Do you like chocolate from Cadbury? Want to find out more about why this company is so successful? If so, you should read this blog post. Here, we will look at Cadbury SWOT analysis and talk about how they have stayed competitive in the chocolate business.
Key Points from The Cadbury SWOT Analysis
History of Cadbury
Cadbury is one of the oldest and most popular confectionery companies in the world. In 1824, a Quaker named John Cadbury opened a small shop where he sold tea, coffee, and cocoa. It has grown over the years to become a global leader in the chocolate business.
Today, it produces some of the world’s most beloved chocolates and sweets like Dairy Milk, Flake and Wispa. It also manufactures other products such as gum and beverages like Bournvita.
The company is renowned for its innovative products and marketing campaigns that have made it a household name around the globe.
SWOT Analysis of Cadbury Multinational Confectionery Company
Strengths of Cadbury
They are one of the leading confectionery companies in the world, with a powerful and globally recognized brand name. The company has numerous strengths, including a strong brand recall and customer loyalty, a global presence, and a financially strong parent company.
1. Global Presence
It has a strong presence in many countries around the world and is considered one of the most successful confectionery companies in the world. They have a wide selection of products, ranging from chocolate bars to boxed chocolates, and they are constantly innovating to stay ahead of their competitors.
2. Rich flavour and creamy texture
It chocolate is known for its rich flavour and creamy texture that comes from the use of fresh milk, cocoa beans, and other quality ingredients. It also contains a high percentage of cocoa solids, which gives it a deep, dark colour and intense taste.
3. Qualitative Research
It has invested heavily in qualitative research to gain a better understanding of the needs and desires of their consumers. This has enabled them to create products that meet the specific needs of their customers. Additionally, this data helps them to stay ahead of trends and predict consumer behaviour.
4. Sweet and Creamy Taste
Their chocolate has a unique flavour that sets it apart from other brands of chocolate. It is known for its sweet and creamy taste, which makes it ideal for baking or sharing with others during special occasions.
5. Parent Company
Mondelez International, which is Cadbury’s parent company, is a very strong business. The company does business under a number of different brand names. In fact, during the pandemic year of 2020, it made more than $27 billion a year. The parent company puts a lot of money and time into making sure that its subsidiary brand names grow and do well.
6. Popular Product
It’s manufacturing process is adaptable and able to accommodate new developments that are in line with the requirements of the market at any given time. Cadbury Milk is the most popular and best-selling product that the company makes, both among kids and adults.
Weaknesses of Cadbury
It is one of the world’s most beloved chocolate companies, but SWOT Analysis of Cadbury reveal some weaknesses that they must overcome in order to stay successful.
1. Limited Product
One of the main weaknesses is that their product range is limited. While they offer a wide variety of chocolates and confectionaries, they do not have a very diverse portfolio when it comes to other products.
2. High Price
In addition, their prices are often considered to be quite high as compared to competitors. Another key weakness for Cadbury is that in recent years, their brand reputation and loyalty were damaged due to salmonella poisoning in some of their products.
3. Poor customer service
Their customer service has been criticized for being slow in responding to customer queries and complaints, leading to a decrease in customer loyalty and satisfaction.
4. Late Delivering
The company has been accused of not delivering products on time or not providing proper instructions on product usage.
5. Struggling To Compete against Competitors
The brand has been struggling to compete against larger competitors such as Mars, Nestle and Hershey’s. As a result, it has seen its market share diminish in recent years. This imbalance of competition has caused Cadbury to reduce product offerings and increase prices in order to remain competitive and profitable.
6. Lack of innovation
It has long been known for its iconic chocolate bars and other products, but the company has been criticized for failing to invest in research and development. This means that they often misses out on new trends and opportunities in the marketplace, leaving them lagging behind competitors in terms of product innovation.
Opportunities for Cadbury
Cadbury is well positioned to capitalize on a range of opportunities in the chocolate industry.
1. Expansion into the Indian Market
Cadbury has a long history of success in the confectionary market, and now it has the opportunity to expand its presence in India. With a population of over 1.3 billion, India offers an enormous potential customer base for Cadbury products. By developing a strong marketing strategy and understanding the local culture, they can tap into this growing market and develop new opportunities for growth.
2. Effective Use Of Social Media For Marketing And Promotion
Social media is an invaluable tool for businesses of all sizes, allowing them to reach and engage with customers, build relationships and drive sales. It can be used to promote products or services in a cost-effective way, giving businesses the opportunity to connect with their target audience on a global scale. Effective use of social media for marketing and promotion requires careful planning and execution. Companies should ensure that their content is engaging, relevant and targeted to their desired customer segment.
3. Expand into new markets
it has the potential to expand its reach by exploring new markets and channels for their products. For example, the company can look into opportunities in the health food market or consider entering the e-commerce space, as these are growing trends in today’s global marketplace.
4. Diversifying product portfolio
Cadbury has the opportunity to expand its product offering to include health-conscious products, as well as vegan and plant-based options. By diversifying its product portfolio, it can stay ahead of changing consumer trends and capitalize on growing demand for healthier snacks.
5. Expand globally
Cadbury has already established itself in many countries, but there are still many opportunities for growth and expansion into new markets. By expanding their portfolio to include products from other countries, they can gain a competitive advantage and increase its market share worldwide.
Threats to Cadbury
Cadbury is a beloved brand that is known around the world for its delicious chocolate treats. However, the Cadbury swot analysis shows some threats to the brand that could cause major issues for the company if not addressed properly.
The main threats include rising costs, counterfeit chocolates, and competition from other companies.
1. Clone Product
Counterfeit chocolates can harm Cadbury’s reputation and also result in lost sales due to customers not knowing they are buying fake products.
2. Increasing Competition From Local Players
Increasing competition from local players is a major challenge that Cadbury Inc. faces in the confectionery industry. Local players are becoming more aggressive with their marketing strategies and have begun to gain a larger share of the market. This has put pressure on Cadbury’s profits, as they have had to compete with lower prices and better products offered by local players.
3. Climate Change
Climate change is a major threat to the production of it chocolate as it affects cocoa farmers, who are the main suppliers of cocoa beans for Cadbury. With rising temperatures and unpredictable weather conditions, it may become more difficult for farmers to produce enough cocoa beans to meet Cadbury’s demand.
4. Unhealthy Ingredients
Cadbury’s chocolate is often seen as a healthier alternative to many other brands, but it still contains unhealthy ingredients such as sugar, fats, and artificial additives. This can be a threat to the brand’s reputation if customers become aware of the fact that their products are not as healthy as they claimed.
Politicians have noticed that people are becoming more careful about their health and what they eat. They are taking advantage of the situation by making new rules and laws for candy companies about low calories, low sugar, and price.
The conclusion of the SWOT analysis for Cadbury is that it has a strong brand image and a good manufacturing process that can adapt to changing consumer tastes. Furthermore, its products are highly-priced due to their quality, and its Dairy Milk chocolate bar is the most popular in the world.
It strengths are combined with effective marketing strategies, making it an attractive choice for customers around the world. However, in order to remain competitive, it must also address its weaknesses such as increasing financial costs and limited research capabilities.
With proper strategic planning and execution of plans, Cadbury can further capitalize on its strengths while minimizing weaknesses and maximizing opportunities in order to continue being one of the leading confectionery brands worldwide.