Cadbury's Chocolate Yogurt: Australian Market Analysis Report

This report provides a comprehensive analysis of Cadbury's planned launch of a chocolate yogurt product in the Australian market. It begins with background information on Cadbury's history and market positioning, highlighting the company's dominance in the confectionery industry and its move towards brand extension. The report details the product description, emphasizing its focus on health and flavor to attract a broad demographic, particularly Generation Z. A competitive environment analysis identifies key players such as Dairy Farmers, Chobani, and Brownes, as well as indirect competitors like Boost Juice. The report also includes a SWOT analysis, identifying opportunities such as the increasing demand for healthy alternatives and threats such as established competitors and environmental concerns related to packaging. The report references several sources to support its claims and provide a well-rounded view of the market and Cadbury's potential for success.

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Company: Cadbury
Product: Chocolate yogurt
Situation and background
Cadbury took entry in the market of Australia in the year 1922 and established different
partnership and collaboration with a number of confectionery producers all over its journey.
Cadbury has successfully dominated the confectionery market and affected the demography
by offering different types of products (Food Navigator, 2016). Cadbury is the key
confectionery product in everyone’s childhood and also vital product many households.
Cadbury is majorly very popular in comparison to other brands such as Cherry Ripe with
11.8%, Mars with 9.3%, Kit Kat with 12.8%, and Snickers with 6.7% of market share (Yu,
2017). Presently, Cadbury is moving towards brand extension, the company is adding
different variety of unique chocolate with sugary flavor products. Hence, in order to continue
the extension, Cadbury is planning to introduce yogurt product with low sugar level and
volume of chocolate depending on the wellness and health aspect. The key aim of introducing
this new chocolate yogurt is that Cadbury desires to offer a healthy snack option to the
customers. Yogurt is dairy product that is produced with fermenting the milk. It is rich in
calcium and protein, and it also improves healthy gut bacteria, dismissing irritable bowel
disease and relieving digestion. The yogurt production industry of Australia has expanded the
products in the last five years due to increasing demand as the healthy food option.
Manufacturers in the market have increased the volume of production (IBIS World, 2018).
This new offering of Cadbury will expose customers to yogurt as well as chocolate
indulgence. The major emphasis of this product is on the flavor as well as health, which
offers customers with a unique taste experience which is not being offered by any other

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product in the market. Seemingly, the usual yogurt product is not attractive for a number of
adults and young kids. Hence, Cadbury will majorly target generation Z that is millennial and
digital natives of all demographics. Consequently, Cadbury is planning to offer a product for
which parents do have to struggle and involve in the argument with their kids for the
consumption of the product.
Product Description
The introduction of chocolate yogurt as a new snack product in product portfolio of Cadbury
has never been observed in the history of the company. The key motive behind introducing
this product is offering a healthy product to the customers. The yogurt chocolate will be
launched in the market in three different sizes. The chocolate yogurt of 140g will be offered
in the circle shape packaging. In order to attract younger kids, the packaging of the product
will be printed with the powerful animal face like an elephant, tiger, and lion with the
background. The back side of the packaging will be printed with the nutritional information,
ingredients details and warning according to the food standards of Australia. The opaque
polypropylene packaging is planned to be utilized for the chocolate yogurt of 350g size for
quality assurance during storage. Cadbury has also planned to design the product container in
a cup shape, such that customer can re-use the container for different purposes.
Competitive Environment
Speciously, increasing health awareness is boosting the consumption of domestic yogurt in
the market (Lucio, 2018). The industry of yogurt production has immensely developed and
earned around $ 819m. In spite of the growth of the yogurt market, it is unavoidable that
Cadbury will deal with a number of competitors while entering in the new product line in the
Australian market. There are various known brands of yogurt brands that are dominating the
market, for instance, Dairy Farmers Thick & Creamy Classic Vanilla, Chobani "flip" Greek
Yoghurt Mint Chocolate Chip Nudie Coconut Natural Yoghurt, Five: am Organic Vanilla

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Bean Yoghurt, and Vaalia Kids Breakfast Yoghurt Pouch Blueberry & Grain (Finder, 2019).
Besides this, Brownes and Yoplait are the key direct competitors for Cadbury wit market
share of 34.5% (Australian Competition and Consumer Commission, 2016). On the other
side, boost juice can be considered as one of the indirect competitors of the company. All
these specified competitors have attained a major share in the market. Though, the tasty
chocolate flavor of Cadbury’s Yogurt and the healthy features ensure that the product will
cover the market very effectively.
SWOT Analysis - Opportunities
It is the fact that Cadbury has covered the second largest position in the Australian market;
however, there are huge opportunities for the company in the market. Today's advanced
technology enables customers to lead about a healthy lifestyle and therefore they search for
different healthy product alternatives. Therefore, this chocolate yogurt has been intentionally
introduced in the market by Cadbury such that it can enhance the reputation of the company.
Consequently, this new offering of the company will influence a number of potential
customers and bring a new customer (Bhasin, 2018).
Furthermore, the increasing demand in the Australian yogurt market has resulted in
increasing the production volume, which also reflects that Cadbury can successfully gain the
market through its unique strategies. From the analysis, it has been identified that the revenue
of the industry is estimated to increase at the rate of 2.7% annual in the next five years (IBIS
World, 2018).
SWOT Analysis - Threat
The Australian Yogurt market is already comprised of some strong established yogurt brand
such as Yoplait and Brownes (Australian Competition and Consumer Commission, 2016).
This might affect the strategic implementation of the company’s launch of new Yogurt

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Product and even can delay the growth of the product. The 140g packaged Chocolate Yogurt
of Cadbury can have a major influence on the environment pollution because few of the
communities cannot recycle. Under pure competition market, pricing of Cadbury can also
impact the customer decision making procedure because the rivalry firms are offering their
products at the same prices. This can influence the sales target as well as the profit margin of
Cadbury (Cadbury, 2019). Though the new product of Cadbury is being produced in
accordance with the increasing health consciousness of the customer, it can be tough to
persuade some of the demographic because the flavor of the Yogurt is chocolate.

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References
Australian Competition and Consumer Commission. (2016). Submission To The Accc Inquiry
Into The Australian Dairy Industry. Retrieved from
https://www.accc.gov.au/system/files/Brownes%2520Foods%2520Operations
%2520Pty%2520Ltd.pdf
Bhasin, H. (2018). SWOT analysis of Cadbury. Retrieved from
https://www.marketing91.com/swot-analysis-of-cadbury/
Cadbury. (2019). Competitors. Retrieved from https://cad-bury.weebly.com/competitors.html
Finder. (2019). The best and most popular yogurts in Australia in 2019. Retrieved from
https://www.finder.com.au/best-yoghurt
Food Navigator. (2016). Cadbury leads all categories as Australian chocolate consumption
rises. Retrieved from
https://www.foodnavigator-asia.com/Article/2016/03/23/Cadbury-leads-all-
categories-as-Australian-chocolate-consumption-rises
IBIS World. (2018). Yoghurt Production - Australia Market Research Report. Retrieved from
https://www.ibisworld.com.au/industry-trends/specialised-market-research-reports/
consumer-goods-services/yoghurt-production.html
Lucio, R. (2018). Aussies becoming more health conscious. Retrieved from
https://insidefmcg.com.au/2018/01/18/aussies-becoming-more-health-conscious/

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Yu, D. (2017). M&M’s, Dove and Snickers maintain chocolate market lead in China.
Retrieved from https://www.confectionerynews.com/Article/2017/09/01/M-M-s-
Dove-and-Snickers-maintain-chocolate-market-lead-in-China