17-11-2012, 05:27 PM
SWOT ANALYSIS BY CAD BURY
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Company Overview
Cadbury is a leading global confectionery company with an outstanding portfolio of
chocolate, gum and candy brands. They create brands people love - brands like Cadbury,
Trident and Halls. Their heritage starts back in 1824 when John Cadbury opened a shop in
Birmingham selling cocoa and chocolate. Since then they have expanded their business
throughout the world by a programme of organic and acquisition led growth. On 7 May 2008, the
separation of their confectionery and Americas Beverages businesses was completed creating
Cadbury plc with a vision to be the world's BIGGEST and BEST confectionery company.
Their Business
With over 45,000 employees working across their business in over 60 countries, Cadbury
is a large and complex organization.
From 2003 to 2008 the confectionery business was led through a strong regional model to
ensure their top-down strategy was consistently implemented around the world. In 2006,
they introduced a strong category-led commercial organization which has progressively
been developing its role and impact since.
At the beginning of 2009, they eliminated the regional structure to operate as seven
business units and leverage the strengthened category leadership across their markets. In
this section, you can find a description of their business units and functions.
Their Marketplace
Cadbury operates in the global confectionery market. The market is large, growing and has
attractive dynamics. The global confectionery market is the world’s four largest packaged food
markets. It represents 9% of that market, and has a value at retail of US$141 billion. Chocolate
is the largest category, accounting for over half of the global confectionery market by
value. Gum is the fastest growing confectionery category.
Globally, confectionery is growing at around 5% p.a., faster than many other packaged food
markets. Developed markets, which account for around 67% of the global market, grew 3% p.a.
between 2001 and 2006.
Focus Brands
They are investing in their most advantaged brands. Together, they generate
approximately half their total revenue and have significantly higher profitability than their
confectionery portfolio as a whole. They are Cadbury Dairy Milk, Trident, Halls, Green &
Black’s, The Natural Confectionery Co., Creme Egg, Eclairs, Flake, Dentyne, Clorets,
Hollywood, Stimorol and Bubbaloo.
By being globally strong across all three confectionery categories, they are building
competitive advantage – creating the right range, to be available everywhere, and for everyone.
They have a natural growth path based on making the most of their total confectionery business
and specific strategies for each category. In many markets they are already leaders in one or two
categories and can expand into a second or third by making the most of their global capabilities.
So in the UK their strength in chocolate and candy has enabled us to launch successfully into
gum. Similarly in India, they’ve expanded into the bubblegum business. And in the USA, they’ve
added chocolate to their gum and candy business.
Putting It All Together: They Stride brand with its ‘ridiculously long lasting flavour is an
example of innovation right across the spectrum: great insight creating a new brand in a new
format, using new recipe technology, and new packing, all communicated in a new way. Our
innovative communication campaigns include an annual Summer Solstice party and sponsorship
of the online sensation Dancing Matt.
Weaknesses:
The company is dependent on the confectionery and beverage market, whereas other
competitors e.g. Nestle have a more diverse product portfolio, where profits can be used
to invest in other areas of the business and R&D.
Other competitors have greater international experience - Cadbury has traditionally been
strong in Europe. New to the US, possible lack of understanding of the new emerging
markets compared to competitors.
On Every Hand Everywhere:
Busy shoppers want brands to be close to hand. Their retail customers demand
flawless service. And it is our business to deliver.
They have been selling gum in Brazil for over 60 years, since the launch of
Chiclets in 1944. With the addition of Halls, Trident and Bubbaloo, today Cadbury is the No. 1
player in what is one of the world’s largest confectionery markets. Their sales force has played a
critical role in our success. Our 1,200-strong sales force visits a staggering 200,000 customers in
more than 2,500 cities. Making an average of 360,000 individual calls every year, in vans,
motorised tricycles, bicycles and even on foot, our sales team not only deliver, collect and
merchandise our products and brands but also advise customers on merchandising and selling
techniques.
Functional advantage:
Cadbury Bournvita was launched here in 1948 and throughout its history has always
sought to provide nutrition that aids growth and all-round development today, the natural
goodness of malt, chocolate and milk is fortified with vitamins A, B1, B3, B6, B12 and C, plus
iron, protein, calcium, zinc, manganese and folic acid. No wonder it’s ‘a cup of confidence’.
Affordable indulgence:
They have increased their presence in the candy category through Halls and Cadbury
Dairy Milk clairs. As in other emerging markets with hot climates, Eclairs are proving popular
as an indulgent affordable treat. With delicious Cadbury chocolate in the middle, they melt in the
mouth, not in the heat. A new Eclairs Crunch format, with a crispy caramel shell, is just as
affordable and even more at home in hot weather.
Importing success
True to their total confectionery plan, they are also entering new categories, applying their knowhow
from their success in other markets. They have already gained over 9% of the Indian
bubblegum market with the launch of Bubbaloo – a Latin American import that’s off to a great
start.