In this article we discuss the SWOT analysis of Cadbury which is a popular British multinational confectionery company, headquartered in Uxbridge, West London & is owned fully by Mondelez International, since 2010. It is the second-largest confectionery brand in the world, next to Mars.
The company was established in the year 1824 by John Cadbury, a Quaker who sold coffee, tea, and drinking chocolate. He went on to develop business with his brother Benjamin, then it was taken over by his sons George and Richard.
In the year 1905, Dairy Milk chocolate was introduced which had a high milk proportion. Slowly it started to become the best-selling company for chocolate. Cadbury Dairy Milk chocolate is one of the most widely sold products. Its chocolate bars were sold in multipacks and later reduced in size to reduce the calorie count.
Cadbury has many brand names and the chocolate demand is high. It has many chocolate options as gift boxes. Some of the chocolates for gifting purposes are Cadbury Dark Milk, Cadbury Rich Dry Fruits, and Cadbury Celebrations. For many years, these chocolates were mostly seen as gifting options.
The company operates in about 50 countries across the globe. Cadbury is popular for its Dairy Milk chocolate, Roses selection box, and the Creme Egg. The company has many other confectionery products that are a big hit in the market.
In the year 2013, one of the popular British brands, The Daily Telegraph, mentioned Cadbury as one of the top exports.
Owing to the company’s history and its excellent business description in the confectionary sector, let us discuss the SWOT analysis of Cadbury.
SWOT analysis is an excellent tool that organizations use to identify their strengths, weaknesses, opportunities, and threats. It helps the company with strategic planning and identifying the right market for the brand. SWOT analysis of Cadbury analysis both internal and external factors to help them grow better.
Strengths in SWOT Analysis of Cadbury
Strengths in Cadbury SWOT analysis are the main key factors that have helped the company to build brand value. Here are Cadbury’s strengths.
1. Strong Brand
Cadbury is one of the world’s leading confectionery companies and is a very popular and powerful brand. Customers across the world associate Cadbury with its special taste. Hence, customers prefer to pick Cadbury chocolates from the shelves of retail outlets. Cadbury has a strong brand value and it provides products and packing with so much quality. Cadbury products also feature products with its established brands like Oreo. Its strong brand is one of its strengths.
2. Global Presence
Cadbury is a powerful brand that has set up its operations in about 50 countries. It has a good reputation everywhere. Due to its global presence, it drives additional revenue and can have more profits.
3. Parent Company
Cadbury is completely owned by Mondelez International, which was known as Kraft Foods earlier. Its parent company is an international good giant and has featured many other brands. Having strong support from its parent company is one of its main strengths.
Cadbury’s promotions are its best and have an impressive tagline of “Kuch Meetha Ho Jaye”. Its promotions are attractive and showcase beautiful events. Their promotions give an excellent brand recall. Cadbury is also one of the few brands that have a strong connect with Indian audience. This is one of its major strengths.
5. Launched Low Calories Chocolate
To address many health conscious people, Cadbury has launched low calories chocolate and provided more options for sales. This has also led to addressing wide customers, which is seen as its strength.
Weaknesses in SWOT Analysis of Cadbury
Weaknesses in Cadbury SWOT analysis are the various factors that bring down the company’s performance and cause customer dissatisfaction. Here are Cadbury’s weaknesses.
1. Less Product Range
There has been criticism by business analysts regarding the limited product range that Cadbury produces. The brand provides diverse confectionery products, however, it has not expanded into manufacturing other food category items. This is a weakness for Cadbury as it is highly exposed to only the confectionary market in both good and bad times. In the face where there are many health conscious people, Cadbury can face serious consequences.
2. Product Recalls
Yet another weakness of Cadbury is that of product recalls. Recently, Cadbury had to recall some of its confectionery products on various occasions. This product recalls were due to various reasons like products having nut residues which were labeled allergen-free, products having harmful bacteria, etc. Such kind of product recalls impacts its sales and hits the brand’s reputation.
3. Lack of US Rights
For any Western confectionery brand, it is a common mindset to think US as to be one of the largest market shares. However, in the year 1988, The Hershey Company acquired the rights to manufacture Cadbury chocolate in the US. Many consumers raised their complaints about this and claimed that the Cadbury tastes were different. This is a weakness for Cadbury, as with this kind of lack of rights, the company will not be able to expand in the US market.
4. High Price
Most marketers feel that Cadbury charges premium prices for its products than the other competitors. This is a weakness for the brand as people will purchase other chocolates instead of Cadbury.
Opportunities in SWOT Analysis of Cadbury
Opportunities in Cadbury SWOT analysis are the various external factors where the company sees potential growth opportunities. Here are Cadbury’s opportunities.
1. Upcoming Markets
One of the major opportunities for Cadbury is emerging markets. Earlier, many regions like Africa and Far East Asia have not been significant consumers of these products. However, with the widespread globalization effects and increasing consumer incomes, there is more likely that Western food brands will enter untapped markets. This provides an additional revenue stream for the company.
2. Product Range Expansion
Cadbury can try on increasing its product range. This can bring in a lot of opportunities for the brand. It can introduce new confectionery products or experiment with other markets. This will help the company yo diversify its existing stand in the market along with playing safe. It also drives in extra income for Cadbury.
3. New Tastes
Many people have a sweet tooth and they mostly like to eat small chocolates and chocolate bars. There are many flavors preferred by customers. Cadbury can introduce new tastes and flavor that sees a lot of opportunities.
Threats in SWOT Analysis of Cadbury
Threats in Cadbury SWOT analysis are the various external factors where the company sees a threat that can harm its reputation. Here are Cadbury’s threats.
1. Sugar Tax
Many countries have suggested implementing sugar tax. It is an extra charge on sugary products formed to reduce consumption. This idea has gained a major grip on many European countries. When sugar tax is implemented in many areas, it increases the confectionary products price for customers. This will eventually lead to a decrease in sales, and it hits Cadbury’s revenue thereby becoming a threat to the brand.
2. Health Conscious Trends
Another serious threat is the increasing health conscious people. With the advancement of science, customers have learned more about healthy and unhealthy food. Unfortunately, many studies have shown a lot of negative impact of sugar and processed food like chocolate. There are many articles and news that are seen propagating against eating chocolate. As customer preferences are more towards health consciousness, this might decline Cadbury sales.
3. A Decline in Gifting Culture
Cadbury boxes were mostly used for gifting purposes during festivals and holidays. When there is a decline in festival importance, then there is a decline in chocolate sales. This is a threat to the Cadbury brand and it hits its profit.
Table of Contents
- Strengths in SWOT Analysis of Cadbury
- Weaknesses in SWOT Analysis of Cadbury
- Opportunities in SWOT Analysis of Cadbury
- Threats in SWOT Analysis of Cadbury