate's best-loved brand. John Wiley & Sons.4. Business Teacher (BT). (2017). “Strategies for Cadbury Schweppes to Engage Consumers and Promote Its US Retail Channels”. pp.5. www.businessteacher.org.uk5. Collins, D. J., & Rukstad, M. G. (2008). Can you say what your strategy is? Harvard Business Review, 86, 82-88.6. Fitzgerald, R. (1989). Rowntree and Market Strategy, 1897-1939. Business and Economic History, 18, 45-58.7. Fitzgerald, R. (2005). Products, firms and consumption: Cadbury and the development of marketing, 1900–1939. Business History, 47(4), 511-531.8. Fitzgerald, R. (2006). Rowntree and the marketing revolution, 1862-1969. Cambridge University Press.9. Gay, K. (2001). A Boardroom Revolution? The impact of the Cadbury nexus on the work of non‐executive directors of FTSE 350 companies. Corporate Governance: An International Review, 9(3), 152-164.10. Individual Economics. (2013). “Economics Analysis of Cadbury”. http://economics-on-cadbury.blogspot.com/2013/10/economics-analysis-of-cadbury.html11. Insight Community. (2019). “Randall Frost, Cadbury in Foreign Markets”. https://www.insightcommunity.com/case.php?iid=119412. Janczewska, D. (2015). Implementation of Modern Methods of Marketing Analysis in Microenterprise in Confectionery Branch. Przedsiębiorczość i Zarządzanie, 16(12, cz. 3 Marketing w teorii i praktyce), 41-53.13. Jones, G. (2006). Multinational Chocolate: Cadbury Overseas, 1918–39. Reshaping work: the Cadbury experience (Vol. 16). Cambridge University Press.14. Kraft Foods Inc. (2009). “Kraft May Need 850-900p to Swallow Cadbury”. http://www.21food.com/news/detail23688.html15. Krishna Gopalan. (2010). “Strategy In A Sweet Spot”. http://archives.digitaltoday.in/businesstoday/20070506/features3.html16. Market Research.com. (2019). “Market Research for Cadbury Inc.”www.datamonitor.com17. Menrad, K. (2003). Market and marketing of functional food in Europe. Journal of food engineering, 56(2-3), 181-188.18. Mondelez International. (2019). www.cadbury.com , www.cadbury.co.uk19. Neilson, J., & Pritchard, B. (2011). Value chain struggles: Institutions and governance in the plantation districts of South India (Vol. 93). John Wiley & Sons.20. Omran, M., Atrill, P., & Pointon, J. (2002). Shareholders versus stakeholders: corporate mission statements and investor returns. Business Ethics: A European Review, 11(4), 318-326.21. Patnaik, B. C. M., & Sahoo, P. K. (2012). An empirical study on consumer behavior towards Cadbury's India Ltd. and Nestle India Ltd.(A case study of male and female of Cuttack and Bhubaneswar of Odisha). Trans Asian Journal of Marketing & Management Research, 1(1), 1-11.22. Porter, M. E. (2008). The five competitive forces that shape strategy. Harvard business review, 86(1), 25-40.23. Rowlinson, M. (1995). Strategy, structure and culture: Cadbury, divisionalization and merger in the 1960s. Journal of Management Studies, 32(2), 121-140.24. Saunders, J., & Guoqun, F. (1997). Dual branding: how corporate names add value. Journal of product and Brand Management, 6(1), 40-48.25. The Statistics Portal. (2019). www.statista.com26. Webber, M. J. (2009). Chocolate Marketing and Other Aspects of the Confectionery Industry Worldwide. Industrial Chocolate Manufacture and Use:, 636-655.27. Yip, G. S., & Coundouriotis, G. A. (1991). Diagnosing global strategy potential: The world chocolate confectionery industry. Planning Review, 19(1), 4-14.28. Zhang, C. (2001). Global market strategy in the confectionery industry: The case of Hershey foods corporation (No. 1097-2016-88551).29. Zhu, H., Hitt, M. A., & Tihanyi, L. (2006). The Internationalization of SMES in Emerging Economies: Institional Embeddedness and Absorptive Capacities. Journal of Small Business Strategy, 17(2), 1-26.

This paper provides analysis on Cadbury, Inc and confectionery industry . The paper analyzes the external and internal forces affecting the company, the industry it operates and its business level strategies . Considering the situational features such as opportunities and threats when designing the environmental analysis and making realistic marketing plan is very crucial because a company will benefit from its own strengths, eliminate its weaknesses, benefit from environmental opportunities and protect itself from environmental threats. On the simple basis of product quality and taste, Cadbury proves to be superior to other commercially available chocolate even with the seeming similarities in texture.

This paper deals with two main research flows: environmental analysis and situational factors which allows organizations to compose an effective marketing plan. This study provides a framework that implement a common consensus on these research flows by specifiying some important issues for future research and by making effective strategy analysis in the confectionery industry.

Industry , SWOT , Internal , External , Analysis

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Cadbury SWOT Analysis: A Delightfully Sweet Report

The world of candy, confectionary treats, and sweets is big business. Every year, some countries such as the US eat more than 8 pounds of candy per person/per year! At the top of the chocolate manufacturers are Nestle and of course Cadbury. We will take a look at how a Cadbury SWOT analysis will highlight how this British candy company has stayed at the top of the chocolate candy industry for generations and will highlight Cadbury competitors to see how they fare in the competitive business.

Table of Contents

Cadbury is a British confectionery company that was founded by John Cadbury in 1824 in Birmingham, England. Initially, the company was a small grocery store that sold coffee, tea, and drinking chocolate, which was a popular beverage during the time. In 1831, John Cadbury stopped selling other products and focused solely on producing drinking chocolate, which he made by hand using a pestle and mortar. 

In 1847, John’s son Richard took over the business and developed a new way of producing chocolate that made it easier to mix cocoa butter and other ingredients, resulting in a smoother and creamier texture. This led to the creation of the first-ever Cadbury chocolate bar in 1849, which was sold in the form of a cocoa essence.

Throughout the 19th century, Cadbury continued to innovate and expand its range of products, including the production of milk chocolate in 1905, which became incredibly popular. In 1913, Cadbury introduced its famous Dairy Milk chocolate bar, which has become a staple of British confectionery ever since.

Today, Cadbury is one of the largest chocolate producers in the world, with its products sold in over 50 countries. Despite being acquired by the multinational conglomerate parent company Mondelez International , in 2010, the Cadbury brand remains a beloved and iconic part of British culture and confectionery history. In this Cadbury SWOT analysis, we will highlight how its history has made them into the candy giant they are today.

Cadbury Competitors and their Strengths and Weaknesses

Cadbury competitors in the chocolate and confectionery industry include Nestle, Mars, Hershey’s, Ferrero, and Lindt. Cadbury’s strength lies in its long-standing history and reputation as a high-quality British brand, with a strong focus on innovation and the development of new products. Cadbury’s Dairy Milk chocolate has a unique taste that sets it apart from its competitors. However, Cadbury’s weakness lies in its relatively limited product range compared to some of its competitors, who offer a wider variety of confectionery products.

Is Cadbury owned by Hershey?

The rights to produce and sell CADBURY goods in the US were granted to The Hershey Company in 1988. The Hershey plant in Hershey, Pennsylvania, produces Cadbury mini eggs, Cadbury Egg, Cadbury Dairy Milk chocolates, Cadbury Bourneville drinking chocolate, as well as Flake, Wispa, Twirl, and Eclairs chocolates.

SWOT Analysis of Cadbury – At a Glance

Cadbury swot analysis.

A SWOT analysis for Cadbury is a framework used to assess a company’s competitive situation and to create strategic planning. By taking Cadbury strengths, and Cadbury weaknesses of Cadbury threats of Cadbury as well as opportunities of Cadbury into account, we may better gain in-depth knowledge.

Let’s take a look at Cadbury SWOT framework to better understand its competitive position and potential for future growth. Read on to learn more about their Strengths, Weaknesses, Opportunities, and Threats.

Who are Cadbury’s competitors?

Mars, Incorporated : Mars is a multinational confectionery company that produces popular brands such as Mars, Snickers, Twix, and M&M’s. It competes directly with Cadbury in the chocolate segment. Hershey: Many people ask if Cadbury is owned by Hershey?The rights to produce and sell Cadbury products in the US were granted to The Hershey Company in 1988.Although many Hershey products compete with Cadbury including Hershey’s, Reese’s, Kisses, and Twizzlers, among others. While Cadbury has a strong presence in Europe and other regions, Hershey is a major competitor in the United States.

Nestlé : Nestlé is a Swiss multinational food and beverage company that offers a wide range of products, including chocolate and confectionery. Some of its popular chocolate brands include KitKat, Crunch, Aero, and Smarties.

Cadbury SWOT Analysis Strengths

Overall, Cadbury’s strengths in brand reputation, innovation, and product differentiation position it well in the competitive confectionery industry.

Long-standing history:  In this Cadbury SWOT analysis some of its key strengths include its long-standing history and reputation as a high-quality British brand. Cadbury has been producing chocolate for almost 200 years, and this legacy has helped to establish a strong brand identity and loyal customer base.

Unique taste: Many people ask ‘Why does Cadbury taste different in America?” The fat content and amount of cocoa used are the only variations between the US and UK versions. While the fat in US Cadbury bars is made of cocoa butter to comply with FDA regulations, vegetable oils like palm and shea butter are permitted in the UK.

Cadbury manufacturing process : In 1879, Rudolphe Lindt created a method known as “conching” that essentially involves heating milk and cocoa butter to a high temperature and mixing the two together for a few days. While removing the volatile flavors, conching also helps smooth out the chocolate. This is why Cadbury is so creamy!

Focus on innovation: Cadbury is known for its focus on innovation and the development of new products. For example, the introduction of Dairy Milk chocolate in 1905 was a significant innovation that set the company apart from its competitors. This ongoing commitment to innovation has helped Cadbury to stay relevant and competitive in a crowded market.

Cadbury SWOT Analysis Weaknesses

A limited number of products: Product diversification: While Cadbury provides a diverse selection of chocolate goods, their portfolio may be less diverse than some competitors. For example, companies such as Nestlé and Mondelez offer a broader range of confectionery products other than chocolate, such as candies, gum, and other snacks. Cadbury may be more vulnerable to competition in various product categories as a result of this. Geographic presence : Cadbury has a considerable presence in the United Kingdom and other locations, but its global reach may be less than that of other competitors. This could limit its market share in areas where competitors have a larger distribution network.

Brand perception and differentiation: Cadbury has a long history of making high-quality chocolates, but it may find difficulties distinguishing its brand in a competitive market. To differentiate themselves, competitors frequently use inventive marketing methods, unique packaging, and product variations. Cadbury must consistently invest in brand uniqueness in order to keep its competitive advantage. Trends in health and wellness : As consumers place a greater emphasis on health and wellness, there is a greater demand for healthier snacks and lower-sugar options. Cadbury, like other conventional confectionery manufacturers, may experience difficulties responding to changing consumer tastes. Competitors who thrive at providing healthier alternatives or marketing themselves as healthier alternatives could gain a competitive advantage.

Cadbury SWOT Analysis Opportunities:

Brand reputation and heritage : Cadbury has a long history and a strong brand reputation that has been created over many years. This legacy presents an opportunity to capitalize on the company’s history and good associations with quality and taste. Cadbury may continue to emphasize its legacy and distinctive chocolate-making practices to instill nostalgia and trust in customers. Expand product range in a healthier direction: To stay ahead of the competition, Cadbury can concentrate on product innovation and new product development. Cadbury can cater to evolving consumer preferences and attract the attention of chocolate connoisseurs by providing new flavors, textures, and varieties. Cadbury can also investigate healthier alternatives or develop goods that meet special dietary requirements, such as vegan or gluten-free chocolates.

Offer low sugar and fiber-rich products : In addition to plant-based products in a SWOT analysis for Cadbury they have an opportunity to include foods that contain less sugar as well as snacks that have protein or fiber for added health benefits.

Collaborations and Partnerships: In a Cadbury SWOT analysis, collaborating with other companies, particularly those outside of the chocolate business, can assist Cadbury in reaching new consumers and developing innovative product offers. Collaborations can include limited-edition co-branded items, cross-promotions, or collaborative ventures that use both firms’ capabilities and client bases.

Cadbury SWOT Analysis Threats:

Fierce competition: Cadbury also faces threats from its competitors, who are constantly introducing new and innovative products to the market. For example, Nestle has recently launched plant-based alternatives to its popular KitKat chocolate bars, which could potentially cut into Cadbury’s market share if it fail to respond to this trend. Consumer Preferences and Trends: Consumer preferences and trends can change over time, posing a challenge to established companies such as Cadbury. As people become more health-conscious, there may be greater demand for better, lower-sugar options. Cadbury must adapt and develop to meet evolving consumer expectations, offering a varied selection of products that fit a variety of dietary choices and needs.

The rising cost of raw materials: Additionally, the rising cost of raw materials and fluctuating currency exchange rates could pose challenges to Cadbury’s profitability and supply chain operations. Counterfeit Products and Brand Protection: Since Cadbury’s brand and products are so popular, they are vulnerable to counterfeiters and unlicensed imitations. Counterfeit products can harm a brand’s reputation, erode customer trust, and result in financial losses. To tackle this threat, Cadbury must invest in strong trademark protection measures such as anti-counterfeiting technologies and legal enforcement.

Mondelez International, the parent company of Cadbury, positions the brand to compete against its competitors for future growth by focusing on innovation and product development. Mondelez recognizes that the confectionery industry is highly competitive and that consumers are constantly seeking new and exciting products. Here are some other recommendations for Cadbury:

• Product innovation : Cadbury should always innovate to meet changing consumer tastes. Healthy options, reduced-sugar alternatives, and special editions can excite and intrigue consumers.
• Diversification of Product Range: Cadbury is best known for its chocolate, but expanding into sweets, gums, and snacks can help diversify the product range. Cadbury can reach more customers by diversifying.
• Digital Transformation : Use e-commerce and digital technology to improve the customer experience and accessibility. Cadbury can market, engage, and streamline purchases online. Interactive websites, personalized marketing efforts, and smooth online shopping can boost brand loyalty.
• Sustainability : Cadbury should prioritize responsible cocoa procurement, environmental protection, and carbon reduction. Sustainability can appeal to eco-conscious consumers and boost a brand’s reputation.
• Customer Engagement and Brand Building: Cadbury should use branding, narrative, and engaging marketing to connect with customers emotionally. Social media engagement, giveaways, and influencer relationships can build brand loyalty and community.
• Collaborations and Partnerships: Working with popular brands or influencers can help Cadbury reach new audiences and produce distinctive products. Joint marketing initiatives, co-branded limited editions, and cross-promotions thrill consumers.
• International expansion : explore new markets, especially emerging economies with rising consumer markets. Partnerships, acquisitions, or strategic alliances with local companies can utilize existing distribution networks and market experience to expand

Cadbury may improve its competitive position, acquire new customers, and remain a global candy leader by following these suggestions.

FAQs for SWOT Analysis of Cadbury

1. What is the competitive advantage of Cadbury?

Cadbury’s competitive advantage lies in its strong brand reputation, extensive distribution network, diverse product range, and consistent innovation. These factors contribute to its leading position in the confectionery market.

2. What major problem did Cadbury encounter?

Cadbury faced a significant problem in 2006 with a salmonella contamination issue in its products. This led to a massive product recall, negatively impacting its brand reputation and financial performance.

3. What is the SWOT analysis of Cadbury?

Strengths : Strong brand, diverse product portfolio, extensive distribution network. Weaknesses: Dependence on confectionery market, vulnerability to raw material price fluctuations. Opportunities: Expanding into emerging markets, product innovation. Threats: Increasing health consciousness, intense competition.

Cadbury needs to remain agile and responsive to changes in the market and continue to invest in product innovation and development. In this Cadbury SWOT analysis , we’d love to know what you think and if you believe Cadbury competitors can outrank them in the candy world!

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SWOT/PEST (LE) Analysis on Cadburys PLC Report

Introduction, swot analysis of cadbury plc, pest(le) analysis of cadbury plc in the u.k, works cited.

Cadbury is the brand of a reputable confectionary company with a diverse assortment of chocolates, gum and candy. The company’s kernel stretches back to 1824 when the company’s pioneer, John Cadbury opened a chocolate shop in Birmingham (Watson 6). Currently, the company is dominant in the chocolate business and boasts an extended global presence and influence. On May 7, 2008, the American beverage businesses sector and the confectionary sector completed their separation and Cadbury became Cadbury PLC.

SWOT analysis is a calculative strategic technique used in organizational planning to evaluate the Strengths, Weaknesses, Opportunities, and Threats involved in a business project or the business as a whole. SWOT analysis entails the identification of targets of a project or a business venture.

Once identified, the process in achieving the targets is examined together with the interior and peripheral influences that affect the process leading to favorable or unfavorable achievement of the target. In analyzing Cadbury PLC, it is imperative to study the organization’s performance against a similar scale to that of the competition (Leikin 3). The competitors in this case are other confectionary companies like Nestle which have over the years challenged Cadbury PLC.

Strengths Of Cadbury Plc

The first strength Cadbury PLC has is the advantage of numbers considering the organization has business units all over the world. The units are present in Britain, Ireland, Middle East, Africa, north and South America, Europe, Asia and the pacific (King 1). All the units have commercial inclinations as their principle driving force, but the units also do have supply chain and science and technology functions. The interior organization of Cadbury PLC creates room for four corporate functions in all the units.

The functions are human resource & corporate affairs, strategy, information technology, legal and secretariat. This kind of functional structure allows for the business units to focus on commercial programs while aiming at internal growth (Leikin 1). Cadbury PLC also has the advantage of having internationally well known and respected brand names. The goodwill of the brands generates approximately 50% of the organization’s revenue and this implies that the brand bears higher profitability than the confectionary collection.

Weaknesses Of Cadbury Plc

One of the organization’s unyielding weaknesses is the reliance on confectionary market for profitability. Other companies with a similar target market to that of Cadbury PLC for instance Nestle have more diverse products including but not limited to confectionary products, baby foods, and cereals among others (Leikin 1).

Cadbury has also been mainly Europe based for a long time and only recently diversified into massive consumer markets like America. In comparison, other confectionary companies of Cadbury PLC’s caliber have diversified their target markets and can be found in almost all major international consumer markets hence gaining leverage over Cadbury (Rosenfeld 9).

Opportunities

The confectionary market is the fastest growing packed food market with a 5% p.a growth rate meaning Cadbury still has various unexploited markets like China, India and Russia where consumer wealth is increasing directly proportional to the population(Miller 16). There is also increased demand of confectionary products in such growing markets.

The confectionary industry has over the recent years witnessed several successful mergers and acquisitions. Targeted acquisition will increase the market share and product diversification. There is an increased demand for healthier low calories snacks which could lead to new products for instance organic snacks, sugar free snacks or low fat confectionary products crating room for innovation (Miller 1).

There is a rising occurrence of obesity in both adults and children which has led to increased weight watching and need for healthy foods and lifestyle. The social changes in nutrition and lifestyle have definitely affected the demand of Cadbury products (Watson 1). Aggressive competition from other confectionary organizations in developed markets has led to possible price wars between the companies (Leikin 1). The global demand for cost reductions in environment, transport, energy and supply has threatened to incapacitate the operational structure of Cadbury PLC (Rosenfeld 4).

PEST (LE) analysis is the strategic analysis of the comprehensive peripheral conditions surrounding a business operation. Such conditions are normally above the control or influence of the business, but bear pivotal influence on the outcome of product development, business planning and strategy. They include:

Political Conditions

A number of MPs fear jobs will be lost if Cadbury shareholders accept an 11.5 billon pound offer from Kraft foods in a take over bid. Cadbury currently employ 2,500 individuals at its factory at Bourneville in Birmingham and a further 1200 in Herefordshire (King 11). The MPs further view the take over by Kraft as a threat to the creativity of Cadbury employees and innovation of the West Midlands.

The MPs are not happy with the fact that Kraft has its base in Illinois meaning decisions will be made based on factors in Illinois not West Midlands (Rosenfeld 9). Such political interferences are likely to influence the public and elicit angry reactions from both the employees and members of the public (Watson 6). However, The Competition Act of 2000 stops interference by the government on the basis of public interest in cases such as this (Watson 3).

Economic Conditions

Current economic conditions in the U.K are rife for successful operation of the confectionary industry. The global economic downturn is reversing and many companies are now able to secure resources and support production (Rosenfeld 5). Cadbury PLC was not that stable economically during the global recession and had to bid its shares in the international market.

Kraft foods, a U.S based company proposed to take over Cadbury and offered a relatively high bid for it. Hence, even though the current economic conditions are stable, the preceding economic conditions were detrimental to Cadbury leading to massive debt eventually leading to the take over bid/ merger (Miller 16).

Social Conditions

There has been an exponential growth in the occurrences of obesity cases in the U.K as well as obesity related illnesses both in children and adults. Health and fitness experts in the U.K are warning that if society does not change their eating habits by the year 2025, one in three deaths will be weight related (Miller 8).

Such observations have stirred sharp adjustments in the eating habits and lifestyles of the general public. Confectionary products are considered high in calories and the social attitude towards such products is changing meaning the public is more interested in organic foods and confectionaries are now being considered attributes to obesity.

Cadbury PLC considers technological advancement as one of the key pillars of the company’s success through out the years. The company has a graduate program that is supported by technical training and the aim of the program is to encourage innovation (King 15).

The company has realized several new production and processing methods through this program, like the candy churner and the chocolate whip which are advanced inventions for higher and faster production (Miller 5). Cadbury still falls behind the competition as far as diversification is concerned because they lack cereal making machines as wells as baby food technology (Miller 10).

Cadbury Plc has been a stable and successful confectionary company since its establishment in the mid nineteenth century. A SWOT analysis of the company has helped identify some of the strong points Cadbury Plc capitalized on to perpetuate global expansion. A potent weakness has also been revealed and that is the late entry into the American market, one of the largest consumer markets in the world.

The PESTLE analysis examines the performance Cadbury Plc in the U.K relative to its environment. The recent merger which has come to be known as a hostile take over by the U.S based Kraft foods generated a lot of controversy. However, it is clear from the analysis that Cadbury Plc was undergoing tough economic conditions and Kraft’s intervention was timely though the operation strategies of the two companies differ greatly.

King, Leo. Kraft to slash £430m costs a year with Cadbury integration. 2010. Web.

Leikin, Peter. “Kraft’s Bid to Buy Cadbury Means It’s Time We Stopped Selling Off U.K Plc”. 2009. Web.

Miller, Hudson. Kraft Foods Bites Back and Questions Cadbury’s Long Term Targets. 2009. Web.

Rosenfeld, Irene . Kraft Foods Inc. (‘Kraft Foods’) Statement Regarding Cadbury Plc (‘Cadbury’) and Us Competition Clearance. 2009. Web.

Watson, Nick. “ Cadbury, Kraft and the politics of making chocolate .” 2010. Web.

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IvyPanda. (2024, March 4). SWOT/PEST (LE) Analysis on Cadburys PLC. https://ivypanda.com/essays/swot-pest-le-analysis-on-cadburys-plc/

"SWOT/PEST (LE) Analysis on Cadburys PLC." IvyPanda , 4 Mar. 2024, ivypanda.com/essays/swot-pest-le-analysis-on-cadburys-plc/.

IvyPanda . (2024) 'SWOT/PEST (LE) Analysis on Cadburys PLC'. 4 March.

IvyPanda . 2024. "SWOT/PEST (LE) Analysis on Cadburys PLC." March 4, 2024. https://ivypanda.com/essays/swot-pest-le-analysis-on-cadburys-plc/.

1. IvyPanda . "SWOT/PEST (LE) Analysis on Cadburys PLC." March 4, 2024. https://ivypanda.com/essays/swot-pest-le-analysis-on-cadburys-plc/.

Bibliography

IvyPanda . "SWOT/PEST (LE) Analysis on Cadburys PLC." March 4, 2024. https://ivypanda.com/essays/swot-pest-le-analysis-on-cadburys-plc/.

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SWOT analysis of Cadbury

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To make the right decisions and form effective strategies, a business needs to understand its strategic position. In doing so, one should do research and conduct analysis. Some useful tools to analyze the strategic position of a business are SWOT and PESTLE analysis. In this case study, we will analyze the strategic position of a famous British brand, Cadbury.

Introduction to Cadbury company

Cadbury is a British multinational confectionery company. It was founded in 1824 by John Cadbury who opened a grocery shop in Birmingham, England. Among other things in the shop, there was also cocoa and hot chocolate which were prepared by the founder himself, using a pestle and mortar. Currently, Cadbury offers many chocolates and drinks such as Cadbury Eggs, Cadbury Dairy Milk chocolates, Flake, Wispa, Twirl and Eclairs chocolates, and Cadbury Bournville drinking chocolate. Cadbury is now available in more than 30 countries and its top three markets are the United States, Australia, and India. It is fully owned by Mondelēz International which is one of the world's largest snack companies.

SWOT analysis is a tool that assists you in assessing the Strengths, Weaknesses, Opportunities, and Threats of an organization. It can aid you in obtaining insights based on the current position of the company and in figuring out possible outcomes to prevailing or potential problems.

Whereas strengths and weaknesses are internal factors, opportunities and threats are external.

To learn more read our explanation on SWOT Analysis .

Cadbury strengths

One of the company's biggest strengths is its strong brand . Despite numerous competitors such as Mars, Nestle, Kraft, Ferrero, Hershey and Lindt, Cadbury remains one of the world's leading confectionery brands and is recognizable all around the world. Having said that, consumers from countries from different parts of the world are familiar with Cadbury, its products and their taste.

Secondly, Cadbury has a global presence . Since Cadbury's products are available in many countries besides its home country of the United Kingdom, the company operates internationally. In doing so, Cadbury generates profit from numerous markets worldwide. Moreover, it is at low risk of failure as if it lost one of its markets, there would still be plenty to recover its losses from.

Lastly , Cadbury is owned by a wealthy parent company . It is fully owned by Mondelez International which is one of the world's largest snack companies. Besides generating high profits itself, in case of any adversity, Cadbury is additionally secured by Mondelez that gives it strong backing.

To sum up, Cadbury's strengths are:

• Strong brand
• Global presence
• Ownership by a wealthy family

Cadbury weaknesses

What makes Cadbury weak, from one aspect, is its limited product range . Although customers enjoy a variety of confectionery products, the company could expand its operations into developing and manufacturing other products, for example, food and beverages. Considering current food trends such as promoting a healthy diet and growing health awareness, the expansion could allow Cadbury to secure a stable position in the market.

Another aspect is that Cadbury tends to recall its products . There have been numerous cases when the company's products were recalled because of various reasons. For example, despite being labelled allergen-free, they contained nuts. Such issues can make consumers lose trust in the brand and negatively influence its reputation.

Finally , Cadbury does not have rights in the US . Cadbury chocolate in the United States is produced by the Hershey Company which acquired the right in 1988, which refrains the company from expanding in the American market. According to complaining customers, Cadbury chocolate produced by Hershey does not have the original Cadbury taste. This way Cadbury loses out on a big market, the US.

To sum up, Cadbury's weaknesses are:

• Limited product range
• Product recalls
• Lack of US rights

Cadbury opportunities

A significant opportunity for Cadbury is emerging markets . Whereas in the past, markets in regions such as East Asia and Africa did not play any role for big food brands like Cadbury, they are now becoming more and more attractive. As one of the effects of globalization and economic growth, the incomes of consumers from these regions are growing, which makes them able to afford Cadbury's products. Having said that, emerging markets encourage expansion which is associated with additional revenue streams.

As mentioned previously, one of Cadbury's weaknesses is its limited product range . Therefore, the confectionery company could expand its product range, which not only would solve the weakness but also allow further expansion. Introducing new products such as food and beverages would make Cadbury's offer more diverse and perhaps attract customers other than chocolate lovers. Not to mention additional revenue that would be a huge benefit of such an expansion.

To sum up, Cadbury's opportunities are:

• Emerging markets
• Product range expansion

Cadbury threats

Cadbury's biggest threat is probably the sugar tax . More and more governments propose to increase taxes on sugary products. Sugar taxes increase the costs of manufacturing and make Cadbury charge higher prices. This could discourage customers from purchasing its products and lead to a reduction in consumer demand, which would lower the company's profits.

Another threat to Cadbury is current food trends . Since Cadbury offers confectionery only, people who try to follow a healthy diet and who are aware of their health are unlikely to buy its products. Moreover, even if they do, it would not be happening on a daily basis. That is why current food trends could potentially reduce consumer demand for Cadbury's products.

To sum up, Cadbury's threats are:

• New food trends

SWOT analysis of Cadbury summary

SWOT analysis of Cadbury can be summarised in the table below:

Cadbury Pestle analysis

PESTLE analysis is a strategic tool used to evaluate the external factors that may impact the business's operations. It includes six critical factors: political, economic, social, technological, legal, and environmental. By conducting this analysis, we can identify the opportunities and challenges that Cadbury might face due to external factors. We will examine each factor in detail and analyze how it can affect Cadbury's strategic position.

To learn more about PESTLE analysis, read our explanation about strategic analysis .

Since SWOT and PESTLE analysis both include the external impacts on a business, some factors mentioned in SWOT can be repeated in the PESTLE analysis.

Political environment of Cadbury

One of the political factors which could affect Cadbury is the already mentioned sugar tax. In general, any political changes and the implementation of any taxes, regulations and laws by governments in countries where Cadbury operates could have an impact on the company.

Because of Brexit a lot of the labor force from the European Union left the United Kingdom. As a result, Cadbury lost many employees.

Economic environment of Cadbury

As already mentioned, emerging markets are a great opportunity for Cadbury to expand. The economic growth of developing countries makes their citizens generate more income and consequently, customers being able to afford Cadbury's products.

Social environment of Cadbury

Drawing from the SWOT analysis, current food trends such as promoting a healthy diet and growing health awareness can increasingly affect Cadbury. If more and more people cut down on or even give up sweets, Cadbury's profits will slowly decrease. However, the brand can also adjust its products to fulfill customers' needs.

Cadbury has recently launched its vegan bar to supply the increasing consumer demand for plant-based products.

Technological environment of Cadbury

When it comes to technology and its development, this is a factor that has had and probably will continue to have a positive impact on the company. Technological developments such as the introduction of new machines and general automation has changed Cadbury's production and packing processes. It has not only made them quicker but also cheaper and more effective.

Legal environment of Cadbury

In general, legal factors are similar to political factors. For example, a legal factor affecting Cadbury is the sugar tax and any other taxes and regulations in the countries it operates in. Additionally, laws in some countries may require companies to keep certain standards of their products.

Foods produced in the United States are allowed to be more calorie-heavy than those in the UK.

Environment

The production of any good is associated with environmental pollution. Therefore, Cadbury has to pay attention to laws and policies in every country it operates in and adjust its processes to them.

The company might have to make its packaging recyclable to reduce waste or switch to renewable energy sources in its factories to reduce its carbon footprint.

Having analyzed Cadbury's strategic position, both SWOT and PESTLE analyzes identified some positives and negatives.

When it comes to SWOT analysis, there are many strengths and opportunities, and weaknesses and threats affecting the brand. Along with Oreo, Cadbury being a huge booster in Mondelez's revenue seems to be doing well. However, it is worth bearing in mind that some of the negatives are yet to come and can potentially pose a danger to the future existence of the company. Therefore, the company should use some of its strengths and take advantage of opportunities in order to reduce weaknesses and minimize threats.

Regarding PESTLE analysis, some of the external factors, especially the economy and technology, can have a positive impact on the company. Nevertheless, Cadbury should pay attention to any laws, taxes, regulations, political changes and social trends in order to keep prospering.

Cadbury Competitors

Cadbury faces competition in the global market from various well-known brands. Its competitors range from long-established companies to relatively new ones, all contending for a share of the market. Here are some of Cadbury's main competitors:

• Mars , a US-based multinational company that produces a wide range of confectionery products, including M&M's, Snickers, and Twix.
• Hershey's , an American chocolate and confectionery company that is renowned for its iconic Hershey's Milk Chocolate bars.
• Nestle , a Swiss multinational company that produces chocolate and other food and beverage products, including Kit Kat and Smarties.
• Ferrero Rocher, an Italian luxury chocolate brand that offers premium chocolates such as Ferrero Rocher and Kinder.
• Toblerone , a Swiss chocolate brand known for its distinctive triangular shape and unique combination of Swiss milk chocolate and nougat.

While each of these companies has its unique brand identity and product range, they all compete for a share of the global confectionery market, where Cadbury has maintained a strong presence for many years.

How Cadbury is different form its competitors?

Here are some ways in which Cadbury is different from its competitors:

• Unique Taste: Cadbury's unique taste has always been its selling point. The company has been known to use high-quality ingredients to create its signature rich and creamy chocolate taste.
• Product Range: Cadbury has a diverse range of products, from chocolate bars to candies, gummies, and baking chocolates. The company's broad product line allows it to cater to different customer needs and preferences.
• Company History: Cadbury has a rich history that sets it apart from its competitors. The company was established in 1824 and has been producing chocolate for almost two centuries. This longevity has helped Cadbury establish itself as a trusted brand in the market.
• Innovation: Cadbury is known for its innovative approach to product development. The company is continuously experimenting with new flavours and product variants, such as Dairy Milk with Oreo, to cater to the evolving tastes and preferences of its customers.
• Social Responsibility: Cadbury has a strong social responsibility agenda, including initiatives to reduce its environmental footprint, improve the lives of cocoa farmers, and promote sustainable sourcing practices.

SWOT Analysis of Cadbury - Key takeaways

Cadbury is a British multinational confectionery company that offers many chocolates and drinks such as Cadbury Eggs, Cadbury Dairy Milk chocolates, Flake, Wispa, Twirl and Eclairs chocolates, and Cadbury Bournville drinking chocolate.

SWOT analysis is a tool that assists you to assess the Strengths, Weaknesses, Opportunities, and Threats involved in any organization.

• Cadbury's strengths are its strong brand, global presence and ownership by a wealthy parent company, whereas weaknesses are limited product range, product recall and lack of US rights.
• Cadbury's opportunities are emerging markets and product range expansion, whereas its threats are sugar tax and new food trends.
• PESTLE analysis is used to examine the external environment that may have an impact on the business's operations. The analysis includes six factors: political, economic, social, technological, legal and environmental.
• Cadbury's main competitors are Mars, Hershey's, and Nestle,
• Cadbury's unique taste, diverse product range, innovative approach to product development, strong brand identity, social responsibility initiatives, and rich company history set it apart from its competitors.

https://www.mondelezinternational.com/Our-Brands/Cadbury

https://www.cadbury.co.uk/

https://www.ft.com/content/1cb06d30-332f-11e1-a51e-00144feabdc0

https://www.marketingweek.com/kraft-completes-takeover-of-cadbury/

https://www.marketingweek.com/cadbury-ditches-free-the-joy-in-favor-of-tastes-like-this-feels-as-it-launches-new-brand-campaign/

https://www.food.gov.uk/news-alerts/alert/fsa-aa-95-2019#:~:text=Mondelez%20UK%20is%20recalling%20Cadbury,with%20an%20allergy%20to%20nuts .

https://www.businessinsider.com/cadbury-chocolate-different-in-us-vs-uk-evidence-2018-5?r=US&IR=T

https://www.kerry.com/insights/kerrydigest/2018/the-state-of-sugar-and-health-taxes-around-the-world

https://www.confectionerynews.com/Article/2021/04/28/Cadbury-and-Oreo-brands-boost-Mondelez-s-revenue-in-first-quarter#:~:text=With%20net%20revenue %20to%20%247.24,of%20Give%20%26%20Go%20and%20Hu.

Frequently Asked Questions about SWOT analysis of Cadbury

--> what is the weakness of cadbury.

 The weaknesses of Cadbury are limited product range, product recall and lack of US rights. 

--> What is the SWOT analysis of a product?

--> what type of company is cadbury, --> what are some examples of swot analysis.

SWOT analysis is a tool that assists you to assess the Strengths, Weaknesses, Opportunities, and Threats involved in any organization. SWOT analysis of Cadbury is one such example.

--> Who are Cadbury's competitors?

Some competitors of Cadbury's are Mars, Nestle, Kraft, Ferrero, Hershey and Lindt.

What products does Cadbury offer?

What is SWOT analysis?

SWOT analysis is a tool that assists you to assess the Strengths, Weaknesses, Opportunities, and Threats involved in any organization. It can aid you to obtain insights from the prior situations and figure out possible outcomes to prevailing or potential problems.

What kind of factors can SWOT analysis help to identify?

Internal and external

What are some strengths of Cadbury?

• strong brand
• global presence
• its ownership by a wealthy company

What are some weaknesses of Cadbury?

• limited product range
• product recall
• lack of US rights

What are some opportunities for Cadbury?

• emerging markets
• product range expansion

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Swot Analysis Of Cadbury

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SWOT Analysis – Strengths The Company’s Long History. Cadbury Schweppes is one of the biggest beverage and confectionery companies in the world. With a history stretching back over 200 years, today their products are enjoyed in almost every country around the world. Cadbury Schweppes plc was formed by our merger of these two great British household names in 1969.

Since then they have expanded the business throughout the world by a program of organic and acquisition led growth. It was in 1783 that Jacob Schweppe perfected his process for manufacturing carbonated mineral water in Geneva, Switzerland.

John Cadbury opened in Birmingham in the UK in 1824. Originally selling tea and coffee, it was, however, his marginal lines of cocoa and chocolate that, in just a few years, took over as the mainstay of the business and started the Cadbury success story.

Cadbury Schweppes took the strategic decision in the mid 1980s to concentrate on our core international brands of beverages and confectionery and exit the general foods and hygiene sector with the sale of non-core brands such as Typhoo Tea, Kenco Coffee and Jeyes.

Since then, we have strengthened our portfolio of key brands through the purchase of Mott’s (1982), Canada Dry (1986), Trebor (1989), Bassett (1989), Dr Pepper and 7 UP (1995) and Hawaiian Punch (1999). The new millennium has seen us continue to make acquisitions concentrating our interests in North America, Europe and the Asian Pacific regions.

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Snapple and Hollywood were acquired in 2000, and in 2001 we became number two in the soft drinks market in France with the acquisition of Orangina.

Swot Orangina

In 2002 Cadbury Schweppes catapulted to joint number one position worldwide in confectionery and number two worldwide in chewing gum, first by buying Dandy, the Danish chewing gum company and, at the end of the year, announcing our proposed $4. 2 billion acquisition of Adams. The American Customer Satisfaction Index report rates Cadbury Schweppes as number 1 on the beverages market. Cadbury Schweppes plc Base- line 94 95 96 97 98 99 00 01 02 03 04 05 06 07 Previous Year % Change First Year % Change Cadbury Schweppes plc NM N/A 85 86 83 88 85 86 85 86 89 84 83 86 86 0. 0 1. 2 Soft Drinks 6 N/A 86 86 83 83 84 86 82 85 84 83 83 84 84 0. 0 -2. 3 Coca -Cola Company, The 85 N/A 85 87 84 82 84 86 81 85 83 83 84 82 84 2. 4 -1. 2 PepsiCo, Inc. 86 N/A 87 86 83 83 82 85 84 86 83 83 82 86 84 -2. 3 -2. 3 All Others NM N/A NM NM NM NM NM NM NM NM NM NM NM 83 83 0. 0 0. 0 Cadbury Schweppes has been number one on the American Customer Satisfaction Index for two years in a row now, even though they are competing with world giants in the beverage industry, Coca-Cola and Pepsi. This yet again presents their excellence in the beverage industry from a different angle and from a different source.

Acquisition of Dr. Pepper/ Seven Up Bottling group and distribution channels. On May 2, 2006, Cadbury Schweppes completed the acquisition of The Carlyle Group’s 53% stake in Dr Pepper/Seven Up Bottling Group forming the Cadbury Schweppes Bottling Group. The Cadbury Schweppes Bottling Group (formerly Dr Pepper/Seven Up Bottling Group, Inc. ) is the largest independent manufacturer, marketer and distributor of well-known and widely-consumed carbonated and non-carbonated soft drinks in the United States. They service more than one-third of the U. S. population with operations in 25 states.

They operate ten manufacturing plants, over 100 distribution centers and employ over 9,000 employees. The Company’s portfolio of carbonated soft drinks (CSD) and alternative beverages consist of highly recognizable national brands that are in many cases the first or second ranking brand in their flavor or product category. Dr Pepper, Seven Up, A&W, Sunkist, Canada Dry, Schweppes and Squirt are a few of the leading CSD brands. The leading alternative beverages manufactured and/or distributed by the Company are: Snapple, Fiji, Arizona, Clearly Canadian, Glaceau and Deja Blue water.

Also, the acquisition of SeaBevs, and independent bottler, strengthened the Company’s route to markets in the South-East of the US. The Company’s strong and highly valued organization culture. Cadbury Schweppes’ success relies on their people. The Company has a strong heritage in the way it respects its people and its social responsibilities. Some key facts and figures: ?They employ over 50,000 people in over 60 countries. ?Currently women constitute 33% of the global workforce, 33% of out managers and 13% of our executive management team. Global staff turn-over is generally low, between 2% and 5% per year. Their ‘people’ practices are guided by our key values, which are to be open and honest, to act with complete integrity and to provide quality in products and services. We value diversity and value employees from varied backgrounds as they enrich our culture and support our commercial success. Our diversity practice helps us to attract the best people to Cadbury Schweppes and allows us to reflect the diversity of the world around us better – our consumer base and the communities in which we operate.

We aim to reflect diversity in both our workforce and in our leadership teams. Through a culture of inclusiveness, we also aim to inspire the best in our people, earn their trust, increase their engagement and promote pride in our company. Responsible business is underpinned by strong values and has a clear and compelling vision of where it is going. Over many years Cadbury Schweppes has earned success on the strength of its distinctive values and clear vision. This update sets out the steps we are taking to ensure that in our present and future business, as in the past, we continue to live our values.

Ultimately the Company’s goals and those of their shareowners are similar; a responsible and well-run company that delivers consistently superior profits over the long-term. Performance driven, values led. Good business and strong values go hand in hand. For our long term future, and that of all our stakeholders, it is in our mutual interests that we create a world in which our business will grow and thrive. A wide portfolio of products and emphasis on innovation and creativity. Cadbury Schweppes brands become old friends with whom our consumers have special relationships.

This makes the protection of their reputation an essential ingredient of our-long term success. Cadbury Schweppes is also constantly seeking new and innovative ways to satisfy the consumer’s willingness to try new things. Whenever they develop a new product they have to build consumer awareness through advertising and promotion. Consumers want to be informed, whether to be reminded of their feelings about established favorites or to be told of new delights available for their enjoyment. Their products fulfill a broad range of needs.

They offer energy, taste, rewards and gift opportunities. Cadbury Schweppes caters for these fundamental needs in a range of products which offer a huge variety of ingredients and styles. Variety is important. In this business freedom of choice means not only the freedom to seek new combinations of old favorites, but also new experiences. With choice, comes access to our products. Cadbury Schweppes makes sure their products are as widely available as possible, to ensure that they are always within an arm’s reach whether as an impulse or a considered buy.

To achieve this, they work with our customers in many different trade channels. How well they achieve the above determines how successful they will become in the market. Exiting markets and products where profitability is low. Cadbury Schweppes over their long history has had the tendency to focus more on the most productive and most profitable products and leave behind the ones that did not fit well with the Company’s expectation. This has definitely served them well and has made them more consistent in the eyes of the customers as a Company that delivers only the best products.

Even before the merger in 1969, John Cadbury’s business was tea, coffee, and cocoa, but it was the cocoa and chocolate that made him more successful and therefore that was the area that he focused and specialized in. Another example was in mid 1980s, the Company decided to exit the general foods and hygiene sector with the sale of non-core brands such as Typhoo Tea, Kenco Coffee and Jeyes. They diverted the attention in the direction of purchasing and developing more successful brands such as: Motts, Canada Dry, Dr Pepper, 7-UP, etc. Efficient supply management of raw materials.

Cadbury Schweppes uses a wide range of raw materials in manufacturing our products, the main ones being cocoa beans, sugar and other sweeteners (including polyols and artificial sweeteners such as aspartame), dairy products (including milk), gum base and fruit and nuts. They buy the raw materials from about 40,000 suppliers around the world. No single supplier accounts for more than 10% of the raw material purchases. The quality of these materials underpins the quality of the Cadbury products and they work with suppliers to maintain this.

Ingredients suppliers are asked to meet the Cadbury standards and achieve independent external accreditation. In addition Cadbury Schweppes considers the standards within our supply chain in terms of ethical trade (labor standards), sustainable agriculture and environmental management. They seek to minimize the impact of price fluctuations and ensure security of supply by entering into forward agreements and long-term contracts wherever available. In the case of cocoa, one of their main agricultural ingredients, they import cocoa beans from West Africa, primarily Ghana, and the Americas.

West Africa accounts for over 60% of world production. The Company buys cocoa beans and cocoa butter from a range of suppliers, and try to minimize the effect of cocoa price movements and secure our future requirements by entering into forward and future contracts. They have developed the Cadbury Cocoa Partnership to support and develop the livelihoods of farmers who provide our cocoa beans, helping to support them and the Company’s supply chain for the future.

They are also developing sustainable agriculture strategies for other crops that are key to their ingredients supply such as sugar. Strong Financial backbone. Financial Highlights of 2007: ?Americas Beverage revenue grew 4% which is a really good performance in these challenging markets. ?Snapple Revenue grew 5% due to innovation. ?Underlying beverage margins impacted by the bottler acquisition and the launch costs of Accelerade sports drink. ?2007 overall revenue was ? 7,971 million, 7% increase from the precious year. ?Free Cash Flow was ? 527 million, compared to ? 472 in 2006.

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SWOT Analysis of Cadbury in a Simplified Way

Cadbury, formerly Cadbury’s and Cadbury Schweppes, is a British multinational confectionery company fully owned by Mondelez International since 2010. It is the second-largest confectionery brand in the world after Mars.

Let us look into the Overview of Cadbury and then we can move on to the SWOT   Analysis of Cadbury.

Content Outline

Overview of Cadbury

S stands for strengths ( internal factor ), w stands for weaknesses ( internal factor ), o stands for opportunities ( external factor ), t stands for threats ( external factor ) .

• SWOT Analysis Of Cadbury Key Takeaways

Cadbury STP & USP

Cadbury competitors.

Cadbury has its international headquarters in Uxbridge, west London, and operates in more than 50 countries worldwide. The company is known for its milk chocolate, Cream Egg and Roses Selection Box and many other confectionery products. Cadbury is one of the best-known British brands and was named one of the UK’s most successful exporters by The Daily Telegraph in 2013.

Cadbury was founded in Birmingham, England in 1824 by John Cadbury, a Quaker who sold tea, coffee and drinking chocolate. Cadbury built the company with his brother Benjamin, followed by his sons Richard and George. George developed the Bournville estate, a model village designed to provide better living conditions for the company’s workers. Introduced in 1905, Dairy Milk chocolate contained a higher percentage of milk in the recipe compared to competing products. By 1914, chocolate was the company’s best-selling product. Cadbury, along with Rowntree’s and Fry’s, were the three major British confectionery manufacturers for much of the 19th and 20th centuries.

Cadbury received its first royal warrant from Queen Victoria in 1854. Since 1955, the company has held a Royal Warrant from Elizabeth II. Cadbury merged with J. S. Fry & Sons in 1919 and with Schweppes in 1969, which was known as Cadbury Schweppes until 2008 when the American beverage business was split as Dr Pepper Snapple Group; the rights to the Schweppes brand had already been different in different countries since 2006. Cadbury was a staple of the FTSE 100 index on the London Stock Exchange from its inception in 1984 until its acquisition by Kraft Foods Inc. in 2010.

Did You Know?

The first Cadbury factory opened in 1841

SWOT Analysis of Cadbury

The SWOT Analysis of Cadbury includes its strengths, weaknesses, opportunities, and threats. And in this reading of the SWOT Analysis of Cadbury, we will examine this beauty and wellness company in terms of its internal and external factors.

• World leader: Cadbury is the world leader in chocolate manufacturing. Cadbury is considered the company with the best production and a large distribution platform and is present in 160 or more countries.
• Strong brands and products : Cadbury has several strong brands like Dairy Milk, Bournvita, Oreo, Five Star and others in its product range. The products are of high quality and some of them are the cash cows of Cadbury.

The products of Cadbury are having great brand loyalty, brand name, brand equity and brand loyalty. Cadbury has created a good brand image among the customers through its marketing and good branding. Cadbury’s products are highly-priced due to their quality. Cadbury has several brand names which are well known all over the world and the demand for Cadbury chocolates is very high.

• Positioning as a gift: Cadbury’s has a good selection of chocolate boxes and packaging for gifting. Some of the chocolates for gifting are Cadbury Dark Milk, Cadbury Celebrations and Cadbury Rich Dry Fruits which have been positioned as gifts over the years. The new Bournville, in particular, focuses entirely on the gifting role. This clever approach has certainly set Cadbury apart from its competitors.
• Promotions: Cadbury has one of the best promotions in the FMCG sector with the impressive tagline ” Kuch Meetha ho Jaye ” and fantastic events.

This also gives power to Cadbury because it provides excellent brand recall. Cadbury is one of the few brands that have such a strong connection with Indian customers. Home, friends and love are important aspects of life for Indians. And to connect with the Indian audience, Cadbury has always focused on emotional marketing.

• Supply Chain Management: Cadbury has an excellent distribution strategy and like all FMCG companies, relies on the strategy of dividing the mass. It is no small feat to be supplied to 200 countries with a range of more than 40 variants. And in the last few years, Cadbury has been doing the same. Cadbury is considered the best company in India in terms of its distribution network.

Cadbury maintains a good partnership with its dealers, not only supplying them but also focusing on promoting the products and training the company.

• Entering new markets: Cadbury’s creative teams have helped the company to develop new products and enter new markets. In the past, the company has been successful in most of its initiatives in new markets.
• Product portfolio: Cadbury has a wide range of products that are offered in a variety of categories. It has a number of exclusive product offerings that the competition does not have.
• Marketing: Cadbury has a strong social media presence with millions of followers on the three most popular social networking platforms: Facebook, Twitter and Instagram. The company has a high level of customer engagement with a low response time on these channels.

and also Cadbury has a well-functioning and engaging website that attracts a large number of visitors and sales on the internet.

• Rural Market: The limitation of Cadbury is rural distribution, assuming that there are more rural areas in India that can be covered very widely.
• Quality: Around the same time, there were a few incidents here and there, depending on the nature of the product, where cockroaches or other rodents were found in the chocolate. It is inexcusable that a brand like Cadbury should display such arrogance because quality management should not be abandoned at all when it comes to such tainted chocolates.

Also, Read Amul’s SWOT Analysis One of the competitors of Cadbury in the Indian Market.

• Rural markets: penetration of rural markets and distribution in rural markets can be a great opportunity for Cadbury. Cadbury has a presence abroad and needs a rural presence which will increase the presence and sales of its brands and also reach and penetrate the untapped markets.
• Fresh flavours: Indian customers have a sweet tooth and like to eat small chocolates and chocolate bars. Also, there are different flavours that customers prefer. Therefore, new flavours and new tastes are an opportunity that Cadbury will provide on a regular basis.
• Acquisitions & Diverse: Acquiring competitors may strengthen Cadbury’s market dominance, Diversification of product range into related food segments.
• Costs and Price Rise: Distribution prices have risen with the increase in fuel prices and shipping costs. At the same time, procurement and production costs are also high. The continued increase in cost and hence price of the product is also a challenge for Cadbury over the years as it creates a vacuum for other companies to enter.
• Health awareness is on the rise: Health consciousness is on the rise in the Indian population. Instead of eating chocolates, many people like to reach for healthy juices and fruits. Every week you read articles in newspapers and blogs warning against eating chocolate and touting the benefits of a healthy lifestyle. Around the same time, many parents have avoided offering chocolate to their children because they fear the negative effects.
• The decline in Gifting Culture:  For years Cadbury has held the role of a gift at festivals and holidays, diminishing their importance. What happens when these festivals lose importance? Chocolate sales also decline.
• Increase In Purchase Power: Increasing demand for individuals, increasing purchasing power. If you give kids a cookie today, they probably need a toy car, a bike, or a young adult gadget. So as purchasing power has risen, so have the demands on gifts, and chocolate alone is no longer enough. This is also a threat to Cadbury.
• Regulations: Changes in government regulations and policies can directly affect the company.
• Competition  Competitor pricing and similar competing products pose a great challenge to the company.

SWOT Analysis Of Cadbury  Key Takeaways

The SWOT Analysis of Cadbury highlights where the brand currently stands and its threats in this era. Following the detailed SWOT Analysis of Cadbury Here are a Few Important Key Points.

• Strong Brand Image
• Gift Cultures
• Competition from local players

Suggestions:

Following the detailed SWOT Analysis of Tata Motors, we have a few suggestions from  Business Mavericks :

• Purchasing power
• The raw material costs rise
• Segment:  People who buy chocolates for eating or gifting.
• Target Group:  Children and families belonging to lower, middle and upper-middle classes.
• Positioning:  Cadbury is sweet for happy occasions or auspicious beginnings.

Cadbury USP

Cadbury is one of the biggest and most trusted chocolate brands worldwide

Cadbury Products 

1. Cadburys Oreo 2. Cadburys Dairy Milk 3. Cadburys Bournvita 4. Cadburys Perk 5. Cadburys 5 Star 6. Cadburys Gems

• Mars, Incorporated is an American multinational manufacturer of confectionery, pet food and other food products, and a provider of pet grooming services, with annual revenues of $33 billion in 2015. The company was ranked by Forbes as the 6th largest privately held company in the United States. Headquartered in McLean, Virginia, United States, the company is wholly owned by the Mars family.
• The Hershey Company, commonly known as Hershey’s, is an American multinational corporation and one of the largest chocolate manufacturers in the world. It also makes baked goods such as cookies and cakes and sells beverages such as milkshakes and more, which are produced worldwide. The company is headquartered in Hershey, Pennsylvania, which is also home to Hersheypark and Hershey’s Chocolate World.
• Nestlé S.A. is a Swiss multinational food and beverage company headquartered in Vevey, Vaud, Switzerland. It is the largest food company in the world by sales and other metrics as of 2014. It ranked 64th in the 2017 Fortune Global 500 list and 33rd in the 2016 Forbes Global 2000 list of largest publicly traded companies.
• Ferrero Rocher is a chocolate and hazelnut product manufactured by the Italian confectionery company Ferrero. Its invention is attributed to Michele Ferrero, the former owner of Ferrero SpA, who introduced the candy in 1979.

Each Ferrero Rocher ball is wrapped in foil and placed in a paper wrapper. The candy is made by machine and much of the production process is designed to be kept secret. The candy is sold worldwide and has a strong cultural presence, due in part to its association with Christmas and the popular 1990s commercial that aired in the UK.

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SWOT Analysis and Report for Cadbury Schweppes – Business Research Paper

SWOT Analysis and Report for Cadbury Schweppes – Business Research Paper Cadbury Schweppes was founded in the year 1831 by John Cadbury. Its revolutionized cocoa started processing from the year 1866 onwards. This company originally

merged with Schweppes in 1969. Currently, this successful company is employing approximately about 43,000 people worldwide. Today, Cadbury Schweppes is the world’s fourth biggest supplier of chocolate and sugar confectionery.

One of its products, Dairy Milk was introduced in 1905, and has become the most successful moulded chocolate in UK history and the basic ingredient for many other Cadbury products. 95 years later, Dairy Milk is one of the world’s most famous brand names and the company’s leading chocolate bar by revenue. Sales from Cadbury’s Dairy Milk alone are estimated at over £135 million for 1995. Cadbury considers its success is based on three factors: quality, value for money and good advertising.

Aim: Apply SWOT analysis to Cadbury’s current situation and its position to enter a foreign market It is important to investigate on the internal and external environmental forces for the Dairy Milk in France. Relevant organizational and industrial information is required for the development of a SWOT analysis. The analysis of the environment and the consideration of the situational factors when designing marketing planning, is critical as it would allow Dairy Milk to capitalize on organizational strengths, minimize any weaknesses, exploit market opportunities and avoid any threats. Strengths Cadbury would realize several possible advantages in going abroad. By penetrating a foreign market the company could: • Maintain a stable growth of a company by maximizing the use of its production capacity and thus increase economies of scale and scope. • With its brand name, Cadbury could counterattack the competitors it faces in the domestic market by attacking their domestic market. • Keep up with the financial strength by increasing its sales and profit, indeed the foreign market could present higher profit opportunities than the domestic products. • Acquisition rules in UK, reduce its dependence on the UK market and therefore diversify its market specific risks. • Overall, Cadbury has been successful through the new products (development) it has to offer.

Weaknesses Generally, as Cadbury has a weak position in the US market, thus, need to change its target to a different location. Besides its lack of distribution network, it also has a small total of market share altogether. Therefore in order to market the product in France successfully, Cadbury would have to find out on how it can improve in order to have great performance. It is also good to find out what are the situations that they could avoid in order to be successful. In order to market products the following issues should be considered: • Total French production of chocolate bars and confectionary, which has increased by 24.5 per cent between 1988 and 1991, has slowed down in more recent years, partly due to the economic slump. • Consumption of chocolate products, which has been growing until 1991, remained fairly static in 1992, reflecting a fall in demand due to the gloomy economic situation. • Sales of milk chocolate bars, which account for 24 per cent by volume of total sales of chocolate bars, decreased by 3.7 per cent.

Opportunities Through its confectionary product line, least to mention is to build viable positions in prioritized markets through organic growth and acquisition. Besides what is mention above, Cadbury has other opportunities to have market development in Russia and China. The Timeout Candy Bar market is growing worldwide. This company is also at the same time distributing its products via the internet – Develop Gourmet Line. Besides developing the “Low Calorie” line of chocolates and sweets, they also offer the “Sugar Free” sweets line. This has thus opened a completely Cadbury world in US. Therefore in order to get the product into a new foreign market, France, Cadbury would have good opportunities in store for them. Opportunities are as follows: • In terms of political issues, France is an advanced parliamentary democracy and politically is highly stable. The political power is centralized in the parliament, the Prime Minister and the President. The country specific risk is negligible. France is a member of the European Community and has excellent relations with the UK. • Economically, France has the fourth largest Gross Domestic Product in the world. It is a first-world advanced market based economy. Despite a recent recession, its economy is very strong and also highly deregulated in line with European Union policies. France represents a very large potential market with a high standard of living and purchasing power. The economy is highly open internationally and conducts a high percentage of trade within its European partners. • With regards to its social situation, France has a broadly central/southern European culture which has many similarities with the UK. However cultural differences do exist and these must be considered when planning for the market. • France has a high technological level and a lot of industries are based in the technological sector. This technological base constitutes one of France’s competitive advantages.

Due to its confectionary products, it is very important for Cadbury to be aware of any present or upcoming threats. The company should take note of the changes in the consumer’s buying trend. It is perceived that consumers might shift from chocolates to “Healthy” snacks. If this were to happen, there might be a poor product development which would tarnish the Cadbury’s name. Needless to say price wars would occur between its competitors like Mars, Hershey and Nestle. Due to the abovementioned, there would be seasonal sales slumps all year round which will reflect to an increase in cost of the raw materials needed. Cadbury would then have to be prepared for growth of small local gourmet chocolates and regional candy manufacturers.

However if Cadbury were to market its products in France, the company has to be aware of the risks it could encounter. It might:

• Not understand foreign customer preferences and fail to offer a competitively attractive product; • Not understand the foreign country’s business culture or know how to deal effectively with foreign nationals; • Underestimate foreign regulations and incur unexpected costs. • Threat of entry due to the competition growing through acquisition.

Obviously any foreign entry decision must take the abovementioned elements into account.

The Ansoff matrix

Present New

Market Penetration

Product Development

Market Development Diversification

Because Cadbury is introducing its brand name to a new region, in relate to the Ansoff matrix above, it can be argued that it is under market development. Although the company has come up with a few current products, it is targeting to a new market. Despite the competition against the rest (Hershey’s, M&M Mars and Nestle), Cadbury has to have the bargaining power of the buyers in order to be competitive in the market. Although the company need to know that substitutes are not a major concern. Finally, to conclude that Cadbury is in the Market Development, they would have to have the bargaining power of suppliers as they are not in power position due to commodity like nature. And also to be aware of the cost of packaging materials as it has increased over time. There are a few strategic recommendations that Cadbury could come up with in order to market its products not only in the region of France, but also to market it products successfully. After much discussion on the position of the product currently, the following recommendations could be suggested:

• Increase Frances Involvement by implementing a pound campaign to Launch Timeout in France which has already been done in America. • Increase Marketing and Promotion globally by marketing products in emerging markets. • Focus on non-chocolate development/acquisitions by developing line of non-chocolate candies. • Develop Novelty/Specialty markets—Gourmet Line on Internet, by developing gourmet line to be distributed via internet. • Aggressive new product development—low calories, sugar free and sweets. This has to be done by researching and developing new products/ joint venture.

In order for Cadbury to reach the peak of achievement, the company would have to stress on the global growth of the product. It can be a risk to market it in the region France, but with careful study of the target market segments and its economic position, it can be an attainment. Cadbury should also look into other countries like the Asia Pacific in order to market its products popular globally. But then again, careful considerations to look at its major competitors and to obtain the rules and regulations of a certain country are equally important.

Another strategic plan would be a joint venture. Since Cadbury Schweppes is a company that produces not only chocolates but also drinks, it should market a new product and maybe get into the product development or get into a total diversification. However, need to bear in mind that it is not as easy as marketing Cadbury’s current products. It took Cadbury almost 165 years to reach to its successful peak today.

Needless to say that in order for the company to market its products globally, it is understood that heavy capital and marketing expenditures have to be sacrificed. Cadbury has somehow gone through this process therefore throughout the past decade; it shouldn’t be an issue that would raise a problem.

Last but not least not to forget that Cadbury should need to strengthen the brand name of its products. This is important due to the fact that since it is popular in the UK and US, the profile of the product should be maintained and not deteriorates.

Anonymous (2002), History of Cadbury, www.cadbury.com.au Anonymous (2002), SWOT analysis – Understanding your Strengths, Weaknesses, Opportunities and Threats, Mindtools website – www.mindtools.com

Boone, L., Kurtz, D. (1992) Contemporary Marketing, Fort Worth, TX: Dryden Press.

Danca, C. A. ‘SWOT analysis’, website – www.stfrancis.edu

Developing your Strategic SWOT Analysis.” Austrainer. (1999) website – www.austrainer.com

Ferell, O., Hartline, M., G., Luck, D. (1998) Marketing Strategy. Orlando, FL: Dryden Press.

“Swoting Your Way to Success” BHC. (1999), website – www.bradhuckleco.com.au

Vrontis, D & Vignali, C (2001) ‘Dairy Milk in France – A marketing investigation of the situational environment’, International Journal of Operations & Production Management, Vol 103 No 4

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Marketing91

SWOT Analysis of Cadbury

March 8, 2023 | By Hitesh Bhasin | Filed Under: SWOT of Brands

Cadbury is one of the largest and most beloved chocolate brands in the world, with a long history spanning over 200 years and a global reputation for delicious, high-quality chocolate. John Cadbury created this famous chocolatier in Birmingham, England, in 1824, and it has grown to become one of the most recognizable and trusted brands in the world. With its distinctive fusion of quality, creativity , and indulgence, Cadbury has captivated chocolate fans with everything from its iconic purple and gold packaging to its delightful line of chocolate treats.

Cadbury has adopted the slogan “Don’t just dream it. Cadbury it.” This amplifies that consuming Cadbury chocolate can give people a way to achieve their aspirations owing to the delicious taste and texture it offers.

Cadbury has overcome numerous challenges to become the beloved brand that it is today, from its beginnings as a small family-run business in England, to its current status as a global powerhouse in the confectionery industry.

Table of Contents

Strengths in Cadbury SWOT Analysis

1. Strong brand value

Cadbury is one of the most recognized chocolate brands globally, with a history of over 200 years. According to Statista, Cadbury has a brand value of $5.73 billion in 2022. Its long history of developing innovative and iconic products have cherished by people all over the world, as well as its commitment to ethical and sustainable sourcing practices, are the foundations of its strong brand value. 

2. Repeat purchases

Customers who have developed a behavior of consuming Cadbury chocolate are more likely to make repeat purchases. According to a survey by YouGov , Dairy Milk is the second most popular chocolate brand in the UK, with 83% of respondents saying they liked or loved it. Customers who are happy with the product are more inclined to tell others about Cadbury chocolate, which can raise sales and brand recognition . 

3. Diverse product portfolio

 In order to cater to a wide range of tastes, ages, and occasions , Cadbury offers a variety of products, which enables the company to attract in and retain a large customer base . For instance, the product portfolio of Cadbury comprises confectionary items including chocolates, candies, gum. 

4. Strong social media presence

Dairy Milk has a strong social media presence, with more than 558 thousand followers on Instagram and 8 account having more than 705 thousand followers on twitter . It has engaged customers with of the best impressive tagline such as ”Kuch Meetha ho Jaye.” This enables the company to build brand loyalty through creative and interactive campaigns.

5. Iconic and recognizable packaging

Cadbury’s purple and gold packaging is quickly recognized around the world. The company’s distinctive packaging helps it stand out on shelves and reinforces its brand identity . Cadbury’s this innovative approach has set it apart from its competitors.

6. Strong distribution network

Cadbury has a strong distribution network that allows its products to reach consumers all over the world. According to recent data, the company has a presence in over 50 countries and its products are sold in more than 160 countries worldwide. 

7. Creating social impact

Cadbury has set a target to reduce its carbon footprint by 30% by 2030. It is also committed to promote sustainable cocoa farming practices and ensuring fair and ethical treatment of its farmers. In order to enhance the lives of cocoa farmers and establish a sustainable cocoa supply chain , the firm has committed more than $600 million in its Cocoa Life program. 

Weaknesses in Cadbury SWOT Analysis

1. high sugar content.

Cadbury’s products contain a lot of sugar, which worries customers who are becoming more health concerned. According to the research, a Cadbury Dairy Milk chocolate bar contains 25.6g of sugar , which is more than the recommended daily intake for an adult. Its products are perceived to have a lot of calories , which can make it challenging to draw in customers who are concerned about their health. 

2. Perception of being a traditional brand

Cadbury is perceived as a traditional brand, which makes it difficult to attract younger consumers seeking more innovative and modern products. What Cadbury lacks are products and marketing strategies that appeal to younger consumers.

3. Addiction problems

Many research and medical reports indicate that excessive chocolate or sugary products might result in health issues, particularly in teenagers. Obesity, dental issues, and a higher risk of diabetes are a few of these health issues. According to the WHO, childhood obesity has increased significantly in recent years, affecting an estimated 340 million children . This may affect the company’s reputation in long run. 

4. Dependence on a few key brands

Cadbury’s top five chocolate brands account for over 70% of the company’s sales. Due to its reliance on a small number of important brands, the business may be at danger if these brands experience a decline in sales or competition from new products.

5. Price consideration

Cadbury’s products are relatively expensive , which results in a decrease in demand and the loss of price-conscious customers. Cadbury may need to reconsider its pricing strategy in order to remain competitive , possibly by offering more affordable options.

Opportunities in Cadbury SWOT Analysis

1. Digital Transformation

By investing in its digital transformation, Cadbury may benefit from the shift towards online sales and marketing that the COVID-19 epidemic caused. By 2025, the market for chocolate is expected to rise to $182.09 billion , with e- commerce platforms expected to contribute significantly to this increase.

2. Increasing popularity of gifting culture

Cadbury can enter this market by offering premium gifting options such as personalised gift boxes or hampers for special occasions. Cadbury Dark Milk, Cadbury Celebrations, and Cadbury Rich Dry Fruits are some of the chocolates that have been positioned as gifts over the years. Cadbury may take advantage of this trend by designing attractive, customized gift packages that are tailored to the tastes and preferences of youngsters.

3. Boost to premium segment

The size of the world’s premium chocolate market , estimated at USD 75.32 billion in 2021, is expected to rise at a CAGR of 9.3% from 2022 to 2030. These offer Cadbury a big chance of expanding its product line and meet the rising demand for premium chocolates. Cadbury may take advantage of this trend and possibly grow its market share in the premium chocolate sector by utilising its knowledge of chocolate production and strong brand recognition.

4. Creation of limited-edition products

Limited-edition products can attract consumer interest and boost sales. Cadbury can generate buzz and increase sales by creating unique limited-edition products, such as collaborations with popular brands or celebrities.

5. Introducing more healthy options

According to a survey conducted by Mintel, 3 in 4 Americans are willing to pay extra for snacks with high quality ingredients, such as those with reduced sugar or fat content. This demonstrates the rising desire in the chocolate market for healthier solutions. By meeting this demand, Cadbury can potentially increase its customer base and tap into a growing market for healthier chocolate products. 

6. Emerging Markets

The rapidly growing middle class in developing nations like China and India offers Cadbury a tremendous potential to increase its worldwide presence. From 2021 to 2026, the Asia-Pacific region is expected to witness a CAGR of 7.1% in the global chocolate market. Given the rising demand for chocolate goods in developing regions like Asia and Africa, Cadbury can increase its footprint there.

Threats in Cadbury SWOT Analysis

1. raw material price volatility.

The margins and profitability of Cadbury could be impacted by the fluctuating price of raw ingredients like cocoa, milk, and sugar. Climate change and political unrest in the areas where cocoa is produced have caused significant price volatility in recent years, especially for cocoa prices. 

2. Intense competition

The chocolate industry is highly competitive, with both established and new players. Other global brands competing for dominance includes  Nestle , Lindt , Mars , and Hershey’s, as well as local players in different markets. If Cadbury doesn’t innovate and set itself apart from its competitors, this fierce competition may threaten its market dominance.

3. Supply Chain Disruptions

Cadbury sources raw materials, manufactures products, and distributes them to customers through a complex network of suppliers and partners. Any disruption in this network, such as cyber security breaches, transportation disruptions, labour shortages, and so on, can have a negative impact on the company’s ability to operate efficiently and effectively.

4. Regulatory Compliance

The business in which Cadbury works is heavily regulated, and adhering to ever-changing laws can be difficult and expensive. New laws pertaining to packaging and sustainability may have an effect on the productivity and operations of Cadbury. For instance, the Europe’s Single-Use Plastics Directive mandates that member nations minimise their usage of single-use plastics by 2021, which may have an effect on the packaging used by Cadbury.

5. Growing health consciousness

Teenagers are increasingly making good food and lifestyle choices as a result of greater understanding of the harmful health effects of ingesting too much sugar and fat. In 2021, 44% of American respondents falling in the Gen Z said they would aim to eat healthier, according to a Statista study. 56% of customers worldwide have converted from traditional snacks like chocolate and candy to high-protein, low-sugar substitutes. Teenagers who are health-conscious may look for better alternatives, which could pose a threat to Cadbury’s traditional chocolate products, which are often rich in sugar and fat.

Cadbury’s SWOT analysis reveals several areas of weakness that the company must address in order to maintain its competitive position in the global chocolate market. The company faces challenges such as high sugar content, Limited product range and competition from other major players in the industry, etc. To overcome these challenges, Cadbury must focus on diversifying its product portfolio, expanding its presence in emerging markets, and investing in sustainable practices.

When it comes to chocolate, Cadbury is still the gold standard . By addressing its weaknesses and leveraging its strengths, this brand can continue to deliver sweet success.

From the iconic Dairy Milk chocolate bars to the innovative range of products that cater to changing consumer preferences, Cadbury has proven its ability to stay ahead of the curve and remain relevant in a dynamic market. A good chocolate is impossible to resist , and Cadbury knows it better than anyone.

Liked this post? Check out the complete series on SWOT

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About Hitesh Bhasin

Hitesh Bhasin is the CEO of Marketing91 and has over a decade of experience in the marketing field. He is an accomplished author of thousands of insightful articles, including in-depth analyses of brands and companies. Holding an MBA in Marketing, Hitesh manages several offline ventures, where he applies all the concepts of Marketing that he writes about.

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Cadbury PESTEL Analysis

Before we dive deep into the PESTEL analysis, let us get the business overview of Cadbury. Cadbury is one of the most well-known and beloved confectionery brands worldwide. Cadbury was founded in 1824 by John Cadbury in Birmingham, England. Initially, Cadbury was a single shop selling tea, coffee, and chocolate.

By the late 19th century and early 20th century, Cadbury had become a large manufacturer of chocolate products. Innovations like Dairy Milk (introduced in 1905) became a significant part of the UK chocolate market.

Cadbury has a broad range of products, from chocolate bars to beverages. Some of their most iconic products include Dairy Milk, Flake, Crunchie, Twirl, Roses, and Cadbury Creme Eggs. They also have a strong presence in the biscuits sector with products like Cadbury Fingers and various products for festive seasons (like selection boxes for Christmas).

In 2010, Cadbury was acquired by Kraft Foods. Following this acquisition, Kraft split into two companies: Kraft Foods Group and Mondelez International. Cadbury became a part of Mondelez International, a global snack food conglomerate.

Cadbury has a significant market presence in many countries, notably the UK, India, Australia, New Zealand, and Canada. Each market might have its unique Cadbury products. For example, Cadbury chocolates in India might include flavors catered to the Indian palate.

 The  brand value of Cadbury  has been increasing in recent years. In 2022, the British multinational confectionery company had a brand value of around 5.73 billion U.S. dollars, up from 3.87 billion in 2018. Brand value is the amount a brand contributes to the overall value of a corporation.

Here is the PESTEL analysis of Cadbury

A PESTEL analysis is a strategic management framework used to examine the external macro-environmental factors that can impact an organization or industry. The acronym PESTEL stands for:

• Political factors: Relate to government policies, regulations, political stability, and other political forces that may impact the business environment. 
• Economic factors: Deal with economic conditions and trends affecting an organization’s operations, profitability, and growth. 
• Sociocultural factors: Relate to social and cultural aspects that may influence consumer preferences, lifestyles, demographics, and market trends.
• Technological factors: Deal with developing and applying new technologies, innovations, and trends that can impact an industry or organization. 
• Environmental factors: Relate to ecological and environmental concerns that may affect an organization’s operations and decision-making.
• Legal factors: Refer to the laws and regulations that govern businesses and industries. 

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In this article, we will do a PESTEL Analysis of Cadbury.

PESTEL Analysis Framework: Explained with Examples

• Trade Policies : Cadbury operates in a global market, so changes in trade policies can impact its supply chain, manufacturing, and distribution. Any increase in tariffs, trade wars, or new trade agreements can influence Cadbury’s profitability.
• Regulations and Compliance : Different countries have varying regulations regarding food standards, ingredients, labeling, and advertising. Cadbury must ensure that they adhere to these regulations in each country they operate in.
• Political Stability : Any political instability in countries where Cadbury has significant operations can impact its business. For example, civil unrest or governmental changes can disrupt supply chains or sales channels.
• Taxation Policies : Changes in corporate tax policies, import-export duties, or VAT can directly impact Cadbury’s bottom line. Different taxation policies in countries where Cadbury operates can affect its pricing strategy and profitability.
• Foreign Policy : The relationship between countries can affect the ease businesses operate. If Cadbury’s home country has strained relations with a market where they operate or aim to expand, this can pose challenges.
• Public Health Policies : As a food and beverage company, Cadbury can be affected by public health initiatives, such as campaigns against obesity or sugar intake. This could lead to regulations that mandate reduced sugar in products or stricter advertising guidelines.
• Employment Laws : These can influence how Cadbury hires, maintains, and manages its workforce. Laws related to minimum wage, work hours, or workers’ rights can directly affect Cadbury’s operations and cost structure.

Cadbury SWOT Analysis

• Economic Growth : The overall economic health of countries where Cadbury operates can significantly influence sales. In flourishing economies, consumers might have more disposable income to spend on discretionary items like chocolates. Conversely, sales of such non-essential items might decrease during economic downturns or recessions.
• Exchange Rates : Cadbury operates in numerous countries, so fluctuations in exchange rates can impact the cost of raw materials, profitability, and pricing strategies. For instance, if the British Pound weakens against other currencies, it could increase the cost of importing raw materials but make Cadbury’s exports more competitive.
• Inflation Rates : Rising inflation can increase the costs of raw materials and production. If Cadbury can’t pass these additional costs onto consumers through higher prices due to competitive pressures or other reasons, their profit margins might shrink.
• Interest Rates : A country’s level of interest rates can influence Cadbury’s financing decisions. High-interest rates can increase the cost of borrowing, while low rates might offer opportunities for cheaper capital.
• Unemployment Levels : High unemployment can reduce consumer purchasing power, reducing sales. Conversely, Cadbury might face higher labor costs or challenges in attracting and retaining staff in regions with low unemployment.
• Commodity Prices : The prices of key ingredients, such as cocoa, sugar, and milk, can fluctuate based on global supply and demand, geopolitical events, or even weather patterns. These fluctuations can directly impact Cadbury’s cost of goods sold.

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Sociocultural

• Changing Consumer Preferences : People’s tastes can evolve, driven by cultural trends, increased exposure to international cuisines, or health consciousness. Cadbury needs to be in tune with these shifts, adapting its product portfolio accordingly.
• Health and Dietary Trends : There’s a growing awareness and preference for healthier food choices among consumers worldwide. This could impact the consumption of sugary products. Cadbury might need to innovate its product range to include low-sugar, organic, or other health-conscious options.
• Cultural Significance : In some cultures, chocolates play a significant role during festivals, holidays, or rituals. Recognizing and catering to these unique cultural preferences can provide Cadbury with opportunities to create specialized products.
• Ethical Consumption : There’s an increasing emphasis on ethical and fair-trade products. Consumers may prefer to buy from brands that source ingredients ethically, particularly cocoa. Cadbury’s commitment to ethical sourcing can significantly influence its brand appeal.
• Demographic Changes : Changes in population demographics, like age profiles, can influence consumption patterns. For instance, younger populations might be more experimental, while older consumers might stick to classic favorites.
• Lifestyle Trends : The rise of a fast-paced lifestyle might lead to increased on-the-go snacks or products that provide quick energy. Recognizing such trends can help Cadbury position its products effectively.
• Brand Loyalty and Traditions : Some products of Cadbury, like Cadbury Dairy Milk, have deep-rooted memories associated with them for many consumers. Understanding and nurturing this brand loyalty can be crucial for long-term success.
• Environmental and Social Responsibility : Modern consumers are often concerned about a company’s commitment to environmental sustainability and social welfare. Cadbury’s initiatives in these areas can shape its public image and consumer perceptions.
• Influence of Social Media : In the digital age, consumer perceptions can be significantly shaped by online reviews, influencers, and social media trends. Positive or negative virality can impact brand perception rapidly.
• Celebration and Gifting Trends : In many cultures, chocolates are a popular choice for gifts during celebrations. Being in tune with local celebration trends, festival seasons, and gifting practices can influence Cadbury’s marketing strategies.

Technological

• Production Technology : Advances in production technology can lead to more efficient and sustainable manufacturing processes. This can help Cadbury reduce costs, increase scalability, and enhance product consistency.
• Supply Chain Management : Modern technologies, like IoT (Internet of Things) and AI-driven analytics, can optimize the supply chain, ensuring timely delivery of raw materials, reducing wastage, and improving overall efficiency.
• E-commerce Platforms : As more consumers shop online, having a strong e-commerce presence is crucial. Cadbury can leverage technology to sell directly to consumers, offer personalized shopping experiences, or run targeted promotions.
• Digital Marketing and Analytics : Tools like big data analytics and AI can provide insights into consumer behavior, helping Cadbury tailor its marketing strategies. Moreover, digital platforms offer opportunities for targeted advertising, social media campaigns, and engaging with consumers directly.
• Product Innovation : Technological advancements can lead to new product formats, textures, or flavors. For instance, research into food sciences can enable Cadbury to develop chocolates with longer shelf lives, unique textures, or health benefits.
• Sustainability Technology : With a growing emphasis on sustainable and eco-friendly practices, technologies that can help Cadbury reduce its carbon footprint, use sustainable packaging, or reduce water usage can be invaluable.
• Consumer Feedback and Engagement Platforms : Modern technology allows brands to engage with consumers in real time, gather feedback, and make quick adjustments. This can be done via apps, social media platforms, or interactive websites.
• Augmented Reality (AR) and Virtual Reality (VR) : These technologies can offer unique marketing opportunities, such as virtual store tours, interactive advertising, or even virtual chocolate tasting experiences.
• Blockchain : This technology, primarily associated with cryptocurrencies, also has applications in supply chain verification. For Cadbury, it could be used to verify the ethical sourcing of its ingredients, providing consumers with transparency.
• Automation and Robotics : In the production line, automation, and robotics can lead to faster production, reduced labor costs, and consistent product quality.

Environmental

• Sustainable Sourcing : Cadbury requires vast amounts of cocoa to produce chocolates. Ensuring these are sourced from sustainable farms that practice eco-friendly farming is vital. This protects the environment and ensures a steady supply of ingredients.
• Climate Change : Changes in global climate patterns can impact the regions where Cadbury’s primary ingredients (like cocoa) are grown. This can affect crop yields, quality, and production costs.
• Packaging : There’s a growing consumer demand for eco-friendly packaging. Cadbury can look into sustainable packaging alternatives to reduce environmental impact and appeal to environmentally-conscious consumers.
• Water Usage : Chocolate production can be water-intensive. Efficient water management systems and technologies can help reduce wastage and mitigate environmental impacts.
• Carbon Footprint : Monitoring and reducing the company’s carbon footprint through energy-efficient production methods, transportation, and supply chain management can help Cadbury align with global sustainability goals.
• Waste Management : Implementing efficient waste management systems to reduce, reuse, and recycle waste from production processes can make operations more environmentally friendly.
• Conservation Initiatives : Participating in or leading environmental conservation initiatives, like reforestation projects or wildlife conservation, can enhance Cadbury’s corporate image and appeal to eco-conscious consumers.
• Regulations and Compliance : Many countries and regions are implementing stricter environmental regulations. Cadbury must ensure compliance with these laws to avoid legal ramifications and to maintain a positive brand reputation.
• Biodiversity : Ensuring that sourcing and production practices don’t lead to biodiversity loss, especially in regions where ingredients are sourced, is crucial for the environment and the brand’s image.
• Consumer Awareness and Expectations : As consumers become more environmentally aware, their expectations from brands regarding eco-friendliness rise. Cadbury must continuously evaluate and communicate its environmental efforts to meet or exceed these expectations.

• Food Safety Standards : Different countries have distinct standards and regulations for food safety. Cadbury must ensure its products meet or exceed these standards in every market.
• Labeling and Packaging Laws : Regulations concerning labeling products (ingredients, allergens, nutritional information) and packaging vary by region. Cadbury has to adhere to these to avoid legal issues.
• Advertising Standards : Some countries have strict regulations on how products, especially food items, can be advertised, especially when targeting children. Cadbury must be cautious with its marketing campaigns to comply with local laws.
• Intellectual Property (IP) Rights : Protecting the brand’s IP rights (trademarks, patents, copyrights) is crucial. Conversely, Cadbury must also ensure it doesn’t infringe on others’ IP rights.
• Employment Laws : Cadbury operates in numerous countries, each with laws related to minimum wages, working hours, worker rights, and more. Ensuring compliance is essential for smooth operations.
• Trade and Import/Export Regulations : As an international brand, Cadbury must be aware of trade regulations, tariffs, and duties in various countries, which can impact the cost and feasibility of doing business.
• Ethical and Fair Trade Regulations : Laws related to ethical sourcing, especially concerning cocoa, which has been linked to exploitative labor practices in some regions, are vital for Cadbury to adhere to.
• Environmental Regulations : Cadbury’s production processes, waste disposal, and sourcing can all fall under environmental regulations in various jurisdictions. It’s essential to comply with these to avoid penalties and maintain a responsible brand image.
• Taxation Laws : Different countries have different corporate taxation laws. Cadbury must ensure it meets its tax obligations in every market to avoid legal consequences and reputational damage.
• Antitrust and Competition Laws : As a significant player in the confectionery industry, Cadbury must be wary of antitrust laws, ensuring its business practices don’t stifle competition or create monopolistic situations.

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Business Plan for Cadbury: SWOT, PESTEL and Porter's Five Forces Analysis

Develop a business plan for an innovative product, including justification of the opportunity, assessment of the external environment, analysis of limiting and enabling factors, and consideration of major functional elements of the business.

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SWOT Analysis of Cadbury | Cadbury’s SWOT Analysis

SWOT Analysis of Cadbury

Cadbury is one of the world’s best-recognized confectionery brands. With a wide range of chocolate bars in its product range and a geographical presence spanning Europe, Australasia, and North America, the company is extremely well established. As a result, you might think Cadbury is here to stay for good but is it?

In this article, we’ll use SWOT analysis — which reviews the Strengths, Weaknesses, Opportunities, and Threats affecting a business — to dive into the inner workings of Cadbury. With that, we’ll be able to better predict the future of this popular sweet goods brand!

Below article covers the SWOT Analysis of Cadbury

Strengths of Cadbury

The most important quadrant of SWOT Analysis of Cadbury is Strengths of Cadbury.

• Cadbury is the world’s leading chocolate manufacturer. Cadbury has a presence in 160 or more countries and is recognised to have the best production and distribution platform.
• Cadbury offers various strong trademarks and goods in its product line, including dairy milk, Bournvita, Oreo, Five Star, and others. The products are of exceptional quality, and some of them are cash cows for Cadbury.
• Cadbury products have a high level of brand loyalty, as well as a strong brand name, brand value, and brand loyalty. Cadbury has developed a positive brand image among customers as a result of its marketing and branding efforts. Cadbury products are expensive due to their exceptional quality. Cadbury has a number of well-known brand names around the world, and its chocolates are in high demand.
• Cadbury’s has a good selection of chocolate boxes and packs that can be given as gifts. Cadbury Dark Milk, Cadbury Celebrations, and Cadbury Rich Dry Fruits are some of the chocolates that have been placed for gifting purposes over the years. The new Bournville, in particular, is totally focused on the role of gifting. Cadbury has successfully isolated itself from the rest of its competitors as a result of this astute strategy.
• Cadbury offers one of the best promotions in the FMCG industry, with an enticing tagline of “kuch meetha ho jaye” and exciting events. Cadbury also has clout because of its strong brand recognition.
• Cadbury is one of the few brands with a good relationship with Indian consumers. For Indians, home, friends, and love are all vital components of life. Cadbury has always focused on emotional communication to get out to the Indian consumer.
• Cadbury, like all FMCG companies, has a fantastic distribution system in place and employs the approach of separating the bulk. It’s no small effort to be distributed to 200 countries in more than 40 different variants. Cadbury has been doing the same for a few years now. Cadbury is often regarded as having the best distribution network in India.
• Cadbury has a good relationship with its dealers, not just in terms of supplying them, but also in terms of marketing the company’s products and providing training.
• Cadbury’s creative teams have assisted the company in developing new products and expanding into new areas. It has previously been successful in most of the new market efforts it has undertaken.
• Cadbury has a well-designed and interesting website that receives a lot of traffic and generates a lot of sales.
• Cadbury has a large social media presence, with millions of followers across the three most popular social media platforms: Facebook, Twitter, and Instagram. On those channels, it has a high level of consumer engagement and a short customer reaction time.
• Cadbury sells a wide range of items in a variety of categories. It offers a variety of special product discounts that its competitors do not.

Weakness of Cadbury

As previously stated, a brand like Cadbury is meant to have a lot of strengths and few drawbacks, and this is true.The SWOT Analysis of Cadbury calls out the weaknesses of Cadbury.

• Cadbury’s rural distribution is a restriction, given that India has a large number of rural areas that can be serviced.
• Around the same time, depending on the nature of the product, a few incidents of cockroaches or other rodents being discovered in chocolate occurred here and there. It is unconscionable for a company like Cadbury to be so arrogant, because tainted chocolates should not be allowed to sabotage quality management. As a result, quality management must be improved.

Few related articles that are worth a read:

• SWOT Analysis of IKEA | IKEA SWOT Analysis
• SWOT Analysis of Unilever | Unilever SWOT Analysis
• SWOT Analysis of Uber | Uber’s SWOT Analysis
• SWOT Analysis of Kitkat 2022 | What is SWOT Analysis of Kitkat?
• SWOT Analysis of Zara 2022 | Zara SWOT Analysis 2022
• SWOT Analysis of Facebook 2022 | Facebook SWOT Analysis 2022
• SWOT Analysis of Gucci | Gucci SWOT analysis 2022
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Opportunities for Cadbury

• For Cadbury, rural market penetration and distribution can be a huge potential. It has a presence in other nations, but Cadbury requires a rural presence to boost the visibility and turnover of its brands.
• Indian customers have a sweet tooth and enjoy eating little chocolates and chocolate bars from time to time. Furthermore, customers have preferences for various flavours. As a result, Cadbury will continue to introduce new tastes and flavours on a regular basis.

Threats for Cadbury

• As fuel prices and shipping expenses have grown, distribution prices have risen as well. Simultaneously, sourcing and production expenses are high. Cadbury has faced a struggle in the past with rising costs and, as a result, product pricing, since it has created a vacuum for other businesses to fill.
• Health awareness is increasing among the Indian population. Many people prefer to drink healthy drinks and eat fruit instead of chocolate. Every week, pieces in newspapers and blogs will advise against eating chocolate and promote the benefits of staying healthy. Many parents avoided giving their children chocolates around the same period, citing the negative consequences.
• Cadbury has spent years serving as a present during festivals and holidays, diminishing the significance of festivities. What happens if the importance of these festivals declines? Chocolate sales are dwindling as well.
• Individual demand is growing, as is their purchasing power. If you give a child a cookie these days, they are much than likely to want a toy car, a bicycle, or a young adult device. As a result, the value of gifts has increased in tandem with the rise in purchasing power, and a chocolate will no longer suffice. Cadbury is also at risk because of this.
• Changes in government regulations and policies can have a significant impact on the business.
• The corporation faces significant competition from competitors’ price and similar competitive products.

This concludes the SWOT Analysis of Cadbury.

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AN APPLICATION OF SWOT ANALYSIS AS A STRATEGIC PLANNING TOOL: A CASE OF CADBURY, INC. IN CONFECTIONERY INDUSTRY

2019, Uluslararası İktisadi ve İdari İncelemeler Dergisi

This paper provides analysis on Cadbury, Inc and confectionery industry. The paper analyzes the external and internal forces affecting the company, the industry it operates and its business level strategy. Further, it gives detailed information about the SWOT analysis of the company. Considering the situational features such as opportunities and threats when designing the environmental analysis and making realistic marketing plan is very crucial because a company will benefit from its own strengths, eliminate its weaknesses, benefit from environmental opportunities and protect itself from environmental threats. On the simple basis of product quality and taste, Cadbury proves to be superior to other commercially available chocolate even with the seeming similarities in texture. This paper deals with two main research flows: environmental analysis and situational factors which allows organizations to compose a realistic and effective marketing plan. This study provides a framework that implement a common consensus on these research flows by specifiying some important issues for future research and by making effective strategy analysis in the confectionery industry. ŞEKERLEME ENDÜSTRİSİNE YÖNELİK STRATEJİK PLANLAMA SÜRECİNDE DURUM ANALİZİ UYGULAMASI: CADBURY, A.Ş. ÖRNEĞİ Ö z Bu çalışma, Cadbury A.Ş. ve şekerleme endüstrisi analizlerini kapsamaktadır. Çalışma, SWOT analizi yardımıyla Cadbury A.Ş.'nin içinde bulunduğu sektörü ve işletme düzeyinde stratejileri etkileyen dış ve iç kuvvetleri analiz etmektedir. Çevrenin analizi ve şirketin pazarlama planı tasarlanırken durumsal faktörler göz önünde bulundurulduğu gözlenmiştir. Cadbury A.Ş.'nin örgütsel bağlamda sahip olduğu güçlü yönlerden faydalanırken; zayıf yönlerin olumsuz etkilerini en aza indirgemeye yönelik çeşitli stratejiler kurduğu görülmüştür. Şirketin bu stratejileri, pazar fırsatlarından yararlanmasına ve herhangi bir tehditten kaçınmasına fayda sağlayacağı için oldukça önemlidir. Cadbury A.Ş.'nin ürünleri yüksek fiyatla ithal edilen atıştırmalık ve yiyeceklere kıyasla daha uygun fiyatlı ve eşit derecede rekabetçi bir alternatiftir. Cadbury A.Ş.'nin şirket stratejilerinin aynı sektörde yer alan diğer şirketlerden daha üstün ve başarılı olduğu sonucuna ulaşılmıştır. Çalışma, şirketi etkileyen dış güçleri, bulunduğu sektörü ve şirketin çevresini analiz etmektedir. Böylelikle şekerleme endüstrisinin geleceği hakkında gerçekçi öngörüler sunulmakta ve sektörün dinamikleri hakkında önemli bilgilere ulaşılmaktadır. Bu çalışma gelecekteki araştırmalara şekerleme endüstrisindeki firmaların çevresel analizi için önemli alanları vurgulayan kavramsal bir çerçeve sunmaktadır.

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