Comprehensive Marketing Analysis and Strategies for Cadbury Company

This report provides a comprehensive marketing analysis of the Cadbury Company, a British multinational confectionery, bakery, and health drink manufacturer. It begins with an introduction to Cadbury, its leadership, and key brands, followed by an overview of the confectionery industry, i...Read More

Marketing of
Cadbury

Company Introduction
 Cadbury is a British multinational company which manufactures confectionary,
bakery and health drink product. The company is headquarters in Burmingham,
England and has operations in about a hundred nations.
 The leadership of Cadbury is headed by Irene Rosenfeld who has already led the
holding company of Cadbury namely, Mondelez International Inc. based in the US.
 Cadbury holds some of the top brands in the global confectionary market like
Cadbury Dairymilk and Bournville.
 The company was awarded the Royal Warrant in 1854. HM Queen Elizabeth II
conferred the Royal Warrant on the company since 1955.
 The main competitors of Cadbury are multinational companies like Ferrero Rocher
based in Italy and Ghirardelii Chocolate Company based in the US.

Brief Industry Overview
 Threats of new entrants-The first threat which Cadbury faces in the global
market is threats of newly entering firms into the chocolate industry.
According to Mierzwa and Zimmer (2017), the newly entering firms into
the chocolate industry are threats to the existing companies like Cadbury.
The global chocolate market is estimated to attend a value of USD 161.56
billion by 2024
 Bargaining power of customers-The customers enter immense bargaining
power in the chocolate market owing to a large number of companies
offering chocolate products. The customers today can purchase different
types of chocolate like white chocolate, milk chocolate and dark
chocolate. The companies manufacturing chocolate today offer chocolate
products in different forms like bars and cubes

Brief Industry Overview contd…
 Bargaining power of suppliers- The bargaining power of suppliers are very high in the
chocolate market due to several reasons. First of the all the companies like Cadbury have
high quality standards for their products. Secondly, the main raw material for chocolate
product namely cocoa is produced in a small number of countries in Africa and South
America. Similarly, the chocolate companies in order to ensure high quality of finished
products acquire raw materials like milk and nuts from selected suppliers (Diaz-Osborn &
Osborn, 2016). This scarcity of the suppliers producing raw materials for chocolate
products gives the opportunities to the suppliers immense prices for their supply of raw
materials. Moreover, leading companies like Nestle and Cadbury are able to control the
rates of the raw materials for chocolate products. Thus, it is evident from the description
that the suppliers supplying raw materials to the leading companies have more controlling
power in the market compared to suppliers supplying to the smaller players.
 Threats from substitutes- The threats from substitutes in the chocolate market is
very high. This is because the consumers have access to large variety of confectionary
products who are substitutes to the chocolate products manufactured by companies like
Cadbury. The company manufactures chocolate products in different forms like bars and
cubes. There is a growing concern that chocolate harms teeth and raises sugar levels in the
blood of the consumers. This means that the consumers can opt to consume healthier
product like biscuits which have less sugar compared to chocolate bars.

Brief Industry Overview contd…
 Competitive rivalry- The rate of competitive rivalry is very high in
the confectionary market owing to presence of several multinational
companies marketing variety of premium chocolate products. For
example, Cadbury Diary Milk, the flagship product of the company
faces competition from Kitkat, manufactured by Nestle, the largest
food manufacturing company in the world. This extremely competition
which Cadbury receives from its rivals poses serious threats to the
market position of the company

SWOT of Cadbury
 Strengths:
 Financially strong
 Royal Warrant
 Global brand
 Partnership and innovation
 Weaknesses:
 Subsidiary status
 Health issues
 Limited product umbrella

SWOT of Cadbury contd…
 Opportunities:
 Converting into a full-fledged
company instead of subsidiary
status
 Health issues management
 Extension of product line
 Threats:
 Data theft risks
 Threats from counterfeit
products

Segmentation, Targeting &
Positioning of Cadbury
 Segmentation-The segmentation strategy of Cadbury is largely responsible
for making the company a global brand. The company segments its
consumer base on several grounds. Firstly, the company segments its
market geographically. This is evident by the fact Cadbury has dedicated
subsidiaries in all its strategically important market which are responsible for
marketing products adapted to the situation of the concerned markets. The
company also has websites dedicated to particular countries (Lees,
Winchester & De Silva, 2016). The second basis of segmentation which
Cadbury uses is economic segmentation. The company produces products for
both upper and middle class customers. For example, the Bourneville is the
premium chocolate products which target upper class customers. Similarly,
the ordinary Cadbury Diary Milk targets middle class customers. However,
the company has no product for the lower class customers.

Segmentation, Targeting &
Positioning of Cadbury contd…
 Targeting-The target customer segment of Cadbury are the customers
who enjoy indulging in chocolate desserts. The company targets
customers of all age groups and is a globally sought after brand.
 Positioning-Cadbury positions itself as a marketer of premium
chocolate confectionary. The company considers its high quality and
higher percentage of pure chocolate in its products as its USPs.

Marketing Mix
 Product- The products of Cadbury consist of premium and high
quality chocolate. The company is a leading manufacturer of milk
chocolate, organic chocolate, white chocolate and dark chocolate. The
products of the company are available in different size packages at
different prices.
 Price- The company uses premium pricing and economic pricing
strategies to market its products in the global market. The basic
variants like Cadbury Dairy Milk and Perk are sold at economic rates.
The premium products like Bourneville which is the dark chocolate
product of the company are sold at premium prices (Zhang et al.,
2017).

 Place-Cadbury sells its products by using both brick and mortar store
format and ecommerce format. The company sells its products through
local distribution chains as well as retail chains. Similarly, the company
markets its products on the ecommerce platform both on its own
official portal and third party portals like Amazon.
 Promotion-Cadbury uses a variety of promotional techniques like
media promotion and audio visual promotion.

References
 Azar, G., & Ciabuschi, F. (2017). Organizational innovation, technological innovation, and
export performance: The effects of innovation radicalness and extensiveness. International
Business Review, 26(2), 324-336.
 Basu, S. (2014). Business-standard.com. Retrieved from https://www.business-standard.com
/article/companies/amul-to-be-first-dairy-firm-to-export-to-russia-114122400485_1.html
 Bharucha, J. (2016). Cadbury Vs Nestle: A Study of The Chocolate War. International Journal of
Research in Social Sciences, 6(9), 609-620.
 Businesstoday.in. (2016). Retrieved from https://www.businesstoday.in/magazine/cover-story/
indian-dairy-market-is-on-a-tear-due-to-new-players/story/232545.html
 Diaz-Osborn, N., & Osborn, S. (2016). Organizational structure and business and technology
strategy of food companies to optimize development of foods for consumers with specific
dietary needs. In Developing Food Products for Consumers with Specific Dietary Needs (pp.
43-62). Woodhead Publishing.
 Fincham, A. (2019). Cadbury’s Ethics and the Spirit of Corporate Social Responsibility.
In Quakers, Business and Corporate Responsibility (pp. 41-58). Springer, Cham.
 Gallo, P. J., Antolin-Lopez, R., & Montiel, I. (2018). Associative Sustainable Business Models:
Cases in the bean-to-bar chocolate industry. Journal of cleaner production, 174, 905-916.
 Globenewswire.com. (2018). Retrieved from https://www.globenewswire.com
/news-release/2018/10/22/1624439/0/en/Global-Chocolate-Market-Expected-to-Reach-USD-16
1-56-Billion-By-2024-Zion-Market-Research.html

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