SWOT analysis

Strengths of the brand: As Cadbury dairy milk is a established brand which enjoys
good customer perception therefore it is the strength of the brand and the dairy
milk silk will get benefit of it. The resources that the group have is also one of its
strength and the no of products that it make will help in achieving economies of
scale is also one of the strength of the brand.

• Cadbury Dairy Milk is the largest global confectionery supplier, with 9.9% of
global market share.

• High financial strength (Sales turnover 1997, £7971.4 million and 9.4%)

• Strong manufacturing competence, established brand name and leader in

innovation.

• Advantage that it is totally focused on chocolate as unique understanding of

consumer in this segment.

• Successfully grown through its acquisition strategy. Recent acquisitions,

including Adams, 2003, enabled it to expand into important markets like the
US market.

• It has captured 30% of Indian Chocolate Market.

Weakness:

• The biggest weakness is the size of the group which make it difficult to innovate
as the Kraft foods Inc has recently acquired the Cadbury so the group will focus
to get the return and little or no focus will be given to the innovation.
• 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.
• Large group size also make increase the time to make crucial decisions. Timing
to implement the decision will also increase because of the group size which is
also a weakness.
• Large portion of population suffers from diabetes, cholesterol disorders etc.
• Dental problems associated with consumption of chocolates.

OPPORTUNITIES:

• Innovative uncaptured chocolate market in India such as sugar free chocolate

sector.
• New markets. Significant opportunities exist to expand into the emerging market
like India, where population is growing, consumer wealth is increasing and
demand for confectionery products is increasing.

• The confectionery market is characterized by a high degree of merger and

acquisition activity in recent years. Opportunities exist to increase share through
targeted acquisitions.

• Key to survival within the FMCG market is increasing efficiency and reducing
costs.

• Large number of occasion celebrations and festivals in which chocos are used as
a medium to convey happiness.

• Increasing acceptance of Globalisation and better relationship with foreign

companies.

THREATS

• Worldwide - there is an increasingly demanding cost environment,

particularly for energy, transport, packaging and sugar. Global supply chain
in low cost locations.

• Competitive pressures from other branded suppliers (national and global).

Aggressive price and promotion activity by competitors - possible price wars
in developed markets.

• Social changes - Rising obesity and consumers obsession with calories

counting. Nutrition and healthier lifestyles affecting demand for core Cadbury
products.

• Cut throat competition from nestle amul and international choc brands.

• Negative publicity and controversies.

• New entrance and individual players (rise in sale of homemade chocolates)

• Preference and availability of other substitutes ( sweets and deserts).

PRODUCT LINE

The market major of Chocolates offers the following products in the

market:-

✔ Chocolates like Cadbury dairy milk, perk, celebrations, temptations, five

star, éclairs, gems, fruit & nut, Cadbury crackle and many more…..

✔ Snacks like Cadbury bytes

✔ Beverages like Bournvita, Cadbury delight

✔ Candy like Cadbury halls

✔ Gums like Bubbaloo

ADVERTISING CHANNELS

Media Vehicle Television, the print media and posters have been the main media of
communication for Cadbury’s advertisements. However, with their understanding of
the peculiarities of the Indian market, CIL has also explored many new ways of
getting their message across to the consumers.

• Media Coverage

– all Media reports carried Cadbury’s point of view

– 378 clips in over 11 languages covering the new packaging and its
benefits.

• Sheet Metal Dispensers: This purple salesperson for Cadbury’s is found in

almost every shop stocking their chocolates. This ‘first’ from CIL has become
so popular that is now the standard design for all chocolate manufacturers.

• Visicoolers: Visibility for chocolates drops in the summer, as they disappear

into the refrigerator. The visicooler serves the need for cooling while still
maintaining the visibility of the product.

• Jars: These are provided to small outlets, where they are prominently
displayed.

• Vending machines: These high visibility machines are provided at busy

locations.
 • Presence in Amusement Parks: Cadbury’s also maintains a presence in many
amusement parks across the country, strengthening the association of its
chocolates with ‘fun’ occasions.

ADVERTISING CAMPAIGNS

Early 90’s : The “Real Taste of Life” with the girl dancing on the cricket field.

The message given by this campaig was “Cadbury Dairy Milk is for Enjoyment…”
This campaign went on to be awarded 'The Campaign of the Century', in India at the
Abby (Ad Club, Mumbai) awards

During Late 90’s :

Campaign : “Khanewalon Ko Khane Ka Bahana Chahiye”…

Target: Widening chocolate consumption among the masses. This campaign built
social acceptance for chocolate consumption amongst adults, by showcasing
collective and shared moments.

AFTER CRISIS:

Campaign : “Don’t Worry Be Happy” in 2004.

Target : Bringing Amitabh Bachhan as brand ambassador helped to gain trust of

the people with the new ‘Purity Sealed’ pack of Cadbury Dairy Milk after crisis
situation.

RECENT:

Campaign : “Kuch Meetha Ho Jaye” in the end of 2004.

Target: To associate Cadbury Dairy Milk with celebratory occasions.

MORE RECENT :

Campaign : “Shubharambh – Kuch Meetha Ho Jaye” in 2010.

Target: To start with any new thing.

LATEST :

Campaign : “Kuch MeethaS Ho Jaye” in October 2010.

Target: To celebrate festivals (Diwali / Christmas ) and to spread love & happiness
among people.
 • Media Strategy: Message Execution Cadbury’s multi-award winning campaign
- ‘The Real Taste of Life’ - launched in the 90’s attempts to capture the child
like spontaneity in every adult. From the old man offering his wife a Dairy
Milk chocolate to the dancing girl in a crowded stadium, all reflect the
impulsiveness and the spontaneity of the child in the adult.

• Cadbury’s Perk, the light snack, addresses the hungry child in every adult, as
exemplified by the bride who nibbles at a Perk under her ‘pallu’. Cadbury’s
Dairy Treat conveys its message through the mother who refuses chocolates
and other treats to her son, till Dairy Treat comes along and quickly changes
her opinion about chocolates.

• Catchy lines such as ‘The Real Taste of Life’, ‘Khane Walo Ko Khane Ka
Bahana Chahiye’, or ‘Reach for the Stars’, are also used extensively, and to
good effect in Cadbury’s advertisements.

Market share

• Cadbury has market share of 70% out of which Cadbury Dairy Milk has 30%
of the market share.

• The rival is Nestle with market share of 22%.

• Moulded segment Cadbury 70%

• Count segment Cadbury 76%
• Éclairs Cadbury 49%